[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1528 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1528

  To reform the financing of Senate campaigns, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 25, 1996

  Mr. Bradley introduced the following bill; which was read twice and 
         referred to the Committee on Rules and Administration

_______________________________________________________________________

                                 A BILL


 
  To reform the financing of Senate campaigns, 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 ``Senate Campaign Finance Reform Act 
of 1996''.

SEC. 2. SENATE ELECTION CAMPAIGN FINANCING.

    (a) Amendment of the Federal Election Campaign Act of 1971.--The 
Federal Election Campaign Act of 1971 is amended by adding at the end 
the following new title:

             ``TITLE V--SENATE ELECTION CAMPAIGN FINANCING

``SEC. 501. SENATE CAMPAIGN FINANCING.

    ``No Senate candidate or authorized committee of a Senate candidate 
shall accept any contribution with respect to a general election or 
make any expenditures with respect to a general election except as 
provided in this title.

``SEC. 502. REQUIREMENTS FOR RECEIPT OF BENEFITS.

    ``(a) Eligible Senate Candidate.--For purposes of this title, a 
Senate candidate is an eligible Senate candidate if the candidate files 
a declaration with the Secretary of the Senate under penalty of perjury 
stating that--
            ``(1) the candidate agrees in writing to participate in at 
        least 2 debates, sponsored by a nonpartisan or bipartisan 
        organization, with all other candidates for that office who are 
        receiving payments under this title;
            ``(2) the candidate and the candidate's authorized 
        committees will not accept any contribution with respect to a 
        general election or make any expenditure with respect to a 
        general election except from funds provided under this title;
            ``(3) the candidate and the authorized committees of such 
        candidate did not accept contributions, or make expenditures, 
        for the primary or runoff election in excess of the limitations 
        under subsection (b); and
            ``(4) the candidate and the authorized committees of such 
        candidate--
                    ``(A) will deposit all payments received under this 
                title in an account insured by the Federal Deposit 
                Insurance Corporation from which funds may be withdrawn 
                by check or similar means of payment to third parties; 
                and
                    ``(B) will furnish campaign records, evidence of 
                contributions, and other appropriate information to the 
                Commission.
    ``(b) Primary and Runoff Expenditure and Contribution 
Limitations.--The requirements of this subsection are met if--
            ``(1) the candidate and the candidate's authorized 
        committees have not received contributions from any individual 
        for the primary or runoff election which in the aggregate 
        exceed $100;
            ``(2) all contributions received by the candidate and the 
        candidate's authorized committees are from individuals; and
            ``(3) the candidate and the candidate's authorized 
        committees did not make expenditures for the primary or runoff 
        election in excess of 50 percent of the total amount that will 
        be available to all candidates in the State for the general 
        election under section 504(b) (based on the State's estimate of 
        the total amount made 30 days prior to the date of the primary 
        or runoff election).
    ``(c) Time for Filing.--The declaration under subsection (a) shall 
be filed not later than 7 days after the earlier of--
            ``(1) the date the candidate qualifies for the general 
        election ballot under State law; or
            ``(2) if, under State law, a primary or runoff election to 
        qualify for the general election ballot occurs after September 
        1, the date the candidate wins the primary or runoff election.

``SEC. 503. CERTIFICATION BY COMMISSION.

    ``(a) Request.--Each eligible Senate candidate seeking to receive 
benefits under this title shall submit a request to the Commission, at 
such time and in such manner as the Commission may require in 
regulations, containing--
            ``(1) a copy of the declaration filed pursuant to section 
        502(a);
            ``(2) such additional information as the Commission may 
        require in regulations; and
            ``(3) a verification signed by the candidate and the 
        treasurer of the principal campaign committee of such candidate 
        stating that the information furnished in support of the 
        request is correct and fully satisfies the requirements of this 
        title.
    ``(b) Certification.--
            ``(1) Issuance.--Not later than 48 hours after a Senate 
        candidate files a request with the Commission to receive 
        benefits under this title, the Commission shall--
                    ``(A) issue a certification to each candidate who 
                satisfies the requirements of section 502;
                    ``(B) calculate the amount of payments to which 
                such candidate is entitled pursuant to section 504; and
                    ``(C) transmit notification of the certification to 
                the Secretary of the Senate.
            ``(2) Revocation.--The Commission shall revoke such 
        certification if the Commission determines a candidate fails to 
        continue to satisfy the requirements of section 502.
    ``(c) Determinations by Commission.--All determinations (including 
certifications under subsection (b)) made by the Commission under this 
title shall be final and conclusive, except to the extent that they are 
subject to judicial review under section 505.

``SEC. 504. BENEFITS ELIGIBLE SENATE CANDIDATES ENTITLED TO RECEIVE.

    ``(a) Use of Free Broadcast Time.--
            ``(1) In general.--Each eligible Senate candidate shall be 
        entitled to free broadcast time as provided under section 315A 
        of the Communications Act of 1934.
            ``(2) Broadcast duration.--Free broadcast time shall be 
        used in segments of not less than 1 minute.
    ``(b) General Election Campaign Financing.--
            ``(1) Amount of payments.--(A) Each eligible Senate 
        candidate in a State shall receive a payment for the general 
        election in an amount equal to the State share divided by the 
        number of eligible Senate candidates in the State.
            ``(B) For purposes of this paragraph, the term `State 
        share' means, with respect to a State, the sum of--
                    ``(i) 50 percent of the funds in the Senate 
                Election Campaign Fund which are attributable to 
                donations from taxpayers from such State and which 
remain in the fund after the last election for the office of United 
States Senator in that State, and interest allocable to such portion, 
plus
                    ``(ii) 50 percent of the funds in the Senate 
                Election Campaign Fund which are attributable to 
                donations from taxpayers from such State after such 
                election and before the 2d calendar year preceding the 
                calendar year of the election, and interest allocable 
                to such portion, plus
                    ``(iii) 100 percent of the funds in the Senate 
                Election Campaign Fund which are attributable to 
                donations from taxpayers from such State during the 2 
                calendar years preceding the calendar year of the 
                election, and interest allocable to such portion.
            ``(C) For purposes of this paragraph, donations made to the 
        Senate Election Campaign Fund which are included with an income 
        tax return for a taxable year under section 6097 of the 
        Internal Revenue Code of 1986 shall be treated as made on the 
        last day of the calendar year in which the taxable year ends.
            ``(2) Free broadcast time.--Free broadcast time provided 
        pursuant to subsection (a) shall not be used in calculating the 
        amount a candidate is entitled to receive under this 
        subsection.

``SEC. 505. JUDICIAL REVIEW.

    ``(a) Judicial Review.--Any agency action by the Commission made 
under this title shall be subject to review by the United States Court 
of Appeals for the District of Columbia Circuit upon petition filed in 
such court not later than 30 days after the agency action by the 
Commission for which review is sought. It shall be the duty of the 
Court of Appeals, ahead of all matters not filed under this title, to 
advance on the docket and expeditiously take action on all petitions 
filed pursuant to this title.
    ``(b) Application of Title 5.--The provisions of chapter 7 of title 
5, United States Code, shall apply to judicial review of any agency 
action by the Commission.
    ``(c) Agency Action.--For purposes of this section, the term 
`agency action' has the meaning given such term by section 551(13) of 
title 5, United States Code.

``SEC. 506. PARTICIPATION BY COMMISSION IN JUDICIAL PROCEEDINGS.

    ``(a) Appearances.--The Commission is authorized to appear in and 
defend against any action instituted under this section and under 
section 505 either by attorneys employed in its office or by counsel 
whom it may appoint without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive service, and 
whose compensation it may fix without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of such title.
    ``(b) Institution of Actions.--The Commission is authorized, 
through attorneys and counsel described in subsection (a), to institute 
actions in the district courts of the United States to seek recovery of 
any amounts determined under this title to be payable to the Secretary 
of the Treasury.
    ``(c) Injunctive Relief.--The Commission is authorized, through 
attorneys and counsel described in subsection (a), to petition the 
courts of the United States for such injunctive relief as is 
appropriate in order to implement any provision of this title.
    ``(d) Appeals.--The Commission is authorized on behalf of the 
United States, to appeal from, and to petition the Supreme Court for 
certiorari to review of, judgments or decrees entered with respect to 
actions in which it appears pursuant to the authority provided in this 
section.

``SEC. 508. PAYMENTS RELATING TO CANDIDATES.

    ``(a) Establishment of Campaign Fund.--
            ``(1) Establishment.--There is established on the books of 
        the Treasury of the United States a special fund to be known as 
the `Senate Election Campaign Fund'.
            ``(2) Appropriations.--(A) There are appropriated to the 
        Fund for each fiscal year, out of amounts in the general fund 
        of the Treasury not otherwise appropriated, amounts equal to 
        any contributions by persons which are specifically designated 
        as being made to the Fund.
            ``(B) The Secretary of the Treasury shall, from time to 
        time, transfer to the Fund an amount not in excess of the 
        amounts described in subparagraph (A).
            ``(C) Amounts in the Fund shall remain available without 
        fiscal year limitation.
            ``(3) Availability of funds.--Amounts in the Fund shall be 
        available only for the purposes of making payments required 
        under this title.
            ``(4) Accounts.--The Secretary of the Treasury shall 
        maintain such accounts in the Fund as may be required by this 
        title or which the Secretary of the Treasury determines to be 
        necessary to carry out this title.
    ``(b) Payments Upon Certification.--Upon receipt of a certification 
from the Commission under section 503, the Secretary of the Treasury 
shall promptly pay the amount certified by the Commission to the 
candidate out of the Senate Election Campaign Fund.
    ``(c) Management of Fund.--The provisions of section 9602 of the 
Internal Revenue Code of 1986 shall apply to the Senate Election 
Campaign Fund.

``SEC. 507. REPORTS TO CONGRESS; REGULATIONS.

    ``(a) Reports.--
            ``(1) Requirement.--The Commission shall, as soon as 
        practicable after each election, submit a full report to the 
        Senate setting forth--
                    ``(A) the expenditures (shown in such detail as the 
                Commission determines appropriate) made by each 
                eligible Senate candidate and the authorized committees 
                of such candidate;
                    ``(B) the amounts certified by the Commission under 
                section 503 as benefits available to each Senate 
                candidate; and
                    ``(C) the balance in the Senate Election Campaign 
                Fund, and the balance in any account maintained by the 
                Fund.
            ``(2) Printing.--Each report submitted pursuant to this 
        section shall be printed as a Senate document.
    ``(b) Rules and Regulations.--The Commission is authorized to 
prescribe such rules and regulations, in accordance with the provisions 
of subsection (c), to conduct such examinations and investigations, and 
to require the keeping and submission of such books, records, and 
information, as it deems necessary to carry out the functions and 
duties imposed on it by this title.
    ``(c) Statement to Senate.--Not later than 30 days before 
prescribing any rule or regulation under subsection (b), the Commission 
shall transmit to the Senate a statement setting forth the proposed 
rule or regulation and containing a detailed explanation and 
justification of such rule or regulation.''.
    (b) Provisions To Facilitate Voluntary Contributions to Senate 
Election Campaign Fund.--
            (1) General rule.--Part VIII of subchapter A of chapter 61 
        of the Internal Revenue Code of 1986 (relating to returns and 
        records) is amended by adding at the end the following:

   ``Subpart B--Designation of Additional Amounts to Senate Election 
                             Campaign Fund

                              ``Sec. 6097. Designation of additional 
                                        amounts.

``SEC. 6097. DESIGNATION OF ADDITIONAL AMOUNTS.

    ``(a) General Rule.--Every individual (other than a nonresident 
alien) who files an income tax return for any taxable year may 
designate an additional amount which is not less than $1 and not more 
than $5,000 to be paid over to the Senate Election Campaign Fund 
established under section 508 of the Federal Election Campaign Act of 
1971.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made for any taxable year only at the time of 
filing the income tax return for the taxable year. Such designation 
shall be made on the page bearing the taxpayer's signature.
    ``(c) Treatment of Additional Amounts.--Any additional amount 
designated under subsection (a) for any taxable year shall, for all 
purposes of law, be treated as an additional income tax imposed by 
chapter 1 for such taxable year.
    ``(d) Income Tax Return.--For purposes of this section, the term 
`income tax return' means the return of the tax imposed by chapter 
1.''.
            (2) Conforming amendments.--(A) Part VIII of subchapter A 
        of chapter 61 of such Code is amended by striking the heading 
        and inserting:

     ``PART VIII--DESIGNATION OF AMOUNTS TO ELECTION CAMPAIGN FUNDS

                              ``Subpart A. Presidential Election 
                                        Campaign Fund.
                              ``Subpart B. Designation of additional 
                                        amounts to Senate Election 
                                        Campaign Fund.

          ``Subpart A--Presidential Election Campaign Fund''.

            (B) The table of parts for subchapter A of chapter 61 of 
        such Code is amended by striking the item relating to part VIII 
        and inserting:

                              ``Part VIII. Designation of amounts to 
                                        election campaign funds.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 1995.
    (c) Amendment of Communications Act of 1934.--Title III of the 
Communications Act of 1934 (47 U.S.C. 301 et seq.) is amended by 
inserting after section 315 the following new section:

              ``free broadcast time for senate candidates

    ``Sec. 315A. (a)(1) Notwithstanding section 315, a licensee shall 
make available 2 hours of free broadcast time to each eligible Senate 
candidate (as defined in section 502 of the Federal Election Campaign 
Act of 1971) in each State within its broadcast area. The licensee 
shall make at least 1 hour of the free broadcast time available during 
a prime time access period.
    ``(2) A licensee shall make free broadcast time available pursuant 
to this section during the period beginning on the date that is 90 days 
before the date of a general election or special election for the 
Senate and ending on the day before the date of the election.
    ``(3) As used in this subsection, the term `prime time access 
period' means the time between 7 p.m. and 10 p.m. of a weekday.
    ``(b) An appearance by a Senate candidate on a news or public 
service program at the invitation of a broadcasting station or other 
organization that presents such a program shall not be counted toward 
time made available pursuant to subsection (a).
    ``(c)(1) A licensee shall make available free broadcast time in 
accordance with this subsection to any eligible Senate candidate (as 
defined in section 502 of the Federal Election Campaign Act of 1971) in 
each State within its broadcast area if--
            ``(A) broadcast time was made available by the licensee and 
        the payment for such time constituted an independent 
        expenditure (as defined in section 301(17) of the Federal 
        Election Campaign Act of 1971 (2 U.S.C. 431(17)); and
            ``(B) such independent expenditure was in opposition to, or 
        on behalf of an opponent of, such eligible Senate candidate.
    ``(2) A person who reserves broadcast time the payment for which 
would constitute an independent expenditure within the meaning of 
section 301(17) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431(17)) shall--
            ``(A) inform the licensee that payment for the broadcast 
        time will constitute an independent expenditure; and
            ``(B) inform the licensee of the names of all candidates 
        for the office to which the proposed broadcast relates.
    ``(3) Free broadcast time under this subsection shall be provided 
within a reasonable period of time after the broadcast time 
constituting the independent expenditure described in paragraph (1), 
and shall be for the same class and amount of time, and during the same 
period of the day, as such broadcast time.''.

SEC. 3. SOFT MONEY OF POLITICAL PARTIES.

    (a) Limitations on Political Party Committees.--Title III of the 
Federal Election Campaign Act of 1971 is amended by inserting at the 
end the following new section:

                      ``political party committees

    ``Sec. 324. (a) Limitations on National Committees.--(1) A national 
committee of a political party, including the congressional campaign 
committees of a political party, and any entity that is established, 
financed, maintained, or controlled by a national committee of a 
political party, including the national congressional campaign 
committees of a political party, and any officer or agents of such 
party committees or entity, shall not solicit or accept contributions 
or transfers not subject to the limitations, prohibitions, and 
reporting requirements of this Act.
    ``(2) Any amount solicited, received, expended, or disbursed 
directly or indirectly by a national, State, district, or local 
committee of a political party during a calendar year which might 
affect the outcome of a Federal election shall be subject to the 
limitations, prohibitions, and reporting requirements of this Act, 
including--
            ``(A) voter registration;
            ``(B) get-out-the-vote activity;
            ``(C) generic campaign activity; and
            ``(D) any communication that identifies a Federal candidate 
        (regardless of whether a State or local candidate is also 
        mentioned or identified).
    ``(b) State, District, and Local Committees.--(1) Subsection (a) 
shall not apply to expenditures or disbursements made by a State, 
district, or local committee of a political party for--
            ``(A) a contribution to a candidate other than for Federal 
        office, if such contribution is not designated or otherwise 
        earmarked to pay for activities described in subsection (a)(2);
            ``(B) the costs of a State, district, or local political 
        convention;
            ``(C) the non-Federal share of a State, district, or local 
        party committee's administrative and overhead expenses 
        (excluding the compensation in any month of any individual who 
        spends more than 20 percent of his or her time on activity 
        during such month which may affect the outcome of a Federal 
        election), as determined under subsection (c);
            ``(D) the costs of grassroots campaign materials, including 
        buttons, bumper stickers, and yard signs, which solely name or 
        depict a State or local candidate; and
            ``(E) the cost of any campaign activity conducted solely on 
        behalf of a clearly identified State or local candidate, 
        excluding activities described under subsection (a)(2).
    ``(2) For purposes of paragraph (1)(C), the non-Federal share of a 
party committee's administrative and overhead expenses shall be 
determined by applying the ratio of the non-Federal disbursements to 
the total Federal expenditures and non-Federal disbursements made by 
the committee during the previous Presidential election year to the 
committee's administrative and overhead expenses in the election year 
in question.
    ``(c) Fundraising Expenditures.--Any amount spent by a national 
committee of a political party, including the congressional campaign 
committees of a political party, and any entity that is established, 
financed, maintained, or controlled by a national committee of a 
political party, including the national congressional campaign 
committees of a political party, and any officer or agents of such 
party committees or entity to raise funds that are used, in whole or in 
part, in connection with the activities described in subsection (b) 
shall be made from funds subject to the limitations, prohibitions, and 
reporting requirements of this Act.''.
    (b) Restrictions on Fundraising by Candidates and Officeholders.--
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) The limitations, prohibitions, and reporting requirements 
of this Act shall apply to the solicitation for, and receipt of funds 
by, a candidate for Federal office, an individual holding Federal 
office, or any agent of such candidate or officeholder, in connection 
with any Federal election.
    ``(2) Paragraph (1) shall not apply to the solicitation or receipt 
of funds by an individual who is a candidate for a non-Federal office 
if such activity is permitted under State law.''.
    (c) Reporting Requirements.--
            (1) National committees.--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) Political Committees.--(1) The national committee of a 
political party, any congressional campaign committee of a political 
party, and any subordinate committee of either, shall report all 
receipts and disbursements during the reporting period, whether or not 
in connection with an election for Federal office.
    ``(2) Any political committee to which paragraph (1) does not apply 
shall report any receipts or disbursements that are used in connection 
with a Federal election.
    ``(3) If a political committee has receipts or disbursements to 
which this subsection applies from any person aggregating in excess of 
$200 for any calendar year, the political committee shall separately 
itemize its reporting for such person in the same manner as required in 
subsection (b) (3)(A), (5), or (6).
    ``(4) Reports required to be filed under this subsection shall be 
filed for the same time periods required for political committees under 
subsection (a).''.
            (2) Report of exempt contributions.--Section 301(8) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)) is 
        amended by inserting at the end the following:
            ``(C) The exclusion provided in subparagraph (B)(viii) 
        shall not apply for purposes of any requirement to report 
        contributions under this Act, and all such contributions 
        aggregating in excess of $200 shall be reported.''.
            (3) Reports by state committees.--Section 304 of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434), as 
        amended by paragraph (1), is amended by adding at the end the 
        following new subsection:
    ``(e) Filing of State Reports.--In lieu of any report required to 
be filed by this Act, the Commission may allow a State committee of a 
political party to file with the Commission a report required to be 
filed under State law if the Commission determines such reports contain 
substantially the same information.''.
            (4) Other reporting requirements.--
                    (A) Authorized committees.--Section 304(b)(4) of 
                the Federal Election Campaign Act of 1971 (2 U.S.C. 
                434(b)(4)) is amended--
                            (i) by striking ``and'' at the end of 
                        subparagraph (H);
                            (ii) by inserting ``and'' at the end of 
                        subparagraph (I); and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(J) in the case of an authorized committee, 
                disbursements for the primary election, the general 
                election, and any other election in which the candidate 
                participates;''.
                    (B) Names and addresses.--Section 304(b)(5)(A) of 
                the Federal Election Campaign Act of 1971 (2 U.S.C. 
                434(b)(5)(A)) is amended--
                            (i) by striking ``within the calendar 
                        year''; and
                            (ii) by inserting ``, and the election to 
                        which the operating expenditure relates'' after 
                        ``operating expenditure''.

SEC. 4. PUBLIC SERVICE ANNOUNCEMENTS.

    Beginning on September 1 and continuing through November 1 of each 
election year, the Federal Election Commission shall carry out a 
program, utilizing public service announcements, to provide basic 
information to the public about--
            (1) voter registration, including locations and times; and
            (2) voting requirements.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, the 
amendments made by, and the provisions of, this Act shall take effect 
on the date of enactment of this Act, but shall not apply with respect 
to activities in connection with any election occurring before December 
31, 1996.
    (b) Contributions and Expenditures Before Date of Enactment.--This 
Act, and the amendments made by this Act, shall not apply to 
contributions and expenditures made before the date of enactment of 
this Act.
                                 <all>
S 1528 IS----2