[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 506 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 506

   To amend the Federal Election Campaign Act of 1971 to provide for 
 public funding for House of Representatives elections, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1997

 Mr. Andrews introduced the following bill; which was referred to the 
                      Committee on House Oversight

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Election Campaign Act of 1971 to provide for 
 public funding for 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. PUBLIC FUNDING FOR HOUSE OF REPRESENTATIVES ELECTIONS.

    The Federal Election Campaign Act of 1971 is amended by adding at 
the end the following new title:

    ``TITLE V--PUBLIC FUNDING FOR HOUSE OF REPRESENTATIVES ELECTIONS

``SEC. 501. QUALIFICATIONS FOR PUBLIC FUNDING.

    ``A House of Representatives candidate qualifies for public funding 
if, as determined by the Commission--
            ``(1) at least 6 weeks before the general election, the 
        candidate obtains the signatures of 3 percent of the registered 
        voters in the congressional district involved; or
            ``(2) the candidate is the candidate of a political party, 
        the candidate of which, in the preceding general election, 
        received more than 25 percent of the vote.

``SEC. 502. LIMITATIONS ON CONTRIBUTIONS TO QUALIFYING HOUSE OF 
              REPRESENTATIVES CANDIDATES.

    ``(a) Individual Contributions Requirement.--A qualifying House of 
Representatives candidate may not accept contributions other than 
contributions from individuals that total not more than $100 per 
individual per election cycle.
    ``(b) In-State Contribution Requirement.-- With respect to each 
reporting period for an election, at least 80 percent of the total sum 
of contributions accepted by a qualifying House of Representatives 
candidate shall be from the State in which the congressional district 
involved is located.

``SEC. 503. USE OF PUBLIC FUNDING.

    ``(a) In General.--A qualifying House of Representatives candidate 
may use public funds only for--
            ``(1) buying time on radio, cable, or television broadcast 
        stations;
            ``(2) buying rental space on billboards or other outdoor 
        signs;
            ``(3) buying advertising space in magazines, newspapers, 
        periodicals, and other advertising media, including theaters, 
        the internet, and the worldwide web;
            ``(4) payment of the cost of producing advertisements for 
        media referred to in paragraphs (1), (2), and (3);
            ``(5) procurement of computerized campaign software, voter 
        lists, and other voter contact tools;
            ``(6) payment of the cost of printing and mailing campaign 
        literature;
            ``(7) payment of the cost of telephone expenses;
            ``(8) payment of legal and accounting costs associated with 
        campaigning;
            ``(9) payment of campaign employees' salaries;
            ``(10) payment of the cost of campaign office equipment and 
        supplies; and
            ``(11) payment of incidental expenses of the candidate, 
        such as travel and food.
    ``(b) Specific Exclusion.--A qualifying House of Representatives 
candidate may not use public funds under this title to pay the 
candidate a salary or personal mortgages.
    ``(c) Calculation of Public Disbursement.--A qualifying House of 
Representatives candidate shall receive public funds closely 
approximating the cost of procuring 2\1/2\ hours of television 
commercial time on local television stations in the district's media 
markets. An exact amount shall be determined by the Commission, using 
(i) the average cost of a media point per media market, as defined by 
Arbitron Area of Dominant Influence, for the 4th quarter of the 
preceding calendar year, and (ii) a multiplier of 5,000 media points. 
The funds may be used for any purpose specified in subsection (a).
    ``(d) Disbursements.--The Commission shall make disbursements of 
public funds under this title upon submission of evidence that an 
eligible expense has been incurred. No disbursement may be made with 
respect to an expense incurred more than 4 months before the election 
involved.

``SEC. 504. MAXIMUM AMOUNT OF PUBLIC FUNDING.

    ``(a) In General.--The maximum amount of public funding that a 
qualifying House of Representatives candidate may receive is $750,000.
    ``(b) Indexing.--The amount under subsection (a) shall be increased 
as of the beginning of each even-numbered calendar year, based on the 
increase in the price index determined under section 315(c), except 
that the base period shall be calendar year 1995.

``SEC. 505. TELEVISION DEBATE REQUIREMENT.

    ``A qualifying House of Representatives candidate shall be required 
to participate in at least 2 televised debates, organized by a 
bipartisan or nonpartisan group, in the congressional district media 
market.

``SEC. 506. REQUIREMENT FOR ACCEPTANCE OF ADVERTISING BY RADIO AND 
              TELEVISION STATIONS.

    ``(a) In General.--Each radio station and each television station 
shall be--
            ``(1) required to accept orders for advertisements to be 
        paid for under this title until such advertising constitutes 40 
        percent of the station's total advertising time; and
            ``(2) subject to random periodic examination of advertising 
        charges paid under this title to ensure that such charges are 
        correct.
    ``(b) Condition of License.--The continuation of an existing 
license, the renewal of an expiring license, and the issuance of a new 
license under section 307 of the Communications Act of 1934 (47 U.S.C. 
307) shall be conditioned on the agreement by the licensee to abide by 
the provisions of subsection (a)(1).

``SEC. 507. DEFINITIONS.

    ``As used in this title--
            ``(1) the term `House of Representatives candidate' means a 
        candidate for the office of Representative in, or Delegate or 
        Resident Commissioner to, the Congress;
            ``(2) the term `qualifying House of Representatives 
        candidate' means a House of Representatives candidate who 
        qualifies for public funding under this title; and
            ``(3) the term `congressional district media market' means, 
        with respect to a congressional district, the media market of 
        that district, as determined from the licensing records of the 
        Federal Communications Commission.''.

SEC. 2. [211]

    A national committee of a political party, including the national 
congressional campaign committees of a political party, and any 
officers or agents of such party committees, shall not solicit or 
receive any contributions, donations, or transfers of funds, or spend 
any funds, not subject to the limitations, prohibitions, and reporting 
requirements of this Act. This provision shall apply to 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, other than an entity that is regulated by 
section (2) below.

SEC. 3. [212]

    (a) Any amount expended or disbursed by a State, district, or local 
committee of a political party, during a calendar year in which a 
Federal election is held, for any activity which might affect the 
outcome of a Federal election, including but not limited to any voter 
registration and get-out-the-vote activity, any generic campaign 
activity, and any communication that identifies a Federal candidate 
(regardless of whether a State or local candidate is also mentioned or 
identified) shall be made from funds subject to the limitations, 
prohibitions and reporting requirements of this Act.
    (b) Paragraph (a) shall not apply to expenditures or disbursements 
made by a State, district or local committee of a political party for--
            (1) a contribution to a candidate other than for Federal 
        office, provided that such contribution is not designated or 
        otherwise earmarked to pay for activities described in 
        subparagraph (a) above;
            (2) the costs of a State or district/local political 
        convention;
            (3) the non-Federal share of a State, district or local 
        party committee's administrative and overhead expenses (but not 
        including 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). For purposes of this provision, 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;
            (4) the costs of grassroots campaign materials, including 
        buttons, bumperstickers, and yard signs, which material solely 
        name or depict a State or local candidate; and
            (5) the cost of any campaign activity conducted solely on 
        behalf of a clearly identified State or local candidate, 
        provided that such activity is not covered by subparagraph (a) 
        above.
    (c) Any amount spent by a national, State, district or local 
committee or entity of a political party to raise funds that are used, 
in whole or in part, to pay the costs of any activity covered by 
paragraph 2(a) above shall be made from funds subject to the 
limitations, prohibitions, and reporting requirements of this Act.
    This provision shall apply to any entity that is established, 
financed, maintained, or controlled by a State, district or local 
committee of a political party or any agent or officer of such party 
committee in the same manner as it applies to that committee.

SEC. 4. [213]

    No national, State, district or local committee of a political 
party shall solicit any funds for or make any donations to any 
organization that is exempt from Federal taxation under 26 U.S.C. 
501(c).

SEC. 5. [214]

    No candidate for Federal office, individual holding Federal office, 
or any agent of such candidate or officeholder, may solicit or receive 
any funds in connection with any Federal election unless such funds are 
subject to the limitations, prohibitions and reporting requirements of 
this Act; This provision 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 for such individual's 
non-Federal campaign committee.

SEC. 6. REPORTING REQUIREMENTS. [215]

    (a) Reporting Requirements.--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) A political committee (not described in paragraph (1)) to 
which section 325 applies shall report all receipts and disbursements 
including separate schedules for receipts and disbursements for any 
State Party Grassroots Fund described in section 301(21).
    ``(3) Any political committee to which section 325 applies shall 
include in its report under paragraph (1) or (2) the amount of any 
transfer described in section 325(d)(2) and shall itemize such amounts 
to the extent required by subsection (b)(3)(A).
    ``(4) Any political committee to which paragraph (1) or (2) does 
not apply shall report any receipts or disbursements that are used in 
connection with a Federal election.
    ``(5) 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).
    ``(6) Reports required to be filed under this subsection shall be 
filed for the same time periods required for political committees under 
subsection (a).''.
    (b) 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 $50 
                shall be reported.''.
    (c) Reports by State Committees.--Section 304 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434), as amended by subsection 
(a), 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.''.
    (d) Other Reporting Requirements.--
            (1) Authorized committees.--Section 304(b)(4) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)(4)) is 
        amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (H);
                    (B) by inserting ``and'' at the end of subparagraph 
                (I); and
                    (C) 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;''.
            (2) 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--
                    (A) by striking ``within the calendar year''; and
                    (B) by inserting ``, and the election to which the 
                operating expenditure relates'' after ``operating 
                expenditure''.

SEC. 7. SOFT MONEY OF PERSONS OTHER THAN POLITICAL PARTIES. [221]

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 215(c), is amended by adding at the end the 
following new subsection:
    ``(f) Election Activity of Persons Other Than Political Parties.--
(1)(A)(i) If any person to which section 325 does not apply makes (or 
obligates to make) disbursements for activities described in section 
325(b) in excess of $2,000, such person shall file a statement--
            ``(I) on or before the date that is 48 hours before the 
        disbursements (or obligations) are made; or
            ``(II) in the case of disbursements (or obligations) that 
        are required to be made within 14 days of the election, on or 
        before such 14th day.
    ``(ii) An additional statement shall be filed each time additional 
disbursements aggregating $2,000 are made (or obligated to be made) by 
a person described in clause (i).
    ``(B) This paragraph shall not apply to--
            ``(i) a candidate or a candidate's authorized committees; 
        or
            ``(ii) an independent expenditure (as defined in section 
        301(17)).
    ``(2) Any statement under this section shall be filed with the 
Secretary of the Senate or the Clerk of the House of Representatives, 
and the Secretary of State (or equivalent official) of the State 
involved, as appropriate, and shall contain such information as the 
Commission shall prescribe, including whether the disbursement is in 
support of, or in opposition to, 1 or more candidates or any political 
party. The Secretary of the Senate or Clerk of the House of 
Representatives shall, as soon as possible (but not later than 24 hours 
after receipt), transmit a statement to the Commission. Not later than 
48 hours after receipt, the Commission shall transmit the statement 
to--
            ``(A) the candidates or political parties involved; or
            ``(B) if the disbursement is not in support of, or in 
        opposition to, a candidate or political party, the State 
        committees of each political party in the State involved.
    ``(3) The Commission may make its own determination that 
disbursements described in paragraph (1) have been made or are 
obligated to be made. The Commission shall notify the candidates or 
political parties described in paragraph (2) not later than 24 hours 
after its determination.''.

SEC. 8. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS. [231]

    Section 315(a)(8) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441a(a)(8)) is amended to read as follows:
            ``(8) For the purposes of this subsection:
                    ``(A) Contributions made by a person, either 
                directly or indirectly, to or on behalf of a particular 
                candidate, including contributions that are in any way 
                earmarked or otherwise directed through an intermediary 
                or conduit to a candidate, shall be treated as 
                contributions from the person to the candidate. If a 
                contribution is made to a candidate through an 
                intermediary or conduit, the intermediary or conduit 
                shall report the original source and the intended 
                recipient of the contribution to the Commission and the 
                intended recipient.
                    ``(B) Contributions made directly or indirectly by 
                a person to or on behalf of a particular candidate 
                through an intermediary or conduit, including 
                contributions arranged to be made by an intermediary or 
                conduit, shall be treated as contributions from the 
                intermediary or conduit to the candidate if--
                            ``(i) the contributions made through the 
                        intermediary or conduit are in the form of a 
                        check or other negotiable instrument made 
                        payable to the intermediary or conduit rather 
                        than the intended recipient; or
                            ``(ii) the intermediary or conduit is--
                                    ``(I) a political committee, a 
                                political party, or an officer, 
                                employee, or agent of either;
                                    ``(II) a person whose activities 
                                are required to be reported under 
                                section 308 of the Federal Regulation 
                                of Lobbying Act (2 U.S.C. 267), the 
                                Foreign Agents Registration Act of 1938 
                                (22 U.S.C. 611 et seq.), or any 
                                successor Federal law requiring a 
                                person who is a lobbyist or foreign 
                                agent to report the activities of such 
                                person;
                                    ``(III) a person who is prohibited 
                                from making contributions under section 
                                316 or a partnership; or
                                    ``(IV) an officer, employee, or 
                                agent of a person described in 
                                subclause (II) or (III) acting on 
                                behalf of such person.
                    ``(C) The term `contributions arranged to be made' 
                includes--
                            ``(i)(I) contributions delivered directly 
                        or indirectly to a particular candidate or the 
                        candidate's authorized committee or agent by 
                        the person who facilitated the contribution; 
                        and
                            ``(II) contributions made directly or 
                        indirectly to a particular candidate or the 
                        candidate's authorized committee or agent that 
                        are provided at a fundraising event sponsored 
                        by an intermediary or conduit described in 
                        subparagraph (B);
                    (D) This paragraph shall not prohibit--
                            ``(i) fundraising efforts for the benefit 
                        of a candidate that are conducted by another 
                        candidate or Federal officeholder; or
                            ``(ii) the solicitation by an individual 
                        using the individual's resources and acting in 
                        the individual's own name of contributions from 
                        other persons in a manner not described in 
                        paragraphs (B) and (C).''.

SEC. 9. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to 
elections taking place after [TO BE SUPPLIED].
                                 <all>