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1976/05/11 S3065 Federal Election Campaign Act Amendments of 1976 (3)
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1976/05/11 S3065 Federal Election Campaign Act Amendments of 1976 (3)
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The original documents are located in Box 44, folder "1976/05/11 S3065 Federal Election
Campaign Act Amendments of 1976 (3)" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 44 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
6 TORO
S. 3065
Ainety-fourth Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the nineteenth day of January,
one thousand nine hundred and seventy-six
An Act
To amend the Federal Election Campaign Act of 1971 to provide that members
of the Federal Election Commission shall be appointed by the President, by and
with the advice and consent of the Senate, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SHORT TITLE
SECTION 1. This Act may be cited as the "Federal Election Cam-
paign Act Amendments of 1976".
TITLE I-AMENDMENTS TO FEDERAL ELECTION
CAMPAIGN ACT OF 1971
FEDERAL ELECTION COMMISSION MEMBERSHIP
SEC. 101. (a) (1) The second sentence of section 309 (a) (1) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 437c(a) (1)), as
redesignated by section 105 (hereinafter in this Act referred to as the
"Act"), is amended to read as follows: "The Commission is composed
of the Secretary of the Senate and the Clerk of the House of Repre-
sentatives, ex officio and without the right to vote, and 6 members
appointed by the President of the United States, by and with the
advice and consent of the Senate.".
(2) The last sentence of section 309 (a) (1) of the Act (2 U.S.C.
437c(a) (1)), as redesignated by section 105, is amended to read as
follows: "No more than 3 members of the Commission appointed
under this paragraph may be affiliated with the same political party.".
(b) Section 309 (a) (2) of the Act (2 U.S.C. 437c (a) (2)), as redesig-
nated by section 105, is amended to read as follows:
(2) (A) Members of the Commission shall serve for terms of
6 years, except that of the members first appointed-
"(i) two of the members, not affiliated with the same political
party, shall be appointed for terms ending on April 30, 1977;
(ii) two of the members, not affiliated with the same political
party, shall be appointed for terms ending on April 30, 1979;
and
(iii) two of the members, not affiliated with the same political
party, shall be appointed for terms ending on April 30, 1981.
"(B) A member of the Commission may serve on the Commission
after the expiration of his term until his successor has taken office as
a member of the Commission.
"(C) An individual appointed to fill a vacancy occurring other than
by the expiration of a term of office shall be appointed only for the
unexpired term of the member he succeeds.
"(D) Any vacancy occurring in the membership of the Commission
shall be filled in the same manner as in the case of the original
appointment.".
(c) (1) Section 309 (a) (3) of the Act (2 U.S.C. 437c(a) (3)), as
redesignated by section 105, is amended by adding at the end thereof
S. 3065-2
the following new sentences: "Members of the Commission shall not
engage in any other business, vocation, or employment. Any individual
who is engaging in any other business, vocation, or employment at the
time such individual begins to serve as a member of the Commission
shall terminate or liquidate such activity no later than 1 year after
beginning to serve as such a member.".
(2) Section 309(b) of the Act (2 U.S.C. 437c as redesignated
by section 105, is amended to read as follows:
"(b) (1) The Commission shall administer, seek to obtain compli-
ance with, and formulate policy with respect to, this Act and chapter
95 and chapter 96 of the Internal Revenue Code of 1954. The Com-
mission shall have exclusive primary jurisdiction with respect to the
civil enforcement of such provisions.
"(2) Nothing in this Act shall be construed to limit, restrict, or
diminish any investigatory, informational, oversight, supervisory, or
disciplinary authority or function of the Congress or any committee
of the Congress with respect to elections for Federal office.".
(3) The first sentence of section 309 (c) of the Act (2 U.S.C.
437c(c)), as redesignated by section 105, is amended by inserting
immediately before the period at the end thereof the following:
", except that the affirmative vote of 4 members of the Commission
shall be required in order for the Commission to establish guidelines for
compliance with the provisions of this Act or with chapter 95 or
chapter 96 of the Internal Revenue Code of 1954, or for the Commis-
sion to take any action in accordance with paragraph (6), (7), (8),
or (10) of section 310(a)".
(d) The last sentence of section 309(f) (1) of the Act (2 U.S.C.
437c (f) (1)), as redesignated by section 105, is amended by inserting
immediately before the period the following: "without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service".
(e) (1) The President shall appoint members of the Federal Elec-
tion Commission under section 309 (a) of the Act (2 U.S.C. 437c(a)),
as redesignated by section 105 and as amended by this section, as soon
as practicable after the date of the enactment of this Act.
(2) The first appointments made by the President under section
309(a) of the Act (2 U.S.C. 437c(a) as redesignated by section 105
and as amended by this section, shall not be considered to be appoint-
ments to fill the unexpired terms of members serving on the Federal
Election Commission on the date of the enactment of this Act.
(3) Members serving on the Federal Election Commission on the
date of the enactment of this Act may continue to serve as such mem-
bers until new members are appointed and qualified under section
309 (a) of the Act (2 U.S.C. 437c(a)), as redesignated by section 105
and as amended by this section, except that until appointed and quali-
fied under this Act, members serving on such Commission on such date
of enactment may, beginning on March 23, 1976, exercise only such
powers and functions as may be consistent with the determinations of
the Supreme Court of the United States in Buckley et al. against
Valeo, Secretary of the United States Senate, et al. (numbered 75-436,
75-437) January 30, 1976.
(f) The provisions of section 309(a) (3) of the Act (2 U.S.C. 437c
(a) (3)), as redesignated by section 105, which prohibit any individual
from being appointed as a member of the Federal Election Commis-
sion who is, at the time of his appointment, an elected or appointed
officer or employee of the executive, legislative, or judicial branch of
the Federal Government, shall not apply in the case of any individual
S. 3065-3
serving as a member of such Commission on the date of the enactment
of this Act.
(g) (1) All personnel, liabilities, contracts, property, and records
determined by the Director of the Office of Management and Budget
to be employed, held, or used primarily in connection with the func-
tions of the Federal Election Commission under title III of the
Act as such title existed on January 1, 1976, or under any other pro-
vision of law, are transferred to such Commission as constituted under
the amendments made by this Act to the Federal Election Campaign
Act of 1971.
(2) (A) Except as provided in subparagraph (B), personnel
engaged in functions transferred under paragraph (1) shall be
transferred in accordance with applicable laws and regulations relat-
ing to the transfer of functions.
(B) The transfer of personnel pursuant to paragraph (1) shall be
without reduction in classification or compensation for 1 year after
such transfer.
(3) All laws relating to the functions transferred under this Act
shall, insofar as such laws are applicable and not amended by this
Act, remain in full force and effect. All orders, determinations, rules,
and opinions made, issued, or granted by the Federal Election Com-
mission before its reconstitution under the amendments made by this
Act which are in effect at the time of the transfer provided by para-
graph (1), and which are consistent with the amendments made by
this Act, shall continue in effect to the same extent as if such transfer
had not occurred. Any rule or regulation proposed by such Commission
before the date of the enactment of this Act shall be prescribed by
such Commission only if, after such date of enactment, the rule or
regulation is submitted to the Senate or the House of Representatives,
as the case may be, in accordance with the provisions of section 315 (c)
of the Act (as redesignated by section 105), and it is not disapproved
by the appropriate House of the Congress.
(4) The provisions of this Act shall not affect any proceeding pend-
ing before the Federal Election Commission on the date of the enact-
ment of this Act.
(5) No suit, action, or other proceeding commenced by or against
the Federal Election Commission or any officer or employee thereof
acting in his official capacity shall abate by reason of the transfer
made under paragraph (1). The court before which such suit, action,
or other proceeding is pending may, on motion or supplemental peti-
tion filed at any time within 12 months after the date of the enactment
of this Act, allow such suit, action, or other proceeding to be main-
tained against the Federal Election Commission if the party making
the motion or filing the petition shows a necessity for the survival of
the suit, action, or other proceeding to obtain a settlement of the
question involved.
(6) Any reference in any other Federal law to the Federal Election
Commission, or to any member or employee thereof, as such Commis-
sion existed under the Federal Election Campaign Act of 1971 before
its amendment by this Act shall be held and considered to refer to the
Federal Election Commission, or the members or employees thereof,
as such Commission exists under the Federal Election Campaign Act
of 1971 as amended by this Act.
S. 3065-4
CHANGES IN DEFINITIONS
SEC. 102. (a) Section 301 (a) (2) of the Act (2 U.S.C. 431(a) (2))
is amended by striking out "held to" and inserting in lieu thereof
"which has authority to".
(b) Section 301 (e) (2) of the Act (2 U.S.C. 431 (2)) is amended
by inserting "written" immediately before "contract" and by striking
out "expressed or implied,".
(c) Section 301 (e) (4) of the Act (2 U.S.C. 431 (e) (4)) is amended
by inserting after "purpose" the following: ", except that this para-
graph shall not apply in the case of legal or accounting services ren-
dered to or on behalf of the national committee of a political party
(unless the person paying for such services is a person other than the
regular employer of the individual rendering such services), other
than services attributable to activities which directly further the elec-
tion of a designated candidate or candidates to Federal office, nor shall
this paragraph apply in the case of legal or accounting services ren-
dered to or on behalf of a candidate or political committee solely for
the purpose of insuring compliance with the provisions of this Act or
chapter 95 or chapter 96 of the Internal Revenue Code of 1954 (unless
the person paying for such services is a person other than the regular
employer of the individual rendering such services), but amounts paid
or incurred for such legal or accounting services shall be reported in
accordance with the requirements of section 304 (b)
(d) Section 301 (e) (5) of the Act (2 U.S.C. 431 (e) (5)) is
amended—
(1) by striking out "or" at the end of clause (E), and
(2) by inserting after clause (F) the following new clauses:
(G) a loan of money by a national or State bank made in
accordance with the applicable banking laws and regulations
and in the ordinary course of business, but such loans—
(i) shall be reported in accordance with the require-
ments of section 304 (b) ; and
"(ii) shall be considered a loan by each endorser or
guarantor, in that proportion of the unpaid balance
thereof that each endorser or guarantor bears to the total
number of endorsers or guarantors: or
(H) a gift, subscription, loan, advance, or deposit of
money or anything of value to a national committee of a
political party or a State committee of a political party which
is specifically designated for the purpose of defraying any
cost incurred with respect to the construction or purchase of
any office facility which is not acquired for the purpose of
influencing the election of any candidate in any particular
election for Federal office, except that any such gift, sub-
scription, loan, advance, or deposit of money or anything of
value, and any such cost, shall be reported in accordance with
section 304(b) ; or
"(I) any honorarium (within the meaning of section
328)
(e) Section 301 (e) (5) of the Act (2 U.S.C. 431 (e) (5)), as amended
by subsection (d), is amended by striking out "individual" where it
appears after clause (I) and inserting in lieu thereof "person".
(f) Section 301 (f) (4) of the Act (2 U.S.C. 431 (f) (4)) is
amended-
(1) by inserting before the semicolon in clause (C) the follow-
ing: ", except that the costs incurred by a membership organiza-
tion, including a labor organization, or by a corporation, directly
S. 3065-5
attributable to a communication expressly advocating the election
or defeat of a clearly identified candidate (other than a communi-
cation primarily devoted to subjects other than the express advo-
cacy of the election or defeat of a clearly identified candidate)
shall, if those costs exceed $2,000 per election, be reported to the
Commission";
(2) by striking out "or" at the end of clause (F) and at the end
of clause (G) ; and
(3) by inserting immediately after clause (H) the following
new clauses:
(I) any costs incurred by a candidate in connection with
the solicitation of contributions by such candidate, except that
this clause shall not apply with respect to costs incurred by a
candidate in excess of an amount equal to 20 percent of the
expenditure limitation applicable to such candidate under
section 320(b), but all such costs shall be reported in accord-
ance with section 304 (b) ;
(J) the payment, by any person other than a candidate or
political committee, of compensation for legal or accounting
services rendered to or on behalf of the national committee of
a political party (unless the person paying for such services
is a person other than the regular employer of the individual
rendering such services), other than services attributable to
activities which directly further the election of a designated
candidate or candidates to Federal office, or the payment for
legal or accounting services rendered to or on behalf of a
candidate or political committee solely for the purpose of
insuring compliance with the provisions of this Act or of
chapter 95 or chapter 96 of the Internal Revenue Code of 1954
(unless the person paying for such services is a person other
than the regular employer of the individual rendering such
services), but amounts paid or incurred for such legal or
accounting services shall be reported under section 304 (b) ; or
"(K) a loan of money by a national or State bank made in
accordance with the applicable banking laws and regulations
and in the ordinary course of business, but such loan shall be
reported in accordance with section (b) ;".
(g) Section 301 of the Act (2 U.S.C. 431) is amended-
(1) by striking out "and" at the end of paragraph (m) ;
(2) by striking out the period at the end of paragraph (n) and
inserting in lieu thereof a semicolon; and
(3) by adding at the end thereof the following new paragraphs:
(o) 'Act' means the Federal Election Campaign Act of 1971
as amended by the Federal Election Campaign Act Amendments
of 1974 and the Federal Election Campaign Act Amendments of
1976;
"(p) 'independent expenditure' means an expenditure by a per-
son expressly advocating the election or defeat of a clearly identi-
fied candidate which is made without cooperation or consultation
with any candidate or any authorized committee or agent of such
candidate and which is not made in concert with, or at the request
or suggestion of, any candidate or any authorized committee or
agent of such candidate; and
"(q) 'clearly identified' means that (1) the name of the candi-
date appears; (2) a photograph or drawing of the candidate
appears; or (3) the identity of the candidate is apparent by
unambiguous reference.".
S. 3065-6
ORGANIZATION OF POLITICAL COMMITTEES
SEC. 103. (a) Section 302(b) of the Act (2 U.S.C. 432(b)) is
amended by striking out "$10" and inserting in lieu thereof "$50".
(b) Section (2) of the Act (2 U.S.C. 432 (c) (2)) is amended
by striking out "$10" and inserting in lieu thereof "$50".
(c) Section 302 of the Act (2 U.S.C. 432) is amended by striking
out subsection (e) and by redesignating subsection (f) as subsection
(e).
(d) Section 302 (e) (1) of the Act, as redesignated by subsection
(c), is amended by adding at the end thereof the following new sen-
tence: "Any occasional, isolated, or incidental support of a candidate
shall not be construed as support of such candidate for purposes of the
preceding sentence.".
REPORTS BY POLITICAL COMMITTEES AND CANDIDATES
SEC. 104. (a) Section 304 (a) (1) of the Act (2 U.S.C. 434 (a) (1)) is
amended by adding at the end of subparagraph (C) the following new
sentence: "In any year in which a candidate is not on the ballot for elec-
tion to Federal office, such candidate and his authorized committees
shall only be required to file such reports not later than the tenth day
following the close of any calendar quarter in which the candidate and
his authorized committees received contributions or made expenditures,
or both, the total amount of which, taken together, exceed $5,000, and
such reports shall be complete as of the close of such calendar quarter;
except that any such report required to be filed after December 31
of any calendar year with respect to which a report is required to
be filed under subparagraph (B) shall be filed as provided in such
subparagraph.".
(b) Section 304(a) (2) of the Act (2 U.S.C. 434 (2)) is amended
to read as follows:
(2) Each treasurer of a political committee authorized by a candi-
date to raise contributions or make expenditures on his behalf, other
than the candidate's principal campaign committee, shall file the
reports required under this section with the candidate's principal
campaign committee.".
(c) Section 304 (b) of the Act (2 U.S.C. 434(b)) is amended—
(1) by striking out "and" at the end of paragraph (12) ;
(2) by redesignating paragraph (13) as paragraph (14)
(3) by inserting immediately after paragraph (12) the follow-
ing new paragraph:
? (13) in the case of an independent expenditure in excess of
$100 by a political committee, other than an authorized committee
of a candidate, expressly advocating the election or defeat of a
clearly identified candidate, through a separate schedule (A) any
information required by paragraph (9) stated in a manner which
indicates whether the independent expenditure involved is in sup-
port of, or in opposition to, a candidate; and (B) under penalty
of perjury, a certification whether such independent expenditure
is made in cooperation, consultation, or concert with, or at the
request or suggestion of, any candidate or any authorized com-
mittee or agent of such candidate; and"; and
(4) by adding at the end thereof the following new sentence:
"When committee treasurers and candidates show that best efforts
have been used to obtain and submit the information required by this
subsection, they shall be deemed to be in compliance with this
subsection.".
S. 3065-7
(d) Section 304(e) of the Act (2 U.S.C. is amended to read
as follows:
"(e) (1) Every person (other than a political committee or candi-
date) who makes contributions or independent expenditures expressly
advocating the election or defeat of a clearly identified candidate,
other than by contribution to a political committee or candidate, in an
aggregate amount in excess of $100 during a calendar year shall file
with the Commission, on a form prepared by the Commission, a state-
ment containing the information required of a person who makes a
contribution in excess of $100 to a candidate or political committee
and the information required of a candidate or political committee
receiving such a contribution.
"(2) Statements required by this subsection shall be filed on the
dates on which reports by political committees are filed. Such state-
ments shall include (A) the information required by subsection
(b) (9), stated in a manner indicating whether the contribution or
independent expenditure is in support of, or opposition to, the candi-
date; and (B) under penalty of perjury, a certification whether such
independent expenditure is made in cooperation, consultation, or con-
cert with, or at the request or suggestion of, any candidate or any
authorized committee or agent of such candidate. Any independent
expenditure, including those described in subsection (b) (13), of
$1,000 or more made after the fifteenth day, but more than 24 hours,
before any election shall be reported within 24 hours of such independ-
ent expenditure.
(3) The Commission shall be responsible for expeditiously prepar-
ing indices which set forth, on a candidate-by-candidate basis, all
expenditures separately, including those reported under subsection
(b) (13), made with respect to each candidate, as reported under this
subsection, and for periodically issuing such indices on a timely pre-
election basis.".
REPORTS BY CERTAIN PERSONS
SEC. 105. Title III of the Act (2 U.S.C. 431 et seq.) is amended by
striking out section 308 thereof (2 U.S.C. 437a) and by redesignating
section 309 through section 321 as section 308 through section 320,
respectively.
CAMPAIGN DEPOSITORIES
SEC. 106. The second sentence of section (a) (1) of the Act (2
U.S.C. 437b(a) (1)), as redesignated by section 105, is amended by
striking out "a checking account" and inserting in lieu thereof the
following: "a single checking account and such other accounts as the
committee determines to maintain at its discretion".
POWERS OF COMMISSION
SEC. 107. (a) Section 310(a) of the Act (2 U.S.C. 437d(a)), as
redesignated by section 105, is amended-
(1) in paragraph (8) thereof, by inserting "develop such pre-
scribed forms and to" immediately before "make", and by insert-
ing immediately after "Act" the following: "and chapter 95 and
chapter 96 of the Internal Revenue Code of 1954";
(2) in paragraph (9) thereof, by striking out "and sections
608" and all that follows through "States Code;" and inserting
in lieu thereof "and chapter 95 and chapter 96 of the Internal
Revenue Code of 1954; and"; and
(3) by striking out paragraph (10) and redesignating para-
graph (11) as paragraph (10).
S. 3065-8
(b) (1) Section 310(a) (6) of the Act (2 U.S.C. 437d(a) (6)), as
redesignated by section 105, is amended to read as follows:
(6) to initiate (through civil actions for injunctive, declara-
tory, or other appropriate relief), defend (in the case of any civil
action brought under section 313(a) (9)), or appeal any civil
action in the name of the Commission for the purpose of enforc-
ing the provisions of this Act and chapter 95 and chapter 96 of
the Internal Revenue Code of 1954, through its general counsel;".
(2) Section 310 of the Act (2 U.S.C. 437d), as redesignated by sec-
tion 105, is amended by adding at the end thereof the following new
subsection:
(e) Except as provided in section 313 (a) (9), the power of the
Commission to initiate civil actions under subsection (a) (6) shall be
the exclusive civil remedy for the enforcement of the provisions of
this Act.".
ADVISORY OPINIONS
SEC. 108. (a) Section 312(a) of the Act and section 312(b) of the
Act (2 U.S.C. 437f(a), 437f(b)), as redesignated by section 105, are
amended to read as follows:
"SEC. 312. (a) The Commission shall render an advisory opinion, in
writing, within a reasonable time in response to a written request by
any individual holding Federal office, any candidate for Federal office,
any political committee, or the national committee of any political
party concerning the application of a general rule of law stated in
the Act or chapter 95 or chapter 96 of the Internal Revenue Code of
1954, or a general rule of law prescribed as a rule or regulation by the
Commission, to a specific factual situation. Any such general rule of
law not stated in the Act or in chapter 95 or chapter 96 of the Internal
Revenue Code of 1954 may be initially proposed by the Commission
only as a rule or regulation pursuant to the procedures established by
section 315 (c). No opinion of an advisory nature may be issued by the
Commission or any of its employees except in accordance with the
provisions of this section.
"(b) (1) Notwithstanding any other provision of law, any person
who relies upon any provision or finding of an advisory opinion in
accordance with the provisions of paragraph (2) and who acts in good
faith in accordance with the provisions and findings of such advisory
opinion shall not, as a result of any such act, be subject to any sanc-
tion provided by this Act or by chapter 95 or chapter 96 of the Internal
Revenue Code of 1954.
"(2) Any advisory opinion rendered by the Commission under sub-
section (a) may be relied upon by (A) any person involved in the
specific transaction or activity with respect to which such advisory
opinion is rendered; and (B) any person involved in any specific
transaction or activity which is indistinguishable in all its material
aspects from the transaction or activity with respect to which such
advisory opinion is rendered.".
(b) The Commission shall, no later than 90 days after the date of
the enactment of this Act, conform the advisory opinions issued before
such date of enactment to the requirements established by section 312
(a) of the Act, as amended by subsection (a) of this section. The pro-
visions of section 312(b) of the Act, as amended by subsection (a) of
this section, shall apply with respect to all advisory opinions issued
before the date of the enactment of this Act as conformed to meet the
requirements of section 312(a) of the Act, as amended by subsection
(a) of this section.
S. 3065-9
ENFORCEMENT
SEC. 109. Section 313 of the Act (2 U.S.C. 437g), as redesignated
by section 105, is amended to read as follows:
"ENFORCEMENT
"SEC. 313. (a) (1) Any person who believes a violation of this Act
or of chapter 95 or chapter 96 of the Internal Revenue Code of 1954
has occurred may file a complaint with the Commission. Such com-
plaint shall be in writing, shall be signed and sworn to by the person
filing such complaint, and shall be notarized. Any person filing such a
complaint shall be subject to the provisions of section 1001 of title 18,
United States Code. The Commission may not conduct any investiga-
tion under this section, or take any other action under this section,
solely on the basis of a complaint of a person whose identity is not
disclosed to the Commission.
"(2) The Commission, upon receiving a complaint under paragraph
(1), and if it has reason to believe that any person has committed a
violation of this Act or of chapter 95 or chapter 96 of the Internal
Revenue Code of 1954, or, if the Commission, on the basis of infor-
mation ascertained in the normal course of carrying out its supervisory
responsibilities, has reason to believe that such a violation has
occurred, shall notify the person involved of such alleged violation and
shall make an investigation of such alleged violation in accordance
with the provisions of this section.
"(3) (A) Any investigation under paragraph (2) shall be conducted
expeditiously and shall include an investigation, conducted in accord-
ance with the provisions of this section, of reports and statements filed
by any complainant under this title, if such complainant is a
candidate.
((B) Any notification or investigation made under paragraph (2)
shall not be made public by the Commission or by any person without
the written consent of the person receiving such notification or the
person with respect to whom such investigation is made.
"(4) The Commission shall afford any person who receives notice
of an alleged violation under paragraph (2) a reasonable opportunity
to demonstrate that no action should be taken against such person
by the Commission under this Act.
(5) (A) If the Commission determines that there is reasonable
cause to believe that any person has committed or is about to commit a
violation of this Act or of chapter 95 or chapter 96 of the Internal
Revenue Code of 1954, the Commission shall make every endeavor for
a period of not less than 30 days to correct or prevent such violation
by informal methods of conference, conciliation, and persuasion, and
to enter into a conciliation agreement with the person involved, except
that, if the Commission has reasonable cause to believe that-
"(i) any person has failed to file a report required to be filed
under section 304 (a) (1) (C) for the calendar quarter occurring
immediately before the date of a general election;
(ii) any person has failed to file a report required to be filed
no later than 10 days before an election: or
"(iii) on the basis of a complaint filed less than 45 days but
more than 10 days before an election, any person has committed a
knowing and willful violation of this Act or of chapter 95 or
chapter 96 of the Internal Revenue Code of 1954;
the Commission shall make every effort, for a period of not less than
one-half the number of days between the date upon which the Com-
mission determines there is reasonable cause to believe such a violation
S. 3065-10
has occurred and the date of the election involved, to correct or pre-
vent such violation by informal methods of conference, conciliation,
and persuasion, and to enter into a conciliation agreement with the
person involved. A conciliation agreement, unless violated, shall con-
stitute a complete bar to any further action by the Commission, includ-
ing the bringing of a civil proceeding under subparagraph (B).
" (B) If the Commission is unable to correct or prevent any such
violation by such informal methods, the Commission may, if the Com-
mission determines there is probable cause to believe that a violation
has occurred or is about to occur, institute a civil action for relief,
including a permanent or temporary injunction, restraining order,
or any other appropriate order, including a civil penalty which does
not exceed the greater of $5,000 or an amount equal to the amount of
any contribution or expenditure involved in such violation, in the dis-
trict court of the United States for the district in which the person
against whom such action is brought is found, resides, or transacts
business.
"(C) In any civil action instituted by the Commission under sub-
paragraph (B), the court may grant a permanent or temporary
injunction, restraining order, or other order, including a civil penalty
which does not exceed the greater of $5,000 or an amount equal to the
amount of any contribution or expenditure involved in such violation,
upon a proper showing that the person involved has engaged or is
about to engage in a violation of this Act or of chapter 95 or chapter
96 of the Internal Revenue Code of 1954.
"(D) If the Commission determines that there is probable cause
to believe that a knowing and willful violation subject to and as
defined in section 329, or a knowing and willful violation of a pro-
vision of chapter 95 or chapter 96 of the Internal Revenue Code of
1954 has occurred or is about to occur, it may refer such apparent
violation to the Attorney General of the United States without regard
to any limitations set forth in subparagraph (A).
"(6) (A) If the Commission believes that there is clear and con-
vincing proof that a knowing and willful violation of this Act or of
chapter 95 or chapter 96 of the Internal Revenue Code of 1954, has
been committed, a conciliation agreement entered into by the Commis-
sion under paragraph (5) (A) may include a requirement that the
person involved in such conciliation agreement shall pay a civil pen-
alty which shall not exceed the greater of (i) $10,000; or (ii) an
amount equal to 200 percent of the amount of any contribution or
expenditure involved in such violation.
(B) If the Commission believes that a violation of this Act or of
chapter 95 or chapter 96 of the Internal Revenue Code of 1954 has
been committed, a conciliation agreement entered into by the Commis-
sion under paragraph (5) (A) may include a requirement that the
person involved in such conciliation agreement shall pay a civil pen-
alty which does not exceed the greater of (i) $5,000 : or (ii) an amount
equal to the amount of the contribution or expenditure involved in
such violation.
(C) The Commission shall make available to the public (i) the
results of any conciliation attempt, including any conciliation agree-
ment entered into by the Commission and (ii) any determination by
the Commission that no violation of this Act or of chapter 95 or chap-
ter 96 of the Internal Revenue Code of 1954 has occurred.
"(7) In any civil action for relief instituted by the Commission
under paragraph (5), if the court determines that the Commission
has established through clear and convincing proof that the person
involved in such civil action has committed a knowing and willful
S. 3065-11
violation of this Act or of chapter 95 or chapter 96 of the Internal
Revenue Code of 1954, the court may impose a civil penalty of not
more than the greater of (A) $10,000; or (B) an amount equal to
200 percent of the contribution or expenditure involved in such viola-
tion. In any case in which such person has entered into a conciliation
agreement with the Commission under paragraph (5) (A), the Com-
mission may institute a civil action for relief under paragraph (5)
if it believes that such person has violated any provision of such con-
ciliation agreement. In order for the Commission to obtain relief in
any such civil action, it shall be sufficient for the Commission to estab-
lish that such person has violated, in whole or in part, any requirement
of such conciliation agreement.
"(8) In any action brought under paragraph (5) or paragraph (7),
subpenas for witnesses who are required to attend a United States dis-
trict court may run into any other district.
"(9) (A) Any party aggrieved by an order of the Commission dis-
missing a complaint filed by such party under paragraph (1), or by
a failure on the part of the Commission to act on such complaint in
accordance with the provisions of this section within 90 days after the
filing of such complaint, may file a petition with the United States
District Court for the District of Columbia.
"(B) The filing of any petition under subparagraph (A) shall
be made-
"(i) in the case of the dismissal of a complaint by the Commis-
sion, no later than 60 days after such dismissal; or
"(ii) in the case of a failure on the part of the Commission
to act on such complaint, no later than 60 days after the 90-day
period specified in subparagraph (A).
"(C) In any proceeding under this paragraph the court may
declare that the dismissal of the complaint or the action, or the failure
to act, is contrary to law and may direct the Commission to proceed
in conformity with such declaration within 30 days, failing which the
complainant may bring in his own name a civil action to remedy the
violation involved in the original complaint.
"(10) The judgment of the district court may be appealed to the
court of appeals and the judgment of the court of appeals affirming or
setting aside, in whole or in part, any such order of the district court
shall be final, subject to review by the Supreme Court of the United
States upon certiorari or certification as provided in section 1254 of
title 28, United States Code.
"(11) Any action brought under this subsection shall be advanced
on the docket of the court in which filed, and put ahead of all other
actions (other than other actions brought under this subsection or
under section 314).
"(12) If the Commission determines after an investigation that any
person has violated an order of the court entered in a proceeding
brought under paragraph (5) it may petition the court for an order
to adjudicate such person in civil contempt, except that if it believes
the violation to be knowing and willful it may petition the court for
an order to adjudicate such person in criminal contempt.
"(b) In any case in which the Commission refers an apparent viola-
tion to the Attorney General, the Attorney General shall respond by
report to the Commission with respect to any action taken by the
Attorney General regarding such apparent violation. Each report
shall be transmitted no later than 60 days after the date the Commis-
sion refers any apparent violation, and at the close of every 30-day
period thereafter until there is final disposition of such apparent
S. 3065-12
violation. The Commission may from time to time prepare and publish
reports on the status of such referrals.
" (c) Any member of the Commission, any employee of the Com-
mission, or any other person who violates the provisions of subsection
(a) (3) (B) shall be fined not more than $2,000. Any such member,
employee, or other person who knowingly and willfully violates the
provisions of subsection (a) (3) (B) shall be fined not more than
$5,000.".
DUTIES OF COMMISSION
SEC. 110. (a) (1) Section 315(a) (6) of the Act (2 U.S.C. 438(a) (6)),
as redesignated by section 105, is amended by inserting immediately
before the semicolon at the end thereof the following ", and to compile
and maintain a separate cumulative index of reports and statements
filed with it by political committees supporting more than one candi-
date, which shall include a listing of the date of the registration of
any such political committee and the date upon which any such politi-
cal committee qualifies to make expenditures under section 320(a) (2),
and which shall be revised on the same basis and at the same time as
the other cumulative indices required under this paragraph".
(2) Section 315(a) (8) of the Act (2 U.S.C. 438(a) (8)), as
redesignated by section 105, is amended by inserting immediately
before the semicolon at the end thereof the following ", and to give
priority to auditing and field investigating of the verification for, and
the receipt and use of, any payments received by a candidate under
chapter 95 or chapter 96 of the Internal Revenue Code of 1954".
(b) Section 315(c) of the Act (2 U.S.C. 438(c)), as redesignated
by section 105, is amended—
(1) by inserting immediately after the second sentence of para-
graph (2) the following new sentences: "Whenever a committee
of the House of Representatives reports any resolution relating to
any such rule or regulation, it is at any time thereafter in order
(even though a previous motion to the same effect has been dis-
agreed to) to move to proceed to the consideration of the resolu-
tion. The motion is highly privileged and is not debatable. An
amendment to the motion is not in order, and it is not in order to
move to reconsider the vote by which the motion is agreed to or
disagreed to."; and
(2) by adding the following new paragraph at the end thereof
'(5) For purposes of this subsection, the term 'rule or regulation'
means a provision or series of interrelated provisions stating a single
separable rule of law."
ADDITIONAL ENFORCEMENT AUTHORITY
SEC. 111. Section 407 of the Act (2 U.S.C. 456) is repealed.
CONTRIBUTION AND EXPENDITURE LIMITATIONS; OTHER LIMITATIONS
SEC. 112. Title III of the Act (2 U.S.C. 431-441) is amended—
(1) by striking out section 320 (2 U.S.C. 441), as redesignated
by section 105; and
(2) by inserting immediately after section 319 (2 U.S.C. 439c),
as redesignated by section 105, the following new sections:
S. 3065-13
"LIMITATIONS ON CONTRIBUTIONS AND EXPENDITURES
"SEC. 320. (a) (1) No person shall make contributions—
"(A) to any candidate and his authorized political committees
with respect to any election for Federal office which, in the aggre-
gate, exceed $1,000;
"(B) to the political committees established and maintained
by a national political party, which are not the authorized politi-
cal committees of any candidate, in any calendar year which, in
the aggregate, exceed $20,000; or
" (C) to any other political committee in any calendar year
which, in the aggregate, exceed $5,000.
(2) No multicandidate political committee shall make contribu-
tions—
'(A) to any candidate and his authorized political committees
with respect to any election for Federal office which, in the aggre-
gate, exceed $5,000;
((B) to the political committees established and maintained
by a national political party, which are not the authorized politi-
cal committees of any candidate, in any calendar year, which, in
the aggregate, exceed $15,000; or
" (C) to any other political committee in any calendar year
which, in the aggregate, exceed $5,000.
"(3) No individual shall make contributions aggregating more
than $25,000 in any calendar year. For purposes of this paragraph,
any contribution made to a candidate in a year other than the calen-
dar year in which the election is held with respect to which such
contribution is made, is considered to be made during the calendar
year in which such election is held.
"(4) The limitations on contributions contained in paragraphs (1)
and (2) do not apply to transfers between and among political com-
mittees which are national, State, district, or local committees (includ-
ing any subordinate committee thereof) of the same political party.
For purposes of paragraph (2), the term 'multicandidate political
committee' means a political committee which has been registered
under section 303 for 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.
"(5) For purposes of the limitations provided by paragraph (1)
and paragraph (2), all contributions made by political committees
established or financed or maintained or controlled by any corporation,
labor organization, or any other person, including any parent, sub-
sidiary, branch, division, department, or local unit of such corporation,
labor organization, or any other person, or by any group of such
persons, shall be considered to have been made by a single political
committee, except that (A) nothing in this sentence shall limit trans-
fers between political committees of funds raised through joint fund
raising efforts; (B) for purposes of the limitations provided by
paragraph (1) and paragraph (2) all contributions made by a single
political committee established or financed or maintained or controlled
by a national committee of a political party and by a single political
committee established or financed or maintained or controlled by the
State committee of a political party shall not be considered to have
been made by a single political committee; and (C) nothing in this
section shall limit the transfer of funds between the principal cam-
S. 3065-14
paign committee of a candidate seeking nomination or election to a
Federal office and the principal campaign committee of that candidate
for nomination or election to another Federal office if (i) such transfer
is not made when the candidate is actively seeking nomination or
election to both such offices; (ii) the limitations contained in this Act
on contributions by persons are not exceeded by such transfer;
and (iii) the candidate has not elected to receive any funds under
chapter 95 or chapter 96 of the Internal Revenue Code of 1954. In any
case in which a corporation and any of its subsidiaries, branches,
divisions, departments, or local units, or a labor organization and any
of its subsidiaries, branches, divisions, departments, or local units
establish or finance or maintain or control more than one separate
segregated fund, all such separate segregated funds shall be treated
as a single separate segregated fund for purposes of the limitations
provided by paragraph (1) and paragraph (2).
(6) The limitations on contributions to a candidate 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 gen-
eral election for such office) shall be considered to be one election.
(7) For purposes of this subsection-
(A) contributions to a named candidate made to any political
committee authorized by such candidate to accept contributions
on his behalf shall be considered to be contributions made to such
candidate;
(B) (i) expenditures made by any person in cooperation, con-
sultation, or concert, with, or at the request or suggestion of, a
candidate, his authorized political committees, or their agents,
shall be considered to be a contribution to such candidate;
"(ii) the financing by any person of the dissemination, distribu-
tion, or republication, in whole or in part, of any broadcast or any
written, graphic, or other form of campaign materials prepared
by the candidate, his campaign committees, or their authorized
agents shall be considered to be an expenditure for purposes of
this paragraph; and
"(C) 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.
" (8) For purposes of the limitations imposed by this section, all
contributions made by a person, either directly or indirectly, on behalf
of a particular candidate, including contributions which are in any
way earmarked or otherwise directed through an intermediary or
conduit to such candidate, shall be treated as contributions from
such person to such candidate. The intermediary or conduit shall
report the original source and the intended recipient of such contribu-
tion to the Commission and to the intended recipient.
(b) (1) No candidate for the office of President of the United
States who is eligible under section 9003 of the Internal Revenue Code
of 1954 (relating to condition for eligibility for payments) or under
section 9033 of the Internal Revenue Code of 1954 (relating to eligi-
bility for payments) to receive payments from the Secretary of the
Treasury may make expenditures in excess of-
(A) $10,000,000, in the case of a campaign for nomination for
election to such office, except the aggregate of expenditures under
this subparagraph in any one State shall not exceed the greater
S. 3065-15
of 16 cents multiplied by the voting age population of the State
(as certified under subsection (e)), or $200,000; or
'(B) $20,000,000 in the case of a campaign for election to such
office.
"(2) For purposes of this subsection-
"(A) expenditures made by or on behalf 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 expendi-
tures made by or on behalf of the candidate of such party for
election to the office of President of the United States; and
"(B) an expenditure is made on behalf of a candidate, includ-
ing a vice presidential candidate, if it is made by-
"(i) an authorized committee or any other agent of the
candidate for purposes of making any expenditure; or
"(ii) any person authorized or requested by the candidate,
an authorized committee of the candidate, or an agent of the
candidate, to make the expenditure.
(c) (1) At the beginning of each calendar year (commencing in
1976), as there become available necessary data from the Bureau of
Labor Statistics of the Department of Labor, the Secretary of Labor
shall certify to the Commission and publish in the Federal Register
the percent difference between the price index for the 12 months
preceding the beginning of such calendar year and the price index for
the base period. Each limitation established by subsection (b) and
subsection (d) shall be increased by such percent difference. Each
amount SO increased shall be the amount in effect for such calendar
year.
(2) For purposes of paragraph (1)--
"(A) the term 'price index' means the average over a calendar
year of the Consumer Price Index (all items-United States city
average) published monthly by the Bureau of Labor Statistics;
and
"(B) the term 'base period' means the calendar year 1974.
"(d) (1) Notwithstanding any other provision of law with respect
to limitations on expenditures or limitations on contributions, the
national committee of a political party and a State committee of a
political party, including any subordinate committee of a State com-
mittee, may make expenditures in connection with the general election
campaign of candidates for Federal office, subject to the limitations
contained in paragraphs (2) and (3) of this subsection.
"(2) The national committee of a political party may not make any
expenditure in connection with the general election campaign of any
candidate for President of the United States who is affiliated with such
party which exceeds an amount equal to 2 cents multiplied by the
voting age population of the United States (as certified under sub-
section (e)). Any expenditure under this paragraph shall be in addi-
tion to any expenditure by a national committee of a political party
serving as the principal campaign committee of a candidate for the
office of President of the United States.
"(3) The national committee of a political party, or a State com-
mittee of a political party, including any subordinate committee of a
State committee, may not make any expenditure in connection with the
general election campaign of a candidate for Federal office in a State
who is affiliated with such party which exceeds-
'(A) in the case of a candidate for election to the office of
Senator, or of Representative from a State which is entitled to
only one Representative, the greater of-
S. 3065-16
"(i) 2 cents multiplied by the voting age population of the
State (as certified under subsection (e)) ; or
"(ii) $20,000; and
((B) in the case of a candidate for election to the office of Rep-
resentative, Delegate, or Resident Commissioner in any other
State, $10,000.
"(e) During the first week of January 1975, and every subsequent
year, the Secretary of Commerce shall certify to the Commission and
publish in the Federal Register an estimate of the voting age popula-
tion of the United States, of each State, and of each congressional
district as of the first day of July next preceding the date of certifica-
tion. The term 'voting age population' means resident population,
18 years of age or older.
(f) No candidate or political committee shall knowingly accept
any contribution or make any expenditure in violation of the pro-
visions of this section. No officer or employee of a political committee
shall knowingly accept a contribution made for the benefit or use of a
candidate, or knowingly make any expenditure on behalf of a candi-
date, in violation of any limitation imposed on contributions and
expenditures under this section.
(g) The Commission shall prescribe rules under which any expend-
iture by a candidate for presidential nominations for use in 2 or
more States shall be attributed to such candidate's expenditure limita-
tion in each such State, based on the voting age population in such
State which can reasonably be expected to be influenced by such
expenditure.
(h) Notwithstanding any other provision of this Act, amounts
totaling not more than $17,500 may be contributed to a candidate for
nomination for election, or for election, to the United States Senate
during the year in which an election is held in which he is such a can-
didate, by the Republican or Democratic Senatorial Campaign
Committee, or the national committee of a political party, or any
combination of such committees.
"CONTRIBUTIONS OR EXPENDITURES BY NATIONAL BANKS, CORPORATIONS,
OR LABOR ORGANIZATIONS
"SEC. 321. (a) It is unlawful for any national bank, or any corpo-
ration organized by authority of any law of Congress, to make a con-
tribution or expenditure in connection with any election to any
political office, or in connection with any primary election or political
convention or caucus held to select candidates for any political office,
or for any corporation whatever, or any labor organization, to make a
contribution or expenditure in connection with any election at which
presidential and vice presidential electors or a Senator or Representa-
tive in, or a Delegate or Resident Commissioner to, Congress are to
be voted for, or in connection with any primary election or political
convention or caucus held to select candidates for any of the foregoing
offices, or for any candidate, political committee, or other person
knowingly to accept or receive any contribution prohibited by this
section, or any officer or any director of any corporation or any
national bank or any officer of any labor organization to consent to
any contribution or expenditure by the corporation, national bank, or
labor organization, as the case may be, prohibited by this section.
"(b) (1) For the purposes of this section the term 'labor organiza-
tion' means any organization of any kind, or any agency or employee
representation committee or plan, in which employees participate and
S. 3065-17
which exists for the purpose, in whole or in part, of dealing with
employers concerning grievances, labor disputes, wages, rates of
pay, hours of employment, or conditions of work.
(2) For purposes of this section and section 12(h) of the Public
Utility Holding Company Act (15 U.S.C. 791(h)), the term 'contribu-
tion or expenditure' shall include any direct or indirect payment, dis-
tribution, loan, advance, deposit, or gift of money, or any services,
or anything of value (except a loan of money by a national or State
bank made in accordance with the applicable banking laws and regu-
lations and in the ordinary course of business) to any candidate, cam-
paign committee, or political party or organization, in connection with
any election to any of the offices referred to in this section, but shall
not include (A) communications by a corporation to its stockholders
and executive or administrative personnel and their families or by
a labor organization to its members and their families on any sub-
ject; (B) nonpartisan registration and get-out-the-vote campaigns
by a corporation aimed at its stockholders and executive or adminis-
trative personnel and their families, or by a labor organization aimed
at its members and their families; and (C) the establishment, admin-
istration, and solicitation of contributions to a separate segregated
fund to be utilized for political purposes by a corporation, labor
organization, membership organization, cooperative, or corporation
without capital stock.
(3) It shall be unlawful-
"(A) for such a fund to make a contribution or expenditure
by utilizing money or anything of value secured by physical
force, job discrimination, financial reprisals, or the threat of
force, job discrimination, or financial reprisal; or by dues, fees,
or other moneys required as a condition of membership in a
labor organization or as a condition of employment, or by
moneys obtained in any commercial transaction;
"(B) for any person soliciting an employee for a contribu-
tion to such a fund to fail to inform such employee of the politi-
cal purposes of such fund at the time of such solicitation; and
" (C) for any person soliciting an employee for a contribu-
tion to such a fund to fail to inform such employee, at the time
of such solicitation, of his right to refuse to SO contribute with-
out any reprisal.
(4) (A) Except as provided in subparagraphs (B), (C), and (D),
it shall be unlawful-
"(i) for a corporation, or a separate segregated fund estab-
lished by a corporation, to solicit contributions to such a fund
from any person other than its stockholders and their families
and its executive or administrative personnel and their families,
and
"(ii) for a labor organization, or a separate segregated fund
established by a labor organization, to solicit contributions to
such a fund from any person other than its members and their
families.
" (B) it shall not be unlawful under this section for a corporation,
a labor organization, or a separate segregated fund established by such
corporation or such labor organization, to make 2 written solicita-
tions for contributions during the calendar year from any stockholder,
executive or administrative personnel, or employee of a corporation
or the families of such persons. A solicitation under this subparagraph
may be made only by mail addressed to stockholders, executive or
administrative personnel, or employees at their residence and shall be
S. 3065-18
SO designed that the corporation, labor organization, or separate segre-
gated fund conducting such solicitation cannot determine who makes
a contribution of $50 or less as a result of such solicitation and who
does not make such a contribution.
'(C) This paragraph shall not prevent a membership organization,
cooperative, or corporation without capital stock, or a separate segre-
gated fund established by a membership organization, cooperative, or
corporation without capital stock, from soliciting contributions to such
a fund from members of such organization, cooperative, or corpora-
tion without capital stock.
'(D) This paragraph shall not prevent a trade association or a
separate segregated fund established by a trade association from
soliciting contributions from the stockholders and executive or admin-
istrative personnel of the member corporations of such trade associa-
tion and the families of such stockholders or personnel to the extent
that such solicitation of such stockholders and personnel, and their
families, has been separately and specifically approved by the member
corporation involved, and such member corporation does not approve
any such solicitation by more than one such trade association in any
calendar year.
(5) Notwithstanding any other law, any method of soliciting
voluntary contributions or of facilitating the making of voluntary
contributions to a separate segregated fund established by a corpora-
tion, permitted by law to corporations with regard to stockholders
and executive or administrative personnel, shall also be permitted to
labor organizations with regard to their members.
"(6) Any corporation, including its subsidiaries, branches, divi-
sions, and affiliates, that utilizes a method of soliciting voluntary con-
tributions or facilitating the making of voluntary contributions, shall
make available such method, on written request and at a cost sufficient
only to reimburse the corporation for the expenses incurred thereby,
to a labor organization representing any members working for such
corporation, its subsidiaries, branches, divisions, and affiliates.
(7) For purposes of this section, the term 'executive or adminis-
trative personnel' means individuals employed by a corporation who
are paid on a salary, rather than hourly, basis and who have policymak-
ing, managerial, professional, or supervisory responsibilities.
"CONTRIBUTIONS BY GOVERNMENT CONTRACTORS
"SEC. 322. (a) It shall be unlawful for any person-
"(1) who enters into any contract with the United States or any
department or agency thereof either for the rendition of personal
services or furnishing any material, supplies, or equipment to the
United States or any department or agency thereof or for selling
any land or building to the United States or any department or
agency thereof, if payment for the performance of such contract
or payment for such material, supplies, equipment, land, or build-
ing is to be made in whole or in part from funds appropriated by
the Congress, at any time between the commencement of negotia-
tions for and the later of (A) the completion of performance
under; or (B) the termination of negotiations for, such contract
or furnishing of material, supplies, equipment, land, or buildings,
directly or indirectly to make any contribution of money or other
things of value, or to promise expressly or impliedly to make any
such contribution to any political party, committee, or candidate
for public office or to any person for any political purpose or use;
or
S. 3065-19
"(2) knowingly to solicit any such contribution from any such
person for any such purpose during any such period.
(b) This section does not prohibit or make unlawful the establish-
ment or administration of, or the solicitation of contributions to, any
separate segregated fund by any corporation, labor organization, mem-
bership organization, cooperative, or corporation without capital stock
for the purpose of influencing the nomination for election, or election,
of any person to Federal office, unless the provisions of section 321
prohibit or make unlawful the establishment or administration of, or
the solicitation of contributions to, such fund. Each specific prohibi-
tion, allowance, and duty applicable to a corporation, labor organiza-
tion, or separate segregated fund under section 321 applies to a
corporation, labor organization, or separate segregated fund to which
this subsection applies.
"(c) For purposes of this section, the term 'labor organization' has
the meaning given it by section 321 (b) (1).
"PUBLICATION OR DISTRIBUTION OF POLITICAL STATEMENTS
"SEC. 323. Whenever any person makes an expenditure for the pur-
pose of financing communications expressly advocating the election or
defeat of a clearly identified candidate through any broadcasting
station, newspaper, magazine, outdoor advertising facility, direct mail-
ing, or any other type of general public political advertising, such
communication-
(1) if authorized by a candidate, his authorized political com-
mittees, or their agents, shall clearly and conspicuously, in accord-
ance with regulations prescribed by the Commission, state that the
communication has been authorized; or
"(2) if not authorized by a candidate, his authorized political
committees, or their agents, shall clearly and conspicuously, in
accordance with regulations prescribed by the Commission, state
that the communication is not authorized by any candidate, and
state the name of the person who made or financed the expenditure
for the communication, including, in the case of a political com-
mittee, the name of any affiliated or connected organization
required to be disclosed under section 303 (b) (2).
"CONTRIBUTIONS BY FOREIGN NATIONALS
"SEC. 324. (a) It shall be unlawful for a foreign national directly
or through any other person to make any contribution of money or
other thing of value, or to promise expressly or impliedly to make any
such contribution, in connection with an election to any political office
or in connection with any primary election, convention, or caucus held
to select candidates for any political office: or for any person to solicit,
accept, or receive any such contribution from a foreign national.
(b) As used in this section, the term 'foreign national' means—
(1) a foreign principal, as such term is defined by section (b)
of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611
(b)), except that the term 'foreign national' shall not include any
individual who is a citizen of the United States; or
"(2) an individual who is not a citizen of the United States and
who is not lawfully admitted for permanent residence, as defined
by section 101 (a) (20) of the Immigration and Nationality Act
(8 U.S.C. 1101 (a) (20)).
S. 3065-20
"PROHIBITION OF CONTRIBUTIONS IN NAME OF ANOTHER
"SEC. 325. No person shall make a contribution in the name of
another person or knowingly permit his name to be used to effect such
a contribution, and no person shall knowingly accept a contribution
made by one person in the name of another person.
"LIMITATION ON CONTRIBUTION OF CURRENCY
"SEC. 326. No person shall make contributions of currency of the
United States or currency of any foreign country to or for the benefit
of any candidate which, in the aggregate, exceed $100, with respect to
any campaign of such candidate for nomination for election, or for
election, to Federal office.
"FRAUDULENT MISREPRESENTATION OF CAMPAIGN AUTHORITY
"SEC. 327. No person who is a candidate for Federal office or an
employee or agent of such a candidate shall-
"(1) fraudulently misrepresent himself or any committee or
organization under his control as speaking or writing or otherwise
acting for or on behalf of any other candidate or political party
or employee or agent thereof on a matter which is damaging to
such other candidate or political party or employee or agent there-
of; or
"(2) willfully and knowingly participate in or conspire to
participate in any plan, scheme, or design to violate paragraph
(1).
"ACCEPTANCE OF EXCESSIVE HONORARIUMS
"SEC. 328. No person while an elected or appointed officer or
employee of any branch of the Federal Government shall accept-
(1) any honorarium of more than $2,000 (excluding amounts
accepted for actual travel and subsistence expenses for such per-
son and his spouse or an aide to such person, and excluding
amounts paid or incurred for any agents' fees or commissions)
for any appearance, speech, or article; or
"(2) honorariums (not prohibited by paragraph (1) of this
section) aggregating more than $25,000 in any calendar year.
"PENALTY FOR VIOLATIONS
"SEC. 329. (a) Any person, following the date of the enactment of
this section, who knowingly and willfully commits a violation of any
provision or provisions of this Act which involves the making, receiv-
ing, or reporting of any contribution or expenditure having a value
in the aggregate of $1,000 or more during a calendar year shall be fined
in an amount which does not exceed the greater of $25,000 or 300 per-
cent of the amount of any contribution or expenditure involved in
such violation, imprisoned for not more than 1 year, or both. In the
case of a knowing and willful violation of section 321 (b) (3), includ-
ing such a violation of the provisions of such section as applicable
through section 322(b), of section 325, or of section 326, the penalties
set forth in this section shall apply to a violation involving an amount
having a value in the aggregate of $250 or more during a calendar
year. In the case of a knowing and willful violation of section 327,
the penalties set forth in this section shall apply without regard to
whether the making, receiving, or reporting of a contribution or
expenditure of $1,000 or more is involved.
S. 3065-21
"(b) A defendant in any criminal action brought for the violation
of a provision of this Act, or of a provision of chapter 95 or chapter 96
of the Internal Revenue Code of 1954, may introduce as evidence of
his lack of knowledge of or intent to commit the offense for which the
action was brought a conciliation agreement entered into between the
defendant and the Commission under section 313 which specifically
deals with the act or failure to act constituting such offense and which
is still in effect.
"(c) In any criminal action brought for a violation of a provision of
this Act, or of a provision of chapter 95 or chapter 96 of the Internal
Revenue Code of 1954, the court before which such action is brought
shall take into account, in weighing the seriousness of the offense and
in considering the appropriateness of the penalty to be imposed if the
defendant is found guilty, whether-
"(1) the specific act or failure to act which constitutes the
offense for which the action was brought is the subject of a con-
ciliation agreement entered into between the defendant and the
Commission under section 313;
(2) the conciliation agreement is in effect and
(3) the defendant is, with respect to the violation involved,
in compliance with the conciliation agreement.".
AUTHORIZATION OF APPROPRIATIONS
SEC. 113. Section 319 of the Act (2 U.S.C. 439c), as redesignated
by section 105, is amended by adding at the end thereof the follow-
ing sentence: "There are authorized to be appropriated to the Com-
mission $6,000,000 for the fiscal year ending June 30, 1976, $1,500,000
for the period beginning July 1, 1976, and ending September 30, 1976,
and $6,000,000 for the fiscal year ending September 30, 1977.".
SAVINGS PROVISION
SEC. 114. Except as otherwise provided by this Act, the repeal by
this Act of any section or penalty shall not have the effect of releasing
or extinguishing any penalty, forfeiture, or liability incurred under
such section or penalty, and such section or penalty shall be treated as
remaining in force for the purpose of sustaining any proper action or
prosecution for the enforcement of any penalty, forfeiture, or liability.
TECHNICAL AND CONFORMING AMENDMENTS
SEC. 115. (a) Section 306 (d) of the Act (2 U.S.C. 436(d)) is
amended by inserting immediately after "304 (a) (1) (C)," the fol-
lowing: "304(c),
(b) Section 310 (a) (7) of the Act (2 U.S.C. 437d (a) (7)) as redesig-
nated by section 105, is amended by striking out "313" and inserting in
lieu thereof "312".
(c) (1) Section 9002 (3) of the Internal Revenue Code of 1954 (defin-
ing Commission) is amended by striking out "310(a) (1)" and inserting
in lieu thereof "309 (a) (1)".
(2) Section 9032 (3) of the Internal Revenue Code of 1954 (defining
Commission) is amended by striking out "310(a) (1)" and inserting
in lieu thereof "309 (a) (1)".
(d) (1) Section 301 (e) (5) (F) of the Act (2 U.S.C. 431 (e) (5) (F))
is amended by striking out "the last paragraph of section 610 of title
18, United States Code" and inserting in lieu thereof "section 321 (b)".
S. 3065-22
(2) Section 301 (f) (4) (H) of the Act (2 U.S.C. 431 (f) (4) (H))
is amended by striking out "the last paragraph of section 610 of title
18, United States Code" and inserting in lieu thereof "section 321 (b)'
(e) Section 314 (a) of the Act (2 U.S.C. 437h(a)), as redesignated
by section 105, is amended by striking out "or of section 608, 610, 611,
613, 614, 615, 616, or 617 of title 18, United States Code" in the first
sentence of such subsection and by striking out "or of section 608, 610,
611, 613, 614, 615, 616, or 617 of title 18, United States Code," in the
second sentence of such subsection.
(f) (1) Section 406(a) of the Act (2 U.S.C. 455(a)) is amended
by striking out "or section 608, 610, 611, 613, 614, 615, 616, or 617 of
title 18, United States Code".
(2) Section 406(b) of the Act (2 U.S.C. 455 (b)) is amended by
striking out "or section 608, 610, 611, or 613 of title 18, United States
Code,".
(g) Section 591 of title 18, United States Code, as amended by sec-
tion 202 (c), is amended-
(1) by striking out "608(c) of this title" in paragraph (f) (4)
(I) and inserting in lieu thereof "section 320(b) of the Federal
Election Campaign Act of 1971";
(2) by striking out "by section 608(b) (2) of this title" in
paragraph (f) (4) (j) and inserting in lieu thereof "under section
320(a) (2) of the Federal Election Campaign Act of 1971"; and
(3) by striking out "310(a)" in paragraph (k) and inserting in
lieu thereof "309(a)".
(h) Section 301 (n) of the Act (2 U.S.C. 431 (n)) is amended by
striking out "302(f) (1)" and inserting in lieu thereof "302 (e) (1)
(i) The third sentence of section 308(a) (1) of the Act (2 U.S.C.
437b(a) (1)), as redesignated by section 105, is amended by striking
out "97" and inserting in lieu thereof "96".
TITLE II-AMENDMENTS TO TITLE 18,
UNITED STATES CODE
REPEAL OF CERTAIN PROVISIONS
SEC. 201. (a) Chapter 29 of title 18, United States Code, is amended
by striking out sections 608, 610, 611, 612, 613, 614, 615, 616, and 617.
(b) The table of sections for chapter 29 of title 18, United States
Code, is amended by striking out the items relating to sections 608,
610, 611, 612, 613, 614, 615, 616, and 617.
CHANGES IN DEFINITIONS
SEC. 202. (a) Section 591 of title 18, United States Code, is amended
by striking out "602, 608, 610, 611, 614, 615, and 617" and inserting in
lieu thereof "and 602".
(b) Section 591 (e) (4) of title 18, United States Code, is amended
by inserting immediately before the semicolon the following: ", except
that this paragraph shall not apply in the case of legal or accounting
services rendered to or on behalf of the national committee of a polit-
ical party (unless the person paying for such services is a person other
than the regular employer of the individual rendering such services),
other than services attributable to activities which directly further the
S. 3065-23
election of a designated candidate or candidates to Federal office, nor
shall this paragraph apply in the case of legal or accounting services
rendered to or on behalf of a candidate or political committee solely
for the purpose of ensuring compliance with the provisions of the Fed-
eral Election Campaign Act of 1971 or chapter 95 or chapter 96 of the
Internal Revenue Code of 1954 (unless the person paying for such serv-
ices is a person other than the regular employer of the individual
rendering such services), but amounts paid or incurred for such legal
or accounting services shall be reported in accordance with the require-
ments of section 304(b) of the Federal Election Campaign Act of
1971".
(c) Section 591 (f) (4) of title 18, United States Code, is amended—
(1) by redesignating clause (F) through clause (I) as clause
(G) through clause (J), respectively; and
(2) by inserting immediately after clause (E) the following
new clause:
"(F) the payment, by any person other than a candidate or
political committee, of compensation for legal or accounting
services rendered to or on behalf of the national committee of
a political party (unless the person paying for such services
is a person other than the regular employer of the individual
rendering such services), other than services attributable to
activities which directly further the election of a designated
candidate or candidates to Federal office, or the payment for
legal or accounting services rendered to or on behalf of a
candidate or political committee solely for the purpose of
ensuring compliance with the provisions of the Federal Elec-
tion Campaign Act of 1971 or of chapter 95 or chapter 96 of
the Internal Revenue Code of 1954 (unless the person pay-
ing for such services is a person other than the regular
employer of the individual rendering such services), but
amounts paid or incurred for such legal or accounting serv-
ices shall be reported under section 304(b) of the Federal
Election Campaign Act of 1971;".
TITLE III-AMENDMENTS TO INTERNAL REVENUE
CODE OF 1954
ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS
SEC. 301. (a) Section 9004 of the Internal Revenue Code of 1954
(relating to entitlement of eligible candidates to payments) is amended
by adding at the end thereof the following new subsections:
"(d) EXPENDITURES FROM PERSONAL FUNDS.-In order to be eligible
to receive any payment under section 9006, the candidate of a major,
minor, or new party in an election for the office of President shall
certify to the Commission, under penalty of perjury, that such can-
didate will not knowingly make expenditures from his personal funds,
or the personal funds of his immediate family, in connection with his
campaign for election to the office of President in excess of, in the
aggregate, $50,000. For purposes of this subsection, expenditures from
personal funds made by a candidate of a major, minor, or new party
for the office of Vice President shall be considered to be expenditures
by the candidate of such party for the office of President.
S. 3065-24
"(e) DEFINITION OF IMMEDIATE FAMILY.-For purposes of subsec-
tion (d), the term 'immediate family' means a candidate's spouse, and
any child, parent, grandparent, brother, half-brother, sister, or half-
sister of the candidate, and the spouses of such persons.".
(b) For purposes of applying section 9004(d) of the Internal Reve-
nue Code of 1954, as added by subsection (a), expenditures made
by an individual after January 29, 1976, and before the date of the
enactment of this Act shall not be taken into account.
PAYMENTS TO ELIGIBLE CANDIDATES; INSUFFICIENT AMOUNTS IN FUND
SEC. 302. (a) Section 9006 of the Internal Revenue Code of 1954
(relating to payments to eligible candidates) is amended by striking
out subsection (b) thereof and by redesignating subsection (c) and
subsection (d) as subsection (b) and subsection (c), respectively.
(b) Section 9006(c) of the Internal Revenue Code of 1954 (relating
to insufficient amounts in fund), as redesignated by subsection (a),
is amended by adding at the end thereof the following new sentence:
"In any case in which the Secretary or his delegate determines that
there are insufficient moneys in the fund to make payments under sub-
section (b), section 9008(b) (3), and section 9037(b), moneys shall
not be made available from any other source for the purpose of mak-
ing such payments.".
PROVISION OF LEGAL OR ACCOUNTING SERVICES
SEC. 303. Section 9008(d) of the Internal Revenue Code of 1954
(relating to limitation of expenditures) is amended by adding at the
end thereof the following new paragraph:
(4) PROVISION OF LEGAL OR ACCOUNTING SERVICES.-For pur-
poses of this section, the payment, by any person other than the
national committee of a political party (unless the person paying
for such services is a person other than the regular employer of the
individual rendering such services) of compensation to any indi-
vidual for legal or accounting services rendered to or on behalf of
the national committee of a political party shall not be treated
as an expenditure made by or on behalf of such committee with
respect to its limitations on presidential nominating convention
expenses.".
REVIEW OF REGULATIONS
SEC. 304. (a) Section 9009(c) of the Internal Revenue Code of 1954
(relating to review of regulations) is amended—
(1) in paragraph (2) thereof, by inserting immediately after
the first sentence thereof the following new sentences: "Whenever
a committee of the House of Representatives reports any resolu-
tion relating to any such rule or regulation, it is at any time
thereafter in order (even though a previous motion to the same
effect has been disagreed to) to move to proceed to the considera-
tion of the resolution. The motion is highly privileged and is not
debatable. An amendment to the motion is not in order, and it is
not in order to move to reconsider the vote by which the motion
is agreed to or disagreed to."; and
(2) by adding at the end thereof the following new paragraph:
(4) For purposes of this subsection, the term 'rule or regula-
tion' means a provision or series of interrelated provisions stating
a single separable rule of law.".
S. 3065-25
(b) Section 9039(c) of the Internal Revenue Code of 1954 (relating
to review of regulations) is amended—
(1) in paragraph (2) thereof, by inserting immediately after
the first sentence thereof the following new sentences: "Whenever
a committee of the House of Representatives reports any resolu-
tion relating to any such rule or regulation, it is at any time there-
after in order (even though a previous motion to the same effect
has been disagreed to) to move to proceed to the consideration of
the resolution. The motion is highly privileged and is not debat-
able. An amendment to the motion is not in order, and it is not in
order to move to reconsider the vote by which the motion is agreed
to or disagreed to."; and
(2) by adding at the end thereof the following new paragraph:
(4) For purposes of this subsection, the term 'rule or regula-
tion' means a provision or series of interrelated provisions stating
a single separable rule of law.".
QUALIFIED CAMPAIGN EXPENSE LIMITATION
SEC. 305. (a) Section 9035 of the Internal Revenue Code of 1954
(relating to qualified campaign expense limitation) is amended—
(1) in the heading thereof, by striking out "LIMITATION"
and inserting in lieu thereof "LIMITATIONS";
(2) by inserting '(a) EXPENDITURE LIMITATIONS.- immedi-
ately before "No candidate";
(3) by inserting immediately after "States Code" the follow-
ing: and no candidate shall knowingly make expenditures from
his personal funds, or the personal funds of his immediate fam-
ily, in connection with his campaign for nomination for election
to the office of President in excess of, in the aggregate, $50,000";
and
(4) by adding at the end thereof the following new subsection
"(b) DEFINITION OF IMMEDIATE FAMILY.-For purposes of this sec-
tion, the term 'immediate family' means a candidate's spouse, and any
child, parent, grandparent, brother, half-brother, sister, or half-sister
of the candidate, and the spouses of such persons.".
(b) The table of sections for chapter 96 of the Internal Revenue
Code of 1954 is amended by striking out the item relating to section
9035 and inserting in lieu thereof the following new item:
"SEC. 9035. Qualified campaign expense limitations.".
(c) Section 9033 (b) (1) of the Internal Revenue Code of 1954
(relating to expense limitation; declaration of intent; minimum con-
tributions) is amended by striking out "limitation" and inserting in
lieu thereof "limitations".
(d) For purposes of applying section 9035(a) of the Internal Reve-
nue Code of 1954, as amended by subsection (a), expenditures made
by an individual after January 29, 1976, and before the date of the
enactment of this Act shall not be taken into account.
RETURN OF FEDERAL MATCHING PAYMENTS
SEC. 306. (a) (1) Section 9002(2) of the Internal Revenue Code of
1954 (defining candidate) is amended by adding at the end thereof the
S. 3065-26
following new sentence: "The term 'candidate' shall not include any
individual who has ceased actively to seek election to the office of Presi-
dent of the United States or to the office of Vice President of the
United States, in more than one State."
(2) Section 9003 of the Internal Revenue Code of 1954 (relating to
condition for eligibility for payments) is amended by adding at the
end thereof the following new subsection:
(d) WITHDRAWAL BY CANDIDATE.-In any case in which an individ-
ual ceases to be a candidate as a result of the operation of the last
sentence of section 9002 (2), such individual-
"(1) shall no longer be eligible to receive any payments under
section 9006, except that such individual shall be eligible to receive
payments under such section to defray qualified campaign
expenses incurred while actively seeking election to the office of
President of the United States or to the office of Vice President of
the United States in more than one State; and
'(2) shall pay to the Secretary or his delegate, as soon as prac-
ticable after the date upon which such individual ceases to be a
candidate, an amount equal to the amount of payments received by
such individual under section 9006 which are not used to defray
qualified campaign expenses.".
(b) (1) Section 9032(2) of the Internal Revenue Code of 1954
(defining candidate) is amended by adding at the end thereof the fol-
lowing new sentence: "The term 'candidate' shall not include any indi-
vidual who is not actively conducting campaigns in more than one
State in connection with seeking nomination for election to be Presi-
dent of the United States.".
(2) Section 9033 of the Internal Revenue Code of 1954 (relating to
eligibility for payments) is amended by adding at the end thereof the
following new subsection:
(c) TERMINATION OF PAYMENTS.-
"(1) GENERAL RULE.-Except as provided by paragraph (2),
no payment shall be made to any individual under section 9037-
"(A) if such individual ceases to be a candidate as a result
of the operation of the last sentence of section 9032(2) ; or
"(B) more than 30 days after the date of the second con-
secutive primary election in which such individual receives
less than 10 percent of the number of votes cast for all candi-
dates of the same party for the same office in such primary
election, if such individual permitted or authorized the
appearance of his name on the ballot, unless such individual
certifies to the Commission that he will not be an active candi-
date in the primary involved.
"(2) QUALIFIED CAMPAIGN EXPENSES; PAYMENTS TO SECRE-
TARY.-Any candidate who is ineligible under paragraph (1) to
receive any payments under section 9037 shall be eligible to con-
tinue to receive payments under section 9037 to defray qualified
campaign expenses incurred before the date upon which such
candidate becomes ineligible under paragraph (1).
"(3) CALCULATION OF VOTING PERCENTAGE.-For purposes of
paragraph (1) (B), if the primary elections involved are held in
S. 3065-27
more than one State on the same date, a candidate shall be treated
as receiving that percentage of the votes on such date which he
received in the primary election conducted on such date in which
he received the greatest percentage vote.
"(4) REESTABLISHMENT OF ELIGIBILITY.-
(A) In any case in which an individual is ineligible to
receive payments under section 9037 as a result of the opera-
tion of paragraph (1) (A), the Commission may subsequently
determine that such individual is a candidate upon a finding
that such individual is actively seeking election to the office
of President of the United States in more than one State. The
Commission shall make such determination without requiring
such individual to reestablish his eligibility to receive pay-
ments under subsection (a).
(B) Notwithstanding the provisions of paragraph (1)
(B), a candidate whose payments have been terminated under
paragraph (1) (B) may again receive payments (including
amounts he would have received but for paragraph (1) (B))
if he receives 20 percent or more of the total number of votes
cast for candidates of the same party in a primary election
held after the date on which the election was held which was
the basis for terminating payments to him.".
(c) The amendments made by this section shall take effect on the
date of the enactment of this Act.
TECHNICAL AND CONFORMING AMENDMENTS
SEC. 307. (a) Section 9008 (b) (5) of the Internal Revenue Code of
1954 (relating to adjustment of entitlements) is amended—
(1) by striking out "section 608 (c) and section 608 (f) of title
18, United States Code," and inserting in lieu thereof "section
320 (b) and section 320 (d) of the Federal Election Campaign Act
of 1971"; and
(2) by striking out "section 608 (d) of such title" and inserting
in lieu thereof "section 320 (c) of such Act".
(b) Section 9034(b) of the Internal Revenue Code of 1954 (relating
to limitations) is amended by striking out "section 608 (1) (A) of
title 18, United States Code," and inserting in lieu thereof "section
320 (b) (1) (A) of the Federal Election Campaign Act of 1971".
(c) Section 9035 (a) of the Internal Revenue Code of 1954 (relating
to expenditure limitations), as redesignated by section 305(a), is
amended by striking out "section 608 (c) (1) (A) of title 18, United
States Code" and inserting in lieu thereof "section 320(b) (1) (A) of
the Federal Election Campaign Act of 1971".
(d) Section 9004(a) (1) of the Internal Revenue Code of 1954
(relating to entitlements of eligible candidates to payments) is
amended by striking out "608 (c) (1) (B) of title 18, United States
Code" and inserting in lieu thereof "320(b) (1) (B) of the Federal
Election Campaign Act of 1971".
S. 3065-28
(e) Section 9007 (b) (3) of the Internal Revenue Code of 1954
(relating to repayments) is amended by striking out "9006(d)" and
inserting in lieu thereof "9006(c)".
(f) Section 9012 (b) (1) of the Internal Revenue Code of 1954
(relating to contributions) is amended by striking out "9006(d)" and
inserting in lieu thereof "9006(c)".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
FOR IMMEDIATE RELEASE
May 11, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
After extensive consultation and review, I have
decided that the Federal Campaign Act Amendments of 1976
warrant my signature.
I am therefore signing those amendments into law this
afternoon. I will also be submitting to the Senate for its
advice and consent the nominations of six persons to serve
as members of the reconstituted Commission.
Shortly after the Supreme Court ruled on January 30 that
the Federal Election Commission was invalid as then constituted,
I made it clear that I favored a simple reconstitution of the
Commission because efforts to amend and reform the law could
cause massive confusion in election campaigns that had
already started.
The Congress, however, was unwilling to accept my
straightforward proposal and instead became bogged down in
a controversy that has now extended for more than three
months.
In the process, efforts were made to add several
provisions to the law which I thought were thoroughly objec-
tionable. These suggested provisions would have further
tipped the balance of political power to a single party and
to a single element within that party. I could not accept
those provisions under any circumstance and I so communicated
my views to various Members of the Congress.
Since that time, to my gratification, those features
of the bill have been modified so as to avoid in large
measure the objections I had raised.
Weighing the merits of this legislation, I have found
that the amendments as now drafted command widespread,
bipartisan support in both Houses of Congress and by the
Chairpersons of both the Republican National Committee and
the Democratic National Committee.
I still have serious reservations about certain aspects
of the present amendments. For one thing, the bill as
presently written will require that the Commission take
additional time to consider the effects which the present
amendments will have on its previously issued opinions and
regulations.
more
2
A more fundamental concern is that these amendments
jeopardize the independence of the Federal Election Commission
by permitting either House of Congress to veto regulations
which the Commission, as an Executive agency, issues. This
provision not only circumvents the original intent of
campaign reform but, in my opinion; violates the Constitution.
I have therefore directed the Attorney General to challenge
the constitutionality of this provision at the earliest
possible opportunity.
Recognizing these weaknesses in the bill, I have
nevertheless concluded that it is in the best interest of
the Nation that I sign this legislation. Considerable effort
has been expended by members of both parties to make this
bill as fair and balanced as possible.
Moreover, further delay would undermine the fair and
proper conduct of elections this year for seats in the
U.S. Senate, the House of Representatives and for the
Presidency. Effective regulation of campaign practices
depends upon the existence of a Commission with valid
rulemaking and enforcement powers. It is critical that
we maintain the integrity of our election process for all
Federal offices so that all candidates and their respective
supporters and contributors are bound by enforceable laws
and regulations which are designed to control questionable
and unfair campaign practices.
I look to the Commission, as soon as it is reappointed,
to do an effective job of administering the campaign laws
equitably but forcefully, and in a manner that minimizes the
confusion which is caused by the added complexity of the
present amendments. In this regard, the Commission will be
aided by a newly provided civil enforcement mechanism
sufficiently flexible to facilitate voluntary compliance
through conciliation agreements and, where necessary
penalize noncompliance through means of civil fines.
In addition the new legislation refines the provisions
intended to control the size of contributions from a single
source by avoiding proliferation of political action com-
mittees which are under common control. Also, this law
strengthens provisions for reporting money spent on campaigns
by requiring disclosure of previously unreported costs of
partisan communications which are intended to affect the
outcome of Federal elections.
Following the 1976 elections, I will submit to the
Congress legislation that will correct problems created by
the present laws and make additional needed reforms in the
election process.
#
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EMBARGOED FOR RELEASE UNTIL 3 pm EDT
APRIL 27, 1976
2 pm CDT
Office of the White House Press Secretary
(Shreveport, Louisiana)
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
On October 15, 1974, I signed into law the Federal Election Campaign Act
Amendments of 1974, which made far-reaching changes in the laws affecting
Federal elections in election campaign practices. This law created the Fed-
eral Election Commission to administer and enforce a comprehensive
regulatory scheme for Federal campaigns.
On January 30, 1976, the United States Supreme Court ruled that certain
features of the new law were unconstitutional. The Court allowed a total of
50 days to "afford Congress an opportunity to reconstitute the Commission
by law.'
On February 16, I submitted legislation to reconstitute the Commission and
urged Congress to enact quickly this required change so it could continue to
operate through the 1976 election. This is the simple and fair thing to do.
Instead, Congress has already spent over 70 days in its attempt to amend the
existing law in many unnecessary areas.
Because of this delay, campaigns which were planned in accordance with the
funding and regulatory provisions of the election law, now lack funds and
lack ground rules. The complex changes in the draft conference bill can only
introduce added uncertainty in the law and thus creat confusion for the candi-
dates in the present campaigns and jeopardize the conduct of this year's
Presidential election.
Accordingly, I again urge the Congress to immediately pass the simple
corrections mandated by the Supreme Court and proposed by me. The
American people want and deserve an independent and effective Election
Commission. There must be a fair and clear law on the books to guide the
campaigns. All Presidential candidates need the funds which are blocked by
the Congressional inaction.
A Congressional con ferees committee is still working, on the details of the
Federal Election Commission legislation. This legislation could have a
major impact on how Presidential elections are conducted in this country.
This is not a subject that any President can treat lightly, and I will not commit
myself to sign or veto until the Congress completes definitive action on the
bill.
There is no question that the Congressional conferees can adopt a bill which
I can quickly sign into law. They should avoid objectionable and highly
controversial provisions by moving toward simple reconstitution suggested by
the Supreme Court and proposed by me in February.
#
#
#
May 5, 1976
Dear Mr. Director:
The following bill was received at the White
House on May 5th:
8. 3065
Please let the President have reports and
recommendations as to the approval of this
bill as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C.