[Congressional Record Volume 141, Number 173 (Friday, November 3, 1995)]
[Senate]
[Pages S16657-S16662]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 1389. A bill to reform the financing of Federal elections, and for 
other purposes; to the Committee on Rules and Administration.


   the senate campaign spending limit and election reform act of 1995

  Mrs. FEINSTEIN. Mr. President, I rise today to address an issue of 
great concern and importance to me, and I believe, to the integrity of 
our democratic system of Government: campaign finance reform.
  I supported the legislation introduced and passed by this body in 
1993, and I came back to Washington in 1995 

[[Page S 16658]]
with renewed commitment to pursuing meaningful reform of our Nation's 
campaign finance laws.
  Mr. President, I completed in November my 10th political campaign--10 
of them. Three of them were very big. One was for Governor of the State 
of California, and two were for the U.S. Senate.
  I would like to tell you what I raised in just those three campaigns: 
In 1990, for Governor, $19,770,062; in 1992, $8,540,222; and in 1994, 
$14,407,179. That totals in three campaigns $42,231,463.
  Mr. President, I am a walking, talking, case exhibit for campaign 
spending reform. And I would like to submit that the time has come for 
the Senate and the House to rally to the challenge, and produce some 
legislation which can reduce the impact and the need for fundraising 
and dollars in American political national House and Senate campaigns.
  I supported the legislation introduced and passed by this body in 
1993. And I came back to Washington after this last campaign really 
with a renewed commitment. I raised $14 million. My opponent outspent 
me by better than 22 to 1. That should not be the case for a U.S. 
Senate seat, even in a State as big as the State of California.
  The bill I introduce today addresses what I believe are the areas 
most in need of reform: curbing the astronomical amounts of money that 
flood campaigns today, creating a level playing field between wealthy 
candidates who finance their own campaigns and candidates who cannot, 
and honesty in campaign advertising.
  Among the bill's key provisions are:
  Voluntary spending limits based on voting-age population;
  Provisions relating to spending from personal funds and creating a 
level playing-field for their opponent; and
  Disclosure requirements for political advertisements.


                            spending limits

  For almost 20 years now this Congress has studied and debated the 
issue of campaign spending reform. Last year in the Senate, we passed 
out a bill. It did not move forward in the House. During that time, 
though, spending in Senate races has increased more than 500 percent 
while the cost of living has roughly doubled.
  The last election cycle exemplifies the absurd levels campaign 
spending has reached. According to the Federal Election Commission, 
congressional candidates in 1994 raised and spent over $724 million--
the highest amount ever recorded in any election cycle in the 
Commission's 20-year existence.
  The fundraising pressure on candidates to meet ever-growing demand is 
enormous. I know it firsthand. It increases with every election cycle, 
and it clearly discourages otherwise qualified candidates from running.
  So the legislation which I put forward today is very limited and very 
simple. Not a lot of it is new. There are a few new twists. But it 
really is combining three things that were presented before that I 
think go to reduce spending, create that level playing field, and 
particularly to reduce the inordinate costs of media.
  Voluntary spending limits would be based on each State's voting age 
population ranging from a high of $8.2 million in a State like 
California to a low of $1.5 million in a smaller State like Wyoming.
  The rules are the same as those that were sent out by the Rules 
Committee in the Senate bill of last session.
  In return for voluntarily controlling spending, a candidate receives 
a bonus. This is the carrot to go along with the voluntary limit.
  In return for voluntarily controlling spending, a candidate would be 
entitled to receive: 30 minutes of free broadcast time, a proposal 
which is based on a bill Senator Dole introduced in the 102d Congress; 
a 50-percent discount on television time over and above the free time, 
and a reduced postage rate on two pieces of mail to each voting-age 
resident in their State.
  These latter two benefits were in the bill passed by the Senate in 
the last Congress.
  Previous spending limit proposals have been seen as pro-incumbent 
measures and a barrier to challengers who have to spend more money to 
compete against an incumbent with high name recognition.
  This bill evens the playing field a little by making critical 
advertising time available to challengers and incumbents alike--30 
minutes of broadcast time free, and the rest at half the price.
  With 30 to 40 cents of every dollar raised--sometimes well over 
half--going to media advertising, free media time and a 50-percent 
broadcast discount rate will not only reduce campaign costs but will 
also serve as a powerful incentive for candidates to agree to voluntary 
spending limits.


                             personal funds

  This legislation, which mirrors parts of the campaign finance bill 
introduced by the majority leader, Senator Dole, in the last Congress, 
attempts to limit the ability of a wealthy candidate to buy a seat in 
Congress.
  This is where the provisions are a little different than anything 
anybody has introduced prior. But let me say what they are.
  Under this bill, after qualifying as a candidate for the primary, a 
candidate must declare if he or she intends to spend more than $250,000 
of their own funds in the election. If the candidate says, Yes, I am 
going to spend more than $250,000 of my own money in this election, 
then the contribution limits on his or her opponent are raised from 
$1,000 to $5,000. If a candidate declares that he or she will spend 
more than $1 million on the race from their own pocket, then the 
contribution limit on his or her opponents are removed entirely.
  As with my case, where somebody came forward and said, I will spend 
$30 million of my own--that still is disbelief to me to even say that 
huge amount of my own money on this race--there is no way, no matter 
how proven a fundraiser you are, that you can compete with that amount 
of money. This would enable an individual to compete because the 
spending limits are off of them.
  I believe this requirement will minimize the advantage of enormous 
personal wealth in campaigns, while maximizing the opponent's time to 
pursue a campaign on the issues, rather than being caught in a 
quicksand of fundraising.
  Let me speak for a moment about honesty in campaign advertising, 
which I really did not believe that we should deal with. I really 
thought that, well, campaigns are freewheeling. They are rough and 
tumble. I participated in very hard mayoral races, rough and tumble in 
San Francisco. But I never saw the degree to which negative ads 
permeate the campaign spectrum as I did in the last campaign.
  So honesty in campaign advertising is of great interest to me. I 
think it is critically important to the voters who are now saying, 
well, a pox on both their houses, and I do not believe any of them, as 
we restore some level of credibility and respect to the political 
process. Honesty will do it. Honesty in campaign ads will go a long, 
long way.
  One issue of great concern to me and one that, I believe, is 
critically important to restore some level of credibility and respect 
to the political process, is honesty in campaign advertising. In recent 
years, the amount of negative advertising and personal attacks in 
campaign ads has exploded. And all the experts are predicting in the 
next set of races that it is going to get even worse. You see it 
beginning to start with someone who may be a probable or possible 
Presidential candidate even before he gets into the race.
  Campaigns that rely on unchecked character assassination--with no 
regard for the validity or truth of the charges--have contributed to 
unprecedented voter cynicism and apathy.
  In the 1994 campaign, negative ads, groundless attacks on character, 
distorted facts dragged political advertising to this new low. In my 
campaign, at least two televisions stations and one radio station ran a 
disclaimer before my opponent's ads in an attempt to absolve their 
station of responsibility and liability for the content of the ads and 
noting that the reason they ran the ads is because they were required 
by law to do so.
  Campaign advertising has become a virtual arms race, and in some 
cases is based upon a deliberate strategy of alienating voters to 
degrees voter turnout. The result again is this public turn-off, the 
cynicism, the pox on both your houses, and the enormous disaffection 
people feel with political leaders and the political process itself.
  Most of us would like but we are limited in our ability to curtail 
negative 

[[Page S 16659]]
advertising because of first amendment considerations. We can hold 
candidates and campaign committees more responsible for what they do or 
we can individually just decide not to do it ourselves. I resolved not 
to do it myself, not to respond, and my poll numbers went like this. 
And when we did the focus groups, what we found was that the negatives 
blasted through and the positive credentials did not. People just did 
not believe them. They tend to believe the negatives, but they would 
not believe the positives. And that is a sad, sad case in American 
political affairs.

  So what has happened--and I believe this is fairly typical across the 
United States--is campaign consultants are finding that the negative 
ads blast through and the positive ads do not, so the tendency on an 
increasing basis is to go to negative campaign advertising.
  The provisions of my bill would set minimum standards for disclosure 
in print, on radio, and on television. The bill would require 
disclaimers in TV ads to appear for at least 4 seconds with a 
reasonable degree of color contrast between the background and the 
printed statement. It requires a clearly identifiable photograph or 
other image of the candidate if the ad is paid by a candidate or the 
candidate's committee by the candidate, and the statement at the end of 
the add by the candidate saying, ``This is Dianne Feinstein. I have 
approved the content of this ad.''
  The thrust of this is to connect the responsibility between the 
consultant who does the ad and the candidate whose campaign runs the 
ad. After all, the candidate is eventually responsible.
  The bill also would require sponsors of other advertisements such as 
independent campaigns to indicate in a statement that they are 
responsible for the veracity of the content of the ad.
  Now, what is not contained in this bill? What is not contained in 
this bill is public financing of campaigns. It is my belief that the 
American people are not ready to accept public financing of campaigns. 
Tax dollars are hard fought for, and that situation is not going to get 
better; it is going to get worse. Therefore, even a checkoff for public 
financing of campaigns I think is unworthy of the priorities that we 
face as legislators.
  So there is no direct public financing in this legislation.
  Some have opposed spending limits as contrary to the Supreme Court's 
decision in Buckley versus Valeo which rejected mandatory limits unless 
they are imposed--for example, in exchange for public benefits. This 
bill attempts to strike a balance called for in that decision by making 
the spending limits voluntary and tying them to public benefits.
  I supported initial campaign spending reform that would curb the 
influence of political action committees, and in the $14 million that I 
raised in the last campaign, about 16 percent was from political action 
committees. But I believe distinctions need to be made to protect small 
contributors who pool their resources, share information, and involve 
themselves in the process by supporting candidates or causes in which 
they believe.
  A blanket ban on all political action committees in a sense throws 
the baby out with the bath water. I think we need to be encouraging 
people to be involved in politics, not discouraging them. And virtually 
every legal scholar I know who has examined this question believes that 
a complete ban is unconstitutional.
  The Congressional Research Service has advised the Senate:

       A complete ban on contributions and expenditures by 
     connected and nonconnected PAC's appears to be 
     unconstitutional in violation of the first amendment.

  The Supreme Court has repeatedly held that campaign contributions and 
expenditures are a form of political speech protected by the first 
amendment to the United States Constitution. While the activities of 
some political action committees certainly need to be scrutinized, 
others give the small person, the ordinary person a voice in politics. 
They allow many people who cannot afford to make only small 
contributions to band together so that their voices can be heard. For 
those PAC's whose practices violate the letter or intent of Federal 
election law, the full weight of the FEC enforcement should be brought 
to bear. But I do not believe we should silence the voice of small 
contributors in our efforts to curb the influence of big special 
interest PAC's.
  One example is the League of Conservation Voters. The average 
contribution to their PAC is $40. Individually, these donors cannot 
take out ads supporting environmental legislation or candidates. But by 
pooling their resources, they can purchase an ad announcing their 
support. Surely this is not the type of political influence that 
warrants an outright ban on political action committees. Yet, other 
legislation being considered by this body would do just that. And that 
is where I split.
  I was encourage when President Clinton and Speaker Gingrich agreed to 
set up a bipartisan commission to study and perhaps finally act on 
campaign finance reform. But apparently that agreement seems to have 
since become bogged down with political baggage. This issue has been 
studied and studied and studied not only by this Congress for 20 years 
but by a bipartisan commission whose recommendations were made to the 
Congress in 1990.
  I think it is time for Congress to act. And what we have tired to do 
in this legislation is take concepts that have stood the test of time, 
put them together in a limited package of three major areas where I 
believe there is a consensus in both political bodies and around which 
I think there can be forged no real opposition that is credible and 
worthy to taking these three steps as a first and meaningful step in 
campaign spending reform.
  So I submit the legislation, and I welcome the discussion and the 
debate.
  I thank the forbearance of the Chair, and I yield the floor.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1389

       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 Spending 
     Limit and Election Reform Act of 1995''.

     SEC. 2. AMENDMENT OF CAMPAIGN ACT; TABLE OF CONTENTS.

       (a) Amendment of FECA.--When used in this Act, the term 
     ``FECA'' means the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.).
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Amendment of Campaign Act; table of contents.

         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

Sec. 101. Senate election spending limits and benefits.
Sec. 102. Transition provisions.
Sec. 103. Free broadcast time.
Sec. 104. Broadcast rates and preemption.
Sec. 105. Reduced postage rates.

                   TITLE II--MISCELLANEOUS PROVISIONS

Sec. 201. Candidate expenditures from personal funds.
Sec. 202. Restrictions on use of campaign funds for personal purposes.
Sec. 203. Campaign advertising amendments.
Sec. 204. Severability.
Sec. 205. Expedited review of constitutional issues.
Sec. 206. Effective date.
Sec. 207. Regulations.
         TITLE I--SENATE ELECTION SPENDING LIMITS AND BENEFITS

     SEC. 101. SENATE ELECTION SPENDING LIMITS AND BENEFITS.

       FECA is amended by adding at the end the following new 
     title:
 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

     ``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.

       ``(a) In General.--For purposes of this title, a candidate 
     is an eligible Senate candidate if the candidate--
       ``(1) meets the primary and general election filing 
     requirements of subsections (c) and (d);
       ``(2) meets the primary and runoff election expenditure 
     limits of subsection (b);
       ``(3) meets the threshold contribution requirements of 
     subsection (e); and
       ``(4) does not exceed the limitation on expenditures from 
     personal funds under section 502(a).
       ``(b) Primary and Runoff Expenditure Limits.--
       ``(1) In general.--The requirements of this subsection are 
     met if--
       ``(A) the candidate or the candidate's authorized 
     committees did not make expenditures for the primary election 
     in excess of the lesser of--

[[Page S 16660]]

       ``(i) 67 percent of the general election expenditure limit 
     under section 502(b); or
       ``(ii) $2,750,000; and
       ``(B) the candidate and the candidate's authorized 
     committees did not make expenditures for any runoff election 
     in excess of 20 percent of the general election expenditure 
     limit under section 502(b).
       ``(2) Indexing.--The $2,750,000 amount under paragraph 
     (1)(A)(ii) shall be increased as of the beginning of each 
     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.
       ``(3) Increase based on expenditures of opponent.--The 
     limitations under paragraph (1) with respect to any candidate 
     shall be increased by the aggregate amount of independent 
     expenditures in opposition to, or on behalf of any opponent 
     of, such candidate during the primary or runoff election 
     period, whichever is applicable, that are required to be 
     reported to the Secretary of the Senate with respect to such 
     period under section 304(c).
       ``(c) Primary Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files with the Secretary of the Senate a 
     certification that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) will meet the primary and runoff election expenditure 
     limits of subsection (b); and
       ``(ii) will only accept contributions for the primary and 
     runoff elections which do not exceed such limits;
       ``(B) the candidate and the candidate's authorized 
     committees will meet the limitation on expenditures from 
     personal funds under section 502(a); and
       ``(C) the candidate and the candidate's authorized 
     committees will meet the general election expenditure limit 
     under section 502(b).
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than the date 
     the candidate files as a candidate for the primary election.
       ``(d) General Election Filing Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate files a certification with the Secretary 
     of the Senate under penalty of perjury that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) met the primary and runoff election expenditure 
     limits under subsection (b); and
       ``(ii) did not accept contributions for the primary or 
     runoff election in excess of the primary or runoff 
     expenditure limit under subsection (b), whichever is 
     applicable, reduced by any amounts transferred to this 
     election cycle from a preceding election cycle;
       ``(B) at least one other candidate has qualified for the 
     same general election ballot under the law of the State 
     involved;
       ``(C) the candidate and the authorized committees of the 
     candidate--
       ``(i) except as otherwise provided by this title, will not 
     make expenditures that exceed the general election 
     expenditure limit under section 502(b);
       ``(ii) will not accept any contributions in violation of 
     section 315;
       ``(iii) except as otherwise provided by this title, will 
     not accept any contribution for the general election involved 
     to the extent that such contribution would cause the 
     aggregate amount of contributions to exceed the sum of the 
     amount of the general election expenditure limit under 
     section 502(b), reduced by any amounts transferred to this 
     election cycle from a previous election cycle and not taken 
     into account under subparagraph (A)(ii);
       ``(iv) will furnish campaign records, evidence of 
     contributions, and other appropriate information to the 
     Commission; and
       ``(v) will cooperate in the case of any audit and 
     examination by the Commission; and
       ``(D) the candidate intends to make use of the benefits 
     provided under section 503.
       ``(2) Deadline for filing certification.--The certification 
     under paragraph (1) shall be filed not later than 7 days 
     after the earlier of--
       ``(A) the date the candidate qualifies for the general 
     election ballot under State law; or
       ``(B) 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.
       ``(e) Threshold Contribution Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met if the candidate and the candidate's authorized 
     committees have received allowable contributions during the 
     applicable period in an amount at least equal to the lesser 
     of--
       ``(A) 10 percent of the general election expenditure limit 
     under section 502(b); or
       ``(B) $250,000.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `allowable contributions' means 
     contributions that are made as gifts of money by an 
     individual pursuant to a written instrument identifying such 
     individual as the contributor; and
       ``(B) the term `applicable period' means--
       ``(i) the period beginning on January 1 of the calendar 
     year preceding the calendar year of the general election 
     involved and ending on the date on which the certification 
     under subsection (c)(2) is filed by the candidate; or
       ``(ii) in the case of a special election for the office of 
     United States Senator, the period beginning on the date the 
     vacancy in such office occurs and ending on the date of the 
     general election.

     ``SEC. 502. LIMITATION ON EXPENDITURES.

       ``(a) Limitation on Use of Personal Funds.--
       ``(1) In general.--The aggregate amount of expenditures 
     that may be made during an election cycle by an eligible 
     Senate candidate or such candidate's authorized committees 
     from the sources described in paragraph (2) shall not exceed 
     the lesser of--
       ``(A) 10 percent of the general election expenditure limit 
     under subsection (b); or
       ``(B) $250,000.
       ``(2) Sources.--A source is described in this subsection if 
     it is--
       ``(A) personal funds of the candidate and members of the 
     candidate's immediate family; or
       ``(B) personal loans incurred by the candidate and members 
     of the candidate's immediate family.
       ``(b) General Election Expenditure Limit.--
       ``(1) In general.--Except as otherwise provided in this 
     title, the aggregate amount of expenditures for a general 
     election by an eligible Senate candidate and the candidate's 
     authorized committees shall not exceed the lesser of--
       ``(A) $5,500,000; or
       ``(B) the greater of--
       ``(i) $950,000; or
       ``(ii) $400,000; plus

       ``(I) 30 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(II) 25 cents multiplied by the voting age population in 
     excess of 4,000,000.

       ``(2) Exception.--In the case of an eligible Senate 
     candidate in a State that has not more than 1 transmitter for 
     a commercial Very High Frequency (VHF) television station 
     licensed to operate in that State, paragraph (1)(B)(ii) shall 
     be applied by substituting--
       ``(A) `80 cents' for `30 cents' in subclause (I); and
       ``(B) `70 cents' for `25 cents' in subclause (II).
       ``(3) Indexing.--The amount otherwise determined under 
     paragraph (1) for any calendar year shall be increased by the 
     same percentage as the percentage increase for such calendar 
     year under section 501(b)(2).
       ``(4) Increase based on expenditures of opponent.--The 
     limitations under paragraph (1) with respect to any candidate 
     shall be increased by the aggregate amount of independent 
     expenditures in opposition to, or on behalf of any opponent 
     of, such candidate during the primary or runoff election 
     period, whichever is applicable, that are required to be 
     reported to the Secretary of the Senate with respect to such 
     period under section 304(c).
       ``(c) Payment of Taxes.--The limitation under subsection 
     (b) shall not apply to any expenditure for Federal, State, or 
     local taxes with respect to earnings on contributions raised.

     ``SEC. 503. BENEFITS ELIGIBLE CANDIDATES ENTITLED TO RECEIVE.

       ``An eligible Senate candidate shall be entitled to 
     receive--
       ``(1) the broadcast media rates provided under section 
     315(b) of the Communications Act of 1934;
       ``(2) the free broadcast time provided under section 315(c) 
     of such Act; and
       ``(3) the reduced postage rates provided in section 3626(e) 
     of title 39, United States Code.

     ``SEC. 504. CERTIFICATION BY COMMISSION.

       ``(a) In General.--Not later than 48 hours after a 
     candidate qualifies for a general election ballot, the 
     Commission shall certify the candidate's eligibility for free 
     broadcast time under section 315(b)(2) of the Communications 
     Act of 1934. The Commission shall revoke such certification 
     if it determines a candidate fails to continue to meet the 
     requirements of this title.
       ``(b) Determinations by Commission.--All determinations 
     (including certifications under subsection (a)) made by the 
     Commission under this title shall be final, except to the 
     extent that they are subject to examination and audit by the 
     Commission under section 505.

     ``SEC. 505. REPAYMENTS; ADDITIONAL CIVIL PENALTIES.

       ``(a) Excess Payments; Revocation of Status.--If the 
     Commission revokes the certification of a candidate as an 
     eligible Senate candidate under section 504(a), the 
     Commission shall notify the candidate, and the candidate 
     shall pay an amount equal to the value of the benefits 
     received under this title.
       ``(b) Misuse of Benefits.--If the Commission determines 
     that any benefit made available to an eligible Senate 
     candidate under this title was not used as provided for in 
     this title, the Commission shall so notify the candidate and 
     the candidate shall pay an amount equal to the value of such 
     benefit.''.

     SEC. 102. TRANSITION PROVISIONS.

       (a) Expenditures Made Prior to Date of Enactment.--(1) 
     Expenditures made by an eligible Senate candidate on or prior 
     to the date of enactment of this title shall not be counted 
     against the limits specified in section 502 of FECA, as 
     amended by section 101.
       (2) For purposes of this section, the term ``expenditure'' 
     includes any direct or indirect payment or distribution or 
     obligation to make payment or distribution of money.

[[Page S 16661]]

       (b) Relationship to Other Titles.--The provisions of titles 
     I through IV of the Federal Election Campaign Act of 1971 
     shall remain in effect with respect to Senate election 
     campaigns affected by this title or the amendments made by 
     this title except to the extent that those provisions are 
     inconsistent with this title or the amendments made by this 
     title.

     SEC. 103. FREE BROADCAST TIME.

       (a) In General.--Section 315 of the Communications Act of 
     1934 (47 U.S.C. 315) is amended--
       (1) in subsection (a)--
       (A) by striking ``within the meaning of this subsection'' 
     and inserting ``within the meaning of this subsection and 
     subsection (c)'';
       (B) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (C) by inserting immediately after subsection (b) the 
     following new subsection:
       ``(c)(1) An eligible Senate candidate who has qualified for 
     the general election ballot shall be entitled to receive a 
     total of 30 minutes of free broadcast time from broadcasting 
     stations within the State.
       ``(2) Unless a candidate elects otherwise, the broadcast 
     time made available under this subsection shall be between 
     6:00 p.m. and 10:00 p.m. on any day that falls on Monday 
     through Friday.
       ``(3) If--
       ``(A) a licensee's audience with respect to any 
     broadcasting station is measured or rated by a recognized 
     media rating service in more than 1 State; and
       ``(B) during the period beginning on the first day 
     following the date of the last general election and ending on 
     the date of the next general election there is an election to 
     the United States Senate in more than 1 of such States,

     the 30 minutes of broadcast time under this subsection shall 
     be allocated equally among the States described in 
     subparagraph (B).
       ``(4)(A) In the case of an election among more than 2 
     candidates, the broadcast time provided under paragraph (1) 
     shall be allocated as follows:
       ``(i) The amount of broadcast time that shall be provided 
     to the candidate of a minor party shall be equal to the 
     number of minutes allocable to the State multiplied by the 
     percentage of the number of popular votes received by the 
     candidate of that party in the preceding general election for 
     the Senate in the State (or if subsection (d)(4)(B) applies, 
     the percentage determined under such subsection).
       ``(ii) The amount of broadcast time remaining after 
     assignment of broadcast time to minor party candidates under 
     clause (i) shall be allocated equally between the major party 
     candidates.
       ``(B) In the case of an election where only 1 candidate 
     qualifies to be on the general election ballot, no time shall 
     be required to be provided by a licensee under this 
     subsection.
       ``(5) The Federal Election Commission shall by regulation 
     exempt from the requirements of this subsection--
       ``(A) a licensee whose signal is broadcast substantially 
     nationwide; and
       ``(B) a licensee that establishes that such requirements 
     would impose a significant economic hardship on the 
     licensee.''; and
       (2) in subsection (d), as redesignated--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(3) the term `major party' means, with respect to an 
     election for the United States Senate in a State, a political 
     party whose candidate for the United States Senate in the 
     preceding general election for the Senate in that State 
     received, as a candidate of that party, 25 percent or more of 
     the number of popular votes received by all candidates for 
     the Senate;
       ``(4) the term `minor party' means, with respect to an 
     election for the United States Senate in a State, a political 
     party--
       ``(A) whose candidate for the United States Senate in the 
     preceding general election for the Senate in that State 
     received 5 percent or more but less than 25 percent of the 
     number of popular votes received by all candidates for the 
     Senate; or
       ``(B) whose candidate for the United States Senate in the 
     current general election for the Senate in that State has 
     obtained the signatures of at least 5 percent of the State's 
     registered voters, as determined by the chief voter 
     registration official of the State, in support of a petition 
     for an allocation of free broadcast time under this 
     subsection; and
       ``(5) the term `Senate election cycle' means, with respect 
     to an election to a seat in the United States Senate, the 2-
     year period ending on the date of the general election for 
     that seat.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to general elections occurring after December 31, 
     1995 (and the election cycles relating thereto).

     SEC. 104. BROADCAST RATES AND PREEMPTION.

       (a) Broadcast Rates.--Section 315(b) of the Communications 
     Act of 1934 (47 U.S.C. 315(b)) is amended--
       (1) by striking ``(b) The changes'' and inserting ``(b)(1) 
     The changes'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (3) in paragraph (1)(A), as redesignated--
       (A) by striking ``forty-five'' and inserting ``30''; and
       (B) by striking ``lowest unit charge of the station for the 
     same class and amount of time for the same period'' and 
     inserting ``lowest charge of the station for the same amount 
     of time for the same period on the same date''; and
       (4) by adding at the end the following new paragraph:
       ``(2) In the case of an eligible Senate candidate (as 
     described in section 501(a) of the Federal Election Campaign 
     Act), the charges for the use of a television broadcasting 
     station during the 30-day period and 60-day period referred 
     to in paragraph (1)(A) shall not exceed 50 percent of the 
     lowest charge described in paragraph (1)(A).''.
       (b) Preemption; Access.--Section 315 of such Act (47 U.S.C. 
     315), as amended by section 102(a), is amended--
       (1) by redesignating subsections (d) and (e) as 
     redesignated, as subsections (e) and (f), respectively; and
       (2) by inserting immediately after subsection (c) the 
     following subsection:
       ``(d)(1) Except as provided in paragraph (2), a licensee 
     shall not preempt the use, during any period specified in 
     subsection (b)(1)(A), of a broadcasting station by an 
     eligible Senate candidate who has purchased and paid for such 
     use pursuant to subsection (b)(2).
       ``(2) If a program to be broadcast by a broadcasting 
     station is preempted because of circumstances beyond the 
     control of the broadcasting station, any candidate 
     advertising spot scheduled to be broadcast during that 
     program may also be preempted.''.
       (c) Revocation of License for Failure To Permit Access.--
     Section 312(a)(7) of the Communications Act of 1934 (47 
     U.S.C. 312(a)(7)) is amended--
       (1) by striking ``or repeated'';
       (2) by inserting ``or cable system'' after ``broadcasting 
     station''; and
       (3) by striking ``his candidacy'' and inserting ``the 
     candidacy of such person, under the same terms, conditions, 
     and business practices as apply to its most favored 
     advertiser''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to the general elections occurring after December 
     31, 1995 (and the election cycles relating thereto).

     SEC. 105. REDUCED POSTAGE RATES.

       (a) In General.--Section 3626(e) of title 39, United States 
     Code, is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) by striking ``and the National'' and inserting ``the 
     National''; and
       (ii) by inserting before the semicolon the following: ``, 
     and, subject to paragraph (3), the principal campaign 
     committee of an eligible Senate candidate;'';
       (B) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (C) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (D) by adding after subparagraph (C) the following new 
     subparagraphs:
       ``(D) the term `principal campaign committee' has the 
     meaning given such term in section 301 of the Federal 
     Election Campaign Act of 1971; and
       ``(E) the term `eligible Senate candidate' has the meaning 
     given such term in section 501(a) of the Federal Election 
     Campaign Act of 1971.''; and
       (2) by adding after paragraph (2) the following new 
     paragraph:
       ``(3) The rate made available under this subsection with 
     respect to an eligible Senate candidate shall apply only to 
     that number of pieces of mail equal to 2 times the number of 
     individuals in the voting age population (as certified under 
     section 315(e) of such Act) of the State.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to the general elections occurring after December 
     31, 1995 (and the election cycles relating thereto).
                   TITLE II--MISCELLANEOUS PROVISIONS

     SEC. 201. CANDIDATE EXPENDITURES FROM PERSONAL FUNDS.

       Section 315 of FECA (2 U.S.C. 441a) is amended by adding at 
     the end the following new subsection:
       ``(i)(1)(A) Not later than 15 days after a candidate 
     qualifies for a primary election ballot under State law, the 
     candidate shall file with the Commission, and each other 
     candidate who has qualified for that ballot, a declaration 
     stating whether the candidate intends to expend during the 
     election cycle an amount exceeding $250,000 from--
       ``(i) the candidate's personal funds;
       ``(ii) the funds of the candidate's immediate family; and
       ``(iii) personal loans incurred by the candidate and the 
     candidate's immediate family in connection with the 
     candidate's election campaign.
       ``(B) The declaration required by subparagraph (A) shall be 
     in such form and contain such information as the Commission 
     may require by regulation.
       ``(2) Notwithstanding subsection (a), the limitations on 
     contributions under subsection (a) shall be modified as 
     provided under paragraph (3) with respect to other candidates 
     for the same office who are not described in subparagraph 
     (A), (B), or (C), if the candidate--
       ``(A) declares under paragraph (1) that the candidate 
     intends to expend for the primary and general election funds 
     described in such paragraph in an amount exceeding $250,000;
       ``(B) expends such funds in the primary and general 
     election in an amount exceeding $250,000; or
       ``(C) fails to file the declaration required by paragraph 
     (1).

[[Page S 16662]]

       ``(3) For purposes of paragraph (2)--
       ``(A) the limitation under subsection (a)(1)(A) shall be 
     increased to $5,000; and
       ``(B) if a candidate described in paragraph (2)(B) expends 
     more than $1,000,000 of funds described in paragraph (1) in 
     the primary and general elections the limitation under 
     subsection (a)(1)(A) shall not apply.
       ``(4) If--
       ``(A) the modifications under paragraph (3) apply for a 
     convention or a primary election by reason of 1 or more 
     candidates taking (or failing to take) any action described 
     in subparagraph (A), (B), or (C) of paragraph (2); and
       ``(B) such candidates are not candidates in any subsequent 
     election in the same election campaign, including the general 
     election,

     paragraph (3) shall cease to apply to the other candidates in 
     such campaign.
       ``(5) No increase described in paragraph (3) shall apply 
     under paragraph (2) to noneligible Senate candidates in any 
     election if eligible Senate candidates are participating in 
     the same election campaign.
       ``(6) A candidate who--
       ``(A) declares, pursuant to paragraph (1), that the 
     candidate does not intend to expend funds described in 
     paragraph (1) in excess of $250,000; and
       ``(B) subsequently changes such declaration or expends such 
     funds in excess of that amount,
     shall file an amended declaration with the Commission and 
     notify all other candidates for the same office not later 
     than 24 hours after changing such declaration or exceeding 
     such limits, whichever first occurs, by sending a notice by 
     certified mail, return receipt requested.''.

     SEC. 202. RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR PERSONAL 
                   PURPOSES.

       (a) Restrictions on Use of Campaign Funds.--Title III of 
     FECA (2 U.S.C. 431 et seq.) is amended by adding at the end 
     the following new section:


     ``RESTRICTIONS ON USE OF CAMPAIGN FUNDS FOR PERSONAL PURPOSES

       ``Sec. 324. (a) An individual who receives contributions as 
     a candidate for Federal office--
       ``(1) shall use such contributions only for legitimate and 
     verifiable campaign expenses; and
       ``(2) shall not use such contributions for any inherently 
     personal purpose.
       ``(b) As used in this subsection--
       ``(1) the term `campaign expenses' means expenses 
     attributable solely to bona fide campaign purposes; and
       ``(2) the term `inherently personal purpose' means a 
     purpose that, by its nature, confers a personal benefit, 
     including a home mortgage payment, clothing purchase, 
     noncampaign automobile expense, country club membership, 
     vacation, or trip of a noncampaign nature, and any other 
     inherently personal living expense as determined under the 
     regulations promulgated pursuant to section 302(b) of the 
     Senate Campaign Spending Limit and Election Reform Act of 
     1995.''.
       (b) Regulations.--Not later than 90 days after the date of 
     enactment of this section, the Federal Election Commission 
     shall promulgate regulations to implement subsection (a). 
     Such regulations shall apply to all contributions possessed 
     by an individual at the time of implementation of this 
     section.

     SEC. 203. CAMPAIGN ADVERTISING AMENDMENTS.

       Section 318 of FECA (2 U.S.C. 441d) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``Whenever'' and inserting ``Whenever a 
     political committee makes a disbursement for the purpose of 
     financing any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (ii) by striking ``an expenditure'' and inserting ``a 
     disbursement''; and
       (iii) by striking ``direct''; and
       (B) in paragraph (3), by inserting ``and permanent street 
     address'' after ``name''; and
       (2) by adding at the end the following new subsections:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;
       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in subsection (a)(1) or subsection (a)(2) shall include, in 
     addition to the requirements of those subsections, an audio 
     statement by the candidate that identifies the candidate and 
     states that the candidate has approved the communication.
       ``(2) If a broadcast or cablecast communication described 
     in paragraph (1) is broadcast or cablecast by means of 
     television, the communication shall include, in addition to 
     the audio statement under paragraph (1), a written statement 
     which--
       ``(A) states: `I, (name of the candidate), am a candidate 
     for (the office the candidate is seeking) and I have approved 
     this message';
       ``(B) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(C) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e) Any broadcast or cablecast communication described in 
     subsection (a)(3) shall include, in addition to the 
     requirements of those subsections, in a clearly spoken 
     manner, the following statement: `________________