[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2461 Introduced in House (IH)]







                                    


107th CONGRESS
  1st Session
                                H. R. 2461

   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

                             July 11, 2001

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

_______________________________________________________________________

                                 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. SHORT TITLE.

    This Act may be cited as the ``Public Campaign Financing Act of 
2001''.

SEC. 2. 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.--
            ``(1) In general.--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.
            ``(2) Criteria for determining amount.--An exact amount of 
        the funds provided to a candidate under this section shall be 
        determined by the Commission, using--
                    ``(A) 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
                    ``(B) a multiplier of 5,000 media points.
            ``(3) Use of funds.--The funds provided under this section 
        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 2001.

``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. 3. RESTRICTIONS ON SOFT MONEY OF POLITICAL PARTIES AND CANDIDATES.

    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:

    ``restrictions on soft money of political parties and candidates

    ``Sec. 323. (a) National Parties.--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 subsection (b).
    ``(b) State and Local Parties.--
            ``(1) In general.--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.
            ``(2) Exceptions.--Paragraph (1) 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, so long as the contribution is not 
                designated or otherwise earmarked to pay for activities 
                described in paragraph (1);
                    ``(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 (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), 
                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;
                    ``(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, so long as the activity does not identify a 
                Federal candidate.
            ``(3) Applicability.--This subsection 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.
    ``(c) Fundraising Costs.--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 subsection (b)(1) shall be made from funds subject 
to the limitations, prohibitions, and reporting requirements of this 
Act.
    ``(d) Solicitation by Parties for Nonprofits.--No national, State, 
district, or local committee of a political party may solicit any funds 
for or make any donations to any organization that is exempt from 
Federal taxation under section 501(c) of the Internal Revenue Code of 
1986.
    ``(e) Solicitation and Receipt of Funds by Candidates and 
Officeholders.--
            ``(1) In general.--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.
            ``(2) Exception for activities permitted under state law.--
        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 for such 
        individual's non-Federal campaign committee.''.

SEC. 4. REPORTING REQUIREMENTS.

    (a) Reporting Receipts and Disbursements by Political Parties and 
Other Committees.--Section 304 of the Federal Election Campaign Act of 
1971 (2 U.S.C. 434), as amended by section 502(a) of the Department of 
Transportation and Related Agencies Act, 2001 (as enacted into law by 
reference under section 101(a) of Public Law 106-346), is amended by 
adding at the end the following new subsection:
    ``(e) Receipts and Disbursements of Political Parties and Other 
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 to which section 323 applies (other 
than a committee described in paragraph (1)) shall report all receipts 
and disbursements.
    ``(3) 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.
    ``(4) 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).
    ``(5) 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 such Act (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 such Act (2 
U.S.C. 434), as amended by subsection (a), is amended by adding at the 
end the following new subsection:
    ``(f) 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 such Act 
        (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 such Act 
        (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. 5. REPORTING OF ELECTION ACTIVITY OF PERSONS OTHER THAN POLITICAL 
              PARTIES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434), as amended by section 4(c), is amended by adding at the end the 
following new subsection:
    ``(g) Election Activity of Persons Other Than Political Parties.--
            ``(1) Requirement described.--(A) If any person to which 
        section 323 does not apply makes (or obligates to make) 
        disbursements for activities described in section 323(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.
            ``(B) 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 subparagraph (A).
            ``(2) Contents of statement.--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) Determinations by commission.--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.
            ``(4) Exceptions.--This subsection shall not apply to--
                    ``(A) a candidate or a candidate's authorized 
                committees; or
                    ``(B) an independent expenditure (as defined in 
                section 301(17)).''.

SEC. 6. CONTRIBUTIONS THROUGH INTERMEDIARIES AND CONDUITS.

    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 4 of the 
                        Lobbying Disclosure Act of 1995 (2 U.S.C. 
                        1603), 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. 7. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to 
elections occurring after December 31, 2002.
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