I
103D CONGRESS
1ST SESSION
H. R. 1235
To amend the Federal Election Campaign Act of 1971 to provide for vol-
untary expenditure limitations, to restrict the practice of ‘‘bundling’’
of contributions, to provide for tax credit and deduction for contributions
to candidates for Congress, to require full disclosure of independent
expenditures, to eliminate PAC contributions to individual candidates,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 4, 1993
Mr. REGULA introduced the following bill; which was referred jointly to the
Committees on House Administration, Ways and Means, and Post Office
and Civil Service
A BILL
To amend the Federal Election Campaign Act of 1971 to
provide for voluntary expenditure limitations, to restrict
the practice of ‘‘bundling’’ of contributions, to provide
for tax credit and deduction for contributions to can-
didates for Congress, to require full disclosure of inde-
pendent expenditures, to eliminate PAC contributions to
individual candidates, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Congressional Cam-
paign and Administrative Reform Act of 1993’’.
SEC. 2. CONTRIBUTIONS BY MULTICANDIDATE POLITICAL
PARTIES.
(a) Section 315(a)(2) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a(a)(2)) is amended by—
(1) striking all following ‘‘Federal office’’ in
subparagraph (A) and inserting at the end thereof
‘‘;’’; and
(2) striking out ‘‘$15,000’’ in subparagraph (B)
and inserting in lieu thereof ‘‘$5,000’’; and
(3) striking all following ‘‘political committees’’
in subparagraph (C), and inserting at the end there-
of ‘‘.’’.
SEC. 3. INDEPENDENT EXPENDITURES.
(a) Section 301(17) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431(9)) is amended by add-
ing the following: ‘‘An expenditure shall constitute an ex-
penditure in coordination, consultation, or concert with a
candidate and shall not constitute an ‘‘independent ex-
penditure’’ where—
‘‘(A) there is any arrangement, coordina-
tion, or direction with respect to the expendi-
ture between the candidate or the candidate’s
agent and the person (including any officer, di-
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rector, employee or agent of such person) mak-
ing the expenditure;
‘‘(B) in the same election cycle, the person
making the expenditure (including any officer,
director, employee or agent of such person) is
or has been—
‘‘(i) authorized to raise or expend
funds on behalf of the candidate or the
candidate’s authorized committees,
‘‘(ii) serving as an officer of the can-
didate’s authorized committees, or
‘‘(iii) receiving any form of compensa-
tion or reimbursement from the candidate,
the candidate’s authorized committees, or
the candidate’s agent;
‘‘(C) the person making the expenditure
(including any officer, director, employee or
agent of such person) has communicated with,
advised, or counseled the candidate or the can-
didate’s agents at any time on the candidate’s
plans, projects, or needs relating to the can-
didate’s pursuit of nomination for election, or
election to Federal office, in the same election
cycle, including any advice relating to the can-
didate’s decision to seek Federal office;
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‘‘(D) the person making the expenditure
(including any officer, director, employee or
agent of such person) has communicated or
consulted at any time during the same election
cycle about the candidate’s plans, projects, or
needs relating to the candidate’s pursuit of elec-
tion to Federal office, with—
‘‘(i) any officer, director, employee or
agent of a party committee that has made
or intends to make expenditures or con-
tributions, pursuant to subsection (a), (d),
or (h) of section 315 in connection with
the candidate’s campaign; or
‘‘(ii) any person whose professional
services have been retained by a political
party committee that has made or intends
to make expenditures or contributions pur-
suant to subsection (a), (d), or (h), or sec-
tion 315 in connection with the candidate’s
campaign; and
‘‘(E) the expenditure is based on informa-
tion provided to the person making the expendi-
ture directly or indirectly by the candidate or
the candidate’s agents about the candidate’s
plans, projects, or needs, provided that the can-
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didate or the candidate’s agent is aware that
the other person has made or is planning to
make expenditure expressly advocating the can-
didate’s election.’’.
SEC. 4. CONTRIBUTIONS AND INTERMEDIARY
(a) Section 315(a)(8) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(8)) is amended to
read as follows:
‘‘(8) For purposes of this subsection—
‘‘(A) contributions made by a person, ei-
ther directly or indirectly, to or on behalf of a
particular candidate, including contributions
which are in any way earmarked or otherwise
directed through an intermediary to such can-
didate, shall be treated as contributions from
such person to such candidate; and
‘‘(B) contributions made by a person either
directly or indirectly, to or on behalf of a par-
ticular candidate, through an intermediary, in-
cluding all contributions delivered or arranged
to be delivered by such intermediary, shall also
be 
treated 
as 
contributions 
from 
the
intermediary, if—
‘‘(i) the contributions made through
the intermediary are in the form of a check
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or other negotiable instrument made pay-
able to the intermediary rather than the
intended recipient; or
‘‘(ii) the intermediary is—
‘‘(I) a political committee, other
than an authorized committee of a
candidate, within the meaning of sec-
tion 301(4), or an officer, employee or
other agent of such a political com-
mittee or candidate, or the national
committee of a political party, or
‘‘(II) an officer, employee or
other agent of a connected organiza-
tion, within the meaning of section
301(7), acting on its behalf.’’.
SEC. 5. CREDIT FOR CONTRIBUTIONS TO CONGRESSIONAL
CAMPAIGNS.
(a) GENERAL RULE.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 23 the following new
section:
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‘‘SEC. 
24. 
CONTRIBUTIONS 
TO 
CONGRESSIONAL 
CAM-
PAIGNS.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed, subject to the limitations of sub-
section (b), as a credit against the tax imposed by this
chapter for the taxable year, an amount equal to the full
amount of all congressional contributions, as defined in
subsection (c)(1).
‘‘(b) LIMITATIONS.—
‘‘(1) The credit allowed by subsection (a) for a
taxable year shall not exceed an aggregate of $100
($200 in the case of a joint return under section
6013) for all congressional contributions by an indi-
vidual in said year.
‘‘(2) The credit under subsection (a) shall not
be allowed, with respect to a congressional contribu-
tion, if the contribution is transmitted to the can-
didate or a campaign committee of the candidate
through an intermediary group, organization, or
committee.
‘‘(c) DEFINITIONS.—For purposes of this sub-
section—
‘‘(1) The term ‘congressional contribution’
means a contribution or gift of money, payment of
which is made during the taxable year, to an individ-
ual who is a candidate for nomination or election to
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the office of Senator or Representative in, or Dele-
gate or Resident Commissioner to, the Congress of
the United States in any primary, general, or special
election, and which—
‘‘(A) is from a taxpayer (or either spouse
in case of a joint return) who is a resident of
the State in which the election is held; and
‘‘(B) is solely for use by the recipient to
further his candidacy for nomination or election
to such office.
‘‘(2) The term ‘candidate’ means an individual
who—
‘‘(A) publicly announces before the close of
the calendar year following the calendar year in
which the contribution or gift is made that he
is a candidate for nomination or election to one
of the offices specified in paragraph (1); and
‘‘(B) meets the qualifications prescribed by
law to hold such office.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subpart A of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 23 the following new item:
‘‘Sec. 24. Contributions to Congressional Campaigns.’’.
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(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions paid after Decem-
ber 31, 1993, in taxable years ending after that date.
SEC. 6. DEDUCTION FOR CONTRIBUTIONS TO CONGRES-
SIONAL CAMPAIGNS.
(a) GENERAL RULE.—Part VII of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 is amend-
ed by inserting after section 217 the following new section:
‘‘SEC. 218. CONTRIBUTIONS TO CONGRESSIONAL CAM-
PAIGNS.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed, subject to the limitations of sub-
section (b), as a deduction any congressional contribution
of which is made by such individual within the taxable
year, as defined in subsection (c)(1).
‘‘(b) LIMITATIONS.—
‘‘(1) The deduction allowed by subsection (a)
for a taxable year shall not exceed an aggregate of
$500 ($1,000 in the case of a joint return under
section 6013) for all congressional contributions by
an individual in said year.
‘‘(2) The deduction under subsection (a) shall
not be allowed, with respect to a congressional con-
tribution, if the contribution is transmitted to the
candidate or a campaign committee of the candidate
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‘‘(B) meets the qualifications prescribed by
law to hold such office.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
is amended by inserting after the item relating to section
217 the following new item:
‘‘Sec. 218. Contributions to Congressional Campaigns.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions paid after Decem-
ber 31, 1993, in taxable years ending after that date.
SEC. 7. VOLUNTARY EXPENDITURE LIMITATIONS ON CON-
GRESSIONAL ELECTIONS.
(a) IN GENERAL.—The Federal Election Campaign
Act of 1971 (2 U.S.C. 431 et seq.) is amended by adding
at the end the following:
‘‘TITLE V—VOLUNTARY EXPENDITURE LIMITA-
TIONS AND SELECTED FINANCING FOR
HOUSE OF REPRESENTATIVES GENERAL
ELECTIONS
‘‘SEC. 501. (a) As used in this title, the term—
‘‘(1) ‘eligible candidate’ means a candidate who
is eligible under section 502 to receive payments
under this title;
‘‘(2) ‘general election’ means any election which
will directly result in the election of a person to the
office of Representative in, or Delegate or Resident
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Commissioner to, the Congress but does not include
an open primary election; and
‘‘(3) ‘election cycle’ means the term beginning
on the day after the date of the last previous general
election for Representative in, or Delegate or Resi-
dent Commissioner to, the Congress and ending on
the date of the next general election.
‘‘SEC. 502. (a) To be eligible to receive payments
under section 504, a candidate for the office of Represent-
ative in, or Delegate or Resident Commissioner to, the
Congress who qualifies for the general election ballot
under State law shall, not later than seven days after such
qualification, agree in writing that the candidate and the
candidate’s authorized committees—
‘‘(1) has not and will not make any expenditure
which exceeds the limitation under section 503, sub-
ject to the provisions of section 505;
‘‘(2) has not and will not accept any contribu-
tion which exceeds a limitation under section 315(a);
‘‘(3) will deposit all payments received under
this section in a separate checking account in a de-
pository institution referred to in section 302(h)(1),
which shall contain only amounts so received and
from which all expenditures of such amounts shall
be made; and
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‘‘(4) will furnish campaign records, evidence of
contributions, and other appropriate information to
the Commission.
‘‘(b) To be eligible to receive payments under section
506, a candidate for the office of Representative in, or
Delegate or Resident Commissioner to, the Congress who
qualifies for the general election ballot under State law
shall certify to the Commission that—
‘‘(1) during the period beginning on January 1
of the calendar year preceding the year of a general
election, or in the case of a special election during
the period beginning on the day on which the va-
cancy occurs in the office involved, such candidate
and the authorized committees of such candidate
have received contributions aggregating 10 percent
of the applicable limitation under section 503(b);
‘‘(2) 80 percent of such contributions have
come from individuals residing in such candidate’s
State; and
‘‘(3) at least one other candidate has qualified
for the general election ballot.
‘‘(c) For purposes of subsection (b)(1) in determining
the amount of contributions received by a candidate and
the candidate’s authorized committees—
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‘‘(1) no contribution other than a contribution
of money made by a written instrument which iden-
tifies the person making the contribution shall be
taken into account;
‘‘(2) no contribution that is considered a con-
tribution by an intermediary under section 315(a)(8)
shall be taken into account; and
‘‘(3) no contribution received from any person
other than an individual shall be taken into account,
and no contribution received from an individual shall
be taken into account to the extent such contribution
exceeds $500 when added to the amount of all other
contributions made by such individual to or for the
benefit of such candidate during the applicable pe-
riod specified in paragraph (4).
‘‘SEC. 503. (a) A candidate who receives payments
for a general election under this title shall not make ex-
penditures during that election cycle from the personal
funds of such candidate, which, in the aggregate, exceed
$40,000.
‘‘(b) Except as provided in paragraph (c) and section
504, a candidate who receives payments for a general elec-
tion under this title shall not make expenditures during
the election cycle that cover such general election which,
in the aggregate, exceed $500,000.
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‘‘(c) A candidate who receives payments under this
title and who participates in a primary runoff election may
make additional expenditures for such primary runoff elec-
tion which in the aggregate do not exceed $150,000.
‘‘(d) An eligible candidate may make expenditures
without regard to the limitations set forth in this sub-
section if any candidate in the same general election
makes aggregate expenditures during the election cycle
which exceed the amount of the limitation set forth in sec-
tion 503(b).
‘‘(e) The limitations established by subsections (b)
and (c) shall be adjusted in the manner provided in section
315(c), except that, for the purposes of such adjustment,
the base period shall be calendar year 1990.
‘‘SEC. 504. (a) An eligible candidate shall be entitled
to—
‘‘(1) an allotment of ninety minutes of tele-
vision time, divided as the candidate chooses;
‘‘(2) an allotment of one hundred and thirty-
five minutes of radio time, divided as the candidate
chooses;
‘‘(3) an allotment of one hundred and twenty-
six column inches or one page, whichever is greater,
of newspaper advertising, divided as the candidate
chooses; and
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‘‘(4) an allotment of any costs incurred in the
installation of telephones and other equipment for a
question-and-answer format if such a format is used
during the candidate’s allotted time on television or
radio.
‘‘(b) Payment shall be made for such allotments by
the Secretary of the Treasury as provided in section 506.
‘‘SEC. 505. (a) A schedule of such advertisements and
installations (as set forth in paragraphs (1) through (4)
of section 504(a)) shall be submitted, by an eligible can-
didate, to the Commission not later than ten days before
the election, including—
‘‘(1) a separate listing for the television allot-
ment, the radio allotment, and the newspaper allot-
ment;
‘‘(2) the date and time of each advertisement
within such allotment;
‘‘(3) the state or newspaper providing the time
or space for such advertisement;
‘‘(4) the amount of time or space that will be
used for television, radio, and newspaper advertising;
‘‘(5) the total amount of time or space that will
be used for television, radio, and newspaper advertis-
ing; and
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‘‘(6) with respect to a television or radio adver-
tisement involving the installation of telephones or
other equipment, the name of the company providing
such installation, and the cost of such installation.
‘‘(b) Such schedule shall be in a form, as further pre-
scribed by the Commission, which provides for a ranking
within each of the television, radio, and newspaper allot-
ments, of each advertisement. Each candidate submitting
a schedule shall rank such advertisements in order of his
preference, for purposes of any reduction of the maximum
allotments that may be required under section 506(a)(2).
‘‘(c)(1) Each station, newspaper, or company provid-
ing time, space, or service with respect to an allotment
under paragraphs (1) through (4) of section 504(a) shall
submit a report of charges to the Commission, as provided
in paragraph (2). Such a station, newspaper, or company
shall be guaranteed payment under section 506 only if
such report is received by the Commission not later than
ten days before the election.
‘‘(2)(A) The report required by paragraph (1) shall
include, in the case of an advertisement that will be broad-
cast or published, a listing of—
‘‘(i) the candidate for whom the time or space
is provided;
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‘‘(ii) the date and time when each advertise-
ment will be broadcast or published;
‘‘(iii) the amount of time or space used; and
‘‘(iv) the charge made for such advertisement.
‘‘(B) The report required by paragraph (1) shall in-
clude, in the case of installation of telephones or equip-
ment—
‘‘(i) the candidate for whom the installation is
made;
‘‘(ii) the advertisement in connection with which
such equipment will be installed, identified by the
date and time of such advertisement, and the station
or newspaper, providing the time or space for such
advertisement; and
‘‘(iii) the charge for such installation.
‘‘SEC. 506. (a)(1)(A) The Commission shall certify
to the Secretary of the Treasury a charge for payment
as soon as practicable after the date on which reports
must be submitted under such section—
‘‘(i) if such charge is listed in the schedule sub-
mitted by the candidate for whom the time, space,
or service is to be provided, and there is no discrep-
ancy between the information relating to such
charge provided with such report and provided with
the schedule under section 505(a);
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‘‘(ii) if such charge, as represented on such
schedule, is not for time or space in excess of the
maximum allowed under paragraph (1), (2), or (3)
of section 504(a); and
‘‘(iii) to the extent that the rate charged is not,
in the case of a television or radio station, in excess
of the limits imposed by section 315(b) of the Com-
munications Act of 1934 (47 U.S.C. 315(b)), in the
case of a newspaper, in excess of the limits imposed
by section 4318(b), and in the case of a company
providing installation service, in excess of the
amount charged for comparable service in the dis-
trict where such installation is provided.
‘‘(B) At the time of the certification of a charge
under this subsection the Commission shall immediately
notify the station, newspaper, or company that its charge
has been certified and that payment will be made by the
Secretary of the Treasury not later than thirty days from
date of certification.
‘‘(C)(i) In any case in which the commission fails to
certify a charge because one of the conditions set forth
in clause (i) or (ii) of subparagraph (B) has not been met,
the Commission shall immediately notify the candidate
and the station, newspaper, or company involved of such
action, and such parties shall be allowed ten days after
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such notification to submit amended schedules and re-
ports, in a manner prescribed by the Commission.
‘‘(ii) In any case in which the Commission fails to
certify part of a charge because it is excessive under clause
(iii) of subparagraph (A), it shall immediately notify the
station or newspaper affected of such action, and shall
provide such station or newspaper with a hearing.
‘‘(D) The Commission shall certify any charge sub-
mitted later than ten days before the election only to the
extent that the time, space, or service for which such
charge is made does not exceed the limits imposed by sec-
tion 504(a).
‘‘(2) The Commission shall certify charges to the Sec-
retary of the Treasury for payment under this subsection
only to the extent provided in appropriation Acts. If at
the time that reports are required to be submitted under
section 505(c)(1) the total of all charges submitted with
respect to the allotments under paragraphs (1) through
(4) of section 504(a) exceeds the amount appropriated for
such purposes, the Commission shall certify charges as fol-
lows:
‘‘(A) The Commission shall determine the per-
centage by which the total amount of charge submit-
ted must be reduced in order to make such total
equal to the amount appropriated.
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‘‘(B) The Commission shall reduce the amount
of time and space requested by each candidate for
each allotment under paragraphs (1) through (3) of
section 504(a) by the percentage determined under
subparagraph (A), according to the ranking made by
each such candidate in his schedule.
‘‘(C) The Commission shall certify the charges
selected under subparagraph (B) to the Secretary of
the Treasury for payment, and shall promptly notify
each station, newspaper, and company, and each
candidate of such selections.
The determination, reduction, and notification shall, when
required by this section, be made by the commission not
later than three days after the date on which reports are
required to be submitted under section 505(c)(1).
‘‘(3) There are authorized to be appropriated for each
fiscal year beginning with the fiscal year beginning on Oc-
tober 1, 1993, such funds as are necessary to make the
payments required by this subsection.
‘‘(b)(1) The Commission shall certify to the Secretary
of the Treasury a charge under section 505(c)(1) for pay-
ment, as soon as practicable after the candidate’s certifi-
cation is submitted to the Commission, to the extent that
such charge is not in excess of the amount to which the
candidate submitting such charge is entitled under section
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504(a), and only to the extent provided in prior appropria-
tion Acts.
‘‘(2) In any case in which the Commission fails to
certify part of a charge under paragraph (1), it shall im-
mediately notify the candidate of such action and provide
a hearing to such candidate.
‘‘(3) There are authorized to be appropriated for each
fiscal year beginning with the fiscal year beginning on Oc-
tober 1, 1993 such funds as are necessary for the
purposed of this subsection.’’.
SEC. 8. SOFT MONEY
(a) IN GENERAL.—Title III of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended
by adding at the end the following new section:
‘‘LIMITATIONS AND REPORTING REQUIREMENTS FOR THE
FEDERAL
ELECTION
PORTION
OF
AMOUNTS
PAID
FOR MINGLED ACTIVITIES
‘‘SEC. 324. (a) Any payment by the national commit-
tee of a political party or a State committee of a political
party for the Federal election portion of a mingled activ-
ity—
‘‘(1) shall be subject to limitation and reporting
under this Act as if such payment were an expendi-
ture; and
‘‘(2) may be paid only from an account that is
subject to the requirements of this Act.
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Subject to subsection (b), the amount of a payment for
the Federal election portion of a mingled activity shall be
calculated by determining the percentage of the mingled
activity that is reasonably attributable to the purpose of
influencing an election for Federal office.
‘‘(b)(1) In the case of the national committee of a
political party, the amount of a payment for the Federal
election portion of a mingled activity—
‘‘(A) in a presidential election year, shall be not
less than 67 percent of the total payment for the
mingled activity; and
‘‘(B) in any other even-numbered year, shall be
not less than 33 percent of the total payment for the
mingled activity.
‘‘(2) In the case of a State committee of a political
party the amount of a payment for the Federal election
portion of a mingled activity—
‘‘(A) in a presidential election year, shall be not
less than 33 percent of the total payment for the
mingled activity; and
‘‘(B) in any other even-numbered year, shall be
not less than 20 percent of the total payment for the
mingled activity.
‘‘(c) As used in this section, the term ‘mingled activ-
ity’ means, with respect to a payment by the national com-
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mittee of a political party or a State committee of a politi-
cal party, an activity, such as a voter registration pro-
gram, a get-out-the-vote drive, or general political adver-
tising, that is both—
‘‘(1) for the purpose of influencing an election
for Federal office; and
‘‘(2) for any purpose unrelated to influencing
an election for influencing an election for Federal of-
fice.’’.
SEC. 9. LIMITATION ON CONTRIBUTIONS FROM PERSONS
OTHER THAN LOCAL INDIVIDUAL RESIDENTS.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a) is amended by adding at the end
the following new subsection:
‘‘(i)(1) A candidate for the office of Representative
in, or Delegate or Resident Commissioner to, the Congress
may not, with respect to a reporting period for an election,
accept contributions from persons other than local individ-
ual residents totaling in excess of the total contributions
accepted from local individual residents.
‘‘(2) As used in this subsection, the term ‘local indi-
vidual resident’ means an individual who resides in a coun-
ty, or municipality, any part of which is in the congres-
sional district involved.
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‘‘(3) For purposes of this subsection, an individual
may not be considered a resident of more than one con-
gressional district.’’.
SEC. 10. REQUIREMENT OF ACCOUNTABILITY FOR USE OF
THE FRANK BY MEMBERS OF THE HOUSE OF
REPRESENTATIVES.
Section 3210 of title 39, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(h) a Member of, or Member-elect to, the House of
Representatives shall account for all franked mail mailed
under this chapter as such a Member or Member-elect (as
the case may be), exclusive of any mailings made under
subsection (d). Such account shall be—
‘‘(1) made in the form and manner prescribed
by the Commission on Congressional Mailing Stand-
ards; and
‘‘(2) submitted to the Clerk of the House of
Representatives for publication in the Congressional
Record.’’.
SEC. 11. SEVERABILITY.
If any provision of this Act or any amendment made
by this Act, or the application of any such provision to
any person or circumstance is held invalid, the validity of
any other such provision, and the application of such pro-
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vision to other persons and circumstances shall not be af-
fected thereby.
SEC. 12. EFFECTIVE DATE.
This Act and the amendments made by this Act, ex-
cept for such sections specifically designated otherwise,
shall become effective on November 7, 1990 and shall
apply to all contributions and expenditures made after
such date.
Æ
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