"H.R. 1776 makes common sense improvements to our campaign finance system," said Smith. "I felt it was important to cosponsor this important piece of legislation to demonstrate my support for it and urge the House leadership to bring this measure to a vote this year."

H.R. 1776 is sponsored by Chris Shays (R-Connecticut) and stems from the original Shays- Meehan campaign finance reform bill, H.R. 493.

"The bill's most important provision is a total ban on soft money," Smith explained. "Soft money contributions are the unlimited and unregulated amounts of money that are given to political parties and then funneled to candidates. It's a loophole that allows big contributors to avoid federal election law and public scrutiny."

Smith's announcement comes at an appropriate time, since earlier this month the political parties announced their soft money fundraising totals so far this year. The National Democratic party raised $11 million, while the Republican National Committee raised $23 million. Much of this money is contributed in large sums, and $100,000 to $500,000 checks from corporations or individuals are not uncommon. In fact, Richard and Helen DeVos, founder of Amway, gave the Republican National Committee $1 million already this year. "The flow of huge contributions by corporations or individuals is not healthy for our political process," Smith said.

H.R. 1776 includes the following provisions:

SOFT MONEY BAN

Eliminates the use of soft money in federal elections.

ENFORCEMENT

Contains a number of provisions to increase enforcement, including:
1. Allowing the FEC to conduct random audits after an election of federal candidates
2. Giving the FEC independent litigation authority
3. Providing for term limits for FEC chairs

DISCLOSURE

Contains a number of provisions to increase disclosure, including:
1. Mandatory election filing of FEC reports
2. Requiring political committees to disclose who is providing personal or consulting services to a candidate or committee
3. Tightened FEC reporting requirements (including optional monthly FEC report . filing, more frequent reports after each $100,000 received, and tightened rules on / filing incomplete or false contributor information)
4. A requirement that campaign ads clearly state who paid for the ad

Smith says H.R. 1776 has a better chance of becoming law than the original Shays-Meehan bill, because provisions that some thought would be ruled unconstitutional and other controversial language has been put into a separate bill, H.R. 1775. Some of those provisions include spending limits, reduced TV and radio time, and further limiting political action committee contributions.

"Now that we've passed a balanced budget plan in our first six months, it's time to continue the process of earning the trust of the American people," said Smith. "Reforming the campaign finance system is the next big step, and I am hopeful that we will take action on this bill this fall."