[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2573 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2573

  To amend the Federal Election Campaign Act of 1971 to eliminate PAC 
  contributions to individual House of Representatives candidates, to 
   provide a tax credit and tax deduction for contributions to such 
 candidates, to provide for voluntary expenditure limitations in House 
         of Representatives elections, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 1995

  Mr. Regula introduced the following bill; which was referred to the 
Committee on House Oversight, and in addition to the Committees on Ways 
 and Means and Commerce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Election Campaign Act of 1971 to eliminate PAC 
  contributions to individual House of Representatives candidates, to 
   provide a tax credit and tax deduction for contributions to such 
 candidates, to provide for voluntary expenditure limitations in House 
         of Representatives elections, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Campaign and 
Administrative Reform Act of 1995''.

SEC. 2. BAN ON CONTRIBUTIONS BY MULTICANDIDATE POLITICAL COMMITTEES TO 
              CANDIDATES IN HOUSE OF REPRESENTATIVES ELECTIONS.

    Section 315(a)(2)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(2)(A)) is amended by inserting after ``$5,000'' the 
following: ``, except that in the case of a candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress, and the authorized committees of such a candidate, a 
multicandidate political committee may not make any contribution''.

SEC. 3. INCOME TAX CREDIT FOR CONTRIBUTIONS TO HOUSE OF REPRESENTATIVES 
              CAMPAIGNS.

    (a) General Rule.--Subpart A of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 22 the 
following new section:

``SEC. 23. CONTRIBUTIONS TO HOUSE OF REPRESENTATIVES CAMPAIGNS.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to all House of Representatives campaign 
contributions made by the individual.
    ``(b) Limitation on Amount of Credit.--The credit allowed by 
subsection (a) for a taxable year shall not exceed $50 ($100 in the 
case of a joint return).
    ``(c) Definitions.--For purposes of this section--
            ``(1) House of representatives campaign contribution.--
                    ``(A) In general.--The term `House of 
                Representatives campaign contribution' means a 
                contribution or gift of money, payment of which is made 
                during the taxable year, to an individual who is a 
                candidate for nomination or election to the office of 
                Representative in, or Delegate or Resident Commissioner 
                to, the Congress in any primary, general, or special 
                election, and which--
                            ``(i) is from a taxpayer (or either spouse 
                        in case of a joint return) who is a resident of 
                        the State in which the election is held; and
                            ``(ii) is solely for use by the recipient 
                        to further his candidacy for nomination or 
                        election to such office.
                    ``(B) State.--The term `State' includes the 
                District of Columbia, any possession of the United 
                States, and the Commonwealth of Puerto Rico.
            ``(2) Candidate.--The term `candidate' means an individual 
        who--
                    ``(A) publicly announces before the close of the 
                calendar year following the calendar year in which the 
                contribution or gift is made that he is a candidate for 
                nomination or election to one of the offices specified 
                in paragraph (1)(A); and
                    ``(B) meets the qualifications prescribed by law to 
                hold such office.''
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 22 the following new item:

                              ``Sec. 23. Contributions to House of 
                                        Representatives campaigns.''
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions paid after December 31, 1995, in taxable years 
ending after that date.

SEC. 4. INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO HOUSE OF 
              REPRESENTATIVES CAMPAIGNS.

    (a) General Rule.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by inserting after section 217 
the following new section:

``SEC. 218. CONTRIBUTIONS TO HOUSE OF REPRESENTATIVES CAMPAIGNS.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a deduction any House of Representatives campaign 
contribution which is made by such individual.
    ``(b) Limitations.--
            ``(1) Amount allowed as credit.--This section shall not 
        apply with respect to any amount which is allowed as a credit 
        under section 23 (relating to contributions to House of 
        Representatives campaigns).
            ``(2) Amount of deduction.--The deduction allowed by 
        subsection (a) for a taxable year shall not exceed an aggregate 
        of $250 ($500 in the case of a joint return).
    ``(c) Definitions.--Terms used in this section which are also used 
in section 23 (relating to contributions to House of Representatives 
campaigns) shall have the respective meanings given such terms by 
section 23(c).''
    (b) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 217 the following new item:

                              ``Sec. 218. Contributions to House of 
                                        Representatives campaigns.''
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions paid after December 31, 1995, in taxable years 
ending after that date.

SEC. 5. VOLUNTARY EXPENDITURE LIMITATIONS AND FREE BROADCAST TIME FOR 
              HOUSE OF REPRESENTATIVES GENERAL ELECTIONS.

    The Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is 
amended by adding at the end the following new title:

 ``TITLE V--VOLUNTARY EXPENDITURE LIMITATIONS AND FREE BROADCAST TIME 
             FOR HOUSE OF REPRESENTATIVES GENERAL ELECTIONS

    ``Sec. 501. As used in this title, the term--
            ``(1) `eligible candidate' means a candidate who is 
        eligible under section 502 to receive free broadcast time;
            ``(2) `general election' means any election which will 
        directly result in the election of a person to the office of 
        Representative in, or Delegate or Resident Commissioner to, the 
        Congress but does not include an open primary election; and
            ``(3) `election cycle' means the term beginning on the day 
        after the date of the last previous general election for 
        Representative in, or Delegate or Resident Commissioner to, the 
        Congress and ending on the date of the next general election.
    ``Sec. 502. (a) To be eligible to receive free broadcast time under 
section 315(c) of the Communications Act of 1934 (47 U.S.C. 315(c)), a 
candidate for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress who qualifies for the general election 
ballot under State law shall, not later than 7 days after such 
qualification, agree in writing that the candidate and the candidate's 
authorized committees--
            ``(1) has not and will not make any expenditure which 
        exceeds the limitation under section 503;
            ``(2) has not and will not accept any contribution which 
        exceeds a limitation under section 315(a);
            ``(3) will deposit all payments received under this section 
        in a separate checking account in a depository institution 
        referred to in section 302(h)(1), which shall contain only 
        amounts so received and from which all expenditures of such 
        amounts shall be made; and
            ``(4) will furnish campaign records, evidence of 
        contributions, and other appropriate information to the 
        Commission.
    ``(b) To be eligible to receive free broadcast time under section 
315(c) of the Communications Act of 1934 (47 U.S.C. 315(c)), a 
candidate for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress who qualifies for the general election 
ballot under State law shall certify to the Commission that--
            ``(1) during the period beginning on January 1 of the 
        calendar year preceding the year of a general election, or in 
        the case of a special election during the period beginning on 
        the day on which the vacancy occurs in the office involved, 
        such candidate and the authorized committees of such candidate 
        have received contributions aggregating 10 percent of the 
        applicable limitation under section 503(b);
            ``(2) 80 percent of such contributions have come from 
        individuals residing in such candidate's State; and
            ``(3) at least one other candidate has qualified for the 
        general election ballot.
    ``(c) For purposes of subsection (b)(1), in determining the amount 
of contributions received by a candidate and the candidate's authorized 
committees--
            ``(1) no contribution other than a contribution of money 
        made by a written instrument which identifies the person making 
        the contribution shall be taken into account;
            ``(2) no contribution that is considered a contribution by 
        an intermediary under section 315(a)(8) shall be taken into 
        account; and
            ``(3) no contribution received from any person other than 
        an individual shall be taken into account, and no contribution 
        received from an individual shall be taken into account to the 
        extent such contribution exceeds $500 when added to the amount 
        of all other contributions made by such individual to or for 
        the benefit of such candidate during the applicable period 
        specified in paragraph (1).
    ``Sec. 503. (a) A candidate who receives free broadcast time under 
section 315(c) of the Communications Act of 1934 (47 U.S.C. 315(c)) for 
a general election shall not make expenditures during that election 
cycle from the personal funds of such candidate, which, in the 
aggregate, exceed $40,000.
    ``(b) Except as provided in subsection (c) and section 504, a 
candidate who receives free broadcast time under section 315(c) of the 
Communications Act of 1934 (47 U.S.C. 315(c)) for a general election 
shall not make expenditures during the election cycle that cover such 
general election which, in the aggregate, exceed $500,000.
    ``(c) A candidate who receives free broadcast time under section 
315(c) of the Communications Act of 1934 (47 U.S.C. 315(c)) and who 
participates in a primary runoff election may make additional 
expenditures for such primary runoff election which in the aggregate do 
not exceed $150,000.
    ``(d) An eligible candidate may make expenditures without regard to 
the limitations set forth in this section if any candidate in the same 
general election makes aggregate expenditures during the election cycle 
which exceed the amount of the limitation set forth in subsection (b).
    ``(e) The limitations established by subsections (b) and (c) shall 
be adjusted in the manner provided in section 315(c), except that, for 
the purposes of such adjustment, the base period shall be calendar year 
1996.
    ``Sec. 504. An eligible candidate shall be entitled to receive free 
radio and television broadcast time under section 315(c) of the 
Communications Act of 1934 (47 U.S.C. 315(c)).''.

SEC. 6. ALLOCATION TO HOUSE OF REPRESENTATIVES CANDIDATES OF FREE 
              BROADCAST TIME FOR POLITICAL ADVERTISING.

    (a) Condition of License Renewal.--Section 309(h) of the 
Communications Act of 1934 (47 U.S.C. 309(h)) is amended by inserting 
before the period at the end thereof the following: ``; and (4) every 
broadcast station license issued under this Act shall be subject to the 
free broadcast time obligations imposed by section 315(c)''.
    (b) Free Time Obligations.--Section 315 of the Communications Act 
of 1934 (47 U.S.C. 315) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c)(1) Each licensee for a broadcasting station shall annually 
make available free broadcast time for political advertising in 
accordance with the requirements of this subsection. The Commission 
shall not renew the license of any licensee who substantially fails or 
refuses to comply with the requirements of this subsection, but such 
licensee shall not be subject to any other sanction or remedy for such 
failure or refusal.
    ``(2) A licensee subject to this subsection shall allot free 
broadcast time to each qualified political candidate in accordance with 
the following standards:
            ``(A) Such licensee shall allot an equal amount, but not 
        less than 2 hours, of free broadcast time each even-numbered 
        year to each qualified political candidate in a statewide or 
        national election. In the case of a station whose market does 
        not encompass all of a congressional district, such licensee 
        may apportion to each qualified candidate from such district a 
        fraction of such 2 hours that is equal to the fraction of such 
        district's population that resides within such market, as 
        determined in accordance with regulations prescribed by the 
        Commission.
            ``(B) The free broadcast time allotted to any candidate 
        under subparagraph (A) shall be composed of units of varying 
        lengths of not more than 5 minutes nor less than 10 seconds, as 
        determined by negotiation between such organization and the 
        licensee.
            ``(C) The broadcast time allotted by any licensee shall be 
        allotted so that--
                    ``(i) at least one-half is broadcast during the 
                hours of 7:00 p.m. to 10:00 p.m.;
                    ``(ii) during any election year, at least two-
                thirds is broadcast during the 2 months immediately 
                preceding election day and at least one-half is 
                broadcast during the 3 weeks immediately preceding 
                election day;
                    ``(iii) each qualified candidate is allotted free 
                broadcast time that is comparable, by time of day and 
                day of week, to the time allotted to other qualified 
candidates for the same office; and
                    ``(iv) no broadcaster shall allot more than 4\1/2\ 
                hours per week of free broadcast time for political 
                advertising and, if the amount of time required to or 
                allotted by this paragraph would exceed 4\1/2\ hours, 
                the time required to be allotted each qualified 
                candidate shall be reduced proportionately.
            ``(D) The broadcast time shall be used solely for 
        programming consisting of unedited segments in which the 
        candidate speaks directly to the audience.
    ``(3) A candidate shall be treated as a qualified political 
candidate for purposes of paragraph (2)(A) if the candidate is an 
eligible candidate for purposes of section 501 of the Federal Election 
Campaign Act of 1971.
    ``(4) A licensee allots free broadcast time as required by this 
subsection by broadcasting statements without remuneration or 
compensation in any form, whether by public or private funds, tax 
deduction or credit, or otherwise.
    ``(5) Nothing in this subsection, and no use of free broadcast time 
allotted under this subsection, shall be construed to restrict or 
otherwise affect the purchase of advertising time under subsection (b) 
of this section.''.

SEC. 7. BAN ON SOFT MONEY.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.) is amended by adding at the end the 
following new section:

  ``limitations and reporting requirements for amounts paid for mixed 
                          political activities

    ``Sec. 323. (a) Any payment by the national committee of a 
political party or a State committee of a political party for a mixed 
political activity--
            ``(1) shall be subject to limitation and reporting under 
        this Act as if such payment were an expenditure; and
            ``(2) may be paid only from an account that is subject to 
        the requirements of this Act.
    ``(b) As used in this section, the term `mixed political activity' 
means, with respect to a payment by the national committee of a 
political party or a State committee of a political party, an activity, 
such as a voter registration program, a get-out-the-vote drive, or 
general political advertising, that is both (1) for the purpose of 
influencing an election for Federal office, and (2) for any purpose 
unrelated to influencing an election for Federal office.''.
    (b) Repeal of Building Fund Exception to the Definition of the Term 
``Contribution''.--Section 301(8)(B) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
            (1) by striking out clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.

SEC. 8. HOUSE OF REPRESENTATIVES ELECTION LIMITATION ON CONTRIBUTIONS 
              FROM PERSONS OTHER THAN IN-STATE INDIVIDUAL RESIDENTS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), is amended by adding at the end the following new subsection:
    ``(i)(1) At least 80 percent of the contributions accepted by a 
candidate for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress with respect to a reporting period for an 
election shall be from in-State individual residents.
    ``(2) As used in this subsection, the term `in-State individual 
resident' means an individual who resides in the State in which the 
congressional district involved is located.
    ``(3)(A) Any candidate who accepts contributions that exceed the 
limitation under this subsection with respect to the pre-election 
report period or the post-election report period shall pay to the 
Commission, for deposit in the Treasury, an amount equal to 5 times the 
amount of the excess contributions plus a civil penalty in an amount 
determined by the Commission.
    ``(B) Any candidate who accepts contributions that exceed the 
limitation under this subsection with respect to a period other than a 
period referred to in subparagraph (A) shall pay to the Commission, for 
deposit in the Treasury, an amount equal to 3 times the amount of the 
excess contributions.
    ``(C) Each report under section 304(a)(6) shall include a 
certification by the treasurer of the committee that the contributions 
reported do not exceed the limitation under this subsection.''.

SEC. 9. INCREASED LIMITATION AMOUNT FOR CERTAIN CONTRIBUTIONS TO 
              POLITICAL COMMITTEES OF STATE POLITICAL PARTIES.

    Section 315(a)(1)(B) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(1)(B)) is amended by inserting after ``national'' the 
following: ``or State''.

SEC. 10. DISCLOSURE OF ELECTION-RELATED ACTIVITY BY CORPORATIONS, LABOR 
              ORGANIZATIONS AND NONPROFIT ORGANIZATIONS.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following new subsection:
    ``(d) Any corporation, labor organization, or nonprofit 
organization that makes a payment for a communication or other activity 
that--
            ``(1) relates to any election for Federal office; and
            ``(2) in the case of a corporation or labor organization, 
        by reason of subparagraph (A) or (B) of paragraph (2) of 
        section 316(b), is not a contribution or expenditure;
shall report such payment to the Commission in the same manner as a 
contribution or expenditure, as the case may be, is reported by a 
principal campaign committee of a candidate for the House of 
Representatives or the Senate under this section.''.

SEC. 11. PROHIBITION OF BUNDLING OF CONTRIBUTIONS TO CANDIDATES BY 
              POLITICAL ACTION COMMITTEES AND LOBBYISTS.

    Section 316 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441b) is amended by adding at the end the following new subsection:
    ``(c) No nonparty multicandidate political committee or person 
required to register under the Federal Regulation of Lobbying Act (2 
U.S.C. 261 et seq.) may act as an intermediary or conduit with respect 
to a contribution to a candidate for Federal office.''.

SEC. 12. PROHIBITION OF LEADERSHIP COMMITTEES; RESTRICTION ON 
              CONTRIBUTIONS BETWEEN PRINCIPAL CAMPAIGN COMMITTEES.

    (a) Leadership Committee Prohibition.--Section 302 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 432) is amended by adding at 
the end the following new subsection:
    ``(j) A candidate for Federal office may not establish, maintain, 
finance, or control a political committee, other than the principal 
campaign committee of the candidate.''.
    (b) Principal Campaign Committee Restriction.--Section 315 of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 441a), as amended by 
section 8, is further amended by adding at the end the following new 
subsection:
    ``(j) A principal campaign committee of a candidate for Federal 
office may not make any contribution to any other principal campaign 
committee (other than the principal campaign committee of the same 
individual as a candidate for another Federal office).''.

SEC. 13. SEVERABILITY.

    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.

SEC. 14. EFFECTIVE DATE.

    This Act and the amendments made by this Act, except for such 
sections specifically designated otherwise, shall become effective on 
November 6, 1996, and shall apply to all contributions and expenditures 
made after such date.
                                 <all>
HR 2573 IH----2