[Congressional Record Volume 142, Number 13 (Wednesday, January 31, 1996)]
[Extensions of Remarks]
[Pages E118-E119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CAMPAIGN FINANCE REFORM

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Wednesday, January 31, 1996

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, January 3, 1996, into the Congressional Record.

                     Common-Sense Campaign Reforms

       The past year was productive for congressional reform. 
     Congress acted to apply private sector laws to Congress, ban 
     gifts, and restrict lobbying. These common-sense reforms are 
     important, and Congress should build on this momentum and 
     pass sweeping campaign finance reform this year.
       In the past few decades, Congress has made substantial 
     progress in opening up the political process and making 
     Members more accountable. Members of Congress are now 
     required to make comprehensive financial disclosure, and 
     public and private transactions are subject to careful 
     scrutiny. This exposure is directly responsible for the 
     numerous successful ethics investigations in recent years. 
     Prior to these changes--thirty, fifty, or a hundred years 
     ago--such ethics violations were rarely prosecuted because 
     the public knew nothing about them. We need to build 
     continually on this progress, including the important steps 
     taken last year.


                    Congressional Accountability Act

       Last January Congress passed a law to apply private sector 
     laws to Congress. This legislation was based on a 
     recommendation of the Joint Committee on the Organization of 
     Congress, which I co-chaired, and is an expansion of a 
     measure passed by the House in 1994. This new law establishes 
     an Office of Compliance to apply these laws to Congress, 
     including labor regulations of the Occupational Safety and 
     Health Administration (OSHA).


                            lobbying reform

       With my strong support, Congress passed a lobbying reform 
     law that requires paid lobbyists to disclose who pays them, 
     whom they lobby, what issues they lobby for, and how much 
     they are paid to influence the government. A similar bill was 
     filibustered by the Senate in 1994. I am pleased that leaders 
     of both parties removed their opposition to these reforms.


                                gift ban

       The House passed a bill to ban all gifts to Members, with 
     limited exceptions for close family or friends. There is 
     simply no reason to take valuable gifts, meals, or vacations 
     from lobbyists.


                         the 1996 reform agenda

       We must push hard for additional reforms in 1996. The 
     forces against reform are strong--last year lobbying reform 
     and the gift ban were blocked five times before public 
     pressure forced the House leadership to have a vote. Congress 
     must build on these successes to complete additional reforms.


                        campaign finance reform

       The overriding reform issue for 1996 is campaign finance 
     reform. Some observers liken congressional reform to a three-
     legged stool. Banning gifts and restricting lobbying are the 
     first two legs, but without the third leg--campaign finance 
     reform--the stool will fall over. Hoosiers are fed up with 
     the flood of campaign money and favors from lobbyists.
       I have expressed the concern for many years that money 
     plays a disproportionate role in American politics. The 
     system forces candidates to spend too much time raising money 
     instead of meeting with the public and focusing on issues of 
     national importance. My sense is that the public will demand 
     major change in the present system. Reforming campaign 
     finance is critical if Congress is to be a truly 
     representative body.
       There are a number of key issues in campaign finance 
     reform:

                  Political action committees (PAC's)

       The importance of PACs should be reduced. We should cap 
     total PAC contributions to a candidate and reduce the limit 
     on contributions from a single PAC. Members of Congress 
     should also be prohibited from running ``leadership PACs'', 
     which a few Members use to gain power and influence over 
     other Members for their own personal agenda. We should also 
     block ``bundling'' of checks by PACs, which evades the $5,000 
     limit on PAC contributions.

                             ``Soft money''

        We should limit contributions by corporations, wealthy 
     individuals, and other organizations to political parties and 
     PACs affiliated with Members of Congress. These donors now 
     give hundreds of thousands of dollars for ``independent'' 
     expenditures. While direct expenditures for candidates are 
     prohibited--advertising, campaign salaries, etc.--the 
     indirect efforts, such as organization and issue or party 
     advertising, can be as influential. Because these actions are 
     theoretically not for federal candidates, they skirt federal 
     campaign limits and can avoid public disclosure.

                           Small contributors

       Reforms should emphasize the importance of grassroots 
     political fundraising over big-ticket donors. The number of 
     large contributions should be capped, and candidates should 
     be encouraged to seek a broad base of support from 
     contributions of less than $200--perhaps with a tax deduction 
     for individuals who make small contributions. A balance 
     should also be struck between small in-state contributions 
     and larger national contributions.

                            Spending limits

       Congress passed some mandatory spending limits in 1974, but 
     the Supreme Court overturned them as an unconstitutional 
     restriction on free speech. We should examine ways to 
     encourage voluntary limits, such as providing reduced-cost 
     television and radio time to candidates who abide by the 
     limits. Presidential campaigns now provide public matching 
     funds for candidates who agree to abide by voluntary spending 
     limits.

                              Enforcement

       Congress must also give more authority to the Federal 
     Election Commission to crack down on election law violations. 
     In one recent case, the FEC needed 12 months to audit a House 
     Member's campaign records that turned out to be fraudulent. 
     Prompt, tough enforcement is the key to cleaning up the 
     system.


                               conclusion

       Congress made significant progress on reforms in 1995, but 
     it must build on that momentum in 1996. Major campaign 
     finance reform will be the overriding reform issue this year 
     in Congress. The purpose of reform is to reduce special 
     interest influence and increase political competition. The 
     campaign finance system may never be perfect, but the 
     influence of money can and should be reduced. Until we begin 
     limiting money's disproportionate influence, public cynicism 
     will continue to grow.
       The passage of a complete reform agenda will help 
     demonstrate that members are serious about enhancing the 
     openness, effectiveness, and public credibility of Congress. 
     I 

[[Page E119]]
     strongly support sweeping campaign finance reform, and will urge my 
     colleagues to act now to make these commonsense changes that 
     reflect on the integrity of Congress.

                          ____________________