Fair and Open Elections Act of 1998

Fair and Open Elections Act of 1998 - Amends the Federal Election Campaign Act of 1971 (FECA) to prohibit candidates from accepting contributions from persons other than residents of the State involved in excess of the total contributions accepted from such residents.

Increases individual contribution limits with respect to contributions to candidates and their authorized committees and to political committees of national political parties (political party committees). Raises the overall annual limit on individual contributions to $50,000. Provides for indexing of limits on individual contributions.

Prohibits contributions through an intermediary or conduit (bundling), but allows a person to facilitate a contribution by providing: (1) advice to another as to how to make a contribution; and (2) addressed mailing material or similar items to another person for use in making a contribution. (Current law requires contributions made through intermediaries to be treated as contributions from the original source.)

Bars individuals who are not eligible to vote in Federal elections from making contributions to candidates or political committees.

(Sec. 3) Prohibits political party committees from soliciting, expending, or transferring funds which are not subject to FECA requirements.

Repeals certain limitations on expenditures by: (1) political party committees in presidential election campaigns; and (2) national or State political party committees in Federal office election campaigns.

Requires political party committees to report to the Federal Election Commission (FEC) any transfer of funds made to State political committees or local political parties.

(Sec. 4) Amends the Internal Revenue Code to allow an individual to take a tax credit for up to $100 ($200 for a joint return) of Federal campaign contributions, subject to verification procedures.

(Sec. 5) Requires persons who make payments for public communications which mention a political party or clearly identified candidate for Federal office during the 60-day period ending on the date of a general election to report such payments and the source of funds to the FEC. Amends the Communications Act of 1934 to require broadcasting stations that broadcast such communications for which any valuable consideration is accepted to make certain sponsorship information regarding such communications available to the public.

(Sec. 6) Entitles eligible House of Representatives candidates to reduced postage rates. Limits such candidates to election expenditures of $700,000. Increases such amount to $1.4 million for candidates against whom independent expenditures are made. Provides for indexing of such limits.

(Sec. 7) Requires reports filed with the FEC to be in electronic format.

Prohibits a reduction in annual appropriations for the FEC.

Lengthens the term of FEC members from six to ten years.

(Sec. 8) Increases the contribution amount which triggers a requirement for reporting contributor information to the treasurer of a political committee.

(Sec. 9) Requires persons conducting telephone polls relating to Federal elections (other than presidential elections) in which the number of households exceeds a specified threshold to disclose the identity of the poll sponsor to respondents.