,,ii  #aafth ,,congress  #ast ,session  
,s4 #bbcb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bc1     
#bjai ,ms4 ,klobuchar introduced the    
following bill2 which was read twice and
 referred to the ,committee on ,rules   
and ,administration  ,a ,,bill  ,to     
amend the ,federal ,election ,campaign  
,act of #aiga to reduce the number of   
members of the ,federal ,election       
,commission from #f to #e1 to revise the
 method of selection and terms of       
service of members of the ,commission1  
to distribute the powers of the         
,commission between the ,chair and the  
remaining members1 and for other        
purposes4  #a4 ,short title  ,this ,act 
may be cited as the ,campaign ,finance  
,transparency ,act4  #b4  ,membership of
 ,federal ,election ,commission  7a7    
,reduction in ,number of ,members2      
,removal of ,secretary of ,senate and   
,clerk of ,house as ,ex ,officio        
,members  7#a7  ,in general2 quorum     
,section #cjf7;a77#a7 of the ,federal   

,election ,campaign ,act of #aiga 7#eb  
,u4,s4,c4 #cjajf7;a77#a77 is amended--  
7,a7 by striking ,there is established  
and inserting 7,a7 ,there is            
established2 and  7,b7 by striking the  
second and third sentences and inserting
 the following3  7,b7 ,the ,commission  
is composed of #e members appointed by  
the ,president by and with the advice   
and consent of the ,senate1 of whom--   
7i7 no more than #b may be affiliated   
with the same political party2 and  7ii7
 at least #a shall not be affiliated    
with-- 7,i7 the political party with    
which the most members of the ,house of 
,representatives are affiliated2 or     
7,,ii7 the political party with which   
the second most member of the ,house of 
,representatives are affiliated4  ,a    
member shall by treated as affiliated   
with a political party if the member was
 affiliated1 including as a registered  
voter1 employee1 consultant1 donor1     
officer1 or attorney1 with such         
political party or any of its candidates

 or elected public officials at any time
 during the #e-year period ending on the
 date on which such individual is       
nominated to be a member of the         
,commission4  7,c7 ,four members shall  
constitute a quorum4  4  7#b7           
,conforming amendments relating to      
reduction in number of members  7,a7    
,the second sentence of section #cjf7;c7
 of such ,act 7#eb ,u4,s4,c4 #cjajf7;c77
 is amended by striking affirmative vote
 of #d members of the ,commission and   
inserting affirmative vote of a majority
 of the members of the ,commission who  
are serving at the time4  7,b7 ,such    
,act is further amended by striking     
affirmative vote of #d of its members   
and inserting affirmative vote of a     
majority of the members of the          
,commission who are serving at the time 
each place it appears in the following  
sections3  7i7 ,section #cji7;a77#b7    
7#eb ,u4,s4,c4 #cjaji7;a77#b774  7ii7   
,section #cji7;a77#d77;,a77i7 7#eb      
,u4,s4,c4 #cjaji7;a77#d77;,a77i774      

7iii7 ,section #cji7;a77#e77;,c7 7#eb   
,u4,s4,c4 #cjaji7;a77#e77;,c774  7iv7   
,section #cji7;a77#f77;,a7 7#eb         
,u4,s4,c4 #cjaji7;a77#f77;,a774  7v7    
,section #caa7;b7 7#eb ,u4,s4,c4        
#cjaaa7;b774  7#c7 ,conforming amendment
 relating to removal of ex officio      
members ,section #cjf7;a7 of such ,act  
7#eb ,u4,s4,c4 #cjajf7;a77 is amended by
 striking 7other than the ,secretary of 
the ,senate and the ,clerk of the ,house
 of ,representatives7 each place it     
appears in paragraphs 7#d7 and 7#e74    
7b7  ,terms of ,service  ,section       
#cjf7;a77#b7 of such ,act 7#eb ,u4,s4,c4
 #cjajf7;a77#b77 is amended to read as  
follows3  7#b7  ,terms of service  7,a7 
,in general  ,each member of the        
,commission shall serve for a single    
term of #f years4  7,b7  ,special rule  
for initial appointments  ,of the       
members first appointed to serve terms  
that begin in ,january #bjbb1 the       
,president shall designate #b to serve  
for #c-year terms4 ,the members selected

 under this subparagraph shall not be   
affiliated with the same political      
party4  7,c7  ,no reappointment         
permitted  ,an individual who served a  
term as a member of the ,commission may 
not serve for an additional term1 except
 that--  7i7 an individual who served a 
#c-year term under subparagraph 7,b7 may
 also be appointed to serve a #f-year   
term under subparagraph 7,a72 and  7ii7 
for purposes of this subparagraph1 an   
individual who is appointed to fill a   
vacancy under subparagraph 7,d7 shall   
not be considered to have served a term 
if the portion of the unexpired term the
 individual fills is less than #ej      
percent of the period of the term4  7,d7
  ,vacancies  ,any vacancy occurring in 
the membership of the ,commission shall 
be filled in the same manner as in the  
case of the original appointment4       
,except as provided in subparagraph     
7,c71 an individual appointed to fill a 
vacancy occurring other than by the     
expiration of a term of office shall be 

appointed only for the unexpired term of
 the member he or she succeeds4  7,e7   
,limitation on service after expiration 
of term  ,a member of the ,commission   
may continue to serve on the ,commission
 after the expiration of the member's   
term for an additional period1 but only 
until the earlier of--  7i7 the date on 
which the member's successor has taken  
office as a member of the ,commission2  
or  7ii7 the expiration of the #a-year  
period that begins on the last day of   
the member's term4  4  7c7              
,qualifications  ,section #cjf7;a77#c7  
of such ,act 7#eb ,u4,s4,c4             
#cjajf7;a77#c77 is amended to read as   
follows3  7#c7  ,qualifications  7,a7   
,in general  ,the ,president may select 
an individual for service as a member of
 the ,commission if the individual has  
experience in election law and has a    
demonstrated record of integrity1       
impartiality1 and good judgment4  7,b7  
,assistance of ,blue ,ribbon ,advisory  
,panel  7i7  ,in general  ,prior to the 

regularly scheduled expiration of the   
term of a member of the ,commission and 
upon the occurrence of a vacancy in the 
membership of the ,commission prior to  
the expiration of a term1 the ,president
 shall convene a ,blue ,ribbon ,advisory
 ,panel consisting of an odd number of  
individuals selected by the ,president4 
7ii7 ,composition ,the ,blue ,ribbon    
,advisory ,panel shall include          
individuals representing each major     
political party and individuals who are 
independent of a political party and    
individuals with experience in election 
law1 except that the ,president may not 
select any individual to serve on the   
panel who holds any public office at the
 time of selection4 ,the ,president     
shall make reasonable efforts to        
encourage racial1 ethnic1 and gender    
diversity on the panel4  7iii7          
,recommendations  ,with respect to each 
member of the ,commission whose term is 
expiring or each vacancy in the         
membership of the ,commission 7as the   

case may be71 the ,blue ,ribbon         
,advisory ,panel shall recommend to the 
,president at least one but not more    
than #c individuals for nomination for  
appointment as a member of the          
,commission4  7iv7  ,publication  ,at   
the time the ,president submits to the  
,senate the nominations for individuals 
to be appointed as members of the       
,commission1 the ,president shall       
publish the ,blue ,ribbon ,advisory     
,panel's recommendations for such       
nominations4  7v7  ,exemption from      
,federal ,advisory ,committee ,act  ,the
 ,federal ,advisory ,committee ,act 7#e 
,u4,s4,c4 ,app47 does not apply to a    
,blue ,ribbon ,advisory ,panel convened 
under this subparagraph4  7,c7          
,prohibiting engagement with other      
business or employment during service   
,a member of the ,commission shall not  
engage in any other business1 vocation1 
or employment4 ,any individual who is   
engaging in any other business1         
vocation1 or employment at the time of  

his or her appointment to the           
,commission shall terminate or liquidate
 such activity no later than #ij days   
after such appointment4  4  #c4         
,assignment of powers to ,chair of      
,federal ,election ,commission  7a7     
,appointment of ,chair by ,president    
7#a7  ,in general  ,section #cjf7;a77#e7
 of the ,federal ,election ,campaign    
,act of #aiga 7#eb ,u4,s4,c4            
#cjajf7;a77#e77 is amended to read as   
follows3  7#e7  ,chair  7,a7  ,initial  
appointment  ,of the members first      
appointed to serve terms that begin in  
,january #bjbb1 one such member 7as     
designated by the ,president at the time
 the ,president submits nominations to  
the ,senate7 shall serve as ,chair of   
the ,commission4  7,b7  ,subsequent     
appointments  ,any individual who is    
appointed to succeed the member who     
serves as ,chair of the ,commission for 
the term beginning in ,january #bjbb 7as
 well as any individual who is appointed
 to fill a vacancy if such member does  

not serve a full term as ,chair7 shall  
serve as ,chair of the ,commission4     
7,c7  ,vice ,chair  ,the ,commission    
shall select1 by majority vote of its   
members1 one of its members to serve as 
,vice ,chair1 who shall act as ,chair in
 the absence or disability of the ,chair
 or in the event of a vacancy in the    
position of ,chair4  4  7#b7            
,conforming amendment  ,section         
#cji7;a77#b7 of such ,act 7#eb ,u4,s4,c4
 #cjaji7;a77#b77 is amended by striking 
through its chairman or vice chairman   
and inserting through the ,chair4  7b7  
,powers  7#a7  ,assignment of certain   
powers to ,chair  ,section #cjg7;a7 of  
such ,act 7#eb ,u4,s4,c4 #cjajg7;a77 is 
amended to read as follows3  7a7        
,distribution of ,powers ,between ,chair
 and ,commission  7#a7  ,powers assigned
 to ,chair  7,a7  ,administrative powers
  ,the ,chair of the ,commission shall  
be the chief administrative officer of  
the ,commission and shall have the      
authority to administer the ,commission 

and its staff1 and 7in consultation with
 the other members of the ,commission7  
shall have the power--  7i7 to appoint  
and remove the staff director of the    
,commission2  7ii7 to request the       
assistance 7including personnel and     
facilities7 of other agencies and       
departments of the ,united ,states1     
whose heads may make such assistance    
available to the ,commission with or    
without reimbursement2 and  7iii7 to    
prepare and establish the budget of the 
,commission and to make budget requests 
to the ,president1 the ,director of the 
,office of ,management and ,budget1 and 
,congress4  7,b7  ,other powers  ,the   
,chair of the ,commission shall have the
 power--  7i7 to appoint and remove the 
general counsel of the ,commission2     
7ii7 to appoint and remove the director 
of enforcement of the ,commission with  
the concurrence of at least #b other    
members of the ,commission who are not  
affiliated with the same political party
 as the ,chair2  7iii7 to require by    

special or general orders1 any person to
 submit1 under oath1 such written       
reports and answers to questions as the 
,chair may prescribe2  7iv7 to          
administer oaths or affirmations2  7v7  
to require by subpoena1 signed by the   
,chair1 the attendance and testimony of 
witnesses and the production of all     
documentary evidence relating to the    
execution of its duties2  7vi7 in any   
proceeding or investigation1 to order   
testimony to be taken by deposition     
before any person who is designated by  
the ,chair1 and shall have the power to 
administer oaths and1 in such instances1
 to compel testimony and the production 
of evidence in the same manner as       
authorized under clause 7iv72 and  7vii7
 to pay witnesses the same fees and     
mileage as are paid in like             
circumstances in the courts of the      
,united ,states4  7#b7  ,powers assigned
 to ,commission  ,the ,commission shall 
have the power-- 7,a7 to initiate       
7through civil actions for injunctive1  

declaratory1 or other appropriate       
relief7 any civil action in the name of 
the ,commission to enforce the          
provisions of this ,act and chapter #ie 
and chapter #if of the ,internal        
,revenue ,code of #aihf1 through its    
director of enforcement2  7,b7 to defend
 7in the case of any civil action       
brought under section #cji7;a77#h7 of   
this ,act7 or appeal 7including a       
proceeding before the ,supreme ,court on
 certiorari7 any civil action in the    
name of the ,commission to enforce the  
provisions of this ,act and chapter #ie 
and chapter #if of the ,internal        
,revenue ,code of #aihf1 through its    
general counsel2  7,c7 to render        
advisory opinions under section #cjh of 
this ,act2  7,d7 to develop such        
prescribed forms and to make1 amend1 and
 repeal such rules1 pursuant to the     
provisions of chapter #e of title #e1   
,united ,states ,code1 as are necessary 
to carry out the provisions of this ,act
 and chapter #ie and chapter #if of the 

,internal ,revenue ,code of #aihf2  7,e7
 to oversee investigations conducted by 
the director of enforcement2  7,f7 to   
conduct hearings expeditiously1 to      
encourage voluntary compliance1 and to  
report apparent violations to the       
appropriate law enforcement authorities2
 and  7,g7 to transmit to the ,president
 and ,congress not later than ,june #a  
of each year a report which states in   
detail the activities of the ,commission
 in carrying out its duties under this  
,act1 and which includes any            
recommendations for any legislative or  
other action the ,commission considers  
appropriate4  7#c7  ,permitting         
,commission to exercise other powers of 
,chair  ,with respect to any            
investigation1 action1 or proceeding1   
the ,commission1 by an affirmative vote 
of a majority of the members who are    
serving at the time1 may exercise any of
 the powers of the ,chair described in  
paragraph 7#a77;,b74  4  7#b7           
,conforming amendments relating to      

personnel authority  ,section #cjf7;f7  
of such ,act 7#eb ,u4,s4,c4 #cjajf7;f77 
is amended--  7,a7 by striking the      
,commission in the first sentence of    
paragraph 7#a7 and inserting the ,chair 
of the ,commission in consultation with 
the other members2  7,b7 in paragraph   
7#b71 by striking ,with the approval of 
the ,commission and inserting ,with the 
approval of the ,chair of the           
,commission2 and  7,c7 by striking      
paragraph 7#c74  7#c7 ,conforming       
amendment relating to budget submission 
,section #cjg7;d77#a7 of such ,act 7#eb 
,u4,s4,c4 #cjajg7;d77#a77 is amended by 
striking the ,commission submits any    
budget and inserting the ,chair 7or1    
pursuant to subsection 7a77#c71 the     
,commission7 submits any budget4  7#d7  
,other conforming amendments  ,section  
#cjf7;c7 of such ,act 7#eb ,u4,s4,c4    
#cjajf7;c77 is amended by striking ,all 
decisions and inserting ,subject to     
section #cjg7;a71 all decisions4  7#e7  
,technical amendment ,the heading of    

section #cjg of such ,act 7#eb ,u4,s4,c4
 #cjajg7 is amended by striking the     
commission and inserting the chair and  
the commission4  #d4  ,revision to      
enforcement process  7a7 ,establishment 
of ,director of ,enforcement ,paragraph 
7#a7 of section #cjf7;f7 of the ,federal
 ,election ,campaign ,act of #aiga 7#eb 
,u4,s4,c4 #cjaji7;f77#a77 is amended to 
read as follows3  7#a7 ,the ,commission 
shall have the following3 7,a7 ,a staff 
director who--  7i7 shall be appointed  
by the ,chair of the ,commission in     
consultation with the other members2 and
  7ii7 except as provided in            
subparagraph 7,c71 may1 with the        
approval of the ,chair of the           
,commission1 appoint and fix the pay of 
such additional personnel as he or she  
considers desirable without regard to   
the provisions of title #e1 ,united     
,states ,code1 governing appointments in
 the competitive service4  7,b7 ,a      
general counsel who shall be appointed  
by the ,chair of the ,commission in     

consultation with the other members4    
7,c7 ,a director of enforcement who--   
7i7 shall be nominated by the ,chair and
 approved by a majority vote of the     
members of the ,commission who are      
serving at the time1 including an       
affirmative vote by at least #b members 
who are not affiliated with the same    
political party as the ,chair2  7ii7    
shall serve for a term of #d years1     
subject to renewal2 and  7iii7 may1 with
 the approval of the ,chair of the      
,commission1 appoint and fix the pay of 
such additional personnel to assist with
 the duties of the director as he or she
 considers desirable without regard to  
the provisions of title #e1 ,united     
,states ,code1 governing appointments in
 the competitive service4  4  7b7       
,standard for initiating investigations 
and determining whether violations have 
occurred  7#a7  ,revision of standards  
,section #cji7;a7 of the ,federal       
,election ,campaign ,act of #aiga 7#eb  
,u4,s4,c4 #cjaji7;a77 is amended by     

striking paragraphs 7#b7 and 7#c7 and   
inserting the following3  7#b7  7,a7    
,the director of enforcement1 upon      
receiving a complaint filed with the    
,commission under paragraph 7#a7 or upon
 the basis of information ascertained by
 the ,commission in the normal course of
 carrying out its supervisory           
responsibilities1 shall make a          
determination as to whether or not there
 is reason to believe that a person has 
committed1 or is about to commit1 a     
violation of this ,act or chapter #ie or
 chapter #if of the ,internal ,revenue  
,code of #aihf1 and as to whether or not
 the ,commission should either initiate 
an investigation of the matter or that  
the complaint should be dismissed4 ,the 
director of enforcement shall promptly  
provide notification to the ,commission 
of such determination and the reasons   
therefore1 together with any written    
response submitted under paragraph 7#a7 
by the person alleged to have committed 
the violation4 ,upon the expiration of  

the #cj-;day period which begins on the 
date the director of enforcement        
provides such notification1 the         
director's determination shall take     
effect1 unless during such #cj-;day     
period the ,commission1 by vote of a    
majority of the members of the          
,commission who are serving at the time1
 overrules the director's determination4
 ,if the determination by the director  
of enforcement that the ,commission     
should investigate the matter takes     
effect1 or if the determination by the  
director of enforcement that the        
complaint should be dismissed is        
overruled as provided under the previous
 sentence1 the director of enforcement  
shall initiate an investigation of the  
matter on behalf of the ,commission4    
7,b7 ,if the ,commission initiates an   
investigation pursuant to subparagraph  
7,a71 the ,commission1 through the      
,chair1 shall notify the subject of the 
investigation of the alleged violation4 
,such notification shall set forth the  

factual basis for such alleged          
violation4 ,the ,commission shall make  
an investigation of such alleged        
violation1 which may include a field    
investigation or audit1 in accordance   
with the provisions of this section4    
,the director of enforcement shall      
provide notification to the ,commission 
of any intent to issue a subpoena or    
conduct any other form of discovery     
pursuant to the investigation4 ,upon the
 expiration of the #ae-;day period which
 begins on the date the director of     
enforcement provides such notification1 
the director of enforcement may issue   
the subpoena or conduct the discovery1  
unless during such #ae-;day period the  
,commission1 by vote of a majority of   
the members of the ,commission who are  
serving at the time1 prohibits the      
director of enforcement from issuing the
 subpoena or conducting the discovery4  
7#c7  7,a7 ,upon completion of an       
investigation under paragraph 7#b71 the 
director of enforcement shall promptly  

submit to the ,commission the director's
 recommendation that the ,commission    
find either that there is probable cause
 or that there is not probable cause to 
believe that a person has committed1 or 
is about to commit1 a violation of this 
,act or chapter #ie or chapter #if of   
the ,internal ,revenue ,code of #aihf1  
and shall include with the              
recommendation a brief stating the      
position of the director of enforcement 
on the legal and factual issues of the  
case4  7,b7 ,at the time the director of
 enforcement submits to the ,commission 
the recommendation under subparagraph   
7,a71 the director of enforcement shall 
simultaneously notify the respondent of 
such recommendation and the reasons     
therefore1 shall provide the respondent 
with an opportunity to submit a brief   
within #cj days stating the position of 
the respondent on the legal and factual 
issues of the case and replying to the  
brief of the director of enforcement4   
,the director of enforcement and shall  

promptly submit such brief to the       
,commission upon receipt4  7,c7 ,not    
later than #cj days after the director  
of enforcement submits the              
recommendation to the ,commission under 
subparagraph 7,a7 7or1 if the respondent
 submits a brief under subparagraph     
7,b71 not later than #cj days after the 
director of enforcement submits the     
respondent's brief to the ,commission   
under such subparagraph71 the           
,commission shall approve or disapprove 
the recommendation by vote of a majority
 of the members of the ,commission who  
are serving at the time4 ,in the case of
 a tie vote1 the ,commission shall be   
considered to have adopted the          
recommendation4  4  7#b7  ,conforming   
amendment relating to ,initial response 
to filing of complaint  ,section        
#cji7;a77#a7 of such ,act 7#eb ,u4,s4,c4
 #cjaji7;a77#a77 is amended--  7,a7 in  
the third sentence1 by striking the     
,commission and inserting the director  
of enforcement2 and  7,b7 by amending   

the fourth sentence to read as follows3 
,not later than #ae days after receiving
 notice from the director of enforcement
 under the previous sentence1 the person
 may provide the director of enforcement
 with a written response that no action 
should be taken against such person on  
the basis of the complaint44  7c7       
,revision of standard for review of     
dismissal of complaints  7#a7  ,in      
general  ,section #cji7;a77#h7 of such  
,act 7#eb ,u4,s4,c4 #cjaji7;a77#h77 is  
amended to read as follows3  7#h7  7,a7 
7i7 ,any party aggrieved by an action of
 the ,commission 7including a           
determination of the director of        
enforcement which is not overruled by   
the ,commission7 dismissing a complaint 
filed by such party after finding either
 no reason to believe a violation has   
occurred or no probable cause a         
violation has occurred may file a       
petition with the ,united ,states       
,district ,court for the ,district of   
,columbia4 ,any petition under this     

subparagraph shall be filed within #fj  
days after the date on which the party  
received notice of the dismissal of the 
complaint4  7ii7 ,in any proceeding     
under this subparagraph1 the court shall
 determine by de novo review whether the
 dismissal of the complaint is contrary 
to law4 ,in any matter in which the     
penalty for the alleged violation is    
greater than #ej1jjj1 the court should  
disregard any claim or defense by the   
,commission of prosecutorial discretion 
as a basis for dismissing the complaint4
  7,b7  7i7 ,any party who has filed a  
complaint with the ,commission and who  
is aggrieved by a failure of the        
,commission1 within one year after the  
filing of the complaint1 to either      
dismiss the complaint or to find reason 
to believe a violation has occurred or  
is about to occur1 may file a petition  
with the ,united ,states ,district      
,court for the ,district of ,columbia4  
7ii7 ,the ,commission may submit under  
seal an ex parte request for a temporary

 stay of any proceeding initiated under 
clause 7i71 and the court may grant such
 request if it determines that the      
investigation of the complaint by the   
,commission is being held in abeyance on
 a reasonable basis4  7iii7 ,in any     
proceeding under this subparagraph1     
except in the case of a stay granted    
under clause 7ii71 the court shall treat
 the failure to act on the complaint as 
a dismissal of the complaint1 and shall 
determine by de novo review whether the 
agency's failure to act on the complaint
 is contrary to law4  7,c7 ,in any      
proceeding under this paragraph the     
court may declare that the dismissal of 
the complaint or the failure to act is  
contrary to law1 and may direct the     
,commission to conform with such        
declaration within #cj days1 failing    
which the complainant may bring1 in the 
name of such complainant1 a civil action
 to remedy the violation involved in the
 original complaint4  4  7#b7           
,effective date  ,the amendments made by

 paragraph 7#a7 shall apply-- 7,a7 in   
the case of complaints which are        
dismissed by the ,federal ,election     
,commission1 with respect to complaints 
which are dismissed on or after the date
 of the enactment of this ,act2 and     
7,b7 in the case of complaints upon     
which the ,federal ,election ,commission
 failed to act1 with respect to         
complaints which were filed on or after 
the date of the enactment of this ,act4 
#e4 ,restoring the ,commission's random 
audit authority ,section #caa7;b7 of the
 ,federal ,election ,campaign ,act of   
#aiga 7#eb ,u4,s4,c4 #cjaaa7;a77 is     
amended to read as follows3  7b7 ,audits
  7#a7 ,in general ,the ,commission     
shall conduct audits and field          
investigations of not less than #aj     
percent of political committees required
 to file a report under section #cjd of 
this ,act4 ,such audits and field       
investigations shall be conducted       
proportionally among--  7,a7 authorized 
committees of candidates2  7,b7         

political committees established and    
maintained by political parties2  7,c7  
political committees not described in   
subparagraph 7,a7 or 7,b7 that accepts  
donations or contributions that do not  
comply with the limitations1            
prohibitions1 and reporting requirements
 of this ,act2 and  7,d7 political      
committees not described in subparagraph
 7,a71 7,b71 or 7,c74  7#b7 ,priority   
,all audits and field investigations    
concerning the verification for1 and    
receipt and use of1 any payments        
received by a candidate or committee    
under chapter #ie or chapter #if of the 
,internal ,revenue ,code of #aihf shall 
be given priority4  7#c7 ,determination 
of violations ,the ,commission shall    
establish materiality thresholds with   
respect to the enforcement of a         
violation of any provision of this ,act 
which is discovered during an audit     
conducted under this subsection4  4  #f4
  ,permanent extension of administrative
 penalty authority  7a7  ,extension of  

authority  ,section #cji7;a77#d77;,c77v7
 of the ,federal ,election ,campaign    
,act of #aiga 7#eb ,u4,s4,c4            
#cjaji7;a77#d77;,c77v77 is amended by   
striking 1 and that end on or before    
,december #ca1 #bjbc4  7b7 ,effective   
date ,the amendment made by subsection  
7a7 shall take effect on ,december #ca1 
#bjai4  #g4 ,permitting appearance at   
hearings on requests for advisory       
opinions by persons opposing the        
requests  7a7 ,in general ,section #cjh 
of such ,act 7#eb ,u4,s4,c4 #cjajh7 is  
amended by adding at the end the        
following new subsection3  7e7 ,to the  
extent that the ,commission provides an 
opportunity for a person requesting an  
advisory opinion under this section 7or 
counsel for such person7 to appear      
before the ,commission to present       
testimony in support of the request1 and
 the person 7or counsel7 accepts such   
opportunity1 the ,commission shall      
provide a reasonable opportunity for an 
interested party who submitted written  

comments under subsection 7d7 in        
response to the request 7or counsel for 
such interested party7 to appear before 
the ,commission to present testimony in 
response to the request4  4  7b7        
,effective date ,the amendment made by  
subsection 7a7 shall apply with respect 
to requests for advisory opinions under 
section #cjh of the ,federal ,election  
,campaign ,act of #aiga which are made  
on or after the date of the enactment of
 this ,act4  #h4 ,revising prohibitions 
on fraudulent misrepresentation of      
campaign authority ,section #cbb of the 
,federal ,election ,campaign ,act of    
#aiga 7#eb ,u4,s4,c4 #cjabd7 is         
amended-- 7#a7 in subsection 7a7--  7,a7
 by striking who is a candidate for     
,federal office or an employee or agent 
of such a candidate in the matter       
preceding paragraph 7#a72  7,b7 by      
striking other candidate or political   
party or employee or agent thereof on a 
matter which is damaging to such other  
candidate or political party or employee

 or agent thereof and inserting         
candidate1 political party1 other real  
or fictitious political committee or    
organization1 or employee or agent or   
any of the foregoing12 and  7#b7 in     
subsection 7b77#a71 by striking         
candidate or political party or employee
 or agent thereof and inserting         
candidate1 political party1 other real  
or fictitious committee or organization1
 or employee or agent of any of the     
foregoing4  #i4 ,prohibiting fraudulent 
,,pac practices  7a7 ,in general  7#a7  
,prohibition ,section #cac of the       
,federal ,election ,campaign ,act of    
#aiga 7#eb ,u4,s4,c4 #cjaad7 is amended 
by adding at the end the following new  
subsection3  7d7 ,prohibited uses by    
other political committees  7#a7 ,in    
general ,a contribution or donation that
 is made to a political committee and is
 not described in subsection 7a7 shall  
not be converted to personal use        
7including any use described in         
subparagraphs 7,a7 through 7,i7 of      

subsection 7b77#b774  7#b7              
,self-,dealing  7,a7 ,in general ,for   
purposes of paragraph 7#a71 a           
contribution or donation shall be       
presumed to be converted to personal use
 if the contribution or donation is used
 to make a significant disbursement to a
 controlling person4  7,b7 ,rebuttal    
,the presumption in subparagraph 7,a7   
may be rebutted only upon a showing     
that-- 7i7 the significant disbursement 
to the controlling person is a bona fide
 payment for goods or services at no    
greater than fair market value2  7ii7   
the significant disbursement was        
negotiated at arms' length by and       
approved by an agent of the committee   
who--  7,i7 was neither the controlling 
person nor in an employment relationship
 directly or indirectly subject to the  
direction or control of the controlling 
person2  7,,ii7 relied upon appropriate 
data as to fair market value prior to   
approving the disbursement2 and  7,,iii7
 documented the basis for the approval  

determination concurrently with making  
that determination2 and  7iii7 at the   
time the significant disbursement was   
made1 the aggregate total of itemized   
contributions to the committee during   
the election cycle exceeded the         
aggregate total of disbursements to     
controlling persons by the committee    
during the election cycle4  7,c7        
,definitions ,for purposes of this      
paragraph3 7i7 ,controlling person ,the 
term controlling person means any person
 who has authority or ability to direct 
or control the committee's              
disbursements1 any family member or     
business partner of such person1 and any
 corporation 7whether for-profit or     
not-for-profit1 but not including       
publicly traded corporations71 limited  
liability company1 partnership1 trust1  
bank or financial account1 or other     
entity owned or controlled in whole or  
in part by such person1 family member1  
or business partner4  7ii7 ,significant 
disbursement ,the term significant      

disbursement means any disbursement to a
 person if-- 7,i7 such disbursement     
exceeds #a1jjj2 or  7,,ii7 such         
disbursement1 when aggregated with all  
other disbursements by the committee to 
the person within the calendar year1    
exceeds #e1jjj4  4  7#b7 ,conforming    
amendment ,the heading for subsection   
7b7 of section #cac of such ,act 7#eb   
,u4,s4,c4 #cjaad7 is amended by         
inserting by candidates and office      
holders after ,prohibited uses4  7b7    
,reporting ,section #cjd7;b77#f77;,b7 of
 the ,federal ,election ,campaign ,act  
of #aiga 7#eb ,u4,s4,c4                 
#cjajd7;b77#f77;,b77 is amended by      
striking and at the end of clause 7iv71 
by inserting and at the end of clause   
7v71 and by adding at the end the       
following new clause3  7vi7 person who  
during the reporting period received a  
disbursement that constituted a         
significant disbursement to a           
controlling person within the meaning of
 section #cac7;b77#b71 together with the

 date1 amount1 and purpose of the       
significant disbursement and a sworn    
statement demonstrating that the        
requirements of #cac7;b77#b77;,b7 were  
satisfied2  4  7c7 ,study on additional 
measures ,not later than #abj days after
 the enactment of this ,act1 the        
,chairman of the ,federal ,trade        
,commission and the ,chairman of the    
,federal ,election ,commission shall    
jointly submit to ,congress a report on 
measures that should be taken by        
,congress or the ,federal ,election     
,commission to limit fraudulent         
solicitations by political committees4  
7d7 ,effective ,date ,the amendments    
made by this section shall apply to     
disbursements made after the date of the
 enactment of this ,act4  #aj4          
,prohibition on aiding or abetting the  
making of contributions in the name of  
another ,section #cbj of the ,federal   
,election ,campaign ,act of #aiga 7#eb  
,u4,s4,c4 #cjabb7 is amended-- 7#a7 by  
striking ,no person and inserting the   

following3  7a7 ,in general ,no person  
2 and  7#b7 by adding at the end the    
following3  7b7 ,aiding or abetting ,no 
person shall knowingly direct1 help1 or 
assist any person in making a           
contribution in the name of another4  4 
#aa4 ,rules relating to conversion of   
campaign funds ,section #cac7;b7 of the 
,federal ,election ,campaign ,act of    
#aiga 7#eb ,u4,s4,c4 #cjaad7;b77 is     
amended-- 7#a7 in paragraph 7#a71 by    
inserting and any other contribution or 
donation accepted by a political        
committee after subsection 7a72 and     
7#b7 in paragraph 7#b7-- 7,a7 by        
inserting 1 in the case of a            
contribution or donation described in   
subsection 7a71 after if2  7,b7 by      
striking including and inserting and1 in
 the case of any other contribution or  
donation accepted by a political        
committee1 the contribution or amount is
 used to fulfill any commitment1        
obligation1 or expense of a person that 
would exist irrespective of such        

political committee's political         
activities4 ,conversion to personal use 
shall include2  7,c7 by striking        
subparagraph 7,c7 and inserting the     
following3  7,c7 an automobile expense  
that is not related to a campaign or the
 political activities of the committee2 
2  7,d7 in subparagraph 7,e71 by        
striking non-campaign-related trip and  
inserting trip not related to a campaign
 or the political activities of the     
committee2 and  7,e7 in subparagraph    
7,h71 by inserting or the political     
activities of the committee after       
election campaign4  #ab4 ,increasing and
 indexing for inflation registration and
 reporting thresholds  7a7 ,registration
 thresholds ,section #cja7d7 of the     
,federal ,election ,campaign ,act of    
#aiga 7#eb ,u4,s4,c4 #cjaja7d77 is      
amended-- 7#a7 in subparagraph 7,a71 by 
striking #a1jjj each place it appears   
and inserting #e1jjj2  7#b7 in          
subparagraph 7,c7-- 7,a7 by striking    
receives contributions aggregating in   

excess of #e1jjj during a calendar year1
 or2  7,b7 by striking 1 or makes       
contributions in excess of #a1jjj and   
inserting or makes contributions in     
excess of #e1jjj2 and  7,c7 by striking 
or makes expenditures aggregating in    
excess of #a1jjj during a calendar year2
 and  7#c7 by adding at the end the     
following new flush sentence3 ,in any   
calendar year after #bjbj1 section      
#cae7;c77#a77;,b7 shall apply to each   
amount described in subparagraphs 7,a7  
and 7,c7 of this paragraph in the same  
manner as such section applies to the   
limitations established under           
subsections 7a77#a77;,a71 7a77#a77;,b71 
7a77#c71 and 7h7 of such section1 except
 that for purposes of applying such     
section to the amounts described in     
subparagraphs 7,a7 and 7,c7 of this     
paragraph1 the base period shall be     
#bjbj4 4  7b7 ,reporting thresholds     
7#a7 ,modification of independent       
expenditure reporting threshold ,section
 #cjd7;c77#a7 of the ,federal ,election 

,campaign ,act of #aiga 7#eb ,u4,s4,c4  
#cjajd7;c77#a77 is amended by striking  
#bej in paragraph 7#a7 and inserting    
#a1jjj4  7#b7 ,inflation adjustment     
,section #cjd of such ,act 7#eb         
,u4,s4,c4 #cjajd7 is amended by adding  
at the end the following new subsection3
  7j7 ,inflation adjustments  7#a7 ,in  
general ,in any odd-numbered calendar   
year after #bjbj-- 7,a7 each of the     
dollar amounts described in paragraph   
7#b7 shall be increased by the percent  
difference determined under section     
#cae7;c77#a77;,a7 7applied as if the    
base period was calendar year #bjbj72   
7,b7 each amount so increased shall     
remain in effect for the #b-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 election2 and  
7,c7 if any amount after adjustment     
under subparagraph 7,a7 is not a        
multiple of #ajj1 such amount shall be  

rounded to the nearest multiple of #ajj4
  7#b7 ,dollar amounts described ,the   
dollar amounts described in this        
paragraph are the following3 7,a7 ,each 
of the #ajj1jjj amounts in clauses 7i7  
and 7iii7 of subsection 7a77#c77;,a74   
7,b7 ,the #a1jjj amount in subsection   
7a77#f77;,a74  7,c7 ,each of the #bjj   
amounts in subparagraphs 7,a71 7,f71 and
 7,g7 of subsection 7b77#c74  7,d7 ,the 
#bjj amount in subsection 7b77#e77;,a74 
7,e7 ,each of the #bjj amounts in       
subparagraphs 7,a71 7,b77iii71 and      
7,b77v7 of subsection 7b77#f74  7,f7    
,the #a1jjj amount in subsection        
7c77#a74  7,g7 ,the #bjj amount in      
subsection 7c77#b77;,c74  7,h7 ,the     
#e1jjj amount in subsection             
7e77#b77;,a74  7,i7 ,the #bjj amount in 
subsection 7e77#c74  7,j7 ,each of the  
#aj1jjj amounts in paragraphs 7#a71     
7#d77;,a7 and 7#d77;,b7 of subsection   
7f74  7,k7 ,the #bjj amount in          
subsection 7f77#b77;,c74  7,l7 ,each of 
the #a1jjj amounts in subparagraphs 7,e7

 and 7,f7 of subsection 7f77#b77;,c74   
7,m7 ,each of the #a1jjj amounts in     
subparagraphs 7,a7 and 7,b7 of          
subsection 7g77#a74  7,n7 ,each of the  
#aj1jjj amounts in subparagraphs 7,a7   
and 7,b7 of subsection 7g77#b74  4  7c7 
,effective date ,the amendments made by 
this section shall apply to calendar    
years beginning after ,december #ca1    
#bjai4  #ac4 ,permitting political      
committees to make disbursements by     
methods other than check ,section       
#cjb7;h77#a7 of the ,federal ,election  
,campaign ,act of #aiga 7#eb ,u4,s4,c4  
#cjajb7;h77#a7 is amended by striking   
the last sentence and inserting the     
following3 ,no disbursements may be made
 7other than petty cash disbursements   
under paragraph 7#b77 by such committee 
except from such accounts44  #ad4       
,electronic filing of electioneering    
communication reports ,section          
#cjd7;a77#aa77;,a77i7 of the ,federal   
,election ,campaign ,act of #aiga 7#eb  
,u4,s4,c4 #cjajd7;a77#aa77;,a77i77 is   

amended by striking or expenditures and 
inserting 1 expenditures1 or            
disbursements for electioneering        
communications4  #ae4  ,effective date2 
transition  7a7  ,in ,general  ,except  
as otherwise provided1 the amendments   
made by this ,act shall apply beginning 
,january #a1 #bjbb4  7b7  ,transition   
7#a7  ,termination of service of current
 members  ,notwithstanding any provision
 of the ,federal ,election ,campaign    
,act of #aiga1 the term of any          
individual serving as a member of the   
,federal ,election ,commission as of    
,december #ca1 #bjba1 shall expire on   
that date4  7#b7 ,no effect on existing 
cases or proceedings ,nothing in this   
,act or in any amendment made by this   
,act shall affect any of the powers     
exercised by the ,federal ,election     
,commission prior to ,december #ca1     
#bjba1 including any investigation      
initiated by the ,commission prior to   
such date or any proceeding 7including  
any enforcement action7 pending as of   

such date4