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1974/10/15 S3044 Federal Election Campaign Act (2)
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1974/10/15 S3044 Federal Election Campaign Act (2)
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The original documents are located in Box 9, folder "1974/10/15 S3044 Federal Election
Campaign Act (2)" of the White House Records Office: Legislation Case Files at the Gerald
R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 9 of the White House Records Office Legislation Case Files
at the Gerald R. Ford Presidential Library
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1237
FEDERAL ELECTION CAMPAIGN ACT AMENDMENTS
OF 1974
FORD
OCTOBER 7, 1974.-Ordered to be printed
Mr. CANNON, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany S. 3044]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the House to the bill (S. 3044) to amend
the Federal Election Campaign Act of 1971 to provide for public
financing of primary and general election campaigns for Federal
elective office, and to amend certain other provisions of law relating
to the financing and conduct of such campaigns, having met, after full
and free conference, have agreed to recommend and do recommend to
their respective Houses as follows:
That the Senate recede from its disagreement to the amendment of
the House to the text of the Senate bill and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the House amend-
ment insert the following:
That this Act may be cited as the "Federal Election Campaign Act
Amendments of 1974".
TITLE I-CRIMINAL CODE AMENDMENTS
LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES
SEC. 101. (a) Section 608 of title 18, United States Code, relating to
limitations on contributions and expenditures, is amended by striking
out subsections (b) and (c) and inserting in lieu thereof the following:
(b) (1) Except as otherwise provided by paragraphs (2) and (3),
no person shall make contributions to any candidate with respect to
any election for Federal office which, in the aggregate, exceed $1,000.
" (2) No political committee (other than a principal campaign com-
mittee) shall make contributions to any candidate with respect to any
election for Federal office which in the aggregate, exceed $5,000.
3
2
Contributions by the national committee of a political party serving
of Representative from a State which is entitled to only one Rep-
as the principal campaign committee of a candidate for the office of
resentative, the greater of-
President of the United States shall not exceed the limitation imposed
(i) 8 cents multiplied by the voting age population of the
by the preceding sentence with respect to any other candidate for
State (as certified under subsection (g)) ; or
Federal office. For purposes of this paragraph, the term 'political
(ii) $100,000 -
committee' means an organization registered as a political commit-
'(D) in the case of any campaign for election by a candidate for
tee under section 303 of the Federal Election Campaign Act of 1971 for
the office of Senator or by a candidate for the office of Representa-
a period of not less than 6 months which has received contributions
tive from a State which is entitled to only one Representative, the
from more than 50 persons and, except for any State political party
greater of-
organization, has made contributions to 5 or more candidates for
(i) 12 cents multiplied by the voting age population of the
Federal office.
State (as certified under subsection (g)) ; or
" (3) No individual shall make contributions aggregating more than
"(ii) $150,000;
$25,000 in any calendar year. For purposes of this paragraph, any
"(E) $70,000, in the case of any campaign for nomination for
contribution made in a year other than the calendar year in which
election, or for election, by a candidate for the office of Representa-
the election is held with respect to which such contribution was made,
tive in any other State, Delegate from the District of Columbia,
is considered to be made during the calendar year in which such election
or Resident Commissioner; or
is held.
(F) $15,000, in the case of any campaign for nomination for
(4) For purposes of this subsection-
election, or for election, by a candidate for the office of Delegate
'(A) contributions to a named candidate made to any political
from Guam or the Virgin Islands.
committee authorized by such candidate, in writing, to accept
(2) For purposes of this subsection-
contributions on his behalf shall be considered to be contributions
'(A) expenditures made by or on behalf of any candidate nomi-
made to such candidate; and
nated by a political party for election to the office of Vice Presi-
'(B) contributions made to or for the benefit of any candidate
dent of the United States shall be considered to be expenditures
nominated by a political party for election to the office of Vice
made by or on behalf of the candidate of such party for election to
President of the United States shall be considered to be contribu-
the office of President of the United States; and
tions made to or for the benefit of the candidate of such party for
(B) an expenditure is made on behalf of a candidate, includ-
election to the office of President of the United States.
ing a Vice Presidential candidate, if it is made by-
(5) The limitations imposed by paragraphs (1) and (2) of this
(i) an authorized committee or any other agent of the can-
subsection shall apply separately with respect to each election, except
didate for the purposes of making any expenditure; or
that all elections held in any calendar year for the office of President
(ii) any person authorized or requested by the candidate, an
of the United States (except a general election for such office) shall
authorized committee of the candidate, or an agent of the can-
be considered to be one election.
didate, to make the expenditure.
(6) For purposes of the limitations imposed by this section, all
(3) The limitations imposed by subparagraphs (C), (D), (E), and
contributions made by a person, either directly or indirectly, on behalf
(F) of paragraph (1) of this subsection shall apply separately with
of a particular candidate, including contributions which are in any
respect to each election.
way earmarked or otherwise directed through an intermediary or con-
(4) The Commission shall prescribe rules under which any
duit to such candidate, shall be treated as contributions from such
expenditure by a candidate for Presidential nomination for use in 2
person to such candidate. The intermediary or conduit shall report
or more States shall be attributed to such candidate's expenditure limi-
the original source and the intended recipient of such contribution
tation in each such State, based on the voting age population in such
to the Commission and to the intended recipient.
State which can reasonably be expected to be influenced by such
(c) (1) No candidate shall make expenditures in excess of-
expenditure.
(A) $10,000,000, in the case of a candidate for nomination for
(d) (1) At the beginning of each calendar year (commencing in
election to the office of President of the United States, except that
1976), as there become available necessary data from the Bureau of
the aggregate of expenditures under this subparagraph in any
Labor Statistics of the Department of Labor, the Secretary of Labor
one State shall not exceed twice the expenditure limitation appli-
shall certify to the Commission and publish in the Federal Register the
cable in such State to a candidate for nomination for election to
per centum difference between the price index for the 12 months pre-
the office of Senator, Delegate, or Resident Commissioner, as the
ceding the beginning of such calendar year and the price index for the
case may be;
base period. Each limitation established by subsection (c) and sub-
"(B) $20,000,000, in the case of a candidate for election to the
section (f) shall be increased by such per centum difference. Each
office of President of the United States;
amount 80 increased shall be the amount in effect for such calendar
(0) in the case of any campaign for nomination for election by
year.
a candidate for the office of Senator or by a candidate for the office
"(2) For purposes of paragraph (1)-
4
5
"(A) the term 'price index' means the average over a calendar
"(g) During the first week of January 1975, and every subsequent
year of the Consumer Price Index (all items-United States city
year, the Secretary of Commerce shall certify to the Commission and
average) published monthly by the Bureau of Labor Statistics;
publish in the Federal Register an estimate of the voting age popu-
and
lation of the United States, of each State, and of each congressional
(B) the term 'base period' means the calendar year 1974.
district as of the first day of July next preceding the date of certifica-
(e) (1) No person may make any expenditure (other than an
tion. The term 'voting age population' means resident population, 18
expenditure made by or on behalf of a candidate within the meaning
years of age or older.
of subsection (c) (2) (B)) relative to a clearly identified candidate dur-
"(h) No candidate or political committee shall knowingly accept
ing a calender year which, when added to all other expenditures made
any contribution or make any expenditure in violation of the provisions
by such person during the year advocating the election or defeat of
of this section. No officer or employee of a political committee shall
such candidate, exceeds $1,000.
knowingly accept a contribution made for the benefit or use of a
'(2) For purposes of paragraph (1)
candidate, or knowingly make any expenditure on behalf of a can-
" (A) 'clearly identified' means-
didate, in violation of any limitation imposed on contributions and
(i) the candidate's name appears;
expenditures under this section.
" (ii) a photograph or drawing of the candidate appears; or
(i) Any person who violates any provision of this section shall
(iii) the identity of the candidate is apparent by unam-
be fined not more than $25,000 or imprisoned not more than one year,
biguous reference; and
or both.".
(B) 'expenditure' does not include any payment made or
(b) (1) Section 608 (a) (1) of title 18, United States Code, relating
incurred by a corporation or a labor organization which, under
to limitations on contributions and expenditures, is amended to read
the provisions of the last paragraph of section 610, would not
as follows:
constitute an expenditure by such corporation or labor orga-
(a) (1) No candidate may make expenditures from his personal
nization.
funds, or the personal funds of his immediate family, in connection
(f) (1) Notwithstanding any other provision of law with respect to
with his campaigns during any calendar year for nomination for elec-
limitations on expenditures or limitations on contributions, the na-
tion, or for election, to Federal office in excess of, in the aggregate-
tional committee of a political party and a State committee of a polit-
(A) $50,000, in the case of a candidate for the office of Presi-
ical party, including any subordinate committee of a State commit-
dent or Vice President of the United States;
tee, may make expenditures in connection with the general election
(B) $35,000, in the case of a candidate for the office of Senator
campaign of candidates for Federal office, subject to the limitations
or for the office of Representative from a State which is entitled
contained in paragraphs (2) and (3) of this subsection.
to only one Representative; or
(2) The national committee of a political party may not make any
'(O) $25,000, in the case of a candidate for the office of Repre-
expenditure in connection with the general election campaign of any
sentative, or Delegate or Resident Commissioner, in any other
candidate for President of the United States who is affiliated with such
State. For purposes of this paragraph, any expenditure made in
party which exceeds an amount equal to 2 cents multiplied by the vot-
a year other than the calendar year in which the election is held
ing age population of the United States (as certified under subsection
with respect to which such expenditure was made, is considered
(g)). Any expenditure under this paragraph shall be in addition to
to be made during the calendar year in which such election is
any expenditure by a national committee of a political party serving
held.".
as the principal campaign committee of α candidate for the office of
(2) Such section 608 (a) is amended by adding at the end thereof
President of the United States.
the following new paragraphs:
(3) The national committee of a political party, or a State com-
"(3) No candidate or his immediate family may make loans or ad-
mittee of a political party, including any subordinate committee of a
rances from their personal funds in connection with his campaign for
State committee, may not make any expenditure in connection with
nomination for election, or for election, to Federal office unless such
the general election campaign of a candidate for Federal office in a
loan or advance is evidenced by a written instrument fully disclosing
State who is affiliated with such party which exceeds-
the terms and conditions of such loan or advance.
(A) in the case of a candidate for election to the office of
'(4) For purposes of this subsection, any such loan or advance shall
Senator, or of Representative from a State which is entitled to
be included in computing the total amount of such expenditures only
only one Representative, the greater of-
to the extent of the balance of such loan or advance outstanding and
"(i) 2 cents multiplied by the voting age population of the
unpaid.".
State (as certified under subsection (g)) ; or
(c) (1) Notwithstanding section 608(α) (1) of title 18, United States
(ii) $20,000; and
Code, relating to limitations on expenditures from personal funds, any
'(B) in the case of a candidate for election to the office of
individual may satisfy or discharge, out of his personal funds or the
Representative, Delegate, or Resident Commissioner in any other
personal funds of his immediate family, any debt or obligation which
State, $10,000.
is outstanding on the date of the enactment of this Act and which was
6
7
incurred by him or on his behalf by any political committee in connec-
tributions by foreign nationals, is amended by striking out "$5,000"
tion with any campaign ending before the close of December 31, 1972,
for election to Federal office.
and inserting in lieu thereof "$25,000".
(2) For purposes of this subsection-
(f) (1) Chapter 29 of title 18, United States Code, relating to elec-
tions and political activities, is amended by adding at the end thereof
(4) the terms "election", "Federal office", and "political com-
the following new sections!
mittee" have the meanings given them by section 591 of title 18,
United States Code; and
614. Prohibition of contributions in name of another
(B) the term "immediate family" has the meaning given it by
(a) No person shall make a contribution in the name of another
section 608 (a) (2) of title 18, United States Code.
person or knowingly permit his name to be used to effect such a con-
(d) (1) The first paragraph of section 613 of title 18, United States
tribution, and no person shall knowingly accept a contribution made
Code, relating to contributions by certain foreign agents, is amended-
by one person in the name of another person.
(A) by striking out "an agent of a foreign principal" and
(b) Any person who violates this section shall be fined not more
inserting in lieu thereof "a foreign national"; and
than $25,000 or imprisoned not more than one year, or both.
(B) by striking out ", either for or on behalf of such foreign
"§ 615. Limitation on contributions of currency
principal principal,". or otherwise in his capacity as agent of such foreign
(a) No person shall make contributions of currency of the United
(2) The second paragraph of such section 613 is amended by strik-
States or currency of any foreign country to or for the benefit of any
ing out "agent of a foreign principal or from such foreign principal"
candidate which, in the aggregate, exceed $100, with respect to any
and inserting in lieu thereof "foreign national".
campaign of such candidate for nomination for election, or for elec-
(3) The fourth paragraph of such section 613 is amended to read
tion, to Federal office.
as follows:
(b) Any person who violates this section shall be fined not more
"As used in this section, the term 'foreign national' means-
than $25,000 or imprisoned not more than one year, or both.
(1) a foreign principal, as such term is defined by section
616. Acceptance of excessive honorariums
1(b) of the Foreign Agents Registration Act of 1938 (22 U.S.C.
"Whoever, while an elected or appointed officer or employee of any
611(b)), except that the term 'foreign national' shall not in-
branch of the Federal Government-
clude any individual who is a citizen of the United States; or
(1) accepts any honorarium of more than $1,000 (excluding
(2) an individual who is not a citizen of the United States
amounts accepted for actual travel and subsistence expenses) for
and who is not lawfully admitted for permanent residence, as
defined by section 101 (a) (20) of the Immigration and Nation-
any appearance, speech, or article; or
" (2) accepts honorariums (not prohibited by paragraph (1) of
ality Act U.S.C. 1101 (a) (20)).
this section) aggregating more than $15,000 in any calendar year;
(4) (A) The heading of such section 613 is amended by striking out
shall be fined not less than $1,000 nor more than $5,000.
nationals". "agents of foreign principals" and inserting in lieu thereof "foreign
617. Fraudulent misrepresentation of campaign authority
(B) The table of sections for chapter 29 of title 18, United States
"Whoever, being a candidate for Federal office or an employee or
Code, is amended by striking out the item relating to section 613 and
agent of such α candidate-
inserting in lieu thereof the following:
(1) fraudulently misrepresents himself or any committee or
"613. Contributions by foreign nationals.".
organization under his control as speaking or writing or other-
(e) (1) The second paragraph of section 610 of title 18, United States
wise acting for or on behalf of any other candidate or political
Code, relating to penalties for violating prohibitions against contri-
party or employee or agent thereof on a matter which is damag-
butions or expenditures by national banks, corporations, or labor or-
ing to such other candidate or political party or employee or agent
ganizations, is amended-
thereof; or
(A) by striking out "$5,000" and inserting in lieu thereof
(2) willfully and knowingly participates in or conspires to
"$25,000"; and
participate in any plan, scheme, or design to violate paragraph
"$50,000". (B) by striking out "$10,000" and inserting in lieu thereof
(1);
shall, for each such offense, be fined not more than $25,000 or impris-
(2) Section 611 of title 18, United States Code (as amended by sec-
oned not more than one year, or both.".
tion 103 of this Act), relating to contributions by firms or individuals
(2) Section 591 of title 18, United States Code, relating to defini-
contracting with the United States, is amended in the first paragraph
tions, is amended by striking out the matter preceding paragraph (a)
thereof by striking out "$5,000" and inserting in lieu thereof "$25,000".
and inserting in lieu thereof the following:
(3) The third paragraph of section 613 of title 18, United States
"Except as otherwise specifically provided, when used in this sec-
Code (as amended by subsection (d) of this section), relating to con-
tion and in sections 597, 599, 600, 602, 608, 610, 611, 614, 615, and 617
of this title-".
8
9
(3) The table of sections for chapter 29 of title 18, United States
'(5) does not include-
items: Code, is amended by adding at the end thereof the following new
"(A) the value of services provided without compensa-
tion by individuals who volunteer a portion or all of
"614. Prohibition of contributions in name of another.
their time on behalf of a candidate or political committee;
"615. Limitation on contributions of currency.
"616. Acceptance of excessive honorariums.
"(B) the use of real or personal property and the cost
"617. Fraudulent misrepresentation of campaign authority.".
of invitations, food, and beverages, voluntarily provided
(4) Title III of the Federal Election Campaign Act of 1971 is
by an individual to a candidate in rendering voluntary
amended by striking out section 310, relating to prohibition of con-
personal services on the individual's residential premises
tributions in the name of another.
for candidate-related activities;
'(O) the sale of any food or beverage by a vendor for
CHANGES IN CRIMINAL CODE DEFINITIONS
use in a candidate's campaign at a charge less than the
normal comparable charge, if such charge for use in a
SEC. 102. (a) Paragraph (a) of section 591 of title 18, United States
candidate's campaign is at least equal to the cost of such
Code, relating to the definition of election, is amended-
food or beverage to the vendor;
(1) by inserting "or" before '(4)"; and
"(D) any unreimbursed payment for travel expenses
(2) by striking out and (5) the election of delegates to a con-
made by an individual who on his own behalf volunteers
stitutional convention for proposing amendments to the Constitu-
his personal services to a candidate, or
tion. of the United States".
"(E) the payment by a State or local committee of a
(3) Paragraph (2) of such section 591 relating to the definition of
political party of the costs of preparation, display, or
political committee. is amended to read as follows:
mailing or other distribution incurred by such committee
"(d) 'political committee' means any committee. club, associa-
with respect to a printed slate card or sample ballot, or
tion, or other groups of persons which receives contributions or
other printed listing, of 3 or more candidates for any
makes expenditures during a calendar year in an aggregate
public office for which an election is held in the State in
amount exceeding $1,000."
which such committee is organized, except that this
(c) Paragraph (e) of such section 591 relating to the definition of
clause shall not apply in the case of costs incurred by
contribution, is amended to read as follows:
such committee with respect to a display of any such
"(e) 'contribution'-
listing made on broadcasting stations, or in newspapers,
"(1) means a gift, subscription, loan, advance, or deposit
magazines or other similar types of general public politi-
of money or anything of value (except a loan of money by a
cal advertising;
national or State bank made in accordance with the applicable
to the extent that the cumulative value of activities by any
banking laws and regulations and in the ordinary course of
person on behalf of any candidate under each of clauses (B),
business, which shall be considered a loan by each endorser
(σ), and (D) does not exceed $500 with respect to any
or guarantor, in that proportion of the unpaid balance thereof
election:".
that each endorser or guarantor bears to the total number of
(d) Paragraph (f) of such section 591, relating to the definition of
endorsers or guarantors), made for the purpose of influencing
expenditure, is amended to read as follows:
the nomination for election, or election, of any person to
"(f) 'expenditure'-
Federal office or for the purpose of influencing the results of
"(1) means a purchase, payment, distribution, loan, ad-
a primary held for the selection of delegates to a national
vance. deposit, or gift of money or anything of value (except
nominating convention of a political party or for the expres-
a loan of money by a national or State bank made in accord-
sion of a preference for the nomination of persons for election
ance with the applicable banking laws and regulations and
to the office of President of the United States;
in the ordinary course of business), made for the purpose of
"(2) means a contract, promise, or agreement, express or
influencing the nomination for election. or election, of any
implied, whether or not legally enforceable, to make a contribu-
person to Federal office or for the purpose of influencing the
tion for such purposes;
results of a primary held for the selection of delegates to a
'(3) means funds received by a political committee which are
national nominating convention of a political party or for
transferred to such committee from another political committee
the expression of a preference for the nomination of persons
or other source;
for election to the office of President of the United States;
'(4) means the payment, by any person other than a candidate
"(2) means a contract. promise. or agreement, express or
or a political committee, of compensation for the personal services
implied, whether or not legally enforceable, to make any ex-
of another person which are rendered to such candidate or political
penditure: and
committee without charge for any such purpose; but
(3) means the transfer of funds by a political committee
to another political committee; but
11
10
other similar types of general public political advertis-
'(4) does not include-
ing;
((A) any news story, commentary, or editorial dis-
to the extent that the cumulative value of activities by any
tributed through the facilities of any broadcasting sta-
individual on behalf of any candidate under each of clauses
tion, newspaper, magazine, or other periodical publica-
(D) or (E) does-not exceed $500 with respect to any elec-
tion, unless such facilities are owned or controlled by any
tion;".
political party, political committee, or candidate;
(e) Section 591 of title 18, United States Code, relating to defini-
(B) nonpartisan activity designed to encourage indi-
tions, is amended-
viduals to register to vote or to vote;
(1) by striking out "and" at the end of paragraph (g) ;
(C) any communication by any membership orga-
(2) by striking out the period at the end of paragraph (h)
nization or corporation to its members or stockholders, if
and inserting in lieu thereof a semicolon; and
such membership organization or corporation is not
(3) by adding at the end thereof the following new para-
organized primarily for the purpose of influencing the
graphs:
nomination for election, or election, of any person to
(i) political party' means any association, committee, or or-
Federal office,
ganization which nominates a candidate for election to any Fed-
"(D) the use of real or personal property and the cost
eral office whose name appears on the election ballot as the
of invitations, food, and beverages, voluntarily provided
candidate of such association, committee, or organization;
by an individual to a candidate in rendering voluntary
"(j) 'State committee' means the organization which by virtue
personal services on the individual's residential premises
of the bylaws of a political party, is responsible for the day-to-
for candidate-related activities;
day operation of such political party at the State level, as deter-
(E) any unreimbursed payment for travel expenses
mined by the Federal Election Commission;
made by an individual who on his own behalf volunteers
"(k) 'national committee' means the organization which, by
his personal services to a candidate;
virtue of the bylaws of the political party, is responsible for the
"(F) any communication by any person which is not
day-to-day operation of such political party at the national level,
made for the purpose of influencing the nomination for
as determined by the Federal Election Commission established
election, or election, of any person to Federal office;
under section 310(a) of the Federal Election Campaign Act of
"(G) the payment by a State or local committee of a
1971; and
political party of the costs of preparation, display, or
1(1) "principal campaign committee' means the principal cam-
mailing or other distribution incurred by such commit-
paign committee designated by a candidate under section 302(f)
tee with respect to a printed slate card or sample ballot,
(1) of the Federal Election Campaign Act of 1971.".
or other printed listing, of 3 or more candidates for any
public office for which an election is held in the State in
POLITICAL FUNDS OF CORPORATIONS OR LABOR ORGANIZATIONS
which such committee is organized, except that his clause
shall not apply in the case of costs incurred by such
SEC. 103. Section 611 of title 18, United States Code, relating to
committee with respect to a display of any such listing
contributions by firms or individuals contracting with the United
made on broadcasting stations, or in newspapers, maga-
States, is amended by adding at the end thereof the following new
gines or other similar types of general public political
paragraphs:
advertising;
"This section does not prohibit or make unlawful the establishment
"(H) any costs incurred by a candidate in connection
or administration of, or the solicitation of contributions to, any sepa-
with the solicitation of contributions by such candidate,
rate segregated fund by any corporation or labor organization for the
except that this clause shall not apply with respect to
purpose of influencing the nomination for election. or election, of any
costs incurred by a candidate in excess of an amount
person to Federal office, unless the provisions of section 610 of this title
equal to 20 percent of the expenditure limitation appli-
prohibit or make unlawful the establishment or administration of, or
cable to such candidate under section 608(c) of this
the solicitation of contributions to, such fund.
title; or
"For purposes of this section, the term 'labor organization' has the
(I) any costs incurred by a political committee (as
meaning given it by section 610 of this title.".
such term is defined by section 608(b) (2) of this title)
EFFECT ON STATE LAW
with respect to the solicitation of contributions to such
political committee or to any general political fund con-
SEC. 104. (a) The provisions of chapter 29 of title 18, United States
trolled by such political committee. except that this clause
Code, relating to elections and political activities, supersede and pre-
shall not apply to exempt costs incurred with respect
empt any provision of State law with respect to election to Federal
to the solicitation of contributions to any such political
office.
committee made through broadcasting stations, news-
(b) For purposes of this section, the terms "election", "Federal
papers, magazines, outdoor advertising facilities, and
office", and "State" have the meanings given them by section 591 of
title 18, United States Code.
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12
TITLE II-AMENDMENTS TO FEDERAL ELECTION
candidate's campaign is at least equal to the cost of such
food or beverage to the vendor;
CAMPAIGN ACT OF 1971
(D) any unreimbursed payment for travel expenses
CHANGES IN DEFINITIONS FOR REPORTING AND DISCLOSURE
made by an individual who on his own behalf volunteers
SEC 201. (a) Section 301 of the Federal Election Campaign Act of
his personal services to a candidate;
'(E) the payment by a State or local committee of a
1971, relating to definitions, is amended-
(1) by inserting "and title IV of this Act" after "title";
political party of the costs of preparation, display, mail-
(2) by striking out ", and (5) the election of delegates to a
ing or other distribution incurred by such committee with
constitutional convention for proposing amendments to the Con-
respect to a printed slate card or sample ballot, or other
stitution of the United States" in paragraph (a), and by inserting
printed listing, of 3 or more candidates for any public
"and" before '(4)" in such paragraph;
office for which an election is held in the State in which
such committee is organized, except that this clause shall
(3) by amending paragraph (d) to read as follows:
(d) 'political committee' means any committee, club, associa-
not apply in the case of costs incurred by such committee
with respect to a display of any such listing made on
tion, or other group of persons which receives contributions or
broadcasting stations, or in newspapers, magazines or
makes expenditures during a calendar year in an aggregate
other similar types of general public political advertis-
amount exceeding $1,000,";
ing; or
(4) by amending paragraph (e) to read as follows:
(F) any payment made or obligation incurred by a
'(e) 'contribution'-
corporation or a labor organization wheih, under the pro-
"(1) means a gift, subscription, loan, advance, or deposit
visions of the last paragraph of section 610 of title 18,
of money or anything of value made for the purpose of-
United States Code, would not constitute an expenditure
"(A) influencing the nomination for election, or elec-
by such corporation or labor organization;
tion, of any person to Federal office or for the purpose of
to the extent that the cumulative value of activities by any in-
influencing the results of a primary held for the selection
dividual on behalf of any candidate under each of clauses
of delegates to a national nominating convention of a
(B), (C), and (D) does not exceed $500 with respect to any
political party, or
election;"
(B) influencing the result of an election held for the
(5) by striking out paragraph (f) and inserting in lieu thereof
expression of a preference for the nomination of persons
the following:
for election to the office of President of the United States;
'(f) 'expenditure'-
(2) means a contract, promise, or agreement, expressed or
"(1) means a purchase, payment, distribution, loan, ad-
implied, whether or not legally enforceable, to make a con-
vance, deposit, or gift of money or anything of value, made
tribution for such purposes;
for the purpose of-
(3) means funds received by a political committee which
(A) influencing the nomination for election, or the
are transferred to such committee from another political com-
election, of any person to Federal office of presidential
mittee or other source;
and vice-presidential elector; or
(4) means the payment, by any person other than a candi-
(B) influencing the results of a primary election held
date or a political committee, of compensation for the per-
for the section of delegates to a national nominating con-
sonal services of another person which are rendered to such
vention of a political party or for the expression of a
candidate or political committee without charge for any such
preference for the nomination of persons for election to
purpose; but
the office of President of the United States;
(5) does not include-
(2) means a contract, promise, or agreement, expressed or
(A) the value of services provided without compensa-
implied, whether or not legally enforceable, to make any ex-
tion by individuals who volunteer a portion or all of
penditure;
their time on behalf of a candidate or political committee;
(3) means the transfer of funds by a political committee
(B) the use of real or personal property and the cost
to another political committee; but
of invitations, food, and beverages, voluntarily provided
(4) does not include-
by an individual to a candidate in rendering voluntary
(A) any news story, commentary, or editorial dis-
personal services on the individual's residential premises
tributed through the facilities of any broadcasting sta-
for candidate-related activities;
tion, newspaper, magazine, or other periodical publica-
(0) the sale of any food or beverage by a vendor for
tion, unless such facilities are owned or controlled by any
use in a candidate's campaign at a charge less than the
political party, political committee, or candidate,
normal comparable charge, if such charge for use in a
((B) nonpartisan activity designed to encourage indi-
viduals to register to vote or to vote,
14
15
'(O) any communication by any membership organi-
"(l) 'State committee' means the organization which, by virtue
zation or corporation to its members or stockholders, if
of the bylaws of a political party, is responsible for the day-to-
such membership organization or corporation is not
day operation of such political party at the State level, as deter-
organized primarily for the purpose of influencing the
mined by the Commission;
nomination for election, or election, of any person to
(m) political party' means an association, committee, or orga-
Federal office;
nization which nominates a candidate for election to any Federal
(D) the use of real or personal property and the cost
office, whose name appears on the election ballot as the candidate
of invitations, food, and beverages, voluntarily provided
of such association, committee, or organization; and
by an individual to a candidate in rendering voluntary
(n) 'principal campaign committee' means the principal cam-
personal services on the individual's residential premises
paign committee designated by a candidate under section 302(f)
for candidate retain
rulative value
(1)
activities.by
of any
(b) (1) Section 401 of the Federal Election Campaign Act of 1971,
condidate do exceed 500
election;
relating to extension of credit by regulated industries, is amended by
any vareimbursed payments
expenses
striking out "Aas such term is defined in section 301 (c) of the Federal
made by an individual who on his own behalf volunteers
Election Campaign Act of 1971)
his personal services to a candidate if the cumulative
(2) Section 402 of the Federal Election Campaign Act of 1971,
amount for such individual incurred with respect to such
relating to prohibition against use of certain Federal funds for elec-
candidate does not exceed $500 with respect to any
tion activities, is amended by striking out the last sentence.
election;
" (F) any communication by any person which is not
ORGANIZATION OF POLITICAL COMMITTEE; PRINCIPAL CAMPAIGN
COMMITTEE
made for the purpose of influencing the nomination for
election, or election, of any person to Federal office; or
SEC. 202 (a) (1) Section 302(b) of the Federal Election Campaign
(G) the payment by a State or local committee of a
Act of 1971, relating to reports of contributions in excess of $10, is
political party of the costs of preparation. display, or
amended by striking out ". the name and address soccupation and
mailing or other distribution incurred by such commit-
principal place of business, if any)' and inserting in lieu thereof "of
tee with respect to a printed slate card or sample ballot,
the contribution and the identification".
or other printed listing, of 3 or more candidates for any
(2) Section 302 (c) of such Act, relating to detailed accounts, is
public office for which an election is held, in the State in
amended by striking out "full name and mailing address (occupation
which such committee is organized, except that this
and the principal place of business, if any)" in paragraphs (2) and
clause shall not apply in the case of costs incurred by
(4) and inserting in lieu thereof in each such paragraph "identifi-
such committee with respect to a display of any such
cation".
listing made on broadcasting stations, or in newspapers,
(3) Section 302 (c) of such Act is further amended by striking out
magazines or other similar types of general public polit-
the semicolon at the end of paragraph (2) and inserting in lieu thereof
ical advertising; or
"and, if a person's contributions aggregate more than $100, the account
(H) any payment made or obligation incurred by a
shall include occupation, and the principal place of business (if any) ;"-
corporation or a labor organization which, under the pro-
(b) Section 302(f) of such Act is amended to read as follows:
visions of the last paragraph of section 610 of title 18,
(f) (1) Each individual who is a candidate for Federal office (other
United States Code, would not constitute an expenditure
than the office of Vice President of the United States) shall designate
by such corporation or labor organization;'
a political committee to serve as his principal campaign committee. No
(6) by striking "and" at the end of paragraph (h) ;
political committee may be designated as the principal campaign com-
(7) by striking the period at the end of paragraph (i) and in-
mittee of more than one candidate, except that the candidate for the
serting in lieu thereof a semicolon; and
office of President of the United States nominated by a political party
(8) by adding at the end thereof the following new
may designate the national committee of such political party as his
paragraphs:
principal campaign committee. Except as provided in the preceding
(j) 'identification' means-
sentence, no political committee which supports more than one candi-
(1) in the case of an individual, his full name and the full
date may be designated as a principal campaign committee.
address of his principal place of residence; and
(2) Notwithstanding any other provision of this title, each report
(2) in the case of any other person, the full name and
or statement of contributions received or expenditures made by a
address of such person;
political committee (other than a principal campaign committee)
(k) 'national committee' means the organization which, by
which is required to be filed with the Commission under this title shall
virtue of the bylaws of a political party, is responsible for the day-
be filed instead with the principal campaign committee for the candi-
to-day operation of such political party at the national level, as
date on whose behalf such contributions are accepted or such expendi-
determined by the Commission;
tures are made.
16
17
'(3) It shall be the duty of each principal campaign committee to
(2) by striking out "Each" at the beginning of the first sentence
receive all reports and statements required to be filed with it under
of such section 304(a) and inserting in lieu thereof (1) Except
paragraph (2) of this subsection and to compile and file such reports
as provided by paragraph (2), each", and by adding at the end
and statements, together with its own reports and statements, with
thereof the following new paragraphs:
the Commission in accordance with the provisions of this title.".
"(2) Each treasurer of α political committee which is not a principal
campaign committee shall file the reports required under this section
REGISTRATION OF POLITICAL COMMITTEES; STATEMENTS
with the appropriate principal campaign committee.
SEC. 203. Section 303 of the Federal Election Campaign Act of
"(3) Upon a request made by a presidential candidate or a political
1971, relating to registration of political committees and statements, is
committee which operates in more than one State, or upon its own
amended by adding at the end thereof the following new subsection:
motion, the Commission may waive the reporting dates set forth in
"(e) In the case of a political committee which is not a principal
paragraph (1) (other than the reporting date set forth in paragraph
campaign committee, reports and notifications required under this
(1) (B)) and require instead that such candidate or political commit-
section to be filed with the Commission shall be filed instead with the
tee file reports not less frequently than monthly. The Commission may
appropriate principal campaign committee.".
not require a presidential candidate or a political committee operating
in more than one State to file more than 12 reports (not counting
REPORTS BY POLITICAL COMMITTEES AND CANDIDATES
any report referred to in paragraph (1) (B)) during any calendar
SEC. 204. (a) Section 304(a) of the Federal Election Campaign
year. If the Commission acts on its own motion under this paragraph
Act of 1971, relating to reports by political committees and candidates,
with respect to a candidate or a political committee, such candidate or
is amended-
committee may obtain judicial review in accordance with the provi-
(1) by striking out the second and third sentences and inserting
sions of chapter7 of title 5, United States Code.".
in lieu thereof the following:
(b) (1) Section (5) of the Federal Election Campaign Act
"The reports referred to in the preceding sentence shall be filed as
of 1971, relating to reports by political committees and candidates, is
follows:
amended by striking out "lender and endorsers" and inserting in lieu
'(A) (i) In any calendar year in which an individual is a candi-
thereof "lender, endorsers, and guarantors".
date for Federal office and an election for such Federal office is
(2) Section 304(b) (8) of the Federal Election Campaign Act of
held in such year, such reports shall be filed not later than the
1971, relating to reports by political committees and candidates, is
tenth day before the date on which such election is held and shall
amended by inserting immediately before the semicolon at the end
be complete as of the fifteenth day before the date of such elec-
thereof the following: together with total receipts less transfers
tion; except that any such report filed by registered or certified
between political committees which support the same candidate and
mail must be postmarked not later than the close of the twelfth
which do not support more than one candidate".
day before the date of such election.
(3) Section 304(b) of the Federal Election Campaign Act of 1971,
(ii) Such reports shall be filed not later than the thirtieth
relating to reports by political committees and candidates, is amended
day after the date of such election and shall be complete as of the
by striking out "full name and mailing address (occupation and the
twentieth day after the date of such election.
principal place of business, if any)" in paragraphs (9) and (10) and
"(B) In any other calendar year in which an individual is a
inserting in lieu thereof in each such paragraph "identification".
candidate for Federal office, such reports shall be filed after De-
(4) Section 304(b) (11) of the Federal Election Campaign Act of
cember 31 of such calendar year, but not later than January 31
1971, relating to reports by political committees and candidates, is
of the following calendar year and shall be complete as of the
amended by inserting immediately before the semicolon at the end
close of the calendar year with respect to which the report is filed
thereof the following: together with total expenditures less trans-
"(O) Such reports shall be filed not later than the tenth day
fers between political committees which support the same candidate
following the close of any calendar quarter in which the candidate
and which do not support more than one candidate".
or political committee concerned received contributions in excess
(5) Section 304(b) (12) of the Federal Election Campaign Act of
of $1,000, or made expenditures in excess of $1,000, and shall be
1971, relating to reports by political committees and candidates, is
complete as of the close of such calendar quarter; except that any
amended by inserting immediately before the semicolon a comma and
such report required to be filed after December 31 of any calendar
the following: together with a statement as to the circumstances
year with respect to which α report is required to be filed under
and conditions under which any such debt or obligation is extinguished
subparagraph (B) shall be filed as provided in such subparagraph.
and the consideration therefor".
"(D) When the last day for filing any quarterly report required
(c) Such section 304 is amended by adding at the end thereof the
by subparagraph (σ) occurs within 10 days of an election, the
following new subsections:
filing of such quarterly report shall be waived and superseded by,
"(d) This section does not require a Member of the Congress to re-
the report required by subparagraph (A) (i).
port as contributions received or as expenditures made, the value of
Any contribution of $1,000 or more received after the fifteenth day,
photographic, matting, or recording services furnished to him by the
but more than 48 hours, before any election shall be reported within
Senate Recording Studio, the House Recording Studio, or by an in-
48 hours after its receipt."; and
dividual whose pay is disbursed by the Secretary of the Senate or the
18
19
Clerk of the House of Representatives and who furnishes such services
"(1) any category of candidates of the obligation to comply
as his primary duty as an employee of the Senate or House of Repre-
personally with the reporting requirements of section 304, if it
sentatives, or if such services were paid for by the Republican or Demo-
determines that such action is consistent with the purposes of this
cratic Senatorial Campaign Committee, the Democratic National
Act; and
Congressional Committee, or the National Republican Congressional
"(2) any category of political committees of the obligation to
Committee. This subsection does not apply to such recording services
comply with the reporting requirements of such section if such
furnished during the calendar year before the year in which the Mem-
committees-
ber's term expires.
"(A) primarily support persons seeking State or local
"(e) Every person (other than a political committee or candidate)
office; and
who makes contributions or expenditures, other than by contribution
"(B) do not operate in more than one State or do not
to a political committee or candidate, in an aggregate amount in ex-
operate on a statewide basis.".
cess of $100 within a calendar year shall file with the Commission a
statement containing the information required by this section. State-
FORMAL REQUIREMENTS FOR REPORTS AND STATEMENTS
ments required by this subsection shall be filed on the dates on which
reports by political committees are filed but need not be cumulative.".
SEC. 207. Section 306 of the Federal Election Campaign Act of
(d) The heading for such section 304 is amended to read as follows:
1971, relating to formal requirements respecting reports and state-
ments, is amended by striking out subsection (a); by redesignating
"REPORTS".
subsections (b), (c), and (d) as subsections (a), (b), and (c), re-
(e) Notwithstanding the amendment to section 30.4 of the Federal
spectively; and by adding at the end thereof the following new
Election Campaign Act of 1971, relating to the time for filing reports,
subsection:
made by the foregoing provisions of this section, nothing in this Act
(d) If a report or statement required by section 303, 304(a) (1) (A)
shall be construed to waive the report required to be filed by the thirty-
(ii), (1) (B), 30.4 (1) (σ), or 304(e) of this title to be filed by
first day of January of 1975 under the provisions of such section 304,
a treasurer of a political committee or by a candidate or by any other
as in effect on the date of the enactment of this Act.
person, is delivered by registered or certified mail, to the Commission
or principal campaign committee with which it is required to be filed,
CAMPAIGN ADVERTISEMENTS
the United States postmark stamped on the cover of the envelope or
SEC. 205. (a) Section 305 of the Federal Election Campaign Act of
other container in which such report or statement is so mailed shall
1971, relating to reports by others than political committees, is
be deemed to be the date of filing.".
amended to read as follows:
REPORTS BY CERTAIN ORGANIZATIONS; FEDERAL ELECTION COMMISSION;
CAMPAIGN DEPOSITORIES
"REQUIREMENTS RELATING TO CAMPAIGN ADVERTISING
SEC. 208. (a) Title III of the Federal Election Campaign Act of
"Sec. 305. (a) No person who sells space in a newspaper or magazine
1971, relating to disclosure of Federal campaign funds, is amended by
to a candidate, or to the agent of a candidate, for use in connection
redesignating sections 308 and 309 as sections 316 and 317, respectively;
with such candidate's campaign, may charge any amount for such
by redesignating section 311 as section 321; and by inserting im-
space which exceeds the amount charged for comparable use of such
mediately after section 307 the following new sections:
space for other purposes.
"(b) Each political committee shall include on the face or front
"REPORTS BY CERTAIN PERSONS
page of all literature and advertisements soliciting contributions the
"SEC. 308. Any person (other than an individual) who expends any
following notice:
funds or commits any act directed to the public for the purpose
"A copy of our report is filed with the Federal Election Com-
of influencing the outcome of an election, or who publishes
mission and is available for purchase from the Federal Election
or broadcasts to the public any material referring to a candidate (by
Commission, Washington, D.C.''.
name, description, or other reference) advocating the election or
(b) Title I of the Federal Election Campaign Act of 1971 is re-
defeat of such candidate, setting forth the candidate's position on any
pealed.
public issue, his voting record, or other official acts (in the case of a
WAIVER OF REPORTING REQUIREMENTS
candidate who holds or has held Federal office), or otherwise designed
Sec. 206. Section 306(b) of the Federal Election Campaign Act of
to influence individuals to cast their votes for or against such candidate
1971 (as so redesignated by section 207 of this Act), relating to formal
or to withhold their votes from such candidate shall file reports with
requirements respecting reports and statements, is amended to read
the Commission as if such person were a political committee. The
as follows:
reports filed by such person shall set forth the source of the
"(b) The Commission may. by a rule of general applicability which
funds used in carrying out any activity described in the preceding
is published in the Federal Register not less than 30 days before its
sentence in the same detail as if the funds were contributions within
effective date, relieve-
the meaning of section 301 (e), and payments of such funds in the same
20
21
detail as if they were expenditures within the meaning of section 301
or to make expenditures on his behalf in such State, under rules pre-
(f). The provisions of this section do not apply to any publication
scribed by the Commission. The campaign depository of the candidate
or broadcast of the United States Government or to any news story,
of a political party for election to the office of Vice President of the
commentary, or editorial distributed through the facilities of a broad-
United States shall be the campaign depository designated by the
casting station or a bona fide newspaper, magazine, or other periodical
candidate of such party for election to the office of President of the
publication. A news story, commentary, or editorial is not considered
United States.
to be distributed through a bona fide newspaper, magazine, or other
"FEDERAL ELECTION COMMISSION
periodical publication if
"(1) such publication is primarily for distribution to individuals
"SEC. 310. (a) (1) There is established a commission to be known as
the Federal Election Commission. The Commission is composed of the
affiliated by membership or stock ownership with the person
(other than an individual) distributing it or causing it to be
Secretary of the Senate and the Clerk of the House of Representa-
tives, ex officio and without the right to vote, and 6 members appointed
distributed, and not primarily for purchase by the public at news-
stands or by paid subscription; or
as follows:
"(A) 2 shall be appointed, with the confirmation of a majority
"(2) the news story, commentary, or editorial is distributed by
of both Houses of the Congress, by the President pro tempore of
a person (other than an individual) who devotes a substantial
Senate upon the recommendations of the majority leader of the
part of his activities to attempting to influence the outcome of
Senate and the minority leader of the Senate;
elections, or to influence public opinion with respect to matters
(B) 2 shall be appointed, with the confirmation of a majority
of national or State policy or concern.
of both Houses of Congress, by the Speaker of the House of Rep-
"CAMPAIGN DEPOSITORIES
resentatives, upon the recommendations of the majority leader of
the House and the minority leader of the House; and
"Sec. 309. (a) (1) Each candidate shall designate one or more
'(O) 2 shall be appointed, with the confirmation of a majority
national or State banks as his campaign depositories. The principal
of both Houses of the Congress, by the President of the United
campaign committee of such candidate, and any other political commit-
States.
tee authorized by him to receive contributions or to make expenditures
A member appointed under subparagraph (A), (B), or (σ) shall
on his behalf, shall maintain a checking account at a depository desig-
not be affiliated with the same political party as the other member
nated by the candidate and shall deposit any contributions received by
appointed under such paragraph.
such committee into such account. A candidate shall deposit any pay-
(2) Members of the Commission shall serve for terms of 6 years,
ment received by him under chapter 95 or chapter 97 of the Internal
except that of the members first appointed-
Revenue Code of 1954 in the account maintained by his principal cam-
"(A) one of the members appointed under paragraph (1) (A)
paign committee. No expenditure may be made by any such committee
shall be appointed for a term ending on the April 30 first occur-
on behalf of a candidate or to influence his election except by check
ring more than 6 months after the date on which he is appointed;
drawn on such account, other than petty cash expenditures as provided
(B) one of the members appointed under paragraph (1)
in subsection (b).
(B) shall be appointed for a term ending 1 year after the April 30
(2) The treasurer of each political committee (other than a politi-
on which the term of the member referred to in subparagraph (4)
cal committee authorized by a candidate to receive contributions or to
of this paragraph ends;
make expenditures on his behalf) shall designate one or more national
"(C) one of the members appointed under paragraph (1) (σ)
or State banks as campaign depositories of such committee, and shall
shall be appointed for a term ending 2 years thereafter;
maintain a checking account for the committee at each such deposi-
'(D) one of the members appointed under paragraph (1)
tory. All contributions received by such committee shall be deposited in
(A) shall be appointed for a term ending 3 years thereafter;
such accounts. No expenditure may be made by such committee except
(E) one of the members appointed under paragraph (1)
by check drawn on such accounts, other than petty cash expenditures as
(B) shall be appointed for a term ending 4 years thereafter;
provided in subsection (b).
and
"(b) A political committee may maintain a petty cash fund out of
(F) one of the members appointed under paragraph (1)
which it may make expenditures not in excess of $100 to any person
(C) shall be appointed for a term ending 5 years thereafter.
in connection with a single purchase or transaction. A record of petty
An individual appointed to fill a vacancy occurring other than by the
cash disbursements shall be kept in accordance with requirements
expiration of a term of office shall be appointed only for the unexpired
established by the Commission, and such statements and reports there-
term of the member he succeeds. Any vacancy occurring in the member-
of shall be furnished to the Commission as it may require.
ship of the Commission shall be filled in the same manner as in the case
(c) A candidate for nomination for election, or for election, to the
of the original appointment.
office of President of the United States may establish one such deposi-
(3) Members shall be chosen on the basis of their maturity, expe-
tory for such State by this principal campaign committee and any
rience, integrity, impartiality, and good judgment and shall be chosen
other political committee authorized by him to receive contributions
from among individuals who, at the time of their appointment, are not
elected or appointed officers or employees in the executive, legislative,
or judicial branch of the Government of the United States.
24
25
agement and Budget, it shall concurrently transmit a copy of such
(B) In any case in which the Clerk of the House of Representa-
estimate or request to the Congress.
tives or the Secretary of the Senate (who receive reports and state-
(2) Whenever the Commission submits any legislative recom-
ments as custodian for the Commission) has reason to believe a viola-
mendations, or testimony, or comments on legislation, requested by
tion of this Act or section 608, 610, 611, 613, 614, 615, 616, or 617 of
the Congress or by any Member of the Congress, to the President of
title 18, United States Code, has occurred, he shall refer such apparent
the United States or the Office of Management and Budget, it shall
violation to the Commission.
concurrently transmit a copy thereof to the Congress or to the Member
"(2) The Commission, upon receiving any complaint under para-
requesting the same. No officer or agency of the United States shall
graph (1) (A), or a referral under paragraph (1) (B), or if it has
have any authority to require the Commission to submit its legislative
reason to believe that any person has committed a violation of any
recommendations, testimony, or comments on legislation, to any office
such provision, shall notify the person involved of such apparent
or agency of the United States for approval, comments, or review,
violation and shall-
prior to the submission of such recommendations, testimony, or com-
"(A) report such apparent violation to the Attorney General;
ments to the Congress.
or
"REPORTS
(B) make an investigation of such apparent violation.
"SEC. 312. The Commission shall transmit reports to the President
(3) Any investigation under paragraph (2) (B) shall be conducted
of the United States and to each House of the Congress no later than
expeditiously and shall include an investigation of reports and state-
March 31 of each year. Each such report shall contain a detailed state-
ments filed by any complainant under this title, if such complainant is
ment with respect to the activities of the Commission in carrying out
a candidate. Any notification or investigation made under paragraph
its duties under this title, together with recommendations for such leg-
(2) shall not be made public by the Commission or by any other per-
islative or other action as the Commission considers appropriate.
son without the written consent of the person receiving such notifica-
tion or the person with respect to whom such investigation is made.
"ADVISORY OPINIONS
(4) The Commission shall, at the request of any person who receives
notice of an apparent violation under paragraph (2), conduct a hear-
"SEC. 313. (a) Upon written request to the Commission by any
ing with respect to such apparent violation.
individual holding Federal office, any candidate for Federal office, or
(5) If the Commission determines, after investigation, that there
any political committee, the Commission shall render an advisory opin-
is reason to believe that any person has engaged, or is about to engage
ion, in writing, within a reasonable time with respect to whether any
in any acts or practices which constitute or will constitute a violation
specific transaction or activity by such individual, candidate, or politi-
of this Act, it may endeavor to correct such violation by informal
cal committee would constitute a violation of this Act, of chapter 95
methods of conference, conciliation, and persuasion. If the Commis-
or chapter 96 of the Internal Revenue Code of 1954, or of section 608,
sion fails to correct the violation through informal methods, it may
610, 611, 613, 614, 615, 616, or 617 of title 18, United States Code.
institute a civil action for relief, including a permanent or temporary
(b) Notwithstanding any other provision of law, any person with
injunction, restraining order, or any other appropriate order in the
respect to whom an advisory opinion is rendered under subsection (a)
district court of the United States for the district in which the person
who acts in good faith in accordance with the provisions and findings
against whom such action is brought is found, resides, or transacts
of such advisory opinion shall be presumed to be in compliance with
business. Upon a proper showing that such person has engaged or is
the provision of this Act, of chapter 95 or chapter 96 of the Internal
about to engage in such acts or practices, the court shall grant a per-
Revenue Code of 1954, or of section 608, 610, 611, 613, 614, 615, 616, or
manent or temporary injunction, restraining order, or other order.
617 of title 18, United States Code, with respect to which such advisory
"(6) The Commission shall refer apparent violations to the appro-
opinion is rendered.
priate law enforcement authorities to the extent that violations of
(c) Any request made under subsection (a) shall be made public
provisions of chapter 29 of title 18, United States Code, are involved,
by the Commission. The Commission shall, before rendering an ad-
or if the Commission is unable to correct apparent violations of this
visory opinion with respect to such request, provide any interested
Act under the authority given it by paragraph (5), or if the Commis-
party with an opportunity to transmit written comments to the Com-
sion determines that any such referral is appropriate.
mission with respect to such request.
"(7) Whenever in the judgment of the Commission, after affording
due notice and an opportunity for a hearing, any person has engaged
"ENFORCEMENT
or is about to engage in any acts or practices which constitute or will
"SEC 3,14. (a) (1) (A) Any person who believes a violation of this
constitute a violation of any provision of this Act or of section 608,
Act or of section 608, 610, 611, 613, 614, 615, 616, or 617 of title 18,
610, 611, 613, 614, 615, 616, or 617 of title 18, United States Code, upon
United States Code, has occurred may file a complaint with the Com-
request by the Commission the Attorney General on behalf of the
mission.
United States shall institute a civil action for relief, including a perma-
26
27
nent or temporary injunction, restraining order, or any other appro-
be brought no later than 20 days after the decision of the court of
priate order in the district court of the United States for the district
in which the person is found, resides, or transacts business. Upon a
appeals. (c) It shall be the duty of the court of appeals and of the Supreme
proper showing that such person has engaged or is about to engage
Court of the United States to advance on the docket and to expedite to
in such acts or practices, a permanent or temporary injunction, re-
the greatest possible extent the disposition of any matter certified
straining order, or other order shall be granted without bond by
under subsection (a)
such court.
(b) Until the appointment and qualification of all the members of
(8) In any action brought under paragraph (5) or (7) of this sub-
the Federal Election Commission and its general counsel and until
section, subpenas for witnesses who are required to attend a United
the transfer provided for in this subsection, the Comptroller General,
States district court may run into any other district.
the Secretary of the Senate, and the Clerk of the House of Representa-
(9) Any party aggrieved by an order granted under paragraph
tives shall continue to carry out their responsibilities under title I and
(5) or (7) of this subsection may, at any time within 60 days after
title III of the Federal Election Campaign Act of 1971 as such titles
the date of entry thereof, file a petition with the United States court of
existed on the day before the date of enactment of this Act. Upon the
appeals for the circuit in which such order was issued for judicial
appointment of all the members of the Commission and its general
review of such order.
counsel, the Comptroller General, the Secretary of the Senate, and
(10) The judgment of the court of appeals affirming or setting
the Clerk of the House of Representatives shall meet with the Com-
aside, in whole or in part, any such order of the district court shall be
mission and arrange for the transfer, within 30 days after the date
final, subject to review by the Supreme Court of the United States
on which all such members and the general counsel are appointed, of
upon certiorari or certification as provided in section 1254 of title 28,
copies of all appropriate records, documents, memorandums, and
United States Code.
other papers associated with carrying out their responsibilities under
(11) Any action brought under this subsection shall be advanced
title I and title III of the Federal Election Campaign Act of 1971
on the docket of the court in which filed, and put ahead of all other
and chapter 95 of the Internal Revenue Code of 1954.
actions (other than other actions brought under this subsection or
(c) Title III of the Federal Election Campaign Act of 1971 is
under section 315).
amended-
(b) In any case in which the Commission refers an apparent viola-
(1) by amending section 301 (g), relating to definitions, to read
tion to the Attorney General, the Attorney General shall respond by
as follows:
report to the Commission with respect to any action taken by the At-
"(g) 'Commission' means the Federal Election Commission,"
torney General regarding such apparent violation. Each report shall
(g) 'Commission' means the Federal Election Commission,",
be transmitted no later than 60 days after the date the Commission
(2) by striking out "supervisory officer" in section 302 (d) and
refers any apparent violation, and at the close of every 30-day period
inserting in lieu thereof "Commission";
thereafter until there is final disposition of such apparent violation.
(3) by amending section 303, relating to registration of politi-
The Commission may from time to time prepare and publish reports
cal committees; statement-
on the status of such referrals.
(A) by striking out "supervisory officer" each time it ap-
pears therein and inserting in lieu thereof "Commission";
"JUDICIAL REVIEW
and
"SEC. 315. (a) The Commission, the national committee of any
(B) by striking out "he" in the second sentence of sub-
political party, or any individual eligible to vote in any election for
section (a) of such section and inserting in lieu thereof "it";
the office of President of the United States may institute such actions
(4) by amending section 304, relating to reports by political
in the appropriate district court of the United States, including ac-
committees and candidates-
tions for declaratory judgment, as may be appropriate to construe
(A) by striking out "appropriate supervisory officer" and
the constitutionality of any provision of this Act or of section 608,
"him" in the first sentence thereof and inserting in lieu
610, 611, 613, 614, 615, 616, or 617 of title 18, United States Code.
thereof "Commission" and "it", respectively; and
The district court immediately shall certify all questions of consti-
(B) by striking out "supervisory officer" where it appears
tutionality of this Act or of section 608, 610, 611, 613, 614, 615, 616, or
in paragraphs (12) and (13) of subsection (b) and inserting
617 of title 18, United States Code, to the United States court of
in lieu thereof "Commission";
appeals for the circuit involved, which shall hear the matter sitting
(5) by striking out "supervisory officer" each place it appears in
en banc.
section 306 relating, to formal requirements respecting reports
"(b) Notwithstanding any other provision of law, any decision on
and statements, and inserting in lieu thereof "Commission";
a matter certified under subsection (a) shall be reviewable by appeal
(6) by striking out "Comptroller General of the United States"
directly to the Supreme Court of the United States. Such appeal shall
and "he" in section 307, relating to reports on convention financ-
28
29
ing, and inserting in lieu thereof "Federal Election Commission"
ing before the period at the end thereof the following: ", in accord-
and "it", respectively;
ance with the provisions of subsection (c)".
(7) by amending the heading for section 316 (as redesignated
(2) Such section 316 is amended-
by subsectioin (a) of this section) relating to duties of the super-
(A) by striking out subsection (b) and subsection (d); by re-
visory officer, to read as follows: "DUTIES";
designating subsection (c) as subsection (b) ; and
(8) by striking out "supervisory officer" in section 316 as re-
(B) by adding at the end thereof the following new sub-
designated by subsection (a) of this section) the first time it ap-
sections:
pears and inserting in lieu thereof "Commission";
"(c) (1) The Commission, before prescribing any rule or regula-
(9) by amending section 316 (a) (as redesignated by subsection
tion under this section, shall transmit a statement with respect to
(a) of this section)-
such rule or regulation to the Senate or the House of Representatives,
(A) by striking out "him" in paragraph (1) and inserting
as the case may be, in accordance with the provisions of this subsèc-
in lieu thereof "it"; and
tion. Such statement shall set forth the proposed rule or regulation
(B) by striking out "him" in paragraph (4) and inserting
and shall contain a detailed explanation and justification of such rule
in lieu thereof "it", and
or regulation.
(10) by amending subsection (c) of section 316 (as redesignated
(2) If the appropriate body of the Congress which receives a state-
by subsection (a) of this section)-
ment from the Commission under this subsection does not, through ap-
(A) by striking out "Comptroller General" each place it
propriate action, disapprove the proposed rule or regulation set forth
appears therein and inserting in lieu thereof "Commission"
in such statement no later than 30 legislative days after receipt of such
and striking out "his" in the second sentence of such subsec-
statement, then the Commission may prescribe such rule or regulation.
tion and inserting in lieu thereof "its"; and
In the case of any rule or regulation proposed to deal with reports or
(B) by striking out the last sentence thereof; and
statements required to be filed under this title by a candidate for the
(11) by striking out "a supervisory officer" in section 317 of
office of President of the United States, and by political committees
such Act (as redesignated by subsection (a) of this Act) and in-
supporting such a candidate both the Senate and the House of Rep-
serting in lieu thereof "the Commission".
resentatives shall have the power to disapprove such proposed rule or
DUTIES AND REGULATIONS
regulation. The Commission may not prescribe any rule or regulation
which is disapproved under this paragraph.
SEC. 209. (a) (1) Section 316(a) of the Federal Election Campaign
(3) If the Commission proposes to prescribe any rule or regulation
Act of 1971 (as redesignated and amended by section 208 (a) of this
dealing with reports or statements required to be filed under this title
Act), relating to duties of the Commission, is amended by strik-
by a candidate for the office of Senator, and by political committees
ing out paragraphs (6), (7), (8), (9), and (10), and by redesignating
supporting such candidate, it shall transmit such statement to the
paragraphs (11), (12), and (13) as paragraphs (8), (9), and (10),
Senate. If the Commission proposes to prescribe any rule or regulation
respectively, and by inserting immediately after paragraph (5) the
dealing with reports or statements required to be filed under this title
following new paragraphs:
by a candidate for the office of Representative, Delegates or Resident
"(6) to compile and maintain a cumulative index of reports and
Commission, and by political committees supporting such candidate,
statements filed with it, which shall be published in the Federal
it shall transmit such statement to the House of Representatives. If
Register at regular intervals and which shall be available for
the Commission proposes to prescribe any rule or regulation dealing
purchase directly or by mail for α reasonable price;
with reports or statements required to be filed under this title by a
"(7) to prepare and publish from time to time special reports
candidate for the office of President and by political committees sup-
listing those candidates for whom reports were filed as required
porting such candidate it shall transmit such statement to the House
by this title and those candidates for whom such reports were not
of Representatives and the Senate.
filed as 30 required;".
"(4) For purposes of this subsection, the term 'legislative days'
(2) Notwithstanding section (a) (7) of the Federal Election
does not include, with respect to statements transmitted to the Senate,
Campaign Act of 1971 (relating to an annual report by the supervisory
any calendar day on which the Senate is not in session, and with re-
officer), as in effect on the day before the effective date of the amend-
spect to statements transmitted to the House of Representatives, any
ments made by paragraph (1) of this subsection, no such annual report
calendar day on which the House of Representatives is not in session,
shall be required with respect to any calendar year beginning after
and with respect to statements transmitted to both such bodies, any
December 31, 1972.
calendar day on which both Houses of the Congress are not in
(3) (1) Section 316(a) (10) of the Federal Election Campaign Act
session.
of 1971 (as 80 redesignated by subsection (a) of this section), relat-
(d) (1) The Commission shall prescribe suitable rules and regula-
ing to the prescription of rules and regulations, is amended by insert-
tions to carry out the provisions of this title, including such rules and
regulations as may be necessary to require that-
30
31
'(A) reports and statements required to be filed under this
under chapter 95 and 96 of the Internal Revenue Code of 1954, not to
title by a candidate for the office of Representative in, or Dele-
exceed $5,000,000 for the fiscal year ending June 30, 1975.".
gate or Resident Commissioner to, the Congress of the United
States, and by political committees supporting such candidate,
following sections:
shall be received by the Clerk of the House of Representatives
TITLE III-GENERAL PROVISIONS
as custodian for the Commission;
(B) reports and statements required to be filed under this
EFFECT ON STATE LAW
title by a candidate for the office of Senator, and by political
committees supporting such candidate, shall be received by the
SEC. 301. Section 403 of the Federal Election Campaign Act of
Secretary of the Senate as custodian for the Commission; and
1971, relating to effect on State law, is amended to read as follows:
'(C) the Clerk of the House of Representatives and the Sec-
"EFFECT ON STATE LAW
retary of the Senate, as custodians for the Commission, each shall
make the reports and statements received by him available for
"SEC. 403. The provisions of this Act, and of rules prescribed under
public inspection and copying in accordance with paragraph (4)
this Act, supersede and preempt any provision of State law with
of subsection a, and preserve such reports and statements in
respect to election to Federal office.".
accordance with paragraph (5) of subsection (a).
'(2) It shall be the duty of the Clerk of the House of Representa-
PERIOD OF LIMITATIONS; ENFORCEMENT
tives and the Secretary of the Senate to cooperate with the Commission
SEC. 302. Title IV of the Federal Election Campaign Act of 1971,
in carrying out its duties under this Act and to furnish such services
relating to general provisions, is amended by redesignating section
and facilities as may be required in accordance with this section.".
406 as section 408 and by inserting immediately after section 405 the
MISCELLANEOUS PROVISIONS
following new_sections:
SEC. 210. Title III of the Federal Election Campaign Act of 1971
"PERIOD OF LIMITATIONS
is amended by inserting immediately after section 317 (as so re-
"SEC. 406. (a) No person shall be prosecuted, tried, or punished
designated by section 208(a) of this Act) the following new sections:
for any violation of title III of this Act or of section 608, 610, 611, 613,
"USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES
614, 615, 616, or 617 of title 18, United States Code, unless the indict-
ment is found or the information is instituted within 3 years after the
"SEC. 318. Amounts received by a candidate as contributions that
are in excess of any amount necessary to defray his expenditures, and
date of the violation.
'(b) Notwithstanding any other provision of law—
any other amounts contributed to an individual for the purpose of sup-
'(1) the period of limitation referred to in subsection (a) shall
porting his activities as a holder of Federal office, may be used by such
apply with respect to violations referred to in such subsection com-
candidate or individual, as the case may be, to defray any ordinary and
mitted before, on, or after the effective date of this section; and
necessary expenses incurred by him in connection with his duties as a
"(2) no criminal proceeding shall be instituted against any
holder of Federal office, may be contributed by him to any organi-
person for any act or omission which was a violation of any pro-
zation described in section 170(c) of the Internal Revenue Code of
vision of title III of this Act, or section 608, 610, 611, or 613 of
1954, or may be used for any other lawful purpose. To the extent any
title 18, United States Code, as in effect on December 31, 1974, if
such contribution, amount contributed, or expenditure thereof is not
such act or omission does not constitute a violation of any such
otherwise required to be disclosed under the provisions of this title, such
provision, as amended by the Federal Election Campaign Act
contribution, amount contributed, or expenditure shall be fully dis-
Amendments of 1974.
closed in accordance with rules promulgated by the Commission. The
Nothing in this subsection shall affect any proceeding pending in any
Commission is authorized to prescribed such rules as may be necessary
court of the United States on the effective date of this section.
to carry out the provisions of this section.
"ADDITIONAL ENFORCEMENT AUTHORITY
"PROHIBITION OF FRANKED SOLICITATIONS
"SEC. 319. No Senator, Representative, Resident Commissioner, or
"SEC. 407. (a) In any case in which the Commission, after notice
Delegate shall make any solicitations of funds by a mailing under
and opportunity for a hearing on the record in accordance with sec-
the frank under section 3210 of title 39, United States Code.
tion 554 of title 5, United States Code, makes a finding that a person
who, while a candidate for Federal office, failed to file a report re-
"AUTHORIZATION OF APPROPRIATIONS
quired by title III of this Act, and such finding is made before the
expiration of the time within which the failure to file such report may
"SEC. 320. There are authorized to be appropriated to the Commis-
be prosecuted as a violation of such title III, such person shall be dis-
sion for the purpose of carrying out its functions under this Act, and
32
33
qualified from becoming a candidate in any future election for Federal
"(2) the terms 'licensee' and 'station licensee' when used with
office for a period of time beginning on the date of such finding and
respect to a community antenna television system mean the opera-
ending one year after the expiration of the term of the Federal office
tor of such system.".
for which such person was a candidate.
APPROPRIATIONS TO CAMPAIGN FUND
"(3) Any finding by the Commission under subsection (a) shall be
subject to judicial review in accordance with the provisions of chapter
Sec. 403. (a) Section 9006 (a) of the Internal Revenue Code of 1954
7 of title 5, United States Code.".
(relating to establishment of campaign fund) is amended-
(1) by striking out "as provided by appropriation Acts" and
TITLE IV-AMENDMENTS TO OTHER LAWS;
inserting in lieu thereof "from time to time"; and
EFFECTIVE DATES
(2) by adding at the end thereof the following new sentence:
"There is appropriated to the fund for each fiscal year, out of
POLITICAL ACTIVITIES BY STATE AND LOCAL OFFICERS AND EMPLOYEES
amounts in the general fund of the Treasury not otherwise ap-
SEC. 401. (a) Section 1502 (a) (3) of title 5, United States Code
propriated, an amount equal to the amounts so designated during
(relating to influencing elections, taking part in political campaigns
each fiscal year, which shall remain available to the fund without
prohibitions, exceptions), is amended to read as follows:
fiscal year limitation.".
(3) be a candidate for elective office.".
(3) In addition to the amounts appropriated to the Presidential
(3) (1) Section 1503 of title 5, United States Code, relating to non-1
Election Campaign Fund established under section 9006 of the Inter-
partisan political activity, is amended to read as follows:
nal Revenue Code of 1954 (relating to payments to eligible candidates)
by the last sentence of subsection (a) of such section (as amended by
"§ 1503. Nonpartisan candidacies permitted
subsection (a) of this section), there is appropriated to such fund an
"Section 1502 (a) (3) of this title does not prohibit any State or local
amount equal to the sum of the amounts designated for payment under
officer or employee from being a candidate in any election if none of
section 6096 of such Code (relating to designation by individuals to
the candidates is to be nominated or elected at such election as repre
the Presidential Election Campaign Fund) before anuary 1, 1975,
senting a party any of whose candidates for Presidential elector re-
not otherwise taken into account under the provisions of such sec-
ceived votes in the last preceding election at which Presidential eleo,
tion 9006, as amended by this section.
tors were selected.".
(2) The table of sections for chapter 15 of title 5, United State
ENTITLEMENTS OF ELiGIBLE OANDIDATES TO PAYMENTS FROM
Code, is amended by striking out the item relating to section 1501
PRESIDENTIAL ELECTION CAMPAIGN FUND
and inserting in lieu thereof the following new item:
SEC. 404. (a) Subsection (a) (1) of section 9004 of the Internal
"1503. Nonpartisan candidacies permitted.".
Revenue Code of 1954 (relating to entitlement of eligible candidates
(c) Section 1501 of title 5, United States Code, relating to defini
to payments) is amended to read as follows:
tions, is amended-
"(1) The eligible candidates of each major party in a presiden-
(1) by striking out paragraph (5);
tial election shall be entitled to equal payments under section
(8) in paragraph (3) thereof, by inserting "and" immediatel
9006 in an amount which, in the aggregate, shall not exceed
after "Federal Reserve System;" and
the expenditure limitations applicable to such candidates under
(3) in paragraph (4) thereof, by striking out "; and" and in
section 608 (c) (1) (B) of title 18, United States Code.".
serting in lieu thereof a period.
(b) (1) Subsection (a) (2) (4) of section 9004 of such Code (relat-
ing to entitlement of eligible candidates to payments) is amended by
REPEAL OF COMMUNICATIONS MEDIA EXPENDITURE LIMITATIONS
striking out "computed" and inserting in lieu thereof "allowed".
SEC. 402. (a) Section 315 of the Communications Act of 193
(2) The first sentence of subsection (a) (3) of section 9004 of such
(relating to candidates for public office; facilities, rules) is amended bi
Code (relating to entitlement of eligible candidates to payments) is
striking out subsections (c), (d), and (e), and by redesignating sul
amended by striking out "computed" and inserting in lieu thereof
"allowed".
sections (f) and (g) as subsections (c) and (d), respectively.
(b) Section 315(c) of such Act (as so redesignated by subsectio
(c) (1) Section 9002(3) of the Internal Revenue Code of 1954 (re-
(a) of this section), relating to definitions, is amended to read as
lating to the definition of "Comptroller General") is amended to read
follows:
as follows:
"(c) For purposes of this section-
(3) The term 'Commission' means the Federal Election Com-
"(1) the term broadcasting station' includes a community an-
mission established by section 310(a) (1) of the Federal Election
tenna television system; and
Campaign Act of 1971.".
34
35
(2) Section 9002(1) of such Code (relating to the definition of "au-
(A) by striking out "Comptroller General" and inserting in lieu
thorized committee") is amended by striking out "Comptrotter Gen-
thereof "Commission";
eral" and inserting in lieu thereof "Commission".
(B) by striking out "he" and inserting in lieu thereof "it"; and
(3) The third sentence of section 9002 (11) of such Code (relating
(O) by striking out "him" and inserting in lieu thereof "it".
to the definition of "qualified campaign expense") is amended by
(14) The heading for section 9010 of such Code (relating to par-
"Commission". striking out "Comptroller General" and inserting in lieu thereof
ticipation by Comptroller General in judicial proceedings) is amended
by striking out "COMPTROLLER GENERAL" and inserting in lieu
(4) Section 9003 of such Code (relating to condition for eligibil-
thereof "COMMISSION".
ity for payments) is amended-
(15) Section 9010 of such Code (relating to appearance by coun-
(4) by striking out "Comptroller General" each place it ap-
sel) is amended-
pears therein and inserting in lieu thereof "Commission"; and
(A) by striking out "Comptroller General" and inserting in lieu
(B) by striking out "he" each place it appears therein and in-
thereof "Commission";
serting in lieu thereof "it".
(B) by striking out "his" and inserting in lieu thereof "its":
(5) Section 9003(b) of such Code (relating to major parties) and
and
section 9003 (c) of such Code (relating to minor and new parties) each
(O) by striking out "he" each place it appears therein and in-
are amended by striking out "Comptroller General" each place it ap-
serting in lieu thereof "it".
pears therein and inserting in lieu thereof "Commission".
(16) Section 9010(b) of such Code (relating to recovery of certain
(6) The heading for section 9005 of such Code (relating to certifica-
payments) is amended by striking out "Comptroller General" and
tion by Comptroller General) is amended by striking out "COMP"
inserting in lieu thereof "Commission".
SION". TROLLER GENERAL" and inserting in lieu thereof "COMMIS-
(17) Section 9010(c) of such Code (relating to declaratory and
injunctive relief) is amended by striking out "Comptroller General"
(7) Section 9005 (b) of such Code (relating to finality of certifica
each place it appears therein and inserting in lieu thereof "Commis-
tions and determinations) is amended-
sion".
(A) by striking out "Comptroller General" each place it appears
(18) Section 9010(d) of such Code (relating to appeal) is amended
therein and inserting in lieu. thereof "Commission"; and
by striking out "Comptroller General" and inserting in lieu thereof
(B) by striking out "him" and inserting in lieu thereof "it",
"Commission" and by striking out "he" and inserting in lieu thereof
(8) Section 9006(c) of such Code (relating to payments from the
"it".
fund) and section 9006(d) of such Code (relating to insufficien
(19) The heading for subsection (a) of section 9011 of such Code
amounts in fund) each are amended by striking out "Comptrolle
(relating to review of certification, determination, or other action by
"Commission". General" each place it appears therein and inserting in lieu thereof
the Comptroller General) is amended by striking out "COMPTROLLER
GENERAL" and inserting in lieu thereof "COMMISSION".
(9) Section 9007(a) of such Code (relating to examinations and
(20) Section 9011 (a) of such Code, as amended by paragraph (19)
audits) is amended by striking out "Comptroller General" and inserta
(relating to review of certification, determination, or other action by
ing in lieu thereof "Commission".
the Commission) is amended by striking out "Comptroller General"
amended- (10) Section 9007 (b) of such Code (relating to repayments) is
each place it appears therein and inserting in lieu thereof "Commis-
sion".
(4) by striking out "Comptroller General" each place it apr
(21) Section 9011(b) of such Code (relating to suits to implement
pears therein and inserting in lieu thereof "Commission"; and
chapter) is amended by striking out "Comptroller General" and in-
(B) by striking out "he" each place it appears therein and
serting in lieu thereof "Commission".
inserting in lieu thereof "it".
(22) Section 9012(d) (1) of such Code (relating to false statements,
(11) Section 9007 (c) of such Code (relating to notification) is
etc.) is amended-
amended by striking out "Comptroller General" and inserting in lier
(A) by striking out "Comptroller General" each place it ap-
thereof "Commission".
pears therein and inserting in lieu thereof "Commission"; and
amended- (12) Section 9009(a) of such Code (relating to reports) is
(B) by striking out "him" and inserting in lieu thereof "it".
(A) by striking out "Comptrotter General" each place it ap
CERTIFICATION FOR PAYMENT BY COMMISSION
pears therein and inserting in lieu thereof "Commission"; and
Sec. 405. (a) Section 9005(a) of the Internal Revenue Code of
(B) by striking out "him" and inserting in lieu thereof "its
1954 (relating to initial certifications for eligibility for payments) 28
(13) Section 9009(b) of such Code (relating to regulations, etc.)
amended to read as follows:
is amended-
"(a) INITIAL CERTIFICATIONS.-Not later than 10 days after the
candidates of a political party for President and Vice President of the
36
37
United States have met all applicable conditions for eligibility to
"(3) PAYMENTS.-Upon receipt of certification from the Com-
receive payments under this chapter set forth in section 9003, th
mission under subsection (g), the Secretary shall make payments
Commission shall certify to the Secretary for payment to such eligibl
from the appropriate account maintained under subsection (a) to
candidates under section 9006 payment in full of amounts to which
the national committee of a major party or minor party which
such candidates are entitled under section 9004.".
elects to receive its entitlement under this subsection. Such pay-
(3) Section 9003 (a) of such Code (relating to general condition
ments shall be available for use by such committee in accordance
for eligibility for payments) is amended-
with the provisions of subsection (c).
(1) by striking out "with respect to which payment is sought
"(4) LIMITATION.-Payments to the national committee of a ma-
in paragraph (1) and inserting in lieu thereof "of such candr
jor party or minor party under this subsection from the account
dates";
designated for such committee shall be limited to the amounts in
(2) by inserting "and" at the end of paragraph (2),
such account at the time of payment.
(3) by striking out ", and" at the end of paragraph (3) and
"(5) ADJUSTMENT OF ENTITLEMENT.-The entitlements estab-
inserting in lieu thereof a period; and
lished by this subsection shall be adjusted in the same manner as
(4) by striking out paragraph (4).
expenditure limitations established by section 608(c) and section
FINANCING OF PRESIDENTIAL NOMINATING CONVENTIONS
608(f) of title 18, United States Code, are adjusted pursuant to
the provisions of section (d) of such title.
SEC. 406. (a) Chapter 95 of subtitle H of the Internal Revenu
"(c) USE OF FUNDS.-No part of any payment made under subsection
Code of 1954 (relating to the presidential election campaign fund)
(b) shall be used to defray the expenses of any candidate or delegate
amended by striking out section 9008 (relating to information on pro
who is participating in any presidential nominating convention. Such
posed expenses) and inserting in lieu thereof the following ner
section:
payments shall be used only-
"(1) to defray expenses incurred with respect to a presidential
"SEC. 9008. PAYMENTS FOR PRESIDENTIAL NOMINATING CONVEN
nominating convention (including the payment of deposits) by or
TIONS.
on behalf of the national committee receiving such payments; or
"(a) ESTABLISHMENT OF Accounts.-The Secretary shall maintain in
"(2) to repay loans the proceeds of which were used to defray
the fund, in addition to any account which he maintains under sectio
such expenses, or otherwise to restore funds (other than con-
9006 (a), a separate account for the national committee of each majo
tributions to defray such expenses received by such committee)
party and minor party. The Secretary shall deposit in each such ac-
used to defray such expenses.
count an amount equal to the amount which each such committee ma
"(d) LIMITATION OF EXPENDITURES.-
receive under subsection (3). Such deposits shall be drawn fron
"(1) MAJOR PARTIES.-Except as provided by paragraph (3),
amounts designated by individuals under section 6096 and shall 31
the national committee of a major party may not make expendi-
made before any transfer is made to any account for any eligible cand
tures with respect to a presidential nominating convention which,
date under section 9006 (a).
in the aggregate, exceed the amount of payments to which such
"(b) ENTITLEMENT TO PAYMENTS FROM THE FUND.-
committee is entitled under subsection (3) (1).
"(1) MAJOR PARTIES.-Subject to the provisions of this section
"(2) MINOR PARTIES.-EQCEPT as provided by paragraph (3),
the national committee of a major party shall be entitled to pay
the national committee of a minor party may not make expendi-
ments under paragraph (3), with respect to any presidential nom
tures with respect to a presidential nominating convention which,
inating convention, in amounts which, in the aggregate, shall not
in the aggregate, exceed the amount of the entitlement of the
exceed $2,000,000.
national committee of a major party under subsection (b) (1).
"(2) MINOR PARTIES.-Subject to the provisions of this section
"(3) EXCEPTION.-The Commission may authorize the na-
the national committee of a minor party shall be entitled to pay
tional committee of a major party or minor party to make ex-
ments under paragraph (3), with respect to any presidential nom
penditures which, in the aggregate, exceed the limitation estab-
inating convention, in amounts which, in the aggregate, shall not
lished by paragraph (1) or paragraph (2) of this subsection.
exceed an amount which bears the same ratio to the amount the
Such authorization shall be based upon a determination by the
national committee of a major party is entitled to receive unde
Commission that, due to extraordinary and unforeseen circum-
paragraph (1) as the number of popular votes received by th
stances, such expenditures are necessary to assure the effective
candidate for President of the minor party, as such candidate, <
operation of the presidential nominating convention by such
the preceding presidential election bears to the average numb
committee.
of popular votes received by the candidates for President of the
"(e) AVAILABILITY OF PAYMENTS.-The national committee of a ma-
United States of the major parties in the preceding presidenti
jor party or minor party may receive payments under subsection (b) (3)
election.
beginning on July 1 of the calendar year immediately preceding the
38
39
calendar year in which a presidential nominating convention of the
political party involved is held.
9008(d), unless the incurring of such expenses is authorized by the
"(f) TRANSFER TO THE FUND.-If, after the close of a presidentic
Commission under section 9008 (d) (3).
nominating convention and after the national committee of the politi
(4) Section 9012 (c) of such Code (relating to untawful use of pay-
cal party involved has been paid the amount which it is entitled to
ments) is amended by redesignating paragraph (2) as paragraph (3)
receive under this section, there are moneys remaining in the account
and by inserting immediately after paragraph (1) the following new
of such national committee, the Secretary shall transfer the moneys sa
paragraph:
remaining to the fund.
"(2) It shall be unlawful for the national committee of a major
party or minor party which receives any payment under section
"(g) CERTIFICATION BY Commission.-Any major party or mino
9008(b) (3) to use, or authorize the use of, such payment for any
party may file a statement with the Commission in such form and man
purpose other than a purpose authorized by section 9008
ner and at such times as it may require, designating the national com
(5) Section 9012 (e) (1) of such Code (relating to kickbacks and
mittee of such party. Such statement shall include the informatio
illegal payments) is amended by adding at the end thereof the follow-
required by section 303(b) of the Federal Election Campaign Act 0
ing new sentence: "It shall be untawful for the national committee of
1971, together with such additional information as the Commissio
a major party or minor party knowingly and willfully to give or
may require. Upon receipt of a statement filed under the preceding
accept any kickback or any itlegal payment in connection with any
sentences, the Commission promptly shall verify such statemen
expense incurred by such committee with respect to a presidential
according to such procedures and criteria as it may establish and shal
nominating convention.".
certify to the Secretary for payment in full to any such committee o'
(6) Section 9012(e) (3) of such Code (relating to kickbacks and
amounts to which such committee may be entitled under subsection (b)
illegal payments) is amended by inserting immediately after "their
Such certifications shall be subject to an examination and audit whic,
authorized committees" the following: or in connection with any
the Commission shall conduct no later than December 31 of the calen
expense incurred by the national committee of a major party or minor
dar year in which the presidential nominating convention involved
party with respect to a presidential nominating convention,".
held.
(c) The table of sections for chapter 95 of subtitle H of such Code
"(h) REPAYMENTS.-The Commission shall have the same authorit
(relating to the presidential election campaign fund) is amended by
to require repayments from the national committee of a major part
striking out the item relating to section 9008 and inserting in lieu
or a minor party as it has with respect to repayments from any eligib
thereof the following new item:
candidate under section 9007(b). The provisions of section 9007 (a
"Sec. 9008. Payments for presidential nominating conventions.".
and section 9007 (d) shall apply with respect to any repayment
(d) Section 276 of such Code (relating to certain indirect contribu-
quired by the Commission under this subsection.".
tions to political parties) is amended by striking out subsection (c)
(b) (1) Section 9009(a) of such Code (relating to reports)
and by redesignating subsection (d) as subsection (c).
amended by striking out "and" in paragraph (2) thereof; by strikin
out the period at the end of paragraph (3) thereof and inserting
TAX RETURNS BY POLITICAL COMMITTEES
lieu thereof and"; and by adding at the end thereof the followin
new paragraphs:
SEC. 407. Section 6012(a) of the Internal Revenue Code of 1954
(4) the expenses incurred by the national committee of a maj
(relating to persons required to make returns of income) is amended by
party or minor party with respect to a presidential nominatir
adding at the end thereof the following new sentence: "The Secretary
convention;
or his delegate shall, by regulation, exempt from the requirement of
(5) the amounts certified by it under section 9008(g) for pay
making returns under this section any political committee (as defined
ment to each such committee; and
in section 301 (d) of the Federal Election Campaign Act of 1971) hav-
(6) the amount of payments, if any, required from such com
ing no gross income for the taxable year.".
mittees under section 9008(h), and the reasons for each such pay
PRESIDENTIAL PRIMARY MATCHING PAYMENT ACCOUNT
ment.".
(2) The heading for section 9012 of such Code (relating to
SEC. 408. (a) The analysis of subtitles at the beginning of the In-
cess campaign eqpenses) is amended by striking out "CAMPAIGN".
ternal Revenue Code of 1954 is amended by adding at the end thereof
(3) Section 9012(a) (1) by such Code (relating to excess expense
the following:
is amended by adding at the end thereof the following new senteno
"It shall be untawful for the national committee of a major party or
"Subtitle H. Financing of presidential election campaigns.".
minor party knowingly and willfully to incur expenses with resp
(3) The analysis of chapters at the beginning of subtitle H of such
to a presidential nominating convention in excess of the expenditu
Code is amended by striking out the item relating to chapter 96 and
limitation applicable with respect to such committee under sectu
inserting in lieu thereof the following:
40
41
"Chapter 96. Presidential Primary Matching Payment Account.".
with respect to which such gift, subscription, loan, advance, or
deposit of money, or anything of value, is made, for the pur-
(c) Subtitle H of such Code is amended by striking out chapter 96
pose of influencing the result of a primary election,
relating to Presidential Election Campaign Fund Advisory Board
"(B) means a contract, promise, or agreement, whether or
and inserting in lieu thereof the following new chapter:
not legally enforceable, to make a contribution for any such
"CHAPTER 96-PRESIDENTIAL PRIMARY MATCHING
purpose,
"(C) means funds received by a political committee which
PAYMENT ACCOUNT
are transferred to that committee from another committee,
"Sec. 9031. Short title.
and
"Sec. 9032. Definitions.
"Sec. 9033. Eligibility for payment.
(D) means the payment by any person other than a can-
"Sec. 9034. Entitlement of eligible candidates to payments.
didate, or his authorized committee, of compensation for the
"Sec. 9035. Qualified campaign expense limitation.
personal services of another person which are rendered to the
"Sec. 9036. Certification by Commission.
candidate or committee without charge, but
"Sec. 9037. Payments to eligible candidates.
"Sec. 9038. Examinations and audits; repayments.
'(E) does not include-
"Sec. 9039. Reports to Oongress; regulations.
(i) except as provided in subparagraph (D), the
"Sec. 9040. Participation of Commission in judicial proceedings.
value of personal services rendered to or for the benefit
"Sec. 9041. Judicial review.
of a candidate by an individual who receives no compen-
"Sec. 9042. Criminal penalties.
sation for rendering such service to or for the benefit of
"SEC. 9031. SHORT TITLE.
the candidate, or
"This chapter may be cited as the 'Presidential Primary Matchin
(ii) payments under section 9037.
Payment Account Act'.
"(5) The term matching payment account' means the Presi-
"SEC. 9032. DEFINITIONS.
dential Primary Matching Payment Account established under
"FOR PURPOSES OF THIS CHAPTER-
section 9037 (a).
"(1) The term 'authorized committee' means, with respect to
'(6) The term 'matching payment period' means the period
the candidates of a political party for President and Vice Pres
beginning with the beginning of the calendar year in which a
dent of the United States, any political committee which is au
general election for the office of President of the United States
thorized in writing by such candidates to incur expenses to ful
will be held and ending on the date on which the national conven-
ther the election of such candidates. Such authorization shall
tion of the party whose nomination a candidate seeks nominates
addressed to the chairman of such political committee, and a cop
its candidate for the office of President of the United States, or, in
of such authorization shall be filed by such candidates with th
the case of a party which does not make such nomination by na-
Commission. Any withdrawal of any authorization shall also be
tional convention, ending on the earlier of (A) the date such
in writing and shall be addressed and filed in the same manner 08
party nominates its candidate for the office of President of the
the authorization.
United States, or (B) the last day of the last national convention
"(2) The term 'candidate' means an individual who seeks nom
held by a major party during such calendar year.
ination for election to be President of the United States. For
"(7) The term primary election' means an election, including
purposes of this paragraph, an individual shall be considered
to
a runoff election or a nominating convention or caucus held by a
seek nomination for election if he (4) takes the action necessa
political party, for the selection of delegates to a national nomi-
under the law of a State to qualify himself for nomination h
nating convention of a political party, or for the expression of a
election, (B) receives contributions or incurs qualified campai
preference for the nomination of persons for election to the office
expenses, or (C) gives his consent for any other person to recel
of President of the United States.
contributions or to incur qualified campaign expenses on h
(8) The term 'political committee' means any individual, com-
behalf.
mittee, association, or organization (whether or not incorporated)
(3) The term 'Commission' means the Federal Election Com
which accepts contributions or incurs qualified campaign expenses
mission established by section 310(a) (1) of the Federal Elect
for the purpose of influencing, or attempting to influence, the
Campaign Act of 1971.
nomination of any person for election to the office of President
(4) Except as provided by section 9034(a), the ter
of the United States.
'contribution'-
(9) The term 'qualified campaign expense' means a purchase,
'(A) means a gift, subscription, loan, advance, or dep
payment, distribution, loan, advance, deposit, or gift of money or
of money, or anything of value, the payment of which
of anything of value-
made on or after the beginning of the calendar year imme
(4) incurred by a candidate, or by his authorized com-
ately preceding the calendar year of the presidential elect
mittee, in connection with his campaign for nomination for
election, and
42
43
(B) neither the incurring nor payment of which constil
the expenditure limitation applicable under section 608(c) (1) (4) of
tutes a violation of any law of the United States or of the
title 18, United States Code.
State in which the expense is incurred or paid.
"SEC. 9035. QUALIFIED CAMPAIGN EXPENSE LIMITATION.
For purposes of this paragraph, an expense is incurred by a candi
candidate shall knowingly incur qualified campaign expenses
date or by an authorized committee if it is incurred by a person
in "No excess of the expenditure limitation applicable under section 608(c)
specifically authorized in writing by the candidate or committee
as the case may be, to incur such expense on behalf of the candi-
(1) (4) of title 18, United States Code.
date or the committee.
"SEC. 9036. CERTIFICATION BY COMMISSION.
"(10) The term 'State' means each State of the United Stated
and the District of Columbia.
"(a) establishes his eligibility under section 9033 to receive payments
INITIAL CERTIFICATIONS.-Not later than 10 days after a candi- under
"SEC. 9033. ELIGIBILITY FOR PAYMENTS.
date section 9037, the Commission shall certify to the Secretary for amounts pay-
ment which such candidate is entitled under section 9034. The Commission
to such candidate under section 9037 payment in full of
"(a) CONDITIONS.-To be eligible to receive payments under section
9037, a candidate shall, in writing-
shall to make such additional certifications as may be necessary to permit 9037.
"(1) agree to obtain and furnish to the Commission any evi-
candidates to receive payments for contributions under section
dence it may request of qualified campaign expenses,
"(2) agree to keep and furnish to the Commission any records
Commission under subsection (a), and all determinations made by that
"(b) FINALITY OF DETERMINATIONS.-Initial certifications by the it
books, and other information it may request, and
"(3) agree to an audit and examination by the Commission
under this chapter, are final and conclusive, except to the extent under
under section 9038 and to pay any amounts required to be paid
they are subject to examination and audit by the Commission
under such section.
section 9038 and judicial review under section 9041.
"(b) EXPENSE LIMITATION; DECLARATION OF INTENT; MINIMUM
"SEC. 9037. PAYMENTS TO ELIGIBLE CANDIDATES.
CONTRIBUTIONS.-To be eligible to receive payments under section 9037, an
"(a) ESTABLISHMENT OF Account.-The ,Secretary shall maintain
candidate shall certify to the Commission that-
in the Presidential Election Campaign Fund established by section such
"(1) the candidate and his authorized committees will not in-
9006(a), in addition to any account which he maintains under
cur qualified campaign expenses in excess of the limitation on such
section, a separate account to be known as the Presidential Primary the
expenses under section 9035,
Matching Payment Account. The Secretary shall deposit into
(2) the candidate is seeking nomination by a political part
matching payment account, for use by the candidate of any political the
for election to the office of President of the United States,
party who is eligible to receive payments under section 9033,
"(3) the candidate has received matching contributions which
amount available after the ,Secretary determines that amounts for
in the aggregate, exceed $5,000 in contributions from residents of
payments under section 9006(c) and for payments under section
each of at least 20 States, and
9008(b) (3) are available for such payments.
"(4) the aggregate of contributions certified with respect to
"(b) PAYMENTS FROM THE MATCHING PAYMENT Account.-Upon re-
any person under paragraph (3) does not exceed $250.
"SEC. 9034. ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS
not before the beginning of the matching payment period, the Secre-
ceipt of a certification from the Commission under section 9036, but
"(a) IN GENERAL.-Every candidate who is eligible to receive pay
tary or his delegate shall promptly transfer the amount certified by the
ments under section 9033 is entitled to payments under section 9037 in
Commission from the matching payment account to the candidate. In
an amount equal to the amount of each contribution received by such
making such transfers to candidates of the same political party, the
candidate on or after the beginning of the calendar year immediatel
,Secretary or his delegate shall seek to achieve an equitable distribution
preceding the calendar year of the presidential ebection with respec
of funds available under subsection (a), and the ,Secretary or his dele-
to which such candidate is seeking nomination, or by his authorize
gate shall take into account, in seeking to achieve an equitable distribu-
committees, disregarding any amount of contributions from any per
tion, the sequence in which such certifications are received.
son to the extent that the total of the amounts contributed by such
"SEC. 9038. EXAMINATIONS AND AUDITS; REPAYMENTS.
person on or after the beginning of such preceding calendar year
"(a) EXAMINATIONS AND AuDITs.-After each matching payment pe-
exceeds $250. For purposes of this subsection and section 9033 (b), the
riod, the Commission shall conduct a thorough examination and audit
term 'contribution' means a gift of money made by a written instru
of the qualified campaign expenses of every candidate and his author-
ment which identifies the person making the contribution by full nam
ized committees who received payments under section 9037.
and mailing address, but does not include a subscription, loan, advanc
"(b) REPAYMENTS.-
or deposit of money, or anything of value or anything described in
(1) If the Commission determines that any portion of the pay-
subparagraph (B), (C), or (D) of section 9032(4).
ments made to a candidate from the matching payment account
"(b) LIMITATIONS.-The total amount of payments to which a can
was in excess of the aggregate amount of payments to which such
didate is entitled under subsection (a) shall not exceed 50 percent of
candidate was entitled under section 9034, it shall notify the can-
44
45
didate, and the candidate shall pay to the Secretary or his dele
gate an amount equal to the amount of excess payments.
and information, which it determines to be necessary to carry out its
(2) If the Commission determines that any amount of an
responsibilities under this chapter.
payment made to a candidate from the matching payment ac-
"(c) REVIEW OF REGULATIONS.-
count was used for any purpose other than-
"(1) The Commission, before prescribing any rule or regula-
"(A) to defray the qualified campaign expenses with
tion under subsection (8), shall transmit a statement with respect
spect to which such payment was made, or
to such rule or regulation to the Senate and to the House of Rep-
(B) to repay loans the proceeds of which were used,
resentatives, in accordance with the provisions of this subsection.
otherwise to restore funds (other than contributions to defra
Such statement shall set forth the proposed rule or regulation and
qualified campaign expenses which were received and es
shall contain a detailed explanation and justification of such rule
pended) expenses, which were used, to defray qualified campaig
or regulation.
(2) If either such House does not, through appropriate action,
it shall notify such candidate of the amount so used, and the cand
disapprove the proposed rule or regulation set forth in such
date shall pay to the Secretary or his delegate an amount equal to
statement no later than 30 legislative days after receipt of such
such amount.
statement, then the Commission may prescribe such rule or regu-
"(3) Amounts received by a candidate from the matching pay
lation. The Commission may not prescribe any rute or regulation
to ment account may be retained for the liquidation of all obligation
which is disapproved by either such House under this paragraph.
pay qualified campaign expènses incurred for a period no
"(3) For purposes of this subsection, the term 'legislative
After all obligations have been liquidated, that portion of and
exceeding 6 months after the end of the matching payment period
days' does not include any calendar day on which both Houses
of the Congress are not in session.
unexpended balance remaining in the candidate's accounts whic
"SEC. 9040. PARTICIPATION BY COMMISSION IN JUDICIAL PROCEED-
bears the same ratio to the total unexpended balance as the tota
INGS.
amount received from the matching payment account bears to
total of all deposits made into the candidate's accounts shall
"(a) APPEARANCE BY COUNSEL.-The Commission is authorized to
promptly repaid to the matching payment account.
appear in and defend against any action instituted under this section,
"(c) NOTIFICATION.-No notification shall be made by the Commissio
either by attorneys employed in its office or by counsel whom it may
under subsection (3) with respect to a matching payment period mor
appoint without regard to the provisions of title 5, United States
than 3 years after the end of such period.
Code, governing appointments in the competitive service, and whose
compensation it may fix without regard to the provisions of chapter
"(d) DEPOSIT OF REPAYMENTS.-All payments received by the Secr
51 and subchapter III of chapter 53 of such title.
the matching payment account.
tary or his delegate under subsection (b) shall be deposited by him
"(b) RECOVERY OF CERTAIN PAYMENTS.-The Commission is author
ized, through attorneys and counsel described in subsection (a), to
"SEC. 9039. REPORTS TO CONGRESS; REGULATIONS.
institute actions in the district courts of the United States to seek
each matching payment period, submit a full report to the Senate and
"(a) REPORTS.-The Commission shall, as soon as practicable afta
recovery of any amounts determined to be payable to the Secretary or
his delegate as a result of an examination and audit made pursuant to
House of Representatives setting forth-
section 9038,
"(1) the qualified campaign expenses (shown in such detail
"(c) INJUNCTIVE RELIEF.-The Commission is authorized, through
the Commission determines necessary) incurred by the candidate
attorneys and counsel described in subsection (a), to petition the courts
of each political party and their authorized committees,
of the United States for such injunctive relief as is approriate to im-
"(2) the amounts certified by it under section 9036 for paymer
plement any provision of this chapter.
to each eligible candidate, and
"(d) APPEAL.-The Commission is authorized on behalf of the
"(3) the amount of payments, if any, required from candidate
United States to appeal from, and to petition the Supreme Court for
,Senate document.
Each report submitted pursuant to this section shall be printed as a
under section 9038, and the reasons for each payment require
certiorari to review, judgments or decrees entered with respect to
actions in which it appears pursuant to the authority provided in this
section.
"(b) REGULATIONS, Етс.-Тhе Commission is authorized to prescri
"SEC. 9041. JUDICIAL REVIEW.
rules and regulations in accordance with the provisions of subsectic
(c), to conduct examinations and audits (in addition to the examin
"(a) Review OF AGENCY ACTION BY THE Commission.-Any agency
tions, and to require the keeping and submission of any books, record
tions and audits required by section to conduct investig
action by the Commission made under the provisions of this chapter
shall be subject to review by the United States Court of Appeals for
46
47
the District of Columbia Circuit upon petition filed in such court with
30 days after the agency action by the Commission for which revies
with any qualified campaign expense of a candidate, or his au-
is sought.
thorized committees, who receives payments under section 9037.
"(b) REVIEW PROCEDURES.-The provisions of chapter 7 of title
'(2) Any person who violates the provisions of paragraph (1)
United States Code, apply to judicial review of any agency action,
shall be fined not more than $10,000, or imprisoned not more than
Commission. defined in section 551 (13) of title 5, United States Code, by th
5 years, or both.
(3) In addition to the penalty provided by paragraph (2),
"SEC. 9042. CRIMINAL PENALTIES.
any person who accepts any kickback or illegal payment in con-
"(a) Excess CAMPAIGN EXPENSES.-Any person who violates the
nection with any qualified campaign expense of a candidate or his
provisions of section 9035 shall be fined not more than $25,000, or
authorized committees shall pay to the Secretary for deposit in the
imprisoned not more than 5 years, or both. Any officer or member
matching payment account, an amount equal to 125 percent of
any political committee who knowingly consents to any expenditu
the kickback or payment received.".
in violation of the provisions of section 9035 shall be fined not moi
REVIEW OF REGULATIONS
than $25,000, or imprisoned not more than 5 years, or both.
"(b) UNLAWFUL USE OF PAYMENTS.-
SEC. 409. (a) Section 9009 of the Internal Revenue Code of 1954
(relating to reports to Congress; regulations) is amended by adding at
"(1) It is unlawful for any person who receives any paymen
the end thereof the following new subsection:
under section 9037, or to whom any portion of any such paymen
is transferred, knowingly and willfully to use, or authorize th
"(c) REVIEW OF REGULATIONS.-
than— use of, such payment or such portion for any purpose othe
"(1) The Commission, before prescribing any rule or regulation
under subsection (b), shall transmit a statement with respect to
"(A) to defray qualified campaign expenses, or
such rule or regulation to the Senate and to the House of Repre-
(B) to repay loans the proceeds of which were used, or
sentatives, in accordance with the provisions of this subsection.
Such statement shall set forth the proposed rule or regulation and
otherwise to restore funds (other than contributions to de-
fray qualified campaign expenses which were received and
shall contain a detailed explanation and justification of such rule
or regulation.
expended) expenses. which were' used, to defray qualified campaig
(2) If either such House does not, through appropriate action,
'(2) Any person who violates the provisions of paragraph (1)
disapprove the proposed rule or regulation set forth in such
shall be fined not more than $10,000, or imprisoned not more than
statement no later than 30 legislative days after receipt of such
5 years, or both.
statement, then the Commission may prescribe such rule or regula-
"(c) FALSE STATEMENTS, ETc.-
tion. The Commission may not prescribe any rule or regulation
which is disapproved by either such House under this paragraph.
'(1) It is unlawful for any person knowingly and willfully
"(3) For purposes of this subsection, the term 'legislative days'
"(A) to furnish any false, fictitious, or fraudulent eva
does not include any calendar day on which both Houses of the
dence, books, or information to the Commission under the
Congress are not in session.".
chapter, or to include in any evidence, books, or informatid
(b) Section 9009(b) of such Code (relating to regulations, etc.) is
so furnished any misrepresentation of a material fact, or
amended by inserting "in accordance with the provisions of subsection
falsify or conceal any evidence, books, or information releval
(c)" immediately after "regulations".
to a certification by the Commission or an examination and
audit by the Commission under this chapter, or
EFFECTIVE DATES
"(B) to fait to furnish to the Commission any record
SEC. 410. (a) Except as provided by subsection (b) and subsection
chapter. books, or information requested by it for purposes of th
(c), the foregoing provisions of this Act shall become effective Jan-
uary 1, 1975.
"(2) Any person who violates the provisions of paragraph (1)
(b) Section 104 and the amendment made by section 301 shall be-
shall be fined not more than $10,000, or imprisoned not more than
come effective on the date of the enactment of this Act.
5 years, or both.
(c) (1) The amendments made by sections 403 (a), 404, 405, 406,
"(d) KICKBACKS AND ILLEGAL PAYMENTS.-
408, and 409 shall apply with respect to taxable years beginning after
"(1) It is untawful for any person knowingly and willfully
December 31, 1974.
give or accept any kickback or any illegal payment in connecti
(2) The amendment made by section 407 shall apply with respect
to taxable years beginning after December 31, 1971.
48
And the House agree to the same.
That the Senate recede from its disagreement to the amendment of
the House to the title of the Senate bill.
Howard W. CANNON,
CLAIBORNE PELL,
JOINT EXPLANATORY STATEMENT OF THE
JOHN K. PASTORE,
COMMITTEE OF CONFERENCE
RUSSELL LONG,
EDWARD KENNEDY,
The managers on the part of the House and the Senate at the con-
Dick CLARK,
ference on the disagreeing votes of the two Houses on the amendments
HUGH SCOTT,
of the House to the bill (S. 3044) to amend the Federal Election
WALLACE BENNETT,
Campaign Act of 1971 to provide for public financing of primary and
ROBERT GRIFFIN,
general election campaigns for Federal elective office, and to amend
TED STEVENS,
certain other provisions of law relating to the financing and conduct
CHARLES McC. Mathias,
of such campaigns, submit the following joint statement to the House
angers on the part of the Senate
and the Senate in explanation of the effect of the action agreed upon
by the managers and recommended in the accompanying conference
WAYNE L. Hays,
report:
FRANK THOMPSON,
The House amendments struck out all of the Senate bill after the
JOHN H. DENT,
enacting clause and inserted a substitute text and provided a new
JOHN BRADEMAS,
title for the Senate bill, and the Senate disagreed to the House
ED JONES,
amendments.
ROBERT MOLLOHAN,
The committee of conference recommends that the Senate recede
DAWSON MATHIS,
from its disagreement to the amendment of the House to the text of
WILLIAM DICKINSON,
the bill, with an amendment which is a substitute for both the text
SAMUEL L. DEVINE,
of the Senate bill and the House amendment to the text of the Senate
JOHN WARE,
bill, and also recede from its disagreement to the House amendment
BILL FRENZEL,
to the title of the Senate bill.
Managers on the part of the House.
The differences between the text of the Senate bill, the House
amendment thereto, and the substitute agreed to in conference are
noted below, except for clerical corrections, conforming changes made
necessary by reason of agreements reached by the conferees, and
minor drafting and clarifying changes.
SHORT TITLE
The Senate bill, the House amendment, and the conference substi-
tute provide that this legislation may be cited as the "Federal Elec-
tion Campaign Act Amendments of 1974".
CRIMINAL CODE AMENDMENTS
LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES
A. CONTRIBUTIONS
Senate bill
Section 304 (a) of the Senate bill amended chapter 29 of title 18,
United States Code, by inserting a new section 615, relating to limita-
tions on contributions.
(49)
51
50
Section 615 (a) (1) provided that no individual may make contribu-
tributions to at least 5 candidates for Federal office in order to be
tions to a candidate with respect to his campaign for election which,
considered political committees for purposes of subsection (b) (2).
in the aggregate, exceed $3,000.
Subsection (b) (3) provided that no individual may make contri-
Section (a) (2) provided that no person (other than an indi-
butions exceeding $25,000 in any calendar year.
vidual) may make contributions to a candidate with respect to his
Subsection (b) (4) provided that, for purposes of subsection (b),
campaign for election which, in the aggregate, exceed $6,000.
the following rules shall apply: (1) if a contribution is made to a
Section 615 (b) (1) provided that a candidate may not accept con-
political committee authorized in writing by a candidate to accept
tributions from an individual which, in the aggregate, exceed $3,000,
contributions on his behalf, then such contribution shall be considered
or from any person (other than an individual) which, in the aggre-
to be a contribution to such candidate; and (2) any contribution to
gate, exceed $6,000.
the candidate of a political party for the office of Vice President shall
Section 615 (b) (3) provided that an officer or employee of a political
be considered to be a contribution to the candidate of such party for
committee or a political party may not accept any contribution which
the office of President.
Subsection (b) (5) provided that limitations imposed by subsec-
a candidate is prohibited from accepting by section 615 (b) (1).
Section 615 (d) (1) provided that no individual may make contribu-
tion (b) (1) and subsection (b) (2) shall apply separately to each
election.
tions during a calendar year which, in the aggregate, exceed $25,000.
Subsection (b) (6) provided that all contributions from a person
Section 615 (d) (2) provided that any contribution to a campaign
of a candidate in a year other than the calendar year in which the
to a particular candidate shall be treated as contributions from such
election to which such campaign relates is held shall be considered, for
person to such candidate, even if such contributions are made indi-
rectly, are earmarked, or are directed through any intermediary or
purposes of section 615 (d) (1), to be made during the calendar year
conduit. It should be noted that the provisions of subsection (b) (6)
in which such election is held.
were not intended to apply to contributions from separate segregated
Section 615 (c) (2) provided that contributions made to a candidate
funds maintained by corporations or labor organizations, because
of a political party for the office of Vice President shall be considered
donors to such funds must relinquish control of their donation to the
to be made to the candidate of such party for the office of President.
corporation or labor organization and such donors may not earmark or
Section 615 (c) (3) defined the term "campaign" to include all pri-
direct such donations to any specific candidate or political committee.
mary, primary runoff, and general election campaigns related to a
Subsection (b) (6) required any person acting as an intermediary
specific general election, and all primary, primary runoff, and special
or conduit to report to the supervisory officer the source of the con-
election campaigns related to a specific special election.
tribution and the intended recipient of the contribution. Such person
Section 615 (c) (1) provided that, for purposes of the contribution
also shall report such contribution to the intended recipient.
limitations established by section 615, all contributions made by a
It was the understanding of the Committee on House Administra-
person directly or indirectly to a candidate, including any earmarked
tion (hereinafter in this statement referred to as the "House com-
or otherwise encumbered contributions, shall be considered contribu-
mittee") that the following rule would apply with respect to the ap-
tions from such person to such candidate.
plication of the contribution limitations established by subsection (b) :
House amendment
if a person exercises any direct or indirect control over the making of
Section 101 (a) of the House amendment amended section 608 of
a contribution, then such contribution shall count toward the limita-
title 18, United States Code, by inserting a new subsection (b).
tion imposed with respect to such person under subsection (b), but
Subsection (b) (1) provided that, except as otherwise provided by
it will not count toward such a person's contribution limitation when
the new subsection (b), no person may make contributions exceeding
it is demonstrated that such person exercised no direct or indirect con-
$1,000 to any candidate for Federal office in any election.
trol over the making of the contribution involved.
Subsection (b) (2) provided that no political committee (other than
A similar question was raised in the House committee regarding
the principal campaign committee of a candidate) may make con-
the possibility of circumventing the limit on contributions by politi-
tributions exceeding $5,000 to any candidate for Federal office in any
cal committees where a national committee of a political organization
election.
may contribute the maximum allowable amount to a candidate and a
Subsection (b) (2) also defined the term "political committee" to
State or local sub-unit or subsidiary of that committee may also con-
mean, for purposes of subsection (b) (2), an organization registered
tribute to the same candidate. It was the intent of the House commit-
as a political committee under section 303 of the Federal Election
tee to allow the maximum contribution from each level of the orga-
Campaign Act of 1971 (hereinafter in this statement referred to
nization if the decision or judgment to make such contributions is
as the "Act") for at least 6 months which has received contributions
independently exercised within the separate levels of the organization.
from more than 50 persons and has made contributions to at least 5
However, if the subsidiary or sub-unit organizations are under the
candidates for Federal office. Subsection (b) (2) also provided that
control or direction of the parent organization with respect to their
State political party organizations shall not be required to make con-
contributions to specific candidates, then the organizations acting
52
53
in concert would constitute one political committee for the purpose
Section (2) provided that no candidate for nomination for
of the contribution limits included in the House amendment bill.
the office of President may make expenditures in any State in which
Conference substitute
he is a candidate in a primary election which exceed 2 times the
The conference substitute is the same as the House amendment, with
amount which a candidate for nomination for the office of Senator
the following changes:
may spend in such State. No candidate for nomination for the office of
1. With respect to the provision of the House amendment which pro-
President may make expenditures throughout the United States which
hibited any individual from making contributions in any calendar
exceed an amount equal to 10 cents multiplied by the voting age popu-
year exceeding $25,000, the conference substitute adopts the approach
lation of the United States.
of the Senate bill which provided that any contribution to a campaign
Section (b) provided that no candidate who receives payments
of a candidate in a year other than the calendar year in which the
under title V with respect to his general election campaign may make
election to which such campaign relates is held shall be considered to
expenditures with respect to such campaign in excess of the greater of
be made during the calendar year in which such election is held.
(1) 12 cents multiplied by the voting age population of the geo-
2. The conference substitute adopts the provision of the Senate bill
graphical area in which such election is held; (2) $175,000, if the
relating to the acceptance of illegal contributions by candidates and
Federal office sought is that of Senator or Representative from a State
by officers or employees of political committees. Existing law prohibits
with only one Representative; or (3) $90,000, if the Federal office
a candidate or political committee from accepting an illegal contribu-
sought is that of Representative from a State with more than one
tion or authorizing an illegal expenditure. The conference substitute
Representative.
combines the prohibitions contained in existing law with those con-
Section 504(c) provided that no candidate who is unopposed in a
tained in the Senate bill and provides that no candidate or political
general election may make expenditures with respect to his campaign
committee may knowingly accept any contribution, or knowingly make
which exceed 10 percent of the limitation in section 504 (b).
any expenditure, in violation of the limits imposed by this legislation.
Section 504(d) provided that the Federal Election Commission
The conference substitute also provides that no officer or employee of
(hereinafter in this statement referred to as the "Commission") shall
a political committee may knowingly accept a contribution made for
prescribe rules under which expenditures by a candidate for nomina-
the benefit of a candidate, or knowingly make any expenditure on be-
tion for election to the office of President for use in 2 or more States
half of the candidate, in violation of the limits imposed by this legis-
shall be attributed to the expenditure limitation of such candidate in
lation.
each State.
The conferees agree with the analysis of the House report (as set
Section 504(e) (1) provided that expenditures made on behalf of a
forth in the statement relating to the House amendment) regarding
candidate shall be considered to be made by such candidate.
the rule for application of contribution limitations and regarding the
Section 504 (e) (2) provided that expenditures made by a candidate
possibility of circumventing such limitations.
of a political party for the office of Vice President shall be considered
to be made by the candidate of such party for the office of President.
B. EXPENDITURES
Section 504 (e) (3) provided that an expenditure is made on behalf
Senate bill
of a candidate if it is made by (1) an authorized committee or other
Section 304 (a) of the Senate bill amended chapter 29 of title 18,
agent of a candidate for the purposes of making expenditures; (2)
United States Code, by inserting a new section 614, relating to limita-
any person authorized or requested to make an expenditure by a candi-
tion on expenditures generally.
date, an authorized committee of a candidate, or an agent of a candi-
Section 614 (a) (1) provided that no candidate may make expendi-
date; or (3) a national or State committee of a political party with
tures in his campaign for nomination for election, or for election, to
respect to a primary or general election campaign of a candidate, if
Federal office, which exceed the limitation established by section 504
such expenditure exceeds the limitations of section 614 (b) of title 18,
of the Act if such candidate were receiving payments under title V
United States Code, relating to limitation on expenditures generally.
of the Act.
If any such expenditure does not exceed such limitations, it shall not
Section 504 of the Act was added by section 101 of the Senate bill
be considered to be an expenditure made on behalf of such candidate.
Section 504(a) (1) provided that no candidate (other than a candidate
Section 614 (a) (2) was identical to section (e) (1) of the Act.
for the office of President) who receives payments under title V with
Section 614(a) (3) was identical to section 504(e) (2) of the Act. Sec-
respect to his primary election campaign may make expenditures with
tion 614 (a) (4) provided that an expenditure is made on behalf of a
respect to such campaign in excess of the greater of (1) 8 cents multi-
candidate if it is made by (1) an authorized committee or other agent
plied by the voting age population of the geographical area in which
of a candidate for the purpose of making expenditures; or (2) any
the election for such nomination is held; (2) $125,000, if the Fed
person authorized or requested to make an expenditure by a candidate,
eral office sought is that of Senator or Representative from a State
an authorized committee of a candidate, or an agent of a candidate.
with only one Representative; or (3) $90,000, if the Federal office
Section (5) was identical to section 504 (d) of the Act.
sought is that of Representative from a State with more than one
Representative.
54
55
Section 614 (1) provided that a national committee or State
tures exceeding $20,000.000 : (3) a candidate for the office of Senator
committee of a political party may make expenditures with respect to
may not make expenditures which exceed the greater of (A) 5 cents
general election campaigns of candidates for Federal office.
multiplied by the population of the State involved; or (B) $75,000;
Section 614(b) (2) provided that a national committee of a political
(4) a candidate for the office of Representative, Delegate from the
party may not make expenditures for the candidate of such party for
District of Columbia, or Resident Commissioner, may not make ex-
the office of President which exceed an amount equal to 2 cents multi-
penditures exceeding $60,000; and (5) a candidate for the office of
plied by the voting age population of the United States.
Delegate from Guam or the Virgin Islands may not make expendi-
Section 614 (b) (3). provided that a national committee or a State
tures exceeding $15,000.
committee of a political party may not make expenditures for a candi-
Subsection (c) also provided that, for purposes of such subsection,
date in a general election for Federal office which exceed (1) if the
the following rules shall apply: (1) any expenditure made by the
office involved is that of Senator or Representative in a State with only
candidate of a political party for the office of Vice President shall be
one Representative, the greater of (A) 2 cents multiplied by the voting
considered to be an expenditure made by the candidate of such party
age population of the State involved; or (B) $20,000; and (2) if the
for the office of President; (2) any expenditure made on behalf of a
office involved is that of Representative in a State with more than one
candidate by his principal campaign committee shall be deemed to
Representative, $10,000.
have been made by such candidate; and (3) the population of a geo-
Section 614 (b) (4) defined the term "voting age population" as the
graphical area shall be the population according to the most recent
voting age population certified for the year involved under section
decennial census.
504(g) of the Act. Section (b) (4) also provided that the approval
Subsection (c) also provided that the expenditure limitations ap-
by a national committee of a political party of an expenditure by
plied by subsection (c) to candidates for the office of Senator, Repre-
candidate of such party for the office of President, as required by
sentative, Delegate, and Resident Commissioner, shall apply sep-
section 316 of the Act, shall not be considered an expenditure by such
arately to each election. It also provided that, for purposes of the
national committee.
$10,000,000 expenditure limit on candidates for nomination to the
Section 504 (g) of the Act, as added by section 101 of the Senate
office of President, all Presidential primary elections are considered
bill, provided that, beginning in January 1975 and annually there
one election.
after, the Secretary of Commerce shall certify to the Commission an
estimate of the voting age population of the United States, of each
Conference substitute
State, and of each congressional district. The term "voting age pop
The conference substitute is the same as the House amendment, with
ulation" was defined to mean resident population, 18 years of age or
the following changes:
older.
1. The conference substitute increases the expenditure limitation
Section 504 (h) of the Act, as added by section 101 of the Senate
applicable to candidates for the office of Representative, Delegate from
bill, provided that the Commission shall, upon receiving certifica
the District of Columbia, and Resident Commissioner, from $60,000 to
tion from the Secretary of Commerce under section 504 (g) and from
$70,000.
the Secretary of Labor under section 504 (f) (2), publish in the Fed
2. The conference substitute adopts the provision of the Senate bill
eral Register the applicable expenditure limitations in effect for the
which provided that an expenditure is made on behalf of a candidate
calendar year for the United States, each State, and each congres
if it is made by (A) an authorized committee or other agent of a can-
sional district.
didate for the purpose of making expenditures; or (B) any person
Section (i) of the Act, as added by section 101 of the Senate billy
authorized or requested to make an expenditure by a candidate, an
provided that, in the case of a House candidate from a new district or
authorized committee of a candidate, or an agent of a candidate. This
from a district with new boundaries, the Commission shall determin
change conforms with the decision of the conferees to permit author-
the amount of payments to which such candidate is entitled and shall
ized committees, as well as the principal campaign committee, to make
determine whether such candidate is a major party or a minor party
expenditures on behalf of a candidate.
candidate, based upon the number of votes cast in the preceding gen
3. The conference substitute adopts the annroach taken by the Sen-
eral election for the office involved by voters residing within the area
ate bill with respect to expenditures applicable to candidates for the
encompassed in the new or altered congressional district.
office of Senator or Representative from a State with only one Repre-
sentative. In a primary election, such candidates may make expendi-
House amendment
tures which do not exceed the greater of (A) 8 cents multiplied by the
Section 101 (a) of the House amendment amended section 608 of
voting age population of the State in which the election is held; or
title 18, United States Code, by inserting a new subsection (c).
(B) $100,000 (the conference substitute reduces the floor of $125,000
The new subsection (c) established the following expenditure limi
which was contained in the Senate bill).
tations: (1) a candidate for nomination for election to the office of
In a general election, such candidates may make expenditures which
President may not make expenditures exceeding $10,000,000; (2)
do not exceed the greater of (A) 12 cents multiplied by the voting age
candidate for election to the office of President may not make expend
population of the State in which the election is held; or (B) $150,000
56
57
(the conference substitute reduces the floor of $175,000 which was con
advocating the election or defeat of a clearly identified candidate dur-
tained in the Senate bill).
ing a calendar year which exceed $1,000.
4. The conference substitute adopts the provision of the Senate bill
Section 614 also contained definitions of terms used in such sub-
which provided that no candidate for nomination for the office of
section. The term "clearly identified" was defined to mean (1) the
President may make expenditures in any State in which he is a candi
candidate's name appears; (2) a photograph or drawing of the candi-
date in a primary election which exceed 2 times the amount which
date appears; or (3) the identity of the candidate is apparent by un-
candidate for the office of Senator may make in such State.
ambiguous reference. The term "person" did not include a national
5. The conferencé substitute adopts the provision of the Senate bil
committee or State committee of a political party. The term "expend-
which provided that the Commission shall prescribe rules under which
iture" did not include any payment made by a corporation or labor
expenditures by a candidate for nomination for election to the offic
United States Code, would not constitute an expenditure by such cor-
organization which, under the last paragraph of section 610 of title 18,
of President for use in 2 or more States shall be attributed to the
expenditure limitation of such candidate in each State.
6. The conference substitute adopts the provision of the Senate bill
poration or labor organization.
which provided that national committees and State committees of рф
House amendment
litical parties may make expenditures with respect to general electio
Section 608 (e) of title 18, United States Code, as added by section
campaigns of candidates for Federal office. The expenditure limita
(a) of the House amendment, was the same as section 614(c), as
tions made applicable to such committees by the Senate bill are adopte
added by section 304 (a) of the Senate bill, except that the provision
by the conference substitute.
added by the House amendment did not define the terms "person" and
"expenditure".
C. COST-OF-LIVING ADJUSTMENTS
Conference substitute
Senate bill
The conference substitute is the same as the Senate bill, except that
Section 504(f) of the Act, as added by section 101 of the Senate bill
the definition of person is omitted.
provided that at the beginning of each calendar year (commencing il
1975) the Secretary of Labor shall certify to the Commission the per
E. EXPENDITURES FROM PERSONAL FUNDS
centage difference between the price index for the most recent calenda
Senate bill
year and the price index for the base period. The expenditure limits
Section 302 (a) (1) of the Senate bill amended section (1) of
tions established by section (a) and section 504 shall be
title 18, United States Code, relating to limitations on contributions
changed by such percentage difference.
and expenditures, to provide that no candidate may make expendi-
Section 504(f) defined the term "price index" as the average over
tures from his personal funds or the personal funds of his immediate
calendar year of the Consumer Price Index (all items-United State
family with respect to his campaigns for nomination for election, and
city average), and the term "base period" as calendar year 1973.
for election, to Federal office which exceed during any calendar year
House amendment
(1) $50,000 in the case of a candidate for the office of President or
Vice President; (2) $35,000 in the case of a candidate for the office of
Section 608 (d) of title 18, United States Code, as added by section
Senator; or (3) $25,000 in the case of a candidate for the office of
(a) of the House amendment, was the same as section of
Representative, Delegate, or Resident Commissioner.
the Act, as added by the Senate bill, with the following difference
Section (a) (2) of the Senate bill amended section 608 of
(1) certification was required to be made to the Comptroller Genera
title 18, United States Code, by adding at the end thereof a new para-
and not to the Commission; and (2) the percentage difference woul
graph (3) and paragraph (4). Paragraph (3) provided that no can-
be taken into account only if it required an increase in expenditu
didate or his immediate family may make loans or advances from their
limitations established by section 608(c) of title 18, United State
personal funds with respect to his campaigns for Federal office unless
Code.
such loan or advance is evidenced by a written instrument disclosing
Conference substitute
the terms and conditions of such loan or advance. Paragraph (4) pro-
The conference substitute is the same as the House amendment, ex1
vided that any such loan or advance shall be included in computing
cept that certification is required to be made to the Commission.
expenditures under section 608 (a) only to the extent of the balance
of such loan or advance outstanding and unpaid.
D. OTHER EXPENDITURE LIMITATIONS
House amendment
Senate bill
Section 101 (b) of the House amendment amended section 608 (a)
Section of title 18, United States Code, as added by section
(1) of title 18, United States Code, to provide that no candidate may
of the Senate bill, provided that no person may make expend
make expenditures from his personal funds or the personal funds
tures (other than an expenditure permitted under section 614(a) (4)
58
59
of his immediate family with respect to his campaign for nominatio
terms "election", "Federal office", and "political committee" by refer-
for election, or for election, to Federal office, which exceed $25,000.
ence to the definitions of such terms contained in section 591 of title
Conference substitute
18, United States Code.
The conference substitute is the same as the Senate bill, except tha
Conference substitute
the conference substitute permits candidates for the office of Repr
The conference substitute is the same as the House amendment.
sentative from States with only one Representative to make expend
itures of up to $35,000 from their personal funds or the funds of thei
G. CONTRIBUTIONS BY FOREIGN NATIONALS
immediate families. Under the conference substitute the limitation on
the expenditure of personal funds and immediate family funds by
,Senate bill
candidate applies to the entire campaign period during any calends
Section 615(b) (2) of title 18, United States Code, as added by sec-
year, beginning with the primary election campaign running throug
tion (a) of the Senate bill, provided that no candidate may know-
any primary runoff campaign and the general election campaign.
ingly solicit or accept a contribution (1) from a foreign national; or
determining the amount of such funds used in connection with the
(2) which is made in violation of section 613 of title 18, United States
candidate's efforts to obtain election to Federal office during any cai
Code, relating to contributions by agents of foreign principals. The
endar year all funds spent in calendar years other than the calends
term "foreign national" was defined to mean a foreign principal, as
year in which such campaigns are conducted are taken into account.
such term is defined by the Foreign Agents Registration Act of 1938,
It is the intent of the conferees that members of the immediate fam
or an individual who is not a citizen of the United States and who is
ily of any candidate shall be subject to the contribution limitation
not lawfully admitted for permanent residence, as defined by the Im-
established by this legislation. If a candidate for the office of Senato
migration and Nationality Act.
for example, already is in a position to exercise control over funds
a member of his immediate family before he becomes a candidate, the
House amendment
he could draw upon these funds up to the limit of $35,000. If, how
Section 101 (d) of the House amendment amended section 613 of
ever, the candidate did not have access to or control over such fund
title 18, United States Code, relating to contributions by certain for-
at the time he became a candidate, the immediate family member woul
eign agents, in order to make such section apply directly to foreign
not be permitted to grant access or control to the candidate in amoun
nationals instead of applying to agents of foreign principals. The
up to $35,000, if the immediate family member intends that suc
term "foreign national" was defined in the same manner as in the
amounts are to be used in the campaign of the candidate. The immed
Senate bill.
ate family member would be permitted merely to make contributio
Conference substitute
to the candidate in amounts not greater than $1,000 for each electic
involved.
The conference substitute is the same as the House amendment.
H. AMOUNT OF CRIMINAL FINES
F. DISCHARGE OF CERTAIN CAMPAIGN DEBTS
Senate bill
Senate bill
Section of the Senate bill provided that, notwithstandi
Section 302 (b) of the Senate bill amended section 608 of title 18,
United States Code, relating to limitations on contributions and ex-
the provisions of section 608 of title 18, United States Code, any in
vidual may satisfy out of his personal funds or the personal funds of
penditures out of candidates' personal and family funds, by increasing
his immediate family any debt or obligation outstanding on the dal
the fine for violation of such section from a maximum of $1,000 to
of the enactment of this legislation and incurred by him with respe
a maximum of $25,000, and by increasing the prison term from a maxi-
mum of one year to a maximum of 5 years.
to any campaign for election to Federal office ending before January
1973. The term "immediate family" was defined by reference to
The penalty for violation of section 614 of title 18, United States
definition of such term contained in section 608.
Code, as added by section 304(a) of the Senate bill, was a fine of
$25,000, or imprisonment for not more than 5 years, or both. If a can-
House amendment
didate was convicted of violating section 614 because of an expendi-
Section 101 (c) of the House amendment was the same as secti
ture made on his behalf by a political committee, then the treasurer of
302 (d) of the Senate bill, with the following differences: (1)
House amendment, instead of making an exception to the provisio
iture was punishable by a fine of not more than $25,000, or imprison-
such political committee or any other person authorizing such expend-
of section 608 of title 18, United States Code, generally, made the
ment for not more than 5 years, or both, if such person knew or had
ception apply specifically to the provisions of section 608 (a) (1)
reason to know that such expenditure was in violation of section 614.
title 18, United States Code, relating to limitations on expenditu
from personal funds; and (2) the House amendment defined
Code, as added by section 304(a) of the Senate bill, was a fine of not
The penalty for violation of section 615 of title 18, United States
more than $25,000, or imprisonment for not more than 5 years, or both.
60
61
House amendment
J. CONTRIBUTIONS OF CURRENCY
Section 101 (e) (1) of the House amendment amended section 608 of
Senate bill
title 18, United States Code, relating to limitations on contribution
Section 304 (a) of the Senate bill amended chapter 29 of title 18,
and expenditures, to increase the criminal fine which may be impose
United States Code, by inserting a new section 616, relating to form
under such section from $1,000 to $25,000.
of contributions. Section 616 prohibited contributions to any candi-
Section 101 (e) (2) amended section 610 of title 18, United State
date or political committee in excess of $100 in a calendar year unless
Code, relating to contributions or expenditures by national bank
such contributions are made by written instrument identifying the
corporations, or labor organizations, to (1) increase the criminal fin
person making such contribution. Violation of section 616 is punish-
which may be imposed under such section against corporations or labo
able by a fine of not more than $1,000, imprisonment for not more
organizations from $5,000 to $25,000; and (2) increase the crimina
than one year, or both.
fine which may be imposed under such section against officers or
directors committing willful violations from $10,000 to $50,000. It
House amendment
was the desire of the House committee that the increased penalties of
Section 101 (f) (1) of the House amendment amended chapter 29
section 610, together with the existing prison penalties of such section
of title 18, United States Code, by inserting a new section 615, relating
shall be enforced rigorously against officers and directors of corpor
to limitation on contributions of currency. Section 615 provided that
tions and labor organizations to the extent such officers and directo
no person may make contributions of currency of the United States or
are responsible for violations of such section.
currency of any foreign country exceeding $100 to any candidate for
Section 101 (e) (3) amended section 611 of title 18, United State
Federal office in any election. Violation of section 615 is punishable by
Code, relating to contributions by firms or individuals contractir
a fine of not more than $25,000, imprisonment for not more than one
with the United States, to increase the criminal fine which may be ini
year, or both.
posed under such section from $5,000 to $25,000.
Conference substitute
Section 101 (e) (4) amended section 613 of title 18, United State
The conference substitute is the same as the House amendment.
Code (as amended by section 101 (d)), relating to contributions b
foreign nationals, to increase the criminal fine which may be impose
K. CONVERSION OF CONTRIBUTIONS
under such section from $5,000 to $25,000.
Senate bill
Conference substitute
Section 304 (a) of the Senate bill amended chapter 29 of title 18,
The conference substitute is the same as the House amendment.
United States Code, by inserting a new section 617, which prohibited
the embezzlement or conversion of political contributions.
I. PROHIBITION OF CERTAIN CONTRIBUTIONS
House amendment
Senate bill
No provision.
Section 211 of the Senate bill amended section 310 of the Act, relat
ing to prohibition of contributions in the name of another, to provid
Conference substitute
that no person may knowingly permit his name to be used to effect an
The conference substitute omits the provisions of the Senate bill.
contribution which is prohibited by such section.
HONORARIUMS
House amendment
Senate bill
Section 101 (f) (1) of the House amendment amended chapter 29 of
No provision.
title 18, United States Code, by inserting a new section 614, relatin
to prohibition of contributions in the name of another. Section 61
House amendment
was the same as section 310 of the Act (which was repealed by section
Section 101 (f) (1) of the House amendment amended chapter 29
101 (f) (4) of the House amendment), except that the criminal find
of title 18, United States Code, by inserting a new section 616, relating
was increased from a maximum of $1,000 to a maximum of $25,000.
to acceptance of excessive honorariums. Section 616 provided that any
Conference substitute
elected or appointed officer or employee of any branch of the Federal
Government who accepts any single honorarium exceeding $1,000,
The conference substitute is the same as the House amendment, ex
or who accepts honorariums exceeding $10,000 in a calendar year,
cept that the conference substitute adopts that portion of the Sena
shall be fined not less than $1,000 nor more than $5,000.
bill which provided that no person may knowingly permit his name
to be used to effect any prohibited contribution.
62
63
Conference substitute
The conference substitute is the same as the House amendment,
Conference substitute
cept that the conference substitute prohibits honorariums exceedir
The conference substitute is the same as the Senate bill, except that
$15,000 in a calendar year, thus increasing by $5,000 the figure CO
the conference substitute reduces the fine from $50,000 to $25,000 and
tained in the House amendment.
reduces the prison term from 5 years to 1 year.
APPLICABILITY OF DEFINITIONS
VOTING FRAUD
Senate bill
Senate bill
Section 304 (b) of the Senate bill amended section 591 of title 18,
Section 304 of the Senate bill amended chapter 29 of title 1
United States Code, relating to definitions, to make such section ap-
United States Code, by inserting a new section 618, relating to votir
plicable to the new sections 614 through 620, which were added by
fraud. Section 618 prohibited any person in a Federal election fro
section of the Senate bill.
(1) casting a ballot in the name of another person; (2) casting a ball
if he is not qualified to vote; (3) forging or altering a ballot; (4) mi
House amendment
counting votes; (5) tampering with a voting machine; or (6) com
Section 101 (f) (2) of the House amendment amended section 591
mitting any other act (or failing to carry out a duty required by law)
of title 18, United States Code, relating to definitions, to clarify that
with the intent of causing an inaccurate counting of votes in any
the manner in which terms are defined in such section applies to the
election.
use of such terms in such section, and to make such section ap-
House amendment
plicable to the new sections 614, 615, and 616, which were added by
section 101 (f) (1) of the House amendment.
No provision.
Conference substitute
Conference substitute
The conference substitute is essentially the same as the House
The conference substitute omits the provisions of the Senate bill
amendment.
DISCLOSURE OF ELECTION RESULTS
CHANGES IN DEFINITIONS
Senate bill
A. ELECTION
Section 304 (a) of the Senate bill amended chapter 29 of title 18
United States Code, by inserting a new section 619, which made
Senate bill
unlawful to make public information with respect to votes cast
Section 301 (a) of the Senate bill amended section 591 (a) of title
the office of Presidential and Vice-Presidential elector before midnigl
18, United States Code, relating to the definition of election, to indi-
eastern standard time, of the day on which the election is held.
cate that such term does not include the election of delegates to a con-
stitutional convention for proposing amendments to the Constitution
House amendment
of the United States.
No provision.
House amendment
Conference substitute
No provision.
The conference substitute omits the provisions of the Senate bill
Conference substitute
FRAUDULENT MISREPRESENTATION OF CAMPAIGN AUTHORITY
The conference substitute is the same as the Senate bill.
Senate bill
B. POLITICAL COMMITTEE
Senate bill
Section 304(a) of the Senate bill amended chapter 29 of title 18
United States Code, by inserting a new section 620, which made
Section 301 (b) of the Senate bill amended section 591 (d) of title
unlawful for any candidate, or any agent or employee of a candida
18, United States Code, relating to the definition of political commit-
to fraudulently misrepresent himself as speaking or otherwise actin
tee, to read that such term means (1) any committee or other group
for or on behalf of any other candidate or political party on a matt
of persons which receives contributions or makes expenditures dur-
which is damaging to such other candidate or political party. Vio
ing a calendar year exceeding $1,000; (2) any national committee,
tion of the provisions was made punishable by a $50,000 fine or 5 yea
association, or organization of a political party, any State affiliate or
in prison, or both.
subsidiary of a national political party, and any State committee of
House amendment
a political party, whether or not any such entity receives contribu-
tions or makes expenditures during a calendar year exceeding $1,000;
No provision.
and (3) any committee, association, or organization administering a
64
65
separate segregated fund described in section 610 of title 18, Uni
tion, contributions: (1) the use of property by an individual who services owns or
to provide that the following activities shall not be considered to
States Code, relating to contributions or expenditures by natio
banks, corporations, or labor organizations.
be such property with respect to the rendering of voluntary
House amendment
leases such individual on his residential premises for candidate-related to
Section 102 (a) of the House amendment amended section 591
by activities, including the cost of invitations and food and beverages,
of title 18, United States Code, relating to the definition of politi
the the sale of food or beverage by a vendor to a candidate at a reduced bever-
extent that the cumulative value of such use does not exceed $500;
committee, to provide that such term shall be extended to include
(2) if such charge is at least equal to the cost of such food or
individual, committee, association, or organization which commits
act for the purpose of influencing the outcome of any election
charge to the vendor, to the extent that such accumulated charges do volun- not
Federal office, except that such acts shall not include certain commu
exceed age $500; (3) the travel expenses of an individual rendering
cations which are excluded from the definition of expenditure un
services to a candidate, to the extent that the cumulative total of
section 591 (f), as amended by the House amendment. Such
tary such expenses does not exceed $500; and (4) the payment by a State dis- or
munications include news stories and editorials distributed thros
the public media facilities (unless such facilities are owned or
tribution of any printed slate card or other printed listing of 3 or
local committee of a political party of the costs of preparation or
candidates for public office who are candidates in the State in
trolled by a political party or committee, or by a candidate), commu
more which such committee is located, but this exclusion does not apply to
cations by a membership organization to its members (unless
it
organized primarily for the purpose of influencing an election to Fe
payment of costs for the display of any such printed listing through
eral office), and any other communication which is not made for
public media facilities (other than newspapers) or on outdoor adver-
purpose of influencing an election to Federal office.
tising facilities such as billboards.
Conference substitute
Conference substitute
The conference substitute is the same as the House amendment, ex-
The conference substitute is the same as that portion of the Sen
bill which provided that the term "political committee" means
cept that the conference substitute adopts that portion of the Senate
bill which deleted from the term "contribution" any transaction in con-
committee or other group of persons which receives contribution
nection with the election of delegates to a constitutional convention
makes expenditures during a calendar year exceeding $1,000.
for proposing amendments to the Constitution of the United States.
The purpose of the provision exempting slatecards is intended to
C. CONTRIBUTION
allow State and local parties to educate the general public as to the
Senate bill
identity of the candidates of the party. It is the intention of the con-
Section 301 (c) of the Senate bill amended section 591 (e) of title
ferees that the slatecard exemption applies only to lists containing
United States Code, relating to the definition of contribution, in
the names of all candidates of a party within the State, displayed with
following ways: (1) to indicate that the term includes assessme
equal prominence.
fees, or membership dues, connected with subscriptions; (2) to P
D. EXPENDITURE
vide that such term does not apply to any transaction in connect
,Senate bill
with the election of delegates to a constitutional convention for
Section 301 (d) of the Senate bill amended section 591 (f) of title 18,
posing amendments to the Constitution of the United States; (3)
United States Code, relating to the definition of expenditure, to pro-
provide that such term applies to financing the operations of a poli
vide that such term means (1) a purchase, loan (other than a loan of
cal committee, and to the payment of any debt or obligation of a can
money by a national or State bank), or other described payment of
date or a political committee; (4) to eliminate the applicability
money or anything of value made for the purpose of (A) influencing
such term to contracts, promises, or agreements to make a contr
the nomination for election, or election, of any person to Federal of-
tion; and (5) to clarify that such term includes funds received by
fice; (B) influencing the result of a Presidential primary election; (C)
political committee which are transferred to such committee fro
financing a political committee; or (D) paying any debt or obligation
another political committee.
of a candidate or a political committee; and (2) the transfer of funds
House amendment
by a political committee to another political committee.
Section 102 (b) of the House amendment amended section 591
The amendment made by section 301 (d) of the Senate bill provided
(1) of title 18, United States Code, relating to the definition of CO
that the term "expenditure" does not include the value of services
tribution, to provide that a loan of money by a national or State
rendered by volunteer workers on behalf of a candidate.
shall be considered a loan by each endorser of such loan, in that pr
House amendment
portion of the unpaid balance of such loan which each endorser bea
Section 102 of the House amendment amended section 591 (f)
to the total number of endorsers.
of title 18, United States Code, relating to the definition of expendi-
Section 102(c) of the House amendment amended section 591
ture, to provide that the following activities shall not be considered
of title 18, United States Code, relating to the definition of contri
66
67
to be expenditures: (1) any news story, commentary, or editorial
House amendment
any broadcasting station, newspaper, or other periodical publicati
unless such facilities are owned or controlled by a political party,
No provision.
litical committee, or candidate; (2) nonpartisan get-out-the-vote
Conference substitute
tivity; (3) communications by a membership organization or cor
The conference substitute is the same as the Senate bill.
ration to its members or stockholders, if such membership organizati
or corporation is not organized primarily to influence the outcome
F. STATE COMMITTEE
elections for Federal office; (4) the use of property by an individu
,Senate bill
who owns or leases such property with respect to the rendering of vo
Section 301 (e) of the Senate bill amended section 591 of title
untary services by such individual on his residential premises for
didate-related activities, including the cost of invitations and food an
18, definition of State committee. Such term was defined to mean
United States Code, by inserting a new paragraph (j), relating the to
beverages, to the extent that the cumulative value of such use does
organization the which is responsible for the day-to-day operations of a
exceed $500; (5) the travel expenses of an individual rendering vol
political party at the State level, as determined by the Commission.
tary services to a candidate, to the extent that the cumulative tota
such expenses does not exceed $500; (6) communications which at
House amendment
not made to influence the outcome of elections for Federal office;
No provision.
the payment by a State or local committee of a political party of
Conference substitute
costs of preparation or distribution of any printed slate card or oth
The conference substitute is the same as the Senate bill.
printed listing of 3 or more candidates for public office who are can
dates in the State in which such committee is located, but this excl
G. NATIONAL COMMITTEE
sion does not apply to payment of costs for the display of any su
Senate bill
printed listing through public media facilities (other than new
Section 301 (e) of the Senate bill amended section 591 of title 18,
papers) or on outdoor advertising facilities such as billboards;
United States Code, by inserting a new paragraph (k), relating to the
the costs of a candidate (including his principal campaign committ
definition of national committee. Such term was defined to mean the
with respect to his solicitation of contributions, except that this exce
tion does not apply to costs which exceed 25 percent of the expendit
organization which is responsible for the day-to-day operations of a
limitation applicable to such candidate under section 608(c) of t
political party at the national level, as determined by the Commission.
18, as added by the House amendment; and (9) any costs incurred
House amendment
a multicandidate committee which has been registered under the
No provision.
as a political committee for at least 6 months, has received contril
tions from at least 50 persons, and (except for State political par
Conference substitute
organizations) has made contributions to at least 5 candidates, in ce
The conference substitute is the same as the Senate bill.
nection with soliciting contributions to itself or to a general politi
H. PRINCIPAL CAMPAIGN COMMITTEE
fund controlled by it, but this exclusion does not exempt costs of
liciting contributions through any public media facilities.
Senate bill
No provision.
Conference substitute
House amendment
The conference substitute is the same as the House amendment
cept that the 25 percent exemption for fundraising costs is reduc
Section 102 of the House amendment amended section 591 of
to 20 percent and that portion of the Senate bill is retained which
title 18, United States Code, by inserting a new paragraph (i), re-
leted the reference to transactions in connection with the election
lating to the definition of principal campaign committee. Such term
delegates to a constitutional convention for proposing amendment
was defined to mean the principal campaign committee designated
the Constitution of the United States.
by a candidate under section 302(f) (1) of the Act, as added by the
House amendment.
E. POLITICAL PARTY
Conference substitute
Senate bill
The conference substitute is the same as the House amendment.
Section 301 (e) of the Senate bill amended section 591 of title 18,
United States Code, by inserting a new paragraph (i), relating to th
POLITICAL FUNDS
definition of political party. Such term was defined to mean any as
Senate bill
ciation or other organization which nominates a candidate for electi
Section 303 of the Senate bill amended section 611 of title 18, United
to Federal office whose name appears on the election ballot as
States Code, relating to contributions by firms or individuals con-
candidate of such association or other organization.
tracting with the United States, to provide that such section shall
68
69
not prohibit the establishment or maintenance of a separate segs
ing in existing law, nor individual in the amendments member of contained any corporation in the House from
gated campaign fund by a corporation or a labor organization w
less such establishment or maintenance is prohibited under secti
amendment a political prohibit contribution an as an individual. Existing fund to law be also utilized per-
610 of title 18, relating to contributions or expenditures by nation
making to establish a separate segregated volun-
banks, corporations, or labor organizations.
mits corporations purposes so long as contributions discrimination to such fund or financial are re-
House amendment
for political and not secured by force or job obtained in any commercial
Section 103 of the House amendment was the same as section 30
tary prisals, or threat thereof, or by money
of the Senate bill, except that the amendment to section 611 of tit
transaction.
18, United States Code, relating to contributions by firms or indi
viduals contracting with the United States, made by the House amer
Conference substitute substitute is the same as the House amendment. (as
ment contained a definition of the term "labor organization". Su
The conference agree with the analysis of the House report regarding set
term was defined by reference to the definition of such term contain
political forth contributions by doctors and professional corporations.
The in conferees the statement relating to the House amendment)
in section 610 of title 18, United States Code.
A question was raised in the House committee during the conside
ation of the amendment to section 611 as to whether doctors receivi
EFFECT ON STATE Law
payments under the so-called Medicare and Medicaid programs
Senate bill
prohibited from making political contributions as government CO
No provision.
tractors. The House committee was of the opinion that nothing in the
existing section 611, nor in the amendment thereto included in the
House amendment
House amendments, would prohibit a doctor from making a politi
104 of the House amendment provided that chapter activi- 29 of
contribution solely because he was receiving payments for medic
title Section 18, United States Code, relating to elections law. and political
services rendered to patients under either the Medicare or Medica
ties, supersedes and preempts provisions of State
program. Under the Medicare program the basic contractual relati
ship is between the Federal Government and the individual receivi
Conference conference substitute substitute is the same as the House amendment.
the medical services. The individual receiving the medical servid
The The provisions of the conference substitute make it clear that relat- the
may be reimbursed directly by the Federal Government for amount
Federal law occupies the field with respect to criminal sanctions
paid for such services, or he may assign his claim against the Feder
case the doctor merely stands in the shoes of the claimant for paymel
similar funds offenses, but does not affect the States' rights to prohibit under
ing used in Federal races, the conduct of Federal campaigns, false
to limitations on campaign expenditures, the sources of campaign and
Government to the doctor who rendered the services, but in the latt
This relationship is not altered by the fact that a Federal agency ml
registration, voting fraud, theft of ballots, and similar offenses
retain a right to audit the accounts of a medical practitioner to prote
State law.
the Federal Government against fraudulent claims for medio
services.
AMENDMENTS TO FEDERAL ELECTION CAMPAIGN ACT
Under so-called Medicaid programs, it is true that doctors may
OF 1971
have specific contractual agreements to render medical services,
such agreements are with State agencies and not with the Fedel
PRINCIPAL CAMPAIGN COMMITTEES
Government. Medicaid programs are administered by State agenci
using Federal funds. The House committee did not believe that secti
A. DESIGNATION
611 prohibiting political contributions by government contractors has
Senate bill
any application to doctors rendering medical services pursuant to a
Section 207 (a) of the Senate bill amended title III of the Act by
contract with a State agency.
inserting a new section 310, relating to central campaign committees.
A separate question was raised in the House committee concerni
Section 310 provided that each candidate shall designate one poli-
the application of section 610 of title 18, relating to prohibitid
tical committee as his central campaign committee. A candidate for
against political contributions by corporations, banks, and labor org
nomination for election, or for election, to the office of President, also
nizations, as to whether a professional corporation composed of doc
may designate State campaign committees in States in which he is a
tors, lawyers, architects, engineers, etc., would be prohibited from
making political contributions. Whether or not a professional associ
candidate. Section 310 provided that no political committee may be desig-
tion is a corporation is a matter determined under State law. If, und
nated as the central campaign committee of more than one candidate,
State law, such an association is a corporation, it would be prohibit
except that a political committee described in section 301 (d) (2) of
from making a political contribution as a corporation. However, not
the Act, as added by the Senate bill, may be designated as the central
70
71
campaign committee of more than one candidate in a general electic
C. REPORTS
campaign. The central campaign committee and each State campaig
committee of a candidate of a political party for the office of Pres
Senate bill
dent shall be considered the central campaign committee and the Stat
campaign committee of the candidate of such party for the office of
that political committees, other than central campaign committees and
Section 310 (c) (1) of the Act, as added by the Senate bill, provided
Vice President.
priate central campaign committee and not with the Commission. considered Any to
State campaign committees, shall file required reports with the appro-
House amendment
Section 201 of the House amendment amended section 302 of the
report have been filed with the Commission at the time it was filed
filed with a central campaign committee shall be with the
Act by striking out subsection (f), relating to notices with respect
central campaign committee.
fund solicitation and annual reports by supervisory officers, and
has designated a State campaign committee for such State, to
political committee operating in a State on behalf of a candidate who file
Section (2) provided that the Commission may require a
inserting in lieu thereof a new subsection (f), relating to princip
campaign committees.
Subsection (f) (1) required that candidates for Federal office (oth
required reports with such State campaign committee and not with the
than candidates for the office of Vice President) designate a politic
central campaign committee of such candidate.
committee as their principal campaign committee. No political
Section (3) provided that the Commission may require any
mittee which, supports more than one candidate may be designated
political committee to file any report directly with the Commission.
a principal campaign committee. Subsection (f) (1) as provided that
Section 310 provided that each central campaign committee and
no political committee may be designated as the principal campai
State campaign committee shall consolidate reports filed with it by
committee of more than one candidate, except that the Presidenti
other political committees and furnish such reports, together with its
candidate of a political party may, after he is nominated, designa
own required reports, to the Commission.
the national committee of his political party as his principal campaig
committee.
House amendment
Section 302 (f) (3) of the Act, as added by the House amendment,
Conference substitute
provided that political committees receiving contributions on behalf
Although the conference substitute is the same as the House amen
of a candidate shall report such contributions to the principal cam-
ment with respect to principal campaign committees, the conferen
paign committee of such candidate, instead of to the supervisory
substitute retains the provision of the Act deleted by the House amen
ment relating to notices with respect to fund solicitation. This prov
officer. Subsection (f) (4) provided that the principal campaign committee
sion requires political committees to have a notice on material solici
shall compile and file reports which such committee receives from
ing contributions which states that copies of their reports filed und
other political committees supporting the candidate involved, together
the Act are available for purchase from the Commission.
with its own reports and statements, with the supervisory officer.
Conference substitute
B. EXPENDITURES ON BEHALF OF CANDIDATE
The conference substitute follows the House amendment generally.
Senate bill
Since the conference substitute permits expenditures to be made by
other authorized political committees, it provides that political com-
No provision.
mittees authorized to make expenditures with respect to a candidate
House amendment
must file reports relating to those expenditures with the principal
Section 302 (f) (2) of the Act, as added by the House amendme
campaign committee rather than with the Commission.
provided that, except in the case of expenditures which may be ma
under section 608 (e) of title 18, United States Code, relating to ex-
D. DEFINITION OF POLITICAL COMMITTEE
penditures of not more than $1,000 in a calendar year made with
Senate bill
respect to a clearly identified candidate, only the principal campai
No provision.
committee of a candidate may make expenditures on behalf of su
House amendment
candidate.
Section (f) (5) of the Act, as added by the House amendment,
Conference substitute
provided that, for purposes of subsection (f) (1) and subsection
The conference substitute, like the Senate bill, permits authoriz
(f) (3), the term "political committee" does not include political com-
political committees other than the principal campaign committed
mittees supporting more than one candidate, except for the national
make expenditures on behalf of a candidate.
committee of a political party designated by a Presidential candidate
as his principal campaign committee. Therefore, a candidate may not
72
73
designate a multicandidate political committee as his principal car
new subsection (a). The new section 303 (a) provided shall that file
paign committee and multicandidate political committees shall
erting a within 10 days after becoming a candidate, include (1)
tinue to report directly to the supervisory officer under applicable
candidate, registration statement, which shall authorized
visions of the Act.
the candidate and any person his he behalf; has (2) the
Conference substitute
Because of the conference substitute provisions permitting expent
of his depositories and the or withdrawal
or make expenditures on identification of
tures to be made for a candidate by political committees other than
dentification individual authorized to make any expenditure such additional relevant
principal campaign committee, the provision of the House amer
ach accounts at such depositories; and (3)
ment requiring multicandidate committees to report directly to
supervisory authority rather than to the principal campaign
information rom 303 as (b) the of Commission the Act (as may so require. redesignated by the Senate the bill) first
mittee is not included in the conference substitute.
Section amended by the Senate bill in the following ways: of (1)
relating to certain reporting requirements political added which com-
CAMPAIGN DEPOSITORIES
entence, was struck out; and (2) a new sentence was shall file with
Senate bill
mittees, that the treasurer of each political committee after such
Section 207 (a) of the Senate bill amended title III of the Act by
he provided Commission a statement of organization within 10 days
inserting a new section 311, relating to campaign depositories.
Section 311 provided that each candidate shall designate one or mot
political committee 303 (c) of is the organized. Act (as so redesignated by the Senate made bill)
national or State banks as his campaign depositories. Contributi
was the Senate bill that statements of organization shall (3)
Section amended by the Senate bill in the following ways: (1) it was be in
received by or on behalf of a candidate shall be deposited in one of hi
campaign depositories. Expenditures, other than petty cash expent
clear form by as the Commission shall prescribe; (2) paragraph shall in-
tures, made on behalf of a candidate shall be made by check from al
such amended to provide that the statement of organization
account at one of the campaign depositories of such candidate.
was information with respect to the geographical area or political and a
Section 311 also provided that the treasurer of each political CO
clude within which the political committee will operate, political
mittee (other than a political committee authorized by a candidate
jurisdiction description of the authority and activities of such that the
receive contributions or make expenditures on his behalf) shall des
general committee; and (3) paragraph (9) was amended to provide of
nate one or more national or State banks as the campaign depositoi
statement of organization shall include the name and address and cam- the
of such political committee. Contributions received by such polit
identification paign of each individual authorized to make
depositories used by the political committee involved, withdrawals or
committee shall be deposited in one of its campaign depositories.
penditures, other than petty cash expenditures, made by such politi
payments from accounts at such depositories.
committee shall be made by check from an account at one of its ca
ouse amendment
paign depositories.
Section 202 of the House amendment amended section 303 of the
Section 311 also provided that political committees may maint
Act, relating to registration of political committees and statements, that
petty cash funds from which expenditures not in excess of $100 m
be made in connection with a single purchase or transaction. Recof
by reports and notifications of political committees (other than principal
adding at the end thereof a new subsection (e) which provided
of petty cash disbursements shall be kept in accordance with require-
campaign committees and multicandidate political committees) re-
ments established by the Commission.
quired to be filed under section 303 shall be filed with the appropriate
Section 311 also provided that a candidate for nomination for elec-
principal campaign committee.
tion, or for election, to the office of President may establish one can
paign depository in each State. The campaign depository of a can
Conference substitute
date of a political party for the office of President shall be conside
The conference substitute is the same as the House amendment, ex-
the campaign depository of the candidate of such political party for
cept that multicandidate committees report to the appropriate prin-
the office of Vice President.
cipal campaign committee.
House amendment
REPORTS BY POLITICAL COMMITTEES AND CANDIDATES
No provision.
A. FILING DATES
Conference substitute
Senate bill
The conference substitute is the same as the Senate bill.
Section 204 of the Senate bill made the following changes in
section 304 of the Act, relating to reports by political committees and
REGISTRATION REQUIREMENTS
Senate bill
candidates: 1. The provisions of section 304 were clarified in order to indicate
Section 203 (a) of the Senate bill amended section 303 of the Act
that such provisions apply to campaigns for nomination for election.
(relating to registration of political committees; statements) by in
as well as to campaigns for election.
75
74
2. The amendment made by the Senate bill established the follo
that any contribution exceeding $1,000 but more which than is 48 received hours
reporting dates: (A) the tenth day of April, July, and Octobe
each year; (B) the tenth day before an election; (C) the tenth de
rovided fter the fifteenth election, day shall before be reported an election no later than 48 hours after
December in the year of an election; and (D) the last day of Janu
of each year. In years in which no election is held, candidates may
efore an provided campaign that treasurers committees of political or multican- com-
reports on the twentieth day of April, July, and August, instead of
the tenth day of each such month.
ittees shall file reports required by committee, section 304 instead of the of
3. The requirement that contributions of $5,000 or more recei
idate with committees the appropriate principal campaign
after the last report before an election must be reported withi
Act bith the supervisory officer.
hours after receipt, was eliminated by the amendment made by
Senate bill.
Conference substitute substitute follows the House amendment permitting generally, monthly
4. If the identity of an anonymous contributor becomes known,
identity shall be reported to the Commission.
out The includes conference that provision presidential of the candidates Senate bill and political commit-
5. The Commission may, upon request by a Presidential candida
upon its own motion, waive reporting dates (other than January
reporting tees supporting in the case candidates of in to more the final than report one State. for the The calendar maximum year
and require that Presidential candidates report not less freque
number of reports the in conference addition substitute from 11 to 12 committees in order to to
than monthly. If the Commission acts upon its own motion, then
is increased the Commission in to require such date candidates of the general and election even
Presidential candidate involved is entitled to judicial review of
permit due 10 days before the on a monthly basis.
decision.
if file such the report candidates and committees are reporting
House amendment
B. REPORTING OF LOANS
Section 203 (a) of the House amendment amended section 304
of the Act, relating to filing dates for reports of receipts and expet
Senate
tures by political committees and candidates, to provide for the
Section 204 relating to the reporting of loans, to provide be included in reports,
bill (b) (2) of the Senate bill amended section that informa- (5)
lowing new filing requirements:
1. In a calendar year in which an individual is a candidate for Fe
of the Act, respect to the guarantors of loans shall and endorsers.
eral office and an election is held for the particular Federal office whi
as tion well with as information with respect to lenders
such individual is seeking, reports of receipts and expenditures
House amendment
be filed 10 days before such election. Such reports shall be comp
as of the fifteenth day before such election. Reports filed by regist
No provision.
or certified mail must be postmarked by the twelfth day before
Conference substitute
election. In addition, such reports must be filed 30 days after the
The conference substitute is the same as the Senate bill.
of such election and be complete as of the twentieth day after
date of such election.
C. REPORTING OF DEBTS AND OBLIGATIONS
2. In other calendar years, reports of receipts and expenditures mu
Senate bill
be filed after the close of the calendar year and no later than Jaj
ary 31 of the following calendar year, and must be complete as of the
the Act, filed with the Commission must include a debt
Section relating to the reporting of debts and obligations, statement to with
204 of the Senate bill amended section (b) provide (12) of
close of the calendar year for which filed.
3. In addition to reports required to be filed in an election year 0
that respect reports to the circumstances and conditions under which any or
in any other calendar year, reports of receipts and expenditures m
obligation is extinguished.
be filed for any calendar quarter in which the candidate or commi
House amendment
reporting received contributions exceeding $1,000 or made exper
tures exceeding $1,000. In any case in which such a quarterly rep
No provision.
would coincide with the annual report which is required for none
Conference substitute
tion years, the amendment made by section 203 (a) provided that the
quarterly report be filed in accordance with provisions governing the
ferees The conference that this reporting requirement will eliminate the proceeds prac-
substitute is the same as the Senate bill. the The con-
filing of annual reports.
tice of expect reporting the expenditure of the expenditure of funds are
The amendment made by section 203 (a) also provided that when the
of a loan as an "expenditure" two times-once when the
last day for filing a quarterly report occurs within 10 days
a
spent and again when the loan is paid off.
election. then the quarterly report requirement shall be waives
superseded by the required election report. Such amendment ald
76
77
D. REPORTING OF EARMARKED CONTRIBUTIONS
G. EXEMPTED TRANSACTIONS
Senate bill
Senate bill
filed to 304 (b) of the Act. Such paragraph provided that
Section section 204 (d) of the Senate bill added a new paragraph (1:
Section (f) of the Senate bill amended section 304 of the Act
Commission may require with respect to earmarked contribution as
with the Commission shall contain such information rep
by inserting a new subsection (d). Such subsection provided that
Members of the Congress are not required to report as contributions or
other special funds.
expenditures certain services furnished before the first day of Janu-
ary of the year before the year during which the term of the Member
House amendment
expires. Such services are (1) those furnished by the Senate Record-
No added provision. See section (b) (6) of title 18, United States
ing Studio; (2) those furnished by the House Recording Studio; (3)
the as reporting by section of earmarked 101 (a) contributions. of the House amendment, which requi
those furnished by employees whose pay is disbursed by the Secretary
of the Senate or the Clerk of the House of Representatives; and (4)
Conference substitute
those paid for by the Republican or Democratic Senatorial Campaign
Committee, the Democratic National Congressional Committee, or the
National Republican Congressional Committee.
The conference substitute is the same as the House amendment
House amendment
E. CONTRIBUTION AND EXPENDITURE INFORMATION
No provision.
Senate bill
Conference substitute
No provision.
The conference substitute is the same as the Senate bill, except that
there the Senate bill provided that certain photographic, matting, and
House amendment
recording studio services, if reportable under the Act, were only re-
Section 203 (b) of the House amendment amended section
portable to the extent utilized in the calendar year before the expira-
each that, addition to reporting total receipts and total expenditu pro
of the in Act, relating to information required to be reported, to 304
tion of a Member's term, the conference substitute provides only for
the reporting during that year of recording studio services to the
report must show total receipts less transfers between politi
extent that they are reportable under the Act.
other committees which support the same candidate and do not
distorted cases the total receipts and expenditures reported have
candidate and total expenditures less such transfers. support In
CAMPAIGN ADVERTISEMENTS
Senate bill
amendment committees are counted as contributions and expenditures.
picture because, under the Act, transfers of funds presente
Sections 204 (f) and 205 of the Senate bill amended title III of the
Act by striking out section 305, relating to reports by other than po-
also show committees supporting the same candidate the if
candidate provided that where such transfers occur between singl
litical committees, and by inserting the provisions of section 305 as a
new section 304(e). Section 205 of the Senate bill amended title III
such transfers. total receipts less such transfers and total expenditure report
of the Act by inserting a new section 305, relating to requirements re-
lating to campaign advertising.
Conference substitute
Section 305 (a) of the Act required that persons seeking to publish
The conference substitute is the same as the House amendmen
political advertisements must furnish to the publisher their identifi-
cation and the identification of any person authorizing the political
advertisement.
Senate bill
F. CUMULATIVE REPORTS
Section 305 (b) required that each published political advertise-
ment contain a statement of the identification of any person authoriz-
Section 204 (e) of the Senate bill amended section 304
ing such political advertisement.
Act (1) to eliminate the option of reporting only the amounts (c) of the
Section 305 (c) required that publishers maintain records with re-
other than may require cumulative reports with respect to that periods the
Commission of items since the last report; and (2) to provide the
amounts previous reporting period when there has been no change in of the
spect to the publication of political advertisements. Section 304 (d)
provided that persons selling newspaper or magazine space to candi-
dates may not charge rates which exceed rates for comparable space
the calendar year.
used for other purposes.
House amendment
Section 305 (e) required political committees to print on all litera-
No provision.
ture and advertisements soliciting contributions a notice with respect
Conference substitute
to reports of such political committees filed with the Commission.
The conference substitute omits the provissions of the Senate bil
"published". Section 305 (f) defined the terms "political advertisement" and
78
79
House amendment
No provision.
shall be a duty of the Commission to compile and maintain a cumula-
Conference substitute
tive index of statements and reports filed with the Commission.
sion ing a rate existing for law prohibiting newspapers or magazines from the provi
The of conference substitute, like the Senate bill, continues
House amendment
The amendment made by section 205 (a) (1) of the House amend-
charged for political advertising which is higher than charg
ment, which amended section 308 (a) (6) of the Act, was essentially
other purposes. any comparable use of the newspaper or magazine the rat for
the same as the amendment made by section 208 of the Senate bill, with
the following differences: (1) the amendment made by the Senate bill
required the index to be published monthly, whereas the amendment
WAIVER OF REPORTING REQUIREMENTS
made by the House amendment provided for publication at regular
Senate bill
intervals; and (2) the amendment made by the Senate bill contained
the relating Commission waiver of certain reporting requirements, (c) the Act that
Section to 206 of the Senate bill amended section 306 of
detailed requirements for identification of reports by the name of the
candidate or committee, the dates of the reports, and the number of
through complying with the filing requirements of from pc
sonally may relieve any category of candidates to provide
pages in the reports; these requirements were not specifically con-
tained in the amendment made by the House amendment.
lieve section 304 (e) of the Act, and that the Commission section 304
Conference substitute
seeking State office political committees primarily complying
provisions any category if such of political committees from with may such
The conference substitute is the same as the House amendment.
not and do not operate in more than support one State perse or
B. SPECIAL REPORTS
operate on a statewide basis.
Senate bill
House amendment
No provision.
No provision.
House amendment
Conference substitute
Section 205(a) (1) of the House amendment amended section 308
The conference substitute is the same as the Senate bill.
(a) of the Act, relating to duties of the supervisory officer, by inserting
a new paragraph (7), which required the preparation of special re-
DETERMINATION OF DATE OF FILING
ports listing candidates for whom reports were filed as required by
Senate bill
title III of the Act and candidates for whom such reports were not
filed as so required.
No provision.
Conference substitute
House amendment
The conference substitute is the same as the House amendment.
ments, Act, by to formal requirements respecting section 306 of the
Section relating 204 of the House amendraent amended
C. ELIMINATION OF CERTAIN DUTIES
vided that adding at the end thereof a new subsection reports and state
of or a committee relating to contributions or expenditures by candida
committee if a report or statement required to be filed (e) a which pr
Senate bill
No provision.
United States is delivered by registered certified or registrati
House amendment
report shall be deemed postmark to be stamped the date on of filing. the or envelope containing mail, then such the
Section 205 (a) (1) of the House amendment amended section 308
Conference substitute
(a) of the Act in order to eliminate the following duties of the super-
visory officer: (1) the duty to compile and maintain a current list of
The conference substitute is the same as the House amendment.
statements relating to each candidate; (2) the duty to prepare and
publish an annual report regarding contributions to and expenditures
DUTIES OF SUPERVISORY Officer
by candidates and political committees; (3) the duty to prepare spe-
cial reports comparing totals and categories of contributions and ex-
Senate bill
A. CUMULATIVE INDEX
penditures; (4) the duty to prepare such other reports as the super-
visory officer may deem appropriate; and (5) the duty to assure wide
Act, to duties of the supervisory officer, to 308 provide (a) (6) that of the it
Section relating 208 of the Senate bill amended section
Act. dissemination of statistics, summaries, and reports prepared under the
Conference substitute
The conference substitute is the same as the House amendment.
80
81
D. ANNUAL REPORT FOR 1973
include any calendar day on which both Houses of the Congress are
Senate bill
not in session.
No provision.
It should be noted that it was the intent of the members of the House in
House amendment
committee that the Senate and the House of Representatives, the re-
Act and under sections 9009 (c) and 9039 of the Internal Revenue
viewing proposed rules and regulations under section 308 (b) of
Section 205 (a) (2) of the House amendment provided that the
nual report which the supervisory officer is required to file un
Code of 1954, as added by the House amendment, shall strive to
section 308 (a) (7) of the Act (which is eliminated by the amendr
achieve uniformity in such rules and regulations.
made by section 205 (a)) shall not be filed with respect to any cales
year beginning after December 31, 1972.
Conference substitute
The conference substitute is the same as the House amendment.
Conference substitute
The conference substitute is the same as the House amendmen
F. CUSTODIAL RECEIPT OF REPORTS
Senate bill
E. REVIEW OF REGULATIONS
Senate bill
No provision.
No provision.
House amendment
Section 205 (b) of the House amendment amended section 308 of
House amendment
the Act by inserting a new subsection (c). Such subsection provided
Section 205 (b) of the House amendment amended section 308 of t]
that the supervisory officer shall prescribe rules to carry out
the Act by adding a new subsection (b), which required the sur
title III of the Act, including rules to require that (1) reports re-
visory officer, before prescribing any rule or regulation under sec
quired to be filed by candidates for the office of Representative, Dele-
308, to transmit a statement regarding such rule or regulation ta t
gate, or Resident Commissioner, shall be filed with the Clerk of the
Senate or the House of Representatives, as the case may be. The no
House of Representatives as custodian for the Board of Supervisory
subsection (b) provided that such statement shall explain and justi
Officers (hereinafter in this statement referred to as the "Board")
the proposed rule or regulation.
(2) reports required to be filed by candidates for the office of Senator
Subsection (b) also provided that if the supervisory officer prop
shall be filed with the Secretary of the Senate as custodian for the
to prescribe any rule or regulation with respect to candidates for
Board; and (3) the Clerk of the House of Representatives and the
office of Representative, Delegate, or Resident Commissioner, he
Secretary of the Senate shall be required to (A) make such reports
transmit such statement to the House of Representatives. If the
available for public inspection; and (B) preserve such reports.
visory officer proposes to prescribe any rule or regulation with res
Subsection (c) also required the Clerk of the House of Represent-
to candidates for the office of Senator, he shall transmit such state
atives and the Secretary of the Senate to cooperate with the Board in
to the Senate. If the supervisory officer proposes to prescribe any
carrying out its duties under the Act.
or regulation with respect to candidates for the office of Preside
Conference substitute
shall transmit such statement to the Senate and to the Hous
The conference substitute is the same as the House amendment.
Representatives.
If either House which receives a statement from the superv
G. COOPERATION WITH STATE OFFICIALS
officer disapproves the proposed rule or regulation within 30 legisl
Senate bill
days after it is received, then the supervisory officer may not pres
such rule or regulation. In the case of a proposed rule or regula
No provision.
with respect to candidates for the office of President, if only on
House amendment
the two Houses disapproves the proposed rule or regulation, such
Section 205 (b) of the House amendment amended section 308 of
approval by one House is sufficient to prevent prescription of the ru
Act by striking out subsection (b), which required the supervisory
or regulation.
officer to develop procedures in cooperation with State election offi-
Subsection (b) also defined the term "legislative days". Wit
cials to permit filing of Federal reports to comply with State require-
spect to statements transmitted to the Senate, such term does no
ments.
clude any calendar day on which the Senate is not in session. Wit
Conference substitute
spect to statements transmitted to the House, such term does no
The conference substitute is the same as the House amendment.
clude any calendar day on which the House is not in session.
respect to statements transmitted to both Houses, such term does IN
82
83
Senate bill
H. NATIONAL CLEARINGHOUSE
which receives contributions or makes expenditures during a calendar
No provision.
year exceeding $1,000; (2) any national committee, association, or
House amendment
organization of a political party, any State affiliate or subsidiary of
a national political party, and any State committee of a political
Section (b) of the House amendment amended section 308 of
party, whether or not any such entity receives contributions or makes
troller the Act by striking out subsection (c), which required the Comp-
expenditures during a calendar year exceeding $1,000; and (3) any
regarding the administration of elections.
General to serve as a national clearinghouse for information
committee, association, or organization administering a separate seg-
regated fund described in section 610 of title 18, United States Code,
Conference substitute
relating to contributions or expenditures by national banks, corpora-
tions, or labor organizations.
tained the clearinghouse function, but it is vested in the Commission. re-
The conference substitute is the same as the Senate bill, which
House amendment
Section 206 (b) of the House amendment amended section 301 (d)
CHANGES IN DEFINITIONS
of the Act, relating to the definition of political committee, in the
same manner that section 102 (a) of the House amendment amended
A. APPLICABILITY TO TITLE IV
section 591 (d) of title 18, United States Code, relating to the defini-
Senate bill
tion of political committee. This amendment extended the definition
No provision.
of political committee to include any individual, committee, associa-
House amendment
tion, or organization which commits any act for the purpose of influ-
encing the outcome of any election for Federal office, except that
Act, relating to definitions, to provide that definitions contained in
Section 206 (a) of the House amendment amended section 301 of the
communications which are excluded from the definition of expenditure
under section 301 (f) (4), as added by the House amendment, are ex-
Act. such section applied to title IV of the Act as well as to title III of the
cluded. Such communications included news stories and editorials dis-
tributed through the public media facilities (unless such facilities are
Conference substitute
owned or controlled by a political party or committee, or by a candi-
The conference substitute is the same as the House amendment.
date), communications by a membership organization to its members
(unless it is organized primarily for the purpose of influencing an
election to Federal office), and any other communication which is not
Senate bill
B. ELECTION
made for the purpose of influencing an election to Federal office.
that the Act, relating to the definition of election, in the same
Section 202 (a) (1) of the Senate bill amended section 301 (a) of
Conference substitute
The conference substitute follows the provisions of the Senate bill
title section 301 (a) of the Senate bill amended section 591 manner (a) of
generally. A provision of the House amendment extended the duty
18, United States Code, relating to the definition of election. The
to register as a political committee to any person committing any
amendment made by section (a) (1) provided that such term does
act to influence the outcome of any election. This provision is recast
not include the election of delegates to a constitutional convention for
as a new section 308 of the Act, which will require any organization
proposing amendments to the Constitution of the United States.
which expends any funds or commits any act directed to the public
House amendment
for the purpose of influencing the outcome of an election, or which
No provision.
publishes or broadcasts to the public material intended to influence
public opinion with respect to candidates for Federal office to register
Conference substitute
with the Commission as a political committee and report the source
The conference substitute is the same as the Senate bill.
and amount of its funds and of its expenditures. Since these organiza-
tions use their resources for political purposes, often having a direct
Senate bill
C. POLITICAL COMMITTEE
and substantial effect on the outcome of Federal elections, it would be
inappropriate to permit these organizations to conceal the interests
Section 202 (a) (2) of the Senate bill amended section 301 (d) of the
they represent solely because the organizations are able to avoid re-
Act, relating to the definition of political committee, in the same
porting and disclosure under the technical definitions of political com-
title ner that section 301 (b) of the Senate bill amended section 591 man- of
mittee, contribution, and expenditure. The conference substitute does
18, United States Code, relating to the definition of political (d)
not apply to individuals acting on their own behalf or to news stories,
that committee. The amendment made by section 202 (a) (2) provided
commentaries, and editorials published in bona fide newspapers,
such term means (1) any committee or other group of persons
magazines, or other periodical publications.
85
84
Conference substitute
D. CONTRIBUTION
The conference substitute follows the provisions of the Senate bill
generally except that the provisions including membership fees and
Senate
bill 202 (a) (3) through section 202 (a) to (6) the definition of the Senate of contri- bill bill
payments to finance the operations of a political committee or pay the
debts of a committee or candidate are omitted and the provisions of
amended Section in section the same 301 (e) manner of the that Act, relating section 301 (c) of the Senate to the
the House amendment relating to exceptions from the definition of
contribution are included.
bution, amended definition section of contribution, 591 (e) of except title provided 18, that the that hat the term contribution
E. EXPENDITURE
202 (a) (4) include of the payments Senate bill made or obligations 610 of title incurred 18, United by a States
Senate bill
shall ration not labor organization which, contribution under by such corporation or labor
Section 202 (a) (7) of the Senate bill amended section 301 (f) of the
Act, relating to the definition of expenditure, in the same manner that
Code, would or not The constitute amendments a made by (e) section in the following ways: fership OF following ways: (1) following ways: (1)
section 301 (d) of the Senate bill amended section 591 (f) of title 18,
organization. section (a) (6) amended includes section assessments, following wambership following ways bership following membership
United States Code, relating to the definition of expenditure, with
the following differences: (1) the amendment made by section 202
to indicate connected that the with term subscriptions; in (2) connection to with the election of
(7) of the Senate bill did not exclude loans of money by a national or
State bank from the definition of expenditure; and (2) the amend-
dues, does not apply constitutional to any transaction convention States: for (3) proposing to provide amendments that such and
ment made by section 202 (a) (7) of the Senate bill did exclude
from the definition of expenditure payments made or obligations in-
tolegates tonstitution debt the the United or of a political committee, political to con-
curred by a corporation or labor organization which, under section
610 of title 18, United States Code, would not constitute an expendi-
to committee; the payment promises, (4) of to or any eliminate <<<<<<<<<<<<<<<<<<<<<<<<< the funds THE political commit- (5) to
ture by such corporation or labor organization. The amendment made
by section 202(a) (7) provided that such term means (1) a purchase,
loan, or other described payment of money or anything of value made
tracts, clarify tee which that are such transferred term includes to such committee from another
for the purpose of (A) influencing the nomination for election, or
election, of any person to Federal office; (B) influencing the result
committee.
of a Presidential primary election; (C) financing a political commit-
ouse amendment
301
(e)
(5)
tee; or (D) paying any debt or obligation of a candidate or a political
Section 206 relating (c) of to the an House exception amendment to the (b) definition amended of the House of section contribution, amendment in
committee; and (2) the transfer of funds by a political committee to
another political committee.
of the the same Act, section manner 591 that (e) (5) section of title 18, United States Under Code, this relating amend-
The amendment made by section (a) (7) of the Senate bill pro-
vided that the term "expenditure" does not include the value of
amended to exception to the definition of not contributions. considered contributions: property (1)
services rendered by volunteer workers on behalf of a candidate.
ment, an the of property following by activities an individual are voluntary who owns services or leases by such such individual including
House amendment
Section of the House amendment amended section (f)
the with use respect residential to the premises rendering for of candidate-related beverages, to activities, the extent that food the
of the Act, relating to the definition of expenditure, in the same man-
ner that section 102(c) of the House amendment amended section
on cumulative the his cost of invitations value of such and use food does candidate and not exceed at $500; a reduced (2) the charge sale of if to such the
591 (f) of title 18, United States Code, relating to the definition of
expenditure, except that the amendment made by this section did not
or charge beverages is at least by a vendor equal that to to the such a cost accumulated of such food charges rendering or beverage do not voluntary exceed
establish an exception for costs incurred by a candidate or political
committee with respect to the solicitation of contributions by the can-
vendor, $500; (3) to to the a the candidate, travel extent expenses to the extent of an (4) that individual the the payment cumulative by a State total of or local suc
didate or political committee. Under this amendment, the following
activities are not considered expenditures: (1) any news story, com-
services expenses committee does of not a political exceed slate $500; party card or and of other the costs printed of preparation listing State of 3 in or or which more distribu such can-
mentary, or editorial distributed through the facilities of any broad-
casting station, newspaper, or periodical publication (unless such
facilities are owned or controlled by a political party or committee, or
tion didates of any for is printed public located, office but who this are exclusion candidates does listing in not the through apply to public payment facilitie media of
by a candidate) (2) nonpartisan get-out-the-vote activity; (3) com-
munications by a membership organization to its members (unless it
committee costs facilities for the (other display than of newspapers) any such printed or on outdoor advertising
is organized primarily for the purpose of influencing an election to
Federal office) (4) the use of property by an individual who owns or
such as billboards.
86
87
leases such property with respect to the rendering of voluntary serv-
ices by such individual on his residential premises for candidate-
place in the of case residence; of an individual, and his name and the address of his
related activities, including the cost of invitations and food and bever-
ages, to the extent that the cumulative value of such use does not
and address of such person. (2) in the case of any other person, the principal name
exceed $500; (5) the travel expenses of an individual rendering volun-
302 Act, (c) of the to reports of contributions in excess section of 302 (b) of the
Section relating 202 (b) of the Senate bill amended
tary services to a candidate, to the extent that the cumulative total of
such expenses does not exceed $500; (6) communications which are
not made to influence the outcome of elections for Federal office; (7)
the payment by a State or local committee of a political party of the
provided under each such subsection.
"identification" Act, to relating clarify the to detailed nature of accounts, information by inserting $10, and the section term
which
must
be
costs of preparation or distribution of any printed slate card or other
printed listing of 3 or more candidates for public office who are candi-
and and Section 304 (b) 204 (10) (b) of (1) the of Act, the relating Senate to bill reports amended by section 304 (b) (9)
dates in the State in which such committee is located, but this exclusion
nature candidates, of information by inserting the term "identification" political to committees
does not apply to payment of costs for the display of any such printed
graph. Use of the new which must be provided under each clarify the
listing through public media facilities (other than newspapers) or on
be provided. respect to occupation and principal place of business that informa- must
tion with term eliminated the requirement such para-
outdoor advertising facilities such as billboards; (8) the costs of a
candidate (including his principal campaign committee) with respect
to his solicitation of contributions, except that this exception does not
House amendment
apply to costs which exceed 25 percent of the expenditure limitation
No provision.
applicable to such candidate under section 608 (c) of title 18, as added
Conference substitute
by the House amendment; and (9) any costs incurred by a multi-
candidate committee which has been registered under the Act as a
The conference substitute is the same as the Senate bill.
political committee for at least 6 months, has received contributions
from at least 50 persons, and (except for State political party orga-
Senate bill
G. NATIONAL COMMITTEE
nizations) has made contributions to at least 5 candidates, in connec-
tion with soliciting contributions to itself or to a general political fund
controlled by it, but this exclusion does not exempt costs of soliciting
ing Act, Section to relating the definition 202 to (a) definitions, (10) of the by Senate inserting bill a amended new section 301 of the
contributions through any public media facilities.
mean the organization of which national is committee. Such paragraph term was (k), defined relat- to
Conference substitute
The conference substitute follows the provisions of the Senate bill
Commission. tions of a political party at the responsible national level, for the as determined day-to-day by opera- the
generally except that it omits payments to finance a political commit-
tee or pay debts of a committee or candidate and includes the exemp-
House amendment
tions of the House amendment with a modification. Although the
No provision.
definition of expenditure contained in section 591 of title 18, United
Conference substitute
States Code, as amended by this legislation, contains an exception for
certain amounts spent solely in connection with fund raising activities,
The conference substitute is the same as the Senate bill.
that exception is not contained in the definition of expenditure which
relates to reporting and disclosure. Under the conference substitute a
Senate bill
H. POLITICAL PARTY
candidate or political committee must report all expenditures to the
Commission but, to the extent provided in section 591 (f) of title 18,
counted against expenditure limits contained in that title. Nothing in
to Act, the definition to definitions, of political by inserting a new paragraph section (1), 301 relating of the
Section relating 202 (a) (10) of the Senate bill amended
United States Code, those expenditures used in raising funds are not
this provision of the conference substitute is intended to require multip
candidate committees to allocate among candidates amounts spent for
election association to Federal or other office organization party. Such which term nominates was defined a to mean any
fund raising activities, or to relieve such committees of reporting the
expenditure of such amounts.
House amendment
the candidate of such association whose name or other appears organization. on the election candidate ballot for as
No provision.
F. IDENTIFICATION
Senate bill
Conference substitute
Section 202 (10) of the Senate bill a.mended section 301 of the
Act, relating to definitions, by inserting a new paragraph (j), relatin
The conference substitute is the same as the Senate bill.
to the definition of identification. Such term was defined to mean (1)
89
88
individuals recommended by the President pro tempore of the Senate,
I. SUPERVISORY OFFICER; PRINCIPAL CAMPAIGN COMMITTEE; BOARD
upon recommendation of the majority leader of the Senate and the
minority leader of the Senate; and (2) 2 shall be chosen from individ-
Senate bill
uals recommended by the Speaker of the House of Representatives,
No provision.
upon recommendation of the majority leader of the House and the
minority leader of the House. The individuals chosen upon recommen-
House amendment
the House amendment amended section provide 301 (g)
dation of the President pro tempore shall not be affiliated with the same
Section the Act, 206(e) relating of to the definition of supervisory Officers officer, established to
political party. The same rule shall apply with respect to individuals
of that the Board of Supervisory amendment.
chosen upon recommendation of the Speaker of the House. Of the 3
by section such term 308 (a) means (1) of the Act, amendment as added by amended the House section 301 of
remaining members to be appointed by the President, no more than
2 may be affiliated with the same political party. The Comptroller
Section (f) of definitions, the House by adding two new paragraphs. committee" The
General shall be a member of the Commission, in addition to the 7
the Act, relating (j) to defined the term "principal campaign a candidate
other members, but he shall serve without the right to vote.
new to mean paragraph the principal campaign committee designated the by House amend-
Members of the Commission, other than the Comptroller General,
under section 302 (f) (1) of the Act, as added by
shall serve for terms of 7 years, except that section 308 (a) (3) pro-
vided for staggering the terms of the initial members appointed to
ment. paragraph (k) defined the term "Board" to mean (1) the of
the Commission. Section 308(a) (4) provided that members shall be
Board The new of Supervisory Officers established by section 308 (a)
appointed on the basis of maturity, experience, and other similar
the Act, as added by the House amendment.
factors, and that members may be reappointed only once.
Section 308 (a) (5) provided that an individual appointed to fill
Conference substitute
a vacancy shall be appointed only for the unexpired term of the
The conference Act definition of Commission, which sub-
substitute adds to the definitions contained relates in to sec- the
member he succeeds. Vacancies shall be filled in the same manner in
which the office originally was filled.
tion 301 Election of the Commission a established under the conference as in the
Section 308 (a) (6) provided that the Commission shall elect a
Federal stitute, and the definition of principal campaign committee
chairman and vice chairman.
House amendment.
Section 308(b) provided that a vacancy shall not impair the exer-
CONTRIBUTION INFORMATION
cise of powers of the Commission, and that 4 members shall constitute
Senate bill
a quorum. Section 308(c) provided that the Commission shall have
Section detailed accounts, to provide that if a politi-
(b) (3) of the Senate bill amended section 302 person's (c) of
an official seal which shall be judicially noticed. Section 308 (e) pro-
vided that the principal office of the Commission shall be at or near
the Act, relating aggregate to more than $100, then the treasurer an of a account
the District of Columbia, but that the Commission may meet or
contributions receiving such contributions shall furnish
exercise its powers in any State.
cal of the committee occupation and principal place of business of such person.
Section 308(j) provided that section 7324 of title 5, United States
Code (relating to influencing elections; taking part in political cam-
House amendment
paigns; prohibitions; exceptions) shall apply to members of the
Commission.
No provision.
House amendment
Conference substitute
The conference substitute is the same as the Senate bill.
Section 207 (a) of the House amendment amended title III of the
Act by inserting a new section 308, relating to Board of Supervisory
FEDERAL ELECTION COMMISSION
Officers.
The new section 308(a) (1) established the Board of Supervisory
A. ESTABLISHMENT; COMPOSITION
Officers and provided that the Board shall be composed of (1) the
Clerk of the House of Representatives, who shall serve without the
Senate bill
of the Senate bill amended title III of the Commis- Act by
right to vote; (2) the Secretary of the Senate, who shall serve without
Section a new section 308, relating to Federal Election Federal Election
the right to vote; (3) 2 individuals appointed by the President of the
inserting sion. The new section (1) established the
Senate, upon recommendation of the majority leader of the Senate
and the minority leader of the Senate: and (4) 2 individuals ap-
Commission. 308(a) (2) provided that the Commission shall be advice composed and
pointed by the Speaker of the House of Representatives, upon recom-
Section 7 members appointed by the President by and with be the chosen from
mendation of the majority leader of the House and the minority
of consent of the Senate. Of the 7 members (1) 2 shall
leader of the House.
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90
gate to the Executive Director the making of rules with respect to
The appointed experience, integrity, impartiality, employees in
members were required to be chosen, and on the good basis judg- of
elections.
Section 308 (g) provided that the Chairman of the Commission
their maturity, from among individuals who are not officers of the Federal or Govern-
shall appoint and fix the compensation of personnel necessary to ful-
ment, legislative, judicial branch for terms
fill the duties of the Commission. Section (h) provided that the
the ment executive, (including elected and or appointed members officials). first They appointed serve by the
Commission may obtain the services of experts and consultants under
section 3109 of title 5, United States Code (relating to employment of
of 4 years, of except the Senate that one will of be the appointed for a term one of of the 1 year members and
experts and consultants; temporary or intermittent).
President for a term of 3 years, and be appointed for
Section 308 (i) provided that the Commission shall seek the assist-
one first will appointed be appointed by the Speaker of the House will a
ance of the General Accounting Office and the Department of Justice
in carrying out its responsibilities under the Act. Such subsection
term
of 2 years. provided that the Board shall supervise overall administra- policy
also provided that the Comptroller General and the Attorney General
tion Section of, seek 308 to also obtain compliance with, III and of the formulate Act, and sections 608,
may make available to the Commission, with or without reimburse-
ment, personnel, facilities, and other assistance.
concerning, 610, 611, 613, title 614, I 615, of the and Act, 616 title of title serving 18, United as chairman. States Decisions Code. Mem- of
Section 207 (b) (2) of the Senate bill amended section 5315 of title 5,
United States Code, to provide that the General Counsel and Execu-
bers the Board of the shall Board be shall made alternate by majority in vote and decisionmaking no member of the authority Board
tive Director of the Commission shall be compensated under level IV
of the Executive Schedule.
may duty. delegate Section to 308 any provided person his that vote the Board. or Board any shall meet once per month
House amendment
or and at the call of any member of the
Section 308 (f) of the Act, as added by section 207 (a) of the House
amendment, provided that the Board shall appoint a Staff Director
Conference
substitute substitute provides for the establishment compliance of a Fed-
(whose rate of pay shall be the rate for level IV of the Executive
eral The Election conference Commission to administer, to seek the Act to obtain and certain provi-
Schedule, currently $38,000) and a General Counsel (whose rate of
pay shall be the rate for level V of the Executive Schedule, currently
with, sions of and chapter formulate 29 of policy title 18, with United respect States campaigns. Code, The relating Commission to offenses is
$36,000). The Staff Director, with the approval of the Board, may
appoint and fix the pay of additional personnel. At least 30 percent
in composed connection of the with Secretary Federal of additional election the Senate compensation and the Clerk and of without the House, the
of such personnel shall be selected as follows: (1) one-half recom-
mended by the minority leader of the Senate; and (2) one-half
recommended by the minority leader of the House of Representatives.
both right pointed the the Congress. Speaker President. of to whom by vote, The the of and serve President All the appointed 6 6 House without are other so subject that pro of members. members tempore Representatives, one to member's confirmation serve Of of the the terms Senate, other term and by of expires members, 2 both 2 6 are are years Houses appointed appointed on officer each. 2 April are of may The ap- the by by 30
The Staff Director, with the approval of the Board, also may obtain
temporary and intermittent services as provided by section 3109 (b)
of title 5, United States Code.
Conference substitute
terms of each are year. staggered The 2 members appointed party. by each appointing
The conference substitute is the same as the House amendment
except that the privisons relating to minority staffing are omitted.
not be affiliated with the same chairman political and vice chairman from Members among of
its members chosen on the basis of personal who at the
The Commission for terms elects of 1 a year each on a rotating their basis. qualifica
C. BUDGET REQUESTS; LEGISLATIVE RECOMMENDATIONS
Senate bill
the Commission no member must be may be appointed to the Commission elected or appointe
Section 308 (k) of the Act, as added by section (a) of the Senate
tions and taking office as such a member is Government. an
bill, provided that whenever the Commission transmits any budget
time official of of any branch of the United States
request to the President or to the Office of Management and Budget, it
B. STAFF DIRECTOR; GENERAL COUNSEL; STAFF
also shall transmit a copy of such request to the Congress.
Section 308 (k) also provided that whenever the Commission trans-
mits to the President or to the Office of Management and Budget
,Senate
bill the Act, as added by section 207 General of the Counse Senate
any legislative recommendations or comments on legislation requested
bill, Section provided 308 (f) that of the Commission at shall the pleasure appoint a of the Commission
by the Congress or by any Member of the Congress, it also shall
transmit a copy of such recommendations or comments to the Con-
and an Executive Director rule to serve order, delegate duties and function not deles
gress or to the Member of the Congress making such request. No officer
The to the Commission Executive may, Director, by except or that the Commission may
or agency of the United States shall have authority to require the
93
92
pay the same witness fees and mileage expenses paid by courts of
Commission to submit legislative recommendations for approval before or comments the Commis- on
the United States.
Section 309 also provided that appropriate district courts of the
legislation sion transmits to such such officer recommendations or agency or comments to the Congress.
United States shall have the power to issue orders enforcing subpenas
issued by the Board.
House amendment
Conference substitute
No provision.
The conference substitute generally follows the provisions of the
Conference substitute
House amendment.
The conference substitute is the same as the Senate bill.
E. REPORTS
Senate bill
D. POWERS
Section 308 (d) of the Act, as added by section 207 (a) of the Senate
Senate
bill Act, added by section 207 (a) of require the Senate any
bill, provided that the Commission shall, at the close of each fiscal
year, report to the Congress and to the President with respect to (1)
bill, Section provided 309 (a) that in of the writing the Commission such as reports has the or answers power to subpena, as the (1) Commission signed by
actions it has taken; (2) the names, salaries, and duties of individuals
employed by the Commission; and (3) money disbursed by the Com-
person may the Chairman require; to submit (2) or administer Vice Chairman oaths; of (3) production the require Commission, by of documentary the attendance evi-
mission. Section 308 (d) also provided that the Commission may make
such further reports and recommendations as may appear desirable.
and dence; testimony (4) order of testimony witnesses to and be the taken same by witness deposition fees and in any mileage proceed- ex- de-
House amendment
Section 310 of the Act, as added by section 207 (a) of the House
ing or investigation; paid by courts of (5) the pay United criminal the States; action (6) in the initiate, name prosecute, of the Com-
amendment, provided that the Board shall transmit annual reports
to the President and each House of the Congress, which shall describe
penses fend, mission or in appeal order any to enforce civil or the Act of and title sections 18, United 602, States 608, 610, Code; 611, 612, (7)
the activities of the Board and recommend any legislative or other
action the Board considers appropriate.
613, 614, 615, of 616, its 617, functions and 618 or powers the (other Commission; than the power and (8) to issuę pre-
Conference substitute
delegate subpenas) any to any officer or employee of States
The conference substitute is the same as the House amendment.
scribe
Section issued by the Commission. person
rules. 309 (b) provided that district courts of Section the United 309 (c) pro-
F. INVESTIGATIONS AND HEARINGS
may vided enforce that no subpenas person Commission shall be or subject the United to civil States) liability for to disclosing any inf
Senate bill
Section 309 (d) of the Act, as added by section 207 (a) of the Senate
formation (other than at the the request of the Commission.
bill, provided that the Commission shall be the primary civil and
criminal enforcement agency for violation of the provisions of the Act
and sections 602, 608, 610, 611, 612, 613, 614, 615, 616, 617, and 618 of
House amendment, Section amendment 309 provided (a) of the that Act, the as added Board by administration shall section have 207 the (a) of power of title the I to House of (1) the
title 18, United States Code. Violations of any such provision shall be
prosecuted by the Attorney General or personnel of the Department of
formulate title III general of the policy Act, regarding and sections the 608, oversee 610, 611, the 613, development 614, 615, and of
Justice only after the Commission is consulted and consents to such
prosecution.
Section 309 (e) of the Act established procedures for the imposition
Act, 616 prescribed rules of with the of and the title Act, appropriate regulations forms 18, to assure United required prescribed that statutory Štates such under uniform; Code; rules under provisions title (2) and (4) title III regulations render and of I of the that the advisory Act; Act such are or (3) consistent rules title opinion review] of III and th
of civil penalties. The Commission shall have the power to assess a
civil penalty of not more than $10,000 against any person who violates
the Act or section 602, 608, 610, 611, 612, 613, 614, 615, 616, 617, or 618
of title 18, United States Code. Such penalty may be assessed only
regulations new are section sufficiently 313 of the Act, as added by section and hearings, 208
after the person involved is given an opportunity for a hearing and
the Commission has determined, through a decision which incorpo-
under House the amendment; (5) carry out with investigations Federal election law provision
rates findings of fact, that a violation did occur.
encourage and to report voluntary apparent compliance violations oaths to the or appropriate affirmations; law (7) enforcement issue sub-
Section 309 (e) also provided that, if a person fails to pay a civil
penalty, the Commission shall file a petition for enforcement in any
appropriate district court of the United States. The district court may
authorities; signed (6) by administer the THE a the to the testi- rele- (8)
determine de novo all questions of law, but the findings of fact made
penas, mony vant to of any witnesses and
by the Commission shall be conclusive, to the extent they are supported
by substantial evidence.
94
95
House amendment
Section 207 (b) (1) of the House amendment amended section
Senate bill
G. REPORT BY ATTORNEY GENERAL
311 (c) of the Act (as so redesignated by section 207 (a) (1)), relating
No provision.
to duties of the supervisory officer, by striking out paragraph (1) and
inserting a new paragraph (1). The new paragraph (1) provided that
House amendment
if any person who believes a violation of title I of the Act, title III
United States Code, has occurred may file a complaint with the Board.
of of the (as so redesignated by section 207 (a) (1)), amended section 311
Section the Act 207 (b) (2) of the House amendment
of the Act, or section 608, 610, 611, 613, 614, 615, or 616 of title 18,
If the Clerk of the House of Representatives, the Secretary of the
ent violations Attorney General to report to the Board (d) which re-
quired supervisory the officer, by adding a new subsection relating to duties
Senate, or any other person receiving reports and statements as cus-
todian for the Board, has reason to believe that any such violation has
occurred, then he shall refer such apparent violation to the Board.
and were required to be made no later than 2 months the Board. The
reports referred to the Attorney General by regarding appar-
Paragraph (1) also provided that if the Board receives a complaint
or referral, or if the Board has reason to believe that any person has
Board violation. The new subsection (d) also disposition of
the apparent on a monthly basis thereafter until there is a final after referral
committed a violation, then the Board shall notify the person involved
Board to may the publish Attorney reports General. on the status of referrals provided made that by the the
and shall either report the apparent violation to the Attorney General
Conference substitute
of the United States or make an investigation of the apparent viola-
tion. If the complainant involved is a candidate for Federal office,
The conference substitute is the same as the House amendment.
then any investigation conducted by the Board shall include an in-
vestigation of reports and statements filed by the complainant. The
Senate bill
H. SALARIES
Board may not disclose any notification or investigation unless it re-
ceives written permission to do SO by the person notified or under
investigation. Such person also may request the Board to conduct a
be Code, provide that members of the Commission title shall 5,
United Section States 207 (b) (1) to of the Senate bill amended section 5314 of
hearing regarding the apparent violation.
House amendment
compensated under level III of the Executive Schedule.
Paragraph (1) also provided that the Board seek to correct appar-
ent violations through informal methods of conference, conciliation,
and persuasion, and that the Board must refer apparent violations to
law enforcement authorities if the Board considers it appropriate or
the the Clerk of amendment, provided that members of 207 (a) of
Section House 308 (a) (1) (iv) of the Act, as added by section
if the Board fails to correct the violations.
Paragraph (1) also provided that if the Board concludes, after
compensation receive compensation at a rate equivalent Secretary to rate of the of
Senate) shall the House of Representatives and the Board (other than
affording notice and opportunity for a hearing, that a person has
Conference substitute
paid under level IV of the Executive Schedule. the
committed or is about to commit any violation of title I of the Act,
title III of the Act, or section 608, 610, 611, 613, 614, 615, or 616 of
title 18, United States Code, then the Attorney General shall bring &
The conference substitute is the same as the House amendment.
civil action for relief, including a permanent or temporary injunction,
Senate bill
I. TRANSITION
restraining order, or any other appropriate order.
Conference substitute
General, Section the 207 (c) of the Senate bill provided that the
The conference substitute generally follows the provisions of the
qualification Act and title III of the Act until responsibilities the under
title I of the shall continue to carry out their of the House of
Representatives Secretary of the Senate, and the Clerk Comptroller
House amendment with two modifications. First, the Commission is
given power to bring civil actions in Federal district courts to enforce
the provisions of the Act where its informal methods of obtaining
compliance fail to correct violations. Second, the Commission is given
meet with Secretary the of the Senate, and the Clerk of Comptroller the Gen-
eral, the Upon such appointment, the General Counsel
of the Commission. of members of the Commission and the appointmnt and
primary jurisdiction for the enforcement of the provisions of the Act.
Thus, any person must exhaust his admistrative remedies with respect
to violations under this Act. The primary jurisdiction of the Commis
such appointment, Commission of appropriate to arrange documents the transfer, and records. within 30 House days after shall
House amendment
sion to enforce the provisions of the Act is not intended to interfere
in any way with the activities of the Attorney General or Department
No provision.
of Justice personnel in performing their duties under the laws of the
Conference substitute
United States.
The conference substitute is the same as the Senate bill.
97
96
vided that an agency action of the Commission shall be subject to
J. CONFORMING AND TECHNICAL CHANGES
review by the United States Court of Appeals for the District of
Senate bill
Columbia upon petition by an interested person.
Section 207 (d) of the Senate bill made conforming and technical
Section 313 (b) provided that the Commission, the national commit-
amendments to title III of the Act required by the provisions of the
tee of any political party, and individuals eligible to vote in an election
Senate bill establishing the Commission.
for Federal office, may institute such actions as may be appropriate to
implement the provisions of the Act. Section 313 (c) provided that
House amendment
Section 206 (e) of the House amendment, which amended section
chapter 7 of title 5, United States Code, relating to judicial review,
301 (g) of the Act, relating to the definition of supervisory officer, for to
shall apply to agency action by the Commission.
provide that such term means the Board, eliminated any necessity
House amendment
conforming or technical amendments to title III of the Act.
No provision.
Conference substitute
Conference substitute
The conference substitute is the same as the Senate bill.
The conference substitute omits the provisions of the Senate bill.
K. JUDICIAL REVIEW
FINANCIAL ASSISTANCE TO STATES
Senate bill
Senate bill
Section 214 of the Senate bill amended title IV of the Act by insert-
Section 210 of the Senate bill amended section 309 of the Act, re-
ized the Commission, the national committee of any political party,
ing a new section 407, relating to judicial review. Section 407 author-
lating to statements filed with State officers, by inserting a new sub-
section (c). Such subsection authorized the appropriation of $500,000
President to bring any appropriate action in the appropriate district
and any individual eligible to vote in any election for the office of
to the Commission during each fiscal year, to be made available to the
States by the Commission to assist the States in carrying out their
court of the United States to implement or construe any provision of
responsibilities under section 309.
the Act or of chapter 29 of title 18, United States Code. The district
court was required to certify all questions of constitutionality to the
House amendment
United States court of appeals for the circuit involved, which was
No provision.
required to hear the matter sitting en banc.
Conference substitute
Section 407 also provided that any decision on a matter certified to
circuit court shall be reviewable by appeal directly to the Supreme
The conference substitute omits the provisions of the Senate bill.
a Court of the United States. Such appeal must be brought within 20
STATEMENTS FILED WITH STATE OFFICERS
days after the decision of the court of appeals. The court of appeals the
Senate bill
and the Supreme Court shall advance on the docket and expedite
disposition of any matter certified to the circuit court.
Section 210 of the Senate bill amended section 309 (a) (1) of the
Act, relating to statements filed with State officers, to provide that a
House amendment
candidate for the office of President or Vice President is required to
The amendment made by section 207 (c) of the House amendment
file statements in each State in which he is a candidate or in which
the same as the amendment made by section 214 of the Senate House bill,
substantial expenditures are made by him or on his behalf.
was with the following differences: (1) the amendment made by the
House amendment
and (2) section 315 was made applicable to sections 608, 610, 611, 613, 29
amendment was to title III of the Act, inserting a new section 315;
No provision.
614, 615, and 616 of title 18, United States Code, and not to chapter
Conference substitute
of title 18, United States Code.
The conference substitute omits the provisions of the Senate bill.
Conference substitute
The conference substitute generally follows the House amendment
REGULATION OF CERTAIN CAMPAIGN ACTIVITIES
and makes it clear that these special judicial review provisions are
available only for actions directed at determining the constitutionality States
A. APPROVAL OF CERTAIN EXPENDITURES
Senate bill
of provisions of the Act and of provisions of title 18, United
Code, related to the activities regulated by the Act.
Section 316 of the Act, as added by section 212 of the Senate bill,
provided that the national committee of a political party shall ap-
JUDICIAL REVIEW OF AGENCY ACTION
prove each expenditure in excess of $1,000 made by the candidate of
such party for the office of President or Vice President. Each national
Senate bill
ing a new section 313, relating to judicial review. Section 313 (a) pro-
Section 209 of the Senate bill amended title III of the Act by insert-
committee approving expenditures was required to register under sec-
99
98
the Act and to report each such expenditure, national together com- with
D. PROHIBITION OF FRANKED SOLICITATIONS
Senate bill
tion 303 of of each person requesting approval of also the provided that
the identity for the making of expenditures. Section 316 committee.
Section 319 of the Act, as added by section 212 of the Senate bill,
provided that no Senator, Representative, Delegate, or Resident Com-
mittee no political party may have more than one national
missioner frank. may make any solicitation of funds by a mailing under the
House amendment
House amendment
No provision.
No provision.
Conference substitute
The conference substitute omits the provisions of the Senate bill.
Conference substitute
The conference substitute is the same as the Senate bill.
B. CERTAIN USES OF CONTRIBUTIONS
Senate bill
AUTHORIZATION OF APPROPRIATIONS
317 of the Act, as added by section 212 of the Senate and moneys bill,
Senate bill
Section that excess contributions received by a candidate the of
Section 320 of the Act, as added by section 212 of the Senate bill,
provided individual holding Federal office for purpose Federal
authorized to be appropriated to the Commission for the purposes of
received by the an activities of such individual as a holder of ordinary
carrying out its functions under title III of the Act, title V of the
supporting be used by such candidate or individual to defray his duties as a
Act (as added by the Senate bill), and chapter 29 of title 18, United
office, may expenses incurred in connection with organiza-
States Code, not to exceed $5,000,000 for fiscal year 1974, and not to
and necessary Federal office, or may be contributed by him to any Code of 1954,
exceed $5,000,000 for each fiscal year thereafter.
holder described of in section 170 (c) of the Internal Revenue for other
House amendment
tion relating to the definition of charitable contribution, or any
Section 316 of the Act, as added by section 207 (c) of the House
lawful
purpose. 317 also provided that any such contributions, the candidate amounts
amendment, provided that, notwithstanding any other provision of
contributed, Section or expenditures shall be fully disclosed by with rules pre-
law, such sums as may be necessary may be appropriated to the Board
or individual holding Federal office, in accordance
to enable the Board to carry out its duties under the Act.
scribed by the Commission.
Conference substitute
House amendment
The conference substitute authorizes an appropriation of $5,000,000
for fiscal year 1975.
No provision.
PENALTIES
Conference substitute
Senate bill
sions of limiting the use of funds received as political treatment of
The this section do not affect any rule of the Senate or of con-
conference substitute is the same as the Senate bill. The the House provi-
Section 212 of the Senate bill amended title III of the Act by strik-
ing out section 311, relating to penalty for violations, and by inserting
of tributions Representatives nor do they have any effect on the Federal tax
a new section 321, relating to penalty for violations.
any such contributions used by a candidate for personal purposes.
Section 321 (a) provided that violation of any provision of title III
of the Act is a misdemeanor punishable by a fine of not more than
$10,000, imprisonment for not more than one year, or both.
C. SUSPENSION OF USE OF FRANK
Section 321 (b) provided that violation of any such provision with
Senate bill
318 of the Act, as added by section 212 of the Senate Com- bill,
knowledge or reason to know that the act committed or omitted is a
provided make any mass mailing of a newsletter or mailing
Section that no Senator, Representative, Delegate, or Resident with
violation of title III of the Act is punishable by a fine of not more than
$100,000, imprisonment for not more than 5 years, or both.
missioner a simplified may form of address under the frank during the 60-day period
House amendment
immediately before an election in which he is a candidate.
No provision.
Conference substitute
House amendment
The conference substitute omits the provisions of the Senate bill,
No provision.
but like the House amendment retains the penalty contained in exist-
Conference substitute
It The is noted by the conferees that such provisions are similar
conference substitute omits the provisions of the Senate to provi- bills
ing law.
sions in existing law.
101
100
disclosure of political contributions to and expenditures by Federal
ADVISORY OPINIONS
candidates and political committees, but does not affect State laws as
Senate bill
to the manner of qualifying as a candidate, or the dates and places of
Section 309 (f) that, upon application by any individual Commission
of the Act, as added by section 207 (a) of holding the Senate Fed-
elections.
PERIOD OF LIMITATIONS
bill, provided candidate, or any political committee, the time, with re-
Senate bill
eral shall office, any advisory opinion, within a reasonable violation of
No provision.
provide to whether an a transaction or activity may constitute Code, a over which
spect provision of the Act or of title 18, United States
House amendment
any the Commission has primary jurisdiction.
Section 406 of the Act, as added by section 302 of the House amend-
ment, provided that no criminal action may be brought against a per-
House amendment
Section section 313, relating to advisory opinions. by the
208 of the House amendment amended title III of the The Act
son for violation of title I of the Act, title III of the Act, or section 608,
610, 611, 613, 614, 615, or 616 of title 18, United States Code, unless
such action is brought before the expiration of 3 years after the date of
by inserting section 313 a provided new for the rendering individual of advisory holding opinions Federal
such violation. Under existing law the period of limitations is 5 years.
Section 406 also provided that (1) the new period of limitations
shall apply to violations committed before, on, or after the effective
new Board. to office, regarding litical United III in the The compliance of a Board, committee the new Section States candidate, whether Act, section then Code. with or 313 would section 313 the or any provided an a Board also advisory constitute political activity 608, provided shall that 610, to opinion of committee, be a 611, if render violation the in that an 613, compliance individual, rendered if a a 614 written makes of person title 615, at with a candidate, advisory or acts I his written of 616 the in the request, or good Act, statutory opinion title request or faith title then po- 18,
date of such section; (2) no person shall be prosecuted, tried, or pun-
ished for any violation of title I of the Act, title III of the Act, or
section 608, 610, 611, or 613 of title 18, United States Code, as in ef-
fect on the day before the effective date of this legislation, if the act or
omission constituting such violation does not constitute a violation of
any such provision as amended by this legislation; and (3) section
406 shall not affect any proceeding pending in any court of the United
the person regarding shall be presumed which the advisory opinion is rendered. shall Section be
States on the effective date of section 406.
provision provided that any request for an advisory opinion provide inter-
Conference substitute
313 also by the Board. The Board was required to comments to the
The conference substitute is generally the same as the House amend-
made public with an opportunity to furnish written an advisory
ment, but it provides that no criminal proceedings are to be instituted
ested Board parties concerning any request before the Board renders
after December 31, 1974, for violations of the old law which do not
opinion regarding the request.
constitute violations of the law as amended by the conference
substitute.
Conference substitute
except The that it is extended to Commission functions under chapters
conference substitute is the same as the House amendment, 95
ENFORCEMENT
Senate bill
No provision.
and 96 of the Internal Revenue Code of 1954.
House amendment
GENERAL PROVISIONS
Section 407 of the Act, as added by section 302 of the House amend-
ment, provided that if the Board finds, after notice and opportunity
EFFECT ON STATE LAW
for a hearing on the record, that a candidate failed to file a report re-
Senate bill
quired by title III of the Act, then the candidate shall be disqualified
of the Senate bill amended section 403 of the of Act, the relat- Act
from becoming a candidate in any future Federal election for a period
Section effect 213 on State law, to provide that the provisions campaigns for
beginning on the date of the finding and ending one year after the ex-
preempt ing to any provision of State law with respect to
piration of the term of the Federal office for which the person was a
election to Federal office.
candidate. Any such finding would be reviewable by the courts under
chapter 7 of title 5, United States Code, in the same manner as in the
House amendment
301 of the House amendment amended section 403 manner of the as
case of any other final agency action under the administrative pro-
Act, Section relating to effect on State law, in essentially bill. the same
cedure provisions of title 5 of the United State Code.
It was the intent of the members of the House committee that the
the amendment made by section 213 of the Senate
enforcement mechanism of section 407 shall not be applied in any case
in which the candidate involved demonstrates that he did not receive
Conference substitute
substitute follows the House amendment. It is clear and
timely notice from the Board advising him of an approaching filing
that The the conference Federal law occupies the field with respect to reporting
date regarding reports he is required to file under title III of the Act.
103
102
B. AVAILABILITY OF BROADCAST FACILITIES
Conference substitute
The conference substitute is the same as the House amendment.
Senate bill
AMENDMENTS TO OTHER LAWS; EFFECTIVE DATES
Section 201 (a) of the Senate bill amended section 315 (a) of the
Communications Act of 1934, relating to facilities for candidates for
POLITICAL ACTIVITIES BY STATE AND LOCAL OFFICERS AND EMPLOYEES
public office, by inserting a new paragraph (2) and paragraph (3).
Paragraph (2) provided that a licensee may meet the equal broad-
cast time requirements of section 315 (a) with respect to a candidate
Senate bill
seeking equal broadcast time if (1) the licensee makes available with-
No provision.
out charge to such candidate at least 5 minutes of broadcast time; (2)
the licensee notifies such candidate of the availability of such time at
House amendment
401 of the House amendment amended section 1502 of title in
least 15 days before the election involved; and (3) the broadcast will
Section United States Code (relating to influencing elections; taking that part State
cover, in whole or in part, the geographical area in which such elec-
tion is held.
5, campaigns; prohibitions; exceptions) to provide in political
political local officers and employees may take an active part not be
Paragraph (3) provided that a candidate could not make use of
and management and in political campaigns, except that they may
broadcast time offered to him under paragraph (2) unless he notified
candidates for elective office.
offer. the licensee of his acceptance within 48 hours after receipt of the
Conference substitute
House amendment
The is the intent of the conferees that any State law regulating not
conference substitute is the same as the House amendment. the
No provision.
political empted or superseded by the amendments to title 5,
It activities of State and local officers and employees United is States pre-
Conference substitute
The conference substitute omits the provisions of the Senate bill.
Code, made by this legislation.
C. CHARGES FOR USE OF FACILITIES
CAMPAIGN COMMUNICATIONS
Senate bill
A. REPEAL OF CERTAIN PROVISIONS
Section 201 (b) of the Senate bill amended section 315 (b) of the
Communications Act of 1934, relating to facilities for candidates for
Senate bill
Section 201 (e) of the Senate bill repealed title I of the Act, relating
public office, to provide that rules established by section 315 (b) gov-
erning charges made by broadcasting stations shall apply whether the
to campaign communications.
candidate himself uses the facilities of the station, or such facilities
House amendment
are used by other persons on behalf of the candidate.
Section 402 of the House amendment amended title I of the Act,
House amendment
relating to campaign communications, by striking out communications section 104,
No provision.
relating to limitations of expenditures for use of
Conference substitute
media. the amendment made by this section, a candidate is no longer
The conference substitute omits the provisions of the Senate bill.
restricted Under with respect to expenditures for use of communications limita-
media. The House amendment, however, established overall decide
D. EXPENDITURE CERTIFICATIONS
tions on campaign expenditures, but left the candidate free to House
Senate bill
the for which such expenditures will be made. United The States
committee purpose also noted that, on November 14, 1973, the of
Section 201 (c) (1) of the Senate bill amended section 315 (c) of the
Court for the District of Columbia decided, in the case
Communications Act of 1934, relating to facilities for candidates for
District American Civil Liberties Union V. Jennings (366 F. 2d 1041), that
public office, to provide that the expenditure limitations applicable to
the requirement of section 104 (b) of the Act that a candidate and certify bill-
such subsection shall be those in effect under section 504 of the Act, as
that certain media advertising (newspapers, magazines, this
added by the Senate bill, or under section 614 of title 18, United States
boards) did not violate the expenditure limitations repealed by in
Code, as added by the Senate bill.
section was an unconstitutional prior restraint upon publication
Section 201 (c) (2) of the Senate bill amended section 315 (d) of such
Act to provide that if a State imposes an expenditure limitation with
violation of First Amendment rights.
respect to candidates for public office (other than Federal office), then
Conference substitute
a station licensee may not make a charge for the use of his facilities
The conference substitute is the same as the Senate bill.
by or on behalf of any such candidate unless such candidate certifies
104
105
to such station licensee that payment of the charge will not violate the
by taxpayers for payment under section 6096 of the Code, relating to
expenditure limitation established by the State.
designation by individuals to the Presidential Election Campaign
Fund, before January 1, 1975, to the extent that such amounts are not
House amendment
otherwise taken into account under the provisions of section 9006 of
Section 402(c) of the House amendment amended section 315 of the
the Code, relating to payments to eligible candidates, as amended by
Communications Act of 1934, relating to facilities for candidates for
this legislation.
public office, by striking out subsections (c), (d), and (e). The effect
of the amendment was to eliminate the requirement that licensees of
ENTITLEMENT TO PAYMENTS FROM PRESIDENTIAL ELECTION
broadcasting stations obtain certification from a candidate that his
CAMPAIGN FUND
purchase of air time on the station involved does not exceed his ex-
Senate bill
penditure limitations under title I of the Act or under any provision
No provision.
of State law.
House amendment
Conference substitute
Section 404 of the House amendment amended section 9004(a) (1)
The conference substitute is the same as the House amendment.
of the Code, relating to entitlement of eligible candidates to payments,
to provide that eligible candidates of each major party in a Presiden-
E. POLITICAL ADVERTISEMENTS ON RADIO
tial election shall be entitled to equal payments in an amount not to
Senate bill
exceed $20,000,000. The amendment eliminated the formula under
Section 201 (d) of the Senate bill amended section 317 of the Com-
which candidates of a major party would receive 15 cents multiplied
munications Act of 1934, relating to announcement of payment for
by the number of residents of the United States who are 18 years of
broadcast, to provide that (1) a political broadcast soliciting funds
age or older.
shall include an announcement (the time for which shall be made
available without charge by the licensee) that reports of the candidate
Conference substitute
involved filed with the Commission are available from the Commis-
The conference substitute is the same as the House amendment.
sion; and (2) station licensees shall maintain records of political
DEFINITION OF AUTHORIZED COMMITTEE
advertisements which are broadcast by such licensees.
Senate bill
House amendment
No provision.
No provision.
House amendment
Conference substitute
Section 404(c) of the House amendment amended section 9002(1)
The conference substitute omits the provisions of the Senate bill.
of the Code, relating to the definition of "authorized committee", to
provide that such term means, with respect to candidates for Presi-
AUTOMATIC TRANSFERS TO CAMPAIGN FUND
dent or Vice President, the political committee designated under sec-
tion (1) of the Act, as added by the House amendment, by
Senate bill
the candidate for President as his principal campaign committee. Sec-
No provision.
tion 404 (c) also contained technical conforming amendments to vari-
ous sections of the Code made necessary by the change made to the
House amendment
Section 403 of the House amendment amended section 9006(a) of
definition of "authorized committee".
the Internal Revenue Code of 1954 (hereinafter in this statement re-
Conference substitute
ferred to as the "Code"), relating to establishment of campaign fund,
The conference substitute omits the provisions of the House amend-
to provide that the Secretary of the Treasury (hereinafter in this
ment. This omission conforms with the decision of the conferees to
statement referred to as the "Secretary") shall automatically transfer
permit authorized committees, as well as the principal campaign com-
to the Presidential Election Campaign Fund, out of amounts in the
mittee, to make expenditures on behalf of a candidate.
general fund of the Treasury not otherwise appropriated, an amount
The conference substitute also amends section 9002 (3) of the Code,
equal to amounts designated under section 6096 of the Code, relating
relating to the definition of "Comptroller General", by eliminating
to designation of income tax payments to the Presidential Election
such definition and inserting a new definition, relating to the Federal
Campaign Fund.
Election Commission established by section 310(a) (1) of the Act, as
amended by this legislation. The conference substitute also contains
Conference substitute
The conference substitute is the same as the House amendment.
technical conforming amendments to various sections of the Code
The conference substitute also provides that there is appropriated
made necessary by the decision of the conferees to substitute the
to the Presidential Election Campaign Fund all amounts designated
Commission for the Comptroller General with respect to administra-
tion of the Code political financing
106
107
The conference substitute also repeals chapter 96 of the Code,
B. Entitlement to payments.Section 9008(b) provided that the
relating to Presidential Election Campaign Fund Advisory Board.
national committee of a major party is entitled to payments not to
It is the opinion of the conferees that the Commission will be in a
exceed $2,000,000. The national committee of a minor party is entitled
position to perform those functions which were assigned to such Board
to payments not to exceed an amount which bears the same ratio to
the entitlement of the national committee of a major party as the num-
under chapter 96.
ber of votes received by the candidate for President of the minor party
CERTIFICATION FOR PAYMENT BY COMMISSION
in the preceding Presidential election bears to the average number of
votes received by candidates for President of the major parties in the
Senate bill
election. The national committee of a minor party could use additional
private funds in the operation of a Presidential nominating conven-
No provision.
tion, but only to the extent that the total expenditure (counting both
House amendment
public and private funds) does not exceed $2,000,000. A major party
Section 405 of the House amendment amended section 9005(a) of
electing to receive its $2,000,000 entitlement could not use any addi-
the Code, relating to initial certifications for eligibility for payments,
tional private funds. The only exception to the $2,000,000 limitation
to provide that, not later than 10 days after candidates of a political
would be an instance in which the Presidential Election Campaign
party have established their eligibility to receive payments, the Comp-
Advisory Board permitted the expenditure of private funds under
troller General shall certify to the Secretary payment in full of the
section 9008 (d).
candidates' entitlements. The amendment, together with the amend-
C. Use of funds.-Section 9008(c) provided that no part of pay-
ment made by section 406(a) of the House amendment, eliminated the
ments made under section 9008 may be used to defray expenses of any
procedure under which candidates were required to submit records
candidate or delegate participating in any Presidential nominating
of expenses and proposed expenses in order to obtain certification from
convention. The payments are to be used only to (1) defray expenses
the Comptroller General for payments. Section 406(a) of the House
incurred with respect to a Presidential nominating convention (in-
amendment amended chapter 95 of subtitle H of the Code, relating
cluding payment of deposits) by the national committee; or (2) repay
to the Presidential election campaign fund, by striking out section
loans which were used to defray such expenses.
9008, relating to information on proposed expenses.
D. Limitation of expenditures.-Section 9008(d) provided that the
national committee of a major party or a minor party may not make
Conference substitute
expenditures which exceed the amount of the entitlement of the na-
The conference substitute is the same as the House amendment, ex-
tional committee of a major party under section 9008. Notwithstand-
cept that the conference substitute eliminates the role of the Comp-
ing this limitation, the national committee of a major party or minor
troller General and substitutes the Commission.
party may make expenditures from private sources in excess of this
limitation if such expenditures are authorized by the Presidential
FINANCING OF PRESIDENTIAL NOMINATING CONVENTIONS
Election Campaign Advisory Board. Before making any authoriza-
tion, such Board shall determine that extraordinary and unforeseen
Senate bill
circumstances have made necessary such expenditures to assure effec-
No provision.
tive operation of the Presidential nominating convention. It was the
intent of the House committee that such Board shall make authoriza-
House amendment
Section 406(a) of the House amendment amended chapter 95 of
tions only in cases in which events of a catastrophic nature over-
subtitle H of the Code, relating to the Presidential election campaign
whelmingly imperil the operation of a Presidential nominating
convention.
fund, by inserting a new section 9008, relating to payments for Presi-
dential nominating conventions.
E. Other provisions.-
A. Establishment of accounts.Section 9008(a) provided that the
1. Payments to the national committee of major parties and minor
Secretary shall maintain in the Presidential Election Campaign Fund
parties under section 9008 may be made beginning on July 1 of the
a separate account for the national committee of a major political
calendar year before the calendar year in which the Presidential nom-
party or a minor political party. The Secretary shall deposit in each
inating convention is held.
account each national committee's entitlement under section 9008.
2. If, after each national committee has been paid the amount to
These deposits shall be drawn from amounts designated under sec-
which it is entitled, there are moneys remaining in national committee
tion 6096 of the Code, relating to designation of income tax payments
accounts, then such moneys shall be transferred to the Presidential
to the Presidential election campaign fund, and the deposits shall be
Election Campaign Fund.
made before any transfer of funds to the account of any eligible candi-
3. In order to qualify for payments, any major party or minor party
date under section 9006(a) of the Code, relating to establishment of
may file a statement with the Comptroller General designating the
campaign fund.
national committee of the party. After the Comptroller General
108
109
verifies the statement he shall certify to the Secretary payment in
full of the entitlement of the national committee. Payments shall
limitation. financing program, it still will be subject to the $2,000,000 spending
be subject to examination and audit, which the Comptroller General
shall conduct before the close of the calendar year in which the nomi-
nating convention is held.
based and qualifies for payments, it will be entitled to payments in
If the national committee of a minor party chooses to participate
4. The Comptroller General may require repayments from the na-
could mittee of a minor party participates in the financing it com- still
on the voting strength of the minor party. If the national amounts
tional committee of a major party or minor party in the same manner
as he may require repayments from candidates under section 9007 (b)
use additional private funds in the operation of program, a Presidential
of the Code, relating to repayments.
F. Conforming amendments.-Section (b) of the House amend-
$2,000,000. (counting both public and private funds) does not exceed
ture nominating convention, but only to the extent that the total expendi-
ment amended section 9009 (a) of the Code, relating to reports, to
require that reports of the Comptroller General include the following
spending limitation.
pate in the financing program, it still will be subject to the $2,000,000
If the national committee of a minor party chooses not to partici-
information: (1) expenses incurred by the national committee of a
major party or minor party with respect to a Presidential nominating
convention; (2) amounts certified by the Comptroller General for
payment to such national committees; and (3) the amount of re-
Senate bill
ADVERTISING IN CONVENTION PROGRAMS
payments required from such national committees, and the reason
for any repayments.
No provision.
Section (b) also amended section 9012 (a) (1) of the Code, relat-
House amendment
ing to excess campaign expenses, to make it unlawful for the national
committee of a major party or minor party to incur convention ex-
Section (d) of the House amendment amended section 276 of
penses in excess of the applicable expenditure limitation, unless such
expenses are authorized by the Presidential Election Campaign Fund
by striking out subsection (c), relating to advertising in a convention
the Code, relating to certain indirect contributions to political parties,
Advisory Board.
program of a national political convention. The effect of the amend-
Section 406 (b) also amended section 9012 of the Code, relating
ment for was to eliminate any income tax deduction for any amount paid
to unlawful use of payments, to make it unlawful for the national
advertising in a convention program.
committee of a major party or minor party to use payments for any
Conference substitute
purpose which is not authorized by section 9008(c), relating to use
The conference substitute is the same as the House amendment.
of funds.
Section 406 (b) also amended section 9012(e) (1) of the Code, relat-
ing to kickbacks and illegal payments, to make it unlawful for the
Senate bill
TAX RETURNS BY POLITICAL COMMITTEES
national committee of a major party or minor party to give or accept
No provision.
any kickback or other illegal payment in connection with any con-
House amendment
vention expense incurred by such national committee.
Conference substitute
Section 407 of the House amendment amended section 6012
The conference substitute is the same as the House amendment,
except for the following changes:
to provide that any political committee which has no gross income
of the Code, relating to persons required to make returns of income,
1. The conference substitute eliminates the role of the Comptroller
a return for such taxable year.
for a taxable year shall be exempt from the requirement of making
General and the Presidential Election Advisory Board, and sub-
stitutes the Commission.
Conference substitute
2. The conference substitute provides that the $2,000,000 payments
The conference substitute is the same as the House amendment.
limit and expenditure limit shall be subject to cost-of-living adjust-
ments in the same manner as the expenditure limitations contained
PUBLIC FINANCING OF FEDERAL ELECTION CAMPAIGNS
in title 18, United States Code, as amended by this legislation.
Participation in the convention financing program of this legisla-
A. IN GENERAL
tion is optional. The provisions of this legislation do not require the
Senate bill
national committee of a major party or a minor party to seek to qualify
for payments.
title V. Title V provided that public financing would be available on
Section 101 of the Senate bill amended the Act by inserting a new
If the national committee of a major party chooses to participate
and qualifies for payments, it will be limited to payments aggregating
a matching basis to all candidates for Federal office in primary election
$2,000,000. If such national committee chooses not to participate in the
limitations established by the Senate bill) would be available to all
campaigns, and that complete public financing (up to the expenditure
110
111
candidates of major parties in general election campaigns, with pro-
convention of a political party; and (D) an election held for expres-
portionate amounts available to all candidates of minor parties and
sion of a preference for nomination of persons for election to the office
of President.
other parties.
7. The term "eligible candidate" was defined to mean a candidate
House amendment
who is eligible under section 502 of the Act, relating to eligibility for
Section 408 of the House amendment amended subtitle H of the
payments, as added by the Senate bill, for payments under title V of
Code by inserting a new chapter 97, relating to Presidential primary
the Act, as added by the Senate bill.
matching payment account. Chapter 97 provided that public financing
would be available on a matching basis to all candidates for the office
8. The term "major party" was defined to mean (A) a political party
whose candidate for the Federal office involved in the preceding gen-
of President in primary election campaigns.
eral election for such office received (as the candidate of such party) at
Conference substitute
least 25 percent of the votes cast in such election; or (B) if only one
The conference substitute is the same as the House amendment.
political party qualifies as a major party under the provisions of (A),
the political party whose candidate for the Federal office involved in
B. SHORT TITLE
the preceding general election for such office received (as a candidate
Senate bill
of such party) the second greatest number of votes cast in such elec-
tion, if (i) such number is equal to at least 15 percent of the votes cast
No provision.
in such election; and (ii) in a State which registers voters by political
House amendment
party, the registration of such political party in such State or district
Section 9031 of the Code, as added by section 408 (c) of the House
is equal to at least 15 percent of the total number of voters registered
amendment, provided that chapter 97 of the Code may be cited as
in such State or district.
the "Presidential Primary Matching Payment Account Act".
9. The term "minor party" was defined to mean a political party
whose candidate for the Federal office involved in the preceding
Conference substitute
general election for such office received (as a candidate of such party)
The conference substitute is the same as the House amendment.
at least 5 percent but less than 25 percent of the votes cast in such
election.
C. DEFINITIONS
10. The term "fund" was defined to mean the Federal Election Cam-
Senate bill
paign Fund established by section 506 (a) of the Act, relating to pay-
Section 501 of the Act, as added by section 101 of the Senate bill,
ments to eligible candidates, as added by the Senate bill.
contained the following definitions:
1. The terms "candidate", "Commission", "contribution", "expendi-
House amendment
ture", "national committee", "political committee", "political party",
Section 9032 of the Code, as added by section of the House
and "State" were given the same meanings as given them by section
amendment, contained the following definitions:
1. The term "authorized committee" was defined to mean the politi-
301 of the Act.
2. The term "authorized committee" was defined to mean the central
cal committee designated under section 302 (f) (1) of the Act, as added
campaign committee of a candidate designated under section 310 of
by the House amendment, by the candidate of a political party for
the Act, relating to central campaign committees, as added by the
President as his principal campaign committee.
Senate bill, or any political committee authorized in writing to receive
2. The term "candidate" was defined to mean an individual who
seeks nomination for election to the office of President. An individual
contributions or make expenditures for a candidate.
3. The term "Federal office" was defined to mean the office of Presi-
shall be considered to be seeking the nomination if he (A) takes
actions necessary under State law to qualify for nomination; (B)
dent, Senator, or Representative.
4. The term "Representative" was defined to mean a Member of the
receives contributions or incurs qualified campaign expenses; or (C)
House of Representatives, the Resident Commissioner from the Com-
gives his consent for any other person to receive contributions or incur
monwealth of Puerto Rico, and the Delegates from the District of
qualified campaign expenses on his behalf.
3. The term "Comptroller General" was defined to mean the Comp-
Columbia, Guam, and the Virgin Islands.
5. The term "general election" was defined to mean any regularly
troller General of the United States.
scheduled or special election held to elect a candidate to Federal of-
4. The term "contribution" was defined to mean (A) a gift, sub-
fice or to elect Presidential and Vice-Presidential electors.
scription, loan, advance, or deposit of money or anything of value
6. The term "primary election" was defined to mean (A) an elec-
made for the purpose of influencing the result of a primary election,
tion, including a runoff election, held for the nomination of a candidate
if payment is made on or after the beginning of the calendar year
by a political party for election to Federal office; (B) a convention or
preceding the calendar year of the Presidential election with respect to
caucus of a political party to nominate a candidate; (C) a convention,
which such primary election is held; (B) a contract, promise, or agree-
caucus, or election held to select delegates to a national nominating
ment to make a contribution; (C) a transfer of funds between politi-
112
113
cal committees; or (D) payment by any person, other than a candidate
or his authorized committee, of compensation for personal services of
lation. established by section 310 (a) (1) of the Act, as amended by this legis-
another person which are rendered to the candidate or committee with-
out charge. Such term did not include the value of personal services
administration of the Code political financing provisions.
stitute the Commission for the Comptroller General with respect to
This change conforms with the decision of the conferees to sub-
rendered on a voluntary basis by persons who receive no compensation
for such services, or any payments made under section 9037, relating
parties which do not nominate their candidates for the office of Presi-
3. The conference substitute provides that, with respect to political
to payments to eligible candidates, as added by the House amend-
ment.
5. The term "matching payment account" was defined to mean the
their candidate; or (B) the last day of the last nominating
ment period shall be the earlier of (A) the date such parties nominate pay-
dent by holding national conventions, the end of the matching
Presidential Primary Matching Payment Account established under
section 9037 (a), relating to establishment of account, as added by the
election for the office of President.
tion held by a major party during the calendar year of the conven- general
House amendment.
6. The term "matching payment period" was defined to mean the
period beginning with the beginning of the calendar year in which
Senate bill
D. ELIGIBILITY FOR PAYMENTS
a general election for the office of President is held and ending on the
date which the party whose nomination a candidate seeks nominates its
Section 502 (a) of the Act, relating to eligibility for
candidate for such office.
7. The term "primary election" was defined to mean an election, in-
to receive payments under title V of the Act, a candidate shall (1)
added by section 101 of the Senate bill, provided that, to payments, be eligible to as
cluding a runoff election or a nominating convention or caucus held
obtain and furnish to the Commission evidence with respect agree to his
by a political party, for selection of delegates to a national nominating
convention of a political party, or for expression of a preference for
the other information; (3) to submit to an audit and examination
and campaign expenditures and contributions; (2) to keep records, books,
nomination of persons for election to the office of President.
Commission; and (4) to furnish statements of expenditures and by
8. The term "political committee" was defined to mean any individ-
proposed expenditures under section 508 of the Act, relating to infor-
ual, committee, association, or organization which accepts contribu-
mation Senate bill. of expenditures and proposed expenditures, as added by the
tions or incurs qualified campaign expenses for the purpose of
influencing the nomination for election of one or more individuals
Section 502(b) provided that every candidate shall certify to the
to be President.
Commission that (1) he and his authorized committees will not make
9. The term "qualified campaign expense" was defined to mean a
money or of anything of value incurred by a candidate or his author-
bill; and (2) no contributions will be accepted by him or his author-
the Act, relating to expenditure limitations, as added by the Senate
expenditures in excess of the limitations established by section 504 of
purchase, payment, distribution, loan, advance, deposit, or gift of
ized committee in connection with his campaign for nomination for
Senate Code, bill. relating to limitations on contributions, as added by the
ized States committees in violation of section 615(b) of title 18, United
election, neither the incurring nor payment of which violates any Fed-
eral or State law.
10. The term "State" was defined to mean each State of the United
Section 502 (c) (1) provided that, to be eligible to receive
States and the District of Columbia.
shall for use in connection with his primary election campaign, a candidate payments
Conference substitute
election as a Representative and he has received contributions of
certify to the Commission that (1) he is seeking nomination for
The conference substitute is the same as the House amendment, with
than $10,000; (2) he is seeking nomination for election to the Senate more
the following changes:
1. The conference substitute defines the term "authorized committee"
of and he has received contributions equal to the lesser of (A) 20 percent
to mean any political committee authorized in writing by candidates
relating to expenditure limitations, as added by the Senate bill;
the maximum he may spend under section 504(a) (1) of the Act,
for the office of President or Vice President to make expenditures on
(B) $125,000; or (3) he is seeking nomination for election to the office or
behalf of such candidates. The conference substitute requires such
authorization to be addressed to the chairman of such political com-
of President and he has received contributions of more than $250,000,
mittee, with a copy filed with the Commission. Any withdrawal of
ceived from residents of each of at least 20 States.
with not less than $5,000 in matchable contributions having been re-
such authorization also must be in writing, addressed to the chairman,
and filed with the Commission.
This change conforms with the decision of the conferees to permit
tion candidate shall certify to the Commission that he is seeking nomina-
for use in connection with his primary runoff election campaign, a
Section 502 (2) provided that, to be eligible to receive payments
authorized committees, as well as the principal campaign committee, to
make expenditures on behalf of a candidate.
candidate for such nomination in a primary runoff election.
for election as a Representative or as a Senator, and that he is a
2. The conference substitute omits the definition of "Comptroller
General" and inserts a definition of the Federal Election Commission
Section in 502 (d) provided that, to be eligible to receive payments for
use connection with his general election campaign, a candidate shall
certify to the Commission that (1) he is the nominee of a major party
114
115
or a minor party; or (2) in the case of any other candidate, he is seek-
President, no contributions in excess of $250 from any person shall
ing election to Federal office and he has received contributions in a
be taken into account; and (2) in the case of any other candidate, no
total amount not less than the amount of contributions required to be
contributions in excess of $100 from any person shall be taken into
received under section 502 (c) for the Federal office involved.
account.
Section 502 (e) provided that, in determining the amount of con-
Section 503 (b) (1) provided that every eligible candidate nomi-
tributions received by a candidate for purposes of section 502 and
nated by a major party is entitled to receive payments for use in con-
section 502 (d) (2), the following rules shall apply: (1) no contribu-
nection with his general election campaign in an amount equal to
tions in the form of subscriptions, loans, advances, deposits, products,
the amount of expenditures such candidate may make in connection
or services, shall be taken into account; (2) in the case of a candidate
with such campaign under section 504 of the Act, relating to expendi-
for nomination for election to the office of President, no contributions
ture limitations, as added by the Senate bill.
in excess of $250 from any person shall be taken into account; and (3)
Section 503 (b) (2) provided that every eligible candidate nomi-
in the case of any other candidate, no contributions in excess of $100
nated by a minor party is entitled to receive payments for use in con-
nection with his general election campaign in an amount equal to
from any person shall be taken into account.
the greater of (1) an amount having the same ratio to the amount of
ouse amendment
payments to which a major party candidate is entitled as the total
Section 9033 (a) of the Code, as added by section 408 (c) of the House
number of votes received by the candidate of such minor party in the
amendment, required that a candidate seeking to become eligible for
preceding general election bears to the average number of votes re-
payments shall in writing (1) furnish to the Comptroller General
ceived by major party candidates in such election; or (2) an amount
evidence of qualified campaign expenses; (2) agree to keep and fur-
having the same ratio to the amount of payments to which a major
nish to the Comptroller General records, books, and other information;
party candidate is entitled as the total number of votes received by
and (3) agree to an audit and examination by the Comptroller Gen-
such eligible candidate (other than votes he received as the candidate
eral, and agree to make repayments required under section 9038 of the
of a major party) in the preceding general election bears to the aver-
Code, relating to examinations and audits, repayments, as added by
age number of votes received by major party candidates in such
election.
the House amendment.
Section 9033 (b) required that a candidate seeking to become eligible
Section 503 (b) (3) provided that candidates, other than major
for payments shall certify to the Comptroller General that (1) the
party or minor party candidates, eligible under section (2) of
candidate and his authorized committee will not incur qualified cam-
the Act, relating to eligibility for payments, as added by the Senate
paign expenses in excess of the limit imposed by section 9035 of the
bill, shall receive payments in amounts determined as follows: if any
Code, relating to qualified campaign expense limitation, as added by
such candidate received, in the preceding general election for the Fed-
the House amendment; (2) the candidate is seeking nomination by a
eral office involved, 5 percent or more of the total number of votes cast,
political party for election to the office of President; (3) the candi-
he is entitled to receive payments for use in his general election cam-
date and his authorized committee have received contributions which
paign in an amount (not in excess of the applicable expenditure limi-
exceed $5,000 from residents of each of at least 20 States; and (4) the
tation under section 504 of the Act, relating to expenditure limita-
aggregate of contributions certified with respect to any one such resi-
tions, as added by the Senate bill) equal to an amount having the same
dent does not exceed $250.
ratio to the amount of payments to which a major party candidate is
entitled as the total number of votes received by such eligible candi-
Conference substitute
date in the preceding general election for the Federal office involved
The conference substitute is the same as the House amendment, ex-
bears to the average number of votes received by major party candi-
cept that the conference substitute eliminates the role of the Comp-
dates in such election. Section 503 (b) (3) also provided that the fore-
going formula shall not apply in determining the entitlement of any
troller General and substitutes the Commission.
candidate who was the candidate of a major party or minor party in
the preceding general election for the Federal office involved.
E. ENTITLEMENT TO PAYMENTS
Section 503 (b) (4) provided that an eligible candidate nominated
Senate bill
by a minor party or whose entitlement is determined under section
Section 503 (a) of the Act, relating to entitlement to payments, as
added by section 101 of the Senate bill, provided that every eligible
502 (d) (2) of the Act, relating to eligibility for payments, as added
candidate is entitled to payments in connection with his primary elec-
by the Senate bill, and who receives at least 5 percent of the total
number of votes in the current election, is entitled to payments under
tion campaign in an amount equal to the amount of contributions re-
ceived by such candidate, except that no contributions in the form of
section 506 of the Act, relating to payments to eligible candidates, as
subscriptions, loans, advances, deposits, products, or services, shall
added by the Senate bill, for expenditures made or incurred in con-
nection with his general election campaign in an amount (not in excess
be taken into account.
For purposes of section 503 (a), the following rules shall apply: (1)
of the applicable expenditure limitation under section 504 of the Act,
in the case of a candidate for nomination for election to the office of
relating to expenditure limitations, as added by the Senate bill) equal
116
117
to (1) an amount having the same ratio to the amount of payments to
such contributions may not be applied by such candidate to meet
which a major party candidate was or would have been entitled to
threshold requirements.
receive, as the total number of votes received by such eligible candi-
date in such election bears to the average number of votes received by
F. LIMITATION ON QUALIFIED CAMPAIGN EXPENSES
major party candidates in such election, reduced by (2) any amount
Senate bill
paid to such eligible candidate under section 506 before such election.
Section 503 (b) (5) provided that, in applying the provisions of
No provision.
section 503 to a candidate for election to the office of President the
House amendment
following rules shall apply: (1) votes cast for electors affiliated with
a political party shall be considered as cast for the candidate of such
Section 9035 of the Code, as added by section 408 (c) of the House
party for the office of President; and (2) votes cast for electors pub-
amendment, prohibited any candidate from incurring qualified cam-
licly pledged to cast their electoral votes for a candidate shall be con-
paign expenses in excess of the expenditure limitation for Presidential
sidered as cast for such candidate.
primaries established by section 608 (c) (1) (A) of title 18, United
Section 503 (c) provided that no candidate is entitled to payments
States Code, relating to limitations on contributions and expenditures,
as added by the House amendment.
in excess of the expenditure limitation applicable to him for the elec-
tion campaign involved under section 504 of the Act, relating to ex-
Conference substitute
penditure limitations, as added by the Senate bill.
The conference substitute is the same as the House amendment.
House amendment
Section 9034 (a) of the Code, as added by section 408 (c) of the
G. CERTIFICATION PROCEDURES
Senate bill
House amendment, provided that every eligible candidate is entitled
to payments in an amount equal to contributions received by the candi-
Section 505 of the Act, as added by section 101 of the Senate bill,
date and his authorized committee on or after the beginning of the
provided that the Commission, on the basis of records furnished by
calendar year before the calendar year of the Presidential election
each eligible candidate and before an examination and audit conducted
with respect to which the candidate is seeking nomination. Contribu-
by the Commission, shall certify from time to time to the Secretary for
tions from any one person will qualify for matching only to the extent
entitled. payment to each candidate the amount to which such candidate is
that such contributions do not aggregate more than $250.
For purposes of section 9033 (b) of the Code (relating to expense
Section 505 also provided that certifications and all determinations
limitation; declaration of intent; minimum contributions), as added
made by the Commission under title V of the Act shall be final, except
by the House amendment, and section (a), the term "contribu-
to the extent they are subject to examination and audit by the Com-
tion" was defined to mean a gift of money made by a written instru-
by the Senate bill.
mission and to judicial review under section 313 of the Act, as added
ment which identifies the person making the contribution. Such term
did not include a subscription, loan, advance. or deposit of money, or
House amendment
anything described in section 9032 (4) (B), (C), or (D) of the Code,
Section 9036 (a) of the Code, as added by section 408 (c) of the
relating to the definition of contribution, as added by the House
House amendment, provided that, not later than 10 days after a
amendment.
candidate establishes his eligibility for payments, the Comptroller
Section 9034(b) provided that payments under section 9034 (a)
General shall certify to the Secretary payment in full to the candidate
may not exceed 50 percent of the expenditure limitation for Presi-
of amounts to which he is entitled.
dential primaries established by section (1) (A) of title 18,
Section 9036 (b) provided that such certification and all determina-
United States Code, relating to limitations on contributions and ex-
tions of the Comptroller General under chapter 97 of the Code are final
penditures, as added by the House amendment.
and conclusive, except to the extent they are subject to examination
Conference substitute
and audit by the Comptroller General and to judicial review.
The conference substitute is the same as the House amendment.
Conference substitute
With respect to candidates who elect to receive matching payments,
The conference substitute is the same as the House amendment, ex-
all contributions (including those needed to meet the threshold re-
quirements of $5,000 in each of 20 States) received on or after Janu-
troller General and substitutes the Commission.
cept that the conference substitute eliminates the role of the Comp-
ary 1 of the year preceding the year in which the Presidential elec-
The conference substitute provides that the Commission shall make
tion is held will be matched with payments from check-off funds under
such additional certifications as may be necessary to assure that candi-
the financing program. A candidate may not receive matching pay-
dates will receive payments for matchable contributions under section
ments for any contributions not raised on or after January 1 of the
9037 of the Code.
year preceding the year in which the Presidential election is held, and
119
118
H. PAYMENTS TO ELIGIBLE CANDIDATES
Conference substitute
The conference substitute is the same as the House amendment, ex-
Senate bill
Section 506 (a) of the Act, as added by section 101 of the Senate bill, be
cept that the percentage limitations on transfers to candidates and po-
established within the Treasury of the United States a fund to
litical parties are omitted.
as the Federal Election Campaign Fund. Section 506 (a) also
known authorized the appropriation of funds in amounts equal to amounts
I. EXAMINATION AND AUDITS; REPAYMENTS
designated under section 6096 of the Code, relating to designation by
Senate bill
individuals of income tax payments to Presidential Election Campaign
Section 507 (a) of the Act, as added by section 101 of the Senate
Fund, not previously taken into account for purposes of section 506
bill, required the Commission to conduct an examination and audit of
(a), together with such additional funds as may be necessary to carry
the campaign expenditures of every candidate receiving payments
under title V of the Act after each Federal election.
out title V of the Act.
Section 506 (b) provided that the Secretary shall, upon receipt the of
Section 507 (b) (1) provided that if the Commission determines that
certification from the Commission, pay the amount certified to
a candidate received payments in excess of his entitlement, then the
candidate shall be required to repay the excess amount. Section 507
candidate involved.
Section (c) (1) provided that, if the Secretary determines that all
(b) (1) also provided that if the Commission determines that pay-
amounts in such Fund are not sufficient to pay entitlements of
ments made to a candidate were not used to make expenditures in
candidates, then he shall reduce the amount to which each candidate
connection with the election campaign of such candidate, such candi-
is entitled by a percentage equal to the percentage obtained by dividing
date shall be required to pay an amount equal to the unexpended por-
(1) the amount of moneys in such Fund at the time of such determi-
tion of such payments to the Secretary. The Commission, in making
nation by (2) the total amount which all eligible candidates are reduc- en-
such determination, was required to consider amounts received as
titled to receive. The Secretary was required to make further
contributions to have been expended before any amounts received
tions if additional candidates become eligible after such determination.
under title V of the Act are expended.
Section 506 (c) (2) provided that if, as a result of reductions in the of
Section 507 (b) (2) provided that if the Commission determines that
amount of entitlement, a candidate has received payments in excess
a candidate has used payments for any purpose other than to defray
his entitlement, then such candidate is liable for repayment to such
campaign expenses or to repay loans or restore funds which were used
Fund of the amount of such excess.
to defray campaign expenses, then the candidate shall be required to
V of the Act to any candidate in connection with any election held
Section 506 (d) provided that no payment shall be made under title
repay the amount involved.
Section 507 (b) (3) provided that no payments shall be required from
a candidate under section 507 (b) in excess of payments received by
before January 1, 1976.
such candidate under section 506 of the Act, relating to payments to
House amendment
eligible candidates, as added by the Senate bill.
Section 9037 (a) of the Code, as added by section 408 (c) of the
Section 507 (c) provided that the Commission may not make a noti-
House amendment, required the Secretary to establish in the Presi-
fication of a required repayment by a candidate with respect to any
dential Election Campaign Fund a separate account to be known as
election campaign more than 18 months after the day of the election
the Presidential Primary Matching Payment Account (hereinafter in
involved.
this statement referred to as the "matching payment account"). The
Section 507 (d) required the Secretary to deposit repayments re-
Secretary was required to deposit into the matching payment account,
ceived by him under section 507 (b) in such Fund.
determines that amounts for payments to candidates in the general
for use by eligible candidates, amounts available after the Secretary
House amendment
election for the office of President and amounts for payments to na-
Section 9038 of the Code, as added by section 408 (c) of the House
tional committees of major parties and minor parties for Presidential
amendment, was the same as section 507 of the Act, as added by the
nominating conventions, are available for such payments.
Senate bill, with the following differences:
Section 9037 (b) required the Secretary to transfer certified amounts
1. The responsibility for administering section 9038 was given to
to candidates during the matching payment period. In making trans-
the Comptroller General, and not to the Commission.
fers to candidates of the same political party, the Secretary was re-
2. The Comptroller General was required to conduct examinations
quired to seek an equitable distribution of funds, taking into account candi-
and audits at the end of each matching payment period, and not after
the sequence in which certifications are received. Transfers to
each Federal election.
dates of the same political party may not exceed 45 percent of the total
3. Section 9038 (a) specifically required examinations and audits of
amount available in the matching payment account, and transfers to
the authorized committee of each candidate, together with examina-
any candidate may not exceed 25 percent of the total amount avail-
tions and audits of each candidate.
ble in the matching payment account.
121
120
4. With respect to the repayment by candidates of unexpended por-
Section 509 (b) authorized the Commission to (1) conduct examina-
tions and audits, in addition to examinations and audits required under
tions of payments, section 9038 (b) (3) provided that payments to a
candidate from the matching payment account may be retained to pay
sections 505 and 507 of the Act, as added by the Senate bill; (2) con-
qualified campaign expenses for a period not exceeding 6 months after
duct investigations; and (3) require the keeping and submission of
books, records, and information.
the close of the matching payment period. After a candidate has
liquidated all obligations, that portion of any balance remaining in
House amendment
his account which bears the same ratio to the total balance as the total
Section 9039 (a) and section 9039(b) of the Code, as added by sec-
amount received from the matching payment account bears to the
tion 408 (c) of the House amendment, were the same as section 509 of
total of all deposits made into the candidate's account, shall be repaid
the Act, as added by the Senate bill, with the following differences:
by the candidate to the matching payment account.
1. Section 9039 (a) placed the reporting requirements on the Comp-
5. Section 9038 did not contain a provision that no payments shall
troller General, and not on the Commission.
be required from a candidate in excess of payments received by such
2. Section 9039 (a) required reports after each matching payment
candidate.
period, and not at the close of each calendar year.
6. Section 9038(c) provided that notifications of required repay-
3. Section 9039 in addition to authority granted by section
ments could not be made more than 3 years after the end of the match-
509 (b) of the Act, as added by the Senate bill, gave the Comptroller
ing payment period involved.
General authority to prescribe rules and regulations. It should be noted
that section 309 (a) (8) of the Act, as added by section 207 (a) of the
Conference substitute
Senate bill, gave the Commission general authority to prescribe rules
The conference substitute is the same as the House amendment, ex-
to carry out all provisions of the Act.
cept that the conference substitute eliminates the role of the Comp-
troller General and substitutes the Commission.
Conference substitute
The conference substitute is the same as the House amendment, ex-
J. INFORMATION ON EXPENDITURES
cept that the conference substitute eliminates the role of the Comp-
Senate bill
troller General and substitutes the Commission.
Section 508 of the Act, as added by section 101 of the Senate bill,
provided that every candidate shall, from time to time, furnish to the
L. REVIEW OF REGULATIONS
Commission a detailed statement of (1) campaign expenditures in-
Senate bill
curred by him and his authorized committees before the date of the
No provision.
statement; and (2) campaign expenditures which he and his author-
House amendment
ized committees propose to incur on or after the date of the statement.
Section provided that the Commission shall prepare and
Section 9039 (c) of the Code, as added by section 408 (c) of the House
make available for public inspection summaries of statements received
amendment, provided that the Comptroller General, before prescrib-
ing any rule or regulation, shall transmit the proposed rule or regula-
under section 508(a).
tion, together with a detailed explanation and justification, to the
House amendment
Committee on Rules and Administration of the Senate and the Com-
No provision. Section 9036(a) of the Code, relating to initial cer-
mittee on House Administration of the House of Representatives. If
tifications, as added by the House amendment. which required im-
either committee does not disapprove the proposed rule or regula-
mediate certification of payment in full to candidates of all amounts
tion no later than 30 legislative days after receipt of the proposed rule
to which they are entitled, made unnecessary any provision compar-
or regulation, then the Comptroller General is authorized to prescribe
able to section 508 of the Act, as added by the Senate bill.
such rule or regulation. Section 9039 (c) prohibited the prescription of
any rule or regulation which is disapproved by either committee.
Conference substitute
The conference substitute omits the provisions of the Senate bill.
Section 9039 (c) also provided that the term "legislative days" does
not include any calendar day on which both Houses of the Congress
are not in session.
K. REPORTS TO THE CONGRESS
Senate bill
Conference substitute
Section 509 (a) of the Act, as added by section 101 of the Senate bill,
The conference substitute is the same as the House amendment,
required the Commission, after the close of each calendar year, to
with the following changes:
transmit a report to each House of the Congress setting forth (1)
1. The conference substitute eliminates the role of the Comptroller
campaign expenses of every candidate and authorized committee; (2)
General and substitutes the Commission.
the amount of payments certified by the Commission; and (3) the
2. The conference substitute provides that proposed rules and regu-
amount of repayments required from every candidate, and the reason
lations shall be transmitted to the Senate and to the House of Repre-
for any repayments.
122
123
of the Senate and the Committee on House Administration of the
sentatives, instead of to the Committee on Rules and Administration
trict of Columbia Circuit upon petition filed no later than 30 days after
the agency action involved.
House. This change conforms to the amendment to section 308 of the
Section 9041 (b) provided that chapter 7 of title 5, United States
Act made by section 205 (b) of the House amendment, which is
Code, relating to judicial review, shall apply to any agency action by
adopted by the conference substitute.
the Comptroller General. The term "agency action" was given the same
meaning given it by section 551 (13) of title 5, United States Code.
M. PARTICIPATION IN JUDICIAL PROCEEDINGS
Conference substitute
Senate bill
Section 510 of the Act, as added by section 101 of the Senate bill,
The conference substitute is the same as the House amendment,
except that the conference substitute eliminates the role of the Comp-
provided that the Commission may initiate civil proceedings in any
troller General and substitutes the Commission.
district court of the United States to seek recovery of amounts deter-
mined to be payable to the Secretary under title V of the Act.
O. CRIMINAL PENALTIES
Senate bill
House amendment
Section 9040(a) of the Code, as added by section 408(c) of the
Section 511 of the Act, as added by section 101 of the Senate bill,
House amendment, authorized the Comptroller General to appear in
provided that violation of any provision of title V of the Act shall be
and defend against any action brought under section 9040 of the Code.
punishable by a fine of not more than $50,000, or imprisonment for not
Section 9040 authorized the Comptroller General to bring ac-
more than 5 years, or both.
tions in the district courts of the United States for recovery of repay-
House amendment
ments required as a result of examinations and audits conducted by
Section 9042 of the Code, as added by section 408(c) of the
the Comptroller General.
Section 9040(c) authorized the Comptroller General to petition the
House amendment, provided that any person who incurs qualified
courts of the United States for injunctive relief to implement the pro-
campaign expenses in excess of the expenditure limitation for Presi-
visions of chapter 97 of the Code, as added by the House amendment.
dential primaries established by section 608(c) (1) of title 18, United
Section 9040 (d) authorized the Comptroller General to appeal any
States Code, relating to limitations on contributions and expenditures,
as added by the House amendment, shall be fined not more than
action in which he appears.
$25,000 or imprisoned not more than 5 years, or both. Section 9042
Conference substitute
also provided that any officer or member of a political committee who
The conference substitute is the same as the House amendment, ex-
knowingly consents to an expenditure which violates such limitation
cept that the conference substitute eliminates the role of the Comp-
shall be fined not more than $25,000 or imprisoned not more than 5
troller General and substitutes the Commission.
years, or both.
Section 9042(b) made it unlawful for any person who receives a
N. JUDICIAL REVIEW
payment from the matching payment account, or to whom a portion
of such payment is transferred, to use such payment for any purpose
Senate bill
Section 313 of the Act, as added by section 209 of the Senate bill,
other than to defray qualified campaign expenses or to repay loans or
provided for judicial review of the actions of the Commission under
restore funds which were used to defray qualified campaign expenses.
the provisions of the Act. Section (a) provided that an agency
Any person who violates this provision shall be fined not more than
action of the Commission shall be subject to review by the United
$10,000 or imprisoned not more than 5 years, or both.
States Court of Appeals for the District of Columbia upon petition
Section 9042(c) made it unlawful for any person to refuse to
furnish information which may be required under chapter 97 of the
by an interested person.
Section 313 (b) provided that the Commission, the national commit-
Code, as added by the House amendment, or to furnish false informa-
tee of any political party, and individuals eligible to vote in an election
tion. Any person who violates this provision shall be fined not more
for Federal office, may institute such actions as may be appropriate to
than $10,000 or imprisoned not more than 5 years, or both.
implement the provisions of the Act. Section 313 provided that
Section 9042 (d) made it unlawful for any person to give or accept
chapter 7 of title 5, United States Code, relating to judicial review,
any kickback or other illegal payment in connection with any quali-
shall apply to agency action by the Commission.
fied campaign expense of a candidate or authorized committee. Any
person who violates this provision shall be fined not more than
House amendment
$10,000 or imprisoned not more than 5 years, or both. Section 9042 (d)
Section 9041 (a) of the Code, as added by section of the House
also provided that any person who accepts any kickback or other illegal
amendment, provided that any agency action of the Comptroller Gen-
payment shall pay to the Secretary for deposit in the matching pay-
eral under chapter 97 of the Code, as added by the House amendment,
ment account an amount equal to 125 percent of the kickback or other
is subject to review by the United States Court of Appeals for the Dis-
illegal payment received.
124
125
House amendment
Conference substitute
The conference substitute is the same as the House amendment.
Section 410 (a) of the House amendment provided that the provi-
sions of this legislation (other than amendments to the Code) shall
P. RELATIONSHIP TO OTHER FEDERAL ELECTION LAWS
take effect 30 days after the date of the enactment of this legislation.
Section 410 (b) (1) of the House amendment provided that amend-
Senate bill
ments to the Code made by sections 403, 404, 405, 406, 408, and 409 of
Section 512 of the Act, as added by section 101 of the Senate bill,
the House amendment shall apply with respect to taxable years
provided that the Commission shall consult with the Secretary of the
beginning after December 31, 1973.
Senate, the Clerk of the House of Representatives, the Federal Com-
Section 410(b) (2) of the House amendment provided that the
munications Commission, and other Federal officers charged with ad-
amendment made by section 407 of the House amendment shall apply
ministering Federal election laws, in order to develop consistency and
with respect to taxable years beginning after December 31, 1971.
coordination in the administration of such laws. Section 512 also re-
Conference subsiitute
quired the Commission to use, whenever possible, the same or compa-
rable data as that used in the administration of such other Federal
The conference substitute provides for the following effective dates:
1. Section 104 of this legislation, relating to effect on State law, and
election laws.
the amendment made by section 301 of this legislation, relating to
House amendment
effect on State law, are effective on the date of the enactment of this
No provision.
legislation. Except as already noted with respect to State laws regulat-
ing political activities of State and local employees, all State and local
Conference substitute
laws relating to criminal offenses referred to in chapter 29 of title 18,
The conference substitute omits the provisions of the Senate bill.
United States Code, and to registration, reporting, and disclosure re-
quirements for Federal elections are preempted and superseded by
REVIEW OF REGULATIONS
Federal law immediately upon enactment of this legislation.
Senate bill
2. The amendment made by section 407 of this legislation, relating
No provision.
to tax returns by political committees, is made to apply with respect
to taxable years beginning after December 31, 1971. This provision
House amendment
Section 409 of the House amendment amended section 9009 of the
incorporates the provision of the House amendment.
Code (relating to reports to Congress; regulations) to establish a
3. The remaining provisions of this legislation are effective Janu-
procedure for the review of regulations by congressional committees
ary 1, 1975. Although the conference substitute makes the provisions
identical to the procedures established by the new section 9039 (c) of
relating to political convention financing and Presidential election
the Code, relating to review of regulations, as added by section 408 (c)
financing effective on January 1, 1975, moneys designated for deposit
in the Presidential Election Campaign Fund before January 1, 1975,
of the House amendment.
are appropriated for distribution to national committees and candi-
Conference substitute
dates in accordance with the provisions of this legislation.
The conference substitute is the same as the House amendment,
OTHER PROVISIONS
with the following changes:
1. The conference substitute eliminates the role of the Comptroller
DISCLOSURE OF FINANCIAL INTERESTS
General and substitutes the Commission.
2. The conference substitute provides that proposed rules and regu-
Senate bill
lations shall be transmitted to the Senate and to the House of Repre-
Title IV of the Senate bill established requirements for the dis-
sentatives, instead of to the Committee on Rules and Administration
closure of financial interests by certain Federal officers and employees.
of the Senate and the Committee on House Administration of the
Section 401 (a) of the Senate bill required that reports shall be
House. This change conforms to the amendment to section 308 of the
filed with the Commission by the following individuals: (1) any candi-
Act made by section 205 (b) of the House amendment, which is
date for Federal office who does not occupy any Federal office at the
adopted by the conference substitute.
time he becomes a candidate; (2) each Member of the Congress; (3)
each officer and employee of the United States, including any member
EFFECTIVE DATES
of the uniformed service, with an annual salary of at least $25,000;
Senate bill
(4) each officer and employee of the United States performing duties
No provision. Section 506 (d) of the Act, as added by section 101 of
of a type generally performed by an individual occupying grade
the Senate bill, provided that no payment shall be made under title
GS-16 of the General Schedule or any higher grade or position; (5)
V of the Act before January 1, 1976.
the President; and (6) the Vice President. Individuals in the first
category described above shall file reports within one month after be-
126
127
coming a candidate. Individuals in the other categories shall file
annual reports.
Service: or (3) the commissioned corps of the National Oceanic and
Atmospheric Administration.
Each report shall contain a statement of (1) taxes paid by the
individual, or by the individual and his spouse filing jointly, for the
9. The term "immediate family" was defined to mean the child, par-
preceding calendar year; (2) the amount and source of each item of
ent, grandparent, brother, or sister of an individual, and the spouses
of such persons.
income (other than gifts received from his spouse or his immediate
Section 401 (i) provided that the first report required under section
family) received by the individual which exceeds $100 in amount
or value, including honorariums and income in the form of goods or
401 shall be due 30 days after the date of the enactment of this legis-
lation, and shall be filed with the Comptroller General.
services; (3) the amount of each asset held by the individual worth
more than $1,000, and the amount of each liability of more than $1,000
House amendment
owed by the individual; (4) any securities transactions by the indi-
No provision.
vidual in amounts in excess of $1,000; (5) any commodities trans-
Conference substitute
actions by the individual in amounts in excess of $1,000; and (6) any
purchase or sale of real property (other than his personal residence)
The conference substitute omits the provisions of the Senate bill.
by the individual if the value of the property involved exceeds $1,000.
Section 401 (b) provided that annual reports shall be filed no later
AMENDMENT TO ADMINISTRATIVE PROCEDURE ACT
than May 15 of each year. Any person who, before such date, ceases
to hold an office or position requiring him to file a report, shall file
Senate bill
such report on the last day he holds such office or position, or within
Section 401 (h) of the Senate bill amended section 554 of title 5,
3 months after such day, as the Commission may prescribe.
United States Code, relating to adjudications, by inserting a new sub-
Section 401 (c) authorized the Commission to prescribe rules govern-
section (f). The new subsection (f) provided that written communi-
ing the form of reports and provided that the Commission may allow
cations stating the circumstances of oral communications made to an
the grouping of items of income and other related items.
agency with respect to an adjudication subject to section 554 by any
Section 401 (d) provided that any person who willfully fails to file
person who is not an officer or employee of such agency, shall be made
a report or who willfully and knowingly files a false report shall be
part of the public record of the adjudication involved. This rule
fined not more than $2,000, or imprisoned not more than 5 years, or
shall not apply to communications to any officer, employee, or agent
both.
of the agency who is performing the investigative or prosecutorial
Section 401 (e) provided that reports filed under section 401 shall
functions of such agency with respect to the adjudication involved.
be maintained by the Commission as public records.
House amendment
Section 401 (f) provided that an individual shall be considered to be
in one of the categories described above with respect to a given cal-
No provision.
endar year if he holds the office or position involved for more than 6
Conference substitute
months during such calendar year.
The conference substitute omits the provisions of the Senate bill.
Section 401 (g). contained the following definitions:
1. The term "income" was defined to mean gross income as defined
SIMULTANEOUS POLL CLOSING TIME
in section 61 of the Code, relating to the definition of gross income.
Senate bill
2. The term "security" was given the same meaning as given it by
Section 501 of the Senate bill provided that on every national elec-
section 2 of the Securities Act of 1933, relating to definitions.
tion day, beginning in 1976, the closing time of polling places in the
3. The term "commodity" was given the same meaning as given
several States shall be 11 p.m. in the eastern time zone, with simultane-
it by section 2 of the Commodity Exchange Act, relating to definitions.
ous closing times in each of the other time zones. Section 501 also
4. The term "transactions in securities or commodities" was defined
required that each polling place shall be open at least 12 hours.
to mean any acquisition, holding, or disposition involving any security
House amendment
or commodity.
5. The term "Member of Congress" was defined to mean a Senator,
No provision.
Representative, Resident Commissioner, or Delegate.
Conference substitute
6. The term "officer" was given the same meaning as given it by
The conference substitute omits the provisions of the Senate bill.
section 2104 of title 5, United States Code, relating to the definition
of officer.
FEDERAL ELECTION DAY
7. The term "employee" was given the same meaning as given it by
Senate bill
section 2105 of title 5, United States Code, relating to the definition
of employee.
Section 502 of the Senate bill amended section 6103 (a) of title 5,
8. The term "uniformed service" was defined to mean (1) any of
United States Code, relating to holidays, to make the national election
the Armed Forces; (2) the commissioned corps of the Public Health
day (beginning in 1976) a legal public holiday. The amendment desig-
128
nated the first Wednesday next after the first Monday in November
as the national election day.
House amendment
No provision.
Conference substitute
The conference substitute omits the provisions of the Senate bill.
REVIEW OF INCOME TAX RETURNS
Senate bill
Section 503 (a) of the Senate bill provided that on or before July 1
of each year the Comptroller General shall obtain from the Internal
Revenue Service the income tax returns of Members of the Congress,
and each officer or employee of the executive, judicial, or legislative
branch of the Federal Government, for the 5 previous years. The
Comptroller General was required to inspect and audit such returns.
Section 506(b) required the Comptroller General to report the re-
sults of each such inspection and audit to the Internal Revenue Serv-
ice, and to provide a copy of each such report to the individual
involved.
Section 503 (c) required the Internal Revenue Service to assist the
Comptroller General in carrying out section 503.
House amendment
No provision.
Conference substitute
The conference substitute omits the provisions of the Senate bill.
HOWARD W. CANNON,
CLAIBORNE PELL,
JOHN O. PASTORE,
RUSSELL LONG,
EDWARD KENNEDY,
DICK CLARK,
HUGH SCOTT,
WALLACE BENNETT,
ROBERT P. GRIFFIN,
TED STEVENS,
CHARLES McC. MATHIAS,
Managers on the part of the Senate.
WAYNE L. HAYS,
FRANK THOMPSON,
JOHN H. DENT,
JOHN BRADEMAS,
ED JONES,
ROBERT H. MOLLOHAN,
DAWSON MATHIS,
WILLIAM L. DICKINSON,
SAMUEL L. DEVINE,
JOHN H. WARE,
BILL FRENZEL,
Managers on the part of the House.
FEDERAL ELECTION Commission (P9.8)
Public Law 93-443
93rd Congress, S. 3044
October 15, 1974
An Act
88 STAT. 1263
To impose overall limitations on campaign expenditures and political contribu-
tions; to provide that each candidate for Federal office shall designate a prin-
cipal campaign committee; to provide for a single reporting responsibility with
respect to receipts and expenditures by certain political committees; to change
the times for the filing of reports regarding campaign expenditures and political
contributions; to provide for public financing of Presidential nominating con-
ventions and Presidential primary elections; and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may be
Federal Elec-
cited as the "Federal Election Campaign Act Amendments of 1974".
tion Campaign
Act Amendments
of 1974.
TITLE I-CRIMINAL CODE AMENDMENTS
2 USC 431
note.
LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES
SEC. 101. (a) Section 608 of title 18, United States Code, relating to
limitations on contributions and expenditures, is amended by striking
out subsections (b) and (c) and inserting indieu thereof the following:
'(b) (1) Except as otherwise provided by paragraphs (2) and (3),
no person shall make contributions to any candidate with respect to
any election for Federal office which, in the aggregate, exceed $1,000.
" (2) No political committee (other than a principal campaign com-
mittee) shall make contributions to any candidate with respect to any
election for Federal office which, in the aggregate, exceed $5,000.
GREATE FORD LIBRARY
Contributions by the national committee of a political party serving
as the principal campaign committee of a candidate for the office of
President of the United States shall not exceed the limitation imposed
by the preceding sentence with respect to any other candidate for
Federal office. For purposes of this paragraph, the term 'political
"Political
committee' means an organization registered as a political commit-
committee."
tee under section 303 of the Federal Election Campaign Act of 1971 for
Post, p. 1276.
a period of not less than 6 months which has received contributions
from more than 50 persons and, except for any State political party
organization, has made contributions to 5 or more candidates for
Federal office.
"(3) No individual shall make contributions aggregating more than
$25,000 in any calendar year. For purposes of this paragraph, any
contribution made in a year other than the calendar year in which
the election is held with respect to which such contribution was made,
is considered to be made during the calendar year in which such elec-
tion is held.
"(4) For purposes of this subsection-
"(A) contributions to a named candidate made to any political
committee authorized by such candidate, in writing, to accept
contributions on his behalf shall be considered to be contributions
made to such candidate; and
'(B) contributions made to or for the benefit of any candidate
nominated by a political party for election to the office of Vice
President of the United States shall be considered to be contribu-
tions made to or for the benefit of the candidate of such party for
election to the office of President of the United States.
"(5) The limitations imposed by paragraphs (1) and (2) of this
subsection shall apply separately with respect to each election, except
that all elections held in any calendar year for the office of President
of the United States (except a general election for such office) shall
be considered to be one election.
41-159 74
Pub. Law 93-443
- 2 -
October 15, 1974
October 15, 1974
- 3 -
Pub. Law 93-443
88 STAT. 1265
"(6) For purposes of the limitations imposed by this section, all
States shall be attributed to such candidate's expenditure limitation in
contributions made by a person, either directly or indirectly, on behalf
each such State, based on the voting age population in such State
of a particular candidate, including contributions which are in any
which can reasonably be expected to be influenced by such expenditure.
way earmarked or otherwise directed through an intermediary or con-
(d) (1) At the beginning of each calendar year (commencing in
duit to such candidate, shall be treated as contributions from such
1976), as there become available necessary data from the Bureau of
person to such candidate. The intermediary or conduit shall report
Labor Statistics of the Department of Labor, the Secretary of Labor
the original source and the intended recipient of such contribution to
shall certify to the Commission and publish in the Federal Register
Publication in
the Commission and to the intended recipient.
the per centum difference between the price index for the 12 months
Federal Reg-
"(c) (1) No candidate shall make expenditures in excess of-
preceding the beginning of such calendar year and the price index for
ister.
(A) $10,000,000, in the case of a candidate for nomination for
the base period. Each limitation established by subsection (c) and
election to the office of President of the United States, except that
subsection (f) shall be increased by such per centum difference. Each
the aggregate of expenditures under this subparagraph in any
amount SO increased shall be the amount in effect for such calendar
one State shall not exceed twice the expenditure limitation appli-
year.
cable in such State to a candidate for nomination for election to
'(2) For purposes of paragraph (1)-
the office of Senator, Delegate, or Resident Commissioner, as the
(A) the term 'price index' means the average over a calendar "Price index."
case may be;
year of the Consumer Price Index (all items-United States city
(B) $20,000,000, in the case of a candidate for election to the
average) published monthly by the Bureau of Labor Statistics;
office of President of the United States;
and
'(C) in the case of any campaign for nomination for election by
'(B) the term 'base period' means the calendar year 1974.
"Base period."
a candidate for the office of Senator or by a candidate for the office
(e) (1) No person may make any expenditure (other than an
of Representative from a State which is entitled to only one Rep-
expenditure made by or on behalf of a candidate within the meaning
resentative, the greater of-
of subsection (c) (2) (B)) relative to a clearly identified candidate dur-
"(i) 8 cents multiplied by the voting age population of the
ing a calendar year which, when added to all other expenditures made
State (as certified under subsection (g)) ; or
by such person during the year advocating the election or defeat of
(ii) $100,000;
such candidate, exceeds $1,000.
"(D) in the case of any campaign for election by a candidate
"(2) For purposes of paragraph (1)-
for the office of Senator or by a candidate for the office of Repre-
(A) 'clearly identified' means—
"Clearly
sentative from a State which is entitled to only one Representative,
(i) the candidate's name appears;
identified."
the greater of-
" (ii) a photograph or drawing of the candidate appears; or
(i) 12 cents multiplied by the voting age population of
(iii) the identity of the candidate is apparent by unam-
the State (as certified under subsection (g)) ; or
biguous reference; and
(ii) $150,000;
(B) 'expenditure' does not include any payment made or
'(E) $70,000, in the case of any campaign for nomination for
incurred by a corporation or a labor organization which, under
election, or for election, by a candidate for the office of Representa-
the provisions of the last paragraph of section 610, would not
tive in any other State, Delegate from the District of Columbia,
constitute an expenditure by such corporation or labor orga-
or Resident Commissioner; or
nization.
"(F) $15,000, in the case of any campaign for nomination for
"(f) (1) Notwithstanding any other provision of law with respect to
election, or for election, by a candidate for the office of Delegate
limitations on expenditures or limitations on contributions, the
from Guam or the Virgin Islands.
national committee of a political party and a State committee of a
(2) For purposes of this subsection-
political party, including any subordinate committee of a State com-
(A) expenditures made by or on behalf of any candidate nom-
mittee, may make expenditures in connection with the general election
inated by a political party for election to the office of Vice Presi-
campaign of candidates for Federal office, subject to the limitations
dent of the United States shall be considered to be expenditures
contained in paragraphs (2) and (3) of this subsection.
made by or on behalf of the candidate of such party for election to
(2) The national committee of a political party may not make any
the office of President of the United States; and
expenditure in connection with the general election campaign of any
(B) an expenditure is made on behalf of a candidate, includ-
candidate for President of the United States who is affiliated with such
ing a Vice Presidential candidate, if it is made by--
party which exceeds an amount equal to 2 cents multiplied by the vot-
"(i) an authorized committee or any other agent of the
ing age population of the United States (as certified under subsection
candidate for the purposes of making any expenditure; or
(g)) Any expenditure under this paragraph shall be in addition to
"(ii) any person authorized or requested by the candidate,
any expenditure by a national committee of a political party serving
an authorized committee of the candidate, or an agent of the
as the principal campaign committee of a candidate for the office of
candidate, to make the expenditure.
President of the United States.
(3) The limitations imposed by subparagraphs (C), (D), (E), and
(3) The national committee of a political party, or a State com-
(F) of paragraph (1) of this subsection shall apply separately with
mittee of a political party, including any subordinate committee of a
respect to each election.
State committee, may not make any expenditure in connection with
(4) The Commission shall prescribe rules under which any expend-
the general election campaign of a candidate for Federal office in a
iture by a candidate for Presidential nomination for use in 2 or more
State who is affiliated with such party which exceeds—
Pub. Law 93-443
- 4 -
October 15, 1974
October 15, 1974
- 5 -
Pub. Law 93-443
88 STAT. 1267
"(A) in the case of a candidate for election to the office of
personal funds of his immediate family, any debt or obligation which
Senator, or of Representative from a State which is entitled to
is outstanding on the date of the enactment of this Act and which was
only one Representative, the greater of-
incurred by him or on his behalf by any political committee in connec-
"(i) 2 cents multiplied by the voting age population of the
tion with any campaign ending before the close of December 31, 1972,
State (as certified under subsection (g)) ; or
for election to Federal office.
(ii) $20,000; and
(2) For purposes of this subsection-
Definitions.
"(B) in the case of a candidate for election to the office of
(A) the terms "election", "Federal office", and "political com-
Representative, Delegate, or Resident Commissioner in any other
mittee" have the meanings given them by section 591 of title 18,
State, $10,000.
United States Code; and
Post, p. 1269.
"(g) During the first week of January 1975, and every subsequent
(B) the term "immediate family" has the meaning given it by
year, the Secretary of Commerce shall certify to the Commission and
section 608 (a) (2) of title 18, United States Code.
publish in the Federal Register an estimate of the voting age popu-
(d) (1) The first paragraph of section 613 of title 18, United States
lation of the United States, of each State. and of each congressional
Code, relating to contributions by certain foreign agents, is amended--
on
district as of the first day of July next preceding the date of certifica-
(A) by striking out "an agent of a foreign principal" and
tion. The term 'voting age population' means resident population, 18
inserting in lieu thereof "a foreign national"; and
years of age or older.
(B) by striking out either for or on behalf of such foreign
"(h) No candidate or political committee shall knowingly accept
principal or otherwise in his capacity as agent of such foreign
any contribution or make any expenditure in violation of the pro-
principal,".
visions of this section. No officer or employee of a political committee
(2) The second paragraph of such section 613 is amended by strik-
shall knowingly accept a contribution made for the benefit or use of a
ing out "agent of a foreign principal or from such foreign principal"
candidate, or knowingly make any expenditure on behalf of a can-
and inserting in lieu thereof "foreign national".
didate, in violation of any limitation imposed on contributions and
(3) The fourth paragraph of such section 613 is amended to read
"Foreign
expenditures under this section.
as follows:
national."
'(i) Any person who violates any provision of this section shall
"As used in this section, the term 'foreign national' means—
be fined not more than $25,000 or imprisoned not more than one year,
"(1) a foreign principal, as such term is defined by section
or both.".
1(b) of the Foreign Agents Registration Act of 1938 (22 U.S.C.
(b) (1) Section 608(a) (1) of title 18, United States Code, relating
1(b)), except that the term 'foreign national' shall not include
to limitations on contributions and expenditures, is amended to read
any individual who is a citizen of the United States; or
as follows:
(2) an individual who is not a citizen of the United States
"(a) (1) No candidate may make expenditures from his personal
and who is not lawfully admitted for permanent residence, as
funds, or the personal funds of his immediate famil y, in connection
defined by section 101 (a) (20) of the Immigration and Nation-
with his campaigns during any calendar year for nomination for elec-
ality Act (8 U.S.C. 1101 (a) (20)).'
tion, or for election, to Federal office in excess of, in the aggregate-
(4) (A) The heading of such section 613 is amended by striking out
"(A) $50,000, in the case of a candidate for the office of Presi-
"agents of foreign principals" and inserting in lieu thereof "foreign
dent or Vice President of the United States;
nationals".
"(B) $35,000, in the case of a candidate for the office of Senator
(B) The table of sections for chapter 29 of title 18, United States
or for the office of Representative from a State which is entitled
Code, is amended by striking out the item relating to section 613 and
to only one Representative; or
inserting in lieu thereof the following:
"(C) $25,000, in the case of a candidate for the office of Repre-
"613. Contributions by foreign nationals.".
sentative, or Delegate or Resident Commissioner, in any other
(e) (1) The second paragraph of section 610 of title 18, United
State.
States Code, relating to penalties for violating prohibitions against
For purposes of this paragraph, any expenditure made in a year other
contributions or expenditures by national banks, corporations, or labor
than the calendar year in which the election is held with respect to
organizations, is amended-
which such expenditure was made, is considered to be made during the
(A) by striking out "$5,000" and inserting in lieu thereof
calendar year in which such election is held.".
"$25,000"; and
(2) Such section (a) is amended by adding at the end thereof
(B) by striking out "$10,000" and inserting in lieu thereof
the following new paragraphs:
"$50,000".
"(3) No candidate or his immediate family may make loans or
(2) Section 611 of title 18, United States Code (as amended by sec-
advances from their personal funds in connection with his campaign
tion 103 of this Act), relating to contributions by firms or individuals
for nomination for election, or for election, to Federal office unless
contracting with the United States, is amended in the first paragraph
such loan or advance is evidenced by a written instrument fully dis-
thereof by striking out "$5,000" and inserting in lieu thereof "$25,000".
closing the terms and conditions of such loan or advance.
(3) The third paragraph of section 613 of title 18, United States
"(4) For purposes of this subsection, any such loan or advance shall
Code (as amended by subsection (d) of this section), relating to con-
be included in computing the total amount of such expenditures only
tributions by foreign nationals, is amended by striking out "$5,000"
to the extent of the balance of such loan or advance outstanding and
and inserting in lieu thereof "$25,000".
unpaid.".
(f) (1) Chapter 29 of title 18, United States Code, relating to elec-
(c) (1) Notwithstanding section (a) (1) of title 18, United States
tions and political activities, is amended by adding at the end thereof
Code, relating to limitations on expenditures from personal funds, any
the following new sections:
individual may satisfy or discharge, out of his personal funds or the
Pub. Law 93-443
- 6 -
October 15, 1974
October 15, 1974
- 7 -
Pub. Law 93-443
68
88 STAT. 1269
614. Prohibition of contributions in name of another
CHANGES IN CRIMINAL CODE DEFINITIONS
"(a) No person shall make a contribution in the name of another
person or knowingly permit his name to be used to effect such a con-
SEC. 102. (a) Paragraph (a) of section 591 of title 18, United States Definitions.
tribution, and no person shall knowingly accept a contribution made
Code, relating to the definition of election, is amended-
by one person in the name of another person.
(1) by inserting "or" before "(4)"; and
"(b) Any person who violates this section shall be fined not more
(2) by striking out and (5) the election of delegates to a con-
than $25,000 or imprisoned not more than one year, or both.
stitutional convention for proposing amendments to the Constitu-
tion of the United States".
USC prec. title
"§615. Limitation on contributions of currency
(b) Paragraph (2) of such section 591, relating to the definition of 1.
"(a) No person shall make contributions of currency of the United
political committee, is amended to read as follows:
States or currency of any foreign country to or for the benefit of any
"(d) 'political committee' means any committee, club, associa-
candidate which, in the aggregate, exceed $100, with respect to any
tion, or other group of persons which receives contributions or
campaign of such candidate for nomination for election, or for elec-
makes expenditures during a calendar year in an aggregate
tion, to Federal office.
amount exceeding $1,000
"(b) Any person who violates this section shall be fined not more
(c) Paragraph (e) of such section 591, relating to the definition of
than $25,000 or imprisoned not more than one year, or both.
contribution, is amended to read as follows:
"§ 616. Acceptance of excessive honorariums
"(e) 'contribution'-
"Whoever, while an elected or appointed officer or employee of any
"(1) means a gift, subscription, loan, advance, or deposit
branch of the Federal Government-
of money or anything of value (except a loan of money by a
"(1) accepts any honorarium of more than $1,000 (excluding
national or State bank made in accordance with the appli-
amounts accepted for actual travel and subsistence expenses) for
cable banking laws and regulations and in the ordinary course
of business, which shall be considered a loan by each endorser
any appearance, speech, or article; or
(2) accepts honorariums (not prohibited by paragraph (1) of
or guarantor, in that proportion of the unpaid balance thereof
this section) aggregating more than $15,000 in any calendar year;
that each endorser or guarantor bears to the total number of
shall be fined not less than $1,000 nor more than $5,000.
endorsers or guarantors), made for the purpose of influencing
the nomination for election, or election, of any person to Fed-
"§ 617. Fraudulent misrepresentation of campaign authority
eral office or for the purpose of influencing the results of a
"Whoever, being a candidate for Federal office or an employee or
primary held for the selection of delegates to a national nomi-
agent of such a candidate-
nating convention of a political party or for the expression of
"(1) fraudulently misrepresents himself or any committee or
a preference for the nomination of persons for election to the
organization under his control as speaking or writing or other-
office of President of the United States;
wise acting for or on behalf of any other candidate or political
"(2) means a contract, promise, or agreement, express or
party or employee or agent thereof on a matter which is damag-
implied, whether or not legally enforceable, to make a con-
ing to such other candidate or political party or employee or agent
tribution for such purposes;
thereof; or
"(3) means funds received by a political committee which
(2) willfully and knowingly participates in or conspires to
are transferred to such committee from another political com-
participate in any plan, scheme, or design to violate paragraph
mittee or other source;
(1);
"(4) means the payment, by any person other than a can-
shall, for each such offense, be fined not more than $25,000 or impris-
didate or a political committee, of compensation for the per-
oned not more than one year, or both.".
sonal services of another person which are rendered to such
(2) Section 591 of title 18, United States Code, relating to defini-
candidate or political committee without charge for any such
tions, is amended by striking out the matter preceding paragraph (a)
purpose; but
and inserting in lieu thereof the following:
"(5) does not include-
"Except as otherwise specifically provided, when used in this sec-
'(A) the value of services provided without compensa-
tion and in sections 597, 599, 600, 602, 608, 610, 611, 614, 615, and 617
tion by individuals who volunteer a portion or all of their
of this title-".
time on behalf of a candidate or political committee;
(3) The table of sections for chapter 29 of title 18, United States
"(B) the use of real or personal property and the cost
Code, is amended by adding at the end thereof the following new
of invitations, food, and beverages, voluntarily provided
items:
by an individual to a candidate in rendering voluntary
"614. Prohibition of contributions in name of another.
personal services on the individual's residential premises
"615. Limitation on contributions of currency.
for candidate-related activities;
"616. Acceptance of excessive honorariums.
(C) the sale of any food or beverage by a vendor for
"617. Fraudulent misrepresentation of campaign authority.".
use in a candidate's campaign at a charge less than the
(4) Title III of the Federal Election Campaign Act of 1971 is
normal comparable charge, if such charge for use in a
amended by striking out section 310, relating to prohibition of con-
candidate's campaign is at least equal to the cost of such
tributions in the name of another.
food or beverage to the vendor;
"(D) any unreimbursed payment for travel expenses
made by an individual who on his own behalf volunteers
his personal services to a candidate, or
Pub. Law 93-443
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October 15, 1974
October 15, 1974
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Pub. Law 93-443
270
88 STAT. 1271
'(E) the payment by a State or local committee of a
"(F) any communication by any person which is not
political party of the costs of preparation, display, or
made for the purpose of influencing the nomination for
mailing or other distribution incurred by such committee
election, or election, of any person to Federal office;
with respect to a printed slate card or sample ballot,
"(G) the payment by a State or local committee of a
or other printed listing, of 3 or more candidates for
political party of the costs of preparation, display, or
any public office for which an election is held in the
mailing or other distribution incurred by such committee
State in which such committee is organized, except that
with respect to a printed slate card or sample ballot, or
this clause shall not apply in the case of costs incurred by
other printed listing, of 3 or more candidates for any
such committee with respect to a display of any such list-
public office for which an election is held in the State in
ing made on broadcasting stations, or in newspapers,
which such committee is organized, except that this clause
magazines or other similar types of general public
shall not apply in the case ofcosts incurred by such com-
political advertising;
mittee with respect to a display of any such listing made
to the extent that the cumulative value of activities by any
on broadcasting stations, or in newspapers, magazines
person on behalf of any candidate under each of clauses (B),
or other similar types of general public political
(C), and (D) does not exceed $500 with respect to any
advertising;
election;"
'(H) any costs incurred by a candidate in connection
(d) Paragraph (f) of such section 591, relating to the definition
with the solicitation of contributions by such candidate,
of expenditure, is amended to read as follows:
except that this clause shall not apply with respect to
"(f) 'expenditure'-
costs incurred by a candidate in excess of an amount
"(1) means a purchase, payment, distribution, loan,
equal to 20 percent of the expenditure limitation
advance, deposit, or gift of money or anything of value
applicable to such candidate under section 608(c) of this
(except a loan of money by a national or State bank made in
title; or
Ante, p. 1264.
accordance with the applicable banking laws and regulations
"(I) any costs incurred by a political committee (as
and in the ordinary course of business), made for the purpose
such term is defined by section 608(b) (2) of this title) Ante, P. 1263.
of influencing the nomination for election, or election, of any
with respect to the solicitation of contributions to such
person to Federal office or for the purpose of influencing the
political committee or to any general political fund con-
results of a primary held for the selection of delegates to a
trolled by such political committee, except that this clause
national nominating convention of a political party or for
shall not apply to exempt costs incurred with respect to
the expression of a preference for the nomination of persons
the solicitation of contributions to any such political com-
for election to the office of President of the United States;
mittee made through broadcasting stations, newspapers,
"(2) means a contract, promise, or agreement, express or
magazines, outdoor advertising facilities, and other simi-
implied, whether or not legally enforceable, to make any
lar types of general public political advertising;
expenditure; and
to the extent that the cumulative value of activities by any
(3) means the transfer of funds by a political committee
individual on behalf of any candidate under each of clauses
to another political committee; but
(D) or (E) does not exceed $500 with respect to any
"(4) does not include-
election;
"(A) any news story, commentary, or editorial dis-
(e) Section 591 of title 18, United States Code, relating to defini- Definitions.
tributed through the facilities of any broadcasting
tions, is amended-
station, newspaper, magazine, or other periodical publi-
(1) by striking out "and" at the end of paragraph (g);
cation, unless such facilities are owned or controlled by
(2) by striking out the period at the end of paragraph (h)
any political party, political committee, or candidate;
and inserting in lieu thereof a semicolon; and
(B) nonpartisan activity designed to encourage indi-
(3) by adding at the end thereof the following new paragraphs:
viduals to register to vote or to vote;
(i) 'political party' means any association, committee, or orga-
"(C) any communication by any membership orga-
nization which nominates a candidate for election to any Federal
nization or corporation to its members or stockholders, if
office whose name appears on the election ballot as the candidate
such membership organization or corporation is not
of such association, committee, or organization;
organized primarily for the purpose of influencing the
"(j) 'State committee' means the organization which, by virtue
nomination for election, or election, of any person to
of the bylaws of a political party, is responsible for the day-to-day
Federal office;
operation of such political party at the State level, as determined
"(D) the use of real or personal property and the cost
by the Federal Election Commission;
of invitations, food, and beverages, voluntarily provided
(k) 'national committee' means the organization which, by
by an individual to a candidate in rendering voluntary
virtue of the bylaws of the political party, is responsible for the
personal services on the individual's residential premises
day-to-day operation of such political party at the national level,
for candidate-related activities;
as determined by the Federal Election Commission established
"(E) any unreimbursed payment for travel expenses
made by an individual who on his own behalf volunteers
under section 310(a) of the Federal Election Campaign Act of
1971; and
Post, P. 1280.
his personal services to a candidate;
"(1) 'principal campaign committee' means the principal cam-
paign committee designated by a candidate under section 302
(f) (1) of the Federal Election Campaign Act of 1971.".
Post, p. 1275.
Pub. Law 93-443
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October 15, 1974
October 15, 1974
- 9 -
Pub. Law 93-443
88 STAT. 1270
88 STAT. 1271
"(E) the payment by a State or local committee of a
"(F) any communication by any person which is not
political party of the costs of preparation, display, or
made for the purpose of influencing the nomination for
mailing or other distribution incurred by such committee
election, or election, of any person to Federal office;
with respect to a printed slate card or sample ballot,
"(G) the payment by a State or local committee of a
or other printed listing, of 3 or more candidates for
political party of the costs of preparation, display, or
any public office for which an election is held in the
mailing or other distribution incurred by such committee
State in which such committee is organized, except that
with respect to a printed slate card or sample ballot, or
this clause shall not apply in the case of costs incurred by
other printed listing, of 3 or more candidates for any
such committee with respect to a display of any such list-
public office for which an election is held in the State in
ing made on broadcasting stations, or in newspapers,
which such committee is organized, except that this clause
magazines or other similar types of general public
shall not apply in the case of costs incurred by such com-
political advertising;
mittee with respect to a display of any such listing made
to the extent that the cumulative value of activities by any
on broadcasting stations, or in newspapers, magazines
person on behalf of any candidate under each of clauses (B),
or other similar types of general public political
(C), and (D) does not exceed $500 with respect to any
advertising;
election;
'(H) any costs incurred by a candidate in connection
Definitions.
(d) Paragraph (f) of such section 591, relating to the definition
with the solicitation of contributions by such candidate,
18
USC
591. of expenditure, is amended to read as follows:
except that this clause shall not apply with respect to
"(f) 'expenditure'-
costs incurred by a candidate in excess of an amount
"(1) means a purchase, payment, distribution, loan,
equal to 20 percent of the expenditure limitation
advance, deposit, or gift of money or anything of value
applicable to such candidate under section 608(c) of this
(except a loan of money by a national or State bank made in
title; or
Ante, p. 1264.
accordance with the applicable banking laws and regulations
"(I) any costs incurred by a political committee (as
and in the ordinary course of business), made for the purpose
such term is defined by section 608(b) (2) of this title) Ante, P. 1263.
of influencing the nomination for election, or election, of any
with respect to the solicitation of contributions to such
person to Federal office or for the purpose of influencing the
political committee or to any general political fund con-
results of a primary held for the selection of delegates to a
trolled by such political committee, except that this clause
national nominating convention of a political party or for
shall not apply to exempt costs incurred with respect to
the expression of a preference for the nomination of persons
the solicitation of contributions to any such political com-
for election to the office of President of the United States;
mittee made through broadcasting stations, newspapers,
(2) means a contract, promise, or agreement, express or
magazines, outdoor advertising facilities, and other simi-
implied, whether or not legally enforceable, to make any
lar types of general public political advertising;
expenditure; and
to the extent that the cumulative value of activities by any
(3) means the transfer of funds by a political committee
individual on behalf of any candidate under each of clauses
to another political committee; but
(D) or (E) does not exceed $500 with respect to any
"(4) does not include-
election;".
(A) any news story, commentary, or editorial dis-
(e) Section 591 of title 18, United States Code, relating to defini- Definitions.
tributed through the facilities of any broadcasting
tions, is amended-
station, newspaper, magazine, or other periodical publi-
(1) by striking out "and" at the end of paragraph (g)
cation, unless such facilities are owned or controlled by
(2) by striking out the period at the end of paragraph (h)
any political party, political committee, or candidate;
and inserting in lieu thereof a semicolon; and
(B) nonpartisan activity designed to encourage indi-
(3) by adding at the end thereof the following new paragraphs:
viduals to register to vote or to vote;
(i) 'political party' means any association, committee, or orga-
"(C) any communication by any membership orga-
nization which nominates a candidate for election to any Federal
nization or corporation to its members or stockholders, if
office whose name appears on the election ballot as the candidate
such membership organization or corporation is not
of such association, committee, or organization;
organized primarily for the purpose of influencing the
"(j) 'State committee' means the organization which, by virtue
nomination for election, or election, of any person to
of the bylaws of a political party, is responsible for the day-to-day
Federal office;
operation of such political party at the State level, as determined
'(D) the use of real or personal property and the cost
by the Federal Election Commission;
of invitations, food, and beverages, voluntarily provided
"(k) 'national committee' means the organization which, by
by an individual to a candidate in rendering voluntary
virtue of the bylaws of the political party, is responsible for the
personal services on the individual's residential premises
day-to-day operation of such political party at the national level,
for candidate-related activities;
as determined by the Federal Election Commission established
"(E) any unreimbursed payment for travel expenses
made by an individual who on his own behalf volunteers
under section 310(a) of the Federal Election Campaign Act of
1971; and
Post, p. 1280.
his personal services to a candidate;
"(1) 'principal campaign committee' means the principal cam-
paign committee designated by a candidate under section 302
(f) (1) of the Federal Election Campaign Act of 1971.".
Post, p. 1275.
Pub. Law 93-443
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October 15, 1974
October 15, 1974
- 11 -
Pub. Law 93-443
88 STAT. 1272
88 STAT. 1273
POLITICAL FUNDS OF CORPORATIONS OR LABOR ORGANIZATIONS
"(3) means funds received by a political committee which
are transferred to such committee from another political
SEC. 103. Section 611 of title 18, United States Code, relating to
committee or other source;
contributions by firms or individuals contracting with the United
"(4) means the payment, by any person other than a candi-
States, is amended by adding at the end thereof the following new
date or a political committee, of compensation for the per-
paragraphs:
sonal services of another person which are rendered to such
"This section does not prohibit or make unlawful the establishment
candidate or political committee without charge for any such
or administration of, or the solicitation of contributions to, any sepa-
purpose; but
rate segregated fund by any corporation or labor organization for the
"(5) does not include-
purpose of influencing the nomination for election, or election, of any
(A) the value of services provided without compen-
person to Federal office, unless the provisions of section 610 of this title
sation by individuals who volunteer a portion or all of
prohibit or make unlawful the establishment or administration of, or
their time on behalf of a candidate or political committee;
the solicitation of contributions to, such fund.
"(B) the use of real or personal property and the cost
"For purposes of this section, the term 'labor organization' has the
of invitations, food, and beverages, voluntarily provided
meaning given it by section 610 of this title.".
by an individual to a candidate in rendering voluntary
personal services on the individual's residential premises
EFFECT ON STATE LAW
for candidate-related activities;
18 USC 591
SEC. 104. (a) The provisions of chapter 29 of title 18, United States
"(C) the sale of any food or beverage by a vendor for
use in a candidate's campaign at a charge less than the
note.
Code, relating to elections and political activities, supersede and pre-
normal comparable charge, if such charge for use in a
empt any provision of State law with respect to election to Federal
candidate's campaign is at least equal to the cost of such
office.
(b) For purposes of this section, the terms "election", "Federal
food or beverage to the vendor;
"(D) any unreimbursed payment for travel expenses
office", and "State" have the meanings given them by section 591 of
made by an individual who on his own behalf volunteers
title 18, United States Code.
his personal services to a candidate;
"(E) the payment by a State or local committee of a
TITLE II-AMENDMENTS TO FEDERAL ELECTION
political party of the costs of preparation, display, or
CAMPAIGN ACT OF 1971
mailing or other distribution incurred by such committee
with respect to a printed slate card or sample ballot, or
CHANGES IN DEFINITIONS FOR REPORTING AND DISCLOSURE
other printed listing, of 3 or more candidates for any pub-
lic office for which an election is held in the State in
SEC. 201. (a) Section 301 of the Federal Election Campaign Act of
which such committee is organized, except that this clause
2 USC 431.
1971, relating to definitions, is amended-
shall not apply in the case of costs incurred by such
(1) by inserting "and title IV of this Act" after "title";
committee with respect to a display of any such listing
(2) by striking out ", and (5) the election of delegates to a
made on broadcasting stations, or in newspapers, maga-
constitutional convention for proposing amendments to the Con-
zines or other similar types of general public political
stitution of the United States" in paragraph (a), and by inserting
advertising; or
"and" before (4)' in such paragraph;
"(F) any payment made or obligation incurred by a
(3) by amending paragraph (d) to read as follows:
corporation or a labor organization which, under the
" (d) "political committee' means any committee, club, associa-
provisions of the last paragraph of section 610 of title 18,
tion, or other group of persons which receives contributions or
United States Code, would not constitute an expenditure
makes expenditures during a calendar year in an aggregate
by such corporation or labor organization;
amount exceeding $1,000;";
to the extent that the cumulative value of activities by any
(4) by amending paragraph (e) to read as follows:
individual on behalf of any candidate under each of clauses
(e) 'contribution'-
(B), (C), and (D) does not exceed $500 with respect to any
"(1) means a gift, subscription, loan, advance, or deposit of
election;
money or anything of value made for the purpose of-
(5) by striking out paragraph (f) and inserting in lieu thereof 2 USC 431.
"(A) influencing the nomination for election, or elec-
the following:
tion, of any person to Federal office or for the purpose of
"(f) 'expenditure'-
influencing the results of a primary held for the selection
(1) means a purchase, payment, distribution, loan,
of delegates to a national nominating convention of a
advance, deposit, or gift of money or anything of value, made
political party, or
for the purpose of-
'(B) influencing the result of an election held for the
(A) influencing the nomination for election, or the
expression of a preference for the nomination of persons
election, of any person to Federal office, or to the office
for election to the office of President of the United States;
of presidential and vice-presidential elector; or
"(2) means a contract, promise, or agreement, expressed or
(B) influencing the results of a primary election held
implied, whether or not legally enforceable, to make a con-
for the selection of delegates to a national nominating
tribution for such purposes;
convention of a political party or for the expression of
Pub. Law 93-443
- 12 -
October 15, 1974
October 15, 1974
- 13 -
Pub. Law 93-443
88 STAT. 1274
88 STAT. 1275
a preference for the nomination of persons for election
"(j) 'identification' means—
Definitions.
to the office of President of the United States;
"(1) in the case of an individual, his full name and the
"(2) means a contract, promise, or agreement, express or
full address of his principal place of residence; and
implied, whether or not legally enforceable, to make any
"(2) in the case of any other person, the full name and
expenditure;
address of such person;
(3) means the transfer of funds by a political committee
" (k) 'national committee' means the organization which, by
to another political committee; but
virtue of the bylaws of a political party, is responsible for the
"(4) does not include-
day-to-day operation of such political party at the national level,
(A) any news story, commentary, or editorial distrib-
as determined by the Commission;
uted through the facilities of any broadcasting station,
"(1) State committee' means the organization which, by virtue
newspaper, magazine, or other periodical publication,
of the bylaws of a political party, is responsible for the day-to-day
unless such facilities are owned or controlled by any
operation of such political party at the State level, as determined
political party, political committee, or candidate;
by the Commission;
(B) nonpartisan activity designed to encourage indi-
(m) "political party' means an association, committee, or
viduals to register to vote or to vote;
organization which nominates a candidate for election to any Fed-
"(C) any communication by any membership organi-
eral office, whose name appears on the election ballot as the can-
zation or corporation to its members or stockholders, if
didate of such association, committee, or organization; and
such membership organization or corporation is not
"(n) 'principal campaign committee' means the principal cam-
organized primarily for the purpose of influencing the
paign committee designated by a candidate under section 302
nomination for election, or election, of any person to
(f) (1).".
Federal office;
(b) (1) Section 401 of the Federal Election Campaign Act of 1971, Infra. 2 USC
451.
(D) the use of real or personal property and the cost
relating to extension of credit by regulated industries, is amended by
of invitations, food, and beverages, voluntarily provided
striking out (as such term is defined in section 301 (c) of the Federal
by an individual to a candidate in rendering voluntary
Election Campaign Act of 1971)"
2 USC 431.
personal services on the individual's residential premises
(2) Section 402 of the Federal Election Campaign Act of 1971, 2 USC 452.
for candidate-related activities if the cumulative value of
relating to prohibition against use of certain Federal funds for elec-
such activities by such individual on behalf of any can-
tion activities, is amended by striking out the last sentence.
didate do not exceed $500 with respect to any election;
"(E) any unreimbursed payment for travel expenses
ORGANIZATION OF POLITICAL COMMITTEES; PRINCIPAL CAMPAIGN
made by an individual who on his own behalf volunteers
COMMITTEE
his personal services to a candidate if the cumulative
amount for such individual incurred with respect to
SEC. 202. (a) (1) Section 302(b) of the Federal Election Campaign
such candidate does not exceed $500 with respect to any
Act of 1971, relating to reports of contributions in excess of $10, is2 USC 432.
election;
amended by striking out ", the name and address (occupation and
"(F) any communication by any person which is not
principal place of business, if any)" and inserting in lieu thereof "of
made for the purpose of influencing the nomination for
the contribution and the identification".
election, or election, of any person to Federal office; or
(2) Section 302(c) of such Act, relating to detailed accounts, is
'(G) the payment by a State or local committee of a
amended by striking out "full name and mailing address (occupation
political party of the costs of preparation, display, or
and the principal place of business, if any)" in paragraphs (2) and
mailing or other distribution incurred by such commit-
(4) and inserting in lieu thereof in each such paragraph "identifi-
tee with respect to a printed slate card or sample ballot,
cation".
or other printed listing, of 3 or more candidates for any
(3) Section 302(c) of such Act is further amended by striking out
public office for which an election is held in the State in
the semicolon at the end of paragraph (2) and inserting in lieu thereof
which such committee is organized, except that this clause
"and, if a person's contributions aggregate more than $100, the account
shall not apply in the case of costs incurred by such
shall include occupation, and the principal place of business (if any)
committee with respect to a display of any such listing
(b) Section 302(f) of such Act is amended to read as follows:
made on broadcasting stations, or in newspapers, maga-
(f) (1) Each individual who is a candidate for Federal office (other
zines or other similar types of general public political
than the office of Vice President of the United States) shall designate
advertising; or
a political committee to serve as his principal campaign commit-
'(H) any payment made or obligation incurred by a
tee. No political committee may be designated as the principal cam-
corporation or a labor organization which, under the
paign committee of more than one candidate, except that the candidate
provisions of the last paragraph of section 610 of title 18,
for the office of President of the United States nominated by a political
United States Code, would not constitute an expenditure
party may designate the national committee of such political party as
by such corporation or labor organization;";
his principal campaign committee. Except as provided in the preced-
2 USC 431.
(6) by striking "and" at the end of paragraph (h)
ing sentence, no political committee which supports more than one can-
(7) by striking the period at the end of paragraph (i) and
didate may be designated as a principal campaign committee.
inserting in lieu thereof a semicolon; and
'(2) Notwithstanding any other provision of this title, each report Reports,
(8) by adding at the end thereof the following new para-
or statement of contributions received or expenditures made by a filing.
graphs:
political committee (other than a principal campaign committee)
Pub. Law 93-443
- 14 -
October 15, 1974
October 15, 1974
- 15 -
Pub. Law 93-443
88 STAT. 1277
88 STAT. 1276
which is required to be filed with the Commission under this title shall
Any contribution of $1,000 or more received after the fifteenth day,
be filed instead with the principal campaign committee for the candi-
but more than 48 hours, before any election shall be reported within
date on whose behalf such contributions are accepted or such expendi-
48 hours after its receipt."; and
tures are made.
(2) by striking out "Each" at the beginning of the first sentence
"(3) It shall be the duty of each principal campaign committee to
of such section 304 (a) and inserting in lieu thereof "(1) Except
2 USC 434.
receive all reports and statements required to be filed with it under par-
as provided by paragraph (2), each", and by adding at the end
agraph (2) of this subsection and to compile and file such reports and
thereof the following new paragraphs:
statements, together with its own reports and statements, with the
'(2) Each treasurer of a political committee which is not a principal
Commission in accordance with the provisions of this title.".
campaign committee shall file the reports required under this section
with the appropriate principal campaign committee.
"(3) Upon a request made by a presidential candidate or a political
Waiver.
REGISTRATION OF POLITICAL COMMITTEE; STATEMENTS
committee which operates in more than one State, or upon its own
SEC. 203. Section 303 of the Federal Election Campaign Act of
motion, the Commission may waive the reporting dates set forth in
2 USC 433.
1971, relating to registration of political committees and statements, is
paragraph (1) (other than the reporting date set forth in paragraph
amended by adding at the end thereof the following new subsection
(1) (B)), and require instead that such candidate or political commit-
"(e) In the case of a political committee which is not a principal
tee file reports not less frequently than monthly. The Commission may
campaign committee, reports and notifications required under this
not require a presidential candidate or a political committee operating
section to be filed with the Commission shall be filed instead with the
in more than one State to file more than 12 reports (not counting
appropriate principal campaign committee.".
any report referred to in paragraph (1) (B)) during any calendar
year. If the Commission acts on its own motion under this paragraph
REPORTS BY POLITICAL COMMITTEES AND CANDIDATES
with respect to a candidate or a political committee, such candidate or
committee may obtain judicial review in accordance with the provi-
2 USC 434.
SEC. 204. (a) Section 304(a) of the Federal Election Campaign
sions of chapter 7 of title 5, United States Code.".
5 USC 701.
Act of 1971, relating to reports by political committees and candidates,
(b) (1) Section 304(b) (5) of the Federal Election Campaign Act
is amended-
of 1971, relating to reports by political committees and candidates, is
(1) by striking out the second and third sentences and inserting
amended by striking out "lender and endorsers" and inserting in lieu
in lieu thereof the following:
thereof "lender, endorsers, and guarantors".
"The reports referred to in the preceding sentence shall be filed as
(2) Section (b) (8) of the Federal Election Campaign Act of
follows:
1971, relating to reports by political committees and candidates, is
(A) (i) In any calendar year in which an individual is a candi-
amended by inserting immediately before the semicolon at the end
date for Federal office and an election for such Federal office is
thereof the following: ", together with total receipts less transfers
held in such year, such reports shall be filed not later than the
between political committees which support the same candidate and
tenth day before the date on which such election is held and shall
which do not support more than one candidate".
be complete as of the fifteenth day before the date of such elec-
(3) Section 304 (b) of the Federal Election Campaign Act of 1971,
tion; except that any such report filed by registered or certified
relating to reports by political committees and candidates, is amended
mail must be postmarked not later than the close of the twelfth
by striking out "full name and mailing address (occupation and the
day before the date of such election.
principal place of business, if any)" in paragraphs (9) and (10) and
" (ii) Such reports shall be filed not later than the thirtieth
inserting in lieu thereof in each such paragraph "identification".
day after the date of such election and shall be complete as of the
(4) Section 304 (b) (11) of the Federal Election Campaign Act of
twentieth day after the date of such election.
1971, relating to reports by political committees and candidates, is
(B) In any other calendar year in which an individual is a
amended by inserting immediately before the semicolon at the end
candidate for Federal office, such reports shall be filed after
thereof the following: ", together with total expenditures less trans-
December 31 of such calendar year, but not later than January 31
fers between political committees which support the same candidate
of the following calendar year and shall be complete as of the
and which do not support more than one candidate".
close of the calendar year with respect to which the report is filed.
(5) Section 304(b) (12) of the Federal Election Campaign Act of
(C) Such reports shall be filed not later than the tenth day
1971, relating to reports by political committees and candidates, is
following the close of any calendar quarter in which the candidate
amended by inserting immediately before the semicolon a comma and
or political committee concerned received contributions in excess
the following: ", together with a statement as to the circumstances
of $1,000, or made expenditures in excess of $1,000, and shall be
and conditions under which any such debt or obligation is extinguished
complete as of the close of such calendar quarter: except that any
and the consideration therefor".
such report required to be filed after December 31 of any calendar
(c) Such section 304 is amended by adding at the end thereof the
Members of
year with respect to which a report is required to be filed under
following new subsections:
Congress,
subparagraph (B) shall be filed as provided in such subparagraph.
"(d) This section does not require a Member of the Congress to
reporting
(D) When the last day for filing any quarterly report required
report, as contributions received or as expenditures made, the value
exemption.
by subparagraph (C) occurs within 10 days of an election, the
of photographic, matting, or recording services furnished to him by
filing of such quarterly report shall be waived and superseded by
the Senate Recording Studio, the House Recording Studio, or by an
the report required by subparagraph (A) (i).
individual whose pay is disbursed by the Secretary of the Senate or the
Clerk of the House of Representatives and who furnishes such services
as his primary duty as an employee of the Senate or House of Rep-
Pub. Law 93-443
- 16 -
October 15, 1974
October 15, 1974
- 17 -
Pub. Law 93-443
88 STAT. 1278
88 STAT. 1279
resentatives, or if such services were paid for by the Republican or
"(2) any category of political committees of the obligation to
Democratic Senatorial Campaign Committee, the Democratic
comply with the reporting requirements of such section if such
National Congressional Committee, or the National Republican Con-
committees-
gressional Committee. This subsection does not apply to such recording
"(A) primarily support persons seeking State or local
services furnished during the calendar year before the year in which
office; and
the Member's term expires.
(B) do not operate in more than one State or do not
"(e) Every person (other than a political committee or candidate)
operate on a statewide basis.".
who makes contributions or expenditures, other than by contribution
to a political committee or candidate, in an aggregate amount in
FORMAL REQUIREMENTS FOR REPORTS AND STATEMENTS
excess of $100 within a calendar year shall file with the Commission a
statement containing the information required by this section. State-
SEC. 207. Section 306 of the Federal Election Campaign Act of 1971,
2 USC 436.
ments required by this subsection shall be filed on the dates on which
relating to formal requirements respecting reports and statements, is
reports by political committees are filed but need not be cumulative.".
amended by striking out subsection (a) by redesignating subsections
(d) The heading for such section 304 is amended to read as follows:
(b), (c), and (d) as subsections (a), (b), and (c), respectively; and
by adding at the end thereof the following new subsection:
"REPORTS".
"(d) If a report or statement required by section 303, 304(a) (1) (A)
(ii), 304 (a) (1) (B), 304 (a) (1) (C), or 304 (e) of this title to be filed by
Ante, p. 1276.
Savings
(e) Notwithstanding the amendment to section 304 of the Federal
a treasurer of a political committee or by a candidate or by any other
provision.
Election Campaign Act of 1971, relating to the time for filing reports,
person, is delivered by registered or certified mail, to the Commission
2 USC 434 note.
made by the foregoing provisions of this section, nothing in this Act
or principal campaign committee with which it is required to be filed,
shall be construed to waive the report required to be filed by the thirty-
the United States postmark stamped on the cover of the envelope or
first day of January of 1975 under the provisions of such section 304, as
other container in which such report or statement is SO mailed shall
in effect on the date of the enactment of this Act.
be deemed to be the date of filing.".
CAMPAIGN ADVERTISEMENTS
REPORTS BY CERTAIN ORGANIZATIONS; FEDERAL ELECTION COMMISSION;
CAMPAIGN DEPOSITORIES
SEC. 205. (a) Section 305 of the Federal Election Campaign Act of
2 USC 435.
1971, relating to reports by others than political committees, is
SEC. 208. (a) Title III of the Federal Election Campaign Act of
amended to read as follows:
1971, relating to disclosure of Federal campaign funds, is amended by
redesignating sections 308 and 309 as sections 316 and 317, respectively; 2
USC
438,
"REQUIREMENTS RELATING TO CAMPAIGN ADVERTISING
by redesignating section 311 as section 321; and by inserting imme- 439.
diately after section 307 the following new sections:
"SEC. 305. (a) No person who sells space in a newspaper or magazine
to a candidate, or to the agent of a candidate, for use in connection
"REPORTS BY CERTAIN PERSONS
with such candidate's campaign, may charge any amount for such
space which exceeds the amount charged for comparable use of such
"SEC. 308. Any person (other than an individual) who expends any 2 USC 437a.
space for other purposes.
funds or commits any act directed to the public for the purpose of
Funds, solici-
"(b) Each political committee shall include on the face or front
influencing the outcome of an election, or who publishes or broad-
tation, notice.
page of all literature and advertisements soliciting contributions the
casts to the public any material referring to a candidate (by name,
following notice:
description, or other reference) advocating the election or defeat
"A copy of our report is filed with the Federal Election Com-
of such candidate, setting forth the candidate's position on any pub-
mission and is available for purchase from the Federal Election
lic issue, his voting record, or other official acts (in the case of a
Commission, Washington, D.C."
candidate who holds or has held Federal office), or otherwise designed
(b) Title I of the Federal Election Campaign Act of 1971 is
to influence individuals to cast their votes for or against such candidate
Repeal.
47 USC 801.
repealed.
or to withhold their votes from such candidate shall file reports with
WAIVER OF REPORTING REQUIREMENTS
the Commission as if such person were a political committee. The
reports filed by such person shall set forth the source of the funds
SEC. 206. Section 306(b) of the Federal Election Campaign Act of
used in carrying out any activity described in the preceding sentence
2 USC 436.
1971 (as so redesignated by section 207 of this Act), relating to formal
in the same detail as if the funds were contributions within the
requirements respecting reports and statements, is amended to read
meaning of section 301 (e), and payments of such funds in the same
Ante, p. 1272.
as follows:
detail as if they were expenditures within the meaning of section 301
"(b) The Commission may, by a rule of general applicability which
(f). The provisions of this section do not apply to any publication
Ante, p. 1273.
Publication in
is published in the Federal Register not less than 30 days before its
or broadcast of the United States Government or to any news story,
Federal Register.
effective date, relieve-
commentary, or editorial distributed through the facilities of a broad-
'(1) any category of candidates of the obligation to comply
casting station or a bona fide newspaper, magazine, or other periodical
Ante, p. 1276.
personally with the reporting requirements of section 304, if it
publication. A news story, commentary, or editorial is not considered
determines that such action is consistent with the purposes of this
to be distributed through a bona fide newspaper, magazine, or other
Act; and
periodical publication if--
Pub. Law 93-443
- 18 -
October 15, 1974
October 15, 1974
- 19 -
Pub. Law 93-443
88 STAT. 1280
88 STAT. 1281
"(1) such publication is primarily for distribution to individ-
"(A) 2 shall be appointed, with the confirmation of a majority
uals affiliated by membership or stock ownership with the person
of both Houses of the Congress, by the President pro tempore of
(other than an individual) distributing it or causing it to be
the Senate upon the recommendations of the majority leader of
distributed, and not primarily for purchase by the public at news-
the Senate and the minority leader of the Senate;
stands or by paid subscription; or
'(B) 2 shall be appointed, with the confirmation of a majority
(2) the news story, commentary, or editorial is distributed by
of both Houses of the Congress, by the Speaker of the House of
a person (other than an individual) who devotes a substantial
Representatives, upon the recommendations of the majority leader
part of his activities to attempting to influence the outcome of
of the House and the minority leader of the House; and
elections, or to influence public opinion with respect to matters of
"(C) 2 shall be appointed, with the confirmation of a majority
national or State policy or concern.
of both Houses of the Congress, by the President of the United
States.
"CAMPAIGN DEPOSITORIES
A member appointed under subparagraph (A), (B), or (C) shall
not be affiliated with the same political party as the other member
2 USC 437b.
"SEC. 309. (a) (1) Each candidate shall designate one or more
national or State banks as his campaign depositories. The principal
appointed under such paragraph.
campaign committee of such candidate, and any other political com-
(2) Members of the Commission shall serve for terms of 6 years, Term,
except that of the members first appointed-
mittee authorized by him to receive contributions or to make expendi-
tures on his behalf, shall maintain a checking account at a depository
(A) one of the members appointed under paragraph (1) (A)
shall be appointed for a term ending on the April 30 first occur-
designated by the candidate and shall deposit any contributions
ring more than 6 months after the date on which he is appointed;
received by such committee into such account. A candidate shall
(B) one of the members appointed under paragraph (1)
deposit any payment received by him under chapter 95 or chapter 97 of
(B) shall be appointed for a term ending 1 year after the April 30
26 USC 9001.
the Internal Revenue Code of 1954 in the account maintained by his
on which the term of the member referred to in subparagraph (A)
principal campaign committee. No expenditure may be made by any
of this paragraph ends;
such committee on behalf of a candidate or to influence his election
"(C) one of the members appointed under paragraph (1) (C)
except by check drawn on such account, other than petty cash expendi-
shall le appointed for a term ending 2 years thereafter;
tures as provided in subsection (b).
(D) one of the members appointed under paragraph (1) (A)
"(2) The treasurer of each political committee (other than a politi-
shall be appointed for a term ending 3 years thereafter:
cal committee authorized by a candidate to receive contributions or to
(E) one of the members appointed under paragraph (1) (B)
make expenditures on his behalf) shall designate one or more national
shall be appointed for a term ending 4 years thereafter; and
or State banks as campai rn depositories of such committee, and shall
(F) one of the members appointed under paragraph (1) (C)
maintain a checking account for the committee at each such depository.
shall be appointed for a term ending 5 years thereafter.
All contributions received by such committee shall be deposited in
An individual appointed to fill a vacancy occurring other than by the Vacancies.
such accounts. No expenditure may be made by such committee except
expiration of a term of office shall be appointed only for the unexpired
by check drawn on such accounts, other than petty cash expenditures*
term of the member he succeeds. Any vacancy occurring in the member-
as provided in subsection (b).
ship of the Commission shall be filled in the same manner as in the case
"(b) A political committee may maintain a petty cash fund out of
of the original appointment.
which it may make expenditures not in excess of $100 to any person
"(3) Members shall be chosen on the basis of their maturity, expe-
in connection with a single purchase or transaction. A record'of petty
rience, integrity, impartiality, and good judgment and shall be chosen
cash disbursements shall be kept in accordance with requirements
from among individuals who, at the time of their appointment, are not
established by the Commission, and such statements and reports there-
elected or appointed officers or employees in the executive, legislative,
of shall be furnished to the Commission as it may require.
or judicial branch of the Government of the United States.
"(c) A candidate for nomination for election, or for election, to the
"(4) Members of the Commission (other than the Secretary of the
Compensation.
office of President of the United States may establish one such deposi-
Senate and the Clerk of the House of Representatives) shall receive
tory in each State, which shall be considered as his campaign deposi-
compensation equivalent to the compensation paid at level IV of the
tory for such State by his principal campaign committee and any other
Executive Schedule (5 U.S.C. 5315).
83 Stat. 863.
political committee authorized by him to receive contributions or to
"(5) The Commission shall elect a chairman and a vice chairman
Chairman and
make expenditures on his behalf in such State, under rules prescribed
from among its members (other than the Secretary of the Senate and
vice chairman.
by the Commission. The campaign depository of the candidate of a
the Clerk of the House of Representatives) for a term of one year. No
political party for election to the office of Vice President of the United
member may serve as chairman more often than once during any
States shall be the campaign depository designated by the candidate
term of office to which he is appointed. The chairman and the vice
of such party for election to the office of President of the United
chairman shall not be affiliated with the same political party. The
States.
"FEDERAL ELECTION COMMISSION
Iff
1/1/75
vice chairman shall act as chairman in the absence or disability of the
chairman, or in the event of a vacancy in such office.
'(b) The Commission shall administer, seek to obtain compliance
Establishment.
"SEC. 310. (a) (1) There is established a commission to be known as
with, and formulate policy with respect to this Act and sections 608,
2 USC 437c.
the Federal Election Commission, The Commission is composed of the
610, 611, 613, 614, 615, 616, and 617 of title 18, United States Code.
Secretary of the Senate and the Clerk of the House of Representatives,
Ante, pp. 1263,
Membership.
The Commission has primary jurisdiction with respect to the civil 1268.
ex officio and without the right to vote, and 6 members appointed as
enforcement of such provisions.
Jurisdiction.
follows:
Pub. Law 93-443
- 20 -
October 15, 1974
October 15, 1974
- 21 -
Pub. Law 93-443
88 STAT. 1282
88 STAT. 1283
"(c) All decisions of the Commission with respect to the exercise of
enforcing the provisions of this Act, through its general
its duties and powers under the provisions of this title shall be made
counsel;
by a majority vote of the members of the Commission. A member of
"(7) to render advisory opinions under section 313;
Infra.
the Commission may not delegate to any person his vote or any
(8) to make, amend, and repeal such rules, pursuant to the
decisionmaking authority or duty vested in the Commission by the
provisions of chapter 5 of title 5, United States Code, as are
5 USC 500.
provisions of this title.
necessary to carry out the provisions of this Act;
Meetings.
(d) The Commission shall meet at least once each month and also
"(9) to formulate general policy with respect to the administra-
at the call of any member.
tion of this Act and sections 608, 610, 611, 613, 614, 615, 616, and
Rules.
"(e) The Commission shall prepare written rules for the conduct
617 of title 18, United States Code;
Ante, pp. 1263,
Seal.
of its activities, shall have an official seal which shall be judicially
(10) to develop prescribed forms under section 311 (1)
1268.
noticed, and shall have its principal office in or near the District of
and
Columbia (but it may meet or exercise any of its powers anywhere in
(11) to conduct investigations and hearings expeditiously, to
the United States).
encourage voluntary compliance, and to report apparent viola-
Staff director
(f) (1) The Commission shall have a staff director and a general
tions to the appropriate law enforcement authorities.
and general
counsel who shall be appointed by the Commission. The staff director
(b) Any United States district court within the jurisdiction of
counsel.
shall be paid at a rate not to exceed the rate of basic pay in effect for
which any inquiry is carried on, may, upon petition by the Commission,
83 Stat. 863.
level IV of the Executive Schedule (5 U.S.C. 5315). The general coun-
in case of refusal to obey a subpena or order of the Commission issued
sel shall be paid at a rate not to exceed the rate of basic pay in effect
under subsection (a) of this section, issue an order requiring com-
for level V of the Executive Schedule (5 U.S.C. 5316). With the
pliance therewith. Any failure to obey the order of the court may be
approval of the Commission, the staff director may appoint and fix the
punished by the court as a contempt thereof.
pay of such additional personnel as he considers desirable.
"(c) No person shall be subject to civil liability to any person (other
(2) With the approval of the Commission, the staff director may
than the Commission or the United States) for disclosing informa-
procure temporary and intermittent services to the same extent as is
tion at the request of the Commission.
authorized by section 3109(b) of title 5, United States Code, but at
"(d) (1) Whenever the Commission submits any budget estimate
Budget esti-
rates for individuals not to exceed the daily equivalent of the annual
or request to the President of the United States or the Office of Man-
mates or re-
rate of basic pay in effect for grade GS-15 of the General Schedule
agement and Budget, it shall concurrently transmit a copy of such esti-
quests, copies,
5 USC 5332
(5 U.S.C. 5332).
mate or request to the Congress.
transmittal
note.
(3) In carrying out its responsibilities under this Act, the Com-
(2) Whenever the Commission submits any legislative recom-
to Congress.
mission shall, to the fullest extent practicable, avail itself of the
mendations, or testimony, or comments on legislation, requested by
assistance, including personnel and facilities, of other agencies and
the Congress or by any Member of the Congress, to the President of
departments of the United States Government. The heads of such
the United States or the Office of Management and Budget, it shall
agencies and departments may make available to the Commission
concurrently transmit a copy thereof to the Congress or to the Member
such personnel, facilities, and other assistance, with or without reim-
requesting the same. No officer or agency of the United States shall
bursement, as the Commission may request.
have any authority to require the Commission to submit its legisla-
tive recommendations, testimony, or comments on legislation, to any
"POWERS OF COMMISSION
office or agency of the United States for approval, comments, or review,
prior to the submission of such recommendations, testimony, or com-
2 USC 437d.
"SEC. 311. (a) The Commission has the power-
ments to the Congress.
"(1) to require, by special or general orders, any person to
"REPORTS
submit in writing such reports and answers to questions as the
Commission may prescribe; and such submission shall be made
"SEC. 312. The Commission shall transmit reports to the President
Reports to
within such a reasonable period of time and under oath or other-
of the United States and to each House of the Congress no later than
President and
wise as the Commission may determine;
March 31 of each year. Each such report shall contain a detailed state-
Congress.
(2) to administer oaths or affirmations;
ment with respect to the activities of the Commission in carrying out
2 USC 437e.
(3) to require by subpena, signed by the chairman or the
its duties under this title, together with recommendations for such
vice chairman, the attendance and testimony of witnesses and
legislative or other action as the Commission considers appropriate.
the production of all documentary evidence relating to the execu-
tion of its duties;
"ADVISORY OPINIONS
"(4) in any proceeding or investigation, to order testimony to
be taken by deposition before any person who is designated by
"SEC. 313. (a) Upon written request to the Commission by any
2 USC 437f.
the Commission and has the power to administer oaths and, in
individual holding Federal office, any candidate for Federal office, or
such instances, to compel testimony and the production of evi-
any political committee, the Commission shall render an advisory
dence in the same manner as authorized under paragraph (3) of
opinion, in writing, within a reasonable time with respect to whether
this subsection;
any specific transaction or activity by such individual, candidate, or
(5) to pay witnesses the same fees and mileage as are paid
political committee would constitute a violation of this Act, of chapter
in like circumstances in the courts of the United States;
95 or chapter 96 of the Internal Revenue Code of 1954, or of section
26 USC 9001,
"(6) to initiate (through civil proceedings for injunctive,
608, 610, 611, 613, 614, 615, 616, or 617 of title 18, United States Code.
9021.
declaratory, or other appropriate relief), defend, or appeal any
"(b) Notwithstanding any other provision of law, any person with
civil action in the name of the Commission for the purpose of
respect to whom an advisory opinion is rendered under subsection (a)
who acts in good faith in accordance with the provisions and findings
Pub. Law 93-443
- 22 -
October 15, 1974
October 15, 1974
- 23 -
Pub. Law 93-443
88 STAT. 1284
88 STAT. 1285
of such advisory opinion shall be presumed to be in compliance with
" (7) Whenever in the judgment of the Commission, after affording
the provision of this Act, of chapter 95 or chapter 96 of the Internal
due notice and an opportunity for a hearing, any person has engaged
26 USC 9001,
Revenue Code of 1954, or of section 608, 610, 611, 613, 614, 615, 616, or
or is about to engage in any acts or practices which constitute or will
9021.
617 of title 18, United States Code, with respect to which such advisory
constitute a violation of any provision of this Act or of section 608,
Ante, pp. 1263,
opinion is rendered.
610, 611, 613, 614, 615, 616, or 617 of title 18, United States Code, upon
Ante, pp. 1263,
1268.
"(c) Any request made under subsection (a) shall be made public
request by the Commission the Attorney General on behalf of the
1268.
by the Commission. The Commission shall, before rendering an
United States shall institute a civil action for relief, including a perma-
advisory opinion with respect to such request, provide any interested
nent or temporary injunction, restraining order, or any other appro-
party with an opportunity to transmit written comments to the Com-
priate order in the district court of the United States for the district
mission with respect to such request.
in which the person is found, resides, or transacts business. Upon a
"ENFORCEMENT
proper showing that such person has engaged or is about to engage in
such acts or practices, a permanent or temporary injunction, restrain-
Complaints,
"SEC. 314. (a) (1) (A) Any person who believes a violation of this
ing order, or other order shall be granted without bond by such court.
filing.
Act or of section 608, 610, 611, 613, 614, 615, 616, or 617 of title 18,
(8) In any action brought under paragraph (5) or (7) of this sub-
Subpenas.
2 USC 437g.
United States Code, has occurred may file a complaint with the
section, subpenas for witnesses who are required to attend a United
Commission.
States district court may run into any other district.
"(B) In any case in which the Clerk of the House of Representatives
(9) Any party aggrieved by an order granted under paragraph
Petition for
or the Secretary of the Senate (who receive reports and statements as
(5) or (7) of this subsection may, at any time within 60 days after
Judicial
custodian for the Commission). has reason to believe a violation of this
the date of entry thereof, file a petition with the United States court of
review.
Act or section 608, 610, 611, 613, 614, 615, 616, or 617 of title 18, United
appeals for the circuit in which such order was issued for judicial
States Code, has occurred, he shall refer such apparent violation to
review of such order.
the Commission.
"(10) The judgment of the court of appeals affirming or setting
"(2) The Commission, upon receiving any complaint under para-
aside, in whole or in part, any such order of the district court shall be
graph (1) (A), or a referral under paragraph (1) (B), or if it has
final, subject to review by the Supreme Court of the United States
reason to believe that any person has committed a violation of any
upon certiorari or certification as provided in section 1254 of title 28,
such provision, shall notify the person involved of such apparent
United States Code.
violation and shall-
(11) Any action brought under this subsection shall be advanced
"(A) report such apparent violation to the Attorney General;
on the docket of the court in which filed, and put ahead of all other
or
actions (other than other actions brought under this subsection or
"(B) make an investigation of such apparent violation.
under section 315).
(3) Any investigation under paragraph (2) (B) shall be conducted
"(b) In any case in which the Commission refers an apparent viola-
Report to
expeditiously and shall include an investigation of reports and state-
tion to the Attorney General, the Attorney General shall respond by
Commission.
ments filed by any complainant under this title, if such complainant is
report to the Commission with respect to any action taken by the
a candidate. Any notification or investigation made under paragraph
Attorney General regarding such apparent violation. Each report shall
(2) shall not be made public by the Commission or by any other per-
be transmitted no later than 60 days after the date the Commission
son without the written consent of the person receiving such notifica-
refers any apparent violation, and at the close of every 30-day period
tion or the person with respect to whom such investigation is made.
thereafter until there is final disposition of such apparent violation.
Hearing.
"(4) The Commission shall, at the request of any person who
The Commission may from time to time prepare and publish reports
receives notice of an apparent violation under paragraph (2), con-
on the status of such referrals.
duct a hearing with respect to such apparent violation.
"(5) If the Commission determines, after investigation, that there
"JUDICIAL REVIEW
is reason to believe that any person has engaged, or is about to engage
in any acts or practices which constitute or will constitute a violation
"SEC. 315. (a) The Commission, the national committee of any 2 USC 437h.
of this Act, it may endeavor to correct such violation by informal
political party, or any individual eligible to vote in any election for
Civil action
methods of conference, conciliation, and persuasion. If the Commis-
the office of President of the United States may institute such actions
for relief.
sion fails to correct the violation through informal methods, it may
in the appropriate district court of the United States, including
institute a civil action for relief, including a permanent or temporary
actions for declaratory judgment, as may be appropriate to construe
injunction, restraining order, or any other appropriate order in the
the constitutionality of any provision of this Act or of section 608, 610,
district court of the United States for the district in which the person
611, 613, 614, 615, 616, or 617 of title 18, United States Code. The
against whom such action is brought is found, resides, or transacts
district court immediately shall certify all questions of constitution-
business. Upon a proper showing that such person has engaged or is
ality of this Act or of section 608, 610, 611, 613, 614, 615, 616, or 617
about to engage in such acts or practices, the court shall grant a per-
of title 18, United States Code to the United States court of appeals
manent or temporary injunction, restraining order, or other order.
for the circuit involved, which shall hear the matter sitting en banc.
"(6) The Commission shall refer apparent violations to the appro-
"(b) Notwithstanding any other provision of law, any decision on
priate law enforcement authorities to the extent that violations of
a matter certified under subsection (a) shall be reviewable by appeal
18 USC 591.
provisions of chapter 29 of title 18, United States Code, are involved,
directly to the Supreme Court of the United States. Such appeal shall
or if the Commission is unable to correct apparent violations of this
be brought no later than 20 days after the decision of the court of
Act under the authority given it by paragraph (5), or if the Commis-
appeals.
sion determines that any such referral is appropriate.
Pub. Law 93-443
- 24 -
October 15, 1974
October 15, 1974
- 25 -
Pub. Law 93-443
88 STAT. 1286
88 STAT. 1287
(c) It shall be the duty of the court of appeals and of the Supreme
(B) by striking out "him" in paragraph (4) and inserting
Court of the United States to advance on the docket and to expedite to
in lieu thereof "it" and
the greatest possible extent the disposition of any matter certified
(10) by amending subsection (c) of section 316 (as redesignated 2 USC 438.
under subsection (a)."
by subsection (a) of this section)
2 USC 437c
(b) Until the appointment and qualification of all the members of
(A) by striking out "Comptroller General" each place it
note.
the Federal Election Commission and its general counsel and until
appears therein and inserting in lieu thereof "Commission"
the transfer provided for in this subsection, the Comptroller General,
and striking out "his" in the second sentence of such subsec-
the Secretary of the Senate, and the Clerk of the House of Representa-
tion and inserting in lieu thereof "its"; and
tives shall continue to carry out their responsibilities under title I and
(B) by striking out the last sentence thereof; and
47 USC 801
title III of the Federal Election Campaign Act of 1971 as such titles
(11) by striking out "a supervisory officer" in section (a)
note,
existed on the day before the date of enactment of this Act. Upon the
of such Act (as redesignated by subsection (a) of this Act) and 2 USC 439.
Ante, p. 1272.
appointment of all the members of the Commission and its general
inserting in lieu thereof "the Commission".
counsel, the Comptroller General, the Secretary of the Senate, and
the Clerk of the House of Representatives shall meet with the Com-
DUTIES AND REGULATIONS
mission and arrange for the transfer, within 30 days after the date
on which all such members and the general counsel are appointed, of
SEC. 209. (a) (1) Section 316(a) of the Federal Election Campaign
copies of all appropriate records, documents, memorandums, and other
Act of 1971 (as redesignated and amended by section 208 (a) of this
papers associated with carrying out their responsibilities under title
Act), relating to duties of the Commission, is amended by strik-
I and title III of the Federal Election Campaign Act of 1971 and
ing out paragraphs (6), (7), (8), (9), and (10), and by redesignating
26 USC 9001.
chapter 95 of the Internal Revenue Code of 1954.
paragraphs (11), (12), and (13) as paragraphs (8), (9), and (10),
(c) Title III of the Federal Election Campaign Act of 1971 is
respectively, and by inserting immediately after paragraph (5) the
amended-
following new paragraphs:
2 USC 431.
(1) by amending section relating to definitions, to read
'(6) to compile and maintain a cumulative index of reports and
Index of reports
as follows:
statements filed with it, which shall be published in the Federal
and statements.
"(g) 'Commission' means the Federal Election Commission;";
Register at regular intervals and which shall be available for
Publication in
2 USC 432.
(2) by striking out "supervisory officer" in section 302(d) and
purchase directly or by mail for a reasonable price;
Federal Register.
inserting in lieu thereof "Commission";
(7) to prepare and publish from time to time special reports
Special reports,
2 USC 433.
(3) by amending section 303, relating to registration of political
listing those candidates for whom reports were filed as required
publication.
committees; statements—
by this title and those candidates for whom such reports were not
(A) by striking out "supervisory officer" each time it
filed as SO required;"
appears therein and inserting in lieu thereof "Commission";
(2) Notwithstanding section (a) (7) of the Federal Election
and
Campaign Act of 1971 (relating to an annual report by the supervisory
2 USC 438 note.
(B) by striking out "he" in the second sentence of sub-
officer), as in effect on the day before the effective date of the amend-
section (a) of such section and inserting in lieu thereof "it";
ments made by paragraph (1) of this subsection, no such annual report
2 USC 434.
(4) by amending section 304, relating to reports by political
shall be required with respect to any calendar year beginning after
committees and candidates-
December 31, 1972.
(A) by striking out "appropriate supervisory officer" and
(b) (1) Section 316 (10) of the Federal Election Campaign Act
"him" in the first sentence thereof and inserting in lieu
of 1971 (as SO redesignated by subsection (a) of this section), relat-
thereof "Commission" and "it", respectively and
ing to the prescription of rules and regulations, is amended by insert-
(B) by striking out "supervisory officer" where it appears
ing before the period at the end thereof the following: ", in
in paragraphs (12) and (13) of subsection (b) and inserting
accordance with the provisions of subsection (c)"
in lieu thereof "Commission";
(2) Such section 316 is amended-
2 USC 436.
(5) by striking out "supervisory officer" each place it appears
(A) by striking out subsection (b) and subsection (d) by
in section 306, relating to formal requirements respecting reports
redesignating subsection (c) as subsection (b) ; and
and statements, and inserting in lieu thereof "Commission";
(B) by adding at the end thereof the following new sub-
(6) by striking out "Comptroller General of the United States"
sections:
2 USC 437.
and "he" in section 307, relating to reports on convention financ-
(c) (1) The Commission, before prescribing any rule or regula-
Proposed rules
ing, and inserting in lieu thereof "Federal Election Commission"
tion under this section, shall transmit a statement with respect to
or regulations,
and "it", respectively;
such rule or regulation to the Senate or the House of Representatives,
statement, trans-
2 USC 438.
(7) by amending the heading for section 316 (as redesignated
as the case may be, in accordance with the provisions of this subsec-
mittal to
by subsection (a) of this section), relating to duties of the super-
tion. Such statement shall set forth the proposed rule or regulation
Congress.
visory officer, to read as follows: "DUTIES";
and shall contain a detailed explanation and justification of such rule
(8) by striking out "supervisory officer" in section 316(a) (as
or regulation.
redesignated by subsection (a) of this section) the first time it
(2) If the appropriate body of the Congress which receives a state-
appears and inserting in lieu thereof "Commission";
ment from the Commission under this subsection does not, through
(9) by amending section 316(a) (as redesignated by subsection
appropriate action, disapprove the proposed rule or regulation set forth
(a) of this section)-
in such statement no later than 30 legislative days after receipt of such
(A) by striking out "him" in paragraph (1) and inserting
statement, then the Commission may prescribe such rule or regulation.
in lieu thereof "it"; and
In the case of any rule or regulation proposed to deal with reports or
Presidential
elections.
Pub. Law 93-443
- 26 -
October 15, 1974
October 15, 1974
- 27 -
Pub. Law 93-443
88 STAT. 1289
88 STAT. 1288
statements required to be filed under this title by a candidate for the
"USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES
office of President of the United States, and by political committees
"SEC. 318. Amounts received by a candidate as contributions that 2 USC 439a.
supporting such a candidate both the Senate and the House of Repre-
sentatives shall have the power to disapprove such proposed rule or
are in excess of any amount necessary to defray his expenditures, and
regulation. The Commission may not prescribe any rule or regulation
any other amounts contributed to an individual for the purpose of sup-
porting his activities as a holder of Federal office, may be used by such
which is disapproved under this paragraph.
candidate or individual, as the case may be, to defray any ordinary and
Senatorial
(3) If the Commission proposes to prescribe any rule or regulation
necessary expenses incurred by him in connection with his duties as a
elections.
dealing with reports or statements required to be filed under this title
holder of Federal office, may be contributed by him to any organi-
by a candidate for the office of Senator, and by political committees
zation described in section 170(c) of the Internal Revenue Code of
supporting such candidate, it shall transmit such statement to the
1954, or may be used for any other lawful purpose. To the extent any 26 USC 170.
Senate. If the Commission proposes to prescribe any rule or regulation
such contribution, amount contributed, or expenditure thereof is not
dealing with reports or statements required to be filed under this title
otherwise required to be disclosed under the provisions of this title,
by a candidate for the office of Representative, Delegate, or Resident
such contribution, amount contributed, or expenditure shall be fully
Commissioner, and by political committees supporting such candidate.
it shall transmit such statement to the House of Representatives. If
disclosed in accordance with rules promulgated by the Commission.
the Commission proposes to prescribe any rule or regulation dealing
The Commission is authorized to prescribe such rules as may be neces- Rules.
sary to carry out the provisions of this section.
with reports or statements required to be filed under this title by a
candidate for the office of President of the United States, and by
"PROHIBITION OF FRANKED SOLICITATIONS
political committees supporting such candidate it shall transmit
such statement to the House of Representatives and the Senate.
"SEC. 319. No Senator, Representative, Resident Commissioner, or 2 USC 439b.
"(4) For purposes of this subsection, the term 'legislative days'
Delegate shall make any solicitations of funds by a mailing under
does not include, with respect to statements transmitted to the Senate,
the frank under section 3210 of title 39, United States Code.
any calendar day on which the Senate is not in session, and with
respect to statements transmitted to the House of Representatives, any
"AUTHORIZATION OF APPROPRIATIONS
calendar day on which the House of Representatives is not in session,
and with respect to statements transmitted to both such bodies, any
"SEC. 320. There are authorized to be appropriated to the Commis- 2 USC 439c.
calendar day on which both Houses of the Congress are not in
sion for the purpose of carrying out its functions under this Act, and
session.
under chapters 95 and 96 of the Internal Revenue Code of 1954, not
Rules and
"(d) (1) The Commission shall prescribe suitable rules and regula-
to exceed $5,000,000 for the fiscal year ending June 30, 1975.".
regulations.
tions to carry out the provisions of this title, including such rules and
regulations as may be necessary to require that-
TITLE III-GENERAL PROVISIONS
"(A) reports and statements required to be filed under this
title by a candidate for the office of Representative in, or Dele-
EFFECT ON STATE LAW
gate or Resident Commissioner to, the Congress of the United
States, and by political committees supporting such candidate,
SEC. 301. Section 403 of the Federal Election Campaign Act of
shall be received by the Clerk of the House of Representatives
1971, relating to effect on State law, is amended to read as follows: 2 USC 453.
as custodian for the Commission;
"(B) reports and statements required to be filed under this
"EFFECT ON STATE LAW
title by a candidate for the office of Senator, and by political
committees supporting such candidate, shall be received by the
"SEC. 403. The provisions of this Act, and of rules prescribed under
Secretary of the Senate as custodian for the Commission; and
this Act, supersede and preempt any provision of State law with
"(C) the Clerk of the House of Representatives and the Sec-
respect to election to Federal office.".
retary of the Senate, as custodians for the Commission, each shall
make the reports and statements received by him available for
PERIOD OF LIMITATIONS; ENFORCEMENT
public inspection and copying in accordance with paragraph (4)
SEC. 302. Title IV of the Federal Election Campaign Act of 1971,
of subsection (a), and preserve such reports and statements in
relating to general provisions, is amended by redesignating section
accordance with paragraph (5) of subsection (a).
406 as section 408 and by inserting immediately after section 405 the 2 USC 431 note.
Congressional
(2) It shall be the duty of the Clerk of the House of Representa-
following new sections:
cooperation.
tives and the Secretary of the Senate to cooperate with the Commission
in carrying out its duties under this Act and to furnish such services
"PERIOD OF LIMITATIONS
and facilities as may be required in accordance with this section.".
"SEC. 406. (a) No person shall be prosecuted, tried, or punished 2 USC 455.
MISCELLANEOUS PROVISIONS
for any violation of title III of this Act or of section 608, 610, 611, 613,
614, 615, 616, or 617 of title 18, United States Code, unless the indict- Ante, pp. 1263,
SEC. 210. Title III of the Federal Election Campaign Act of 1971
ment is found or the information is instituted within 3 years after the 1268.
Ante, p. 1279.
is amended by inserting immediately after section 317 (as SO redesig-
date of the violation.
nated by section 208(a) of this Act) the following new sections:
Pub. Law 93-443
- 28 -
October 15, 1974
October 15, 1974
- 29 -
Pub. Law 93-443
88 STAT. 1290
88 STAT. 1291
(b) twithstanding any other provision of law-
(2) in paragraph (3) thereof, by inserting "and" immediately
'(1) the period of limitations referred to in subsection (a) shall
after "Federal Reserve System;" and
apply with respect to violations referred to in such subsection
(3) in paragraph (4) thereof, by striking out "; and" and
committed before, on, or after the effective date of this section;
inserting in lieu thereof a period.
and
"(2) no criminal proceeding shall be instituted against any
REPEAL OF COMMUNICATIONS MEDIA EXPENDITURE LIMITATIONS
person for any act or omission which was a violation of any pro-
Ante, p. 1272.
vision of title III of this Act, or section 608, 610, 611, or 613 of
SEC. 402. (a) Section 315 of the Communications Act of 1934 47 USC 315.
Ante, pp. 1263,
title 18, United States Code, as in effect on December 31, 1974, if
(relating to candidates for public office; facilities; rules) is amended
1268.
such act or omission does not constitute a violation of any such
by striking out subsections (c), (d), and (e), and by redesignating
provision, as amended by the Federal Election Campaign Act
subsections (f) and (g) as subsections (c) and (d), respectively.
Amendments of 1974.
(b) Section 315 of such Act (as SO redesignated by subsection Definitions.
Nothing in this-subsection shall affect any proceeding pending in any
(a) of this section), relating to definitions, is amended to read as
court of the United States on the effective date of this section.
follows:
"(c) For purposes of this section-
"ADDITIONAL ENFORCEMENT AUTHORITY
"(1) the term 'broadcasting station' includes a community
antenna television system; and
2 USC 456.
"SEC. 407. (a) In any case in which the Commission, after notice
"(2) the terms 'licensee' and 'station licensee' when used with
and opportunity for a hearing on the record in accordance with sec-
respect to a community antenna television system mean the opera-
tion 554 of title 5, United States Code, makes a finding that a person
tor of such system.".
who, while a candidate for Federal office, failed to file a report
required by title III of this Act, and such finding is made before the
APPROPRIATIONS TO CAMPAIGN FUND
expiration of the time within which the failure to file such report may
be prosecuted as a violation of such title III, such person shall be dis-
SEC. 403. (a) Section 9006(a) of the Internal Revenue Code of 1954 26 USC 9006.
qualified from becoming a candidate in any future election for Federal
(relating to establishment of campaign fund) is amended-
office for a period of time beginning on the date of such finding and
(1) by striking out "as provided by appropriation Acts" and
ending one year after the expiration of the term of the Federal office
inserting in lieu thereof "from time to time"; and
for which such person was a candidate.
(2) by adding at the end thereof the following new sentence:
(b) Any finding by the Commission under subsection (a) shall be
"There is appropriated to the fund for each fiscal year, out of
subject to judicial review in accordance with the provisions of chapter
amounts in the general fund of the Treasury not otherwise appro-
5 USC 701.
7 of title 5, United States Code.".
priated, an amount equal to the amounts SO designated during
each fiscal year, which shall remain available to the fund without
TITLE IV-AMENDMENTS TO OTHER LAWS;
fiscal year limitation.".
EFFECTIVE DATES
(b) In addition to the amounts appropriated to the Presidential 26 USC 9006
Election Campaign Fund established under section 9006 of the Inter- note.
POLITICAL ACTIVITIES BY STATE AND LOCAL OFFICERS AND EMPLOYEES
nal Revenue Code of 1954 (relating to payments to eligible candidates)
by the last sentence of subsection (a) of such section (as amended by
SEC. 401. (a) Section 1502(a) (3) of title 5, United States Code
subsection (a) of this section), there is appropriated to such fund an
(relating to influencing elections, taking part in political campaigns,
amount equal to the sum of the amounts designated for payment under
prohibitions, exceptions), is amended to read as follows:
section 6096 of such Code (relating to designation by individuals to 26 USC 6096.
'(3) be a candidate for elective office.".
the Presidential Election Campaign Fund) before January 1, 1975,
(b) (1) Section 1503 of title 5, United States Code, relating to non-
not otherwise taken into account under the provisions of such sec-
partisan political activity, is amended to read as follows:
tion 9006, as amended by this section.
"§ 1503. Nonpartisan candidacies permitted
ENTITLEMENTS OF ELIGIBLE CANDIDATES TO PAYMENTS FROM
"Section 1502(a) (3) of this title does not prohibit any State or local
PRESIDENTIAL ELECTION CAMPAIGN FUND
officer or employee from being a candidate in any election if none of
the candidates is to be nominated or elected at such election as repre-
SEC. 404. (a) Subsection (a) (1) of section 9004 of the Internal
senting a party any of whose candidates for Presidential elector
Revenue Code of 1954 (relating to entitlement of eligible candidates 26 USC 9004.
received votes in the last preceding election at which Presidential elec-
to payments) is amended to read as follows:
tors were selected.".
"(1) The eligible candidates of each major party in a presiden-
(2) The table of sections for chapter 15 of title 5, United States
tial election shall be entitled to equal payments under section
Code, is amended by striking out the item relating to section 1503
9006 in an amount which, in the aggregate, shall not exceed the
and inserting in lieu thereof the following new item:
expenditure limitations applicable to such candidates under sec-
tion 608(c) (1) (B) of title 18, United States Code.".
"1503. Nonpartisan candidacies permitted.".
(b) (1) Subsection (a) (2) (A) of section 9004 of such Code (relat-
(c) Section 1501 of title 5, United States Code, relating to defini-
ing to entitlement of eligible candidates to payments) is amended by
tions, is amended-
striking out "computed" and inserting in lieu thereof "allowed".
(1) by striking out paragraph (5)
Pub. Law 93-443
- 30 -
October 15, 1974
October 15, 1974
- 31 -
Pub. Law 93-443
88 STAT. 1292
88 STAT. 1293
(2) The first sentence of subsection (a) (3) of section 9004 of such
(13) Section 9009(b) of such Code (relating to regulations, etc.) 26
USC 9009.
Code (relating to entitlement of eligible candidates to payments) is
is amended-
26 USC 9004.
amended by striking out "computed" and inserting in lieu thereof
(A) by striking out "Comptroller General" and inserting in
"allowed".
lieu thereof "Commission";
26 USC 9002.
(c) (1) Section 9002(3) of the Internal Revenue Code of 1954 (relat-
(B) by striking out "he" and inserting in lieu thereof "it";
ing to the definition of "Comptroller General") is amended to read
and
as follows:
(C) by striking out "him" and inserting in lieu thereof "it".
"(3) The term 'Commission' means the Federal Election Com-
(14) The heading for section 9010 of such Code (relating to par-
26 USC 9010.
mission established by section 310(a) (1) of the Federal Election
ticipation by Comptroller General in judicial proceedings) is amended
Ante, p. 1280.
Campaign Act of 1971.".
by striking out "COMPTROLLER GENERAL" and inserting in lieu
(2) Section 9002(1) of such Code (relating to the definition of
thereof "COMMISSION".
"authorized committee") is amended by striking out "Comptroller
(15) Section 9010(a) of such Code (relating to appearance by
General" and inserting in lieu thereof "Commission".
counsel) is amended-
(3) The third sentence of section 9002 (11) of such Code (relating
(A) by striking out "Comptroller General" and inserting in
to the definition of "qualified campaign expense") is amended by
lieu thereof "Commission";
striking out "Comptroller General" and inserting in lieu thereof
(B) by striking out "his" and inserting in lieu thereof "its";
"Commission".
and
26 USC 9003.
(4) Section 9003 of such Code (relating to condition for eligibil-
(C) by striking out "he" each place it appears therein and
ity for payments) is amended-
inserting in lieu thereof "it".
(A) by striking out "Comptroller General" each place it appears
(16) Section 9010(b) of such Code (relating to recovery of certain
therein and inserting in lieu thereof "Commission"; and
payments) is amended by striking out "Comptroller General" and
(B) by striking out "he" each place it appears therein and
inserting in lieu thereof "Commission".
inserting in lieu thereof "it".
(17) Section 9010(c) of such Code (relating to declaratory and
(5) Section 9003 (b) of such Code (relating to major parties) and
injunctive relief) is amended by striking out "Comptroller General"
section 9003 (c) of such Code (relating to minor and new parties) each
each place it appears therein and inserting in lieu thereof "Commis-
are amended by striking out "Comptroller General" each place it
sion".
appears therein and inserting in lieu thereof "Commission".
(18) Section 9010(d) of such Code (relating to appeal) is amended
26 USC 9005.
(6) The heading for section 9005 of such Code (relating to certifica-
by striking out "Comptroller General" and inserting in lieu thereof
tion by Comptroller General) is amended by striking out "COMP-
"Commission" and by striking out "he" and inserting in lieu thereof
TROLLER GENERAL" and inserting in lieu thereof "COMMIS-
"it".
SION".
(19) The heading for subsection (a) of section 9011 of such Code 26 USC 9011.
(7) Section 9005 of such Code (relating to finality of certifica-
(relating to review of certification, determination, or other action by
tions and determinations) is amended-
the Comptroller General) is amended by striking out "COMPTROLLER
(A) by striking out "Comptroller General" each place it appears
GENERAL" and inserting in lieu thereof "Commission".
therein and inserting in lieu thereof "Commission"; and
(20) Section 9011 (a) of such Code, as amended by paragraph (19)
(B) by striking out "him" and inserting in lieu thereof "it".
(relating to review of certification, determination, or other action by
26 USC 9006.
(8) Section 9006(c) of such Code (relating to payments from the
the Commission) is amended by striking out "Comptroller General"
fund) and section 9006(d) of such Code (relating to insufficient
each place it appears therein and inserting in lieu thereof
amounts in fund) each are amended by striking out "Comptroller
"Commission".
General" each place it appears therein and inserting in lieu thereof
(21) Section 9011 (b) of such Code, (relating to suits to implement
"Commission".
chapter) is amended by striking out "Comptroller General" and in-
26 USC 9007.
(9) Section 9007(a) of such Code (relating to examinations and
serting in lieu thereof "Commission".
audits) is amended by striking out "Comptroller General" and insert-
(22) Section 9012(d) (1) of such Code (relating to false statements, 26 USC 9012.
ing in lieu thereof "Commission".
etc.) is amended-
(10) Section 9007 (b) of such Code (relating to repayments) is
(A) by striking out "Comptroller General" each place it
amended-
appears therein and inserting in lieu thereof "Commission"; and
(A) by striking out "Comptroller General" each place it
(B) by striking out "him" and inserting in lieu thereof "it".
appears therein and inserting in lieu thereof "Commission";
and
CERTIFICATION FOR PAYMENT BY COMMISSION
(B) by striking out "he" each place it appears therein and
SEC. 405. (a) Section 9005 (a) of the Internal Revenue Code of
inserting in lieu thereof "it".
1954 (relating to initial certifications for eligibility for payments) is 26 USC 9005.
(11) Section 9007 of such Code (relating to notification) is
amended to read as follows:
amended by striking out "Comptroller General" and inserting in lieu
(a) INITIAL CERTIFICATIONS.-Not later than 10 days after the
thereof "Commission".
candidates of a political party for President and Vice President of
26 USC 9009.
(12) Section 9009(a) of such Code (relating to reports) is
the United States have met all applicable conditions for eligibility to
amended-
receive payments under this chapter set forth in section 9003, the Ante, p. 1292.
(A) by striking out "Comptroller General" each place it
Commission shall certify to the Secretary for payment to such eligible
appears therein and inserting in lieu thereof "Commission"; and
candidates under section 9006 payment in full of amounts to which Ante, p. 1291.
(B) by striking out "him" and inserting in lieu thereof "it".
such candidates are entitled under section 9004.".
Pub. Law 93-443
- 32 -
October 15, 1974
October 15, 1974
- 33 -
Pub. Law 93-443
88 STAT. 1294
88 STAT. 1295
26 USC 9003.
(b) Section 9003 of such Code (relating to general conditions
"(5) ADJUSTMENT OF ENTITLEMENTS.-The entitlements estab-
for eligibility for payments) is amended—
lished by this subsection shall be adjusted in the same manner as
(1) by striking out "with respect to which payment is sought"
expenditure limitations established by section 608(c) and section
in paragraph (1) and inserting in lieu thereof "of such candi-
608(f) of title 18, United States Code, are adjusted pursuant to
Ante, pp. 1264,
dates";
the provisions of section 608(d) of such title.
1265.
(2) by inserting "and" at the end of paragraph (2)
"(c) USE OF FUNDS.-No part of any payment made under subsec-
(3) by striking out ", and" at the end of paragraph (3) and
tion (b) shall be used to defray the expenses of any candidate or
inserting in lieu thereof a period; and
delegate who is participating in any presidential nominating conven-
(4) by striking out paragraph (4).
tion. Such payments shall be used only-
'(1) to defray expenses incurred with respect to a presidential
FINANCING OF PRESIDENTIAL NOMINATING CONVENTIONS
nominating convention (including the payment of deposits) by or
on behalf of the national committee receiving such payments; or
SEC. 406. (a) Chapter 95 of subtitle H of the Internal Revenue
"(2) to repay loans the proceeds of which were used to defray
Code of 1954 (relating to the presidential election campaign fund) is
such expenses, or otherwise to restore funds (other than contri-
26 USC 9008.
amended by striking out section 9008 (relating to information on pro-
butions to defray such expenses received by such committee) used
posed expenses) and inserting in lieu thereof the following new
to defray such expenses.
section:
'(d) LAMITATION OF EXPENDITURES.-
"SEC. 9008. PAYMENTS FOR PRESIDENTIAL NOMINATING CONVEN-
"(1) MAJOR PARTIES.-Except as provided by paragraph (3),
TIONS.
the national committee of a major party may not make expendi-
"(a) ESTABLISHMENT OF ACCOUNTS.-The Secretary shall maintain
tures with respect to a presidential nominating convention which,
in the fund, in addition to any account which he maintains under
in the aggregate, exceed the amount of payments to which such
Ante, p. 1291.
section 9006 (a), a separate account for the national committee of
committee is entitled under subsection (b) (1).
each major party and minor party. The Secretary shall deposit in
"(2) MINOR PARTIES.-Except as provided by paragraph (3),
each such account an amount equal to the amount which each such
the national committee of a minor party may not make expendi-
committee may receive under subsection (b). Such deposits shall be
tures with respect to a presidential nominating convention which,
26 USC 6096.
drawn from amounts designated by individuals under section 6096
in the aggregate, exceed the amount of the entitlement of the
and shall be made before any transfer is made to any account for any
national committee of a major party under subsection (b) (1).
eligible candidate under section 9006 (a).
"(3) Excertion.-The Commission may authorize the national
(b) ENTITLEMENT TO PAYMENTS FROM THE FUND.-
committee of a major party or minor party to make expenditures
(1) MAJOR PARTIES.-Subject to the provisions of this section,
which, in the aggregate, exceed the limitation established by para-
the national committee of a major party shall be entitled to pay-
graph (1) or paragraph (2) of this subsection. Such authoriza-
ments under paragraph (3), with respect to any presidential nom-
tion shall be based upon a determination by the Commission that,
inating convention, in amounts which, in the aggregate, shall not
due to extraordinary and unforeseen circumstances, such expend-
exceed $2,000,000.
itures are necessary to assure the effective operation of the presi-
"(2) MINOR PARTIES.-Subject to the provisions of this section,
dential nominating convention by such committee.
the national committee of a minor party shall be entitled to pay-
"(e) AVAILABILITY OF PAYMENTS.-The national committee of a ma-
ments under paragraph (3), with respect to any presidential nom-
jor party or minor party may receive payments under subsection
inating convention, in amounts which, in the aggregate, shall not
(b) (3) beginning on July 1 of the calendar year immediately preced-
exceed an amount which bears the same ratio to the amount the
ing the calendar year in which a presidential nominating convention
national committee of a major party is entitled to receive under
of the political party involved is held.
paragraph (1) as the number of popular votes received by the
"(f) TRANSFER TO THE FUND.-If, after the close of a presidential
candidate for President of the minor party, as such candidate, in
nominating convention and after the national committee of the politi-
the preceding presidential election bears to the average number
cal party involved has been paid the amount which it is entitled to
of popular votes received by the candidates for President of
receive under this section, there are moneys remaining in the account
the United States of the major parties in the preceding presiden-
of such national committee, the Secretary shall transfer the moneys
tial election.
so remaining to the fund.
(3) PAYMENTS.-Upon receipt of certification from the Com-
"(g) CERTIFICATION BY Commission.-Any major party or minor
mission under subsection (g), the Secretary shall make payments
party may file a statement with the Commission in such form and man-
from the appropriate account maintained under subsection (a) to
ner and at such times as it may require, designating the national com-
the national committee of a major party or minor party which
mittee of such party. Such statement shall include the information
elects to receive its entitlement under this subsection. Such pay-
required by section 303(b) of the Federal Election Campaign Act of
ments shall be available for use by such committee in accordance
1971, together with such additional information as the Commission
2 USC 433.
with the provisions of subsection (c).
may require. Upon receipt of a statement filed under the preceding
"(4) LIMITATION.-Payments to the national committee of a
sentences, the Commission promptly shall verify such statement
major party or minor party under this subsection from the
according to such procedures and criteria as it may establish and shall
account designated for such committee shall be limited to the
certify to the Secretary for payment in full to any such committee of
amounts in such account at the time of payment.
amounts to which such committee may be entitled under subsection (b).
Such certifications shall be subject to an examination and audit which
Examinat
the Commission shall conduct no later than December 31 of the calen-
and audit.
Pub. Law 93-443
- 34 -
October 15, 1974
October 15, 1974
- 35 -
Pub. Law 93-443
88 STAT. 1296
88 STAT. 1297
dar year in which the presidential nominating convention involved is
TAX RETURNS BY POLITICAL COMMITTEES
held.
"(h) REPAYMENTS.-The Commission shall have the same authority
SEC. 407. Section 6012(a) of the Internal Revenue Code of 1954 26 USC
6012.
to require repayments from the national committee of a major party
(relating to persons required to make returns of income) is amended by
or a minor party as it has with respect to repayments from any eligible
adding at the end thereof the following new sentence: "The Secretary
26 USC 9007.
candidate under section 9007 (b). The provisions of section 9007 (c)
or his delegate shall, by regulation, exempt from the requirement of
and section 9007 (d) shall apply with respect to any repayment
making returns under this section any political committee (as defined
required by the Commission under this subsection.".
in section 301 (d) of the Federal Election Campaign Act of 1971) hav- Ante, p. 1272.
Reports to
(b) (1) Section 9009(a) of such Code (relating to reports) is
ing no gross income for the taxable year.".
Congress.
amended by striking out "and" in paragraph (2) thereof; by striking
26 USC 9009.
out the period at the end of paragraph (3) thereof and inserting in
PRESIDENTIAL PRIMARY MATCHING PAYMENT ACCOUNT
lieu thereof and"; and by adding at the end thereof the following
new paragraphs:
SEC. 408. (a) The analysis of subtitles at the beginning of the
"(4) the expenses incurred by the national committee of a major
Internal Revenue Code of 1954 is amended by adding at the end
party or minor party with respect to a presidential nominating
thereof the following:
convention;
"Subtitle H. Financing of Presidential election campaigns.".
Ante, p. 1294.
"(5) the amounts certified by it under section 9008(g) for pay-
(b) The analysis of chapters at the beginning of subtitle H of such
ment to each such committee; and
Code is amended by striking out the item relating to chapter 96 and
"(6) the amount of payments, if any, required from such com-
inserting in lieu thereof the following:
mittees under section 9008(h), and the reasons for each such
"Chapter 96. Presidential Primary Matching Payment Account.".
payment.".
26 USC 9012.
(2) The heading for section 9012(a) of such Code (relating to
(c) Subtitle H of such Code is amended by striking out chapter 96, 26 USC 9021.
excess campaign expenses) is amended by striking out "CAMPAIGN".
relating to Presidential Election Campaign Fund Advisory Board,
(3) Section 9012(a) (1) by such Code (relating to excess expenses)
and inserting in lieu thereof the following new chapter:
Excess
expenses.
is amended by adding at the end thereof the following new sentence:
"It shall be unlawful for the national committee of a major party or
"CHAPTER 96-PRESIDENTIAL PRIMARY
Presidential
minor party knowingly and willfully to incur expenses with respect
MATCHING PAYMENT ACCOUNT
Primary Match-
to a presidential nominating convention in excess of the expenditure
ing Payment
Account Act.
limitation applicable with respect to such committee under section
"Sec. 9031. Short title.
9008 (d), unless the incurring of such expenses is authorized by the
"Sec. 9032. Definitions.
Commission under section 9008 (3).".
"Sec. 9033. Eligibility for payments.
Unlawful use
(4) Section 9012(c) of such Code (relating to unlawful use of pay-
"Sec. 9034. Entitlement of eligible candidates to payments.
"Sec. 9035. Qualified campaign expense limitation.
of payments.
ments) is amended by redesignating paragraph (2) as paragraph (3)
"Sec. 9036. Certification by Commission.
and by inserting immediately after paragraph (1) the following new
"Sec. 9037. Payments to eligible candidates.
paragraph:
"Sec. 9038. Examinations and audits repayments.
"(2) It shall be unlawful for the national committee of a major
"Sec. 9039. Reports to Congress; regulations.
"Sec. 9040. Participation by Commission in judicial proceedings.
party or minor party which receives any payment under section
"Sec. 9041. Judicial review.
9008(b) (3) to use, or authorize the use of, such payment for any
"Sec. 9042. Criminal penalties.
purpose other than a purpose authorized by section 9008(c).".
"SEC. 9031. SHORT TITLE.
Kickbacks and
(5) Section 9012(e) (1) of such Code (relating to kickbacks and
"This chapter may be cited as the 'Presidential Primary Matching
illegal pay-
illegal payments) is amended by adding at the end thereof the follow-
Payment Account Act'.
ments.
ing new sentence: "It shall be unlawful for the national committee of
"SEC. 9032. DEFINITIONS.
a major party or minor party knowingly and willfully to give or
accept any kickback or any illegal payment in connection with any
"For PURPOSES OF THIS CHAPTER-
expense incurred by such committee with respect to a presidential
"(1) The term 'authorized committee' means, with respect to
nominating convention.".
the candidates of a political party for President and Vice Presi-
(6) Section 9012 (3) of such Code (relating to kickbacks and
dent of the United States, any political committee which is author-
illegal payments) is amended by inserting immediately after "their
ized in writing by such candidates to incur expenses to further
authorized committees" the following: ", or in connection with any
the election of such candidates. Such authorization shall be
expense incurred by the national committee of a major party or minor
addressed to the chairman of such political committee, and a copy
party with respect to a presidential nominating convention.".
of such authorization shall be filed by such candidates with the
(c) The table of sections for chapter 95 of subtitle H of such Code
Commission. Any withdrawal of any authorization shall also be
(relating to the presidential election campaign fund) is amended by
in writing and shall be addressed and filed in the same manner as
striking out the item relating to section 9008 and inserting in lieu
the authorization.
thereof the following new item:
"(2) The term 'candidate' means an individual who seeks nom-
ination for election to be President of the United States. For
"SEC. 9008. Payments for presidential nominating conventions.".
purposes of this paragraph, an individual shall be considered to
26 USC 276.
(d) Section 276 of such Code (relating to certain indirect contribu-
tions to political parties) is amended by striking out subsection (c)
and by redesignating subsection (d) as subsection (c).
Pub. Law 93-443
- 36 -
October 15, 1974
October 15, 1974
- 37 -
Pub. Law 93-443
88 STAT. 1299
88 STAT. 1298
seek nomination for election if he (A) takes the action necessary
nomination of any person for election to the office of President
of the United States.
under the law of a State to qualify himself for nomination for
election, (B) receives contributions or incurs qualified campaign
"(9) The term 'qualified campaign expense' means a purchase,
expenses, or (C) gives his consent for any other person to receive
payment, distribution, loan, advance, deposit, or gift of money or
contributions or to incur qualified campaign expenses on his
of anything of value-
behalf.
((A) incurred by a candidate, or by his authorized com-
(3) The term 'Commission' means the Federal Election Com-
mittee, in connection with his campaign for nomination for
mission established by section 310(a) (1) of the Federal Election
election, and
Campaign Act of 1971.
'(B) neither the incurring nor payment of which consti-
Ante, p. 1280.
"(4) Except as provided by section 9034(a), the term
tutes a violation of any law of the United States or of the
Post, p. 1299.
'contribution'-
State in which the expense is incurred or paid.
"(A) means a gift, subscription, loan, advance, or deposit
For purposes of this paragraph, an expense is incurred by a candi-
of money, or anything of value, the payment of which was
date or by an authorized committee if it is incurred by a person
made on or after the beginning of the calendar year immedi-
specifically authorized in writing by the candidate or committee,
ately preceding the calendar year of the presidential election
as the case may be, to incur such expense on behalf of the candi-
date or the committee.
with respect to which such gift, subscription, loan, advance, or
deposit of money, or anything of value, is made, for the pur-
"(10) The term 'State' means each State of the United States
and the District of Columbia.
pose of influencing the result of a primary election,
"(B) means a contract, promise, or agreement, whether or
"SEC. 9033. ELIGIBILITY FOR PAYMENTS.
not legally enforceable, to make a contribution for any such
"(a) CONDITIONS.-To be eligible to receive payments under section
purpose,
9037, a candidate shall, in writing-
Post, p. 1300.
"(C) means funds received by a political committee which
"(1) agree to obtain and furnish to the Commission any evi-
are transferred to that committee from another committee,
dence it may request of qualified campaign expenses,
and
"(2) agree to keep and furnish to the Commission any records,
"(D) means the payment by any person other than a can-
books, and other information it may request, and
didate, or his authorized committee, of compensation for the
"(3) agree to an audit and examination by the Commission
personal services of another person which are rendered to the
under section 9038 and to pay any amounts required to be paid
candidate or committee without charge, but
under such section.
(E) does not include-
(b) EXPENSE LIMITATION; DECLARATION OF INTENT; MINIMUM
(i) except as provided in subparagraph (D), the
CONTRIBUTIONS.-To be eligible to receive payments under section 9037,
value of personal services rendered to or for the benefit
a candidate shall certify to the Commission that-
of a candidate by an individual who receives no compen-
"(1) the candidate and his authorized committees will not
sation for rendering such service to or for the benefit of
incur qualified campaign expenses in excess of the limitation on
the candidate, or
such expenses under section 9035,
(ii) payments under section 9037.
"(2) the candidate is seeking nomination by a political party
"(5) The term matching payment account' means the Presi-
for election to the office of President of the United States,
dential Primary Matching Payment Account established under
"(3) the candidate has received matching contributions which
Post, p. 1300.
section 9037 (a).
in the aggregate, exceed $5,000 in contributions from residents of
"(6) The term 'matching payment period' means the period
each of at least 20 States, and
beginning with the beginning of the calendar year in which a
"(4) the aggregate of contributions certified with respect to
general election for the office of President of the United States
any person under paragraph (3) does not excee $250.
will be held and ending on the date on which the national conven-
"SEC. 9034. ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS.
tion of the party whose nomination a candidate seeks nominates
"(a) IN GENERAL-Every candidate who is eligible to receive pay-
its candidate for the office of President of the United States, or, in
ments under section 9033 is entitled to payments under section 9037 in
the case of a party which does not make such nomination by
an amount equal to the amount of each contribution received by such
national convention, ending on the earlier of (A) the date such
candidate on or after the beginning of the calendar year immediately
party nominates its candidate for the office of President of the
preceding the calendar year of the presidential election with respect
United States, or (B) the last day of the last national convention
to which such candidate is seeking nomination, or by his authorized
held by a major party during such calendar year.
committees, disregarding any amount of contributions from any per-
"(7) The term 'primary election' means an election, including
son to the extent that the total of the amounts contributed by such
a runoff election or a nominating convention or caucus held by a
person on or after the beginning of such preceding calendar year
political party, for the selection of delegates to a national nomi-
exceeds $250. For purposes of this subsection and section (b), the
"Contribution."
nating convention of a political party, or for the expression of a
term 'contribution' means a gift of money made by a written instru-
preference for the nomination of persons for election to the office
ment which identifies the person making the contribution by full name
of President of the United States.
and mailing address, but does not include a subscription, loan, advance,
"(8) The term 'political committee' means any individual, com-
or deposit of money, or anything of value or anything described in
mittee, association, or organization (whether or not incorporated)
subparagraph (B), (C), or (D) of section 9032(4).
which accepts contributions or incurs qualified campaign expenses
for the purpose of influencing, or attempting to influence, the
Pub. Law 93-443
- 38 -
October 15, 1974
October 15, 1974
- 39 -
Pub. Law 93-443
88 STAT. 1300
88 STAT. 1301
(b) LIMITATIONS.-The total amount of payments to which a can-
"(2) If the Commission determines that any amount of any
didate is entitled under subsection (a) shall not exceed 50 percent of
payment made to a candidate from the matching payment account
the expenditure limitation applicable under section 608 (1) (A) of
was used for any purpose other than-
title 18, United States Code.
"(A) to defray the qualified campaign expenses with
"SEC. 9035. QUALIFIED CAMPAIGN EXPENSE LIMITATION.
respect to which such payment was made, or
"No candidate shall knowingly incur qualified campaign expenses
(B) to repay loans the proceeds of which were used, or
in excess of the expenditure limitation applicable under section 608
otherwise to restore funds (other than contributions to defray
(1) (A) of title 18, United States Code.
qualified campaign expenses which were received and
expended) which were used, to defray qualified campaign
"SEC. 9036. CERTIFICATION BY COMMISSION.
expenses,
"(a) INITIAL CERTIFICATIONS.-Not later than 10 days after a candi-
it shall notify such candidate of the amount SO used, and the candi-
date establishes his eligibility under section 9033 to receive payments
date shall pay to the Secretary or his delegate an amount equal to
under section 9037, the Commission shall certify to the Secretary for
such amount.
payment to such candidate under section 9037 payment in full of
"(3) Amounts received by a candidate from the matching pay-
amounts to which such candidate is entitled under section 9034. The
ment account may be retained for the liquidation of all obligations
Commission shall make such additional certifications as may be neces-
to pay qualified campaign expenses incurred for a period not
sary to permit candidates to receive payments for contributions under
exceeding 6 months after the end of the matching payment period.
section 9037.
After all obligations have been liquidated, that portion of any
"(b) FINALITY OF DETERMINATIONS.-Initial certifications by the
unexpended balance remaining in the candidate's accounts which
Commission under subsection (a), and all determinations made by it
bears the same ratio to the total unexpended balance as the total
under this chapter, are final and conclusive, except to the extent that
amount received from the matching payment account bears to the
they are subject to examination and audit by the Commission under
total of all deposits made into the candidate's accounts shall be
section 9038 and judicial review under section 9041.
promptly repaid to the matching payment account.
"SEC. 9037. PAYMENTS TO ELIGIBLE CANDIDATES.
(c) NOTIFICATION.-No notification shall be made by the Commis-
"(a) ESTABLISHMENT OF Account.-The Secretary shall maintain
sion under subsection (b) with respect to a matching payment period
in the Presidential Election Campaign Fund established by section
more than 3 years after the end of such period.
Ante, p. 1291.
9006(a), in addition to any account which he maintains under such
(d) DEPOSIT OF REPAYMENTS.-All payments received by the Sec-
section, a separate account to be known as the Presidential Primary
retary or his delegate under subsection (b) shall be deposited by him in
Matching Payment Account. The Secretary shall deposit into the
the matching payment account.
matching payment account, for use by the candidate of any political
"SEC. 9039. REPORTS TO CONGRESS; REGULATIONS.
party who is eligible to receive payments under section 9033, the
(a) REPORTS.-The Commission shall, as soon as practicable after
amount available after the Secretary determines that amounts for
each matching payment period, submit a full report to the Senate and
26 USC 9006.
payments under section 9006 (c) and for payments under section
House of Representatives setting forth—
Ante, p. 1294.
9008 (3) are available for such payments.
"(1) the qualified campaign expenses (shown in such detail as
"(b) PAYMENTS FROM THE MATCHING PAYMENT ACCOUNT.-Upon
the Commission determines necessary) incurred by the candidates
Supra.
receipt of a certification from the Commission under section 9036, but
of each political party and their authorized committees,
not before the beginning of the matching payment period, the Secre-
"(2) the amounts certified by it under section 9036 for payment
tary or his delegate shall promptly transfer the amount certified by the
to each eligible candidate, and
Commission from the matching payment account to the candidate. In
"(3) the amount of payments, if any, required from candidates
making such transfers to candidates of the same political party, the
under section 9038, and the reasons for each payment required.
Secretary or his delegate shall seek to achieve an equitable distribution
Each report submitted pursuant to this section shall be printed as a
of funds available under subsection (a), and the Secretary or his dele-
Senate document.
gate shall take into account, in seeking to achieve an equitable distribu-
(b) REGULATIONS, ETc.-The Commission is authorized to prescribe
tion, the sequence in which such certifications are received.
rules and regulations in accordance with the provisions of subsection
"SEC. 9038. EXAMINATIONS AND AUDITS; REPAYMENTS.
(c), to conduct examinations and audits (in addition to the examina- Audits.
"(a) EXAMINATIONS AND AuDITs.-After each matching payment
tions and audits required by section 9038 to conduct investiga-
period, the Commission shall conduct a thorough examination and
tions, and to require the keeping and submission of any books, records,
audit of the qualified campaign expenses of every candidate and his
and information, which it determines to be necessary to carry out its
authorized committees who received payments under section 9037.
responsibilities under this chapter.
"(b) REPAYMENTS.-
(c) REVIEW OF REGULATIONS.-
"(1) If the Commission determines that any portion of the pay-
"(1) The Commission, before prescribing any rule or regula-
ments made to a candidate from the matching payment account
tion under subsection (b), shall transmit a statement with respect
was in excess of the aggregate amount of payments to which such
to such rule or regulation to the Senate and to the House of Rep-
candidate was entitled under section 9034, it shall notify the can-
resentatives, in accordance with the provisions of this subsection.
didate, and the candidate shall pay to the Secretary or his dele-
Such statement shall set forth the proposed rule or regulation and
gate an amount equal to the amount of excess payments.
shall contain a detailed explanation and justification of such rule
or regulation.
Pub. Law 93-443
- 40 -
October 15, 1974
October 15, 1974
- 41 -
Pub. Law 93-443
88 STAT. 1302
88 STAT. 1303
"(2) If either such House does not, through appropriate action,
"(A) to defray qualified campaign expenses, or
disapprove the proposed rule or regulation set forth in such
"(B) to repay loans the proceeds of which were used, or
statement no later than 30 legislative days after receipt of such
otherwise to restore funds (other than contributions to
statement, then the Commission may prescribe such rule or regu-
defray qualified campaign expenses which were received and
lation. The Commission may not prescribe any rule or regulation
expended) which were used, to defray qualified campaign
which is disapproved by either such House under this paragraph.
expenses.
(3) For purposes of this subsection, the term 'legislative days'
'(2) Any person who violates the provisions of paragraph (1)
does not include any calendar day on which both Houses of the
shall be fined not more than $10,000, or imprisoned not more than
Congress are not in session.
5 years, or both.
"SEC. 9040. PARTICIPATION BY COMMISSION IN JUDICIAL PROCEED-
"(c) FALSE STATEMENTS, ETC.-
INGS.
"(1) It is unlawful for any person knowingly and willfully-
"(a) APPEARANCE BY COUNSEL.-The Commission is authorized to
"(A) to furnish any false, fictitious, or fraudulent evi-
appear in and defend against any action instituted under this section,
dence, books, or information to the Commission under this
either by attorneys employed in its office or by counsel whom it may
chapter, or to include in any evidence, books, or information
appoint without regard to the provisions of title 5, United States
SO furnished any misrepresentation of a material fact, or to
5 USC 101
Code, governing appointments in the competitive service, and whose
falsify or conceal any evidence, books, or information relevant
et seq.
compensation it may fix without regard to the provisions of chapter
to a certification by the Commission or an examination and
5 USC 5101,
51 and subchapter III of chapter 53 of such title.
audit by the Commission under this chapter, or
5331.
"(b) RECOVERY OF CERTAIN PAYMENTS.-The Commission is author-
"(B) to fail to furnish to the Commission any records,
ized, through attorneys and counsel described in subsection (a), to
books, or information requested by it for purposes of this
institute actions in the district courts of the United States to seek
chapter.
recovery of any amounts determined to be payable to the Secretary or
"(2) Any person who violates the provisions of paragraph (1)
his delegate as a result of an examination and audit made pursuant to
shall be fined not more than $10,000, or imprisoned not more than
Ante, p. 1300.
section 9038.
5 years, or both.
(c) INJUNCTIVE RELIEF.-The Commission is authorized, through
"(d) KICKBACKS AND ILLEGAL PAYMENTS.-
attorneys and counsel described in subsection (a), to petition the courts
"(1) It is unlawful for any person knowingly and willfully to
of the United States for such injunctive relief as is appropriate to
give or accept any kickback or any illegal payment in connection
implement any provision of this chapter.
with any qualified campaign expense of a candidate, or his
(d) APPEAL-The Commission is authorized on behalf of the
authorized committees, who receives payments under section 9037.
United States to appeal from, and to petition the Supreme Court for
"(2) Any person who violates the provisions of paragraph (1)
certiorari to review, judgments or decrees entered with respect to
shall be fined not more than $10,000, or imprisoned not more than
actions in which it appears pursuant to the authority provided in this
5 years, or both.
section.
"(3) In addition to the penalty provided by paragraph (2),
"SEC. 9041. JUDICIAL REVIEW.
any person who accepts any kickback or illegal payment in con-
"(a) REVIEW OF AGENCY ACTION BY THE Commission.-Any agency
nection with any qualified campaign expense of a candidate or his
action by the Commission made under the provisions of this chapter
authorized committees shall pay to the Secretary for deposit in the
shall be subject to review by the United States Court of Appeals for
matching payment account, an amount equal to 125 percent of
the District of Columbia Circuit upon petition filed in such court
the kickback or payment received.".
within 30 days after the agency action by the Commission for which
review is sought.
REVIEW OF REGULATIONS
"(b) REVIEW PROCEDURES.-The provisions of chapter 7 of title 5,
SEC. 409. (a) Section 9009 of the Internal Revenue Code of 1954 26 USC 9009.
United States Code, apply to judicial review of any agency action, as
(relating to reports to Congress; regulations) is amended by adding
defined in section 551 (13) of title 5, United States Code, by the
Commission.
at the end thereof the following new subsection:
"(c) REVIEW OF REGULATIONS.-
"SEC. 9042. CRIMINAL PENALTIES.
'(1) The Commission, before prescribing any rule or regulation
"(a) EXCESS CAMPAIGN EXPENSES.-Any person who violates the
under subsection (b), shall transmit a statement with respect to
provisions of section 9035 shall be fined not more than $25,000, or
such rule or regulation to the Senate and to the House of Repre-
imprisoned not more than 5 years, or both. Any officer or member of
sentatives, in accordance with the provisions of this subsection.
any political committee who knowingly consents to any expenditure
Such statement shall set forth the proposed rule or regulation and
in violation of the provisions of section 9035 shall be fined not more
shall contain a detailed explanation and justification of such rule
than $25,000, or imprisoned not more than 5 years, or both.
or regulation.
"(b) UNLAWFUL USE OF PAYMENTS.-
'(2) If either such House does not, through appropriate action,
"(1) It is unlawful for any person who receives any payment
disapprove the proposed rule or regulation set forth in such
under section 9037, or to whom any portion of any such payment
statement no later than 30 legislative days after receipt of such
is transferred, knowingly and willfully to use, or authorize the
statement, then the Commission may prescribe such rule or regula-
use of, such payment or such portion for any purpose other
tion. The Commission may not prescribe any rule or regulation
than-
which is disapproved by either such House under this paragraph.
"(3) For purposes of this subsection, the term "legislative days' "Legislative
days."
Pub. Law 93-443
- 42 -
October 15, 1974
88 STAT. 1304
does not include any calendar day on which both Houses of the
Congress are not in session.".
26 USC 9009.
(b) Section 9009(b) of such Code (relating to regulations, etc.) is
amended by inserting "in accordance with the provisions of subsection
(c)" immediately after "regulations".
EFFECTIVE DATES
2 USC 431
SEC. 410. (a) Except as provided by subsection (b) and subsection
note.
(c), the foregoing provisions of this Act shall become effective Jan-
uary 1, 1975.
Ante, P. 1272.
(b) Section 104 and the amendment made by section 301 shall be-
come effective on the date of the enactment of this Act.
Ante, pp.
(c) (1) The amendments made by sections 403 (a), 404, 405, 406,
1291-1294,
408, and 409 shall apply with respect to taxable years beginning after
1297, 1303.
December 31, 1974.
Ante, p. 1297.
(2) The amendment made by section 407 shall apply with respect
to taxable years beginning after December 31, 1971.
Approved October 15, 1974.
LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 93-1239 accompanying H.R. 16090 (Comm. on House
Administration) and No. 93-1438 (Comm. of Conference).
SENATE REPORTS: No. 93-689 (Comm. on Rules and Administration) and
No. 93-1237 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 120 (1974):
Mar. 26, 27, 29, Apr. 1-5, 8-11, considered and passed Senate.
Aug. 7, 8, considered and passed House, amended, in lieu of
H.R. 16090.
Oct. 8, Senate agreed to conference report.
Oct. 10, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 10, No. 42:
Oct. 15, Presidential statement.
Calendar No. 665
93D CONGRESS
2d Session
}
{
REPORT
SENATE
No. 93-689
FEDERAL ELECTION CAMPAIGN ACT
AMENDMENTS OF 1974
FORD
REPORT
OF THE
COMMITTEE ON
RULES AND ADMINISTRATION
(TOGETHER WITH ADDITIONAL VIEWS)
TO ACCOMPANY
S. 3044
TO AMEND THE FEDERAL ELECTION CAMPAIGN ACT OF
1971 TO PROVIDE FOR PUBLIC FINANCING OF PRIMARY
AND GENERAL ELECTION CAMPAIGNS FOR FEDERAL
ELECTIVE OFFICE, AND TO AMEND CERTAIN OTHER
PROVISIONS OF LAW RELATING TO THE FINANCING
AND CONDUCT OF SUCH CAMPAIGNS
FEBRUARY 21 (legislative day, FEBRUARY 19), 1974.-Ordered to be printed
FORD
U.S. GOVERNMENT PRINTING OFFICE
28-517
WASHINGTON : 1974
R.
CONTENTS
Page
Purpose of the bill
1
Need for and argument favoring public financing
4
Public financing is necessary for effective campaign reform
4
Formula grants for qualified general election candidates
5
Matching grants for qualified primary candidates
6
Strengthening political parties
7
Preventing proliferation of splinter parties
8
Fair opportunity for minor parties
8
Preventing Federal interference with a candidate's campaign
9
Public financing will not provide an unfair advantage to incumbent
COMMITTEE ON RULES AND ADMINISTRATION
officials
10
Public financing provisions:
HOWARD W. CANNON, Nevada, Chairman
Primary elections
10
MARLOW W. COOK, Kentucky
General elections
12
CLAIBORNE PELL, Rhode Island
HUGH SCOTT, Pennsylvania
Post-election payments
13
ROBERT C. BYRD, West Virginia
ROBERT P. GRIFFIN, Michigan
Source of public funding
14
JAMES B. ALLEN, Alabama
Additional tax incentives
15
HARRISON A. WILLIAMS, JR., New Jersey MARK O. HATFIELD, Oregon
Role of political parties
15
WILLIAM MCWHORTER COCHRANE, Staff Director
Campaign reform
15
HUGH Q. ALEXANDER, Chief Counsel
Political broadcasting
16
JOSEPH E. O'LEARY, Professional Staff Member (Minority)
Reporting and disclosure
16
JOHN P. CODER, Professional Staff Member
Criminal Code amendments
17
Limits on "independent expenditures"
18
Examples of the application of the public financing provisions to Federal
SUBCOMMITTEE ON PRIVILEGES AND ELECTIONS
elections:
Presidential general elections
22
CLAIBORNE PELL, Rhode Island, Chairman
Senate elections
22
ROBERT P. GRIFFIN, Michigan
Illustrative examples supplied by the General Accounting Office
26
ROBERT C. BYRD, West Virginia
Cost estimates pursuant to section 252(a) of the Legislative Reorganiza-
JAMES H. DUFFY, Chief Counsel
tion Act of 1970
27
JAMES S. MEDILL, Minority Counsel
Results of dollar checkoff
28
Senate campaign fund limitations under Rules Committee bill
29
(II)
Presidential primary
30
U.S. Senate
33
Changes in existing law
39
Rollcall votes in committee
87
ADDITIONAL VIEWS
Additional views of Mr. Pell
89
Additional views of Mr. Griffin
89
(III)
Calendar No. 665
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-689
FEDERAL ELECTION CAMPAIGN ACT AMENDMENTS OF
1974
FEBRUARY 21 (legislative day, FEBRUARY 19), 1974.-Ordered to be printed
Mr. CANNON, from the Committee on Rules and Administration,
submitted the following
REPORT
[To accompany S. 3044]
The Committee on Rules and Administration, having considered an
original bill to amend the Federal Election Campaign Act of 1971 to
provide for public financing of primary and general election cam-
paigns for Federal elective office, and to amend certain other provi-
sions of law relating to the financing and conduct of such campaigns,
reports favorably thereon, and recommends that the bill do pass.
PURPOSE OF THE BILL
This recommended legislation is a comprehensive and far-reaching
measure, designed to bring together various laws already enacted or
passed by the Senate, for the purpose of providing complete control
over and disclosure of campaign contributions and expenditures in
campaigns for Federal elective office, including all public funds which
any candidate may be entitled to receive prior to or after the date of
any election.
During the 92nd Congress (1971-1972) a major new law was enacted
to provide sweeping and thorough control over, and public disclosure
of, receipts and expenditures in both Federal primary elections and
general elections. The new Act, the Federal Election Campaign Act
of 1971 (P.L. 92-225), applies to all elections, all candidates seeking
nomination for election or election to Federal office, and all political
committees raising or spending in excess of $1,000 during a calendar
year for the purpose of influencing or attempting to influence the re-
sults of those elections. Also, it requires candidates and political com-
mittees to file periodic statements and reports of receipts and expendi-
tures with appropriate supervisory officers charged with responsibility
to enforce compliance with the provisions of the Act.
2
3
The Act of 1971 was predicated upon the principle of public dis-
2. Full funding for major party candidates; funding for
closure, that timely and complete disclosure of receipts and expendi-
minor party, new party, and independent candidates-up to
tures would result in the exercise of prudence by candidates and their
full funding-based upon their performance in the last elec-
committees and that excessive expenditures would incur the displeas-
tion or their showing in the present election.
ure of the electorate who would or could demonstrate indignation at
3. Extension of public funding for qualified primary candi-
the polls. Except for the use of the media-radio, television, news-
dates once they have demonstrated broad public support
papers, magazines, outdoor advertising facilities, and banks of tele-
through some means, which might include raising a special
phones-no limitations were imposed upon expenditures by candidates
number of petition signatures asking that the candidate be
or their committees, and no limitation was set upon contributions to
given Federal funding for his campaign.
candidates or committees.
4. Establishing of an overall expenditure limit for both
It was unfortunate that the new Act did not become effective until
general and primary elections.
April 7, 1972, because the scramble to raise political funds prior to
5. Permitting candidates to raise a limited amount of pri-
that date, and thus to avoid the disclosure provisions of the law,
vate funds in very small contributions.
resulted in broad and grave dissatisfaction with the Act and led to a
6. Provision of a role for political parties which would
demand for new and more comprehensive controls.
allow them to serve as a legitimate pooling mechanism for
At the beginning of the 93rd Congress, many bills were introduced
private contributions to candidates in general elections.
providing strict limitations upon contributions and expenditures.
7. Requirement of a central financial reporting and record-
S. 372, the Federal Election Campaign Act Amendments of 1973, was
keeping check point in each candidate's campaign for effective
reported to the Senate after public hearings and study, and following
monitoring.
substantial debate in the Senate, was passed by a vote of 82 to 8, as
8. Administration of campaign financial reporting and dis-
an amendment to the Act of 1971. S. 372 was referred to the House
closure laws and regulations by an independent elections com-
of Representatives for further consideration. but as of the date of
mission with-enforcement powers.
this report, no action has been taken by that body.
Further, with the introduction of specific limitations upon contribu-
On November 16, 1973, Senator Pell, Chairman of the Subcommit-
tions and expenditures, concern developed that major political par-
tee on Privileges and Elections, introduced S. 2718, the Federal Elec-
ties and well-known individuals, including incumbent officeholders,
tion Finance Act, which was then referred to the Committee on Rules
would have greater access and appeal to donors than would minor
and Administration. At that time the Senate was considering the debt
parties and unknown individuals who desired to enter the political
ceiling bill and a public financing proposal which had been offered
arena. Therefore, a movement for the public financing of Federal elec-
as an amendment to that bill by a bipartisan group of nine Senators.
tions evolved in the Senate.
The amendment was adopted by a majority of the Senate. Subse-
Public hearings were held by the Subcommittee on Privileges and
quently, when the Senate was required to recede from its action to add
Elections, chaired by Senator Claiborne Pell, on the 18th, 19th, 20th,
public financing amendments to the debt ceiling bill, a commitment
and 21st of September, 1973. Over 40 witnesses appeared to testify
was made by the Committee on Rules and Administration, through its
in person and to submit lengthy statements in support of public
chairman, Senator Cannon, and other Members, to report to the Senate
financing. A few witnesses appeared in opposition, but the greater pre-
a bill providing for the public financing of Federal elections within
ponderance of testimony was favorable to the concept.
approximately 30 days following the reconvening of the Senate on
Senator Cranston, from the State of California, speaking for a
January 21, 1974.
bipartisan group of more than a third of the Senate membership, sub-
The Pell bill provided the fundamentals, which the Committee con-
mitted a set of principles, eight in number, which they considered to
sidered during the course of its deliberations and mark-up sessions.
be essential tenets of any legislation to provide public financing in
The original bill here reported to the Senate meets the objectives of
Federal elections. The principles were built upon the existing Presi-
the previously mentioned eight principles, and of last year's amend-
dential checkoff plan, which passed the Senate in 1971 under the leader-
ment to the debt ceiling bill. Also, in order to present a comprehensive
ship of Senators Russell Long, from Louisiana, and John Pastore,
coverage of private and public financing, limitations of contributions
from Rhode Island.
and expenditures, and public disclosure of and supervision over the
Those eight principlesare as follows
whole spectrum of Federal election campaigns, the bill incorporates
the following:
1. Extension of the Presidential checkoff concept adopted
Title I-Financing of Federal Campaigns;
in 1971 to provide Treasury financing of qualified candidates
Title II-Changes in Campaign Communications Law and in Re-
that will-enable a candidate to mount an effective campaign
without the need to seek large private contributions; the
porting and Disclosure Provisions of the Federal Election Campaign
Act of 1971;
amount must be sufficient to allow nonincumbents to cam-
Title III-Crimes Relating to Elections and Political Activities:
paign against better-known incumbents; and-there must be
adequate safeguards to insure full and easy public account-
Title IV-Disclosure of Financial Interests by Certain Federal
Officers and Employees; and
ability for the use of private funds.
Title V-Related Internal Revenue Code Amendments.
4
5
Therefore, if enacted, this Committee bill will renew and reempha-
gressional general elections and to primary elections for both Congress
size the disclosure provisions of the Federal Election Campaign Act
and the presidency.
of 1971, as amended in the Senate by the bill S. 372, the Federal Elec-
The only way in which Congress can eliminate reliance on large
tion Campaign Act Amendments of 1973. Moreover, the limitations
private contributions and still ensure adequate presentation to the
set by S. 372 upon contributions and expenditures and the creation in
electorate of opposing viewpoints of competing candidates is through
that bill of an independent Federal Election Commission with pri-
comprehensive public financing.
mary civil and criminal prosecutorial powers, as carried over in this
Modern campaigns are increasingly expensive and the necessary
bill, will help to ensure careful compliance with all provisions.
fundraising is a great drain on the time and energies of the candidates.
The use of a modified dollar check-off as an inducement to tax-
Low contribution limits alone will compound that problem. Many
payers to designate $2 of their tax liability for the Federal Election
candidates-incumbent and challenger alike-will find it exceedingly
Campain Fund, and carry-over of the tax credit or tax deduction in-
difficult to finance an adequate campaign to carry their message to
centives, will serve to encourage broader citizen participation in the
the voters. Drastically reducing the amounts which may be expended
elective process. The doubling of tax credit/tax deduction provisions
by the candidate would ease this burden, but at the cost of increasing
of existing law should also increase citizen support of candidates and
the present disadvantage for non-incumbent challengers and endanger-
parties of their choice.
ing the whole process of political competition.
Moreover, even those candidates who could raise adequate funds
NEED FOR AND ARGUMENT FAVORING PUBLIC FINANCING
under restricted contribution limits would benefit from public financ-
ing. The committee bill would enable them to rely less heavily on those
The bill provides an integrated comprehensive program of campaign
reform, Title I dealing with public financing assistance for federal
relatively few individuals capable of contributing the maximum
elections is the only portion of the bill which has not previously been
amount permitted by law.
Nor does the Committee agree with the argument that public financ-
considered and approved by the Senate.
The Committee recognizes that the issue of public financing has been
ing would be an unwise waste of public monies at a time when control
of the federal budget is essential. The Committee believes the Ameri-
a controversial one for several years, and that our colleagues may have
can voter has now had ample demonstration that the modest cost
a variety of questions regarding the impact and implications of these
proposals. While the Committee has built upon the principles already
per citizen of public financing for federal elections will be as wise
an investment of tax dollars as a democracy can make.
adopted by Congress in the Presidential Campaign Fund of the 1971
The election of federal officials is not a private affair. It is the
Revenue Act, the present bill extends these principles to other parts of
foundation of our government. As Senator Mansfield recently ob-
the electoral process for federal office.
Before proceeding with a detailed discussion of the provisions in this
served, it is now clear that "we shall not finally come to grips with
Title, therefore, it will be useful to indicate the Committee's thinking
the problems except as we are prepared to pay for the public business
in regard to the major issues and contentions which were raised at the
of elections with public funds. (State of the Congress Address, Febru-
hearings.
ary 6, 1974.)
Public financing is necessary for effective campaign reform
Formula grants for qualified general election candidates
There is no question that the public appreciates the pervasive evils
The bill provides nominees of major parties with public financing
of our present system for campaign financing. The potentials for abuse
equal to the full amount of expenditures permitted to be made in a
are all too clear. Americans are looking to Congress for comprehensive,
campaign. Alternative approaches to financing general election campaigns were
effective reform, not for halfway measures that only reach a small part
of the problem-or which may make some present problems even
noted by the Committee, but none provided a satisfactory substitute
for the provisions of the committee bill.
worse.
The Committee is aware of the position, advanced by opponents of
Some suggestions, such as increased mail privileges for both incum-
public financing, that reporting and disclosure rules combined with
bent and challenger, or free radio and television time, are comple-
limits on contributions provide sufficient reform and make it unneces-
mentary to this bill. These suggestions have merit and deserve careful
sary to extend public campaign financing beyond existing law. The
consideration by the appropriate Congressional committees. If they
are enacted, such programs would obviously reduce the remaining
Committee does not agree.
In light of the record made before this Committee during its con-
expenditures a candidate faces. If the cost of the campaign is cut down,
sideration of S. 372, and the hearings on the present legislation, it is
then the amounts of direct public funds which the bill provides for
clear to us that contribution and expenditure limits which would check
may then be proportionately reduced. But the many complex questions
excessive influence of great wealth cannot be effectively and fairly
raised by proposals for free services and other in-kind assistance, need
implemented without a comprehensive system of public campaign
not delay enactment of a comprehensive approach to campaign
financing.
financing.
Other alternatives considered and rejected by the Committee for
Congress has already recognized the desirability of public financing
for Presidential elections. This bill extends this recognition to Con-
reform of general election campaign financing include a system of
28-517-74-2
6
7
matching payments in response to private contributions or a minimum
floor of public assistance with the bulk of campaign costs raised
The threshold fund may merely represent a small nucleus of sup-
privately.
porters and not reflect enough widespread support to warrant size-
The Committee bill embodies the sounder principle that once some-
able federal grants. Therefore, unlike the formula grants available
one becomes an unquestionably serious candidate, by virtue of his being
to party nominees in the general election, primary candidates are only
a major party nominee, he should be assured of adequate financing to
entitled to federal assistance which matches, dollar for dollar, whatever
run a fully informative and effective campaign. The use of matching
private funds they are able to raise.
payments is appropriate in the primary phase, as noted below, when it
Moreover, as in the case of the threshold fund, only $100 of each
is not yet clear who may be the serious candidates and who may be
person's contribution can be matched with federal funds. This limita-
frivolous ones. But such a scheme, or partial public funding, in the
tion encourages a candidate to involve large numbers of voters in the
general election would require candidates who have established their
fundraising process. It also ensures that larger amounts of public as-
legitimacy to devote too much time to endless fund raising at the ex-
sistance will only go to candidates who continue to demonstrate wide-
pense of providing competitive debate of the issues for the electorate.
spread support as the campaign develops.
This would be especially true in view of the $3,000 limit which the
The Committee believes this scheme for financing primary cam-
Senate has imposed on individual contributions and which is carried
paigns is a sound, balanced approach which avoids constitutional dif-
forward in the bill.
ficulties. Candidates are not barred from entering any primary merely
because they have not raised the threshold eligibility fund. They can
Matching grants for qualified primary candidates
still run in the primary and finance their campaign privately. But
If public financing is made available in general elections, the ques-
Congress is not required to fund every candidate, no matter how
tion remains whether it should also be extended to primary election
frivolous, who exercises his constitutional right to enter a party pri-
candidates. Devising fair criteria for eligibility is harder in primary
mary. It may set a reasonable test of minimum support before it com-
elections since no single candidate has won his party's nomination.
mits public moneys to assist a campaign.
The difficulty lies in screening out frivolous candidates who might be
The States have a recognized "interest, if not a duty, to protect the
encouraged to enter by the prospect of a large subsidy, while still pro-
integrity of its political processes from frivolous or fraudulent candi-
viding some assistance to serious candidates with potential for develop-
dacies." Bullock V. Carter 405 U.S. 134, 145 (1971). Surely Congress
ing significant support.
has an equal interest, if not a duty, to ensure that large sums of public
In light of this issue, some witnesses suggested that any public
moneys are not expended on the campaigns of such frivolous
financing be limited to general elections. After reviewing these sugges-
candidacies.
tions, your Committee concluded that meaningful reform of our cam-
Several other concerns have been raised in regard to the enactment
paign financing practices requires inclusion of primary elections.
of comprehensive public financing legislation for Federal elections.
Unless primary election candidates can be relieved of their excessive
These are discussed briefly below.
dependence on large amounts of private money, a system of public
financing in general elections will only move the evils it seeks to rem-
Strengthening political parties
edy upstream to the primary phase of the electoral process.
The Committee was cautioned by several witnesses to examine the
It will be difficult to justify the expenditure of public money to help
relationship between campaign finance legislation and political par-
purify that process, if candidates must still raise the full cost of expen-
ties. Your Committee agrees that a vigorous party system is vital to
sive campaigns from private contributors, in order to win the nomina-
American politics and has given this matter careful study.
tion in the first place.
Under the Committee bill, parties will retain their essential non-
If a reasonable portion of these costs are defrayed by public assist-
financial responsibilities in electoral politics. More important, the bill
ance, candidates for nomination will be able to raise the remainder on
retains the role of political parties in private financing for federal
a truly "grass roots" basis without relying SO heavily on those who are
candidates.
wealthy enough to give the maximum contributions permitted each
Public grants will go directly to candidates in the manner Congress
person under this act.
has already established for the Presidential Campaign Fund of the
The bill provides significant public financing for primary candi-
1971 Tax Act. This also reflects the present pattern of private fund-
dates, up to one-half the total expenditures they are permitted. Such
raising, since candidates receive the bulk of their contributions di-
assistance is limited to those who demonstrate they are serious candi-
rectly from the public, rather than from parties.
dates by raising a threshold eligibility fund in small amounts from
However, the Committee recognizes that pooling resources from
many contributors. No more than $100 from the contribution of any
many small contributors is a legitimate function and an integral part
person may be counted. The Committee believes the use of small con-
of party politics. Accordingly, the bill includes a special provision
tributions is the best practicable test for such support. This fund will
for private funding by political parties. In a general election, candi-
establish the candidate's initial credibility and qualify him for federal
dates may not accept direct contributions if they accept the full level
assistance. But this test does not determine the total amount of federal
of public assistance. But they may receive substantial private fund-
funding he will actually receive.
ing, in addition to the public grant, in the form of expenditures by
state and national party committees.
8
9
The bill insures that such party assistance actually represents the
First, minor candidates may raise proportionately more private
involvement of many voters and not merely the influence of a wealthy
funds than may a major party nominee receiving greater federal assist-
few. It prevents evasion of the individual contribution limits by per-
ance. Therefore, the total amount which each candidate would be per-
sons funneling large gifts through party committees; each person's
mitted to spend would remain equal. Second, if the minor party's tally
donation to party funds used to assist federal candidates under this
in the election is better than past performances, the candidate would
special provision must not exceed the maximum amount he could give
receive a post-election entitlement increasing his federal grant to re--
directly to a candidate.
flect the actual level of support indicated at the polls. This supplement
Thus, parties will play an increased role in building strong coali-
could be used to pay outstanding campaign obligations or to reimburse
tions of voters and in keeping candidates responsible to the electorate
loans and contributions.
through the party organization.
Both of these provisions, too, follow the principles established by
In addition, parties will continue to perform crucial functions in the
Congress in the 1971 Tax Act for Presidential election financing.
election apart from fundraising, such as registration and voter turnout
In short, minor parties will retain their present opportunity-one
campaigns, providing speakers. organizing volunteer workers and pub-
constitutionally required-to grow into a major political force if their
licizing issues. Indeed, the combination of substantial public financing
support is widespread and not a transient phenomenon. As the United
with limits on private gifts to candidates will release large sums pres-
States Supreme Court has noted, the legitimate interest in preserving
ently committed to individual campaigns and make them available
the benefits of two major parties does not justify laws which would
for donation to the parties, themselves. As a result, our financially
choke off competition by other parties with potential appeal to the
hard-pressed parties will have increased resources not only to conduct
electorate.
party-wide election efforts, but also to sustain important party opera-
The bill complies with this requirement. It does not prevent minor
tions in between elections.
parties from placing candidates on the ballot or from organizing re-
Preventing proliferation of splinter parties
sources to support them. It does not freeze the political status quo.
The bill also provides a balanced approach to the difficult issues
Compare Williams V. Rhodes 393 U.S. 23 (1968), with Jeness V.
posed by minor parties.
Fortson 403 U.S. 431 (1971).
On the one hand, the Committee bill would not stimulate a prolifera-
The Supreme Court has recognized and approved reasonable differ-
tion of splinter parties or independent candidates. Such a proliferation
ences in the treatment of major and lesser parties based on their dem-
would undermine the stability provided by a strong two-party system
onstrated relative strength, observing:
and could polarize voters on the basis of a single volatile issue.
"Sometimes the grossest discrimination can lie in treating things
All but fringe candidates would have an incentive to seek a major
that are different as though they were exactly alike. (Jeness V.
party nomination, rather than run as a minor party candidate, SO as to
Fortson, supra 403 U.S. at 442.)
be eligible for the full level of public assistance in the general election.
The Committee believes the reasonable difference in assistance
The bill would thereby have a cohesive effect, encouraging different
available to major and minor parties, in conjunction with other pro-
factions to compete and work out coalitions within the framework of a
vision to provide a fair opportunity for minor parties to demonstrate
basic two-party system.
their strength and to increase it, provide a responsible scheme for
If a candidate's supporters clearly constitute a mere fringe group,
public financing of all parties which is constitutional.
with no prospect of appealing to a large mass of voters, then he may
Preventing Federal interference with a candidate's campaign
choose to run as a minor party candidate. But it is unlikely he would
When other arguments fail, opponents of any program to subsidize
raise many matchable contributions, in the event his party had a pri-
a private activity vital to the public interest have always raised the
mary. And in the general election, he will only be eligible for a grant
specter of "federal control." Predictably, some opponents of cam-
based on his party's prior voting record.
paign reform have followed suit, arguing that public campaign
Fair opportunity for minor parties
financing will lead to bureaucrats in Washington telling candidates
At the same time, minor parties with significant support are eligible
how to run their campaigns.
to receive a fair share of public assistance commensurate with their
This objection is unfounded. The bill makes clear that candidates
proven political strength.
are permitted full flexibility and discretion in their election efforts,
Under the bill the subsidy for minor parties would only be a fraction
subject only to limitation on the dollar amounts of expenditures and
contributions.
of the amount available to major party nominees, determined by the
ration of the minor party's showing in the previous election to that of
In the first place, candidates for the Senate or House of Representa-
the major parties. This formula follows the Presidential election check-
tives are free to use all or some or none of the public campaign funds
off of the 1971 Tax Act.
to which they are entitled. If a candidate elects to accept less than
This smaller subsidy would, however, be offset by two provisions,
the full grant to which he is entitled in the general election, he is
which serve as safety valves to ensure fair opportunity for minor
free to raise privately the difference between the federal aid he does
parties without unduly promoting their proliferation or inducing entry
accept and his overall expenditure limit.
into contests which otherwise would not have been made.
10
11
Equally important, the Committee has resisted any suggestion that
those who accept federal campaign funds be obligated to conduct
tions by individuals or others-only the first $250 of any such contri-
their campaign in particular ways, or to use the federal moneys for
bution would be counted toward the base or threshold fund required.
specific purposes that some may think are most useful to the electorate.
The threshold fund would be required to be raised by a Presidential
Whether they qualify for public assistance and accept it, or not, all
candidate only once-the first primary entered.
candidates are free to "do their own thing": to decide how they will
While the use of loans in the campaign process is accepted, in ac-
conduct their campaign and employ their financial resources.
cordance with the provisions of existing law, including the disclosure
Since public assistance will be granted in accordance with auto-
of any loans made to or on behalf of any candidate, the Committee
matic formulas-on either a matching or cent-per-voter basis-the
believes that no loan should be counted in determining whether a
candidate has raised his threshold amount.
statute requires uniform treatment and prevents discriminatory fund-
ing in favor of any candidate or party. The actual disbursement and
To demonstrate a genuine appeal to the electorate the candidate
audit of public campaign funds would be overseen by the Independent
must raise his threshold from committed gifts, instead of mere loans
Elections Commission, which itself is subject to judicial review of
which could be repaid from public funds after the threshold is raised.
alleged discrimination.
If the threshold could be raised from loans, in whole or in part, the
spirit of the law would be violated.
Public financing will not provide an unfair advantage to incumbent
Loans have their place and may be used for any other purpose dur-
officials
ing the entire period of election campaigning except for the raising of
Opponents of comprehensive campaign reform have even suggested
the "seed money" or threshold fund required to be raised by each
that campaign finance legislation would aggravate any inherent
candidate who desires to receive matching Federal funds in primary
advantages which incumbent elected officials now hold over their
elections for Federal office.
election opponents. While some schemes involving public financing
Once having met the required threshold, the candidate would be
may be envisaged for which this is true, this is clearly not such a
eligible to receive an equal or matching amount from the Treasury.
bill.
And, thereafter, each dollar contribution up to $250 would qualify the
Indeed, an incumbent concerned with preserving his obvious advan-
candidate to receive equal matching funds from the government until
tages over nonincumbent challengers might vote against the Commit-
he reaches the limit set for the amount he may spend in any primary
tee bill since it will increase the chance of meaningful competition
election. That limit, as provided by the bill S. 372, and incorporated
between the candidates.
in this bill, is 10 cents multiplied by the voting age population of the
As indicated above, lower limits on campaign contributions, by
geographic area in which an election is to be held, except, that in the
themselves, would serve to increase the advantages incumbents pres-
case of Presidential Primary Elections, the limit is doubled for any
ently have in fundraising. However, the bill provides sufficient public
given State. That is, the Presidential Preference Primary candidate
funds for both nominees SO that this problem is eliminated.
may spend for any primary election in a particular State twice the
amount that a candidate running for nomination to the Senate in that
PUBLIC FINANCING PROVISIONS
State may spend. (See table on page 30.)
The reason for allowing Presidential Preference Primary candi-
Primary elections
dates to exceed the limit set for any particular State, in contrast to the
Title I of the bill affords an equal and fair opportunity to candi-
limit set for candidates for the Senate nomination or Representative
dates of major, minor, or other parties, to obtain a certain amount of
at Large nomination, is to give an unknown individual the opportun-
public financing from the Treasury of the United States if they can
ity to compete with one who enjoys a national identity or who is well
demonstrate a reasonable amount of support from the electorate in
known in a particular area of the nation.
any geographic area in which an election is held and in which they in-
However. the bill S. 372 set an aggregate or overall limit on the
tend to run for nomination for election or for election to Federal
amount which could be spent for the entire nominating process by a
office. Any candidate who has a bona fide following who will make
candidate seeking nomination to the office of President of the United
contributions to him or his authorized political committees sufficient
States, and that overall limit is retained for that purpose in this bill,
to meet the base amounts set by the title, is entitled to receive match-
i.e. 10 cents times the voting age population of the United States for
ing payments from the government. Further, those contributions,
the entire nomination period.
under the bill, are eligible for matching payments only up to certain
In calculating and auditing expenditures made from contributions
limits.
received from private donors, every contribution up to and including
Any candidate who participates in, or who qualifies under State law
$3,000 would be counted for the purpose of determining the total
to participate in, a Presidential Preference Primary and who desires
spending limitation. But, for the purpose of determining eligibility
to receive public financing from the Federal Government. must raise
to receive public financing, only those private contributions up to $250
a threshold or "earnest money" fund before becoming eligible for the
would be counted.
receipt of any public assistance.
Any candidate who qualifies, under the law of the State in which
The threshold amount is $250,000. While contributions may be re-
he seeks nomination, to seek nomination for election for the office of
ceived up to $3,000-which is the limit allowed by S. 372 on contribu-
United States Senator, Delegate, Resident Commissioner, or Repre-
13
12
graphic area in which the election is to be held), as carried over into
sentative from a State having only one Representative must also raise
this public financing bill.
a threshold or earnest-money base fund in order to be eligible to receive
A minor party is defined to mean any political party whose candi-
Federal matching funds.
dates for President and Vice President in the preceding election re-
Such a candidate would be required to raise an amount equal to the
ceived at least 5 percent but less than 25 percent of the total number
lesser of 20 percent of the maximum amount he may spend in his pri-
of popular votes cast in the United States for all candidates for such
mary election, or $125,000. S. 372 set the limitation upon the amount
offices.
which a candidate for nomination for election to the Senate may spend.
A candidate nominated by a minor party would be eligible for public
It is the amount to be obtained by multiplying 10 cents times the voting
funding up to an amount which is in the same ratio as the average
age population for the geographic area (the State), but not less than
number of popular votes cast for all the candidates of the major party
$125,000. The $125,000 base was established as a reasonable mini-
bears to the total number of popular votes cast for the candidate of the
mum for expenditures by candidates of those States having small
minor party.
populations.
Where only one political party qualifies as a major party, then
Therefore, the 20 percent threshold amount would begin with the
that party whose candidate for election to a particular office at
$125,000 base and rise to the maximum, but for those States having
the preceding general election received the next greatest number of
very large populations, i.e., California, New York, etc., the maximum
votes (but not less than 15 percent of the total number of votes cast)
threshold figure would be $125,000. So, a candidate for nomination to
shall be treated as a major party and entitled to receive full
the Senate would be required to raise an amount not less than 20 per-
public funding as such for the current election. There are States in
cent of the base ($125,000), or $25,000, but not more than the maximum
which one political party or the candidate of a political party is SO
for eligibility, or $125,000. (See table on page 33.)
popular or dominant as to render, in fact, all other parties minor
For the Senate, as for the House of Representatives, only those in-
parties, whether Democratic or Republican. Therefore, this provision
dividual contributions not in excess of $100 would qualify for public.
will help to ensure the equal entitlement of the Democratic and Re-
matching funds.
publican parties, except in very rare instances where one of those
Once having met the threshold, all additional dollar contributions
parties would rank third.
not in excess of $100 would qualify for matching Federal payments up
The bill also takes into consideration the candidate who ran at the
to the limitation which a candidate for nomination to the Senate may
preceding election as a Democrat or Republican and received more
spend in any State.
than 25 percent of the votes cast and who then runs at the following
A candidate for nomination for election to the House of Representa-
election as an independent. When such a candidate switches from one
tives must raise a threshold amount of $10,000. The threshold is the
party to another he does not carry with him the "track record", i.e.
same for all candidates seeking nomination for election to the House,
votes cast at the last general election, when he runs under another
except for those running in the States having only one Representative,
party label. He would be entitled to payments as an independent only
or in the District of Columbia. The $100 limit on contributions eligible
if he receives at least 5 percent of the votes at the current election and
for matching payments applies as it does for the Senate.
his payments would be in reimbursements after the election, not before.
Where separate run-off elections must be held to determine nominees
If that candidate runs again as an independent at the succeeding
for the Senate or the House of Representatives, the same provisions
general election, and if he received more than 25 percent of the vote as
shall apply.
an independent at the preceding general election, then he would be
All candidates seeking nomination for election to the offices of Presi-
eligible for full public funding.
dent, Senator, or Representative, have the option of soliciting all
If a candidate of a minor party whose candidate for election to a
private contributions up to the limitation on spending if they SO
given Federal office at the preceding general election received at least
choose, or seeking both private and public matching funds. Total
5 percent of the votes cast for all candidates for that office, he will be
public financing of primary elections is not provided.
entitled to receive public funds on a pro rata basis, and if at the current
General elections
election that candidate receives more than 5 percent of the total votes
Candidates participating in general election campaigns are treated
cast, then he will be entitled to receive additional payments, as reim-
bursements to reflect the additional voter support.
differently depending upon whether they are the nominees of major
In the general election, candidates may choose to receive all private
or minor parties having previous voting records, or of minor parties
contributions and no public funding, a blend of private and public
having no previous voting records.
funding within the limitations on expenditures for general elections
A major party is defined as one whose candidates for President and
as set forth in the bill, or, in the case of major party candidates ex-
Vice President in the preceding election received at least 25 percent
clusively public funding.
of the total number of popular votes cast in the United States for all
candidates for such offices.
Post-election payments
A candidate nominated by a major party would be eligible to receive
Post-election payments areavailable to candidates in 2 situations.
full public funding in his campaign for election up to the limit set
First, if a minor party candidate or an independent candidate who
by the bill S. 372 (15 cents times the voting age population of the geo-
is entitled to payments before the election in an amount which is less
08-827-78-8
14
15
than the amount payable to the candidate of a major party before the
Authority is provided for the appropriation of additional amounts if
election receives a greater percentage of the votes than the eandidate
of his party received in the last election (when compared to the aver-
necessary. The Internal Revenue Code of 1954 is amended to provide for the
age percentage received by a major party candidate in that election),
automatic designation of $2 of income tax liability of every individual
he is entitled to receive an additional amount after the election. For
whose income tax liability is $2 or more for the taxable year to the
example, if the average percentage of the votes received by a major
Federal Election Campaign Fund, unless the individual elects not to
party candidate in the preceding election was 30 percent and the minor
make such a designation. In the case of a joint return of a husband
party candidate received 15 percent of the votes in that election, the
and wife having an income tax liability of $4 or more, each spouse is
candidate of the minor party in the current election is entitled to a
considered to have designated that $2 shall be paid over to the fund
pre-election payment of half the amount to which a major party candi-
unless he elects not to make such a designation.
date is entitled. If the minor party candidate in the current election
If the taxpayer designations of $2 per individual of tax liability
receives 40 percent of the vote and the average percentage received by
result in a sufficient total fund to meet the requirements of all candi-
the major party candidates is still 30 percent, the minor party candi-
dates entitled to receive public financing, then the Congress may
date is entitled to a post-election payment equal to the amount of the
appropriate that amount for distribution by the Secretary of the
pre-election payment to which the major party candidates were each
Treasury. If the amounts of designated tax payments to the fund
entitled, reduced by the amount of any payments he received before
do not result in a sufficient total amount to fulfill the entitlements of
the election and the amount of any contributions he received for use
all qualified candidates, then the Congress may appropriate such
in his campaign. If his pre-election payment and his contributions,
additional sums as may be necessary to make up any deficit.
added together, equal the spending limitation for that race the amount
In the event that insufficient funds are available to meet the
of his post-election payment is zero. If the sum of his pre-election pay-
entitlements of candidates, and the Congress had not acted to appro-
ment and the contributions equals 90 percent of the spending limita-
priate amounts necessary to meet the entitlements of candidates, then
tion, his post-election payment is 10 percent of the spending limita-
such candidates may receive private contributions.
tion.
Any private contribution received would be limited to the ceilings
Second, a candidate who is not the nominee of a major or minor
established by the bill upon contributions from individuals or politi-
party and who did not receive more than 5 percent of the votes in the
cal committees and subject further to the amount of public financing,
most recent general election for the same office, is not entitled to re-
if any, that the candidate is entitled or elects to receive.
ceive any pre-election payments. If he takes the same steps before the
election to become eligible for payments that other candidates must
ADDITIONAL TAX INCENTIVES
take in order to receive pre-election payments, then, if he receives 5
percent or more of the votes in the current election he is entitled to a
The Internal Revenue Code would be amended SO as to allow an
payment after the election which bears the same ratio to the maximum
individual who has made a political contribution to a candidate or
payment (equal to the spending limitation) as the number of votes he
political committee or political party during a calendar year to claim
receives bears to the average number of votes a major party candi-
in his tax return for that year a tax credit or a tax deduction.
date receives. The post-election payment is reduced by the amount of
The tax credit is limited to one half of the amount of the contribu-
contributions he receives for use in his campaign.
tion made and to $25 per individual, or $50 on a joint return.
The rules under which the post-election payment may be used are
The tax deduction is limited to $100 per individual.
basically these:
Thus these tax incentives would double the provisions set forth in
(1) The candidate cannot incur campaign expenditures in ex-
the existing law as they were enacted in the Revenue Act of 1971.
cess of the amount of his limitation under proposed section 504.
The limitation there is the same as the limitation that would
ROLE OF POLITICAL PARTIES
apply if he were receiving pre-election public financing of his
campaign.
Emphasis in this bill is placed upon candidates. But, to preserve the
(2) The post-election payment may be used only to pay out-
place of political parties in the elective process the bill provides that
standing campaign debts.
the National Committee of a political party may spend for political
(3) The candidate is regarded as having no outstanding cam-
purposes an amount not in excess of the amount to be obtained by
paign debts until he has spent all the amounts he received as
multiplying 2 cents by the voting age population of the United States.
contributions.
A State Committee of a political party may spend an amount to be:
(4) Any part of the post-election payment which is left after
obtained by multiplying 2 cents by the voting age population of the
paying his campaign debts must be returned to the Treasury for
State in which it functions.
deposit back into the fund.
CAMPAIGN REFORM
SOURCE OF PUBLIC FUNDING
Title II of the bill contains in part the text of S. 372 (the Federal
Appropriations may be made by the Congress based on the amounts
Election Campaign Act of 1973) which was passed by the Senate on
taxpayers have designated for the fund under the checkoff system.
July 30, 1973.
16
The Committee amendments to S. 372 do not affect any of the sub-
17
stantive provisions relating to limitations upon contributions or limi-
tations upon expenditures in primary or general elections. The amend-
(2) increases penalties for violations of reporting and disclo-
ments, instead, are intended to remove from the text only those matters
sure requirements to a maximum of $100,000 and five years im-
which were considered nonessential or which duplicated other pro-
prisonment for a knowing violation;
visions of the bill, or which were changed by subsequent action of
(3) requires that no expenditure in excess of $1,000 can be made
the Congress. For example, the section prohibiting mass mailing of
in connection with a Presidential campaign unless that expendi-
newsletters, etc., within 60 days prior to the date of any election, was
ture has been approved by the Chairman of the national commit-
made unnecessary by the enactment of Public Law 93-191, December
tee of the political party or his delegate; and
18, 1973, regulating the use of the frank.
(4) provides that excess campaign contributions may be used
Title II, in general contains provisions-
by a person elected to Federal office to defray expenses incurred
relating to political broadcasting, and
in connection with that office or as a contribution to a charity.
revising title III of the Federal Election Campaign Act of
1971 (relating to reporting and disclosure).
CRIMINAL CODE AMENDMENTS
POLITICAL BROADCASTING
Chapter 29 of title 18, United States Code (relating to political ac-
tivities), is amended by Title II of the bill-
The bill includes also the provisions of S. 372 which repeal the Cam-
(1) to make certain minor changes in the definitions of "elec-
paign Communications Act, imposing limitations on amounts spent
tion", "political committee", "contribution", and "expenditure";
by candidates for Federal office for the use of broadcast and printed
(2) to revise the provisions of section 608 (relating to limita-
media in their campaigns. It also amends the Communications Act of
tions on contributions and expenditures by a Federal candidate
1934
from his own funds and his family's funds) by making the dollar
(1) to remove Federal candidates from the equal time require-
limitations applicable to total campaign expenditures during a
ments of section 315 of that Act.
calendar year, requiring loans or advances by the candidate or
(2) to require broadcasters to demand a certification by any
his family to be evidenced by a written instrument, including only
Federal candidate, before charging him for broadcast time, indi-
the outstanding balances of such loans or advances in the compu-
cating that the payment of charges for that time will not exceed
tation of the limitation, and increasing the penalty for violations
his expenditure limit under title 18, United States Code, and to
to a maximum of $25,000 fine and five years imprisonment;
apply this provision to State and local candidates wherever similar
(3) to amend section 611 (relating to contributions by Govern-
limits are imposed on them by State law; and
ment contractors) to permit Government contractors to maintain
(3) to require broadcasters to make certain announcements and
separate segregated funds for voluntary contributions in the same
keep certain records in connection with political broadcasts.
manner as a non-Government corporate contractor may;
(4) to limit Federal campaign expenditures to the limits estab-
REPORTING AND DISCLOSURE
lished for candidates who elect to receive public financing, i.e.-
(A) in the case of primary election campaigns, the
Title II of the bill is concerned with a general revision of title III of
greater of-
the Federal Election Campaign Act of 1971 (relating to the disclosure
(i) 10 cents multiplied by the voting age population
of Federal campaign funds).
of the State or Congressional district, or
The bill establishes an independent Federal Election Commission
(ii) $125,000 (in the case of a candidate for Senator,
within the executive branch to enforce the reporting and disclosure re-
Resident Commissioner, Delegate, or sole Representa-
quirements of the 1971 Act and to enforce certain provisions of chap-
tive), or $90,000 (in the case of a candidate for Rep-
ter 29 of title 18, United States Code (relating to crimes related to
resentative from a State entitled to 2 or more
political activity). The Commission is given broad powers of enforce-
Representatives);
ment, including the power to make presentations to Federal grand
(B) in the case of general election campaigns, the
juries and to prosecute criminal cases.
greater of-
In addition to a number of changes in the details of the reporting
and disclosure requirements of the 1971 Act, Title II-
(i) 15 cents multiplied by the appropriate voting age
population, or
(1) requires a candidate for Federal office to designate a cen-
(ii) $175,000 (in the case of a candidate for Senator,
tral campaign committee to serve as his central reporting and dis-
Resident Commissioner, Delegate, or sole Representa-
closure agent, and to designate campaign depositories into which
all contributions and any public financing payments must be de-
tive), or $90,000 (in the case of a candidate for Rep-
resentative from a State entitled to 2 or more Repre-
posited and out of which all campaign expenditures (other than
sentatives) ; and
petty cash) must be made;
(C) in the case of a candidate for nomination as a Presi-
dential candidate, or for election as President, the amount
allowable in each State in which he campaigns is twice the
18
19
amount which would be allowable to a candidate for nomina-
do financial contributions to a campaign fund. Nevertheless, to pro-
tion for election to the Senate from that State subject to an
hibit a $60,000 direct contribution to be used for a TV spot commercial
overall limitation for expenditures throughout the United
but then to permit the would-be contributor to purchase the time him-
States of 10 cents multiplied by the voting age;
self, and place a commercial endorsing the candidate, would exalt con-
(5) to limit political contributions by individuals to Federal
stitutional form over substance. Your Committee does not believe the
candidates to a yearly maximum of-
First Amendment requires such a wooden construction.
(A) $3,000 for each primary and general election cam-
If Congress may, consistent with the First Amendment, limit con-
paign of any particular candidate, and
tributions to preserve the integrity of the electoral process, then it also
(B) $25,000, in the aggregate, for all contributions to
can constitutionally limit independent expenditures in order to make
Federal candidates and to political committees that support
the contribution limits effective.
them;
At the same time, the bill avoids some of the constitutional issues in
(6) to limit independent political expenditures by anyone
this area encountered by previous legislation. The 1971 Federal Elec-
(other than the national committee or State committee of a politi-
tion Campaign Act deals with such independent efforts by requiring
cal party, or one of the Congressional campaign committees) to
candidate approval before the media may accept advertisements from
$1,000 per year for each candidate;
any source which promote his candidacy. See ACLU V. Jennings, CA.
(7) to limit general election expenditures by a political party
No. 1967-72 (Three-judge court, D.C. Dist. Col.) In contrast, the Com-
to 2 cents multiplied by the voting age population of the United
mittee bill does not require this candidate "sign off.' Nor does it in-
States, in the case of a national committee of a political party, or
clude unauthorized expenditures in the total spending limit imposed
in the State, in the case of a State committee.
on the candidate.
(8) to prohibit contributions in excess of $100 other than by a
Limiting the amount of independent expenditure someone may
written instrument identifying the contributor; and
make in support of a candidate, but not counting such amounts for
(9) to prohibit the embezzlement or conversion of political
purposes of the overall spending limit of the candidate, is the best
contributions.
compromise of competing interests in free speech and effective cam-
paign regulation.
LIMITS ON "INDEPENDENT EXPENDITURES"
It controls undue influence by a group or individual. Yet it avoids
the dilemma of either giving candidates a veto over such independent
The bill retains the limits on independent expenditures already
expression or subjecting the candidate to the independent decisions of
adopted by the Senate in S. 372. The Committee finds these limits are
his supporters, even if he prefers using his permitted expenditure in
both necessary and constitutional. "Independent expenditures" refer to
other ways.
sums expended on behalf of a candidate without his authorization, as
Thus, the bill preserves to everyone some right of political expres-
distinct from contributions of money, goods or services put at the dis-
sion, which they can undertake regardless of whether the candidate
posal of his campaign organization.
has already used up his permitted expenditures and regardless of
For example, a person might purchase billboard advertisements en-
whether the expression they wish to make on the candidate's behalf
dorsing a candidate. If he does SO completely on his own, and not at
"fits in" with his campaign plan.
the request or suggestion of the candidate or his agent's that would
Finally, your Committee has been careful to preserve inviolate every
constitute an "independent expenditure on behalf of a candidate"
citizen's ability to communicate to anyone his views on political issues.
under section 614 (c) of the bill. The person making the expenditure
Expenditures made by a person or group to communicate such views,
would have to report it as such.
if the communication does not advocate specific candidates, count
However, if the advertisement was placed in cooperation with the
neither as direct contributions, nor as independent expenditures on
candidate's campaign organization, then the amount would constitute
behalf of a candidate.
a gift by the supporter and an expenditure by the candidate-just as if
there had been a direct contribution enabling the candidate to place
EXAMPLES OF THE APPLICATION OF THE PUBLIC FINANCING PROVISIONS
the advertisement, himself. It would be SO reported by both.
TO FEDERAL ELECTIONS
While independent expenditures pose a difficult question, it should
be emphasized that the need to control them does not arise from pub-
There are elections which do not present the conventional situation
lic financing. Whether campaigns are funded privately or publicly
of a choice between 2 major party candidates. It is also true that,
such controls are imperative if Congress is to enact meaningful limits
from time to time, a candidate changes his political party affiliation.
on direct contributions. Otherwise, wealthy individuals limited to a
The following examples illustrate the application of the provisions of
$3,000 direct contribution could also purchase one hundred thousand
the bill to such elections and candidates.
dollars' worth of advertisements for a favored candidate. Such a
loophole would render direct contribution limits virtually meaning-
Example No. 1
less.
In a 1984 election for the Senate, Mr. Apple is the candidate of
Admittedly, expenditures made directly by an individual to urge
political party A, political party B, and political party C. His op-
support of a candidate pose First Amendment issues more vividly than
ponent, Mr. Orange, is the candidate of political party D. When the
21
20
receive part of the amount as the candidate of each party would de-
votes are counted, Mr. Apple has received 55 percent of the total num-
pend upon the circumstances under which he certified his candidacy
ber of votes. He received 20 percent of the vote as the candidate of
and upon the arrangements he made with each party.
party A, 20 percent of the vote as the candidate of party B, and 15
Since Mr. Orange, as the candidate of party D, received 45 percent
percent of the vote as the candidate of party C. Mr. Orange, as the
of the votes in the 1984 contest, the candidate of party D in the 1990
candidate of party D, received 45 percent of the vote.
contest is entitled to receive a payment of $200,000 as the candidate
In the 1990 contest for Mr. Apple's seat, parties A, B, and D are
of a major party.
treated as major parties. (Under section 501 (8) of the proposed new
VARIATION B
title of the Federal Election Campaign Act of 1971, a major party is
a political party whose candidate received, as the candidate of that
Mr. Apple decides not to seek re-election. For the reasons set forth
party, 25 percent or more of the votes cast in the most recent election
above, the candidates of parties A, B, and D would each be entitled
for the same office. However, if only one party qualifies as a major
to receive payments under the proposed new title of $200,000 each
party under that rule, any political party whose candidate received
for use in the 1990 general election campaign. The candidate of
the second highest number of votes in that election is also treated
party C would be entitled to receive $107,175.
as a major party if he received at least 15 percent of the votes.) In
this example Apple received 20 percent of the vote as the candidate
VARIATION C
of party A. Since the candidate of party A did not receive 25 percent
Mr. Apple decides to seek re-election only as the candidate of party
or more of the votes, party A will be treated in the 1990 election as a
A. Mr. Apple is entitled to a payment of $200,000, the candidates
major party only because its candidate received the second highest
of parties B and D are each entitled to receive a payment of $200,000,
number of votes in the 1984 election, and because he received more
than 15 percent of the votes. Mr. Apple also received 20 percent of
and the candidate of party C is entitled to a payment of $107,175.
the votes as the candidate of party B, SO that party will also be treated
VARIATION D
as a major party in the 1990 election. Party D is a major party in the
1990 election becuse its candidate in 1984, Mr. Orange, received more
Regardless of what Mr. Apple does, Mr. Orange decides to try again
than 25 percent of the votes. Party C is a minor party in the 1990 elec-
for the seat, but this time he chooses to run as an independent candi-
tion because its candidate, in 1984, Mr. Apple, neither received more
date rather than as the candidate of party D. Mr. Orange is not en-
than 25 percent of the vote as the candidate of that party nor the sec-
titled to receive one penny in public funds until after the election is
ond highest number of votes as the candidates of that party.
over. If he receives more than 5 percent of the votes cast, then he is
The provisions of the bill apply to the 1990 contest for Mr. Apple's
entitled to receive payments in reimbursement of his campaign ex-
seat in the following ways:
penses based on the percentage of votes he receives as compared to
the average number of votes received by major party candidates in
VARIATION A
that election.
Mr. Apple is again the nominee of party A, party B, and party C.
Example No. 2
Since party A and party B are each treated as a major party, their
In a 1984 election for the House the candidate of political party A
candidates are entitled to payments equal in amount to the spending
is an individual who has been elected to the House from that district
limitation (assume the applicable limitation is $200,000). The candi-
for over 80 years, SO party B doesn't bother to nominate a candidate.
date of party C in 1990 is entitled to a payment which bears the same
The incumbent retires before his term is up and a special election is
ratio to the amount a major party candidate may receive ($200,000)
called for 1985. In the special election, the new candidate of party A
as the number of votes received by the candidate of that party in the
is entitled to a payment equal to his expenditure limitation. Assume
preceding general election bears to the average number of votes re-
that the applicable limitation is $100,000. Party B nominates a candi-
ceived by a major party candidate in that election. Mr. Apple, as the
date, but, since the party had no candidate in the preceding general
candidate of party C in 1984, received 15 percent of the votes and the
election for the office, he is not entitled to any payment before the
average number of votes received by the candidates of party A, party
election. In the 1985 election, the candidate of party A receives 45 per-
B, and Party D was 28.3 percent of the total. The party C candidate in
cent of the votes; the candidate of party B receives 55 percent of
1984 is entitled to approximately fifteen twenty-eighths of $200,000,
the votes. The candidate of party B is then entitled to a payment after
which equals about $107,175. Although Mr. Apple is the candidate of
the election which bears the same ratio to the pre-election payment
party A, party B, party C in 1990, he is not entitled to a combined
made to the candidate of party A as the number of votes received by
payment of $507,175. The provisions of proposed section 503 (c) limit
the candidate of party B bears to the number of votes received by the
the amount of the maximum payment any candidate can receive to
candidate of party A. Since the candidate of party B received more
the amount he can spend. Mr. Appple's sending limit is $200,000, SO
votes than the candidate of party A, his post-election payment is equal
he would receive payments totaling $200,000. Whether he would re-
to the pre-election payment received by the candidate of party A (it
ceive the full amount as the candidate of party A (or of party B) and
does not exceed that payment because of the application of the limita-
nothing as the candidate of the other 2 parties, or whether he would
tion in proposed section 503 (c)).
28-517-74
22
23
Example No. 3
cable to Presidential general elections under existing law, was en-
acted in 1971 with close attention to its impact on potential third party
In the 1984 election mentioned in example number 2, party B de-
cides that the incumbent is to be their nominee as well. Sixty-five per-
presidential candidacies. As the examples demonstrate, the formula
cent of the votes he receives come from the members of party A and the
in existing law for Presidential elections is easily applied to Senate
remaining 35 percent come from the members of party B. In the spe-
elections, as provided by the Committee bill.
cial election of 1985, both party A and party B are major parties be-
Typically, however, minor party candidates have not been a signifi-
cause their candidate in 1984, the now retired incumbent, received
cant factor in the vast majority of recent Senate elections.
more than 25 percent of the vote in the preceding general election as
In the past three Congressional election years, there have been a
total of 103 Senate elections. In 42 of these elections-14 of the 34
the candidate of each party. The candidate of party A and the candi-
races in 1972, 12 of the 35 races in 1970, and 16 of the 34 races in 1968-
date of party B in the 1985 election are each entitled to a pre-election
only two candidates were entered-Democratic and Republican. In the
payment of $100,000.
other 61 races, additional candidates representing some 30 other par-
Presidential general elections
ties were also on the ballot in those years in various states. But, in those
61 races, there were only seven races in which the third candidate re-
The Committee bill makes no basic change in existing law in the
ceived more than 5 percent of the vote-Louisiana in 1972; Connecticut
application of the dollar checkoff to the entitlement of candidates to
and New York in 1970; and Alabama, Alaska, Maryland and New
public funds in Presidential elections.
York in 1968. In those seven races-seven out of 103 races in all-the
In general, a candidate qualifies for full public funding if he is the
third candidate would have qualified for partial public funding as
candidate of a "major" party-a party that received 25 percent or
a "minor" party candidate in the following election. In none of those
more of the popular votes cast in the preceding election. He qualifies
seven races did the third candidate receive more than 25 percent of the
for partial public funding if he is the candidate of a "minor" party-a
vote; therefore, no third candidate would have qualified as a "major"
party that received 5 percent or more, but less than 25 percent, of
party candidate entitled to full public funding in the following
the popular votes cast in the preceding election; the amount of public
election.
funds for a minor party candidate is based on the proportion of the
The examples follow:
popular vote he received in the preceding election.
1. In the 1968 Senate election, Candidate A of the Democratic Party
In addition, a candidate may also qualify for public funds retro-
defeated Candidate B of the Republican Party by 50 percent to 48
actively, on the basis of his showing in the current election. In such a
percent, and Candidate C of Party X received 2 percent of the vote.
case, a candidate who receives public funds after the election may use
When the Senate seat is up again in 1974, the Democratic Party and
the funds to reimburse private contributors.
the Republican Party are "major" parties. Their candidates are each
In the 1972 Presidential election, President Nixon received 60.2
entitled to public funds in the amount of 15 cents per vote, based on
percent of the vote as the candidate of the Republican Party. Senator
the voting age population of the State. Since Candidate C failed to
McGovern received 37.2 percent of the vote as the candidate of the
reach the 5 percent cutoff in the 1968 election, Party X does not qualify
Democratic Party. Representative Schmitz received 1.3 percent of the
for public funds in 1974.
vote as the candidate of the American Independent Party or under
2. Same as example (1) for 1968. In the 1974 election, Candidate
other party designations.
A of the Democratic Party defeats Candidate B of the Republican
In 1976 the Republican Party and the Democratic Party qualify as
Party by 46 percent to 44 percent, and Candidate D of Party X re-
major parties on the basis of the 1972 election, and their candidates
ceives 10 percent of the vote.
will be entitled to full public funding. Since no other party qualifies as
Candidate D qualifies as a "minor" party candidate on the basis of
a major or minor party on the basis of the 1972 election, no other can-
his showing in the current election (1974), since he received more than
didates will be entitled to public funds in advance of the 1976 elec-
5 percent of the vote. He is therefore entitled to public funds on a
tion. However, if a candidate of a third party runs in 1976 and receives
retroactive reimubursement basis, even though he did not qualify for
more than 5 percent of the vote, he will qualify retroactively for public
public funds in advance of the election because Party X failed to
funds, based on his showing in the 1976 election.
receive 5 percent of the vote in 1968. Candidate D would be entitled to
The application of the public financing provision to Presidential
10/45 or 22 percent of the amount of public funds given to each major
elections is also illustrated by the following section, showing its appli-
cation to Senate elections.
party candidate, A and B. The amount is based on Candidate D's pro-
portional share of the average vote of the two major party candidates,
Senate elections
and is calculated as follows: 10% ÷ (46% + 44%) /2=10/45=22%.
Some of the following examples are adapted from actual Senate
Candidate C may use these public funds to reimburse private contrib-
elections in recent years. Most of the examples are designed to illus-
utors to his campaign in 1974.
trate the application of the dollar checkoff to Senate elections involv-
3. In 1968, Candidate A of the Republican Party defeated Candi-
ing relatively unusual situations. The dollar checkoff, already appli-
date B of the Democratic Party by 46 percent to 44 percent, and
Candidate C of Party X won 10 percent of the vote.
25
24
In 1974, the candidates of the Democratic Party and the Republican
candidate of the Democratic Party (adapted from the Virginia Gov-
Party are "major" party candidates and qualify for full public funds
ernor's election in 1973).
(15 cents per vote). The candidate of Party X is a "minor" party
If Candidate B runs again as an Independent in 1974, he is en-
candidate and qualifies for partial public funds in 1974, in the amount
titled to full public funds. Senator A of the Republican Party will also
of 22 percent of the entitlement of each major party candidate.
be entitled to full public funds. If there is a candidate of the Demo-
4. In the 1974 Senate election, Candidate A of the Democratic Party
cratic Party, he will not qualify for public funds unless he does so
defeats Candidate B of the Republican Party by 46 percent to 44 per-
retroactively on the basis of his showing in the 1974 election. If Candi-
cent. Candidate C runs as an Independent and receives 10 percent of
date B runs as the candidate of the Democratic Party in 1974, he
qualifies for full public funds-not because he is the Democratic Candi-
the vote.
Candidate C qualifies retroactively for public funds on the same
date, but because of his personal showing as an Independent in 1968.
basis as if he were the candidate of a party. He receives 22 percent
9. In 1968, Candidate A of the Democratic Party defeated Candi-
of the amount of public funds given to each major party candidate.
date B of the Republican Party by 78 percent to 22 percent (based on
5. A received 4 percent of the vote as the candidate of Party X and
a recent West Virginia Senate election).
3 percent of the vote as the candidate of Party Y in 1968.
In 1974 since the Democratic Party is the only "major" party on
In 1974, A qualifies for public funds as a minor party candidate.
the basis of the 1968 results, the Republican Party will also qualify
His entitlement to public funds is based on 7 percent of the 1968 vote,
as a "major" party under the bill. It is the party with the next highest
since the bill permits a candidate to accumulate his votes from the pre-
showing in the preceding election, even though its candidate in 1968
ceding election, if he received 5 percent or more but less than 25 per-
won less than 25 percent of the vote and would not ordinarily qualify
cent of the votes in that election.
as a "major" party.
6. In the 1968 election, Candidate A of the Democratic Party de-
10. In 1968, Candidate A defeated Candidate B by 60 percent to 40
feated Candidate B of the Republican Party by 54 percent to 37 per-
percent. Candidate A received 45 percent of his vote as the candidate
cent. In the 1974 election, Senator A runs as an Independent, B runs
of the Democratic Party, and 15 percent of his vote as the candidate
as an Independent, C runs as the Candidate of the Republican Party,
of the Liberal Party. Candidate B received 26 percent of his vote as
and D runs as the candidate of the Democratic Party. (Based on a re-
the candidate of the Republican Party, and 14 percent of his vote as
cent Virginia Senate election.)
the candidate of the Conservative Party. (Adapted from recent New
Candidate C of the Republican Party and Candidate D of the
York Senate elections.)
Democratic Party are each entitled to full public funding in 1974,
In 1974, the Democratic and Republican candidates qualify as
since they are candidates of a major party on the basis of the 1968 elec-
"major" party candidates. The candidates of the Liberal and Conserv-
tion. Senator A is also entitled to full public funding, based on his own
ative Parties each qualify as "minor" party candidates. In addition, if
showing as a winning major party candidate in 1974. B does not
B runs as the Conservative Party candidate, but not as the Republican
qualify for public funds, since the Committee bill does not offer pub-
Party Candidate, in 1974, he qualifies only as a "minor" party can-
lic funds to an independent candidate who was a defeated major
didate, because the bill does not allow a defeated major party candi-
party candidate in the preceding election.
date to run as a minor party candidate in the next election and carry
7. Senator A ran as an Independent in 1968 and won the election
over his status as a major party candidate.
with 54 percent of the vote. The candidate of the Democratic Party
9. In 1968, Candidate A of the Democratic Party won the election
received 31 percent of the vote and the candidate of the Republican
with 55% of the vote. Candidate B of the Republican Party won
Party received 15 percent of the vote. (Based on a recent Virginia
19% of the vote and Independent Candidate C won 23% of the vote.
Senate election.)
(Based on a recent Louisiana Senate election.)
If Senator A runs again as an Independent in 1974, he is entitled to
In 1974, since the Democratic Party is the only "major" party on
full public funds (15 cents per vote), based on his 1968 showing as an
the basis of the 1968 results, the bill, as noted in example (9), operates
Independent. The candidate of the Democratic Party in 1974 is also
to allow the Republican Party to qualify as a "major" party, even
entitled to full public funds, because Party A qualifies as a "major"
though it received less than 25% of the vote in 1968, and even though
party on the basis of its 1968 showing. However, the candidate of the
Independent Candidate C made a better showing in 1968. If Candi-
Republican Party in 1974 will qualify only for partial public funds,
date C runs again as an Independent in 1974, he qualifies for partial
since it is a "minor" party based on its 1968 showing, even though it
public funds as a "minor" party candidate. But the bill does not bene-
was a "major" party based on the 1962 election. In 1974, the Repub-
fit an Independent by allowing him to receive full public funding as
lican candidate is entitled to 15/(54+31)/2, or 35% of the amount
if he were a major party candidate. As example (7) makes clear, if
given to Senator A and to the Democratic candidate.
both an Independent candidate and the Democratic Party candidate
If the Republican candidate receives more than 25 percent of the
qualify for full public funds on the basis of the preceding election,
vote in 1974 he qualifies retroactively as a "major" party candidate
the bill does not operate to allow the Republican candidate to qualify
and is entitled to full public funds.
for full public funds. In other words, the bill does not operate
8. In 1968, candidate A of the Republican Party defeated Inde-
to create full public funding for a third candidate, where two candi-
pendent Candidate B by 50.7 percent to 49.3 percent, and there was no
dates already qualify for full public funds on the basis of their show-
ing in the preceding election.
26
27
Illustrative examples of public financing under Senate Rules Com-
6. House Primary Election.-In a congressional district in a multi-
mittee print No. 4, as revised
district state, four candidates for major party nomination qualify for
matching funds by raising more than $10,000 in contributions of $100
(Supplied by the General Accounting Office)
or less. Each is entitled to spend up to $90,000 and is entitled to match-
ing funds for each dollar raised.
1. 1976 Presidential Primary Elections.-Assume four Democrats
7. House General Election.-The nominated candidate of a major
and four Republicans raise a campaign fund of at least $250,000 each
party is entitled to full public payment of $90,000 in the general elec-
from contributions of not more than $250,each. Each candidate would
tion. If the State has only one district, the primary limit is increased
be entitled to matching funds of $250,000, plus one dollar for each ad-
to $125,000 and the general election limit is increased to $175,000.
ditional dollar of qualifying contributions (under$250) raised. In each
primary election or convention to select national convention dele-
COST ESTIMATES PURSUANT TO SECTION 252 (a) OF THE LEGISLATIVE
gates, each candidate could spend up to twice the amount permitted
REORGANIZATION AcT OF 1970
a Senate primary candidate. For example, in the 1976 Wisconsin
presidential primary each candidate could spend up to 20c times voting
Section (a) of the Legislative Reorganization Act of 1970 re-
age population ($606,600 based on current population) and could
quires that any committee reporting a bill of a public character shall
receive up to one-half of that amount in public funds.
include in its accompanying report an estimate of the costs which
2. 1976 Presidential General Election.-Both the Democratic and
would be incurred in effecting such legislation, or a statement of the
the Republican candidates represent a major party (over 25% of the
reasons compliance with this requirement is impracticable.
popular vote in 1972). Both are entitled to optional full public financ-
Accordingly, the Committee on Rules and Administration estimates
ing up to the spending limit of 15 cents times voting age population
the annual cost to the United States Government to an average of
($21,250,000 based on current population). The spending limit applies
$89,391,693. This average estimate is based upon the supposition that
to all candidates whether or not they choose public financing. No other
all seats in the House of Representatives will be contested every two
candidate is qualified for public funds based on 1972 results, but if
years; that one third of all Senate seats will be contested every two
another candidate receives over 5% of the 1976 vote, he would be
years; and that, of course, there will be a quadrennial election for
entitled after the election to a proportionate share to reimburse cam-
President and Vice President. The costs are predicated upon total esti-
paign expenditures.
mated public funds paid to eligible candidates for nomination for
Assume the two major party candidates receive 41 percent and 39
election, or election to Federal office.
percent of the 1976 popular vote, respectively, and assume Candi-
The Committee is not aware of any estimates of costs made by any
date C of the National Party receives 10 percent. Candidate C will be
Federal agency which are different from those made by the committee.
entitled to a post-election payment based on the ratio of his vote to
the average of the major parties' vote; i.e. 10/40 of $21,250,000. Candi-
COST ESTIMATES
date C would receive up to $5,312,500. In the 1980 general election for
President, the Democrats and Republicans would be major parties and
President (every 4 years) :
4-year total
Primary elections, not including State conventions (21 States)
$42,010,800
the National Party would be a minor party whose candidate is en-
General
47,218,194
titled to pre-election payments in the same ratio. If Candidate C runs
as an independent in 1980, he would also be entitled to payments based
Total, President
89, 228, 994
on the votes he received in 1976.
3. Senate Primary Election.-Candidate A is opposed in the pri-
Senate (33 campaigns every 2 years) :
Primary (33 States) including conventions
10,170,900
mary by Candidate B and both raise the required threshold cam-
General (33 States)
23,929,900
paign fund from contributions of $100 or less. Each candidate is
entitled to matching funds on a dollar for dollar basis. If either candi-
Total, Senate
34,100,800
date doesn't raise the minimum amount from private sources, he will
Multiplied by 2
68,201,600
not receive any public funds.
House (every 2 years) :
4. Senate Nominating Convention.-Same result as in preceding
Primary (435 seats) including conventions
31,245,100
example because the term "primary election" in the bill includes a
General (435 seats)
69,062,888
convention or caucus of a political party held to nominate a candidate.
Total, House
100,307,988
5. Senate General Election.-Assumé Candidates A and B are nomi-
Multiplied by 2
200,615,976
nated by the major parties and Candidate C represents a minor party;
and the voting age population of the state is 4 million. Candidates A
Total, 4-year cost
358,046,570
and B are each entitled to $600,000 (15c times voting age population)
Average annual cost
89,511,643
for their general election campaign. If the minor party received 1/3
ADDITIONAL COST ESTIMATES
of the average vote of the major parties in the preceding election, Can-
didate C is entitled to $200,000.
The Internal Revenue Service furnished the following information,
based upon 1971 figures, demonstrating the cost to the government if
28
29
all taxpayers were to designate one dollar of tax liability to the Presi-
dential Campaign fund
Based on estimated 1972 levels of political contributions under the
proposal as derived from the levels of contributions reflected in tax
Total returns joint
$42, 770, 000
Total individual returns
31,830,000
returns filed for 1972, we estimate that the proposed doubling of the
maximum deduction and the maximum credit would decrease Federal
Total returns
74, 600, 000
individual income tax liability by about $26 million of which $15 mil-
If all returns, individual and joint, should take full advantage of the
lion is ascribable to the doubling of the maximum deduction and $11
one dollar check off the total cost would be $117,370,000.
million is ascribable to the doubling of the maximum credit.
If, all returns should take full advantage of a two dollar check off
Sincerely yours,
the cost would be $234,740,000.
LAURENCE N. WOODWORTH.
SENATE CAMPAIGN FUND LIMITATIONS UNDER RULES COMMITTEE BILL
RESULTS OF DOLLAR CHECKOFF
1973
Returns using checkoff for 1973
voting age
Primary
General
Total returns
population
Primary
spending
spending
Number
Percent
Amount
filed
(VAP)
threshold
limit-10 cents
limit-15 cents
for 1974
matching
times VAP or
times VAP or
State
elections
fund 1
$125, 000
$175, 000
1973 returns filed in 1974:
Through Jan. 18
43,198
10.7
$60,066
Week of:
Alabama
2,338,000
$46,760
$233,
$350, 700
Jan. 25
120,202
14.0
171,984
Alaska
200,000
25,000
125,000
175,000
Feb. 1
251,312
14.
365,777
Arizona
1,345,000
26,900
134,500
201,750
Feb. 8
396,287
14.3
585,519
Arkansas
1,374,000
27,480
137,400
206, 100
Feb. 15
553,806
14.1
820,986
California
14,143,000
125,000
1,414,300
2,121,450
Cumulative:
Colorado
1,631,000
32,620
163,100
244,650
Jan. 25
163,400
13.0
232,050
Connecticut
2,101,000
42,020
210,000
315,000
Feb. 1
414,712
14.0
597,827
Delaware
382,000
25,000
125,000
175,000
Feb. 8
810,999
14.1
1,183,346
15,940,000
Florida
5,427,000
108,540
542,700
814,050
Feb. 15
1,364,805
14.1
2,004,332
23,492,000
Georgia
3,140,000
62,800
314,000
471,000
Hawaii
549,000
25,000
125,000
175,000
Idaho
501,000
25,000
125,000
175,000
Illinois
7,568,000
125,000
756,800
1,135,200
Indiana
3,530,000
70,600
353,000
529,500
lowa
1,957,000
Returns using checkoff for 1972
Total
39,140
195,700
293,550
Kansas
1,570,000
31,400
157,000
returns
235,500
Kentucky
2,235,000
44,700
Number
Percent
Amount
filed
223,500
335,250
Louisiana
2,399,000
47,980
239,900
359,850
Maine
689,000
25,000
125,000
175,000
Maryland
2,720,000
54,400
272,000
408, 000
1973 returns filed in 1974:
Massachusetts
4,006,000
80,120
Through Jan. 18
21,580
5.3
$30,461
400,600
600,900
Michigan
5,922,000
118,440
592,200
888,300
Week of:
Minnesota
Jan. 25
59,360
6.9
85,998
2,575,000
51,500
257,500
386,250
7.0
Mississippi
1,453,000
120,088
177,418
29,060
145,300
Feb. 1
217,950
Missouri
6. 7
280,093
3,251,000
65,020
325,100
Feb. 8
186,534
487,650
Montana
Feb. 15
258,172
6.6
390,459
474,000
25,000
125,000
175,000
Nebraska
1,042,000
25,000
125,000
Cumulative:
175,000
Nevada
Jan. 25
80,940
6.4
116,459
365,000
25,000
125,000
175,000
201,028
6.8
293,877
New Hampshire
531,000
25,000
125,000
175,000
Feb. 1
Feb. 8
387,562
6.8
New Jersey
5,030,000
573,970
100,600
503,000
754,500
New Mexico
Feb. 15
645,734
6.7
691,000
964,429
25,000
125,000
175,000
New York
12,665,000
125,000
1,266,500
1,899,750
North Carolina
3,541,000
70,820
354,100
531,150
North Dakota
421,000
25,000
125,000
175,000
Ohio
7,175,000
125,000
717,500
1,076,250
CONGRESS OF THE UNITED STATES,
Oklahoma
1,832,000
70,820
183,020
274,800
Oregon
1,532,000
30,640
153,200
229,800
JOINT COMMITTEE ON INTERNAL REVENUE TAXATION
Pennsylvania
8,240,000
125,000
824,000
1,236,000
Rhode Island
677,000
25,000
125,000
175,000
LONGWORTH HOUSE OFFICE BUILDING,
South Carolina
1,775,000
35,100
177,500
266,250
South Dakota
Washington, D.C., February 21, 1974.
454,000
25,000
125,000
175,000
Tennessee
2,799,000
55,980
279,900
419,850
Mr. JAMES H. DUFFY,
Texas
7,785,000
125,000
778,500
1,167,750
Utah
715,000
25,000
125,000
175,000
Chief Counsel, Subcommittee on Privileges and Elections, Rules and
Vermont
309,000
25,000
125,000
175,000
Virginia
Administration Committee, U.S. Senate, Washington, D.C.
3,243,000
64,860
324,300
486,450
Washington
2,329,000
46,580
232,900
349,350
DEAR MR. DUFFY: This is in reference to your telephone request of
West Virginia
1,228,000
25,000
125,000
184,200
Wisconsin
3,033,000
60,660
303,300
454,950
February 20 for the estimated decrease in Federal individual income
Wyoming
234,000
25,000
125,000
175,000
tax liability which would result from doubling from $50 ($100 for
1 Figures in this column represent 20 percent of the applicable primary spending limit except for a maximum threshold
joint returns) to $100 ($200 for joint returns) the maximum deduc-
of $125,000 and a minimum threshold of $25,000.
tion for political contributions and doubling from $12.50 ($25 for
joint returns) to $25 ($50 for joint returns) the maximum tax credit
for political contributions.
28-517-74-5
30
31
PRESIDENTIAL PRIMARY
12) Nebraska - 8 candidates in primary raised $250,000
spending limit:
10c x 1,042,000 = $104,200 X 2 = $208,400
(Based on 1972)
government cost:
$104,200 X 8 candidates a $833,600
1) Candidates qualify by raising $250,000
13) West Virginia - 2 candidates in primary raised $250,000
Assumptions:
spending limit:
2) Apply 1972 qualifiers to primaries actually run
10c X 1,228,000 = $122,800 X 2 = $245,600
government cost:
$122,800 X 2 candidates = $245,600
Requirements: 1) To qualify candidates must raise $250,000
14) Maryland - 8 candidates in primary raised $250,000
spending limit:
1) Match $1 for $1 raised by those qualifying up to
10c X 2,720,000 = $272,000 X 2 = $544,000
Formula:
government cost:
$272,000 X 8 candidates = $2,176,000
spending limit
2) Spending limit is 2 times the Senate formula
which is the greater of 10c x state VAP or $125,000
15) Michigan - 5 candidates in primary raised $250,000
spending limit:
10 X 5,922,000 = $592,200 X 2 = $1,184,400
government cost:
$592,200 x 5 candidates = $2,961,000
1) New Hampshire - 4 candidates in primary raised $250.000
spending limit:
10c X 531,000 #: $53,100 X 2 = $105,200 or $250,000
16) Oregon - 8 candidates in primary raised $250,000
spending limit:
government cost:
$125,000 X 4 candidates = $500,000
10c X 1,532,000 = $153,200 X 2 = $306,400
government cost:
$153,200 x 8 candidates = $1,225,600
2) Florida - 8 candidates in primary raised $250,000
spending limit:
10c x 5,427,000 = $542,700 x 2 = $1,085,400
17) Rhode Island - 8 candidates in primary raised $250,000
spending limit:
government cost: $542,700 X 8 candidates = $4,341,600
10c x 677,000 = $67,700 X 2 = $135,400 or $250,000
government cost:
$125,000 X 8 candidates = $1,000,000
3) Illinois - 1 candidate in primary raised $250,000
10c X 7,568,000 = $756,800 x 2 = $1,513,600
18) California - 6 candidates in primary raised $250,000
spending limit:
spending limit:
10 X 14,143,000 = $1,414,300 X 2 = $2,828,600
government cost:
$756,800 X 1 candidate = $756,800
government cost:
$1,414,300 x 6 candidates = $8,485,800
4) Wisconsin - 8 candidates in primary raised $250,000
spending limit:
10 X 3,033,000 = $303,300 X 2 = $606,600
19) New Jersey - No candidates in primary raised $250,000
government cost:
$303,300 X 8 candidate = $2,426,400
20) New Mexico - 6 candidates in primary raised $250,000
spending limit:
5) Massachusetts - 7 candidates in primary raised $250,000
10c X 691,000 = $69,100 X 2 = $138,200 or $250,000
10c x 4,006,000 = $400,600 x 2 = $801,200
government cost:
$125,000 X 6 candidates = $750,000
spending limit:
government cost:
$400,600 X 7 candidates = $2,804,200
21) South Dakota - 2 candidates in primary raised $250,000
spending limit:
6) Pennsylvania - 5 candidates in primary raised $250,000
10c x 454,000 = $45,400 x 2 = $90,800 or $250,000
spending limit:
10c x 8,240,000 = $824,000 X 2 = $1,648,000
government cost:
$125,000 X 2 candidates = $250,000
government cost:
$824,000 X 5 candidates = $4,120,000
Total primary cost to government = $42,010,800
7) District of Columbia - 1 candidate in primary raised $250,000
spending limit:
10c x 529,000 = $52,900 X 2 = $105,800 or $250,000
government cost:
$125,000 X 1 candidate = $125,000
8) Indiana - 4 candidates in primary raised $250,000
spending limit:
10c X 3,530,000 = $353,000 X 2 = $706,000
government cost:
$353,000 X 4 candidates = $1,412,000
9) Tennessee - 8 candidates in primary raised $250,000
spending limit:
10c X 2,799,000 = $279,900 X 2 = $559,800
government cost:
$279,900 X 8 candidates = $2,239,200
10) Ohio - 5 candidates in primary raised $250,000
spending limit:
10+ X 7,175,000 = $717,500 Y 2 = $1,435,000
government costs
$717,500 Y 5 condidates = $3,587,500
11) North Carolina - 5 candidates in primary raised $250,000
spending limit:
10c x 3, 541,000 = $354,100 x 2 = $708,200
government cost:
$354,100 X 5 candidates = $1,770,500
33
32
U.S. SENATE
Requirements:
1) :Major parties (25% or more vote) receive full
(Based on 1972)
Federal funding up to spending limit.
2) Minor parties (5-25% of vote) receive proportionate
share.
Assumptions:
1) Primary opposed-- 2 candidates qualified and
spent maximum
Formula:
1) Spending limit is 15c x VAP. ($21,248,400)
2) Primary unopposed-- candidates did not raise
qualifying amount
Assumption
1) Two major parties
3) General-- major candidates raised qualifying
2) One minor party gets 10% of vote
amounts
Formula:
1) Qualifying amount-- lesser of 20% of primary
VAP = 141,656,000
spending amount or $125,000
spending limit:
15 X 141,656,000 = $21,248,400
2) Primary spending amount-- greater of 10c X VAP
government cost:
$21,248,400 X 2 candidates = $42,496,800
or $125,000
+ minor party =
4,721,394
3) General spending amount-- greater of 15c X VAP
$47,218,194
or $175,000
4) Matching in primary-- 1 for 1
5) Full amount in general
1) Alabama: Qualify (lesser of 20% of $233,800 or $125,000) = $46,760
$42,010,800
Primary: spending limit = 10c X 2,338,000 = $233,800
47,218,194
4 candidates qualified - matching
89,228,994
government cost = $233,800 + 2 X 4 = $467,600
General:
spending limit = 15c x 2,338,000 = $350,700
2 candidates qualified - full amount
government cost = $350,700 x 2 = $701,400
2) Alaska:
Qualify (20% of $125,000) = $25,000
Primary: spending limit = 10c X 200,000 = $20,000 or
$125,000
no candidates qualified
government cost = 0
General: spending list = 15 x 200,000 = $30,000 or
$175,000
2 candidates qualified - full amount
government cost = $75,000 X 2 = $350,000
3) Arkansas: Qualifying (lesser of 20% of 137,400 or $125,000) = $27,480
Primary: spending limit = 10c x 1,374,000 = $137,400
2 candidates qualified - matching
government cost su $137,400 X 2 = $274,400
General:
spending limit = 15c x 1,374,000 = $206,100
2
candidates
qualified - full amount
government cost = $206,100 X 2 = $412,200
4) Colorado: Qualifying (Lesser of 20% of $163,100 or $125,000) = $32,620
Primary: spending limit = 10c X $1,631,000 = $163,100
2 candidates qualified - matching
government cost = $163,100 x 2 4 2 = $163,100
General:
spending limit = 15c x 1,631,000 = $244,650
2 candidates qualified -- full amount
government cost = $244,650 X 2 = $489,300
34
35
11) Kentucky (cont'd) General:
spending limit = 15c X 2,235,000 = $335,250
5)
Delaware:
Qualifying (lesser of 20% of $38,200 or $125,000) = $25,000
2 candidates qualified - full amount
Primary:
spending limit = 10c X 382,000 = $38,200 or $125,000
government cost = $335,250 X 2 = $670,500
no candidate qualified
government cost = 0
spending limit = 15c X 382,000 or 175,000 = $175,000
12)
Louisiana: Qualifying (lesser of 20% of $239,900 or $125,000) = $47,980
General:
Primary: spending limit = 10c X 2,399,000 = $239,900
2 candidates qualified - full amount
2 candidates qualified - matching
government cost = $175,000 X 2 = $350,000
government cost = $239,900 + 2 x 4 = $479,800
General:
Qualifying (lesser of 20% of $314,000 or $125,000) = $62,800
spending limit = 15c X 2,399,000 = $359,850
6) Georgia:
2 candidates qualified - full amount
Primary:
spending limit = 10c X 3,140,000 = $314,000
government cost = $359,850 X 2 = $719,700
4 candidates qualified - matching
government cost = $314,000 + 2 X 4 = $628,000
spending limit = 15c X 3,140,000 = $471,000
13) Maine:
Qualifying (lesser of 20% of $68,900 or $125,000) = $25,000
General:
Primary: spending limit = 10c X 689,000 = $68,900
2 candidates qualified - full amount
4 candidates qualified - matching
government cost = $471,000 X 2 = $942,000
government cost = $125,000 + 2 X 4 = $250,000
General:
7) Idaho:
Qualifying (lesser of 20% of $50,100 or $125,000) = $25,000
spending limit = 15c X 689,000 = $103,350 or $175,000
2 candidates qualified - full amount
Primary:
spending limit = 10c X 501,000 = $50,100 or $125,000
government cost = $175,000 X 2 = $350,000
4 candidates qualified - matching
government cost = $ 125,000 + 2 X 4 = $250,000
spending limit = 15c X 501,000 = $75,105 or $175,000
14)
Massachusetts:
Qualifying (lesser of 20% of $400,600 or $125,000) = $80,120
General:
Primary:
spending limit = 10c X 4,006,000 = $400,600
- $175,000
2 candidates qualified - matching
2 candidates qualified - full amount
Government cost = $400,600 X 2 + 2 = $400,600
government cost = $175,000 X 2 = $350,000
General: spending limit = 15c X 4,006,000 = $600,900
2 candidates qualified - full amount
8)
Illinois: Qualifying (lesser of 20% of $756,800 or $125,000) = $125,000
government cost $600,900 x 2 = $1,201,800
Primary:
spending limit = 10 x 7,568,000 = $756,800
2 candidates qualified - matching
government cost = $756,800 x 2 + 2 = $756,800
15) Michigan:
Qualifying (lesser of 20% of $592,200 or $125,000) = $118,440
Primary: spending limit = 10c X 5,922,000 = $592,200
General:
spending limit = 15c X 7,568,000 = $1,135,200
no candidates qualified
2 candidates qualified - full amount
government cost = o
government cost = $1,135,200 X 2 = $2,270,400
General:
spending limit = 15c X 5,922,000 = $888,300
2 candidates qualified - full amount
9) Iowa:
Qualifying (lesser of 20% of $195,700 or $125,000) = $39,140
government cost=$888,300 X 2 = $1,776,600
Primary: spending limit = 10c X 1,957,000 = $195,700
2 candidates qualified - matching
16) Minnesota:
Qualifying (lesser of 20% of $257,500 or $125,000) = $51,500
government cost = $195,700 x 2 + 2 = $195,700
Primary: spending limit = 10c X $2,575,000 =$257,500
General:
spending limit = 15c x 1,957,000 = $293,550
50
emididates qualified - full amount
2 candidates qualified - full amount
overnment cost = $257,500 + 2 X 2 = 257,500
government cost = $293,550 X 2 = $587,100
General:
spending limit = 15 X 2,575,000 = $386,250
10) Kansas:
Qualifying (lesser of 20% of $157,000 or $125,000) = $31,400
2 candidates qualified - full amount
government cost = $386,250 X 2 = $772,500
Primary: spending limit = 10c X 1,570,000 = $157,000
2 candidates qualified : matching
government cost = 157,000 X 2 :- 2 = $157,000
17) Missiosippi:
Qualifying (less of 20% of $145,300 or $125,000) = $29,060
Primary:
spending limit = 10,5 X 1,453,000 = $145,300
General:
spending limit = 15c X 1,570,000 = $235,500
4 candidates qualified - matching
2 candidates qualified-full amount
government cost $145,300 + 2 X 4 = $290,600
government cost = $235,500 X 2 = $471,000
General:
spending limit = 15c X 1,453,000 = $217,950
2 candidates qualified - full amount
11) Kentucky - Qualifying (lesser of 20% of $223,500 or $125,000) = $44,700
government cose = $217,950 X 2 = $435,900
Primary: spending limit = 10 X 2,235,000 = $223,500
4 candidates qualified - matching
government cost = $223,500 + 2 X 4 = $447,000
36
37
18) Montana:
Qualifying (lesser of 20% of $47,400 or $125,000) = $25,000
Primary: spending limit = 10c X 474,000 = $47,400 or $125,000
24) Oklahoma:
Qualifying (lesser of 20% of $183,200 or $125,000) = $36,640
4 candidates qualified - matching
Primary: spending limit = 100 X 1,832,000 = $183,200
government cost =$125,000 4 2 X 4 = $250,000
4 candidates qualified - matching
General:
spending limit = 15 X 474,000 = $71,100 or $175,000
government cost = $183,200 + 2 X 4 = $366,400
2 candidates qualified - full amount
General: spending limit = 15c X 1,832,000 = $274,800
government cost = $175,000 X 2 = $350,000
2 candidates qualified - full amount
government cost = $274,800 X 2 = $549,600
19) Nebraska:
Qualifying (lesser of 20% of 104,200 or $125,000) = $25,000
Primary: spending limit = 10c X 1,042,000 = $104,200 or $125,00
25) Oregon:
Qualifying (lesser of 20% of $153,200 or $125,000) = $30,640
4 candidates qualified - matching
Primary : spending limit = 10c X 1,532,000 = $153,200
government cost = $125,200 + 2 x 4 = $250,000
4 candidates qualified - matching
General: spending limit = 15c X 1,042,000 = $156,300 or
government cost = $153,200 4. 2 X 4 = $306,400
$175,000
General: spending limit = 156 X 1,532,000 = $229,800
2 candidates qualified - full amount
2 candidates qualified - full amount
government cost = $175,000 X 2 = $350,000
government cost If $229,800 X 2 = $459,600
20) New Hampshire: Qualifying (lesser of 20% of $53,100 or $125,000) = $25,000
26) Rhode Island: Qualifying (lesser of 201 of $67,700 or $125,000) = $25,000
Primary: spending limit = 10# X 531,000 = $53,100 or $125,000
Primary: spending limit = 10c X $677,000 = $67,700 or $125,000
2 candidates qualified - matching
no candidates qualified
government cost = $125,000 + 2 X 2 = $125,000
government cost = 0
General:
spending limit: 15c X 531,000 = $79,650 or $175,000
General: spending limit = 150 X $677,000 = $101,550 or $175,00C
2 candidates qualified - full amount
2 candidates qualified - full amount
government cost $175,000 X 2 = $350,000
government cost = $175,000 X 2 = $350,000
21) New Jersey:
Qualifying (lesser of 20% of $503,000 or $125,000) = $100,600
27) South Carolina:Qualifying (lesser of 20% of $177,500 or $125,000) = $35,500
Primary: spending limit = 10 X $5,030,000 = $503,000
Primary:
spending limit = 10 X 1,775,000 = $177,500
4 candidates qualified - matching
2 candidates qualified - matching
government cost - $503,000 + 2 x 4 - $1,006,000
government cost = $177,500 + 2 x 2 = $177,500
General:
spending limit = 15 x 5,030,000 = $754,500
General:
spending limit - 15d X 1,775,000 = $266,250
2 candidates qualified - full amount
2 candidates qualified - full amount
government cost $754,500 x 2 = $1,509,000
government cost 28 $266,250 x 2 = $532,500
22) New Mexico:
Qualifying (lesser of 20% of $69,100 or $125,000) = $25,000
28)
South Dakota: Qualifying (lesser of 20% of $45,400 or $125,000) = $25,000
Primary: spending limit = 106 X 691,000 = $69,100 or $125,000
Primary: spending limit = 10c X 454,000 = $45,400 or $125,000
4 candidates qualified - matching
4 candidates qualified - matching
government cost = $125,000 4 2 x 4 = $250,000
government cost = $125,000* 2 X 4 = $250,000
General:
spending limit = 15c X 691,000 = $103,650 or $175,000
General: spending limit = 15c X 454,000 = $68,100 or 175,000
2 candidates qualified - full amount
2 candidates qualified - full amount
government cost = $175,000 X 2 = $350,000
government cost = $175,000 X 2 = $350,000
23) North Carolina:Qualifying (lesser of 20% of $354,100 or $125,000) = $70,820.
29) Tennessee:
Qualifying (lesser of 20% of 279,900 or $125,000) - $55,980
Primary:
spending limit = 10# X 3,541,000 # $354,100
Primary: spending limit = 10/ X 2,799,000 BY $279,900
4 candidates qualified - matching
4 candidates qualified - matching
government cost - $354,100 + 2 X 4 = $708,200
government cost = $279,900 + 2 X 4 = $559,800
General:
spending limit = 15c X 3,541,000 = $351,150
General: spending limit = 15c x 2,799,000 = $419,850
2 candidates qualified - full amount
2 candidates qualified - full amount
government cost = 531,150 X 2 = $1,062,300
government cost = $419,850 X 2 = $839,700
30) Texas:
Qualifying (lesser of 20% of $778,500 or $125,000) = $125,000
Primary: spending limit MJ 10c X 7,785,000 - $778,500
2 candidates qualified - matching
government cost = 778,500 x 2 + 2 = $778,500
General: spending limit = 15/ X 7,785,000 = $1,167,750
2 candidates qualified - full amount
government .t cost = $1,167,750 X 2 = $2,335,500
28-517-74-6
38
39
31) Virginia:
Qualifying (lesser of 20% of 324,300 or $125,000) = $64,860
CHANGES IN EXISTING LAW
Primary
spending limit = 10c X 3,243,000 = $324,300
no candidates qualified
In compliance with subsection 4 of rule XXIX of the Standing
government cost= 0
spending limit = 15c X 3,243,000 = $486,450
Rules of the Senate, changes in existing law made by the bill S. 3044
General:
2 candidates qualified - full amount
as reported by the Committee on Rules and Administration, are shown
government cost = $486,450 X 2 = $972,900
as follows (existing law proposed to be omitted is enclosed in black
32)
West
Virginia
Qualifying (lesser of 20% of $122,800 or $125,000) = $25,000
brackets, new matter is printed in italic, and existing law in which
Primary: spending limit = 10c X 1,228,000 = $122,800 or $125,00
no change is proposed is shown in roman) :
no candidates qualified
government cost = O
spending limit = 15c X 1,228,000 = $184,200
COMMUNICATIONS ACT OF 1934
General:
2 candidates qualified - full amount
government cost = $184,200 X 2 = $368,400
(47 U.S.C. 315, 317)
33) Wyoming:
Qualifying (lesser of 20% of $23,400 or $125,000) = $25,000
Primary: spending limit 10 X 234,000 = $23,400 or $125,000
§ 315. Candidates for public office; facilities; rules
2 candidates qualified - matching
government cost =$125,000 + 2 X 2 = $125,000
(a) If any licensee shall permit any person who is a legally qualified
General:
spending limit = 15¢ X 234,000 =$35,100 ori175,000
candidate for any public office, other than Federal elective office (in-
2 candidates qualified - full amount
cluding the office of Vice President), to use a broadcasting station,
government cost = $175,000 X 2 = $350,000
he shall afford equal opportunities to all other such candidates for
that office in the use of such broadcasting station: Provided, That
TOTAL PRIMARY
$10,170,900
such licensee shall have no power of censorship over the material
broadcast under the provisions of this section. No obligation is imposed
TOTAL GENERAL
23,929,900
upon any licensee to allow the use of its station by any such candi-
GRAND TOTAL SENATE
$34,100,800
date. Appearance by a legally qualified candidate on any-
(1) bona fide newscast,
(2) bona fide news interview,
(3) bona fide documentary (if the appearance of the candidate
is incidental to the presentation of the subject or subjects covered
by the news documentary), or
(4) on-the-spot coverage of bona fide news events (including
but not limited to political conventions and activities incidental
thereto),
shall not be deemed to be use of a broadcasting station within the
meaning of this subsection. Nothing in the foregoing sentence shall
be construed as relieving broadcasters, in connection with the presen-
tation of newscasts, news interviews, news documentaries, and on-the-
spot coverage of news events, from the obligation imposed upon them
under this chapter to operate in the public interest and to afford rea-
sonable opportunity for the discussion of conflicting views on issues
of public importance.
(b) The charges made for the use of any broadcasting station [by
any person] by or on behalf of any person who is a legally qualified
candidate for any public office in connection with his campaign for
nomination for election, or election, to such office shall not exceed-
(1) during the forty-five days preceding the date of a primary
or primary runoff election and during the sixty days preceding
the date of a general or special election in which such person is
a candidate, the lowest unit charge of the station for the same
class and amount of time for the same period; and
(2) at any other time, the charges made for comparable use of
such station by other users thereof.
[(c) No station licensee may make any charge for the use of such
station by or on behalf of any legally qualified candidate for Federal
elective office (or for nomination to such office) unless such candidate
38
39
31) Virginia:
Qualifying (lesser of 20% of 324,300 or $125,000) = $64,860
CHANGES IN EXISTING LAW
Primary
spending limit = 10¢ X 3,243,000 = $324,300
no candidates qualified
government cost= 0
In compliance with subsection 4 of rule XXIX of the Standing
General:
spending limit = 15c X 3,243,000 = $486,450
Rules of the Senate, changes in existing law made by the bill S. 3044
2 candidates qualified - full amount
as reported by the Committee on Rules and Administration, are shown
government cost = $486,450 X 2 = $972,900
as follows (existing law proposed to be omitted is enclosed in black
32)
West Virginia Qualifying (lesser of 20% of $122,800 or $125,000) = $25,000
brackets, new matter is printed in italic, and existing law in which
Primary: spending limit = 10c X 1,228,000 = $122,800 or $125,00
no change is proposed is shown in roman)
:
no candidates qualified
government cost = 0
General:
spending limit = 15c X 1,228,000 = $184,200
COMMUNICATIONS ACT OF 1934
2 candidates qualified - full amount
government cost = $184,200 X 2 = $368,400
(47 U.S.C. 315, 317)
33) Wyoming:
Qualifying (lesser of 20% of $23,400 or $125,000) = $25,000
Primary: spending limit 10 X 234,000 = $23,400 or $125,000
§ 315. Candidates for public office; facilities; rules
2 candidates qualified - matching
government cost =$125,000 + 2 X 2 = $125,000
(a) If any licensee shall permit any person who is a legally qualified
General:
spending limit = 15c X 234,000 =$35,100 ori175,000
candidate for any public office, other than Federal elective office (in-
2 candidates qualified - full amount
government cost = $175,000 X 2 = $350,000
cluding the office of Vice President), to use a broadcasting station,
he shall afford equal opportunities to all other such candidates for
that office in the use of such broadcasting station Provided, That
TOTAL PRIMARY
$10,170,900
such licensee shall have no power of censorship over the material
TOTAL GENERAL
23,929,900
broadcast under the provisions of this section. No obligation is imposed
upon any licensee to allow the use of its station by any such candi-
GRAND TOTAL SENATE
$34,100,800
date. Appearance by a legally qualified candidate on any-
(1) bona fide newscast,
(2) bona fide news interview,
(3) bona fide documentary (if the appearance of the candidate
is incidental to the presentation of the subject or subjects covered
by the news documentary), or
(4) on-the-spot coverage of bona fide news events (including
but not limited to political conventions and activities incidental
thereto),
shall not be deemed to be use of a broadcasting station within the
meaning of this subsection. Nothing in the foregoing sentence shall
be construed as relieving broadcasters, in connection with the presen-
tation of newscasts, news interviews, news documentaries, and on-the-
spot coverage of news events, from the obligation imposed upon them
under this chapter to operate in the public interest and to afford rea-
sonable opportunity for the discussion of conflicting views on issues
of public importance.
(b) The charges made for the use of any broadcasting station [by
any person] by or on behalf of any person who is a legally qualified
candidate for any public office in connection with his campaign for
nomination for election, or election, to such office shall not exceed-
(1) during the forty-five days preceding the date of a primary
or primary runoff election and during the sixty days preceding
the date of a general or special election in which such person is
a candidate, the lowest unit charge of the station for the same
class and amount of time for the same period; and
(2) at any other time, the charges made for comparable use of
such station by other users thereof.
[(c) No station licensee may make any charge for the use of such
station by or on behalf of any legally qualified candidate for Federal
elective office (or for nomination to such office) unless such candidate
41
(C) The term "Federal elective office" means the office of Presi-
40
dent of the United States, or of Senator or Representative in, or
Resident Commissioner or Delegate to, the Congress of the United
(or a person specifically authorized by such candidate in writing to do
States.
so) certifies to such licensee in writing that the payment of such charge
(2) For purposes of subsections (c) and (d), the term "legally qual-
will not violate any limitation specified in paragraph (1), (2), or (3)
ified candidate" means any person who (A) meets the qualifications
of section 104 (a) of the Campaign Communications Reform Act,
prescribed by the applicable laws to hold the office for which he is a
whichever paragraph is applicable.]
candidate and (B) is eligible under applicable State law to be voted
(c) No station licensee may make any charge for the use of such
for by the electorate directly or by means of delegates or electors.
station by or on behalf of any legally qualified candidate for nomi-
(g) The Commission shall prescribe appropriate rules and regu-
nation for election, or for election, to Federal elective office unless such
lations to carry out the provisions of this section.
candidate (or a person specifically authorized by such candidate in
§ 317. Announcement of payment for broadcast
writing to do so) certifies to such licensee in writing that the payment
(a) (1) All matter broadcast by any radio station for which any
of such charge will not exceed the limit on expenditures applicable to
money, service or other valuable consideration is directly or indirectly
that candidate under section 504 of the Federal Election Campaign
paid, or promised to or charged or accepted by, the station SO broad-
Act of 1971, or under section 614 of title 18, United States Code.
casting, from any person, shall, at the time the same is SO broadcast,
[(d) a State by law and expressly-
be announced as paid for or furnished, as the case may be, by such
[(1) has provided that a primary or other election for any
[person: Provided, That] person. If such matter is a political adver-
office of such State or of a political subdivision thereof is subject
tisement soliciting funds for a candidate or a political committee,
to this subsection,
there shall be announced at the time of such broadcast a statement that
[(2) has specified a limitation upon total expenditures for the
a copy of reports filed by that person with the Federal Election Com-
use of broadcasting stations on behalf of the candidacy of each
mission is available from the Federal Election Commission, Wash-
legally qualified candidate in such election,
ington, D.C., and the licensee shall not make any charge for any part
(3) has provided in any such law an unequivocal expression of
of the costs of making the announcement. The term "service or other
intent to be bound by the provisions of this subsection, and
valuable consideration" shall not include any service or property fur-
"(4) has stipulated that the amount of such limitation shall not
ished without charge or at a nominal charge for use on, or in connec-
exceed the amount which would be determined for such election
tion with, a broadcast unless it is SO furnished in consideration for an
under. section 104 (a) (1) (B) or 104 (a) (2) (B) (whichever is
identification in a broadcast of any person, product, service, trade-
applicable) of the Campaign Communications Reform Act had
mark, or brand name beyond an identification which is reasonably re-
such election been an election for a Federal elective office or nomi-
lated to the use of such service or property on the broadcast.
nation thereto;
(2) Nothing in this section shall preclude the Commission from
[then no station licensee may make any charge for the use of such sta-
requiring that an appropriate announcement shall be made at the
tion by or on behalf of any legally qualified candidate in such election
time of the broadcast in the case of any political program or any pro-
unless such candidate (or a person specifically authorized by such
gram involving the discussion of any controversial issue for which any
candidate in writing to do so) certifies to such licensee in writing that
films, records, transcriptions, talent, scripts, or other material or serv-
the payment of such charge will not violate such State limitation.
íce of any kind have been furnished, without charge or at a nominal
(d) If a State by law imposes a limitation upon the amount which
charge, directly or indirectly, as inducement to the broadcast of such
a legally qualified candidate for nomination for election, or for elec-
program.
tion, to public office (other than Federal elective office) within that
(b) In any case where a report has been made to a radio station, as
State may spend in connection with his campaign for such nomina-
required by section 508 of this title, of circumstances which would
tion or his campaign for election, then no station licensee may make
have required an announcement under this section had the considera-
any charge for the use of such station by or on behalf of such candidate
tion been received by such radio station, an appropriate announcement
unless such candidate (or a person specifically authorized in writing
shall be made by such radio station.
by him to do 80) certifies to such licensee in writing that the payment
(c) The licensee of each radio station shall exercise reasonable dili-
of such charge will not violate that limitation.
gence to obtain from its employees, and from other persons with whom
(e) Whoever willfully and knowingly violates the provisions of
it deals directly in connection with any program or program matter
subsection (c) or (d) of this section shall be punished by a fine not to
for broadcast, information to enable such licensee to make the an-
exceed $5,000 or imprisonment for a period not to exceed five years, or
nouncement required by this section.
both. The provisions of sections 501 through 503 of this Act shall not
(d) The Commission may waive the requirement of an announce-
apply to violators of either such subsection.
ment as provided in this section in any case or class of cases with
(f) For the purposes of this section:
respect to which it determines that the public interest, convenience, or
(A) The term "broadcasting station" includes a community
necessity does not require the broadcasting of such announcement.
antenna television system.
(B) The term "licensee" and "station licensee" when used with
respect to a community antenna television system, means the
operator of such system.
42
43
(e) Each station licensee shall maintain a record of any political
nomination for, or election to, such office, the charges made for the
advertisement broadcast, together with the identification of the person
use of such space in connection with his campaign shall not exceed
who caused it to be broadcast, for a period of two years. The record
the charges made for comparable use of such space for other purposes.
shall be available for public inspection at reasonable hours.
[e](f) The Commission shall prescribe appropriate rules and regu-
[LIMITATIONS OF EXPENDITURES FOR USE OF COMMUNICATIONS MEDIA
lations to carry out the provisions of this section.
[SEC. 104. (a) (1) Subject to paragraph (4), no legally qualified
CAMPAIGN COMMUNICATIONS REFORM ACT
candidate in an election (other than a primary or primary runoff
election) for a Federal elective office may-
[(A) spend for the use of communications media on behalf of
[TITLE I-CAMPAIGN COMMUNICATIONS
his candidacy in such election a total amount in excess of the
greater of-
[SHORT TITLE
[(i) 10 cents multiplied by the voting age population (as
[SEC. 101. This title may be cited as the "Campaign Communica-
certified under paragraph (5)) of the geographical area in
which the election for such office is held, or
tions Reform Act".
[DEFINITIONS
((ii) $50,000 or
[(B) spend for the use of broadcast stations on behalf of his
[SEC. 102. For purposes of this title:
candidacy in such election a total amount in excess of 60 per
[(1) The term "communications media" means broadcasting
centum of the account determined under subparagraph (A) with
stations, newspapers, magazines, outdoor advertising facilities,
respect to such election.
and telephones; but, with respect to telephones, spending or an
[(2) No legally qualified candidate in a primary election for nomi-
expenditure shall be deemed to be spending or an expenditure for
nation to a Federal elective office, other than President, may spend-
the use of communications media only if such spending or expend-
[(A) for the use of communications media, or
iture is for the costs of telephones, paid telephonists, and auto-
[(B) for the use of broadcast stations,
matic telephone equipment, used by a candidate for Federal elec-
[on behalf of his candidacy in such election a total amount in excess of
tive office to communicate with potential voters (excluding any
the amounts determined under paragraph (1) (A) or (B), respec-
costs of telephones incurred by a volunteer for use of telephones
tively, with respect to the general election for such office. For purposes
by him).
of this subsection a primary runoff election shall be treated as a
(2) The term "broadcasting station" has the same meaning as
separate primary election.
such term has under section 315 (f) of the Communications Act of
[(3) (A) No person who is a candidate for presidential nomination
may spend-
1934. (3) The term "Federal elective office" means the office of Presi-
[(i) for the use in a State of communications media, or
dent of the United States, or of Senator or Representative in, or
[(ii) for the use in a State of broadcast stations,
Resident Commissioner or Delegate to, the Congress of the United
[on behalf of his candidacy for presidential nomination a total amount
States (and for purposes of section 103 (b) such term includes the
in excess of the amounts which would have been determined under
office of Vice President).
paragraph (1) (A) or (B), respectively, had he been a candidate
(4) The term "legally qualified candidate" means any person
for election for the office of Senator from such State (or for the office
who (A) meets the qualifications prescribed by the applicable
of Delegate or Resident Commissioner in the case of the District of
laws to hold the Federal elective office for which he is a candidate,
Columbia or the Commonwealth of Puerto Rico).
and (B) is eligible under applicable State law to be voted for by
[(B) For purposes of this paragraph (3), a person is a candidate
the electorate directly or by means of delegates or electors.
for presidential nomination if he makes (or any other person makes
[(5) The term "voting age population" means resident popula-
on his behalf) an expenditure for the use of any communications
tion, eighteen years of age and older.
medium on behalf of his candidacy for any political party's nomina-
[(6) The term "State" includes the District of Columbia and
tion for election to the office of President. He shall be considered to
the Commonwealth of Puerto Rico.
be such a candidate during the period-
[(i) beginning on the date on which he (or such other person)
[MEDIA RATE AND RELATED REQUIREMENTS
first makes such an expenditure (or, if later, January 1 of the
year in which the election for the office of President is held), and
[SEC. 103. Note: Subsection (a) amended the Communications Act
((ii) ending on the date on which such political party nomi-
of 1934, which is not affected by repeal of the Campaign Communica-
nates a candidate for the office of President.
tions Reform Act.
For purposes of this title and of section 315 of the Communications
(b) To the extent that any person sells space in any newspaper or
Act of 1934, a candidate for presidential nomination shall be con-
magazine to a legally qualified candidate for Federal elective office, or
sidered a legally qualified candidate for public office.
nomination thereto, in connection with such candidate's campaign for
44
45
[(C) The Comptroller General shall prescribe regulations under
NOTE: Subsection (c) amended the Communications Act of 1934,
which any expenditure by a candidate for presidential nomination for
which is not affected by the repeal of this section.
the use in two or more States of a communications medium shall be
attributed to such candidate's expenditure limitation in each such
REGULATIONS
State, based on the number of persons in such State who can reason-
ably be expected to be reached by such communications medium.
[SEC. 105. The Comptroller General shall prescribe such regulations
[(4) (A) For purposes of subparagraph (B) :
as may be necessary or appropriate to carry out sections 102, (b),
[(i) The term "price index" means the average over a calendar
and 104 (b) of this Act.
year of the Consumer Price Index (all items-United States city
PENALTIES
average) published monthly by the Bureau of Labor Statistics.
(ii) The term "base period" means the calendar year 1970.
SEC. 106. Whoever willfully and knowingly violates any provision
[(B) At the beginning of each calendar year (commencing in 1972),
of section 103 (b), 104(a), or 104(b) or any regulation under section
as there becomes available necessary data from the Bureau of Labor
105 shall be punished by a fine of not more than $5,000 or by imprison-
Statistics of the Department of Labor, the Secretary of Labor shall
ment of not more than five years, or both.]
certify to the Comptroller General and publish in the Federal Register
the per centum difference between the price index for the 12 months
THE FEDERAL ELECTION CAMPAIGN ACT OF 1971
preceding the beginning of such calendar year and the price index for
the base period. Each amount determined under paragraph (1) (A)
(i) and (ii) shall be increased by such per centum difference. Each
amount SO increased shall be the amount in effect for such calendar
TITLE III-DISCLOSURE OF FEDERAL CAMPAIGN FUNDS
year.
[(5) Within 60 days after the date of enactment of this Act, and
DEFINITIONS
during the first week of January in 1973 and every subsequent year,
SEC. 301. When used in this title-
the Secretary of Commerce shall certify to the Comptroller General
(a) "election" means (1) a general, special, primary, or runoff elec-
and publish in the Federal Register an estimate of the voting age
tion, (2) a convention or caucus of a political party held to nominate
population of each State and congressional district for the last calen-
dar year ending before the date of certification.
a candidate, (3) a primary election held for the selection of delegates
[(6) Amounts spent for the use of communications media on behalf
to a national nominating convention of a political party, and (4) a
of any legally qualified candidate for Federal elective office (or for
primary election held for the expression of a preference for the nomi-
nomination to such office) shall, for the purposes of this subsection,
nation of persons for election to the office of President [, and (5) the
be deemed to have been spent by such candidate. Amounts spent for
election of delegates to a constitutional convention for proposing
amendments to the Constitution of the United States]
the use of communications media by or on behalf of any legally
qualified candidate for the office of Vice President of the United
(b) "candidate" means an individual who seeks nomination for
States shall, for the purposes of this section, be deemed to have been
election, or election, to Federal office, whether or not such indi-
spent by the candidate for the office of President of the United States
vidual is elected, and, for purposes of this paragraph, an individ-
with whom he is running.
ual shall be deemed to seek nomination for election, or election,
((7) For purposes of this section and section 315 (c) of the Com-
if he has (1) taken the action necessary under the law of a State
munications Act of 1934-
to qualify himself for nomination for election, or election, to Fed-
[(A) spending and charges for the use of communications
eral office, or (2) received contributions or made expenditures, or
media include not only the direct charges of the media but also
has given his consent for any other person to receive contributions
agents' commissions allowed the agent by the media, and
or make expenditures, with a view to bringing about his nomi-
nation for election, or election, to such office;
[(B) any expenditure for the use of any communications medi-
um by or on behalf of the candidacy of a candidate for Federal
(c) "Federal office" means the office of President or Vice Presi-
elective office (or nomination thereto) shall be charged against
dent of the United States; or of Senator or Representative in, or
the expenditure limitation under this subsection applicable to the
Delegate or Resident Commissioner to, the Congress of the United
election in which such medium is used.
States;
[(b) No person may make any charge for the use by or on behalf
[(d) "political committee" means any committee, association,
of any legally qualified candidate for Federal elective office (or for
or organization which accepts contributions or makes expendi-
nomination to such office) of any newspaper, magazine, or outdoor
tures during a calendar year in an aggregate amount exceeding
advertising facility, unless such candidate (or a person specifically
$1,000;
authorized by such candidate in writing to do so) certifies in writing
(d) "political committee" means-
to the person making such charge that the payment of such charge will
(1) any committee, club, association, or other group of
not violate paragraph (1), (2), or (3) of subsection (a), whichever
persons which receives any contributions or mokes expendi-
is applicable.]
46
47
tures during a calendar year in an aggregate amount exceed-
result of a primary held for the selection of delegates to a
ing $1,000;
national nominating convention of a political party or for
(2) any national committee, association, or organization
the expression of a preference for the nomination of persons
of a political party, any State affiliate or subsidiary of a na-
for election to the office of President, or for the purpose of in-
tional political party, and any State central committee of a
fluencing the election of delegates to a constitutional conven-
political party; and
tion for proposing. amendments to the Constitution of the
(3) any committee, association, or organization engaged
United States;
in the administration of a separate segregated fund described
(2) a contract, promise, or agreement, whether or not
in section 610 of title 18, United States Code;
legally enforceable, to make an expenditure, and
(e) "contribution" means—
[(3) a transfer of funds between political committees;"
(1) a gift, subscription (including any assessment, fee, or
(f) "expenditure"-
membership dues), loan, advance, or deposit of money or any-
(1) means a purchase, payment, distribution, loan, advance,
thing of value, made for the purpose of influencing the nomi-
deposit, or gift of money or anything of value, made for the
nation for election, or election, of any person to Federal of-
purpose of-
fice or as a presidential or vice-presidential elector, or for the
(A) influencing the nomination for election, or the
purpose of influencing the result of a primary held for the
election, of any person to Federal office, or to the office
selection of delegates to a national nominating convention of
of presidential and vice-presidential elector;
a political party or for the expression of a preference for the
(B) influencing the result of a primary election held
nomination of persons for election to the office of President,
for the selection of delegates to a national nominating
[or for the purpose of influencing the election of delegates to
convention of a political party or for the expression of a
a constitutional convention for proposing amendments to the
preference for the nomination of persons for election to
Constitution of the United States or for the purpose of
the office of President;
financing any operations of a political committee (other than
(C) financing any operations of a political committee;
a payment made or obligation incurred by a corporation or a
or
labor organization which, under the provisions of the last
(D) paying, at any time, any debt or obligation in-
paragraph of section 610 of title 18, United States Code,
curred by a candidate or a political committee in connec-
would not constitute a contribution by that corporation or
tion with any campaign for nomination for election, or
labor union), or for the purpose of paying, at any time, any
for election, to Federal office;
debt or obligation incurred by a candidate or a political com-
(2) means the transfer of funds by a political committee to
mittee in connection with any campaign for nomination for
another political committee; but
election, or for election, to Federal office;
(3) does not include-
[(2) a contract, promise, or agreement, whether or not
(A) the value of services rendered by individuals who
legally enforceable, to make a contribution for any such pur-
volunteer to work without compensation on behalf of a
pose;
candidate; or
[(3) a transfer between political committees;
(B) any payment made or obligation incurred by a
(3) funds received by a political committee which are
corporation or a labor organization which, under the pro-
transferred to that committee from another political com-
visions of the last paragraph of section 610 of title 18,
mittee;
United States Code, would not constitute an expenditure
[(4)] (3) the payment, by any person other than a candi-
by that corporation or labor organization;
date or political committee, of compensation for the personal
[(g) "supervisory officer" means the Secretary of the Senate
services of another person which are rendered to such candi-
with respect to candidates for Senator; the Clerk of the House of
date or committee without charge for any such purpose; and
Representatives with respect to candidates for Representatives in,
[(5)] (4) notwithstanding the foregoing meanings of
or Delegate or Resident Commissioner to, the Congress of the
"contribution", the word shall not be construed to include
United States; and the Comptroller General of the United States
services provided without compensation by individuals vol-
in any other case;
unteering a portion or all of their time on behalf of a candi-
(g) "Commission" means the Federal Election Commission;
date or political committee;
(h) "person" means an individual, partnership, committee, as-
[(f) "expenditure" means—
sociation, corporation, labor organization, and any other orga-
[(1) a purchase, payment, distribution, loan, advance, de-
nization or group of persons; [and]
posit, or gift of money or anything of value, made for the
(i) "State" means each State of the United States, the District
purpose of influencing the nomination for election, or elec-
of Columbia, the Commonwealth of Puerto Rico, and any terri-
tion, of any person to Federal office, or as a presidential and
tory or possession of the United States[];
vice-presidential elector, or for the purpose of influencing the
48
(j) "identification" means-
(1) in the case of an individual, his full name and the full
49
address of his principal place of residence; and
(2) in the case of any other person, the full name and ad-
$100. The treasurer shall preserve all receipted bills and accounts re-
dress of that person;
quired to be kept by this section for periods of time to be determined
(k) "national committee" means the duly constituted organiza-
by the [supervisory officer.] Commission.
tion which, by virtue of the bylaws of a political party is respon-
(e) Any political committee which solicits or receives contributions
sibel for the day-to-day operation of that political party at the
or makes expenditures on behalf of any candidate that is not author-
national level, as determined by the Commission; and
ized in writing by such candidate to do SO shall include a notice on the
(l) "political party" means an association, committee, or or-
face or front page of all literature and advertisements published in
ganization which nominates a candidate for election to any Fed-
connection with such candidate's campaign by such committee or on
eral office whose name appears on the election ballot as the candi-
its behalf stating that the committee is not authorized by such candi-
date of that association, committee, or organization.
date and that such candidate is not responsible for the activities of
such committee.
ORGANIZATION OF POLITICAL COMMITTEES
[(f) (1) Any political committee shall include on the face or front
page of all literature and advertisements soliciting funds the follow-
SEC. 302. (a) Every political committee shall have a chairman and
ing notice:
a treasurer. No contribution and no expenditure shall be accepted or
["A copy of our report filed with the appropriate supervisory officer
made by or on behalf of a political committee at a time when there is a
is (or will be) available for purchase from the Superintendent of
vacancy in the office of chairman or treasurer thereof. No expenditure
Documents, United States Government Printing Office, Washington,
shall be made for or on behalf of a political committee without the
D.C. 20402."
authorization of its chairman or treasurer, or their designated agents.
[(2) (A) The supervisory officer shall compile and furnish to the
(b) Every person who receives a contribution in excess of $10 for
Public Printer, not later than the last day of March of each year, an
a political committee shall, on demand of the treasurer, and in any
annual report for each political committee which has filed a report
event within five days after receipt of such contribution, render to the
with him under this title during the period from March 10 of the
treasurer a detailed account thereof, including the amount [, the name
preceding calendar year through January 31 of the year in which such
and address (occupation and the principal place of business, if any)]
annual report is made available to the Public Printer. Each such
of the contribution and the identification of the person making such
annual report shall contain-
contribution, and the date on which received. All funds of a political
[(i) a copy of the statement of organization of the political
committee shall be segregated from, and may not be commingled with,
committee required under section 303, together with any amend-
any personal funds of officers, members, or associates of such
ments thereto; and
committee.
[(ii) a copy of each report filed by such committee under sec-
(c) It shall be the duty of the treasurer of a political committee to
tion 304 from March 10 of the preceding year through January 31
keep a detailed and exact account of-
of the year in which the annual report is SO furnished to the
(1) all contributions made to or for such committee;
Public Printer.
(2) the [full name and mailing address (occupation and the
[(B) The Public Printer shall make copies of such annual reports
principal place of business, if any)] identification of every per-
available for sale to the public by the Superintendent of Documents
son making a contribution in excess of $10, and the date and
as soon as practicable after they are received from the supervisory
amount thereof [;] and, if a person's contributions aggregate
officer.]
more than $100, the account shall include occupation, and the
principal place of business (if any) ;
REGISTRATION OF CANDIDATES AND POLITICAL COMMITTEES STATEMENTS
(3) all expenditures made by or on behalf of such committee;
and
SEC. 303. (a) Each candidate shall, within ten days after the date
(4) the [full name and mailing address (occupation and the
on which he has qualified under State law as a candidate, or on which
principal place of business, if any): identification of every person
he, or any person authorized by him to do so, has received a contri-
to whom any expenditure is made, the date and amount thereof
bution or made an expenditure in connection with his campaign or for
and the name and address of, and office sought by, each candidate
the purpose of preparing to undertake his campaign, file with the
on whose behalf such expenditure was made.
Commission a registration statement in such form as the Commission
(d) It shall be the duty of the treasurer to obtain and keep a re-
may prescribe. The statement shall include-
ceipted bill, stating the particulars, for every expenditure made by
(1) the identification of the candidate, and any individual,
or on behalf of a political committee in excess of $100 in amount, and
political committee, or other person he has authorized to receive
for any such expenditure in a lesser amount, if the aggregate amount
contributions or make expenditures on his behalf in connection
of such expenditures to the same person during a calendar year exceeds
with his campaign;
(2) the identification of his campaign depositories. together
with the title and number of each account at each such depository
which is to be used in connection with his campaign, and safety
50
51
deposit box to be used in connection therewith, and the identifi-
Any change in information previously submitted in a
cation of each individual authorized by him to make any expendi-
statement of organization shall be reported to the [supervisory officer]
ture or withdrawal from such account or box; and
Commission within a ten-day-period following the change.
(3) such additional relevant information as the Commission
[(d)](e) Any committee which, after having filed one or more
may require.
statements of organization, disbands or determines it will no longer
(b) [Each political committee which anticipates receiving
receive contributions or make expenditures during the calendar year
contributions or making expenditures during the calendar years in an
in an aggregate amount exceeding $1,000 shall SO notify the [super-
aggregate amount exceeding $1,000 shall file with the supervisory
visory officer.] Commission.
officer a statement of organization, within ten days after its organiza-
tion or, if later, ten days after the date on which it has information
REPORTS [BY POLITICAL COMMITTEES AND CANDIDATES
which causes the committee to anticipate it will receive contributions
or make expenditures in excess of $1,000.] The treasurer of each
SEC. 304. (a) (1) Each treasurer of a political committee support-
political committee shall file with the Commission a statement of or-
ing a candidate or candidates [for election for nomination for elec-
ganization within ten days after the date on which the committee is
tion, or for election, to Federal office, and each candidate for election]
organized. Each such committee in existence at the date of enactment
for nomination for election, or for election, to such office, shall file with
of [this Act the Federal Election Campaign Act Amendments of
the [appropriate supervisory officer] Commission reports of receipts
1974 shall file a statement of organization with the [supervisory of-
and expenditures on forms to be prescribed or approved by [him.] it.
ficer Commission at such time as The it prescribes.
[Such reports shall be filed on the tenth day of March, June, and
[(b)] (c) The statement of organization shall be in such form as the
September, in each year, and on the fifteenth and fifth days next pre-
Commission shall prescribe, and shall include-
ceding the date on which an election is held, and also by the thirty-
(1) the name and address of the committee;
first day of January. Such reports shall be filed on the tenth day of
(2) the names, addresses, and relationships of affiliated or con-
pril, July, and October of each year, on the tenth day preceding an
nected organizations;
election, and on the last day of January of each year. Notwithstanding
(3) the area, scope, or jurisdiction of the committee;
the preceding sentence, the reports required by that sentence to be filed
(3) the geographic area or political jurisdiction within which
during pril, July, and October by or relating to a candidate during
the committee will operate, and a general description of the com-
a year in which no Federal election is held in which he is a candidate,
mittee's authority and activities;
may be filed on the twentieth day of each month. Such reports shall be
(4) the name, address, and position of the custodian of books
complete as of such date as the [supervisory officer Commission may
and accounts;
prescribe, which shall not be less than five days before the date of
(5) the name, address, and position of other principal officers,
filing except that any contribution of $5,000 or more received after
including officers and members of the finance committee, if any;
the last report is filed prior to the election shall be reported within
(6) the name, address, office sought, and party affiliate of (A)
forty-eight hours after its receipt. If the person making any anonym-
each candidate whom the committee is supporting, and (B) any
ous contribution is subsequently identified, the identification of the
other individual, if any, whom the committee is supporting for
contributor shall be reported to the Commission within the reporting
nomination for election, or election, to any public office whatever;
period within which he is identified.
or, if the committee is supporting the entire ticket of any party,
(2) Upon a request made by a Presidential candidate or a political
the name of the party;
committee which operates in more than one State, or upon its own
(7) a statement whether the committee is a continuing one;
motion, the Commission may waive the reporting dates (other than
(8) the disposition of residual funds which will be made in the
January 31) set forth in paragraph (1), and require instead that such
event of dissolution;
candidates or political committees file reports not less frequently than
[(9) a listing of all banks, safety deposit boxes, or other reposi-
monthly. The Commission may not require a Presidential candidate
tories used
or a political committee operating in more than one State to file more
(9) the name and address of the campaign depositories used by
than eleven reports (not counting any report to be filed on Janu-
that committee, together with the title and number of each account
ary 31) during any calendar year. If the Commission acts on its own
and safety deposit box used by that committee at each depository,
motion under this paragraph with respect to a candidate or a political
and the identification of each individual authorized to make with-
committee, that candidate or committee may obtain judicial review in
drawals or payments out of such account or box;
accordance with the provisions of chapter 7 of title 5, United States
(10) a statement of the reports required to be filed by the com-
Code.
mittee with State or local officers, and, if so, the names, addresses,
(b) Each report under this section shall disclose-
and positions of such persons; and
(1) the amount of cash on hand at the beginning of the report-
(11) such other information as shall be required by the [super-
ing period;
visory officer. Commission.
(2) the full name and mailing address (occupation and the
principal place of business, if any) of each person who has made
53
52
of any ear-marked, encumbered, or restricted contribution or other
one or more contributions to or for such committee or candidate
special fund; and
(including the purchase of tickets for events such as dinners,
[13] (14) such other information as shall be required by the
luncheons, rallies, and similar fundraising events) within the
[supervisory officer." Commission.
calendar year in an aggregate amount or value in excess of $100,
(c) The reports required to be filed by subsection (a) shall be
together with the amount and date of such contributions;
cumulative during the calendar year to which they relate, but where
(3) the total sum of individual contributions made to or for
there has been no change in an item reported in a previous report
such committee or candidate during the reporting period and not
during such year, only the amount need be carried forward.] The
reported under paragraph (2);
reports required to be filed by subsection (a) shall be cumulative dur-
(4) the name and address of each political committee or candi-
ing the calendar year to which they relate, and during such additional
date from which the reporting committee or the candidate re-
periods of time as the Commission may require. If no contributions
ceived, or to which that committee or candidate made, any trans-
or expenditures have been accepted or expended during a calendar
fer of funds, together with the amounts and dates of all transfers;
year, the treasurer of the political committee or candidate shall file a
(5) each loan to or from any person within the calendar year
statement to that effect.
in an aggregate amount or value in excess of $100, together with
(d) This section does not require a Member of Congress to report,
the full names and mailing addresses (occupations and the prin-
as contributions received or as expenditures made, the value of photo-
cipal place of business, if any) of the [lender and endorsers,]
graphic, matting, or recording services furnished to him before the
lender, endorsers, and guarantors, if any, and the date and amount
first day of January of the year preceding the year in which his term
of such loans;
of office expires if those services were furnished to him by the Senate
(6) the total amount of proceeds from (A) the sale of tickets
Recording Studio, the House Recording Studio, or by any individual
to each dinner, luncheon, rally, and other fundraising event;
whose pay is disbursed by the Secretary of the Senate or the Clerk of
(B) mass collections made at such events; and (C) sales of items
the House of Representatives and who furnishes such services as his
such as political campaign pins, buttons, badges, flags, emblems,
primary duty as an employee of the Senate or House of Representa-
hats, banners, literature, and similar materials;
tives, or if such services were paid for by the Republican or Demo-
(7) each contribution, rebate, refund, or other receipt in excess
cratic Senatorial Campaign Committee, the Democratic National Con-
of $100 not otherwise listed under paragraphs (2) through (6) ;
gressional Committee, or the National Republican Congressional
(8) the total sum of all receipts by or for such committee or
Committee.
candidate during the reporting period;
(e) Every person (other than a political committee or candidate)
(9) the [full name and mailing address (occupation and the
who makes contributions or expenditures, other than by contribution
principal place of business, if any)] identification of each person
to a political committee or candidate, in an aggregate amount in excess
to whom expenditures have been made by such committee or on
of $100 within a calendar year shall file with the Commission a state-
behalf of such committee or candidate within the calendar year
ment containing the information required by this section. Statements
in an aggregate amount or value in excess of $100, the amount,
required by this subsection shall be filed on the dates on which reports
date, and purpose of each such expenditure and the name and
by political committees are filed, but need not be cumulative:
address of, and office sought by, each candidate on whose behalf
such expenditure was made;
[REPORTS BY OTHER THAN POLITICAL COMMITTEES
(10) the [full name and mailing address (occupation and the
principal place of business, if any)] identification of each person
[SEC. 305. Every person (other than a political committee or can-
to whom an expenditure for personal services, salaries, and reim-
didate) who makes contributions or expenditures, other than by con-
bursed expenses in excess of $100 has been made, and which is not
tribution to a political committee or candidate, in an aggregate amount
otherwise reported, including the amount, date, and purpose of
in excess of $100 within a calendar year shall file with the supervisory
such expenditure;
officer a statement containing the information required by section 304.
(11) the total sum of expenditures made by such committee or
Statements required by this section shall be filed on the dates on which
candidate during the calendar year;
reports by political committees are filed, but need not be cumulative.]
(12) the amount and nature of debts and obligations owed by
or to the committee, in such form as the [supervisory officer]
REQUIREMENTS RELATING TO CAMPAIGN ADVERTISING
Commission may prescribe and a continuous reporting of their
SEC. 305. (a) No person shall cause any political advertisement to
debts and obligations after the election at such periods as the
be published unless he furnishes to the publisher of the advertisement
[supervisory officer] Commission may require until such debts
his identification in writing, together with the identification of any
and obligations are extinguished, together with a statement as to
person authorizing him to cause such publication.
the circumstances and conditions under which any such debt or
(b) Any published political advertisement shall contain a statement,
obligation is extinguished and the consideration therefor; [and]
in such form as the Commision may prescribe, of the identification of
(13) such information as the Commission may require for the
the person authorizing the publication of that advertisement.
disclosure of the nature, amount, source, and designated recipient
54
55
(c) Any publisher who publishes any political advertisement shall
that such action will not have any adverse effect on the purposes
maintain such records as the Commission may prescribe for a period of
of this title, and
two years after the date of publication setting forth such advertise-
(2) any category of political committees of the obligation to
ment and any material relating to identification furnished to him in
comply with such if such committees-
connection therewith, and shall permit the public to inspect and copy
(A) primarily support persons seeking State or local office,
those records at reasonable hours.
and
(d) To the extent that any person sells space in any newspaper or
(B) do not operate in more than one State or do not
magazine to a candidate for Federal office, or nomination thereto, in
operate on a statewide basis.
connection with such candidate's campaign for nomination for, or elec-
(d) The [supervisory officer] Commission shall, by published regu-
tion to, such office, the charges made for the use of such space in con-
lations of General applicability, prescribe the manner in which contri-
nection with his campaign shall not exceed the charges made for com-
butions and expenditures in the nature of debts and other contracts,
parable use of such space for other purposes.
agreements, and promises to make contributions or expenditures shall
(e) Any political committee shall include on the face or front page
be reported. Such regulations shall provide that they be reported in
of all literature and advertisements soliciting contributions the fol-
separate schedules. In determining aggregate amounts of contribu-
lowing notice:
tions and expenditures, amounts reported as provided in such regula-
"A copy of our report filed with the Federal Election Commis-
tions shall not be considered until actual payment is made.
sion is available for purchase from the Federal Election Com-
mission, Washington, D.C."
REPORTS ON CONVENTION FINANCING
(f) As used in this section, the term-
(1) "political advertisements" means any matter advocating the
SEC. 307. Each committee or other organization which-
election or defeat of any candidate or otherwise seeking to in-
(1) represents a State, or a political subdivision thereof, or any
fluence the outcome of any election, but does not include any bona
group of persons, in dealing with officials of a national political
fide news story (including interviews, commentaries, or other
party with respect to matters involving a convention held in such
works prepared for and published by any newspaper, magazine,
State or political subdivision to nominate a candidate for the office
or other periodical publication the publication of which work is
of President or Vice President, or
not paid for by any candidate, political committee, or agent there-
(2) represents a national political party in making arrange-
of or by any other person) ; and
ments for the convention of such party held to nominate a can-
(2) "published" means publication in a newspaper, magazine,
didate for the office of President or Vice President.
or other periodical publication, distribution of printed leaflets,
shall, within sixty days following the end of the convention (but not
pamphlets, or other documents, or display through the use of
later than twenty days prior to the date on which presidential and
any outdoor advertising facility, and such other use of printed
vice-presidential electors are chosen), file with the [Comptroller Gen-
media as the Commission shall prescribe.
eral of the United States] Federal Election Commission a full and
complete financial statement, in such form and detail as [he] it may
FORMAL REQUIREMENTS RESPECTING REPORTS AND STATEMENTS
prescribe, of the sources from which it derived its funds, and the pur-
poses for which such funds were expended.
SEC. 306. (a) A report or statement required by this title to be filed
FEDERAL ELECTION COMMISSION
by a treasurer of a political committee, a candidate, or by any other
person, shall be verified by the oath or affirmation of the person filing
SEC. 308. (a) (1) There is hereby established, as an independent
such report or statement, taken before any officer authorized to admin-
establishment of the executive branch of the Government of the United
ister oaths.
States, a commission to be known as the Federal Election Commission.
(b) A copy of a report or statement shall be preserved by the person
(2) The Commission shall be composed of the Comptroller Gen-
filing it for a period of time to be designated by the [supervisory
eral, who shall serve without the right to vote, and seven members
officer] Commission in a published regulation.
who shall be appointed by the President, by and with the advice and
(c) The supervisory officer may, by published regulation of general
consent of the Senate. Of the seven members of the Commission-
applicability, relieve any category of political committees of the obli-
(A) two shall be chosen from among individuals recommended
gation to comply with section 304 if such committee (1) primarily
by the President pro tempore of the Senate, upon the recom-
supports persons seeking State or local office, and does not substantially
mendations of the majority leader of the Senate and the minority
support candidates, and (2) does not operate in more than one State
leader of the Senate; and
or on a statewide basis.]
(B) two shall be chosen from among individuals recommended
(c) The Commission may, by published regulation of general ap-
by the Speaker of the House of Representatives, upon the recom-
plicability, relieve-
mendations of the majority leader of the House and the minority
(1) any category of candidates of the obligation to comply
leader of the House.
personally with the requirements of section 304, if it determines
The two members appointed under subparagraph (A) shall not be
affiliated with the same political party; nor shall the two members
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appointed under subparagraph (B). Of the members not appointed
under such subparagraphs, not more than two shall be affiliated with
(f) The Commission shall appoint a General Counsel and an Execu-
the same political party.
tive Director to serve at the pleasure of the Commission. The General
(3) Members of the Commission, other than the Comptroller Gen-
Counsel shall be the chief legal officer of the Commission. The Execu-
eral, shall serve for terms of seven years, except that, of the members
tive Director shall be responsible for the administrative operations of
first appointed-
the Commission and shall perform such other duties as may be dele-
(4) one of the members not appointed under subparagraph
gated or assigned to him from time to time by regulations or orders of
(A) or (B) of paragraph (2) shall be appointed for a term end-
the Commission. However, the Commission shall not delegate the
ing on the April thirtieth first occurirng more than six months
making of regulations regarding elections to the Executive Director.
after the date on which he is appointed;
(g) The Chairman of the Commission shall appoint and fix the com-
(B) one of the members appointed under paragraph (2) (A)
pensation of such personnel as may be necessary to fulfill the duties
shall be appointed for a term ending one year after the April
of the Commission in accordance with the provisions of title 5, United
thirtieth on which the term of the member referred to in sub-
States Code.
paragraph (A) of this paragraph ends;
(h) The Commission may obtain the services of experts and con-
(C) one of the members appointed under paragraph (2) (B)
sultants in accordance with section 3109 of title 5, United States Code.
shall be appointed for a term ending two years thereafter;
(i) In carrying out its responsibilities under this title, the Commis-
(D) one of the members not appointed under subparagraph
sion shall, to the fullest extent practicable, avail itself of the assist-
(A) or (B) of paragraph (2) shall be appointed for a term
ance, including personnel and facilities, of the General Accounting
ending three years thereafter;
Office and the Department of Justice. The Comptroller General and
(E) one of the members appointed under paragraph (2) (A)
the Attorney General are authorized to make available to the Com-
shall be appointed for a term ending four years thereafter;
mission such personnel, facilities, and other assistance, with or with-
(F) one of the members appointed under paragraph (2) (B)
out reimbursement, as the Commission may request.
shall be appointed for a term ending five years thereafter; and
(j) The provisions of section 7324 of title 5, United States Code,
(G) one of the members not appointed under subparagraph
shall apply to members of the Commission notwithstanding the pro-
(4) or (B) of paragraph (2) shall be appointed for a term
visions of subsection (d) (3) of such section.
ending six years thereafter.
(k) (1) Whenever the Commission submits any budget estimate or
(4) Members shall be chosen on the basis of their maturity, experi-
request to the President or the Office of Management and Budget, it
ence, integrity, impartiality, and good judgment. A member may be
shall concurrently transmit a copy of that estimate or request to the
reappointed to the Commission only once.
Congress.
(5) An individual appointed to fill a vacanvy occurring other than
(2) Whenever the Commission submits any legislative recommen-
by the expiration of a term of office shall be appointed only for the
dations, or testimony, or comments on legislation requested by the
unexpired term of the member he succeeds. Any vacancy occurring
Congress or by any Member of Congress to the President or the Office
in the office of member of the Commission shall be filled in the manner
of Management and Budget, it shall concurrently transmit a copy
in which that office was originally filled.
thereof to the Congress or to the member requesting the same. No
(6) The Commission shall elect a Chairman and a Vice Chairman
officer or agency of the United States shall have any authority to re-
from among its members for a term of two years. The Chairman and
quire the Commission to submit its legislative recommendations. or
the Vice Chairman shall not be affiliated with the same political party.
testimony, or comments on legislation, to any office or agency of the
The Vice Chairman shall act as Chairman in the absence or disability
United States for approval, comments, or review, prior to the sub-
of the Chairman, or in the event of a vacancy in that office.
mission of such recommendations, testimony, or comments to the
(b) A vacancy in the Commission shall not impair the right of the
Congress.
remaining members to exercise all the powers of the Commission and
four members thereof shall constitute a quorum.
POWERS OF THE COMMISSION
(c) The Commission shall have an official seal which shall be
SEC. 309. (a) The Commission shall have the power
judicially noticed.
(1) to require, by special or general orders, any person to sub-
(d) The Commission shall at the close of each fiscal year report to
mit in writing such reports and answers to questions as the Com-
the Congress and to the President concerning the action it has taken;
mission may prescribe; and such submissions shall be made within
the names, salaries, and duties of all individuals in its employ and the
such reasonable period and under oath or otherwise as the Com-
money it has disbursed; and shall make such further reports on the
mission may determine;
matters within its jurisdiction and such recommendations for further
(2) to administer oaths;
legislation as may appear desirable.
(3) to require by subpena, signed by the Chairman or the Vice
(e) The principal office of the Commission shall be in or near the
Chairman, the attendance and testimony of witnesses and the pro-
District of Columbia, but it may meet or exercise any or all its powers
duction of all documentary evidence relating to the execution of
in any State.
its duties;
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59
(4) in any proceeding or investigation to order testimony to be
did occur, and the amount of the penalty. Any hearing under this
taken by deposition before any person who is designated by the
section shall be of record and shall be held in accordance with section
Commission and has the power to administer oaths and, in such
554 of title 5, United States Code.
instances, to compel testimony and the production of evidence in
(3) If the person against whom a civil penalty is assessed fails to
the same manner as authorized under paragraph (3) of this sub-
pay the penalty, the Commission shall file a petition for enforcement
section;
of its order assessing the penalty in any appropriate district court
(5) to pay witnesses the same fees and mileage as are paid in
of the United States. The petition shall designate the person against
like circumstances in the courts of the United States;
whom the order is sought to be enforced as the respondent. A copy
(6) to initiate (through civil proceedings for injunctive relief
of the petition shall forthwith be sent by registered or certified mail
and through presentations to Federal grand juries), prosecute,
to the respondent and his attorney of record, and thereupon the Com-
defend, or appeal any civil or criminal action in the name of the
mission shall certify and file in such court the record upon which such
Commission for the purpose of enforcing the provisions of this
order sought to be forced was issued. The court shall have jurisdiction
title and of sections 602, 608, 610, 611, 612, 613, 614, 615, 616, and
to enter a judgment enforcing, modifying, and enforcing as so modi-
617 of title 18, United States Code, through its General Counsel;
fied, or setting aside in whole or in part the order and decision of the
(7) to delegate any of its functions or powers, other than the
Commission or it may remand the proceedings to the Commission for
power to issue subpenas under paragraph (3), to any officer or
such further action as it may direct. The court may determine de novo
employee of the Commission; and
all issues of law but the Commission's findings of fact, if supported by
(8) to make, amend, and repeal such rules, pursuant to the
substantial evidence, shall be conclusive.
provisions of chapter 5 of title 5, United States Code, as are
necessary to carry out the provisions of this Act.
CENTRAL CAMPAIGN COMMITTEES
(b) Any United States district court within the jurisdiction of
which any inquiry is carried on, may, upon petition by the Commission,
SEC. 310. (a) Each candidate shall designate one political commit-
in case of refusal to obey a subpena or order of the Commission issued
tee as-his central campaign committee. A candidate for nomination
under section (a) of this section, issue an order requiring compliance
for election, or for election, to the office of President, may also desig-
therewith. Any failure to obey the order of the court may be punished
nate one political committee in each State in which he is a candidate
by the court as a contempt thereof.
as his State campaign committee for that State. The designation shall
(c) No person shall be subject to civil liability to any person (other
be made in writing, and a copy of the designation, together with such
than the Commission or the United States) for disclosing information
information as the Commission may require, shall be furnished to the
at the request of the Commission.
Commission upon the designation of any such committee.
(d) Notwithstanding any other provision of law, the Commission
(b) No political committee may be designated as the central cam-
shall be the primary civil and criminal enforcement agency for viola-
paign committee of more than one candidate. The central campaign
tions of the provisions of this title, and of sections 602, 608, 610, 611,
committee, and each State campaign committee, designated by a can-
612, 613, 614, 615, 616, and 617 of title 18, United States Code. Any
didate nominated by a political party for election to the office of Presi-
violation of any such provision shall be prosecuted by the Attorney
dent shall be the central campaign committee and the State campaign
General or Department of Justice personnel only after consultation
committee of the candidate nominated by that party for election to the
with, and with the consent of, the Commission.
office of Vice President.
(e) (1) Any person who violates any provision of this Act, or of
(c) (1) Any political committee authorized by a candidate to accept
sections 602, 608, 610, 611, 612, 613, 614, 615, 616, or 617 of title 18,
contributions or make expenditures in connection with his campaign
United States Code, may be assessed a civil penalty by the Commission
for nomination for election, or for election, which is not a central cam-
under paragraph (2) of this subsection of not more than $10,000 for
paign committee or α State campaign committee, shall furnish each re-
each such violation. Each occurrence of a violation of this title and
port required of it under section 304 (other than reports required un-
each day of noncompliance with a disclosure requirement of this title
der the last sentence of section (a) and 311 (b) to that candidate's
or an order of the Commission issued under this section shall constitute
central campaign committee at the time it would, but for this subsec-
a separate offense. In determining the amount of the penalty the Com-
tion, be required to furnish that report to the Commission. Any re-
mission shall consider the person's history of previous violations, the
port properly furnished to a central campaign committee under this
appropriateness of such penalty to the financial resources of the per-
subsection shall be, for purposes of this title, held and considered to
son charged, the gravity of the violation, and the demonstrated good
have been furnished to the Commission at the time at which it was fur-
faith of the person charged in attempting to achieve rapid compliance
nished to such central campaign committee.
after notification of a violation.
(2) The Commission may, by regulation, require any political com-
(2) A civil penalty shall be assessed by the Commission by order
mittee receiving contributions or making expenditures in a State on
only after the person charged with a violation has been given an
behalf of a candidate who, under subsection (a), has designated a
opportunity for a hearing and the Commission has determined, by
State campaign committee for that State to furnish its reports to that
decision incorporating its findings of fact therein, that a violation
State campaign committee instead of furnishing reports to the central
campaign committee of that candidate.
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(3) The Commission may require any political committee to furnish
(2) to prepare, publish, and furnish to the person required to
file such reports and statements a manual setting forth recom-
any report directly to the Commission.
(d) Each political committee which is a central campaign commit-
mended uniform methods of bookkeeping and reporting;
tee or a State campaign committee shall receive all reports filed with
(3) to develop a filing, coding, and cross-indexing system con-
or furnished to it by other political committees, and consolidate and
sonant with the purposes of this title;
furnish the reports to the Commission, together with its own reports,
(4) to make the reports and statements filed with [him] it
in accordance with the provisions of this title and regulations pre-
available for public inspection and copying, commencing as soon
as practicable but not later than the end of the second day follow-
scribed by the Commission.
ing the day during which it was received, and to permit copying
CAMPAIGN DEPOSITORIES
of any such report or statement by hand or by duplicating ma-
chine, as requested by any person, at the expense of such person:
SEC. 311. (a) (1) Each candidate shall designate one or more Na-
Provided, That any information copied from such reports and
tional or State banks as his campaign depositories. The central cam-
statements shall not be sold or utilized by any person for the pur-
paign committee of that candidate, and any other political committee
pose of soliciting contributions or for any commercial purpose:
authorized by him to receive contributions or to make expenditures on
(5) to preserve such reports and statements for a period of ten
his behalf, shall maintain a checking account at a depository 80 desig-
years from the date of receipt, except that reports and statements
nated by the candidate and shall deposit any contributions received
relating solely to candidates for the House of Representatives
by that committee into that account. A candidate shall deposit any
shall be preserved for only five years from the date of receipt;
payment received by him under section 506 of this Act in the account
(6) to compile and maintain a current list of all statements or
maintained by his central campaign committee. No expenditure may be
parts of statements pertaining to each candidate:
made by any such committee on behalf of a candidate or to influence
(6) to compile and maintain a cumulative index listing all
his election except by check drawn on that account, other than petty
statements and reports filed with the Commission during each
cash expenditures as provided in subsection (b).
calendar year by political committees and candidates, which the
(2) The treasurer of each political committee (other than a polit-
Commission shall cause to be published in the Federal Register
ical committee authorized by a candidate to receive contributions or
no less frequently than monthly during even-numbered years and
to make expenditures on his behalf) shall designate one or more Na-
quarterly in odd-numbered years and which shall be in such form
tional or State banks as campaign depositories of that committee, and
and shall include such information as may be prescribed by the
shall maintain a checking account for the committee at each such de-
Commission to permit easy identification of each statement, re-
pository. All contributions received by that committee shall be de-
port, candidate, and committee listed, at least as to their names,
posited in such an account. No expenditure may be made by that com-
the dates of the statements and reports, and the number of pages
mittee except by check drawn on that account, other than petty cash
in each, and the Commission shall make copies of statements and
expenditures as provided in subsection (b).
reports listed in the index available for sale, direct or by mail, at
(b) A political committee may maintain a petty cash fund out of
a price determined by the Commission to be reasonable to the
which it may make expenditures not in excess of $100 to any person in
purchaser;
connection with a single purchase or transaction. A record of petty
(7) to prepare and publish an annual report including compi-
cash disbursements shall be kept in accordance with requirements es-
lations of (A) total reported contributions and expenditures for
tablished by the Commission, and such statements and reports thereof
all candidates, political committees, and other persons during the
shall be furnished to the Commission as it may require.
year; (B) total amounts expended according to such categories
(c) A candidate for nomination for election, or for election, to the
as [he] it shall determine and broken down into candidate, party,
office of President may establish one such depository in each State,
and nonparty expenditures on the national, State, and local levels;
which shall be considered by his State campaign committee for that
(C) total amounts expended for influencing nominations and
State and any other political committee authorized by him to receive
elections stated separately; (D) total amounts contributed accord-
contributions or to make expenditures on his behalf in that State,
ing to such categories of amounts as [he] it shall determine and
under regulations prescribed by the Commission, as his single cam-
broken down into contributions on the national, State, and local
paign depository. The campaign depository of the candidate of a po-
level for candidates and political committees; and (E) aggregate
litical party for election to the office of Vice President shall be the
amounts contributed by any contributor shown to have contributed
campaign depository designated by the candidate of that party for
in excess of $100;
election to the office of President.
(8) to prepare and publish from time to time special reports
comparing the various totals and categories of contributions and
DUTIES OF THE SUPERVISORY OFFICER COMMISSION
expenditures made with respect to preceding elections:
SEC. [308.] 312. (a) It shall be the duty of the [supervisory officer]
(9) to prepare and publish such other reports as [he] it may
Commission-
deem appropriate;
(1) to develop and furnish to the person required by the provi-
sions of this Act prescribed forms for the making of the reports
and statements required to be filed with [him] it under this title;
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63
(10) to assure wide dissemination of statistics, summaries, and
(2) In any action brought under paragraph (1) of this subsection,
reports prepared under this title;
subpenas for witnesses who are required to attend a United States
(11) to make from time to time audits and field investigations
district court may run into any other district.
with respect to reports and statements filed under the provisions
(3) Any party aggrieved by an order granted under paragraph
of this title, and with respect to alleged failures to file any report
(1) of this subsection may, at any time within sixty days after the
or statement required under the provisions of this title;
date of entry thereof, file a petition with the United States court of
(12) to report apparent violations of law to the appropriate
appeals for the circuit in which such person is found, resides, or trans-
law enforcement authorities; and
acts business, for judicial review of such order.
(13) to prescribe suitable rules and regulations to carry out
(4) The judgment of the court of appeals affirming or setting aside,
the provisions of this title.
in whole or in part, any such order of the district court shall be final,
(b) The [supervisory officer] Commission shall encourage, and co-
subject to review by the Supreme Court of the United States upon
operate with, the election officials in the several States to develop
certiorari or certification as provided in section 1254 of title 28, United
procedures which will eliminate the necessity of multiple filings by
States Code.
permitting the filing of copies of Federal reports to satisfy the State
(5) Any action brought under this subsection shall be advanced on
the docket of the court in which filed, and put ahead of all other
requirements. (c) It shall be the duty of the [Comptroller General] Commision
actions (other than other actions brought under this subsection).
to serve as a national clearinghouse for information in respect to the
administration of elections. In carrying out [his] its duties under this
JUDICIAL REVIEW
subsection, the [Comptroller General] Commission shall enter into
contracts for the purpose of conducting independent studies of the
Sec. 313. (a) Any agency action by the Commissioner made under
administration of elections. Such studies shall include, but shall not
the provisions of this Act shall be subject to review by the United
States Court of Appeals for the District of Columbia Circuit upon
be limited to, studies of-
(1) the method of selection of, and the type of duties assigned
petition filed in such court by any interested person. Any petition filed
to, officials and personnel working on boards of elections;
pursuant to this section shall be filed within thirty days after the
(2) practices relating to the registration of voters; and
agency action by the Commission for which review is sought.
(b) The Commission, the national committee of any political party,
(3) voting and counting methods.
Studies made under this subsection shall be published by the [Comp-
and individuals eligible to vote in an election for Federal office, are
troller General Commission and copies thereof shall be made avail-
authorized to institute such actions, including actions for declaratory
able to the general public upon the payment of the cost thereof.
judgment or injunctive relief, as may be appropriate to implement
any provision of this Act.
[Nothing in this subsection shall be construed to authorize the Comp-
troller General to require inclusion of any comment or recommenda-
(c) The provisions of chapter 7 of title 5, United States Code, apply
tion of the Comptroller General in any such study.
to judicial review of any agency action, as defined in section 551 of
(d) (1) Any person who believes a violation of this title has
title 5, United States Code, by the Commission.
occurred may file a complaint with the [supervisory officer Com-
STATEMENTS FILED WITH STATE OFFICERS
mission. If the [supervisory officer Commission determines there is
substantial reason to believe such a violation has occurred [he] it
Sec. [309.] 314. (a) A copy of each statement required to be filed
shall expeditiously make an investigation, which shall also include an
with [a supervisory officer] the Commission by this title shall be filed
investigation of reports and statements filed by the complainant if he
with the Secretary of State (or, if there is no office of Secretary of
is a candidate, of the matter complained of. Whenever in the judg-
State, the equivalent State officer) of the appropriate State. For pur-
ment of the [supervisory officer] Commission, after affording due
poses of this subsection, the term "appropriate State" means—
notice and an opportunity for a hearing, any person has engaged or
(1) for reports relating to expenditures and contributions in
is about to engage in any acts or practices which constitute or will
connection with the campaign for nomination for election, or elec-
constitute a violation of any provision of this title or any regulation
tion, of a candidate to the office of President or Vice President
or order issued thereunder, [the Attorney General on behalf of the
of the United States, each State [in which an expenditure is made
United States the Commission shall institute a civil action for relief,
by him or on his behalf, in which he is a candidate or in which
including a permanent or temporary injunction, restraining order, or
substantial expenditures are made by him or on his behalf; and
any other appropriate order in the district court of the United States
(2) for reports relating to expenditures and contributions in
for the district in which the person is found, resides, or transacts busi-
connection with the campaign for nomination for election, or elec-
ness. Upon a proper showing that such person has engaged or is about
tion, of a candidate to the office of Senator or Representative in,
to engage in such acts or practices, a permanent or temporary injunc-
or Delegate or Resident Commissioner to, the Congress of the
tion, restraining order, or other order shall be granted without bond
United States, the State in which he seeks election.
by such court.
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(b) It shall be the duty of the Secretary of State, or the equivalent
USE OF CONTRIBUTED AMOUNTS FOR CERTAIN PURPOSES
State officer, under subsection (a)
(1) to receive and maintain in an orderly manner all reports
SEC. 317. Amounts received by a candidate as contributions that are
and statements required by this title to be filed with him;
in excess of any amount necessary to defray his campaign expenses
(2) to preserve such reports and statements for a period of ten
(after the application of section 507 (b) (1) of this Act), and any other
years from date of receipt, except that reports and statements
amounts contributed to an individual for the purpose of supporting
relating solely to candidates for the House of Representatives
his activities as a holder of Federal office, may be used by that candi-
shall be preserved for only five years from the date of receipt;
date or individual, as the case may be, to defray any ordinary and
(3) to make the reports and statements filed with him available
necessary expenses incurred by him in connection with his duties as a
for public inspection and copying during regular office hours, com-
holder of Federal office, or may be contributed by him to any orga-
mencing as soon as practicable but not later than the end of the
nization described in section 170(c) of the Internal Revenue Code of
day during which it was received, and to permit copying of any
1954. To the extent any such contribution, contributed, or ex-
such report or statement by hand or by duplicating machine,
penditure thereof is not otherwise required to be disclosed under the
requested by any person, at the expense of such person; and
provisions of this title, such contribution, amount contributed, or ex-
(4) to compile and maintain a current list of all statements or
penditure shall be fully disclosed in accordance with regulations pro-
parts of statements pertaining to each candidate.
mulgated by the Commission. The Commission is authorized to pro-
(c) There is authorized to be appropriated to the Commission in
mulgate such regulations as may be necessary to carry out the pro-
each fiscal year the sum of $500,000, to be made available in such
visions of this section.
amounts as the Commission deems appropriate to the States for the
purpose of assisting them in complying with their duties as set forth in
AUTHORIZATION OF APPROPRIATIONS
this section.
SEC. 318. There are authorized to be appropriated to the Commis-
sion, for the purpose of carrying out its functions under this title,
PROHIBITION OF CONTRIBUTIONS IN NAME OF ANOTHER
title V, and under chapter 29 of title 18, United States Code, not to
SEC.
[310.] 315. No person shall make a contribution in the name of
exceed $5,000,000 for the fiscal year ending June 30, 1974, and not to
another person or knowingly permit his name to be used to effect such
exceed $5,000,000 for each fiscal year thereafter.
a contribution, and no person shall knowingly accept a contribution
PENALTY FOR VIOLATIONS
made by one person in the name of another person.
SEC. 319. (a) Violation of any provision of this title is a misde-
PENALTY FOR VIOLATIONS
meanor punishable by a fine of not more than $10,000, imprisonment
for not more than one year, or both.
[Sec. 311. (a) Any person who violates any of the provisions of this
(b) Violation of any provision of this title with knowledge or rea-
title shall be fined not more than $1,000 or imprisoned not more than
son to know that the action committed or omitted is a violation of this
one year, or both.
title is punishable by a fine of not more than $100,000, imprisonment
[(b) In case of any conviction under this title, where the punish-
for not more than five years, or both.
ment inflicted does not include imprisonment, such conviction shall be
deemed a misdemeanor conviction only.
TITLE IV-GENERAL PROVISIONS
APPROVAL OF PRESIDENTIAL CAMPAIGN EXPENDITURES BY NATIONAL
COMMITTEE
SEC. 316. (a) No expenditure in excess of $1,000 shall be made by or
EFFECT ON STATE LAW
on behalf of any candidate who has received the nomination of his
political party for President or Vice President unless such expendi-
SEC. 403. (a) Nothing in this Act shall be deemed to invalidate
ture has been specifically approved by the chairman or treasurer of
or make inapplicable any provision of any State law, except where
that political party's national committee or the designated representa-
compliance with such provision of law would result in a violation of
tive of that national committee in the State where the funds are to be
a provision of this Act.
expended.
[(b) Notwithstanding subsection (a), no provision of State law
(b) Each national committee approving expenditures under sub-
shall be construed to prohibit any person from taking any action au-
section (a) shall register under section 303 as a political committee
thorized by this Act or from making any expenditure (as such term
and report each expenditure it approves as if it had made that ex-
is defined in section 301 (f) of this Act) which he could lawfully make
penditure, together with the identification of the person seeking ap-
under this Act."
EFFECT ON STATE LAW
proval and making the expenditure.
(c) No political party shall have more than one national committee.
Sec. 403. The provisions of this Act, and of regulations promul-
gated under this Act, preempt any provision of State law with re-
66
67
spect to campaigns for nomination for election, or for election, to
if he has (1) taken the action necessary under the law of a State to
Federal office (as such term is defined in section 301 (c)).
qualify himself for nomination for election, or election, or (2) received
contributions or made expenditures, or has given his consent for any
other person to receive contributions or make expenditures, with a
view to bringing about his nomination for election, or election, to such
SECTIONS 5314 AND 5315 OF TITLE 5,
office;
UNITED STATES CODE
(c) "Federal office" means the office of President or Vice President of
the United States, or Senator or Representative in, or Delegate or
§ 5314. Positions at level III
Resident Commissioner to, the Congress of the United States;
Level III of the Executive Schedule applies to the following posi-
[(d) "political committee" means any individual, committee, asso-
tions, for which the annual rate of basic pay is $40,000
ciation, or organization which accepts contributions or makes expendi-
tures during a calendar year in an aggregate amount exceeding
$1,000;]
(d) "political committee" means-
(60) Members (other than the Comptroller General), Federal Elec-
tion Commission (7).
(1) any committee, club, association, or other group of persons
which receives contributions or makes expenditures during a cal-
endar year in an aggregate amount exceeding $1,000;
§ 5315. Positions at level IV
(2) any national committee, association, or organization of a
Level IV of the Executive Schedule applies to the following posi-
political party, and State affiliate or subsidiary of a national
tions, for which the annual rate of basic pay is $38,000:
political party, and any State central committee of a political
party; and
(3) any committee, association, or organization engaged in the
administration of a separate segregated fund described in section
(98) General Counsel, Federal Election Commission.
610;
(99) Executive Director, Federal Election Commission.
(e) "contribution" means__
(1) a gift, subscription (including any assessment, fee, or mem-
CHAPTER 29 OF TITLE 18, UNITED STATES CODE
bership dues), loan, advance, or deposit of money or anything of
value (except a loan of money by a national or State bank made in
Sec.
591. Definitions.
accordance with the applicable banking laws and regulations and
in the ordinary course of business), made for the purpose of
608. Limitations on contributions and expenditures out of candidates' personal
influencing the nomination for election, or election of any person
and family funds.
to Federal office, for the purpose of influencing the results of a
primary held for the selection of delegates to a national nominat-
614. Limitation on expenditures generally.
ing convention of a political party or for the expression of a pref-
615. Limitation on contributions.
erence for the nomination of persons for election to the office of
616. Form of contributions.
President, [or for the purpose of influencing the election of dele-
617. Embezzlement or conversion of political contributions.
gates to a constitutional convention for proposing amendments to
§ 591. Definitions
the Constitution of the United States] or for the purpose of financ-
ing any operations of a political committee, or for the purpose of
When used in sections 597, 599, 600, 602, 608, 610, [and 611] 611, 614,
paying, at any time, any debt or obligation incurred by a candi-
615, 616, and 617 of this title-
date or a political committee in connection with any campaign
(a) "election" means (1) a general, special, primary, or runoff elec-
for nomination for election, or for election, to Federal office;
tion, (2) a convention or caucus of a political party held to nominate
[(2) a contract, promise, or agreement, express or implied,
a candidate, (3) a primary election held for the selection of delegates
whether or not legally enforceable, to make a contribution for
to a national nominating convention of a political party, or (4) a pri-
such purposes;
mary election held for the expression of a preference for the nomina-
(3) a transfer of funds between political committees;
tion of persons for election to the office of President, [and (5) the
(2) funds received by a political committee which are trans-
election of delegates to a constitutional convention for proposing
ferred to that committee from another political;
amendments to the Constitution of the United States
;
[(4)](3) the payment, by any person other than a candidate or
(b) "candidate" means an individual who seeks nomination for
political committee, of compensation for the personal services of
election, or election, to Federal office, whether or not such individual
another person which are rendered to such candidate or political
is elected, and, for purposes of this paragraph, and individual shall be
committee without charge for any such purpose; and
deemed to seek nomination for election, or election, to Federal office,
68
69
[(5)](4) notwithstanding the foregoing meanings of "con-
tribution", the word shall not be construed to include services pro-
(i) 'political party' means any association, committee, or organiza-
vided without compensation by individuals volunteering a por-
tion which nominates a candidate for election to any Federal office
tion or all of their time on behalf of a candidate or political
whose name appears on the election ballot as the candidate of that
committee;
association, committee, or organization; and
[(f) "expenditure" means-
(j) 'national committee' means the organization which, by virtue
[(1) a purchase, payment, distribution, loan, advance, deposit,
of the bylaws of the political party, is responsible for the day-to-day.
or gift of money or anything of value (except a loan of money
operation of that political party at the national level as determined
by a national or State bank made in accordance with the appli-
by the Federal Election Commission under section 301 (k) of the Fed-
cable banking laws and regulations and in the ordinary course
eral Election Campaign Act of 1971.
of business), made for the purpose of influencing the nomina-
tion for election, or election, of any person to Federal office, for
the purpose of influencing the result of a primary held for the
selection of delegates to a national nominating convention of a
§ 608. Limitations on contributions and expenditures out of candi-
political party or for the expression of a preference for the
dates' personal and family funds
nomination of persons for election to the office of President, or
[(a) (1) No candidate may make expenditures from his personal
for the purpose of influencing the election of delegates to a
funds, or the personal funds of his immediate family, in connection
constitutional convention for proposing amendments to the Con-
with his campaign for nomination for election, or election, to Federal
stitution of the United States;
office in excess of-
[(2) a contract, promise, or agreement, express or implied,
(A) $50,000, in the case of a candidate for the office of Presi-
whether or not legally enforceable, to make any expenditure; and
dent or Vice President;
[(3) a transfer of funds between political committees;
[(B) $35,000, in the case of a candidate for the office of Sen-
(f) "expenditure" means-
ator; or
(1) a purchase, payment, distribution, loan (except a loan of
(C) $25,000, in the case of a candidate for the office of Repre-
money by a National or State bank made in accordance with the
sentative, or Delegate or Resident Commissioner to the Congress.]
applicable banking laws and regulations, and in the ordinary
(a) (1) No candidate may make expenditures from his personal
course of business), advance, deposit, or gift of money or any-
funds, or the personal funds of his immediate family, in connection
thing of value, made for the purpose of-
with his campaigns for nominations for election, and for election, to
(A) influencing the nomination for election, or the elec-
Federal office in excess, in the aggregate of-
tion, of any person to Federal office, or to the office of presi-
(4) $50,000 in the case of a candidate for the office of Presi-
dential and vice-presidential elector;
dent or Vice President;
(B) influencing the result of a primary election held for
(B) $35,000 in the case of a candidate for the office of Sena-
the selection of delegates to a national nominating conven-
tor; or
tion of a political party or for the expression of a preference
(C) $25,000 in the case of a candidate for the office of Repre-
for the nomination of persons for election to the office of
sentative, or Delegate or Resident Commissioner to the Congress.
President;
(2) For purposes of this subsection, "immediate family" means a
(σ) financing any operations of a political committee; or
candidate's spouse, and any child, parent, grandparent, brother, or
(D) paying, at any time, any debt or obligation incurred
sister of the candidate, and the spouses of such persons.
by a candidate or a political committee in connection with
(3) No candidate or his immediate family may make loans or ad-
any campaign for nomination for election, or for election, to
vances from their personal funds in connection with his campaign
Federal office; and
for nomination for election, or election, to Federal office unless such
(2) the transfer of funds by a political committee to another
loan or advance is evidenced by a written instrument fully disclosing
political committee; but
the terms and conditions of such loan or advance.
(3) does not include the value of service rendered by individuals
(4) For purposes of this subsection, any such loan or advance shall
who volunteer to work without compensation on behalf of a candi-
be included in computing the total amount of such expenditures only
date.
to the extent of the balance of such loan or advance outstanding and
(g) "person" and "whoever" mean an individual, partnership, com-
unpaid.
mittee, association, corporation, or any other organization or group of
(b) No candidate or political committee shall knowingly accept any
persons; [and]
contribution or authorize any expenditure in violation of the provi-
(h) "State" means each State of the United States, the District of
sions of this section.
Columbia, the Commonwealth of Puerto Rico, and any territory or
(c) Violation of the provisions of this section is punishable by a
possession of the United States. States;
fine not to exceed [$1,000] $25,000, imprisonment for not to exceed
[one year five years, or both.
*
*
70
71
§ 611. Contributions by Government contractors
tion for use in two or more States shall be attributed to such candi-
Whoever-
date's expenditure limitation in each such State, based on the voting
(a) entering into any contract with the United States or any
department or agency thereof either for the rendition of personal
influenced by such expenditure.
age population in such State which can reasonably be expected to be
services or furnishing any material, supplies, or equipment to the
(b) The national committee of a political party may not make any
United States or any department or agency thereof or for selling
expenditure during any calendar year in connection with the general
any land or building to the United States or any department or
election campaign of any candidate for Federal office who is affiliated
agency thereof, if payment for the performance of such contract
with that party which, when added to the sum of all other expendi-
or payment for such material, supplies, equipment, land, or build-
tures made by that national committee during that year in connection
ing is to be made in whole or in part from funds appropriated by
with the general election campaigns of all candidates affiliated with
the Congress, at any time between the commencement of negotia-
that party, exceeds an amount equal to 2 cents multiplied by the voting
tions for and the later of (1) the completion of performance
age population of the United States. The State committee of a political
under, or (2) the termination of negotiations for, such contract or
party, including any subordinate committees of the State committee,
furnishing of material, supplies, equipment, land or buildings,
may not make any expenditure during the calendar year in connec-
directly or indirectly makes any contribution of money or other
tion with the general election campaign of a candidate for Federal
thing of value, or promises expressly or impliedly to make any
office in such State who is affiliated with that party which, when added
such contribution, to any political party, committee, or candidate
to all other expenditures made by that State committee during that
for public office or to any person for any political purpose or
year in connection with the general election campaigns of candidates
use; or
affiliated with that party, exceeds an amount equal to 2 cents multi-
(b) knowingly solicits any such contribution from any such
person for any such purpose during any such period;
plied subsection- by the voting age population of that State. For purposes of this
shall be fined not more than $5,000 or imprisoned not more than five
(1) the term "voting age population" means voting age popu-
years, or both.
lation certified for the year under section 504(g) of the Federal
It shall not constitute a violation of the provisions of this section for
Election Campaign Act of 1971; and
a corporation or a labor organization to establish, administer, or solicit
(2) the approval by the national committee of a political party
contributions to a separate segregated fund to be utilized for political
of an expenditure by or on behalf of the presidential candidate
purposes by that corporation or labor organization if the establish-
of that party as required by section 316 of that Act is not con-
ment and administration of, and solicitation of contributions to, such
sidered an expenditure by that national committee.
fund do not constitute a violation of section 610.
(c) (1) No person may make any expenditure (other than an ex-
penditure made on behalf of a candidate under the provisions of sub-
§ 614. Limitation on expenditures generally
section (a) (4)) advocating the election or defeat of a clearly identi-
fied candidate during a calendar year which, when added to all other
(a) (1) No candidate may make expenditures in connection with his
expenditures made by that person during the year advocating the elec-
campaign for nomination for election, or for election, to Federal office
tion or defeat of that candidate, exceeds $1,000.
in excess of the amount to which he would be limited under section
(2) For purposes of paragraph (1)-
504 of the Federal Election Campaign Act of 1971 if he were receiving
(A) "clearly identified" means-
payments under title V of that Act.
(i) the candidate's name appears;
(2) Expenditures made on behalf of any candidate are, for the pur-
(ii) a photograph or drawing of the candidate appears;
poses of this section, considered to be made by such candidate.
or
(3) Expenditures made by or on behalf of any candidate for the
(iii) the identity of the candidate is apparent by un-
office of Vice President of the United States are for the purposes of
ambiguous reference;
this section, considered to be made by the candidate for the office of
(B) "person" does not include the National or State commit-
President of the United States with whom he is running.
tee of a political party; and
(4) For purposes of this subsection, an expenditure is made on be-
(σ) "expenditure" does not include any payment made or in-
half of a candidate, including a Vice Presidential candidate, if it is
curred by a corporation or a labor organization which, under the
made by-
provisions of the last paragraph of section 610 of title 18, United
(A) an authorized committee or any other agent of the candi-
States Code, would not constitute an expenditure by that corpora-
date for the purposes of making any expenditure, or
tion or labor organization.
(B) any person authorized or requested by the candidate, an
(D) Any person who knowingly or willfully violates the provisions
authorized committee of the candidate, or an agent of the candi-
of this section. other than subsection (a) (5), shall be punishable by a
date to make the expenditure.
fine of $25,000, imprisonment for a period of not more than five years,
(5) The Federal Election Commission shall prescribe regulations
or both. If any candidate is convicted of violating the provisions of
under which any expenditure by a candidate for Presidential nomina-
this section because of any expenditure made on his behalf (as deter-
73
72
§ 617. Embezzlement or conversion of political contributions
mined under subsection (a) (4)) by a political committee, the treasurer
(a) No candidate, officer, employee, or agent of a political commit-
of that committee, or any other person authorizing such expenditure,
tee, or person acting on behalf of any candidate or political committee,
shall be punishable by a fine of not to exceed $25,000, imprisonment for
shall embezzle, knowingly convert to his own use or the use of another,
not to exceed five years, or both, if such person knew, or had reason to
or deposit in any place or in any manner except as authorized by law,
know, that such expenditure was in excess of the limitation applicable
any contributions or campaign funds entrusted to him or under his
to such candidate under this section.
possession, custody, or control, or use any campaign funds to pay or
§ 615. Limitations on contributions
defray the costs of attorney fees for the defense of any person or per-
sons charged with the commission of a crime; or receive, conceal, or
(a) No person may make a contribution to, or for the benefit of, a
candidate for that candidate's campaign for nomination for election,
knowing it to have been embezzled or converted.
retain the same with intent to convert it to this-personal use or gain,
or election, which, when added to the sum of all other contributions
(b) Violation of the provisions of the section is punishable by a
made by that person for that campaign, exceeds $3,000.
fine of not more than $25,000, imprisonment for not more than ten
(b) (1) No candidate may knowingly accept a contribution for his
years, or both; but if the value of such property does not exceed the
campaign from any person which, when added to the sum of all other
sum of $100, the fine shall not exceed $1,000 and the imprisonment
contributions received from that person for that campaign, exceeds
shall not exceed one year. Notwithstanding the provisions of this sec-
$3,000.
tion, any surplus or unexpended campaign funds may be contributed
(2) No officer or employee of a political committee or of a political
to a national or State political party for political purposes, or to edu-
party may knowingly accept any contribution made for the benefit or
cational or charitable organizations, or may be preserved for use in
use of a candidate which that candidate could not accept under para-
future campaigns for elective office, or for any other lawful purpose.
graph (1).
(c) (1) For purposes of the limitations contained in this section all
INTERNAL REVENUE CODE OF 1954
contributions made by any person directly or indirectly to or for the
benefit of a particular candidate, including contributions which are in
Sec. 41. Contributions to candidates for public office.
any way earmarked, encumbered, or otherwise directed through an in-
(a) GENERAL RULE.-In the case of an individual, there shall be
termediary or conduit to that candidate, shall be treated as contribu-
allowed, subject to the limitations of subsection (b), as a credit against
tions from that person to that candidate.
(2) Contributions made to, or for the benefit of, a candidate nomi-
to one-half of all political contributions, payment of which is made
the tax imposed by this chapter for the taxable year, an amount equal
nated by a political party for election to the office of Vice President
by the taxpayer within the taxable year.
shall be considered. for purposes of this section, to be made to, or for
(b) LIMITATIONS.-
the benefit of, a candidate nominated by that party for election to the
office of President.
for a taxable year shall be limited to $12.50 ($25 in the case of
E(1) MAXIMUM CREDIT.-The credit allowed by subsection (a)
(3) The limitations imposed by subsections (a) and (b) shall apply
a joint return under section 6013).]
separately to each primary, primary runoff, general, and special elec-
tion in which a candidate participates.
(1) MAXIMUM CREDIT.-The credit allowed by subsection (a) for
(d) (1) No individual may make a contribution during any calendar
return under section 6013).
a taxable year shall not exceed $25 ($50 in the case of a joint
year which, when added to the sum of all other contributions made by
that individual during that year, exceeds $25,000.
(2) APPLICATION WITH OTHER CREDITS.-The credit allowed by
(2) Any contribution made for a campaign in a year, other than the
subsection (a) shall not exceed the amount of the tax imposed
by this chapter for the taxable year reduced by the sum of the
calendar year in which the election is held to which that campaign
relates, is, for purposes of this section, considered to be made during
credits allowable under.section:33 (relating to foreign tax credit),
that calendar year in which that election is held.
section 35 (relating to partially tax-exempt interest), section 37
(e) Violation of the provisions of this section is punishable by a fine
relating to retirement income), and section 38 (relating to invest-
ment in certain depreciable property).
of not to exceed $25,000, imprisonment for not to exceed five years, or
both.
(3) VERIFICATION.-The credit allowed by subsection (a) shall
§ 616. Form of contributions
such political contribution is verified in such manner as the
be allowed, with respect to any political contribution, only if
Secretary or his delegate shall prescribe by regulations.
"No person may make a contribution to, or for the benefit of, any
*
candidate or political committee in excess, in the aggregate during any
calendar year, of $100 unless such contributions is made by a written
Sec. 218. Contributions to candidates for public office.
instrument identifying the person making the contribution. Violation
(a) ALLOWANCE OF DEDUCTION.-In the case of an individual, there
of the provisions of this section is punishable by a fine of not to exceed
$1,000, imprisonment for not to exceed one year, or both.
shall be allowed as a deduction any political contribution (as defined
75
74
in section 41 (c) (1)) payment of which is made by such individual
of the tax imposed by chapter 1 on such individual for such taxable
year (as shown on his return), reduced by the sum of the credits (as
within the taxable year.
shown in his return) allowable under sections 33, 37, 38, 40, and 41.
(b) LIMITATIONS.-
[(1) AMOUNT.-The deduction under subsection (a) shall not
(c) Manner and Time of [Designation.-A designation] Election.-
exceed $50 ($100 in the case of a joint return under section 6013)
An election under subsection (a) may be made with respect to any tax-
(1) AMOUNT.-The deduction under subsection (a) shall not exceed
able year-
$100 ($200 in the case of a joint return under section 6013).
(1) at the time of filing the return of the tax imposed by chap-
(2) VERIFICATION.-The deduction under subsection (a) shall
ter 1 for such taxable year, or
be allowed, with respect to any political contribution, only if such
(2) at any other time (after the time of filing the return of the
political contribution is verified in such manner as the Secretary
tax imposed by chapter 1 for such taxable year) specified in regu-
lations prescribed by the Secretary or his delegate.
or his delegate shall prescribe by regulations.
Such [designation] election shall be made in such manner as the Sec-
*
retary or his delegate prescribes by regulations except that, if such
CHAPTER 61-INFORMATION AND RETURNS
[designation] election is made at the time of filing the return of the
tax imposed by chapter 1 for such taxable year, such [designation]
Subchapter A. Returns and records.
election shall be made either on the first page of the return or on the
Subchapter B. Miscellaneous provisions.
page bearing the taxpayer's signature.
SUBCHAPTER A-RETURNS AND RECORDS
Part
I. Records, statements, and special returns.
Part
II. Tax returns or statements.
[SUBTITLE H-FINANCING OF A PRESIDENTIAL ELECTION
Part
III. Information returns.
[CAMPAIGNS
Part
IV. Signing and verifying of returns and other documents.
Part
V. Time for filing returns and other documents.
[Chapter 95. Presidential election campaign fund.
Part
VI. Extension of time for filing returns.
[Chapter 96. Presidential election campaign fund advisory board.
Part Part VIII. Designation of income tax payments to Presidential Election Cam-
VII. Place for filing returns or other documents.
CHAPTER 95-PRESIDENTIAL ELECTION CAMPAIGN FUND
paign Fund.
[Sec. 9001. Short title.
Part VIII. Designation of income tax payments to Federal Election
Sec. 9002. Definitions.
Campaign Fund
Sec. 9003. Condition for eligibility for payments.
[Sec. 9004. Entitlement of eligible candidates to payments.
*
*
*
[Sec. 9005. Certification by Comptroller General.
[Sec. 9006. Payments to eligible candidates.
[Sec. 9007. Examinations and audits; repayments.
[Part VIII-Designation of Income Tax Payments to Presidential Election
Sec. 9008. Information on proposed expenses.
Campaign Fund
Sec. 9009. Reports to Congress; regulations.
Part VIII.-Designation of income tax payments to Federal election
[Sec. 9010. Participation by Comptroller General in judicial proceedings.
(Sec. 9011. Judicial review.
campaign fund
[Sec. 9012. Criminal penalties.
[Sec. 9013. Effective date of chapter.
Sec. 6096. Designation by individuals
(a) In General.-Every individual (other than a nonresident
[Sec. 9001. Short title.
alien) whose income tax liability for the taxable year is $1 or more
[This chapter may be cited as the "Presidential Election Campaign
may designate that $1 shall be paid over to the Presidential Election
Fund Act".
Campaign Fund in accordance with the provisions of section 9006 (a).
[Sec. 9002. Definitions.
In the case of a joint return of husband and wife having an income tax
liability of $2 or more, each spouse may designate that $1 shallibe paid
[For purposes of this chapter-
[(1) The term "authorized committee" means, with respect to
to the fund.]
(a) IN GENERAL.-Exery individual whose incbme tax liability for
the candidates of a political party for President and Vice Presi-
the taxable year is $2 or more is considered to have designated that $2
dent of the United States, any political committee which is au-
shall be paid over to the Federal Election Campaign Fund established
thorized in writing by such candidates to incur expenses to fur-
ther the election of such candidates. Such authorization shall be
under section 506 of the Federal Election Campaign Act of 1971 unless
he elects not to make that designation. In the case of a joint return
addressed to the chairman of such political committee, and a copy
of such authorization shall be filed by such candidates with the
of a husband and wife having an income tax liability of $4 or more,
each spouse shall be considered to have designated that $2 shall be
Comptroller General. Any withdrawal of any authorization shall
also be in writing and shall be addressed and filed in the same
paid over to such fund unless he elects not to make such designation.
manner as the authorization.
(b) Income Tax Liability.-For purposes of subsection (a), the in-
come tax liability of any individual for any taxable year is the amount
76
77
[(2) The term "candidate" means, with respect to any presiden-
tial election, an individual who (A) has been nominated for elec-
tion to the office of President of the United States or the office of
such period to the extent such expense is for property, services,
Vice President of the United States by a major party, or (B) has
or facilities used during such period, and
qualified to have his name on the election ballot (or to have the
[(C) neither the incurring nor payment of which constitutes
names of electors pledged to him on the election ballot) as the
a violation of any law of the United States or of the State in
candidate of a political party for election to either such office
which such expense is incurred or paid.
in 10 or more States. For purposes of paragraphs (6) and (7) of
[An expense shall be considered as incurred by a candidate or an
this section and purposes of section 9004 (a) (2), the term "can-
authorized committee if it is incurred by a person authorized by such
didate" means, with respect to any preceding presidential election,
an individual who received popular votes for the office of Pres-
on behalf of such candidate or such committee. If an authorized com-
candidate or such committee, as the case may be, to incur such expense
ident in such election.
mittee of the candidates of a political party for President and Vice
(3) The term "Comptroller General" means the Comptroller Gen-
President of the United States also incurs expenses to further the
eral of the United States.
election of one or more other individuals to Federal, State, or local
[(4) The term "eligible candidates" means the candidates of a
elective public office, expenses incurred by such committee which are
political party for President and Vice President of the United States
not specifically to further the election of such other individual in-
who have met all applicable conditions for eligibility to receive pay-
dividuals shall be considered as incurred to further the election of or such
ments under this chapter set forth in section 9003.
candidates for President and Vice President in such proportion as the
[(5) The term "fund" means the Presidential Election Campaign
Comptroller General prescribes by rules or regulations.
Fund established by section 9006 (a).
presidential election means-
[(12) The term "expenditure report period" with respect to any
[(6) The term "major party" means, with respect to any presiden-
tial election, a polictial party whose candidate for the office of Presi-
dent in the preceding presidential election received, as the candidate
of such party, 25 percent or more of the total number of popular
the date on which such major party at its national convention
the first day of September before the election, or, if earlier, with
[(A) in the case of a major party, the period beginning with
votes received by all candidates for such office.
nominated its candidate for election to the office of President of
[(7) The term "minor party" means, with respect to any presiden-
dential election; and
the United States, and ending 30 days after the date of the presi-
tial election, a political party whose candidate for the office of Presi-
dent in the preceding presidential election received, as the candidate
[(B) in the case of a party which is not a major party, the
of such party, 5 percent or more but less than 25 percent of the total
which same period as the expenditure report period of the major
number of popular votes received by all candidates for such office.
tial election under subpargarph (A).
has the shortest expediture report period for such presiden- party
[(8) The term "new party" means, with respect to any presidential
election, a political party which is neither a major party nor a minor
[Sec. 9003. Condition for eligibility for payments.
party.
[(9) The term "political committee" means any committee, associa-
[(a) IN GENERAL.-In order to be eligible to receive
tion, or organization (whether or not incorporated) which accepts
contributions or makes expenditures for the purpose of influencing, or
election shall, in writing-
under section 9006, the candidates of a political party in any a presidential payments
attempting to influence, the nomination or election of one or more
((1) agree to obtain and furnish to the Comptroller General
individuals to Federal, State, or local elective public office.
penses with respect to which payment is sought,
such evidence as he may request of the qualified campaign ex-
[(10) The term "presidential election" means the election of presi-
dential and vice-presidential electors.
[(2) agree to keep and furnish to the Comptroller General
[(11) The term "qualified campaign expense" means an expense-
such records, books, and other information as he may
[(A) incurred (i) by the candidate of a political party for
the office of President to further his election to such office or to
paid under such section, and
General under section 9007 and to pay any amounts required to be
[(3) agree to an audit and examination by the Comptroller request,
further the election of the candidate of such political party for
the office of Vice President, or both (ii) by the candidate of a
political party for the office of Vice President to further his elec-
9008. and proposed qualified campaign expenses required under expenses section
[(4) agree to furnish statements of qualified campaign
tion to such office or to further the election of the candidate
of such political party for the office of President, or both, or (iii)
by an authorized committee of the candidates of a political party
election under section 9006, the candidates of a major party in a presidential payments
[(b) Major Parties.-In order to be eligible to receive any
for the offices of President and Vice President to further the
perjury. shall that- certify to the Comptroller General, under penalty of
election of either or both of such candidates to such offices,
[(B) incurred within the expenditure report period (as de-
[(1) such candidates and their authorized committees will not
fined in paragraph (12)), or incurred before the beginning of
ments incur qualified campaign expenses in excess of the aggregate pay-
to which they will be entitled under section 9004, and
79
78
dent, upon compliance with the provisions of section 9003 (a) and
[(2) no contributions to defray qualified campaign expenses
have been or will be accepted by such candidates or any of their
(c), shall be treated as eligible candidates entitled to payments
under section 9006 in an amount computed as provided in subpara-
authorized committees except to the extent necessary to make up
graph (A) by taking into account all the popular votes received by
any deficiency in payments received out of the fund on account
of the application of section 9006 and no contributions to de-
such candidate for the office of President in the preceding presi-
fray expenses which would be qualified campaign expenses but for
dential election. If eligible candidates of a minor party are en-
subparagraph (C) of section 9002 (11) have been or will be ac-
titled to payments under this subparagraph, such entitlement
cepted by such candidates or any of their authorized committees.
shall be reduced by the amount of the entitlement allowed under
[Such certification shall be made within such time prior to the day of
subparagraph (A).
the presidential election as the Comptroller General shall prescribe by
[(3) The eligible candidates of a minor party or a new party in
a presidential election whose candidate for President in such elec-
rules or regulations.
[(c) Minor and New Parties.-In order to be eligible to receive any
tion receives, as such candidate, 5 percent or more of the total num-
payments under section 9006, the candidates of a minor or new party
ber of popular votes cast for the office of President in such election
in a presidential election shall certify to the Comptroller General,
shall be entitled to payments under section 9006 equal in the aggre-
gate to an amount which bears the same ratio to the amount com-
under penalty of perjury, that-
[(1) such candidates and their authorized committees will not
puted under paragraph (1) for a major party as the number of
incur qualified campaign expenses in excess of the aggregate pay-
popular votes received by such candidate in such election bears to
ments to which the eligible candidates of a major party are en-
the average number of popular votes received in such election by
the candidates for President of the major parties. In the case of
titled under section 9004, and
[(2) such candidates and their authorized committees will ac-
eligible candidates entitled to payments under paragraph (2), the
cept and expend or retain contributions to defray qualified cam-
amount allowable under this paragraph shall be limited to the
paign expenses only to the extent that the qualified campaign com-
amount, if any, by which the entitlement under the preceding
incurred by such candidates and their authorized
sentence exceeds the amount of the entitlement under paragraph
mittees expenses certified to under paragraph (1) exceed the aggregate
(2).
payments received by such candidates out of the fund pursuant
[(b) LIMITATIONS.-The aggregate payments to which the eligible
candidates of a political party shall be entitled under subsections (a)
to section certification 9006. shall be made within such time prior to the day of
(2) and (3) with respect to a presidential election shall not exceed an
the [Such presidential election as the Comptroller General shall prescribe by
amount equal to the lower of--
[(1) the amount of qualified campaign expenses incurred by
rules or regulations.]
such eligible candidates and their authorized committees, reduced
[Sec. 9004. Entitlement of eligible candidates to payments.
by the amount of contributions to defray qualified campaign
[(a) IN GENERAL.-Subject to the provisions of this chapter-
expenses received and expended or retained by such eligible candi-
The eligible candidates of a major party in a presidential in
dates and such committees, or
election [(1) shall be entitled to payments under section 9006 equal resi-
[(2) the aggregate payments to which the eligible candidates of
the aggregate to 15 cents multiplied by the total number of of
a major party are entitled under subsection (a) (1), reduced by
dents within the United States who have attained the age 18, of as
the amount of contributions described in paragraph (1) of this
June of the year preceding the year of the presidential
determined by the Bureau of the Census, as of the first election. day
subsection.
(c) RESTRICTIONS.-The eligible candidates of a political party
[(2) (A) The eligible candidates of a minor party in a presi- 9006
shall be entitled to payments under subsection (a) only-
dential election shall be entitled to payments under section ratio to
[(1) to defray qualified campaign expenses incurred by such
equal in the aggregate to an amount which bears the same
eligible candidates or their authorized committees, or
the amount computed under paragraph (1) for a major party Presi- as
[(2) to repay loans the proceeds of which were used to defray
the number of popular votes received by the candidate for
such qualified campaign expenses, or otherwise to restore funds
dent of the minor party, as such candidate, in the preceding presi-
(other than contributions to defray qualified campaign expenses
received by the candidates for President of the major parties in
dential election bears to the average number of popular votes
received and expended by such candidates or such committees)
used to defray such qualified campaign expenses.]
the preceding presidential election.
[(B) If the candidate of one or more political parties candi- (not
[Sec. 9005. Certification by Comptroller General.
a major party) for the office of President was a and
[(a) Initial Certification.-On the basis of the evidence, books,
including date for such office in the preceding presidential election total
records, and information furnished by the eligible candidates of a
number of popular votes received by all candidates for such Presi- office,
received 5 percent or more but less than 25 percent of the
political party and prior to examination and audit under section 9007,
the Comptroller General shall certify from time to time to the Secre-
such candidate and his running mate for the office of Vice
tary for payment to such candidates under section 9006 the payments
to which such candidates are entitled under section 9004.
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81
[(b) Finality of Certifications and Determinations.-Initial certi-
fications by the Comptroller General under subsection (a), and all
which candidates were entitled under section 9004, he shall SO
determinations made by him under this chapter, shall be final and
notify such candidates, and such candidates shall pay to the Sec-
conclusive, except to the extent that they are subject to examination
retary an amount equal to such portion.
and audit by the Comptroller General under section 9007 and judicial
[(2) If the Comptroller General determines that the eligible
review under section 9011.]
candidates of a political" party and their authorized committees
incurred qualified campaign expenses in excess of the aggregate
[Sec. 9006. Payments to eligible candidates.
payments to which the eligible candidates of a major party were
[(a) Establishment of Campaign Fund.-There is hereby estab-
entitled under section 9004, he shall notify such candidates of
lished on the books of the Treasury of the United States a special fund
the amount of such excess and such candidates shall pay to the
to be known as the "Presidential Election Campaign Fund". The Sec-
Secretary an amount equal to such amount.
retary shall, as provided by appropriation Acts, transfer to the fund
(3) If the Comptroller General determines that the eligible
an amount not in excess of the sum of the amounts designated (subse-
candidates of a major party or any authorized committee of such
quent to the previous Presidential election) to the fund by individuals
candidates accepted contributions (other than contributions to
under section 6096.
make up deficiencies in payments out of the fund on account of
[(b) Transfer to the General Fund.-If, after a Presidential elec-
the application of section 9006(d)) to defray qualified campaign
tion and after all eligible candidates have been paid the amount which
expenses (other than qualified campaign expenses with respect to
they are entitled to receive under this chapter, there are moneys re-
which payment is required under paragraph (2)), he shall notify
maining in the fund, the Secretary shall transfer the moneys SO
such candidates of the amount of the contributions SO accepted,
remaining to the general fund of the Treasury.
and such candidates shall pay to the Secretary an amount equal
[(c) Payments From the Fund.-Upon receipt of a certification
such amount.
from the Comptroller General under section 9005 for payment to the
[(4) If the Comptroller General determines that any amount
eligible candidates of a political party, the Secretary shall pay to such
of any payment made to the eligible candidates of a political party
candidates out of the fund the amount certified by the Comptroller
under section 9006 was used for any purpose other than-
General. Amounts paid to any such candidates shall be under the con-
[(A) to defray the qualified campaign expenses with re-
trol of such candidates.
spect to which such payment was made, or
[(d) Insufficient amounts in Funds.-If at the time of a certifica-
[(B) to repay loans the proceeds of which were used, or
tion by the Comptroller General under section 9005 for payment to the
otherwise to restore funds (other than contributions to defray
eligible candidates of a political party, the Secretary or his delegate
qualified campaign expenses which were received and ex-
determines that the moneys in the fund are not, or may not be, suf-
pended) which were used, to defray such qualified campaign
ficient to satisfy the full entitlements of the eligible candidates of all
expenses.
political parties, he shall withhold from such payment such amount
he shall notify such candidates of the amount so used, and
as he determines to be necessary to assure that the eligible candidates
of each political party will receive their pro rata share of their full
such candidates shall pay to the Secretary an amount equal
to such amount.
entitlement. Amounts withheld by reason of the preceding sentence
(5) No payment shall be required from the eligible candidates
shall be paid when the Secretary or his delegate determines that there
of a political party under this subsection to the extent that such
are sufficient moneys in the fund to pay such amounts, or portions
payment, when added to other payments required from such can-
thereof, to all eligible candidates from whom amounts have been
withheld, but, if there are not sufficient moneys in the fund to satisfy
didates under this subsection, exceeds the amount of payments re-
ceived by such candidates under section 9006.
the full entitlement of the eligible candidates of all political parties,
the amounts SO withheld shall be paid in such manner that the eligible
[(c) Notification.-No notification shall be made by the Comptrol-
candidates of each political party receive their pro rata share of their
ler General under subsection (b) with respect to a presidential election
more than 3 years after the day of such election.
full entitlement.]
[(d) Deposit or Repayments.-All payments received by the Secre-
[Sec. 9007. Examinations and audits; repayments.
tary under subsection (b) shall be deposited by him in the general
[(a) Examinations and Audits.-After each presidential election
fund of the Treasury.
the Comptroller General shall conduct a thorough examination and
[(d) DEPOSIT OF REPAYMENTS.-All payments received by the Sec-
audit of the qualified campaign expenses of the candidates of each
retary under subsection (b) shall be deposited by him in the general
political party for President and Vice President.
fund of the Treasury.]
[(b) Repayments.-
[Sec. 9008. Information on proposed expenses.
[(1) If the Comptroller General determines that any portion of
the payments made to the eligible candidates of a political party
[(a) REPORTS BY CANDIDATES.-The candidates of a political party
under section 9006 was in excess of the aggregate payments to
for President and Vice President in a presidential election shall, from
time to time as the Comptroller General may require, furnish to the
83
82
[(b) RECOVERY OF CERTAIN PAYMENTS.-The Comptroller General
Comptroller General a detailed statement, in such form as the Comp-
is authorized through attorneys and counsel described in subsection
troller General may prescribe, of-
(a) to appear in the district courts of the United States to seek recov-
[(1) the qualified campaign expenses incurred by them and
ery of any amounts determined to be payable to the Secretary as a
their authorized committees prior to the date of such statement
result of examination and audit made pursuant to section 9007.
(whether or not evidence of such expenses has been furnished
[(c) DECLARATORY AND INJUNCTIVE RELIEF.-The Comptroller
for purposes of section 9005), and
General is authorized through attorneys and counsel described in sub-
(2) the qualified campaign expenses which they and their
section (a) to petition the courts of the United States for declaratory
authorized committees propose to incur on or after the date of
or injunctive relief concerning any civil matter covered by the provi-
such statement.
sions of this subtitle or section 6096. Upon application of the Comp-
[The Comptroller General shall require a statement under this sub-
troller General, an action brought pursuant to this subsection shall be
section from such candidates of each political party at least once each
heard and determined by a court of three judges in accordance with
week during the second, third, and fourth weeks preceding the day
of the presidential election and at least twice during the week preced-
the provisions of section 2284 of title 28, United States Code, and any
appeal shall lie to the Supreme Court. It shall be the duty of the
ing such day.
judges designated to hear the case to assign the case for hearing at
[(b) PUBLICATION.-The Comptroller General shall, as soon as pos-
the earliest practicable date, to participate in the hearing and deter-
sible after he receives each statement under subsection (a), prepare
mination thereof, and to cause the case to be in every way expedited.
and publish a summary of such statement, together with any other
data or information which he deems advisable, in the Federal Register.
[(d) APPEAL-The Comptroller General is authorized on behalf of
the United States to appeal from, and to petition the Supreme Court
Such summary shall not include any information which identifies any
for certiorari to review, judgments or decrees entered with respect to
individual who made a designation under section 6096.]
actions in which he appears pursuant to the authority provided in this
[Sec. 9009. Reports to Congress; regulations.
section.
[(a) REPORTS.-The Comptroller General shall, as soon as practica-
[Sec. 9011. Judicial review.
ble after each presidential election, submit a full report to the Senate
[(a) REVIEW OF CERTIFICATION, DETERMINATION, OR OTHER ACTION
and House of Representatives setting forth—
[(1) the qualified campaign expenses (shown in such detail as
BY THE COMPTROLLER GENERAL.-Any certification, determination, or
the Comptroller General determines necessary) incurred by the
other action by the Comptroller General made or taken pursuant to the
candidates of each political party and their authorized com-
provisions of this chapter shall be subject to review by the United
States Court of Appeals for the District of Columbia upon petition
mittees; [(2) the amounts certified by him under section 9005 for pay-
filed in such Court by any interested person. Any petition filed pur-
ment to the eligible candidates of each political party; and
suant to this section shall be filed within thirty days after the certifica-
[(3) the amount of payments, if any, required from such can-
tion, determination, or other action by the Comptroller General for
didates under section 9007, and the reasons for each payment
which review is sought.
(b) SUITS To IMPLEMENT CHAPTER.-
Each required. report submitted pursuant to this section shall be printed as a
[(1) The Comptroller General, the national committee of any
political party, and individuals eligible to vote for President are
Senate document.
(b) REGULATIONS, ETc.-The Comptroller General is authorized to
authorized to institute such actions, including actions for declara-
prescribe such rules and regulations, to conduct such examinations
tory judgment or injunctive relief, as may be appropriate to imple-
and audits (in addition to the examinations and audits required by sec-
ment or construe any provision of this chapter.
tion to conduct such investigations, and to require the keep-
[(2) The district courts of the United States shall have juris-
ing and submission of such books, records, and information, as he
diction of proceedings instituted pursuant to this subsection and
deems necessary to carry out the functions and duties imposed on him
shall exercise the same without regard to whether a person
asserting rights under provisions of this subsection shall have
by this chapter.
exhausted any administrative or other remedies that may be pro-
[Sec. 9010. Participation by Comptroller General in judicial pro-
vided at law. Such proceedings shall be heard and determined
by a court of three judges in accordance with the provisions of
[(a) APPEARANCE ceedings. BY COUNSEL.-The Comptroller General is au-
section 2284 of title 28, United States Code, and any appeal shall
thorized to appear in and defend against any action filed under sec-
lie to the Supreme Court. It shall be the duty of the judges desig-
tion 9011, either by attorneys employed in his office or by counsel whom
nated to hear the case to assign the case for hearing at the earliest
he may appoint without regard to the provisions of title 5, United
practicable date, to participate in the hearing and determination
States Code, governing appointments in the competitive service, and
thereof, and to cause the case to be in every way expedited.]
whose compensation he may fix without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title.
84
85
[Sec. 9012. Criminal penalties.
[(2) Any person who violates paragraph (1) shall be fined not
more than $10,000, or imprisoned not more than five years, or both.
[(a) EXCESS CAMPAIGN EXPENSES.-
[(1) It shall be unlawful for an eligible candidate of a political
[(d) FALSE STATEMENTS, ETC.-
party for President and Vice President in a presidential election
[(1) It shall be unlawful for any person knowingly and will-
or any of his authorized committees knowingly and willfully to
fully-
incur qualified campaign expenses in excess of the aggregate pay-
[(A) to furnish any false, fictitious, or fraudulent evidence,
ments to which the eligible candidates of a major party are
books, or information to the Comptroller General under this
entitled under section 9004 with respect to such election.
subtitle, or to include in any evidence, books, or information
[(2) Any person who violates paragraph (1) shall be fined not
SO furnished any misrepresentation of a material fact, or to
more than $5,000, or imprisoned not more than one year or both.
falsify or conceal any evidence, books, or information relevant
In the case of a violation by an authorized committee, any officer
to a certification by the Comptroller General or an examina-
or member of such committee who knowingly and willfully con-
tion and audit by the Comptroller General under this chap-
sents to such violation shall be fined not more than $5,000, or im-
ter; or
[(B) to fail to furnish to the Comptroller General any rec-
prisoned not more than one year, or both.
ords, books, or information requested by him for purposes of
[(b) CONTRIBUTIONS.-
[(1) It shall be unlawful for an eligible candidate of a major
this chapter.
party in a presidential election or any of his authorized commit-
[(2) Any person who violates paragraph (1) shall be fined not
tees knowingly and willfully to accept any contribution to defray
more than $10,000, or imprisoned not more than five years, or both.
qualified campaign expenses, except to the extent necessary to
[(e) KICKBACKS AND ILLEGAL PAYMENTS.-
make up any deficiency in payments received out of the fund on
[(1) It shall be unlawful for any person knowingly and will-
account of the application of section 9006(d), or to defray ex-
fully to give or accept any kickback or any illegal payment in
penses which would be qualified campaign expenses but for sub-
connection with any qualified campaign expense of eligible can-
didates or their authorized committees.
paragraph (C) of section 9002 (11).
[(2) It shall be unlawful for an eligible candidate of a political
[(2) Any person who violates paragraph (1) shall be fined not
party (other than a major party) in a presidential election or any
more than $10,000, or imprisoned not more than five years, or both.
of his authorized committees knowingly and willfully to accept
[(3) In addition to the penalty provided by paragraph (2),
and expend or retain contributions to defray qualified campaign
any person who accepts any kickback or illegal payment in con-
expenses in an amount which exceeds the qualified campaign
nection with any qualified campaign expense of eligible candi-
expenses incurred with respect to such election by such eligible
dates or their authorized committees shall pay to the Secretary,
candidate and his authorized committees.
for deposit in the general fund of the Treasury, an amount equal
[(3) Any person who violates paragraph (1) or (2) shall be
to 125 percent of the kickback or payment received.
fined not more than $5,000, or imprisoned not more than one year,
[(f) UNAUTHORIZED EXPENDITURES AND CONTRIBUTIONS.-
or both. In the case of a violation by an authorized committee,
[(1) Except as provided in paragraph (2), it shall be unlawful
any officer or member of such committee who knowingly and will-
for any political committee which is not an authorized committee
fully consents to such violation shall be fined not more than $5,000,
with respect to the eligible candidates of a political party for
or imprisoned not more than one year, or both.
President and Vice President in a presidential election know-
ingly and willfully to incur expenditures to further the election
[(c) UNLAWFUL USE OF PAYMENTS.-
[(1) It shall be unlawful for any person who receives any pay-
of such candidates, which would constitute qualified campaign
ment under section 9006, or to whom any portion of any payment
expenses if incurred by an authorized committee of such can-
received under such section is transferred, knowingly and will-
didates, in an aggregate amount exceeding $1,000.
fully to use, or authorize the use of, such payment or such portion
[(2) This subsection shall not apply to (A) expenditures by a
broadcaster regulated by the Federal Communications Commis-
for any purpose other than-
[(A) to defray the qualified campaign expenses with re-
sion, or by a periodical publication, in reporting the news or in
spect to which such payment was made, or
taking editorial positions, or (B) expenditures by any organi-
[(B) to repay loans the proceeds of which were used, or
zation described in section 501 (c) which is exempt from tax under
otherwise to restore funds (other than contributions to defray
section 501 (a) in communicating to its members the views of
qualified campaign expenses which were received and ex-
that organization.
pended) which were used, to defray such qualified campaign
[(3) Any political committee which violates paragraph (1)
shall be fined not more than $5,000, and any officer or member of
expenses.
such committee who knowingly and willfully consents to such vio-
lation and any other individual who knowingly and willfully
violates paragraph (1) shall be fined not more than $5,000, or
imprisoned not more than one year, or both.
86
[(g) UNAUTHORIZED DISCLOSURE OF INFORMATION.-
[(1) It shall be unlawful for any individual to disclose any
information obtained under the provisions of this chapter except
as may be required by law.
[(2) Any person who violates paragraph (1) shall be fined not
ROLLCALL VOTES IN COMMITTEE
more than $5,000, or imprisoned not more than one year, or both.]
[Sec. 9013. Effective date of chapter.
In compliance with sections 133 (b) and (d) of the Legislative
Reorganization Act of 1946, as amended, the record of rollcall votes
[The provisions of this chapter shall take effect on January 1, 1973.]
in the Committee on Rules and Administration during its considera-
tion of the original bill (subsequently S. 3044) is as follows:
[CHAPTER 96. PRESIDENTIAL ELECTION CAMPAIGN
1. Motion by Senator Griffin to delete Title I and substitute there-
FUND ADVISORY BOARD
for a proposal to provide candidates for Federal office in general elec-
tions with certain amounts of television time to be paid for from funds
[Sec. 9021. Establishment of Advisory Board.
in the United States Treasury, and to prohibit such candidates from
[(a) ESTABLISHMENT OF BOARD.-There is hereby established an
purchasing additional television time. Rejected: 3 yeas; 6 nays.
advisory board to be known as the Presidential Election Campaign
Fund Advisory Board (hereinafter in this section referred to as the
Yeas-3
Nays-6
"Board"). It shall be the duty and function of the Board to counsel and
Mr. Allen
Mr. Cannon
assist the Comptroller General of the United States in the perform-
Mr. Griffin
Mr. Pell
ance of the duties and functions imposed on him under the Presiden-
Mr. Hatfield 1
Mr. Robert C. Byrd 1
tial Election Campaign Fund Act.
Mr. Williams
[(b) COMPOSITION OF BOARD.-The Board shall be composed of the
Mr. Cook
following members:
Mr. Hugh Scott 1
[(1) the majority leader and minority leader of the Senate and
2. Question posed by the Chairman: Shall the Committee approve
the Speaker and minority leader of the House of Representatives,
Title I as contained in the draft bill (Committee Print No. 3) ?
who shall serve ex officio;
[(2) two members representing each political party which is a
Adopted 7 yeas; 2 nays.
major party (as defined in section 9002 which members shall
Yeas-7
Nays-2
be appointed by the Comptroller General from recommendations
Mr. Cannon
Mr. Allen
submitted by such political party; and
[(3) three members representing the general public, which
Mr. Pell
Mr. Griffin
members shall be selected by the members described in paragraphs
Mr. Robert C. Byrd 1
Mr. Williams
(1) and (2).
[The terms of the first members of the Board described in paragraphs
Mr. Cook
(2) and (3) shall expire on the sixtieth day after the date of the first
Mr. Hugh Scott 1
presidential election following January 1, 1973, and the terms of sub-
Mr. Hatfield 1
sequent members described in paragraphs (2) and (3) shall begin on
3. Motion by Senator Griffin that the bill be reported to the Senate
the sixty-first day after the date of a presidential election and expire
without recommendation (offered as a substitute for Senator Pell's
on the sixtieth day following the date of the subsequent presidential
motion, which follows). Rejected: 3 yeas; 6 nays.
election. The Board shall elect a Chairman from its members.
[(c) COMPENSATION.-Members of the Board (other than members
Yeas-3
Nays-6
described in subsection (b) (1) shall receive compensation at the rate
Mr. Allen
Mr. Cannon
of $75 a day for each day they are engaged in performing duties and
Mr. Griffin
Mr. Pell
functions as such members, including traveltime, and, while away
Mr. Hatfield 1
Mr. Robert C. Byrd 1
from their homes or regular places of business, shall be allowed travel
Mr. Williams
expenses, including per diem in lieu of subsistence, as authorized by
Mr. Cook
law for persons in the Government service employed intermittently.
Mr. Hugh Scott 1
[(d) STATUS.-Service by an individual as a member of the Board
shall not, for purposes of any other law of the United States be con-
1 Proxy.
sidered as service as an officer or employee of the United States.]
(87)
88
4. Motion by Senator Pell that the draft bill be favorably reported
to the Senate. Adopted : 8 yeas; 1 nay.
Yeas-8
Nays-1
Mr. Cannon
Mr. Allen
ADDITIONAL VIEWS OF MR. PELL
Mr. Pell
Mr. Robert C. Byrd 1
It is particularly gratifying to me as Chairman of the Subcommit-
Mr. Williams
tee on Privileges and Elections that the Committee is reporting legis-
Mr. Cook
lation in which public financing of elections is such a strong
Mr. Hugh Scott 1
component.
Mr. Griffin
The public financing features of the Federal Election Campaign
Mr. Hatfield 1
Act Amendments of 1974 stem from comprehensive hearings before
the subcommittee which I conducted on September 18, 19, 20 and 21,
1 Proxy.
1973. Many constructive recommendations emerged from these hear-
ings. They were distilled into my own bill, S. 2718, which I introduced
on November 16, which was reported to the Committee for considera-
tion, and which formed the basis for our deliberations.
I am pleased that the legislation contains principles which I had
advanced. Among these are: coverage of all Federal elections, pri-
mary and general; a threshold amount to be raised in small contribu-
tions by candidates in primary elections to ensure each candidate's
seriousness of intent; and the concept of matching these small contri-
butions with federal dollars.
I am also pleased that the legislation contains provisions which I
recommended in Committee. Among these are: an accelerated report-
ing procedure by the Federal Election Commission to permit comple-
tion of examinations and audits of campaign expenditures at the
earliest practicable time; a greater limitation on the amounts which
an individual candidate may contribute to his or her own cam-
paign; and a new method of implementing the dollar check-off,
whereby this check-off becomes automatic unless the taxpayer indi-
cates an objection.
The Committee is reporting to the Senate legislation of historic
significance, in accord with those Jeffersonian principles which place
abiding confidence in the wisdom of the individual and in the indi-
vidual's fundamental role in the development of an enlightened
democracy.
We have witnessed the tragic perversion of these principles-in
terms of a misuse and corruption of power and a misguided depend-
ence on the influence of large political contributors.
This legislation is deeply concerned with the ending of such abuses.
It removes the temptation of seeking or of accepting the large com-
promising gift. It returns to our people, to our individual voters a
rightful share and a rightful responsibility in the choosing of their
candidates. And it can serve to establish that climate of public trust
in elected officials which this country SO earnestly desires.
CLAIBORNE PELL.
ADDITIONAL VIEWS OF MR. GRIFFIN
The astute political observer, David S. Broder, mixed a dash of
homely wisdom with a reporter's cynicism when he wrote: "The only
(89)
90
thing more dangerous to democracy than corrupt politicians may be
politicians hell-bent on reform."
In many minds, the idea of "public financing" has somehow become
synonymous with "campaign reform." I am concerned that the reality
may be very different.
Even though I have serious doubts about the public financing aspects
of this bill, I joined in voting to report it because I believe the Senate
as a whole should have an opportunity to debate and decide the issues
raised by Title I. Furthermore, except for Title I, the bill contains
many campaign financing reforms which are clearly meritorious.
For example, I strongly support such provisions as those in other
titles of the bill to create an independent Federal Election Commis-
sion, to place strict dollar limits on the amount an individual can con-
tribute to a candidate or to campaigns in any year, to limit the amount
a candidate can contribute to his own campaign, to restrict the size
of cash contributions; to impose ceilings on overall campaign expendi-
tures; and to require each candidate to use a central campaign com-
mittee and depository.
Such provisions truly represent campaign financing reforms, and
they should be enacted on their own merit.
Unfortunately, public understanding has not fully penetrated a
facade of attractive slogans that has surrounded the promise of public
financing for campaigns. As more and more light is focused on the ap-
proach of Title I in this bill, the more realization there will be that it
does not really represent "reform" at all. That will be particularly
true as the people learn that "public financing" means "taxpayer fi-
nancing;" and when they see that Title I would actually increase, not
decrease, the levels of campaign spending, particularly in races for
the House of Representatives.
It should be noted also that a number of needed, real reforms have
not been included in this bill. For example, I believe everyone-candi-
dates and voters alike-would welcome steps to shorten the duration of
campaigns.
ROBERT P. GRIFFIN.
93d Congress, 2d Session
House Report No. 93-1239
FEDERAL ELECTION CAMPAIGN ACT
AMENDMENTS OF 1974
REPORT
OF THE
COMMITTEE ON HOUSE ADMINISTRATION
TOGETHER WITH MINORITY VIEWS, SEPARATE
VIEWS, SUPPLEMENTAL VIEWS, AND ADDITIONAL
VIEWS
TO ACCOMPANY
H.R. 16090
TO IMPOSE OVERALL LIMITATIONS ON CAMPAIGN EX-
PENDITURES AND POLITICAL CONTRIBUTIONS; TO PRO-
VIDE THAT EACH CANDIDATE FOR FEDERAL OFFICE
SHALL DESIGNATE A PRINCIPAL CAMPAIGN COMMITTEE;
TO PROVIDE FOR A SINGLE REPORTING RESPONSIBILITY
WITH RESPECT TO RECEIPTS AND EXPENDITURES BY
CERTAIN POLITICAL COMMITTEES; TO CHANGE THE
TIMES FOR THE FILING OF REPORTS REGARDING CAM-
PAIGN EXPENDITURES AND POLITICAL CONTRIBUTIONS;
TO PROVIDE FOR PUBLIC FINANCING OF PRESIDENTIAL
NOMINATING CONVENTIONS AND PRESIDENTIAL PRIMARY
ELECTIONS; AND FOR OTHER PURPOSES
JULY 30, 1974.-Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
38-081 O
WASHINGTON : 1974
This lengthy publication was not digitized. Please contact the Gerald R. Ford
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obtain a copy of this item.