[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [S. 94 Introduced in Senate (IS)] 103d CONGRESS 1st Session S. 94 To provide a comprehensive congressional campaign financing reform to encourage grassroots campaign giving, lessen the role of special economic interests, prohibit the use of soft money, discourage candidate expenditures of personal wealth, and otherwise restore greater competitive balance to the congressional electoral process. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES January 21 (legislative day, January 5), 1993 Mr. Domenici introduced the following bill; which was read twice and referred to the Committee on Rules and Administration _______________________________________________________________________ A BILL To provide a comprehensive congressional campaign financing reform to encourage grassroots campaign giving, lessen the role of special economic interests, prohibit the use of soft money, discourage candidate expenditures of personal wealth, and otherwise restore greater competitive balance to the congressional electoral process. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be known as the ``Grassroots Campaigning and Election Reform Act of 1993''. reliance on in-state contributions Sec. 2. (a) Chapter 2, section 441 of title 2, United States Code, is amended by inserting a new subsection (h), and relettering subsequent sections appropriately: ``(h)(1) It shall be unlawful for any candidate for the Senate of the United States or the House of Representatives of the United States to solicit or accept any funds for the purposes of election to the Senate or the House of Representatives from any individual, organization, or political action committee that does not reside or have its headquarters within the State from which such candidate seeks election. ``(2) Each contributor to a candidate under the terms of paragraph (1) of this subsection shall provide evidence of the State of residence of such contributor, pursuant to limits described in paragraph (3) of this subsection. ``(3)(A) For the purpose of determining the accuracy of any declaration of residence by a contributor, each candidate for the Congress of the United States shall maintain records of the home State of each contributor. ``(B) It shall be presumed that a contributor is a resident of the candidate's State if the contribution is made in the form of a check drawn on a bank within such State, and if the contribution is physically presented to the candidate or his agent in such State or mailed in an envelope postmarked in such State. ``(C) For any contribution in cash in excess of $99, such name and address shall be accompanied by a notarized statement attesting to the accuracy of such name and address. ``(D) Notwithstanding the provisions of subparagraph (B) of this subsection, any contribution in excess of $499 shall be accompanied by a notarized statement attesting to the accuracy of the name and address of the contributor. ``(E) Any contribution from a political party to a candidate shall be accompanied by a notarized statement as to the residence of the contributors of such funds. ``(4) Any contribution that fails to meet the criteria described in paragraph (3) of this subsection shall, within ten days of receipt, be returned to the contributor, if known, or given to a nonpolitical health or educational charitable organization of the candidate's choice within the candidate's State. ``(5) Each violation of this section shall subject the candidate to a civil penalty of $1,000''. (b)(1) As of January 31, 1993, each Member of the Senate of the United States elected in 1992 and each Member of the House of Representatives of the United States shall rebate to each Member's contributors, on a pro rata basis, all campaign funds retained as of January 1, 1993, or donate such funds to a nonpolitical health or educational charitable organization of the Member's choice within the Member's State. (2) As of January 31, 1993, each Member of the Senate of the United States who was not a candidate for election in 1992 shall rebate to each Member's contributors, on a pro rata basis, all campaign funds raised as of such date, or donate such funds to a nonpolitical health or educational charitable organization of the Member's choice within the Member's State. (3) Any funds not rebated or contributed pursuant to this subsection shall subject the Member to a civil penalty equal to twice the sums involved. limitations on political action committees Sec. 3. (a) Chapter 2, section 441b of title 2, United States Code, is amended by deleting all of the text following subsection (b)(2)(B). (b) Chapter 2, section 441a(a)(2) of title 2, United States Code, is amended by striking out ``5,000'' and inserting in lieu thereof ``500'' in subsection (A), and by placing a period after the word ``committee'' and striking all that follows in subsection (C). (c) Chapter 2, section 441b of title 2, United States Code, is amended by inserting the following as a new subparagraph ``(C)'': ``(c) It is unlawful for any bank, labor organization, or corporation referred to in subparagraph (a) of this section to make any contribution or expenditure for the establishment, administration, or solicitation of contributions to any political committee.''. use of personal wealth for campaign purposes Sec. 4. Chapter 2, section 441 of title 2, United States Code, is amended by inserting a new subsection (i), and relettering subsequent sections appropriately: ``(i)(1)(A) Within fifteen days after a candidate qualifies for the ballot, under applicable State law, such candidate shall file with the Commission, a declaration stating whether or not such candidate intends to expend, in the aggregate: ``(i) At least $250,000, if a candidate for the Senate of the United States, or ``(ii) At least $100,000, if a candidate for the House of Representatives of the United States, from his personal funds, and the funds of his immediate family, and incur personal loans in excess of such amount, in connection with his campaign for such office. ``(B) For purposes of this subsection, `immediate family' means a candidate's spouse, and any child, stepchild, parent, grandparent, brother, sister, half-brother, or half-sister of the candidate, and the spouse of any such person and any child, stepchild, parent, grandparent, brother, half-brother, sister, of half-sister of the candidate's spouse, and the spouse of any such person. ``(C) The statement required by this subsection shall be in such form, and shall contain such information, as the Commission may, by regulation, require. ``(2) Notwithstanding any other provision of law, in any election in which a candidate declares that he intends to expend more than the limits described in subparagraph (A) of paragraph (1), or does expend and incur loans in excess of such limits, or fails to file the declaration required by this subsection, the limitations on contributions in subsection (h) of this section, as they apply to all other candidates in such election in such State, shall be waived and the limitations on contributions in subsection (a) of this section, as they apply to all other individuals running for such office, shall be increased for such election as follows: ``(A) The limitations provided in subsection (a)(1)(A) shall be increased to an amount equal to 1000 per centum of such limitation, and ``(B) The limitations provided in subsection (a)(3) shall be increased to an amount equal to 150 percentum of such limitation, but only to the extent that contributions above such limitation are made to candidates affected by the increased levels provided in subparagraph (A). ``(3) If the limitations described in paragraph (2) of this subsection are increased pursuant to paragraph (2) for a convention or a primary election, as they relate to an individual candidate, and such individual candidate is not a candidate in any subsequent election in such campaign, including the general election, the provisions of paragraph (2) shall no longer apply. ``(4) Any candidate who-- ``(A) declares, pursuant to subparagraph (1) of this paragraph that he does not intend to expend, in the aggregate, more than the limits described in subparagraph (1)(A); and ``(B) subsequently does expend and incur loans in excess of such amounts, or intends to expend and incur loans in excess of such amounts, such candidate shall notify and file an amended declaration with the Commission and shall notify all other candidates for such office within twenty-four hours after changing such declaration or exceeding such limits, whichever first occurs, by sending such notice by certified mail, return receipt requested. Failure to so notify and so file shall subject such candidate to a civil penalty equal to twice the fund so expended. ``(5) Any candidate who incurs personal loans in connection with his campaign under this Act shall not repay, either directly or indirectly, such loans from any contributions made to such candidate or any authorized committee of such candidate, if such contribution was made following the date of such election. ``(6) Notwithstanding any other provision of law, no candidate under this title may make expenditures from his personal funds or the personal funds of his immediate family, or incur personal loans in connection with his campaign for election to such office at any time after ninety days before the date of such election, or twenty-four hours after the primary election for such office, whichever date shall later occur. The provisions of this paragraph shall apply to all candidates regardless of whether such candidate has reached the limits provided in paragraph (1) of this subsection. Violation of this paragraph shall subject such violator to a civil penalty three times the funds so expended. ``(7) The Commission shall take such action as it deems necessary under the enforcement provisions of this Act to assure compliance with the provisions of this subsection.''. soft money Sec. 5. (a) At the appropriate place in the Federal Election Campaign Act of 1971 (2 U.S.C. 441), insert the following new section: ``( ) (A) Any amount solicited, received or spent by a national, State, or local committee of a political party, directly or indirectly, shall be subject to the provisions of this Act, if such amount is solicited, received, or spent in connection with a Federal election. No part of such amount may be allocated to a non-Federal account or otherwise maintained in, or paid from, an account that is not subject to this Act. This section shall not apply to amounts described in section 431 (b)(B)(viii) of title 2. ``(B) For purposes of this section, the term ``in connection with a Federal election'' includes any activity that may affect a Federal election, including but not limited to the following: ``(1) Voter registration and get-out-the-vote activities; ``(2) Generic activities, including but not limited to any broadcasting, newspaper, magazine, billboard, mail, or similar type of communication or public advertising; ``(3) Campaign materials which identify a Federal candidate, regardless of any other candidate who may also be identified.''. severability Sec. 6. If any provision of this Act, or any amendment made by this Act, or the application of any such provision to any person or circumstance is held invalid, the validity of any other such provision, and the application of such provision to other persons and circumstances, shall not be affected thereby. <all>