Jurisdictional Statement — Republican National Committee v. Federal Election Commission

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Supreme Cowt, U8.

FILED

021727 MAY 27 2003

OFFICE OF TWE CLERK

No. 02-

=—_—_——— EEE

IN THE

SUPREME COURT OF THE UNITED STATES

OCTOBER TERM, 2002

REPUBLICAN NATIONAL COMMITTEE, ET AL.,

Appellants,

Vv.

FEDERAL ELECTION COMMISSION, ET AL.,

Appellees.

ON APPEAL FROM THE UNITED STATES DISTRICT

COURT FOR THE DISTRicT OF COLUMBIA

JURISDICTIONAL STATEMENT

THOMAS J. JOSEFIAK BoBByY R. BURCHFIELD

CHARLES R. SPIES Counsel of Record

REPUBLICAN NATIONAL THOMAS O. BARNETT

COMMITTEE ROBERT K. KELNER

310 First Street, S.E. COVINGTON & BURLING

Washington, D.C. 20003 1201 Pennsylvania Ave., N.W.

(202) 863-8500 Washington, D.C. 20004

(202) 662-6000

MICHAEL A. CARVIN

JONES DAY REAVIS & BENJAMIN L. GINSBERG

POGUE PATTON BoacGs LLP

51 Louisiana Ave., N.W. 2550 M Street, N.W.

Washington, D.C. 20001 Washington, D.C. 20037

(202) 879-3939 (202) 457-6000

Counsel for RNC Appellants

QUESTIONS PRESENTED

1. Do the restrictions imposed upon national, state,

and local political parties by Title I of the Bipartisan

Campaign Reform Act of 2002 (“BCRA”) violate Article I,

Section 4 of the U.S. Constitution, the First, Fifth, and Tenth

Amendments, and principles of federalism?

2. Does BCRA’s requirement that the Federal

Election Commission promulgate a definition of

“coordination” that does not require proof of an “agreement”

violate the First Amendment?

3. Do BCRA’s “Millionaires Provisions,” which

requires political parties to provide different treatment to

similarly situated candidates, violate the equal protection

components of the First and Fifth Amendments?

tad

Sees

PARTIES TO THE PROCEEDING

Appellants represented in this Jurisdictional

Statement are the Republican National Committee (“RNC”);

Robert Michael Duncan, former Treasurer, current General

Counsel, and Member of the RNC; the Republican Party of

Colorado; the Republican Party of New Mexico; the

Republican Party of Ohio; and the Dallas County (Iowa)

Republican County Central Committee (collectively, the

“RNC Appellants”). All of the RNC Appellants were

plaintiffs below, in Republican National Committee v. FEC,

No. 02-874, which was consolidated by the district court

around McConnell v. FEC, No. 02-582, along with nine other

related actions.

The following were also plaintiffs in the consolidated

actions below, including several who withdrew before the

three-judge court issued its opinion:

McConnell v. FEC, No. 02-582: United States

Senator Mitch McConnell, United States Representative

Mike Pence and former Representative Bob Barr, Aiabama

Attorney General Bill Pryor, Libertarian National

Committee, Inc., Alabama Republican Executive Committee

(withdrawn), Libertarian Party of Illinois, Inc. (withdrawn),

DuPage Political Action Council (withdrawn), Jefferson

County Republican Executive Committee (withdrawn),

American Civil Liberties Union, Associated Builders and

Contractors, Inc., Associated Builders and Contractors

Political Action Committee, Center for Individual Freedom,

Christian Coalition of America, Inc. (withdrawn), Club for

Growth, Indiana Family Institute, National Right to Life

Committee, Inc., National Right to Life Educational Trust

Fund, National Right to Life Political Action Committee,

National Right to Work Committee, 60-Plus Association,

Inc., Southeastern Legal Foundation, Inc., U.S. English d/b/a/

e+.

ProENGLISH, Martin Connors (withdrawn), Thomas

Mclnermey, Barrett Austin O’Brock, Trevor Southerland.

National Rifle Ass'n v. FEC, No. 02-581: National

Rife Association of America (“NRA”), NRA Political

Victory Fund.

Echols v. FEC, No. 02-633: Emily Echols, Hannah

McDow, Jessica Mitchell, Daniel Solid, Zachary White,

Reverend Patnck Mahoney.

Chamber of Commerce v. FEC, No. 02-751: Chamber

of Commerce of the United States, U.S. Chamber Political

Action Committee, National Association of Manufacturers,

National Association of Wholesaler-Distnbutors

(withdrawn).

National Ass'n of Broadcasters v. FEC, No. 02-753:

National Association of Broadcasters.

AFL-CIO v. FEC, No. 02-754: AFL-CIO, AFL-CIO

Committee on Political Education and Political

Contributions.

Paul v. FEC, No. 02-781: United States Congressman

Ron Paul, Gun Owners of America, Inc., Gun Owners of

America Political Victory Fund, Realcampaignreform.org,

Citizens United, Citizens United Political Victory Fund,

Michael Cloud, Clara Howell.

California Democratic Party v. FEC, No. 02-875;

California Democratic Party, Art Torres, Yolo County

Democratic Central Committee, California Republican Party,

Shawn Steel, Timothy Morgan, Barbara Alby, Santa Cruz

County Republican Central Committee, Douglas Boyd, Jr.

Adams v. FEC, No. 02-877: Victoria Jackson Gray

Adams, Carrie Bolton, Cynthia Brown, Derek Cressman,

Victoria Fitzgerald, Anurada Joshi, Peter Kostmayer, Nancy

Russell, Kate Seely-Kirk, Rose Taylor, Stephanie Wilson,

California Public Interest Research Group (“PIRG”),

Massachusetts PIRG, New Jersey PIRG, United States PIRG,

The Fannie Lou Hamer Project, Association of Community

Organizers for Reform Now.

Thompson v. FEC, No. 02-881: United States

Representatives Bennie Thompson and Ear! Hilliard.

Appellee Federal Election Commission (“FEC”),

which filed a Notice of Appeal on May 2, 2003, was a

defendant below in the Complaint filed by the RNC

Appellants. Appellees United States Department of Justice

(“DOJ”), United States Senators John McCain, Russell

Feingold, Olympia Snowe, and James Jeffords, and United

States Representatives Martin Meehan and

Shays were defendant-intervenors below. They filed Notices

of Appeal on May 5, 2003. Additional defendants named by

other plaintiffs in the consolidated actions below were: the

Federal Communications Commission, Attorney General of

the United States John Ashcroft, and the United States of

America, who filed a Notice of Appeal on May 5, 2003; and

FEC Commissioners David Mason, Karl Sandstrom (since

replaced by Ellen Weintraub), Danny McDonald, Bradley

Smith, Scott Thomas, and Darryl Wold (since replaced by

Michael Toner), who filed a Notice of Appeal on May 12,

2003.

TABLE OF CONTENTS

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PARTIES TO THE PROCEEDING .2......0:ccccccsocsececssssesessseees ii

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JURISDICTIONAL STATEMENT ..............:-csscescesceserensenees |

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CONSTITUTIONAL AND STATUTORY

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THE QUESTIONS PRESENTED ARE

ES 9

1. Title I Is Unconstitutional in Its Entirety...................... 10

A. The Constitution Does Not Empower Congress To

Regulate State and Local Elections. ........................ 10

ERE SO 11

Free Speech and Association. ................cccccsceseeeeeees 12

Violates the First Amendment. ...0...................ccccceeeeeeees 15

Il. BCRA’s “Millionaire’s Provisions” Deny Political

Parties Equal Protection of the Laws. ..................00-++ 16

vii

TABLE OF AUTHORITIES

Aptheker v. Secretary of State, 378 U.S. 500 (1964)............. 14

Buckley v. Valeo, 424 U.S. 1 (1976)..............cccccccce eee passim

Clark v. Jeter, 486 U.S. 456 (1988)... 0... ccc ccceccncnc enn neee 11

Colorado Republican Federal Campaign Committee

v. FEC, 318 U.S. 604 (1996)... ccc eee 6, 15

FEC v. Colorado Republican Fed. Campaign Comm.

ER ee 15

FEC v. Nanonal Conservative Political Action

Committee, 470 U.S. 480 (1985).................cccccee 13

Oregon v. Mitchell, 400 U.S. 112 (1970)...................00000 11

Police Dep 't of City of Chicago v. Mosley,

Eee 11

Schaumburg v. Cinzens for a Better Environment,

ccnesencccsseresvcssesessnssssccewsent 12

Tashjian v. Republican Party of Connecticut,

EO 11

Consntuton. Statutes, Regulations:

US. Const:

NE | i, 1,10

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Bipartisan Campaign Reform Act of 2002, Pub. L. No. 107-155,

116 Stat 81

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Federal Election Campaign Act of 1971, 2 U.S.C. § 431 et seg.

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Se passim

: Section 323(b\2MB)iV)........c.cccccceccceeeeceeeeeeeeees 4

ARTE EI 6

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SIT cccncecsenesensgnsenesssoipeisemaneee 7,8

lO REE ATES I, 7,8

aR TROT Te 1

EERE AEA ERE LONER CREE 1

Miscellaneous:

148 Cong. Rec. H408-09 (daily ed. Feb. 13, 2002)............... 14

67 Fed. Reg. 49064 (July 29, 2002)...........cccccccccceeseceeeveen 3

JURISDICTIONAL STATEMENT

OPINIONS BELOW

The opinions of the district court are reported at 2003

WL 2010983, 21003118, 21003103, and 21003124 (D.D.C.

May 1, 2003). Pursuant to the Court’s Order of May 15,

2003, RNC Appellants anticipate filing a jointly prepared

appendix containing the opinions of the district court.

JURISDICTION

The decision of the district court was issued on May

2, 2003, by a three-judge court convened pursuant to 28

U.S.C. § 2284 and Section 403(a1) of the Bipartisan

Campaign Reform Act of 2002, Pub. Law No. 107-155, 116

Stat. 81 (““BCRA”). The RNC Appellants filed their Notice

of Appeal from the decision of the three-judge court on May

7, 2003. App. la. This Court has jurisdiction under 28

U.S.C. § 1253 and Section 403(a)(3) of BCRA.

CONSTITUTIONAL AND STATUTORY PROVISIONS

INVOLVED

Article 1, Section 4 of the United States Constitution

provides in pertinent part:

The Times, Places and Manner of holding

Elections for Senators and Representatives,

shall be prescribed in each State by the

Legislature thereof; but the Congress may a’

any time by Law make or alter such

Regulations, except as to the Places of

choosing Senators. . . .

The First Amendment to the United States

Constitution provides in pertinent part:

Congress shal] make no law . . . abridging the

freedom of speech, or of the press; or the right

of the people peaceably to assemble, and to

petition the Government for a redress of

grievances.

The Fifth Amendment to the United States

Constitution provides in pertinent part:

No person shall . . . be deprived of life,

liberty, or property, without due process of

The Tenth Amendment to the United States

Constitution provides:

The powers not delegat.d to the United States

by the Constitution, nor prohibited by it to the

States, are reserved to the States respectively,

or to the people.

The full text of BCRA is reprinted at App. 3a-77a.

STATEMENT OF THE CASE

BCRA was signed into law on March 27, 2002, and

became effective on November 6, 2002. Although BCRA’s

provisions are divided among five titles, the RNC Appellants

chiefly challenge Title I, which targets political parties.

The Statute at Issue

For the first time in American history, Congress has,

through Title I of BCRA, attempted to regulate the activities

of political parties that affect only state and local elections.

New Federal Election Campaign Act (“FECA”) Section

323(a), created by Section 101(a) of BCRA, broadly and with

no exceptions prohibits the RNC and other national political

party committees from soliciting, receiving, directing,

transferring, or spending “any funds” that do not fully

comply with FECA. This is the so-called “soft money ban”

touted by proponents as the centerpiece of the statute.’ To

take but one example, Section 323(a) makes it a felony for

the Chairman of the RNC to send a fundraising letter on

behalf of a gubernatorial candidate.

Whereas Section 323(a) is an all-encompassing

prohibition with no exceptions, new Section 323(b) is a

convoluted -- and unsuccessful -- attempt to avoid

trespassing on state sovereignty while imposing extensive

federal regulation on state and local political parties. It

prohibits state and local parties from using state-regulated

funds for so-called “federal election activities,” but then

broadly defines “federal election activities” to sweep in

' The slang term “soft money” generally refers to funds that are regulated

by state law; by contrast, “hard money” generally refers to funds

regulated by the Federal Election Campaign Act of 1971, 2 U.S.C. §§431

et seg. (“FECA”). As the FEC itself has recognized, the term “soft

money” is pejorative and misleading. The RNC Appellants therefore

refer instead to “non-federal” (soft) and “federal” (hard) money. See

Explananon & Justificanon, Prohibited and Excessive Contributions:

Non-Federal Funds or Soft Money, Final Rule, 67 Fed. Reg. 49064,

49065 (July 29, 2002) (“Because the term ‘soft money’ is used by

different people to refer to a wide variety of funds under different

circumstances, the Commission is using the term ‘non-Federal funds’ in

the final rules rather than the term ‘soft money." ... Moreover, non-

Federal funds are regulated by State law.”). All members of the three-

yudge district court expressly adopted this same convention. See Per

Curiam Op. (Kollar-Kotelly, J.; Leon, J.) at 32 n. 9; Op. of Henderson, J.

at 30 n. 30. The Government's jurisdictional statement, filed on May 12,

2003, mistakenly asserts that “soft money” is “money raised outside the

framework of [FECA’s] disclosure requirements.” FEC Jurisdictional

Statement, at 5. To the contrary, beginning in 1991, the FEC required

that national party commuttees fully disclose donations of nonfederal

funds, and the RNC Appellants have not challenged those disclosure

provisions.

;

activities wholly or largely in connection with state and local

elections. As an exception to this broad rule, and in an

explicit effort to avoid federalism concerns, Section 323(b)

allows state and local parties to fund certain “federal election

activities” in part with so-called “Levin money” (pursuant to

an amendment by Senator Levin), but this Levin money is, in

turn, subject to extensive federal regulation.

Even with all its purported attempts to accommodate

state sovereignty, Section 323(b) subjects many purely local

political activities to full federal regulation. As but one

example, it would prohibit two local political party

committees from pooling their funds to pay for a get-out-the-

vote drive for a candidate for county school board, if the

election takes place in an even-numbered year when federal

candidates are on the ballot, unless the local parties pay for it

with 100% federally regulated money. See Section

323(b)(2)(B)(iv) (the “home grown” requirement).

Other BCRA provisions affecting political parties

also abridge fundamental constitutional rights. New Section

213 requires all components of a political party, acting

collectively, to choose between making independent

expenditures authorized by the First Amendment and

coordinated expenditures authorized by FECA. New Section

214 instructs the FEC to repeal its existing regulations

distinguishing “independent” activity from “coordinated”

activity in a manner that will suppress protected speech and

associations. New Sections 304 and 319, the so-called

“Millionaire’s Provisions,” effectively punish any Senate or

House candidate who uses more than specified amounts of

personal assets to fund his or her campaign.

The Court Challenge

Recognizing that BCRA raises serious constitutional

issues, Congress required that any constitutional challenge to

its provisions be heard by a three-judge court, with a direct

appeal to this Court. See BCRA §§ 403(a)(1), (3). Congress,

the three-judge court below, and all of the parties anticipate

final review of BCRA by this Court.

Congress therefore specified that “[ijt shall be the

duty of the United States District Court for the District of

Columbia and the Supreme Court of the United States to

advance on the docket and to expedite to the greatest

possible extent the disposition of the action and appeal.”

BCRA § 403(a)(4) (emphasis added).

The RNC Appellants filed their complaint on May 7,

2002. As the only major national political party committee

to challenge the statute, the RNC is the litigant most directly

and significantly injured by Section 323(a).’ The

uncontradicted record establishes, and two judges expressly

found as fact, that in the 1999 and 2001 off-year elections,

when no federal candidates were on the ballot, the RNC

spent $21 million of nonfederal money (not counting staff

salanes and overhead) on purely state and local elections

with no conceivable effect on federal elections. See Op. of

Henderson, J., at 151, Findings § 71(c)(2)(B); Op. of Leon, J.

at 152, Findings § 59. Despite the absence of any

conceivable effect on a federal election, Section 323(a)

criminalizes this activity.

The Republican State Parties of Colorado, New

Mexico, and Ohio, which have widely divergent state

campaign statutes, joined the RNC to challenge Section

323(b). The uncontradicted evidence establishes, and two

judges found as fact, that state parties focus a majority of

> None of the ten other lawsuits includes a major national political party

commuttee as a plaintiff, and only the California Democratic Party suit

includes state or local political parties. The interests of the RNC

Appellants therefore are not directly represented by any of the other

consolidated lawsuits.

their resources on state and local elections, see Op. of

Henderson, J. at 164-68, Finding 4 73; Op. of Leon, J. at 169,

Finding 4 113, and that they rely heavily upon transfers of

nonfederal funds from national party committees to support

these state party operations. See Op. of Henderson, J. at 156-

58, Finding { 71(e); Op. of Leon, J. at 160-61, Finding { 88.

The RNC Appellants also challenged several other

provisions. Section 213 requires all elements of a political

party -- local, state, and national -- to choose between making

independent and coordinated expenditures. This provision

illegitimately attempts to overrule Colorado Republican

Federal Campaign Committee v. FEC, 318 U.S. 604 (1996),

which recognized the First Amendment-protected nghts of

political parties to make independent expenditures. Section

214 attempts, in disregard of First Amendment jurisprudence,

to expand the concept of “coordination” to encompass

conduct that is truly independent of a candidate. Sections

304 and 319, the so-called “Millionaire’s Provisions,”

attempt to punish candidates who exercise their First

Amendment-protected rights to spend their own resources;

these provisions do so by raising opponents’ contribution

limits and eliminating the limits on political party

coordinated expenditures in support of their opponents.

The District Court Decision

The district court issued its decision on May 2, 2003.

Each member of the three-judge court authored a separate

opinion and findings of fact. Judges Kollar-Kotelly and

Leon also joined a per curiam opinion with accompanying

findings of fact largely devoted to addressing BCRA’s

disclosure provisions, which the RNC Appellants do not

challenge.

With regard to Title I, Judges Henderson and Leon

agreed that Sections 323(a), (b), and (c) could not stand as

written. Because BCRA’s extensive restrictions on political

party speech and association cannot properly be deemed a

mere “contribution limit,” Judge Henderson applied strict

scrutiny. She found as fact, inter alia, that the RNC engages

in very substantial activities that have no effect on federal

elections, such as participation in state and local “off-year”

elections when there are no federal candidates on the ballot.

Op. of Henderson, J. at 150-52, Findings § 71(c), 71(c)(2).

She further found, inter alia, that state parties engage in

considerable voter registration, get-out-the-vote, and other

activities exclusively or primarily to affect state and local

elections. Op. Henderson, J. at 172-75, Findings ¥ 76.

Concluding that neither Section 323(a) nor 323(b) is

narrowly tailored to serve a compelling interest of the federal

government, Judge Henderson would have struck both down.

Likewise, she would have struck down on First Amendment

grounds Section 323(d), prohibiting political parties from

donating funds to certain tax-exempt organizations, and

Section 323(f), restricting state candidates’ use of non-federal

funds for “public communications” that refer to a federal

candidate. She joined Judge Kollar-Kotelly, however, in

concluding that Section 323(e), which imposes restrictions

on federal candidates, is constitutional.

Judge Leon analyzed Title I under “intermediate

scrutiny,” but -- based on findings of fact similar or identical

to Judge Henderson’s -- concluded that Sections 323(a) and

323(b) were not “closely drawn” to achieve an important

federal government objective. See Op. of Leon, J. at 26-37,

45-50. Nevertheless, in an effort to salvage part of the

statute, Judge Leon limited the application of Section 323(a)

by borrowing Section 323(b)’s definition of “federal election

activity” and grafting it onto Section 323(a). Op. of Leon, J.

at 37-43. Then, he ruled that the definition of “federal

election activity’ in new Section 301(20) was itself

overbroad, but judicially limited that definition, for purposes

of both Sections 323(a) and 323(b), to a “public

communication that refers to a clearly identified candidate

for federal office and that promotes or supports . . . or attacks

or opposes” a federal candidate, Section 301(20)(A){iii). Op.

of Leon, J. at 37-43, 45-50. Because it invalidated less of

these sections than Judge Henderson’s disposition, Judge

Leon’s disposition of Sections 323(a) and 323(b) prevailed.

Thus, Sections 323(a) and (b) survive only to the extent of

prohibiting political parties from publishing any “public

communications” supporting or opposing a federal candidate.

Like Judge Henderson, Judge Leon voted to strike down

Section 323(d)’s restrictions on political party donations to

tax-exempt organizations. Op. of Leon, J. at 68-71. Judge

Leon joined Judge Kollar-Kotelly in upholding the

restrictions on state candidates in Section 323(f). He

dissented from the panel’s ruling to uphold the restrictions on

federal candidates in Section 323(e).

Judge Kollar-Kotelly would have upheld Title I in its

entirety, joining Judge Henderson with regard to Section

323(e)’s restrictions on federal candidates and Judge Leon

with regard to Section 323(f)’s restrictions on state

candidates. In voting to uphold Sections 323(a), (b), and (d),

she deemed all of Title I a “contribution limit” that was

subject to intermediate scrutiny. Finding that all political

party activity covered by those provisions -- even such

national party expenditures as legal expenses incurred for

state legislative redistricting’ — affected federal elections, she

> Judge Kollar-Kotelly reasoned that state /egislative redistricting may

eventually affect state congressional redistricting, which in tum may

eventually affect a federal election. See Op. of Kollar-Kotelly, J. at 67,

Findings {J 1.34, 1.34.3. Thus, she concluded, disbursements on state

legislative redistricting could properly be regulated by the federal

government. Judge Kollar-Kotelly also acknowledged the expenditure of

$21 million of non-federal funds by the RNC during the 1999 and 2001

off-year state and local elections in which no federal candidates appeared

(continued. ..)

concluded that the restrictions were “closely drawn”’ to serve

the important federal interest in preventing the appearance of

officeholder corruption.

Finally, the three-judge court unanimously struck

down on First Amendment grounds Section 213, in which

Congress sought to compel political parties to choose

between making independent or coordinated expenditures to

support their candidates. The court likewise held challenges

to Section 214 (requiring the FEC to adopt an overbroad

definition of “coordination”) and Sections 304 and 319 (the

“Millionaire’s Provisions”) to be nonjusticiable. Judge

Henderson would have struck down Section 214 on First

Amendment grounds.

THE QUESTIONS PRESENTED ARE SUBSTANTIAL

As the district court recognized in striking down

much of Title 1, BCRA as enacted would severely restrict the

traditional associational activities of political parties and

suppress core party speech, in violation of the First

Amendment. The record so firmly establishes BCRA’s

harmful effect on the parties that the district court reached

on the ballot (Op. of Kollar-Kotelly, J. at 74, Finding § 1.39.1.2), the

solicitation during off-year elections by RNC employees of non-federal

funds for state candidates and parties, Op. of Kollar-Kotelly, J. at 106,

Findings ¢ 159, and national party cooperation with state and local parties

in full ticket voter registration and mobilization efforts, Op. of Kollar-

Kotelly, J. at 77, Findings %¥ 143.2, 143.2.1. Nevertheless, Judge Kollar-

Kotelly deemed national party involvement in state and local elections to

be msignificant, and concluded that such activities by national political

parties are subject to full federal regulation. Op. of Kollar-Kotelly, J. at

72-73, Finding { 1.39.

this judgment even though two of the three judges erred by

applying intermediate rather than strict scrutiny.

The limitations on speech and association tell only

extreme views. See Op. of Henderson J., at 145-47 (Finding

§ 70), 176-78 (Finding 4 79). For all these reasons, this

Court should note probable jurisdiction to review the district

court’s decision insofar as it failed to strike down Title I in

its entirety.

L Title I Is Unconstitutional in Its Entirety.

it enacted BORA, in Buckley v. Valeo, 424 U.S. 1 (1976),

this Court weated the FECA, to which BCRA is an

Constitution to the states. See Oregon v. Mitchell, 400 U.S.

112, 135 (1970) (controlling op. of Black, J.) (“{ojur

judgments . . . save for the States the power to control state

and local elections which the Constitution originally reserved

to them and which no subsequent amendment has taken from

them.”); Tashjian v. Republican Party of Conn., 479 U.S.

208, 217 (1986) (“[T]he Constitution grants to the States a

broad power to prescribe the ‘Times, Places, and Manner of

holding Elections for Senators and Representatives,’ Art. I, §

4, cl. 1, which power is matched by state control over the

election process for state offices.”) (emphasis added).

Accordingly, the Federal Elections Clause does not support,

and affirmatively precludes, BCRA’s extraordinary assertion

of federal power over the regulation of state and local

elections.

B. Title I of BCRA Denies Political Parties

Equal Protection of the Laws.

As enacted, BCRA also denies political parties equal

protection of the laws by subjecting them to unique restraints

on speech not imposed upon special interest groups. See

Clark v. Jeter, 486 U.S. 456, 461 (1988) (“Classifications

. affecting fundamental nghts are given the most exacting

scrutiny.”); Police Dep't of the City of Chicago v. Mosley,

408 U.S. 92, 101 (1972) (“The Equal Protection Clause

requires that statutes affecting First Amendment interests be

narrowly tailored to their legitimate objectives.”). Yet, as the

record in this case makes clear, special interest groups seek

to perform most if not all of the same activities political

parties perform, and they do so using nonfederal money for

the purpose of currying favor with federal officeholders. See

Op. of Henderson, J., at 177-80 (Finding § 79(c)), 276 (citing

defense expert Paul Herrnson). Accordingly, special interest

groups enjoy preferential treatment under BCRA even

though they do not share the parties’ beneficial role as

buffers between donors and officeholders.

C. Title I of BCRA Violates Political Parties’

Rights to Free Speech and Association.

Title I restricts political parties’ freedom to engage in

pure speech and a wide range of associational activities that

are essential to their ability to function effectively. Judges

Leon and Kollar-Kotelly incorrectly characterized Title I as

imposing a mere contribution limit subject to intermediate

review under Buckley v. Valeo, 424 U.S. 1 (1976). See Op.

of Leon, J. at 14; Op. of Kollar-Kotelly at 480. Title I, by

restricting pure speech and free association, simply does not

fit into Buckley’s “contribution” versus “expenditure”

dichotomy, however.

As enacted, Title I proscribed solicitation of non-

federal funds by national party committees. Thus, it is a

felony for the Chairman of the RNC to solicit a $50

contribution to a gubernatorial, mayoral, or even school

board candidate. See Section 323(a\(1)-(2) (proscribing

officer of national party from “solicit{ing]” any nonfederal

donation).* This Court has subjected restrictions on

support for particular causes or for particular views on

economic, political, or social issues” Schaumburg v

Citizens for a Better Environment, 444 U.S. 620, 632 (1980).

Moreover, Title I regulates, inter alia, the spending of

nonfederal funds. Indeed, Judge Leon’s controlling opinion

“ Defendants argued below that the RNC Chairman could solicit federal

money for these state and local candidates. But money raised by state

ana local candidates is not “subject to the lumutatons, prohibinons, and

reporting requirements” of FECA; it is subject to “the limitations,

prohibitions, and reporting requirements” of state law, and is thus

“nonfederal money.”

rewrites Title I to regulate on/y the spending of non-federal

funds on certain “public communications” and does not limit

the ability of national, state, or local parties to receive

donations of non-federal funds. Under Buckley and its

progeny, such a limit on independent spending of funds that

were raised legally is subject to strict scrutiny and is

impermissible because it bears no relationship to any effort to

prevent corruption or the appearance of corruption.

Further, Title I has the practical effect of interfering

with core political party association. Even in years like 2003

when there are no federal candidates on the ballot, Title I

severely inhibits the ability of national parties to work with

their state and local counterparts on fiull-ballot voter

registration and mobilization plans, called “Victory Plans” by

the Republicans and “Coordinated Campaigns” by the

Democrats. See Op. of Henderson, J. at 158-60, Findings

71(f(3); Op. of Leon, J. at 27 n.32, Findings 4 93-99. It

restricts the ability of local parties in even-numbered years to

pool their state-regulated funds for purely state and local

political activities. See Section 323(b)(2)(B)iv) (the “home

grown” requirement). It restricts the ability of political

parties to associate with certain ideologically-aligned tax-

exempt groups, and with federal candidates and

officeholders. See Sections 323(d), (e).

In short, Title I is far more than a mere contribution

limit, and characterization of it as such is serious error. As

this Court observed in FEC v. National Conservative

Political Action Committee, 470 U.S. 480, 501 (1985), “[wJe

are not quibbling over fine-tuning of prophylactic limitations,

but are concerned about wholesale restriction of clearly

protected conduct.”

Judge Leon’s attempt to salvage Section 323(a) -- the

ban on national party use of nonfederal funds -- by grafting

onto it a modified version of the definition of “federal

election activity” drawn from elsewhere in the statute cannot

be sustained. The language of Section 323(a) is clear and

categorical. See BCRA § 323(a) (“A national committee of a

political party . . . may not solicit, receive, or direct to

another person a contribution, donation, or transfer of funds

SN ee eee

subject to the limitations, prohibitions, and reporting

requirements” of the FECA.) (emphasis added). Congress’s

makes clear the Congressional intent to “put the national

parties entirely out of the soft money business.” 148 Cong.

Rec. H408-09 (daily ed. Feb. 13, 2002) (Stmt. of Rep.

Shays). Congress contemplated no exceptions, and indeed

expressly rejected various less restrictive alternatives that fell

short of an absolute ban. Neither the language nor the

legislative history of Section 323(a) can reasonably be

construed to support the construction adopted for it by Judge

Leon. See Aptheker v. Secretary of State, 378 U.S. 500, 515

(1964) (“The clarity and preciseness of the provision in

question make it impossible to narrow its indiscriminately

cast and overly broad scope without substantial rewriting.”’).

Moreover, even as limited by the district court,

Sections 323(a) and 323(b) impose an _ unjustifiable

restriction on political party speech. National, state, and

local political parties are still prohibited, under threat of

criminal prosecution, from using nonfederal money for any

“public communication” -- print, broadcast, mail, telephone

bank, or billboard -- that “refers to” a federal candidate and,

in the eyes of a zealous prosecutor, “promotes,” “supports,”

“attacks,” or “opposes” that candidate. See new Section

301(22) (defining “public communication”). In other words,

a flyer that is almost entirely devoted to advocating the

election of the Party’s gubernatorial candidate, but which

refers to a Member vf Congress’s endorsement of that

candidate, must be paid for entirely with federal funds. This

restriction is even broader than the vague and overbroad

restrictions on special interest groups in Title II that were

upheld by the district court. Those restrictions on interest

groups apply only to broadcast advertisements aired so as to

reach the relevant electorate.

Il. BCRA Imposes a Definition of “Coordination”

that Violates the First Amendment.

Section 214 of BCRA repeals the FEC’s existing

regulations defining when an expenditure is deemed to be

“coordinated” with a candidate and therefore treated as an

“in-kind” contribution under FECA. See Section 214(b). It

provides that the FEC must adopt a new definition of

coordination that “shall not require agreement or formal

collaboration to establish coordination.” Section 214(c).

Because political parties enjoy a First Amendment right to

make unlimited “independent expenditures,” see Colorado

Republican Fed. Campaign Comm. v. FEC, 518 U.S. 604

(1996) (“Colorado Republican I’), a higher threshold is

required for coordination, in order not to chill the exercise of

that right. See Federal Election Comm'n v. Colorado

Republican Fed. Campaign Comm., 533 U.S. 431, 463

(2001) (treating “coordinated expenditures” as “potential

alter egos for contributions”); Colorado Republican I, 518

U.S. at 619 (1996) (requiring proof of “actual coordination as

a matter of fact”); Federal Election Comm'n v. Christian

Coalition, 52 F. Supp.2d 45, 91 (D.D.C. 1999) (“First

Amendment clarity demands a definition of ‘coordination’

that provides the clearest possible guidance to candidates and

constituents”).

The district court erroneously held that the RNC

Appellants’ constitutional challenge to Section 214 is not

justiciable on standing and ripeness grounds. The RNC

Appellants are directly injured by the broad definition of

coordination required by Section 214 because it subjects their

expenditures in support of candidates to the coordinated party

expenditure limit even though the expenditures are in fact

truly independent as a matter of law. It also purports to make

them responsible for independent expenditures by persons or

entities with whom the parties have little if any relationship.

Moreover, as Judge Henderson correctly noted in dissent, the

challenge to Section 214 is ripe for review because

“{Section] 214 will violate the First Amendment no matter

what the [FEC] does, for no regulation it promulgates may

depart . . . from the provision{’s] plain text.” Op. of

Henderson, J. at 254.

Il. BCRA’s “Millionaire’s Provisions” Deny

Political Parties Equal Protection of the Laws.

Sections 304 and 319 of BCRA, the so-called

“Millionaire’s Provisions,” lift certain restrictions otherwise

applicable to candidates when they face wealthy opponents

willing to spend personal assets on their campaigns. Among

the restrictions that are lifted is the coordinated party

expenditure limit. This means that the RNC would be

permitted to make unlimited coordinated expenditures for

some candidates while remaining subject to strict coordinated

spending limits for others. The distinguishing characteristic

mandated by statute is the ability and willingness of the

candidate (or his or her opponent) to exercise the First

Amendment-protected nght to spend personal assets for a

political campaign. See Buckley, 424 U.S. at 53-54

(expenditure from personal funds poses no threat of

corruption, but rather “counteracts the coercive pressures and

attendant risks of abuse to which the Act’s contribution limits

are directed.”) Further, lifting the contribution limits and

coordinated spending limits for candidates most in need of

funds contradicts the basic rationale of preventing actual or

apparent corruption advanced for all contribution limits. If

anything, the candidates favored by the Millionaire’s

Provisions would be more, not less, susceptible to the

asserted corruption.

The district court held that the RNC Appellants lack

standing to challenge the Millionaire’s Provisions because

none of the RNC Appellants are federal candidates. The

Millionaire’s Provisions directly restrict the speech of

political parties as well as candidates, however, by requiring

parties to spend less to support some similarly-situated

candidates than others. It is no answer to say that the party

may simply choose to spend at the lower level for all its

candidates, since any First Amendment challenge could be

cured if the challenger would simply accept the restrictions.

CONCLUSION

For the foregoing reasons, probable jurisdiction

should be noted.

Respectfully submitted,

THOMAS J. JOSEFIAK Bossy R. BURCHFIELD

CHARLES R. SPIES Counsel of Record

REPUBLICAN NATIONAL THOMAS O. BARNETT

COMMITTEE ROBERT K. KELNER

310 First Street, S.E. COVINGTON & BURLING

Washington, D.C. 20003 1201 Pennsylvania Ave., N.W.

(202) 863-8500 Washington, D.C. 20004

(202) 662-6000

MICHAEL A. CARVIN

JONES Day REAVIS & BENJAMIN L. GINSBERG

POGUE PATTON BocGs LLP

51 Louisiana Ave.,N.W. 2550 M Street, N.W.

Washington, D.C. 20001 Washington, D.C. 20037

(202) 879-3939 (202) 457-6000

May 27, 2003 Counsel for RNC Appellants

IN THE UNITED STATES DISTRICT COURT FOR

THE DISTRICT OF COLUMBIA

REPUBLICAN NATIONAL COMMITTEE, et al.

Plaintiffs,

FEDERAL ELECTION COMMISSION, et al.

Defendant.

Civ. No. 02-874

Pursuant to Section 403(a)(3) of the Bipartisan

Campaign Reform Act of 2002, Pub. Law No. 107-155, 116

Stat. 81 (“BCRA”), notice is hereby given that plaintiffs

Republican National Committee, Robert Michael Duncan,

Republican Party of Colorado, Republican Party of New

Mexico, Republican Party of Ohio, and Dallas County (Iowa)

Republican County Central Committee (the “RNC

Plaintiffs”), hereby appeal to the United States Supreme

Court from the Order of the three-judge Court entered in this

action on May 2, 2003, failing to strike down in their entirety

certain provisions of Titles I, I, and If] of BCRA challenged

by RNC Plaintiffs as unconstitutional. This notice is timely

submitted within 10 days of entry of the aforementioned

Order. See BCRA § 403(a)(3).

Michael A. Carvin

Jones Day Reavis &

Pogue

51 Louisiana Ave., N.W.

Washington, D.C. 20001

(202) 879-3939

Thomas J. Josefiak

Charles R. Spies

Republican National

Committee

310 First Street, N.W.

Washington, D-C. 20003

(202) 863-8500

May 7, 2003

Respectfully submitted,

Bobby R. Burchfield

Covington & Burling

1201 Pennsylvania Ave., N.W.

Washington, D.C. 20004

(202) 662-6000

Benjamin L. Ginsberg

Patton Boggs LLP

2550 M Street, N.W.

Washington, D.C. 20037

(202) 457-6000

PUBLIC LAW 107-155 (HR 2356)

March 27, 2002

BIPARTISAN CAMPAIGN REFORM ACT OF 2002

An Act

To amend the Federal Election Campaign Act of 1971 to

provide bipartisan campaign .eform.

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.

2 USCA § 431 NOTE

(a) SHORT TITLE.-This Act may be cited as the

“Bipartisan Campaign Reform Act of 2002”.

(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 limit for State committees

of political parties.

Sec. 103. Reporting requirements.

TITLE I-NONCANDIDATE CAMPAIGN

EXPENDITURES

Subtitle A—Electioneering Communications

Sec. 201. Disclosure of electioneering communications.

Sec. 202. Coordinated communications as contributions.

Sec. 203. Prohibition of corporate and labor disbursements

for electioneering communications.

Sec. 204. Rules relating to certain targeted electioneering

communications.

Subtitle B—Independent and Coordinated Expenditures |

. Definition of independent expenditure.

. Reporting requirements for certain independent

expenditures.

. Independent versus coordinated expenditures by

party.

. Coordination with candidates or political parties.

TITLE I1]-MISCELLANEOUS

. Use of contributed amounts for certain purposes.

. Prohibition of fundraising on Federal property.

. Strengthening foreign money ban.

. Modification of individual contribution limits in

response to expenditures from personal funds.

. Limitation on availability of lowest unit charge for

Federal candidates attacking opposition.

. Software for filing reports and prompt disclosure

of contributions.

. Modification of contribution limits.

. Donations to Presidential inaugural committee.

. Prohibition on fraudulent solicitation of funds.

. Study and report on clean money clean elections

laws.

. Clarity standards for identification of sponsors of

election-related advertising.

. Increase in penaiuties.

. Statute of limitations.

. Sentencing guidelines.

. Increase in penalties imposed for violations of

conduit contribution ban.

. Restriction on increased contribution limits by

taking into account candidate’s available funds.

. Clarification of nght of nationals of the United

States to make political contributions.

. Prohibition of contributions by minors.

. Modification of individual contribution limits for

House candidates in response to expenditures

from personal funds.

TITLE IV-SEVERABILITY; EFFECTIVE DATE

Sec. 401. Severability.

Sec. 402. Effective dates and regulations.

Sec. 403. Judicial review.

TITLE V-ADDITIONAL DISCLOSURE PROVISIONS

Sec. 501. Internet access to records.

Sec. 502. Maintenance of website of election reports.

Sec. 503. Additional disclosure reports.

Sec. 504. Public access to broadcasting records.

TITLE I-REDUCTION OF SPECIAL INTEREST

INFLUENCE

SEC. 101. SOFT MONEY OF POLITICAL PARTIES.

2 USCA § 441i

(a) IN GENERAL.-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. 323. 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) may not solicit,

receive, or direct to another person a contribution,

donation, or transfer of funds or any other thing of value,

or spend any funds, that are not subject to the

limitations, prohibitions, and reporting requirements of

this Act.

(2) APPLICABILITY.-The prohibition established

by paragraph (1) applies to any such national committee,

any officer or agent acting on behalf of such a national

committee, and any entity that is directly or indirectly

established, financed, maintained, or controlled by such

a national committee.

(b) STATE, DISTRICT, AND LOCAL COM-

MITTEES.-

(1) IN GENERAL.-Except as provided in paragraph

(2), an amount that is expended or disbursed for Federal

election activity 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), or by an association or similar

group of candidates for State or local office or of

individuals holding State or local office, shall be made

from funds subject to the limitations, prohibitions, and

reporting requirements of this Act.

(2) APPLICABILITY.-

(A) IN GENERAL.—Notwithstanding clause

(i) or (ii) of section 301(20)(A), and subject to

subparagraph (B), paragraph (1) shall not apply

to any amount expended or disbursed by a State,

district, or local committee of a political party for

an activity described in either such clause to the

extent the amounts expended or disbursed for

such activity are allocated (under regulations

prescribed by the Commission) among amounts-—

(i) which consist solely of contributions

subject to the limitations, prohibitions, and

reporting requirements of this Act (other than

amounts described in subparagraph (B)(iii));

and

(ii) other amounts which are not subject to

the limitations, prohibitions, and reporting

requirements of this Act (other than any

requirements of this subsection).

(B) CONDITIONS.-—Subparagraph (A) shall

only apply if-

(i) the activity does not refer to a clearly

identified candidate for Federal office;

(ii) the amounts expended or disbursed

are not for the costs of any broadcasting,

cable, or satellite communication, other than a

communication which refers solely to a

clearly identified candidate for State or local

office;

(iii) the amounts expended or disbursed

which are described in subparagraph (A)(ii)

are paid from amounts which are donated in

accordance with State law and which meet the

requirements of subparagraph (C), except that

no person (including any person established,

financed, maintained, or controlled by such

person) may donate more than $10,000 to a

State, district, or local committee of a political

party in a calendar year for such expenditures

or disbursements; and

(iv) the amounts expended or disbursed

are made solely from funds raised by the

State, local, or district committee which

makes such expenditure or disbursement, and

do not include any funds provided to such

committee from—

(I) any other State, local, or district

committee of any State party,

(I) the national committee of a

political party (including a national

congressional campaign committee of a

political party),

(I) any officer or agent acting on

behalf of any committee described in

subclause (I) or (II), or

(IV) any entity directly or indirectly

established, financed, maintained, or

controlled by any committee described in

subclause (I) or (II).

NATIONAL PARTIES, FEDERAL CANDI-

DATES AND OFFICEHOLDERS, AND

STATE PARTIES ACTING JOINTLY.-

Notwithstanding subsection (e) (other than

subsection (e)(3)), amounts specifically

authorized to be spent under subparagraph

(BXiii) meet the requirements of this

subparagraph only if the amounts—

(i) are not solicited, received, directed,

transferred, or spent by or in the name of any

person described in subsection (a) or (e); and

(ii) are not solicited, received, or directed

through fundraising activities conducted

jointly by 2 or more State, local, or district

committees of any political party or their

agents, or by a State, local, or district

committee of a political party on behalf of the

State, local, or district committee of a political

party or its agent in one or more other States.

person described in subsection (a) or (b) to raise funds that

are used, in whole or in part, for expenditures and

disbursements for 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, 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—

(1) an organization that is described in section 501(c)

of the Internal Revenue Code of 1986 and exempt from

taxation under section 50l(a) of such Code (or has

submitted an application for determination of tax exempt

status under such section) and that makes expenditures

or disbursements in connection with an election for

Federal office (including expenditures or disbursements

for Federal election activity); or

(2) an organization described in section 527 of such

Code (other than a political committee, a State, district,

or local committee of a political party, or the authorized

campaign committee of a candidate for State or local

office).

(e) FEDERAL CANDIDATES.—

(1) IN GENERAL.~A candidate, individual holding

Federal office, agent of a candidate or an individual

holding Federal office, or an entity directly or indirectly

established, financed, maintained or controlled by or

acting on behalf of 1 or more candidates or individuals

holding Federal office, shall not-

(A) solicit, receive, direct, transfer, or spend

funds in connection with an election for Federal

office, including funds for any Federal election

activity, unless the funds are subject to the

limitati hibiti on

requirements of this Act; or

(B) solicit, receive, direct, transfer, or spend

funds in connection with any election other than

an election for Federal office or disburse funds in

10a

connection with such an election unless the

funds—

(i) are not in excess of the amounts

permitted with respect to contributions to

candidates and political committees under

and

(11) are not from sources prohibited by this

Act from making contnbutions in connection

with an election for Federal office.

(2) STATE LAW.—Paragraph (1) does not apply

to the solicitation, receipt, or spending of funds by an

individual described in such paragraph who is or was

also a candidate for a State or local office solely in

connection with such election for State or local office

if the solicitation, receipt, or spending of funds is

permitted under State law and refers only to such

State or local candidate, or to any other candidate for

the State or local office sought by such candidate, or

both.

(3) FUNDRAISING EVENTS.—Notwithstanding

paragraph (1) or subsection (b)(2)(C), a candidate or

an individual holding Federal office may attend,

speak, or be a featured guest at a fundraising event for

a State, district, or local committee of a political

party.

(4) PERMITTING CERTAIN SOLICITA-

TIONS.-

(A) GENERAL ~~ SOLICITATIONS.-

Notwithstanding any other provision of this

subsection, an individual described in paragraph

(1) may make a general solicitation of funds on

behalf of any organization that is described in

section 501(c) of the Internal Revenue Code of

lla

1986 and exempt from taxation under section

501(a) of such Code (or has submitted an

application for determination of tax exempt

status under such section) (other than an entity

whose principal purpose is to conduct activities

described in clauses (i) and (ii) of section

301(20)(A)) where such solicitation does not

specify how the funds will or should be spent.

(B) CERTAIN SPECIFIC SOLICITA-

TIONS.-In addition to the general solicitations

permitted under subparagraph (A), an individual

described in paragraph (1) may make a

solicitation explicitly to obtain funds for carrying

out the activities described in clauses (i) and (ii)

of section 301(20)(A), or for an entity whose

principal purpose is to conduct such activities, if-

(i) the solicitation is made only to

individuals; and

(ii) the amount solicited from any

individual during any calendar year does not

exceed $20,000.

(f) STATE CANDIDATES.-

(1) IN GENERAL.—A candidate for State or local

office, individual holding State or local office, or an

agent of such a candidate or individual may not spend

any funds for a communication described in section

301(20)(A)iii) unless the funds are subject to the

limitations, prohibitions, and reporting requirements of

this Act.

(2) EXCEPTION FOR CERTAIN COMMUNICA-

TIONS.—Paragraph (1) shall not apply to an individual

described in such paragraph if the communication

involved is in connection with an election for such State

or local office and refers only to such individual or to

12a

any other candidate for the State or local office held or

sought by such individual, or both.

2 USCA § 431

(b) DEFINITIONS.-Section 301 of the Federal

Election Campaign Act of 1971 (2 U.S.C. 431) is amended

by adding at the end thereof the following:

(20) 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);

(iii) a public 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 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) services provided during any month

by an employee of a State, district, or local

committee of a political party who spends

more than 25 percent of that individual’s

l3a

compensated time during that month on

activities in connection with a Federal

election.

(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) a public communication that refers

solely to a clearly identified candidate for

State or local office, if the communication is

not a Federal election activity described in

subparagraph (A)(i) or (ii);

(ii) a contribution to a candidate for State

or local office, provided the contribution is

not designated to pay for a Federal election

activity described in subparagraph (A);

(iii) the costs of a State, district, or local

political convention; and

(iv) the costs of grassroots campaign

and yard signs, that name or depict only a

candidate for State or local office.

(21) GENERIC CAMPAIGN ACTIVITY.-The term

“generic campaign activity” means a campaign activity

that promotes a political party and does not promote a

candidate or non-Federal candidate.

(22) PUBLIC COMMUNICATION.-The term

“public communication” means a communication by

means of amy broadcast, cable, or satellite

communication, newspaper, magazine, outdoor

advertising facility, mass mailing, or telephone bank to

l4a

the general public, or any other form of general public

political advertising.

(23) MASS MAILING.—The term “mass mailing”

means a mailing by United States mail or facsimile of

more than 500 pieces of mail matter of an identical or

substantially similar nature within any 30-day period.

(24) TELEPHONE BANK.-The term “telephone

bank” means more than 500 telephone calls of an

identical or substantially similar nature within any 30-

day period.

15a

SEC. 102. INCREASED CONTRIBUTION LIMIT FOR

STATE COMMITTEES OF POLITICAL

PARTIES.

2 USCA § 44la

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 imserting “(other than a committee

described in subparagraph (D))” after “com-

mittee”; 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. 103. REPORTING REQUIREMENTS.

2 USCA § 434

(a) REPORTING REQUIREMENTS.-Section 304 of

the Federal Election Campaign Act of 1971 (2 U.S.C. 434) 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 323 APPLIES.-

_ (A) IN GENERAL.-In addition to any other

reporting requirements applicable under this Act,

16a

a political committee (not described in paragraph

(1)) to which section 323(b)(1) applies shall

report all receipts and disbursements made for

activities described in section 301(20)(A), unless

the aggregate amount of such receipts and

disbursements during the calendar year is less

than $5,000.

(B) SPECIFIC DISCLOSURE BY STATE

AND LOCAL PARTIES OF CERTAIN NON-

FEDERAL AMOUNTS PERMITTED TO BE

SPENT ON FEDERAL ELECTION

ACTIVITY.-Each report by a political com-

mittee under subparagraph (A) of receipts and

disbursements made for activities described in

section 301(20)(A) shall include a disclosure of

all receipts and disbursements described in

section 323(b)(2)(A) and (B).

(3) ITEMIZATION.-If a political committee has

receipts or disbursements to which this subsection

applies from or to 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)(4)(B).

(b) BUILDING FUND EXCEPTION TO THE

DEFINITION OF CONTRIBUTION.—

(1) IN GENERAL.—Section 301(8)(B) of the Federal

Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is

amended—

2 USCA § 431

17a

(A) by striking clause (viii); and

(B) by redesignating clauses (ix) through

(xv) as clauses (viii) through (xiv), respectively.

2 USCA § 453

(2) NONPREEMPTION OF STATE LAW.-Section

403 of such Act (2 U.S.C. 453) is amended-

(A) by striking “The provisions of this Act”

and inserting “(a) IN GENERAL.—Subject to

subsection (b), the provisions of this Act”, and

(B) by adding at the end the following:

(b) STATE AND LOCAL COMMITTEES OF

POLITICAL PARTIES.—Notwithstanding any other provi-

sion of this Act, a State or local committee of a political party

may, subject to State law, use exclusively funds that are not

subject to the prohibitions, limitations, and reporting

requirements of the Act for the purchase or construction of an

office building for such State or local committee.

TITLE II-NONCANDIDATE CAMPAIGN

EXPENDITURES

Subtitle A-Electioneering Communications

SEC. 201. DISCLOSURE OF ELECTIONEERING

COMMUNICATIONS.

2 USCA § 434

(a) IN GENERAL.—Section 304 of the Federal

Election Campaign Act of 1971 (2 U.S.C. 434), as amended

by section 103, is amended by adding at the end the

following new subsection:

(f) DISCLOSURE OF ELECTIONEERING

COMMUNICATIONS.-—

(1) STATEMENT REQUIRED.-Every person

who makes a disbursement for the direct costs of

producing and airing electioneering communications in

18a

an aggregate amount in excess of $10,000 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 amy person 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 of the

person making the disbursement, if not an

individual.

more than $200 during the period covered by the

Statement and the identification of the person to

whom the disbursement was made.

(D) The elections to which the electioneering

communications pertain and the names (if

known) of the candidates identified or to be

identified.

(E) If the disbursements were paid out of a

segregated bank account which consists of funds

contributed solely by individuals who are United

States citizens or nationals or lawfully admitted

for permanent residence (as defined in section

101(a)(20) of the Immigration and Nationality

Act (8 U.S.C. 1101(a)(20))) directly to this

account for electioneering communications, the

names and addresses of all contributors who

19a

contributed an aggregate amount of $1,000 or

more to that account during the period beginning

on the first day of the preceding calendar year

and ending on the disclosure date. Nothing in this

subparagraph is to be construed as a prohibition

on the use of funds in such a segregated account

for a purpose other than electioneering com-

munications.

(F) If the disbursements were paid out of

funds not described in subparagraph (E), the

names and addresses of all contributors who

contributed an aggregate amount of $1,000 or

more to the person making the dicbursement

during the period beginning on the first day of

the preceding calendar year and ending on the

disclosure date.

(3) ELECTIONEERING COMMUNICATION.—For

purposes of this subsection—

(A) IN GENERAL.~+{i) The term

“electioneering communication” any

broadcast, cable, or satellite communication

which-

(I) refers to a clearly identified

candidate for Federal office;

(II) is made within—

(aa) 60 days before a general,

special, or runoff election for the

office sought by the candidate; or

(bb) 30 days before a primary

or preference election, or a convention

or caucus of a political party that has

authority to nominate a candidate, for

the office sought by the candidate; and

20a

(IIT) in the case of a communication

which refers to a candidate for an office other

than President or Vice President, is targeted to

the relevant electorate.

(ii) If clause (i) is held to be constitutionally

insufficient by final judicial decision to support

the regulation provided herein, then the term

“electioneering communication” means any

broadcast, cable, or satellite communication

which 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) and which also is suggestive of no

plausible meaning other than an exhortation to

vote for or against a specific candidate. Nothing

in this subparagraph shall be construed to affect

the interpretation or application of section

100.22(b) of title 11, Code of Federal

Regulations.

(B) EXCEPTIONS.-The term “elec-

tioneering communication” does not include—

(i) a communication appearing 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;

(ii) a communication which constitutes an

expenditure or an independent expenditure

under this Act;

(iii) a communication which constitutes a

candidate debate or forum conducted pursuant

to regulations adopted by the Commission, or

2la

which solely promotes such a debate or forum

and is made by or on behalf of the person

sponsoring the debate or forum; or

(iv) any other communication exempted

under such regulations as the Commission

may promulgate (consistent with the

requirements of this paragraph) to ensure the

appropriate implementation of this paragraph,

except that under any such regulation a

communication may not be exempted if it

meets the requirements of this paragraph and

is described in section 301(20)(A)(iii).

ELECTORATE.—For purposes of this paragraph,

a communication which refers to a clearly

identified candidate for Federal office is

“targeted to the relevant electorate” if the

communication can be received by 50,000 or

more persons—

(i) in the district the candidate seeks to

represent, in the case of a candidate for

Representative in, or Delegate or Resident

Commissioner t6, the Congress; or

(ii) in the State the candidate seeks to

represent, in the case of a candidate for

Senator.

(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 the

direct costs of producing or airing electioneering

communications aggregating in excess of

$10,000; and

22a

(B) any other date during such calendar year

by which a person has made disbursements for

the direct costs of producing or airing

electioneering communications aggregating in

excess of $10,000 since the most recent

disclosure date for such calendar year.

(5) CONTRACTS TO DISBURSE.—For purposes of

this subsection, a person shall be treated as having made

a disbursement if the person has executed a contract to

make the disbursement.

(6) COORDINATION WITH OTHER REQUIRE-

MENTS.—Any requirement to report under this

subsection shall be in addition to any other reporting

requirement under this Act.

(7) COORDINATION WITH = INTERNAL

REVENUE CODE.-Nothing in this subsection may be

construed to establish, modify, or otherwise affect the

definition of political activities or electioneering

activities (including the definition of participating in,

intervening in, or influencing or attempting to influence

a political campaign on behalf of or in opposition to any

candidate for public office) for purposes of the Internal

Revenue Code of 1986.

2 USCA § 434 NOTE

(b) RESPONSIBILITIES OF FEDERAL COM-

MUNICATIONS COMMISSION.-The Federal Com-

munications Commission shal] compile and maintain any

information the Federal Election Commission may require to

carry out section 304(f) of the Federal Election Campaign

Act of 1971 (as added by subsection (a)), and shall make

such information available to the public on the Federal

Communication Commission’s website.

SEC. 202. COORDINATED COMMUNICATIONS AS

CONTRIBUTIONS.

23a

2 USCA § 44la

Section 315(a)(7) of the Federal Election Campaign

Act of 1971 (2 U.S.C. 441a(a)(7)) is amended—

(1) by redesignating subparagraph (C) as sub-

paragraph (D); and

(2) by inserting after subparagraph (B) the following:

(i) any person makes, or contracts to make,

any disbursement for any electioneering

communication (within the meaning of section

304(f)(3)); and

(ii) such disbursement is coordinated with a

candidate or an authorized committee of such

\ candidate, a Federal, State, or local political party

or committee thereof, or an agent or official of

any such candidate, party, or committee;

such disbursement or contracting shall be treated as a

contribution to the candidate supported by the

electioneering communication or that candidate’s party

and as an expenditure by that candidate or that

candidate’s party; and.

SEC. 203. PROHIBITION OF CORPORATE AND

LABOR DISBURSEMENTS FOR ELEC-

TIONEERING COMMUNICATIONS.

2 USCA § 441b

(a) IN GENERAL.-—Section 316(b)(2) of the Federal

Election Campaign Act of 1971 (2 U.S.C. 441b(b)(2)) is

amended by inserting “or for any applicable electioneering

communication” before “, but shall not include”.

(b) APPLICABLE ELECTIONEERING COM-

MUNICATION.-—Section 316 of such Act is amended by

adding at the end the following:

24a

COMMUNICATIONS.-—

(1) APPLICABLE ELECTIONEERING COM-

MUNICATION.—For purposes of this section, the term

“applicable electioneering communication” means an

electioneering communication (within the meaning of

section 304(f)(3)) which is made by any entity described

in subsection (a) of this section or by any other person

using funds donated by an entity described in subsection

(a) of this section.

(2) EXCEPTION.—Notwithstanding paragraph (1),

the term “applicable electioneering communication”

does not include a communication by a section 501(c)(4)

organization or a political organization (as defined in

section 527(e)(1) of the Internal Revenue Code of 1986)

made under section 304(f)(2)(E) or (F) of this Act if the

communication is paid for exclusively by funds provided

directly by individuals who are United States citizens or

nationals or lawfully admitted for permanent residence

(as defined in section 101(a)(20) of the Immigration and

Nationality Act (8 U.S.C. 1101(a)(20))). For purposes of

the preceding sentence, the term ‘provided directly by

individuals’ does not include funds the source of which

is an entity described in subsection (a) of this section.

(3) SPECIAL OPERATING RULES.—

(A) DEFINITION UNDER PARAGRAPH

(1).-An electioneering communication shall be

treated as made by an entity described in

subsection (a) if an entity described in subsection

(a) directly or indirectly disburses any amount for

any of the costs of the communication.

(B) EXCEPTION UNDER PARAGRAPH

(2).-A section 501(c)(4) organization that derives

amounts from business activities or receives

25a

funds from any entity described in subsection (a)

shall be considered to have paid for any

communication out of such amounts unless such

organization paid for the communication out of a

segregated account to which only individuals can

contribute, as described in section 304(f)(2)(E).

(4) DEFINITIONS AND RULES.-For purposes of

this subsection—

(A) the term “section 501(c)(4) organiza-

tion” means—

(i) an organization described in section

501(c4) of the Internal Revenue Code of

1986 and exempt from taxation under section

501(a) of such Code; or

(ii) an organization which has submitted

an application to the Internal Revenue Service

for determination of its status as an

organization described in clause (i); and

(B) a person shall be treated as having made

a disbursement if the person has executed a

contract to make the disbursement.

(5) COORDINATION WITH INTERNAL

REVENUE CODE.-Nothing in this subsection shall be

construed to authorize an organization exempt from

taxation under section 501(a) of the Internal Revenue

Code of 1986 to carry out any activity which is

prohibited under such Code.

2 USCA § 441b

SEC. 204. RULES RELATING TO CERTAIN

TARGETED ELECTIONEERING COM-

MUNICATIONS.

26a

Section 316(c) of the Federal Election Campaign Act

of 1971 (2 U.S.C. 441b), as added by section 203, is

amended by adding at the end the following:

(6) SPECIAL RULES FOR TARGETED COM-

MUNICATIONS.-—

(A) EXCEPTION DOES NOT APPLY.-

Paragraph (2) shall not apply in the case of a

targeted communication that is made by an

organization described in such paragraph.

(B) TARGETED COMMUNICATION.—For

purposes of subparagraph (A), the term “targeted

communication” means an_ electioneering

communication (as defined in section 304(f)(3))

that is distributed from a television or radio

broadcast station or provider of cable or satellite

television service and, in the case of a

communication which refers to a candidate for an

office other than President or Vice President, is

targeted to the relevant electorate.

paragraph, a communication is “targeted to the

relevant electorate” if it meets the requirements

described in section 304(f)(3)(C).

Subtitle B—Independent and Coordinated

Expenditures

2 USCA § 431

SEC. 211. 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:

27a

(17) INDEPENDENT EXPENDITURE.-The term

“independent expenditure” means an expenditure by a

person—

(A) expressly advocating the election or

defeat of a clearly identified candidate; and

(B) that is not made in concert or

cooperation with or at the request or suggestion

of such candidate, the candidate’s authorized

political committee, or their agents, or a political

party committee or its agents.

SEC. 212. REPORTING REQUIREMENTS FOR

CERTAIN INDEPENDENT EXPENDI-

TURES.

(a) INGENERAL.-Section 304 of the Federal

Election Campaign Act of 1971 (2 U.S.C. 434) (as amended

by section 201) is amended-

2 USCA § 434

(1) in subsection (c)(2), by striking the undesignated

matter after subparagraph (C); and

(2) by adding at the end the following:

(g) TIME FOR REPORTING CERTAIN EXPENDI-

TURES.—

(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.

(B) ADDITIONAL REPORTS.-After a

person files a report under subparagraph (A), the

person shall file an additional report within 24

28a

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.

(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.

(b) TIME OF FILING OF CERTAIN

STATEMENTS.-

2 USCA § 434

29a

(1) IN GENERAL.-Section 304(g) of such Act, as

added by subsection (a), is amended by adding at the end

the following:

(4) TIME OF FILING FOR EXPENDITURES

AGGREGATING $1,000.—Notwithstanding subsection

(a)(5), the time at which the statement under paragraph

(1) is received by the Commission or any other recipient

to whom the notification is required to be sent shall be

considered the time of filing of the statement with the

recipient.

2 USCA § 434

(2) CONFORMING AMENDMENTS.-{A) Section

304(a)(S) of such Act (2 U.S.C. 434(a)(5)) is amended

by striking “the second sentence of subsection (c)(2)”

and inserting subsection (g)(1).

(B) Section 304(d)(1) of such Act (2 U.S.C.

434(d)(1)) is amended by inserting “or (g)” after

“subsection (c)”.

30a

SEC. 213. INDEPENDENT VERSUS COORDINATED

EXPENDITURES BY PARTY.

Section 315(d) of the Federal Election Campaign Act

of 1971 (2 U.S.C. 441a(d)) is amended—

2 USCA § 44la

(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, no

committee of the political party may make—

(i) any coordinated expenditure under this

subsection with respect to the candidate

during the election cycle at any time after it

makes any independent expenditure (as

defined in section 301(17)) with respect to the

candidate during the election cycle; or

(ii) amy independent expenditure (as

defined in section 301(17)) with respect-to the

candidate during the election cycle at any time

after it makes any coordinated expenditure

under this subsection with respect to the

candidate during the election cycle.

(B) APPLICATION.—For purposes of this

paragraph, all political committees established

and maintained by a national political party

(including all congressional campaign com-

mittees) and all political committees established

and maintained by a State political party

(including any subordinate committee of a State

3la

committee) shall be considered to be a single

political committee.

political party that makes coordinated

expenditures under this subsection 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. 214. COORDINATION WITH CANDIDATES OR

POLITICAL PARTIES.

(a) IN GENERAL.—Section 315(a)(7)\(B) of the

Federal Election Campaign Act of 1971 (2 U.S.C.

441a(a)(7)(B)) is amended—

2 USCA § 44la

(1) by redesignating clause (ii) as clause (iii); and

(2) by inserting after clause (i) the following new

clause:

(ii) expenditures made by any person (other

than a candidate or candidate’s authorized

committee) in cooperation, consultation, or

concert with, or at the request or suggestion

of, a national, State, or local committee of a

political party, shall be considered to be

contributions made to such party committee;

and.

(b) REPEAL OF CURRENT REGULATIONS.—The

regulations on coordinated communications paid for by

persons other than candidates, authorized committees of

candidates, and party committees adopted by the Federal

Election Commission and published in the Federal Register

32a

at page 76138 of volume 65, Federal Register, on

December 6, 2000, are repealed as of the date by which the

Commission is required to promulgate new regulations under

subsection (c) (as described in section 402(c)(1)).

2 USCA § 441a NOTE

ELECTION COMMISSION.-The Federal Election

Commission shall promulgate new regulations on

coordinated communications paid for by persons other than

candidates, authorized committees of candidates, and party

committees. The regulations shall not require agreement or

formal collaboration to establish coordination. In addition to

any subject determined by the Commission, the regulations

shall address—

(1) payments for the republication of campaign

(2) payments for the use of a common vendor;

(3) payments for communications directed or

made by persons who previously served as an employee

of a candidate or a political party; and

(4) payments for communications made by a

person after substantial discussion about the

communication with a candidate or a political party.

2 USCA § 441b

(d) 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)(2)) 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 II-MISCELLANEOUS

2 USCA § 439a

33a

SEC. 301. USE OF CONTRIBUTED AMOUNTS FOR

CERTAIN PURPOSES.

Title II of the Federal Election Campaign Act of

197} (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 donation 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 otherwise authorized 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;

(4) for transfers, without limitation, to a national,

State, or local committee of a political party.

(b) PROHIBITED USE.-

(1) IN GENERAL.-A contribution or donation

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 donation 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

office, including—

34a

(A) a home mortgage, rent, or utility

payment,

(B) a clothing purchase;

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

(I) dues, fees, and other payments to a health

club or recreational facility.

SEC. 302. PROHIBITION OF FUNDRAISING ON

FEDERAL PROPERTY.

Section 607 of title 18, United States Code, is

amended—

18 USCA § 607

(1) by striking subsection (a) and inserting the

following:

(a) PROHIBITION.-

(1) IN GENERAL.~-It shall be unlawful for any

person to solicit or receive a donation of money or other

thing of value in connection with a Federal, State, or local

election 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. It shall be unlawful for an

individual who is an officer or employee of the Federal

Government, including the President, Vice President, and

Members of Congress, to solicit or receive a donation of

35a

money or other thing of value in connection with a Federal,

State, or local election, 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 not more

than 3 years, or both; and

18 USCA § 607

(2) in subsection (b), by inserting “ or Executive

Office of the President” after

SEC. 303. STRENGTHENING FOREIGN MONEY

BAN.

Section 319 of the Federal Election Campaign Act of

1971 (2 U.S.C. 441e) is amended—

2 USCA § 44le

(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 contribution or donation of money or

other thing of value, or to make an express or

implied promise to make a contribution or

donation, in connection with a Federal, State, or

local election;

(B) a contribution or donation to a

committee of a political party; or

or disbursement for an _ electioneering

communication (within the meaning of section

304(f)(3)); or

36a

(2) a person to solicit, accept, or receive a

contribution or donation described in subparagraph (A) or

(B) of paragraph (1) from a foreign national.

SEC. 304. MODIFICATION OF INDIVIDUAL CON-

TRIBUTION LIMITS IN RESPONSE TO

EXPENDITURES FROM PERSONAL

FUNDS.

(a) INCREASED LIMITS FOR INDIVIDUALS.—

Section 315 of the Federal Election Campaign Act of 1971

(2 U.S.C. 441a) is amended-

2 USCA § 44la

(1) in subsection (a)(1), by striking “No person” and

inserting “Except as provided in subsection (i), no person”’;

and

(2) by adding at the end the following:

(i) INCREASED LIMIT TO ALLOW RESPONSE TO

EXPENDITURES FROM PERSONAL FUNDS.—

(1) INCREASE.-

(A) IN GENERAL.—Subject to paragraph

(2), if the opposition personal funds amount with

respect to a candidate for election to the office of

Senator exceeds the threshold amount, the limit

under subsection (a)(1)(A) (in this subsection

referred to as the “applicable limit”) with respect

to that candidate shall be the increased limit.

(B) THRESHOLD AMOUNT.-

(i) STATE-BY-STATE COMPETITIVE

AND FAIR CAMPAIGN FORMULA.-In this

subsection, the threshold amount with respect

to an election cycle of a candidate described in

subparagraph (A) is an amount equal to the

sum of-

(T) $150,000; and

37a

(II) $0.04 multiplied by the voting age

population.

(ii) VOTING AGE POPULATION.-In

this subparagraph, the term “voting age

population” means in the case of a candidate

for the office of Senator, the voting age

population of the State of the candidate (as

certified under section 31 5(e)).

provided in clause (ii), for purposes of

subparagraph (A), if the opposition personal

funds amount is over—

(i) 2 times the threshold amount, but not

over 4 times that amount-

(I) the increased limit shall be 3 times

(II) the limit under subsection (a)(3)

shall not apply with respect to any

contribution made with respect to a

candidate if such contribution is made

under the increased limit of subparagraph

(A) during a period in which the candidate

may accept such a contribution;

(ii) 4 times the threshold amount, but not

over 10 times that amount—

(I) the increased limit shall be 6 times

(II) the limit under subsection (a)(3)

shall not apply with respect to any

contribution made with respect to a

candidate if such contribution is made

under the increased limit of subparagraph

38a

(A) during a period in which the candidate

may accept such a contribution; and

(iii) 10 times the threshold amount—

(I) the increased limit shall be 6 times

the applicable limit;

(II) the limit under subsection (a)(3)

shall not apply with respect to any

contribution made with respect to a

candidate if such contribution is made

under the increased limit of subparagraph

(A) during a period in which the candidate

may accept such a contribution; and

(III) the limits under subsection (d)

with respect to any expenditure by a State

or national committee of a political party

shall not apply.

(D) OPPOSITION PERSONAL FUNDS

AMOUNT.-The opposition personal funds

amount is an amount equal to the excess (if any)

of-

(i) the greatest aggregate amount of

expenditures from personal funds (as defined

in section 304(a)(6)(B)) that an opposing

candidate in the same election makes; over

(ii) the aggregate amount of expenditures

from personal funds made by the candidate

with respect to the election.

(2) TIME TO ACCEPT CONTRIBUTIONS UNDER

INCREASED LIMIT.-

(A) IN GENERAL.-Subject to subparagraph

(B), a candidate and the candidate’s authorized

committee shal] not accept any contribution, and

39a

a@ party committee shall not make any

expenditure, under the increased limit under

paragraph (1)-

(i) until the candidate has received

notification of the opposition personal funds

amount under section 304(a)(6)(B); and

(ii) to the extent that such contribution,

when added to the aggregate amount of

contributions previously accepted and party

expenditures previously made under the

increased limits under this subsection for the

election cycle, exceeds 110 percent of the

(B) EFFECT OF WITHDRAWAL OF AN

OPPOSING CANDIDATE.~A candidate and a

candidate’s authorized committee shall not

accept any contribution and a party shall not

make any expenditure under the increased limit

after the date on which an opposing candidate

ceases to be a candidate to the extent that the

amount of such increased imit is attributable to

such an opposing candidate.

(3) DISPOSAL OF EXCESS CONTRIBUTIONS.-

(A) IN GENERAL.-The aggregate amount

of contributions accepted by a candidate or a

candidate’s authorized committee under the

increased limit under paragraph (1) and not

otherwise expended in connection with the

election with respect to which such contributions

relate shall, not later than 50 days after the date

of such election, be used in the manner described

in subparagraph (B).

(B) RETURN TO CONTRIBUTORS.-A

candidate or a candidate’s authorized committee

40a

shall return the excess contribution to the person

who made the contribution.

(j) LIMITATION ON REPAYMENT OF

PERSONAL LOANS.~Any candidate who incurs personal

loans made after the effective date of the Bipartisan

Campaign Reform Act of 2002 in connection with the

candidate’s campaign for election shall not repay (directly or

indirectly), to the extent such loans exceed $250,000, such

loans from any contributions made to such candidate or any

authorized committee of such candidate after the date of such

election.

(b) NOTIFICATION OF EXPENDITURES FROM

PERSONAL FUNDS.-—Section 304(a)(6) of the Federal

Election Campaign Act of 1971 (2 U.S.C. 434(a)(6)) is

amended—

2 USCA § 434

(1) by redesignating subparagraph (B) as

subparagraph (E); and

(2) by inserting after subparagraph (A) the following:

(B) NOTIFICATION OF EXPENDITURE FROM

PERSONAL FUNDS.-

(i) DEFINITION OF EXPENDITURE

FROM PERSONAL FUNDS.-In this

subparagraph, the term “expenditure from

personal funds” means—

(I) an expenditure made by a candidate using

personal funds; and

(11) a contribution or loan made by a

candidate using personal funds or a loan

secured using such funds to the candidate’s

(ii) DECLARATION OF INTENT.-Not

later than the date that is 15 days after the date on

which an individual becomes a candidate for the

4la

office of Senator, the candidate shall file a

declaration stating the total amount of

expenditures from personal funds that the

candidate intends to make, or to obligate to

make, with respect to the election that will

exceed the State-by- State competitive and fair

campaign formula with—

(I) the Commission; and

(II) each candidate in the same election.

(ii) INITIAL NOTIFICATION.-Not later

than 24 hours after a candidate described in

clause (ii) makes or obligates to make an

aggregate amount of expenditures from persona!

funds in excess of 2 times the threshold amount

in connection with any election, the candidate

shall file a notification with—

(I) the Commission; and

(II) each candidate in the same election.

(iv) ADDITIONAL NOTIFICATION.~After

a candidate files an initial notification under

clause (iii), the candidate shall file an additional

funds are made or obligated to be made in an

aggregate amount that exceed $10,000 with—

(I) the Commission; and

(1) each candidate in the same election.

Such notification shall be filed not later than

24 hours after the expenditure is made.

(v) CONTENTS.-A notification under

clause (iii) or (iv) shall include—

(I) the name of the candidate and the office

sought by the candidate;

42a

(II) the date and amount of each expenditure;

and

(III) the total amount of expenditures from

personal funds that the candidate has made, or

obligated to make, with respect to an election

as of the date of the expenditure that is the

subject of the notification.

CONTRIBUTIONS.-In the next regularly scheduled

report after the date of the election for which a candidate

seeks nomination for election to, or election to, Federal

office, the candidate or the candidate’s authorized

committee shall submit to the Commission a report

indicating the source and amount of any excess

contributions (as determined under paragraph (1) of

section 315(i)) and the manner in which the candidate or

the candidate’s authorized committee used such funds.

(D) ENFORCEMENT.-—For provisions providing for

the enforcement of the reporting requirements under this

paragraph, see section 309.

2 USCA § 431

Election Campaign Act of 1971 (2 U.S.C. 431), as

amended by section 101(b), is further amended by

adding at the end the following:

(25) ELECTION CYCLE.-For purposes of

sections 315(i) and 315A and paragraph (26), the

term “election cycle” means the period beginning

on the day after the date of the most recent

election for the specific office or seat that a

candidate is seeking and ending on the date of the

next election for that office or seat. For purposes

of the preceding sentence, a primary election and

43a

a general election shall be considered to be

separate elections.

(26) PERSONAL FUNDS.—The term

“personal funds” means an amount that is derived

from—

(A) any asset that, under applicable State

law, at the time the individual became a

candidate, the candidate had legal night of

access to or control over, and with respect to

which the candidate had—

(i) legal and rightful title; or

(ii) an equitable interest;

(B) income received during the current

election cycle of the candidate, including—

(i) a salary and other earned income

from bona fide employment;

(ii) dividends and proceeds from the

sale of the candidate’s stocks or other

investments;

(iii) bequests to the candidate;

(iv) income from trusts established

before the beginning of the election cycle;

(v) income from trusts established by

bequest after the beginning of the election

cycle of which the candidate is the

beneficiary;

(vi) gifts of a personal nature that had

been customarily received by the candidate

prior to the beginning of the election cycle;

and

d4a

(vii) proceeds from lotteries and

similar legal games of chance; and

by the candidate and the candidate’s spouse

equal to the candidate’s share of the asset

under the instrument of conveyance or

ownership, but if no specific share is indicated

by an instrument of conveyance or ownership,

the value of 1/2 of the property.

SEC. 305. LIMITATION ON AVAILABILITY OF

LOWEST UNIT CHARGE FOR FEDERAL

CANDIDATES ATTACKING OPPOSI-

TION.

(a) IN GENERAL.-Section 315(b) of the

Communications Act of 1934 (47 U.S. C. 315(b)) is

amended-—

47 USCA § 315

(1) by striking “(b) The charges” and inserting

the following:

(b) CHARGES.-

(1) IN GENERAL.-The charges;

(2) by redesignating paragraphs (1) and (2) as

subparagraphs (A) and (B), respectively; and

(3) by adding at the end the following:

(2) CONTENT OF BROADCASTS.—

(A) IN GENERAL.-In the case of a

candidate for Federal office, such candidate shall

not be entitled to receive the rate under paragraph

(1A) for the use of any broadcasting station

to the broadcast station that the candidate (and

any authorized committee of the candidate) shall

not make any direct reference to another

45a

candidate for the same office, in any broadcast

using the nights and conditions of access under

this Act, unless such reference meets the

requirements of subparagraph (C) or (D).

(B) LIMITATION ON CHARGES.-If a

candidate for Federal office (or any authorized

committee of such candidate) makes a reference

described in subparagraph (A) in any broadcast

that does not meet the requirements of

subparagraph (C) or (D), such candidate shall not

be entitled to receive the rate under paragraph

(1)(A) for such broadcast or any other broadcast

during any portion of the 45-day and 60-day

periods described in paragraph (1)(A), that occur

on or after the date of such broadcast, for election

to such office.

candidate meets the requirements of this

subparagraph if, in the case of a television

broadcast, at the end of such broadcast there

appears simultaneously, for a period no less than

4 seconds—

(i) a clearly identifiable photographic

or similar image of the candidate; and

(ii) a clearly readable printed

stating that the candidate has approved the

broadcast and that the candidate’s authorized

committee paid for the broadcast.

(D) RADIO BROADCASTS.-A candidate

meets the requirements of this subparagraph if, in

the case of a radio broadcast, the broadcast

includes a personal audio statement by the

candidate that identifies the candidate, the office

46a

the candidate is seekin,, and indicates that the

candidate has approved tive broadcast.

(E) CERTIFICATION.-Certifications under

this section shall be provided and certified as

accurate by the candidate (or Se authorized

committee of the candidate) at time of

purchase.

(F) DEFINITIONS.—For purposes of this

paragraph, the terms “authorized committee” and

“Federal office” have the meanings given such

terms by section 301 of the Federal Election

Campaign Act of i971 (2 U.S.C. 431).

47 USCA § 315

(b) CONFORMING AMENDMENT.-Section

315(b)(1)(A) of the Communications Act of 1934 (47 U.S.C.

315(b)(1)(A)), as amended by this Act, is amended by

inserting “subject to paragraph (2),” before “during the forty-

five days”.

47 USCA § 315 NOTE

this section shall apply to broadcasts made after the effective

date of this Act.

2 USCA § 434

SEC. 306. SOFTWARE FOR FILING REPORTS AND

PROMPT DISCLOSURE OF CONTRIBU-

TIONS.

Section 304(a) of the Federal Election Campaign Act

of 1971 (2 U.S.C. 434(a)) is amended by adding at the end

the following:

(12) SOFTWARE FOR FILING OF REPORTS. -

(A) IN GENERAL.-The Commission shall-—

(i) promulgate standards to be used by

vendors to develop software that—

47a

(I) permits candidates to easily

record information concerning receipts

and disbursements required to be

reported under this Act at the time of

Pl tt or died ;

(1) allows the information

recorded under subclause (I) to be

transmitted immediately to the

Commission; and

(III) allows the Commission to

post the information on the Intcrmet

immediately upon receipt; and

(ii) make a copy of software that meets

the standards promelgated under clause (i)

available to each person required to file a

designation, statement, or report in electronic

form under this Act.

(B) ADDITIONAL INFORMATION.-To

the extent feasible, the Commission shall require

vendors to include in the software developed

under the standards under subparagraph (A) the

ability for any person to file any designation,

statement, or report required under this Act in

electronic form.

provision of this Act relating to times for filing

reports, each candidate for Federal office (or that

candidate’s authorized committee) shall use

software that meets the standards promulgated

under this paragraph once such software is made

available to such candidate.

(D) REQUIRED POSTING.-The Commis-

sion shall, as soon as practicable, post on the

48a

Internet any information received under this

paragraph.

SEC. 307. MODIFICATION OF CONTRIBUTION

LIMITS.

(a) INCREASE IN INDIVIDUAL LIMITS FOR

CERTAIN CONTRIBUTIONS.-—Section 315(a)(1) of the

Federal Election Campaign Act of 1971 (2 U.S.C.

441a(a)(1)) is amended—

2 USCA § 44la

(1) in subparagraph (A), by striking “$1,000” and

inserting “$2,000”; and

(2) in subparagraph (B), by striking “$20,000” and

inserting “$25,000”.

(b) INCREASE IN ANNUAL AGGREGATE LIMIT

ON INDIVIDUAL CONTRIBUTIONS.-Section 3 15(a)(3)

of the Federal Election Campaign Act of 1971 (2 U.S.C.

441a(a)(3)) is amended to read as follows:

(3) During the period which begins on January | of

an odd-numbered year and ends on December 31 of the

next even-numbered year, no individual may make

contributions aggregating more than—

(A) $37,500, in the case of contributions to

candidates and the authorized committees of

candidates;

(B) $57,500, in the case of any other

contributions, of which not more than $37,500

may be attributable to contributions to political

committees which are not political committees of

national political parties.

COMMITTEE LIMIT.-Section 315(h) of the Federal

Election Campaign Act of 1971 (2 U.S.C. 441a(h)) is

amended by striking “$17,500” and inserting “$35,000”.

49a

(d) INDEXING OF CONTRIBUTION LIMITS.-Section

315(c) of the Federal Election Campaign Act of 1971 (2

U.S.C. 441la(c)) is amended-

(1) in paragraph (1)-

(A) by striking the second and third

sentences;

(B) by imserting “(A)” before “At the

beginning”, and

(B) Except as provided in subparagraph (C), in any

calendar year after 2002-

(i) limitation established by subsections

(a1 A), (a)(1)(B), (a3), (0), (@), 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.

(a)(1 (A), (a)(1)(B), (a3), 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) im 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

50a

(ii) for purposes of subsections (a)(1)(A),

(a)(1)(B), (a3), and (h), calendar year 2001”.

2 USCA § 441a NOTE

(e) EFFECTIVE DATE.—The amendments made by

this section shall apply with respect to contributions made on

or after January 1, 2003.

Sla

SEC. 308. DONATIONS TO PRESIDENTIAL

INAUGURAL COMMITTEE.

(a) IN GENERAL.-Chapter 5 of title 36, United

States Code, is amended by-—

36 USCA § 510

36 USCA § 511

(1) redesignating section 510 as section 511; and

36 USCA § 510

(2) inserting after section 509 the following:

§ 510. Disclosure of and prohibition on certain donations

(a) IN GENERAL.-A committee shall not be

considered to be the Inaugural Committee for purposes of

this chapter unless the committee agrees to, and meets, the

requirements of subsections (b) and (c).

(b) DISCLOSURE.-

(1) IN GENERAL.-Not later than the date that is

90 days after the date of the Presidential inaugural

ceremony, the committee shall file a report with the

Federal Election Commission disclosing any donation of

money or anything of value made to the committee in an

aggregate amount equal to or greater than $200.

(2) CONTENTS OF REPORT.-A report filed

under paragraph (1) shall contain—

(A) the amount of the donation;

(B) the date the donation is received; and

making the donation.

any donation from a foreign national (as defined in section

319(b) of the Federal Election Campaign Act of 1971 (2

US.C. 441e(b))).

2 USCA § 434

52a

(b) REPORTS MADE AVAILABLE BY FEC.-

Section 304 of the Federal Election Campaign Act of 1971

(2 U.S.C. 434), as amended by sections 103, 201, and 212 is

amended by adding at the end the following:

(h) REPORTS FROM INAUGURAL COM-

MITTEES.-—The Federal Election Commission shall make

any report filed by an Inaugural Committee under section

510 of title 36, United States Code, accessible to the public at

the offices of the Commission and on the Internet not later

than 48 hours after the report is received by the Commission.

SEC. 309. PROHIBITION ON FRAUDULENT

SOLICITATION OF FUNDS.

Section 322 of the Federal Election Campaign Act of

1971 (2 U.S.C. 441h) is amended-

2 USCA § 441h

(1) by imserting “(a) IN GENERAL.”- before

“No person”; and

(2) by adding at the end the following:

(b) FRAUDULENT SOLICITATION OF FUNDS.—No

person shal]—

(1) fraudulently misrepresent the person as

speaking, writing, or otherwise acting for or on behalf of

any candidate or political party or employee or agent

thereof for the purpose of soliciting contributions or

donations; or

(2) willfully and knowingly participate in or

conspire to participate in any plan, scheme, or design to

violate paragraph (1).

2 USCA § 431 NOTE

SEC. 310. STUDY AND REPORT ON CLEAN MONEY

CLEAN ELECTIONS LAWS.

(a) CLEAN MONEY CLEAN ELECTIONS

DEFINED.-In this section, the term “clean money clean

elecuons” means funds received under State laws that

53a

provide in whole or in part for the public financing of

election campaigns.

(b) STUDY .-

(1) IN GENERAL.-The Comptroller General shall

conduct a study of the clean money clean elections of

(2) MATTERS STUDIED.-

(A) STATISTICS ON CLEAN MONEY

CLEAN ELECTIONS CANDIDATES.-The

Comptroller General shall determine—

(i) the number of candidates who have

chosen to run for public office with clean

money clean elections including—

(I) the office for which they were

candidates;

(Il) whether the candidate was an

incumbent or a challenger; and

(Il) whether the candidate was

successful in the candidate’s bid for public

office; and

(ii) the number of races in which at least

one candidate ran an election with clean

money clean elections.

(B) EFFECTS OF CLEAN MONEY

CLEAN ELECTIONS.—The Comptroller General

of the United States shall describe the effects of

public financing under the clean money clean

elections laws on the 2000 elections in Arizona

and Maine.

enactment of this Act, the Comptroller General of the United

54a

States shal] submit a report to the Congress detailing the

results of the study conducted under subsection (b).

SEC. 311. CLARITY STANDARDS FOR IDENTI-

FICATION OF SPONSORS OF

ELECTION-RELATED ADVERTISING.

Section 318 of the Federal Election Campaign Act of

1971 (2 U.S.C. 441d) is amended—

(1) in subsection (a)}-

2 USCA § 441d

(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’,

a een

2 USCA § 441d

(B) in paragraph (3), by inserting “and

permanent street address, telephone number,

or World Wide Web address” after “name”;

and

2 USCA § 441d

(2) by adding at the end the following:

55a

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) ADDITIONAL REQUIREMENTS.-

(1) COMMUNICATIONS BY CANDIDATES

OR AUTHORIZED PERSONS.-

(A) BY RADIO-—Any communication

described in paragraph (1) or (2) of subsection

(a) which is transmitted through radio shall

include, in addition to the requirements of that

paragraph, an audio statement by the

states that the candidate has approved the

communication.

(B) BY TELEVISION.-Any communi-

cation described in paragraph (1) or (2) of

subsection (a) which is transmitted through

television shall include, in addition to the

requirements of that paragraph, a statement

that identifies the candidate and states that the

56a

(II) the candidate in voice-over,

accompanied by a clearly identifiable

photographic or similar image of the

candidate; and

(ii) shall also appear in writing 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.

(2) COMMUNICATIONS BY OTHERS.—Any

communication described in paragraph (3) of

subsection (a) which is transmitted through radio or

television shall include, in addition to the

requirements of that paragraph, in a clearly spoken

manner, the following audio statement: “ is

responsible for the content of this advertising.” (with

the blank to be filled in with the name of tke political

committee or other person paying for the

communication and the name of any connected

organization of the payor). If transmitted through

television, the statement shall be conveyed by an

unobscured, full- screen view of a representative of

the political committee or other person making the

statement, or by a representative of such political

committee or other person in voice-over, and 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.

SEC. 312. INCREASE IN PENALTIES.

2 USCA § 437g

(a) IN GENERAL.—Subparagraph (A) of section

309(d)(1) of the Federal Election Campaign Act of 1971

(2 U.S.C. 437g(d)(1(A)) is amended to read as follows:

57a

(A) Any person who knowingly and willfully

commits a violation of any provision of this Act which

involves the making, receiving, or reporting of any

contribution, donation, or expenditure—

(i) aggregating $25,000 or more during a

calendar year shall be fined under title 18, United

States Code, or imprisoned for not more than 5

years, or both; or

(11) aggregating $2,000 or more (but less

than $25,000) during a calendar year shall be

fined under such title, or imprisoned for not more

than | year, or both.

2 USCA § 437g NOTE

(b) EFFECTIVE DATE.-The amendment made by

this section shall apply to violations occurring on or after the

effective date of this Act.

SEC. 313. STATUTE OF LIMITATIONS.

2 USCA § 455

(a) INGENERAL.-Section 406(a) of the Federal

Election Campaign Act of 1971 (2 U.S.C. 455(a)) is

amended by stnking “3” and inserting “5”.

2 USCA § 455 NOTE

(b) EFFECTIVE DATE.-The amendment made by this

section shall apply to violations occurring on or after the

effective date of this Act.

28 USCA § 994 NOTE

SEC. 314. SENTENCING GUIDELINES.

(a) INGENERAL.-The United States Sentencing

Commission shall—

(1) promulgate a guideline, or amend an existing

guideline under section 994 of title 28, United States

Code, in accordance with paragraph (2), for penalties

for violations of the Federal Election Campaign Act

of 1971 and related election laws; and

58a

(2) submit to Congress an explanation of any

guidelines promulgated under paragraph (1) and any

legislative or administrative recommendations

regarding enforcement of the Federal Election

Campaign Act of 1971 and related election laws.

(b) CONSIDERATIONS.-—The Commission shall

provide guidelines under subsection (a) taking into account

the following considerations:

(1) Ensure that the sentencing guidelines and

policy statements reflect the serious nature of such

violations and the need for aggressive and

appropriate law enforcement action to prevent such

violations.

(2) Provide a sentencing enhancement for any

person convicted of such violation if such violation

involves—

(A) a contribution, donation, or expenditure

from a foreign source;

(B) a large number of illegal transactions;

contributions, donations, or expenditures;

(D) the receipt or disbursement of

governmental funds; and

(E) an intent to achieve a benefit from the

Federal Government.

(3) Assure reasonable consistency with other

relevant directives and guidelines of the

Commission.

(4) Account for aggravating or mitigating

circumstances that might justify exceptions,

including circumstances for which the sentencing

59a

guidelines currently provide sentencing

enhancements.

(5) Assure the guidelines adequately meet the

purposes of sentencing under section 3553(a)(2) of

title 18, United States Code.

AUTHORITY TO PROMULGATE GUIDELINES.—

(1) EFFECTIVE DATE.—Notwithstanding

section 402, the United States Sentencing

Commission shall promulgate guidelines under this

section not later than the later of-—

(A) 90 days after the effective date of this

Act; or

(B) 90 days after the date on which at least a

majority of the members of the Commission are

appointed and holding office.

(2) EMERGENCY AUTHORITY TO

PROMULGATE GUIDELINES.-The Commission

shall promulgate guidelines under this section in

accordance with the procedures set forth in section

21(a) of the Sentencing Reform Act of 1987, as

though the authority under such Act has not expired.

SEC. 315. INCREASE IN PENALTIES IMPOSED FOR

VIOLATIONS OF CONDUIT CONTRIBU-

TION BAN.

(a) INCREASE IN CIVIL MONEY PENALTY FOR

KNOWING AND WILLFUL VIOLATIONS.-—Section

309(a) of the Federal Election Campaign Act of 1971

(2 U.S.C. 437g(a)) is amended—

2 USCA § 437g

(1) in paragraph (5)(B), by inserting before

the period at the end the following: “(or, in the

case of a violation of section 320, which is not

60a

less than 300 percent of the amount involved in

the violation and is not more than the greater of

$50,000 or 1,000 percent of the amount involved

in the violation)”; and

(2) in paragraph (6)(C), by inserting before

the period at the end the following: “(or, in the

case of a violation of section 320, which is not

less than 300 percent of the amount involved in

the violation and is not more than the greater of

$50,000 or 1,000 percent of the amount involved

in the violation)”.

(b) INCREASE IN CRIMINAL PENALTY .-Section

309(d)(1) or such Act (2 U.S.C. 437g(d)(1)) is amended by

adding at the end the following new subparagraph:

(D) Any person who knowingly and

willfully commits a violation of section 320

involving an amount aggregating more than

$10,000 during a calendar year shall be-

(i) imprisoned for not more than 2

years if the amount is less than $25,000

(and subject to impnsonment under

subparagraph (A) if the amount is $25,000

or more); -

(ii) fined not less than 300 percent of

the amount involved in the violation and

not more than the greater of-

(T) $50,000; or

(II) 1,000 percent of the

amount involved in the violation; or

(iii) both imprisoned under clause (i)

and fined under clause (ii).

2 USCA § 437g NOTE

6la

this section shall apply with respect to violations occurring

on or after the effective date of this Act.

2 USCA § 44la

SEC. 316. RESTRICTION ON INCREASED CON-

TRIBUTION LIMITS BY TAKING INTO

ACCOUNT CANDIDATE’S AVAILABLE

FUNDS.

Section 315(i)(1) of the Federal Election Campaign

Act of 1971 (2 U.S.C. 441a(i)(1)), as added by this Act, is

amended by adding at the end the following:

(E) SPECIAL RULE FOR CANDIDATE’S

CAMPAIGN FUNDS.-

(i) IN GENERAL.—For purposes of

determining the aggregate amount of

expenditures from personal funds under

subparagraph (D)(ii), such amount shall

include the gross receipts advantage of the

candidate’s authorized committee.

(ii) GROSS RECEIPTS

ADVANTAGE.—For purposes of clause (i),

the term “gross receipts advantage” means

the excess, if any, of—

(I) the aggregate amount of 50

percent of gross receipts of a

candidate's authorized committee

during any election cycle (not

including contributions from personal

funds of the candidate) that may be

expended in connection with the

| election, as determined on June 30

| and December 31 of the year

preceding the year in which a general

election is held, over

62a

(II) the aggregate amount of 50

percent of gross receipts of the

opposing candidate’s authorized

committee during any election cycle

(not including contributions from

personal funds of the candidate) that

may be expended in connection with

the election, as determined on June 30

and December 31 of the year

preceding the year in which a general

election is held.

2 USCA § 44le

SEC. 317. CLARIFICATION OF RIGHT OF

NATIONALS OF THE UNITED

STATES TO MAKE POLITICAL

CONTRIBUTIONS.

Section 319(b)(2) of the Federal Election Campaign

Act of 1971 (2 U.S.C. 441e(b)(2)) is amended by inserting

after “United States” the following: “or a national of the

United States (as defined in section 101(a)(22) of the

Immigration and Nationality Act)”.

2 USCA § 441k

SEC. 318. 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 101, is

further amended by adding at the end the following new

section:

PROHIBITION OF CONTRIBUTIONS BY MINORS

SEC. 324. An individual who is 17 years old or

younger shall] not make a contribution to a candidate or a

contnbution or donation to a committee of a political party.

SEC. 319. MODIFICATION OF INDIVIDUAL

CONTRIBUTION LIMITS FOR HOUSE

CANDIDATES IN RESPONSE TO

2 63a

EXPENDITURES FROM PERSONAL

FUNDS.

2 USCA § 44la-1

(a) INCREASED LIMITS.-Title I of the Federal

Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is

amended by inserting after section 315 the following new

section:

= MODIFICATION OF CERTAIN LIMITS FOR HOUSE

CANDIDATES IN RESPONSE TO PERSONAL FUND

EXPENDITURES OF OPPONENTS

SEC. 315A. (a) AVAILABILITY OF INCREASED

LIMIT.-

(1) IN GENERAL.-Subject to paragraph (3), if the

opposition personal fends amount with respect to a

candidate for election to the office of Representative in,

or Delegate or Resident Commissioner to, the Congress

exceeds $350,000—

(A) the limit under subsection (a)(1 A) with

respect to the candidate shall be tnpled;

(B) the limit under subsection (a)(3) shall

not apply with respect to any contribution made

with respect to the candidate if the contribution is

subparagraph (A) during a period in which the

candidate may accept such a contribution; and

respect to any expenditure by a State or national

committee of a political party on behalf of the

candidate shall not apply.

(2) DETERMINATION OF OPPOSITION

PERSONAL FUNDS AMOUNT.-

(A) IN GENERAL.-The opposition personal

funds amount is an amount equal to the excess (if

any) of-

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(i) the greatest aggregate amount of

expenditures from personal funds (as

defined in subsection (b)(1)) that an

opposing candidate in the same election

makes; over

(ii) the aggregate amount of

expenditures from personal funds made by

the candidate with respect to the election.

(B) SPECIAL RULE FOR CANDIDATE’S

CAMPAIGN FUNDS.-

(i) IN GENERAL.-For purposes of

determining the aggregate amount of

expenditures from personal funds under

subparagraph (A), such amount shall

include the gross receipts advantage of the

candidate’s authonzed committee.

(u) GROSS RECEIPTS ADVAN-

TAGE.—For purposes of clause (i), the term

“gross receipts advantage” the

excess, if any, of—

(I) the aggregate amount of 50

percent of gross receipts of a

candidate’s authorized committee

during any election cycle (not

funds of the candidate) that may be

expended im connection with the

election, as determined on June 30

and December 31 of the year

preceding the year in which a general

election is held, over

and December 31 of the year

preceding the year in which a general

election is held.

(3) TIME TO ACCEPT CONTRIBUTIONS UNDER

INCREASED LIMIT.-

(A) IN GENERAL.-Subject to subparagraph

(B), a candidate and the candidate’s authorized

committee shal] not accept any contribution, and

a party committee shall not make any

paragraph (1)}-

(i) until the candidate has received

notification of the opposition personal

funds amount under subsection (b)(1); and

(ii) to the extent that such contribution,

when added to the aggregate amount of

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amount of such increased limit is attributable to

such an opposing candidate.

(4) DISPOSAL OF EXCESS CONTRIBUTIONS.-

(A) IN GENERAL.-The aggregate amount

of contributions accepted by a candidate or a

candidate's authonzed committee under the

increased limit under paragraph (1) and not

otherwise expended in connection with the

election with respect to which such contributions

relate shall, not later than 50 days after the date

of such election, be used in the manner descnbed

in subparagraph (B).

(B) RETURN TO CONTRIBUTORS.-A

candidate or a candidate's authonzed committee

shal! return the excess contribution to the person

who made the contribution.

(b) NOTIFICATION OF EXPENDITURES FROM

PERSONAL FUNDS.-

(1) IN GENERAL.-

(A) DEFINITION OF EXPENDITURE

FROM PERSONAL FUNDS.-In this paragraph,

the term “expenditure from personal funds”

means—

(1) an expenditure made by a candidate

using persona! funds, and

(uu) a contribution or loan made by a

candidate using personal funds or a loan

secured using such funds to the candidate’s

(B) DECLARATION OF INTENT.—Not later

than the date that is 15 days after the date on which an

individual becomes a candidate for the office of

Representative in, or Delegate or Resident

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Commissioner to, the Congress, the candidate shall file a

declaration stating the total amount of expenditures from

personal funds that the candidate intends to make, or to

obligate to make, with respect to the election that will

exceed $350,000.

24 hours after a candidaie described in subparagraph (B)

makes or obligates to make an aggregate amount of

expenditures from persona! funds in excess of $350,000

in connection with any election, the candidate shall file a

notification.

(D) ADDITIONAL NOTIFICATION.—Affter a

candidate files an initial notification under subparagraph

(C), the candidate shall file an additional notification

each time expenditures from personal funds are made or

obligated to be made im an aggregate amount that

exceeds $10,000. Such notification shall be filed not

iater than 24 hours after the expenditure is made.

(E) CONTENTS.-A notification under

subparagraph (C) or (D) shall include—

(i) the name of the candidate and the

office sought by the candidate;

(ii) the date and amount of each

expenditure, and

(iii) the total amount of expenditures

from persona] funds that the candidate has

made, or obligated to make, with respect to an

election as of the date of the expenditure that

is the subyect of the notification.

(F) PLACE OF FILING.—Each declaration or

notification required to be filed by a candidate under

subparagraph (C), (D), or (E) shall be filed with-

(1) the Commission, and

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(ii) each candidate in the same election

and the national party of each such candidate.

(2) NOTIFICATION OF DISPOSAL OF EXCESS

CONTRIBUTIONS.-In the next regularly scheduled

report after the date of the election for which a candidate

seeks nomination for election to, or election to, Federal

office, the candidate or the candidate’s authorized

committee shall submit to the Commission a report

indicating the source and amount of any excess

contributions (as determined under subsection (a)) and

the manner in which the candidate or the candidate’s

authonzed committee used such funds.

(3) ENFORCEMENT.—For provisions providing for

the enforcement of the reporting requirements under this

2 USCA § 44la

(b) CONFORMING AMENDMENT.-Section

315(a)(1) of the Federal Election Campaign Act of 1971

(2 U.S.C. 441a), as amended by section 304(a), is amended

by striking “subsection (i),” and inserting “subsection (i) and

section 315A,.

TITLE I[V-SEVERABILITY; EFFECTIVE DATE

2 USCA § 454 NOTE

SEC. 401. 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.

2 USCA § 431 NOTE

SEC. 402. EFFECTIVE DATES AND REGULATIONS.

(a) GENERAL EFFECTIVE DATE.-

(1) IN GENERAL.—Except as provided in the

succeeding provisions of this section, the effective date

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of this Act, and the amendments made by this Act, is

November 6, 2002.

(2) MODIFICATION OF CONTRIBUTION

LIMITS.—The amendments made by—

(A) section 102 shall apply with respect to

SS ee See amy 5 2003;

and

(B) section 307 shall take effect as provided

in subsection (e) of such section.

(3) SEVERABILITY; EFFECTIVE DATES AND

REGULATIONS; JUDICIAL REVIEW.-Title IV shall

take effect on the date of enactment of this Act.

(4) PROVISIONS NOT TO APPLY TO RUNOFF

ELECTIONS.-Section 323(b) of the Federal Election

Campaign Act of 1971 (as added by section 101(a)),

section 103(a), title Il, sections 304 (including section

315(j) of Federal Election ey Act of 1971, as

added by section 304(a)(2)), 305 (notwithstanding

subsection (c) of such section), 311, 316, 318, and 319,

and title V (and the amendments made by such sections

and titles) shall take effect on November 6, 2002, but

shall not apply with respect to runoff elections, recounts,

or election contests resulting from elections held prior to

such date.

(b) SOFT MONEY OF NATIONAL POLITICAL

PARTIES.-

(1) IN GENERAL.—Except for subsection (b) of such

section, section 323 of the Federal Election

Act of 1971 (as added by section 101(a)) shall take

effect on November 6, 2002.

(2) TRANSITIONAL RULES FOR’ THE

SPENDING OF SOFT MONEY OF NATIONAL

POLITICAL PARTIES.—

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(A) IN GENERAL.-Notwithstanding section

323(a) of the Federal Election Campaign Act of

1971 (as added by section 101(a)), if a national

committee of a political party described in such

section (including any person who is subject to

such section under paragraph (2) of such

section), has received funds described in such

section prior to November 6, 2002, the rules

described in subparagraph (B) shall apply with

respect to the spending of the amount of such

funds in the possession of such committee as of

such date.

(B) USE OF EXCESS SOFT MONEY

FUNDS.-—

(i) IN GENERAL.-Subject to clauses (ii)

and (iii), the national committee of a political

party may use the amount described in

subparagraph (A) prior to January 1, 2003,

solely for the purpose of-

(I) retiring outstanding debts or

obligations that were incurred solely in

connection with an election held prior to

November 6, 2002; or

(II) paying expenses or retiring

outstanding debts or paying for obligations

that were incurred solely in connection

with any runoff election, recount, or

election contest resulting from an election

held prior to November 6, 2002.

(ii) PROHIBITION ON USING SOFT

MONEY FOR HARD MONEY EXPENSES,

DEBTS, AND OBLIGATIONS.~—A national

committee of a political party may not use the

amount described in subparagraph (A) for any

ees Se ee SR OS

Tila

expenditure (as defined in section 301(9) of

the Federal Election Campaign Act of 1971 (2

U.S.C. 431(9))) or for retiring outstanding

debts or obligations that were incurred for

such an expenditure.

(iii) PROHIBITION OF BUILDING FUND

USES.—A national committee of a political

party may not use the amount described in

subparagraph (A) for activities to defray the

costs of the construction or purchase of any

office building or facility.

(1) IN GENERAL.—Except as provided in paragraph

(2), the Federal Election Commission shall promulgate

regulations to carry out this Act and the amendments

made by this Act that are under the Commission’s

jurisdiction not later than 270 days after the date of

enactment of this Act.

(2) SOFT MONEY OF POLITICAL PARTIES.-Not

later than 90 days after the date of enactment of this Act,

the Federal Election Commission shall promulgate

regulations to carry out title I of this Act and the

amendments made by such title.

~ 2 USCA § 437h NOTE

SEC. 403. JUDICIAL REVIEW.

(a) SPECIAL RULES FOR ACTIONS BROUGHT ON

CONSTITUTIONAL GROUNDS.-If any action is brought

for declaratory or injunctive relief to challenge the

constitutionality of any provision of this Act or any

amendment made by this Act, the following rules shall apply:

(1) The action shall be filed in the United States

District Court for the District of Columbia and shall be

heard by a 3-judge court convened pursuant to section

2284 of title 28, United States Code.

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(2) A copy of the complaint shall be delivered

promptly to the Clerk of the House of Representatives

and the Secretary of the Senate.

(3) A final decision in the action shall be reviewable

only by appeal directly to the Supreme Court of the

United States. Such appeal shall be taken by the filing of

a notice of appeal within 10 days, and the filing of a

jurisdictional statement within 30 days, of the entry of

the final decision.

(4) It shall be the duty of the United States District

Court for the District of Columbia and the Supreme

Court of the United States to advance on the docket and

to expedite to the greatest possible extent the disposition

of the action and appeal.

(b) INTERVENTION BY MEMBERS OF

CONGRESS.-In any action in which the constitutionality of

any provision of this Act or any amendment made by this Act

is raised (including but not limited to an action described in

subsection (a)), any member of the House of Representatives

(including a Delegate or Resident Commissioner to the

Congress) or Senate shall have the right to intervene either in

support of or opposition to the position of a party to the case

regarding the constitutionality of the provision or

amendment. To avoid duplication of efforts and reduce the

burdens placed on the parties to the action, the court in any

such action may make such orders as it considers necessary,

including orders to require intervenors taking similar

positions to file joint papers or to be represented by a single

attorney at oral argument.

Any Member of Congress may bring an action, subject to the

special rules described in subsection (a), for declaratory or

injunctive relief to challenge the constitutionality of any

provision of this Act or any amendment made by this Act.

(d) APPLICABILITY —

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(1) INITIAL CLAIMS.—With respect to any action

initially filed on or before December 31, 2006, the

provisions of subsection (a) shall apply with respect to

each action described in such section.

(2) SUBSEQUENT ACTIONS.-—With respect to any

action initially filed after December 31, 2006, the

provisions of subsection (a) shall not apply to any action

described in such section unless the person filing such

action elects such provisions to apply to the action.

TITLE V-ADDITIONAL DISCLOSURE PROVISIONS

2 USCA § 434

SEC. 501. INTERNET ACCESS TO RECORDS.

Section 304(a)(11)(B) of the Federal Election

Campaign Act of 1971 (2 U.S.C. 434(a)(11)(B)) is amended

to read as follows:

(B) The Commission shall make a designation,

statement, report, or notification that is filed with the

Commission under this Act available for inspection by the

public in the offices of the Commission and accessible to the

public on the Internet not later than 48 hours (or not later

than 24 hours in the case of a designation, statement, report,

or notification filed electronically) after receipt by the

Commission.

2 USCA § 438a

SEC. 502. MAINTENANCE OF WEBSITE OF

ELECTION REPORTS.

(a) IN GENERAL.-The Federal Election

Commission shall maintain a central site on the Internet to

make accessible to the public all publicly available election-

related reports and information.

(b) ELECTION-RELATED REPORT.-—In this

section, the term “election-related report” means any report,

designation, or statement required to be filed under the

Federal Election Campaign Act of 1971.

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Any Federal executive agency receiving election-related

information which that agency is required by law to publicly

disclose shall cooperate and coordinate with the Federal

Election Commission to make such report available through,

or for posting on, the site of the Federal Election

Commission in a timely manner.

SEC. 503. ADDITIONAL DISCLOSURE REPORTS.

2 USCA § 434

(a) PRINCIPAL CAMPAIGN COMMITTEES.-—

Section 304(a)(2)(B) of the Federal Election Campaign Act

of 1971 is amended by striking “the following reports” and

all that follows through the period and inserting “the

treasurer shall file quarterly reports, which shall be filed not

later than the 15th day after the last day of each calendar

quarter, and which shall be complete as of the last day of

each calendar quarter, except that the report for the quarter

ending December 31 shall be filed not later than January 31

of the following calendar year.”

(b) NATIONAL COMMITTEE OF A POLITICAL

PARTY.—Section 304(a)(4) of such Act (2 U.S.C. 434(a)(4))

is amended by adding at the end the following flush sentence:

“Notwithstanding the preceding sentence, a national

committee of a political party shall file the reports required

under subparagraph (B).”

47 USCA § 315

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SEC. 504. PUBLIC ACCESS TO BROADCASTING

RECORDS.

Section 315 of the Communications Act of 1934 (47

U.S.C. 315), as amended by this Act, is amended by

redesignating subsections (e) and (f) as subsections (f) and

(g), respectively, and inserting after subsection (d) the

following:

(e) POLITICAL RECORD.-

(1) IN GENERAL.-A licensee shall maintain, and

make available for public inspection, a complete record

of a request to purchase broadcast time that-

(A) is made by or on behalf of a legally

qualified candidate for public office; or

(B) communicates a message relating .o any

political matter of national importance,

including—

(i) a legally qualified candidate;

(ii) any election to Federal office; or

(ili) a national legislative issue of public

importance.

(2) CONTENTS OF RECORD.-A record maintained

under paragraph (1) shall contain information regarding—

(A) whether the request to purchase

broadcast time is accepted or rejected by the

licensee;

(B) the rate charged for the broadcast time;

communication is aired;

(D) the class of time that is purchased;

(E) the name of the candidate to which the

communication refers and the office to which the

_ a

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candidate is seeking election, the election to

which the communication refers, or the issue to

which the communication refers (as applicable);

(F) in the case of a request made by, or on

behalf of, a candidate, the name of the candidate,

the authorized committee of the candidate, and

the treasurer of such committee; and

(G) in the case of any other request, the

name of the person purchasing the time, the

name, address, and phone number of a contact

| person for such person, and a list of the chief

executive officers or members of the executive

committee or of the board of directors of such

person.

(3) TIME TO MAINTAIN FILE.-The information

required under this subsection shall be placed in a

political file as soon as possible and shall be retained by

* the licensee for a period of not less than 2 years.

Approved March 27, 2002.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.