Federal Election Reform Act of 1996

TABLE OF CONTENTS:

Title I: House of Representatives Election Spending Limits

and Benefits

Title II: Reduction of Special Interest Influence

Subtitle A: Provisions Relating to Political Action

Committees

Subtitle B: Provisions Relating to Soft Money of

Political Parties

Subtitle C: Soft Money of Persons Other Than Political

Parties

Subtitle D: Contributions

Subtitle E: Additional Prohibitions on Contributions

Subtitle F: Independent Expenditures

Title III: Miscellaneous Provisions

Federal Election Reform Act of 1996 - Title I: House of Representatives Election Spending Limits and Benefits - Amends the Federal Election Campaign Act of 1971 (FECA) to make candidates for election to the House of Representatives eligible to receive benefits under FECA if they declare that they will not exceed expenditure or contribution limits.

Sets forth: (1) expenditure limits (other than expenditures for legal fees) of $600,000 by a candidate and authorized committees, allowing additional expenditures for runoffs and contested primaries; (2) rules applicable when a mandatory election cycle expenditure limit is not in effect; and (3) provisions governing situations involving complying candidates running against noncomplying candidates.

Entitles eligible candidates with at least one opponent who has qualified for the ballot and who has raised in contributions or has expended ten percent of the election cycle limit to receive certain broadcast media rates and reduced postage rates.

Limits the aggregate amount of expenditures that may be made during an election cycle by an eligible candidate or authorized committee from personal funds of the candidate and members of the candidate's immediate family, or from personal loans incurred by the candidate and members of the candidate's immediate family, to five percent of the election cycle expenditure limit.

Provides for Federal Election Commission (FEC) certification of candidate eligibility.

Mandates repayment of benefits not used as required and civil penalties for excessive expenditures.

(Sec. 102) Amends the Communications Act of 1934 to: (1) modify broadcast media candidate rate requirements; and (2) regulate rates for eligible House candidates. Regulates preemption. Changes the circumstances in which a station license may be revoked for failure to allow candidate access. Conditions new licenses and renewal on agreement to abide by these provisions.

(Sec. 103) Amends Federal law to require postal rates for third class mail sent by eligible House candidates to be the same as for qualified nonprofit organizations.

(Sec. 104) Amends FECA to set contribution limits for House candidates.

(Sec. 105) Sets forth reporting requirements.

Title II: Reduction of Special Interest Influence - Subtitle A: Provisions Relating to Political Action Committees - Amends FECA to modify the circumstances in which a political committee that has supported more than one candidate may be designated as an authorized committee. Restricts the political committees that may be financed or controlled by any Federal office holder or candidate.

(Sec. 202) Limits the aggregate amount of contributions to congressional campaigns from individuals, multicandidate political committees, and citizens committees.

(Sec. 203) Limits contributions by lobbyists.

(Sec. 204) Limits financial support provided to political committees by connected organizations.

Subtitle B: Provisions Relating to Soft Money of Political Parties - Prohibits political party national committees and any entity established, financed, or controlled by them from soliciting or receiving contributions or spending funds not subject to FECA. Requires amounts spent by a political party committee that might affect a Federal election (including voter registration, get-out-the- vote activity, generic campaign activity, and communications that identify a Federal candidate) to be made from funds subject to FECA.

Prohibits political party committees from soliciting funds for or making donations to any organization that is tax exempt under section 501(c) of the Internal Revenue Code.

Prohibits Federal office holders or candidates from having certain relationships with, or taking certain actions regarding, any such tax-exempt organization.

Bars any Federal office holder or candidate and agents thereof from soliciting or receiving funds: (1) in connection with a Federal election unless the funds are subject to FECA; or (2) to be spent in connection with a non-Federal election unless the funds are not in excess of amounts permitted to Federal candidates and committees under specified FECA provisions and are not from sources prohibited by FECA for Federal elections.

(Sec. 212) Imposes or modifies political committee reporting requirements.

(Sec. 213) Removes the exclusion of office facility construction or purchase contributions from the definition of "contribution."

Subtitle C: Soft Money of Persons Other Than Political Parties - Imposes reporting requirements on election disbursements over $2,000 by a person other than a political party committee or a candidate.

Subtitle D: Contributions - Revises requirements regarding contributions made through an intermediary or conduit to prohibit any person, either directly or indirectly, from acting as a conduit or intermediary for any contribution to a candidate.

Permits joint fund raising conducted in accordance with FEC rules by two or more candidates, or fund raising for the benefit of a candidate that is conducted by another candidate, but prohibits any other person from conducting or otherwise participating in joint fund raising activities with or on behalf of any candidate.

(Sec. 232) Specifies that: (1) for purposes of provisions regarding limits on contributions and expenditures, any contribution by an individual who is another person's dependent and who has not, as of the time of such contribution, attained legal age for voting in elections to Federal office shall be treated as having been made by such other person; and (2) if such individual is the dependent of another person and such other person's spouse, the contribution shall be allocated among such persons in the manner determined by them.

Subtitle E: Additional Prohibitions on Contributions - Requires that 75 percent of contributions to a congressional campaign from individuals come from individuals legally residing in the candidate's State.

Subtitle F: Independent Expenditures - Revises the definition of "independent expenditure" to mean an expenditure that contains express advocacy and that is made without the participation or cooperation of, or without the consultation of, a candidate or a candidate's representative, but which excludes specified expenditures, such as an expenditure made by an authorized committee of a candidate for Federal office or a political committee of a political party. Declares that any expenditure that contains express advocacy and does not qualify as an independent expenditure is a contribution.

(Sec. 252) Prohibits any person from making independent expenditures totaling more than $30,000 expressly advocating the election or defeat of a clearly identified candidate in a congressional election.

Sets forth rules that apply when a mandatory independent expenditure limit is not in effect.

(Sec. 253) Imposes reporting requirements relating to independent expenditures.

(Sec. 254) Allows: (1) individuals (other than nonresident aliens) whose adjusted income tax liability for a taxable year is $5 or more to designate $5 to be paid to an Independent Expenditure Response Fund (hereafter referred to as "the Fund," established by this Act); and (2) each spouse, in the case of a joint return of husband and wife having an adjusted income tax liability of $10 or more, to designate that $10 to the Fund.

(Sec. 255) Establishes the Fund in the Treasury.

(Sec. 256) Directs the FEC to impose on each political committee a $500 registration fee.

Title III: Miscellaneous Provisions - Modifies or creates requirements regarding: (1) random audits and investigations to ensure FECA compliance; (2) the filing of certain reports for the election cycle rather than for the calendar year; and (3) administrative and judicial procedures under such Act.

(Sec. 304) Amends the Legislative Branch Appropriations Act, 1991 to replace House of Representatives mass mailings provisions with provisions establishing an Official Mass Mailing Allowance for House Members. Modifies Member mail allowance requirements and prohibits certain transfers from other Member accounts.

(Sec. 306) Declares that it is the intent of the Congress that any funds realized by provisions of this Act establishing the Mass Mailing Allowance shall be designated to pay for benefits provided by provisions of this Act relating to postal rates for third class mail sent by eligible House candidates.

(Sec. 307) Provides for expedited and mandatory Supreme Court review of any appeal of an interlocutory order or final court action on the constitutionality of any provision of this Act.