I
105TH CONGRESS
1ST SESSION
H. R. 462
To amend the Federal Election Campaign Act of 1971 to control House
of Representatives campaign spending, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 21, 1997
Mr. COSTELLO introduced the following bill; which was referred to the
Committee on House Oversight
A BILL
To amend the Federal Election Campaign Act of 1971 to
control House of Representatives campaign spending,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Campaign Finance
System Reform Act’’.
TITLE I—CONTROL OF HOUSE
OF REPRESENTATIVES CAM-
PAIGN SPENDING
SEC. 101. HOUSE OF REPRESENTATIVES CANDIDATES PRO-
HIBITED FROM ACCEPTING CONTRIBUTIONS
FROM POLITICAL ACTION COMMITTEES AND
OTHER SOURCES EXCEPT INDIVIDUALS.
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) Notwithstanding any other provision of this Act,
a candidate for the office of Representative in, or Delegate
or Resident Commissioner to, the Congress may not ac-
cept any contribution from a multicandidate political com-
mittee or any other person other than an individual.’’.
SEC. 102. CONTRIBUTIONS TO HOUSE OF REPRESENTA-
TIVES CANDIDATES REQUIRED TO BE FROM
INDIVIDUAL RESIDENTS OF THE CONGRES-
SIONAL DISTRICT.
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:
‘‘CONTRIBUTIONS TO HOUSE OF REPRESENTATIVES CAN-
DIDATES REQUIRED TO BE FROM INDIVIDUAL RESI-
DENTS OF THE CONGRESSIONAL DISTRICT
‘‘SEC. 323. Notwithstanding any other provision of
this Act, a candidate for the office of Representative in,
or Delegate or Resident Commissioner to, the Congress
may not accept contributions from any person other than
an individual resident of the congressional district in-
volved.’’.
SEC. 103. PROVISIONS APPLICABLE TO ELIGIBLE HOUSE
OF REPRESENTATIVES CANDIDATES.
The Federal Election Campaign Act of 1971 is
amended by adding at the end the following new title:
‘‘TITLE V—EXPENDITURE LIMI-
TATIONS AND CONTRIBUTION
LIMITATIONS FOR ELIGIBLE
HOUSE 
OF 
REPRESENTA-
TIVES CANDIDATES
‘‘SEC. 501. EXPENDITURE LIMITATIONS.
‘‘(a) IN GENERAL.—An eligible House of Representa-
tives candidate may not, in an election cycle, make expend-
itures aggregating more than $600,000, of which not more
than $500,000 may be expended in the general election
period.
‘‘(b) RUNOFF ELECTION AND SPECIAL ELECTION
AMOUNTS.—
‘‘(1) RUNOFF ELECTION AMOUNT.—In addition
to the expenditures under subsection (a), an eligible
House of Representatives candidate who is a can-
didate in a runoff election may make expenditures
aggregating not more than 20 percent of the general
election period limit under subsection (a).
‘‘(2) SPECIAL ELECTION AMOUNT.—An eligible
House of Representatives candidate who is a can-
didate in a special election may make expenditures
aggregating not more than $500,000 with respect to
the special election.
‘‘(c) CLOSELY CONTESTED PRIMARY.—If, as deter-
mined by the Commission, an eligible House of Represent-
atives candidate in a contested primary election wins that
primary election by a margin of 10 percentage points or
less, subject to the general election period limitation in
subsection (a), the candidate may make additional expend-
itures of not more than $150,000 in the general election
period.
‘‘(d) NONPARTICIPATING OPPONENT PROVISIONS.—
‘‘(1) LIMITATION EXCEPTION.—The limitations
imposed by subsections (a) and (b) do not apply in
the case of an eligible House of Representatives can-
didate if any other candidate seeking nomination or
election to that office—
‘‘(A) is not an eligible House of Represent-
atives candidate; and
‘‘(B) makes expenditures in excess of 80
percent of the general election period limitation
specified in subsection (a).
‘‘(2) REPORTING REQUIREMENT.—A candidate
for the office of Representative in, or Delegate or
Resident Commissioner to, the Congress—
‘‘(A) who is not an eligible House of Rep-
resentatives candidate; and
‘‘(B) who—
‘‘(i) receives contributions in excess of
50 percent of the general election period
limitation specified in subsection (a)(1); or
‘‘(ii) makes expenditures in excess of
80 percent of such limit;
shall report that the threshold has been reached to
the Clerk of the House of Representatives not later
than 48 hours after reaching the threshold. The
Clerk shall transmit a report received under this
paragraph to the Commission as soon as possible
(but no later than 4 working hours of the Commis-
sion) after such receipt, and the Commission shall
transmit a copy to each other candidate in the elec-
tion within 48 hours of receipt.
‘‘(e) 
EXEMPTION
FOR
CERTAIN
COSTS
AND
TAXES.—Payments for legal and accounting compliance
costs, and Federal, State, or local taxes with respect to
a candidate’s authorized committees, shall not be consid-
ered in the computation of amounts subject to limitation
under this section.
‘‘(f) EXEMPTION FOR FUNDRAISING COSTS.—
‘‘(1) Any costs incurred by an eligible House of
Representatives candidate or his or her authorized
committee in connection with the solicitation of con-
tributions on behalf of such candidate shall not be
considered in the computation of amounts subject to
limitation under this section to the extent that the
aggregate of such costs does not exceed 5 percent of
the limitation under subsection (a) or subsection (b).
‘‘(2) An amount equal to 5 percent of salaries
and overhead expenditures of an eligible House of
Representatives candidate’s campaign headquarters
and offices shall not be considered in the computa-
tion of amounts subject to limitation under this sec-
tion. Any amount excluded under this paragraph
shall be applied against the fundraising expenditure
exemption under paragraph (1).
‘‘(g) INDEXING.—The dollar amounts specified in
subsections (a), (b), (c), and (e) shall be adjusted at the
beginning of each calendar year based on the increase in
the price index determined under section 315(c), except
that, for the purposes of such adjustment, the base period
shall be calendar year 1998.
‘‘SEC. 502. CONTRIBUTION LIMITATIONS.
‘‘(a) ELIGIBLE HOUSE OF REPRESENTATIVES CAN-
DIDATE LIMITATION.—An eligible House of Representa-
tives candidate may not, with respect to an election cycle,
accept contributions aggregating in excess of $600,000.
‘‘(b) NONPARTICIPATING OPPONENT PROVISIONS.—
The limitations imposed by subsection (a) do not apply
in the case of an eligible House of Representatives can-
didate if any other candidate seeking nomination or elec-
tion to that office—
‘‘(1) is not an eligible House of Representatives
candidate; and
‘‘(2) receives contributions in excess of 50 per-
cent of the general election period limitation speci-
fied in section 501(a).
‘‘(c) TRANSFER PROVISION.—If an eligible House of
Representatives candidate transfers any amount from an
election cycle to a later election cycle, the limitation with
respect to the candidate under subsection (a) for the later
cycle shall be an amount equal to the difference between
the amount specified in that subsection and the amount
transferred.
‘‘(d) RUNOFF AMOUNT.—In addition to the contribu-
tions under subsection (a), an eligible House of Represent-
atives candidate who is a candidate in a runoff election
may accept contributions aggregating not more than 20
percent of the general election expenditure limit under sec-
tion 501(a) in the general election period.
‘‘(e) PERSONAL CONTRIBUTIONS.—
‘‘(1) IN GENERAL.—An eligible House of Rep-
resentatives candidate may not, with respect to an
election cycle, make contributions to his or her own
campaign totaling more than $50,000 from the per-
sonal funds of the candidate.
‘‘(2) LIMITATION EXCEPTION.—The limitation
imposed by paragraph (1) does not apply in the case
of an eligible House of Representatives candidate if
any other candidate—
‘‘(A) is not an eligible House of Represent-
atives candidate; and
‘‘(B) receives contributions in excess of 50
percent of the general election period limitation
specified in section 501(a).
‘‘(f) EXEMPTION
FOR CERTAIN COSTS.—(1) Any
amount—
‘‘(A) accepted by a candidate for the office of
Representative in, or Delegate or Resident Commis-
sioner to the Congress; and
‘‘(B) used for legal and accounting compliance
costs, or used to pay Federal, State, or local taxes
with respect to a candidate’s authorized committees
shall not be considered in the computation of
amounts subject to limitation under subsection (a).
‘‘(2) The balance of funds maintained for legal and
accounting compliance costs by the authorized committees
of an eligible House of Representatives candidate shall not
exceed 20 percent of the limit under subsection (a) at any
time.
‘‘(g) INDEXING.—The dollar amounts specified in
subsections (a) and (e) shall be adjusted at the beginning
of the calendar year based on the increase in the price
index determined under section 315(c), except that, for
the purposes of such adjustment, the base period shall be
calendar year 1998.’’.
TITLE 
II—PROVISIONS 
RELAT-
ING TO SOFT MONEY OF PO-
LITICAL PARTIES
SEC. 201. CONTRIBUTIONS TO POLITICAL PARTY COMMIT-
TEES.
(a) 
INDIVIDUAL
CONTRIBUTIONS
TO
STATE
PARTY.—Paragraph (1) of section 315(a) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(1)) is
amended by striking ‘‘or’’ at the end of subparagraph (B),
by redesignating subparagraph (C) as subparagraph (D),
and by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C) to political committees established and
maintained by a State committee of a political party
in any calendar year which, in the aggregate, exceed
$10,000; or’’.
(b) MULTICANDIDATE COMMITTEE CONTRIBUTIONS
TO STATE PARTY.—Paragraph (2) of section 315(a) of
the Federal Election Campaign Act of 1971 (2 U.S.C.
441a(a)(2)) is amended by striking ‘‘or’’ at the end of sub-
paragraph (B), by redesignating subparagraph (C) as sub-
paragraph (D), and by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) to political committees established and
maintained by a State committee of a political party
in any calendar year which, in the aggregate, exceed
$10,000; or’’.
(c) INCREASE IN OVERALL LIMIT.—Paragraph (3) of
section 315(a) of the Federal Election Campaign Act of
1971 (2 U.S.C. 441a(a)(3)) is amended by adding at the
end the following new sentence: ‘‘The limitation under this
paragraph shall be increased (but not by more than
$5,000) by the amount of contributions made by an indi-
vidual during a calendar year to political committees
which are taken into account for purposes of paragraph
(1)(C).’’.
SEC. 202. PROVISIONS RELATING TO NATIONAL, STATE,
AND LOCAL PARTY COMMITTEES.
(a) EXPENDITURES BY STATE COMMITTEES IN CON-
NECTION
WITH
PRESIDENTIAL
CAMPAIGNS.—Section
315(d) of the Federal Election Campaign Act of 1971 (2
U.S.C. 441a(d)) is amended by inserting at the end the
following new paragraph:
‘‘(4) A State committee of a political party, including
subordinate committees of that State committee, shall not
make expenditures in connection with the general election
campaign of a candidate for President of the United
States who is affiliated with such party which, in the ag-
gregate, exceed an amount equal to 4 cents multiplied by
the voting age population of the State, as certified under
subsection (e). This paragraph shall not authorize a com-
mittee to make expenditures for audio broadcasts (includ-
ing television broadcasts) in excess of the amount which
could have been made without regard to this paragraph.’’.
(b) CONTRIBUTION
AND
EXPENDITURE
EXCEP-
TIONS.—(1) Section 301(8)(B) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amend-
ed—
(A) in clause (xi), by striking ‘‘direct mail’’ and
inserting ‘‘mail’’; and
(B) by repealing clauses (x) and (xii).
(2) Section 301(9)(B) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431(9)(B)) is amended by
repealing clauses (viii) and (ix).
(c) SOFT MONEY OF COMMITTEES OF POLITICAL
PARTIES.—(1) Title III of the Federal Election Campaign
Act of 1971, as amended by section 102, is further amend-
ed by adding at the end the following new section:
‘‘POLITICAL PARTY COMMITTEES
‘‘SEC. 324. (a) Any amount solicited, received, or ex-
pended directly or indirectly by a national, State, district,
or local committee of a political party (including any sub-
ordinate committee) with respect to an activity which, in
whole or in part, is in connection with an election to Fed-
eral office shall be subject in its entirety to the limitations,
prohibitions, and reporting requirements of this Act.
‘‘(b) For purposes of subsection (a)—
‘‘(1) Any activity which is solely for the purpose
of influencing an election for Federal office is in
connection with an election for Federal office.
‘‘(2) Except as provided in paragraph (3), any
of the following activities during a Federal election
period shall be treated as in connection with an elec-
tion for Federal office:
‘‘(A) Voter registration and get-out-the-
vote activities.
‘‘(B) Campaign activities, including broad-
casting, newspaper, magazine, billboard, mass
mail, and newsletter communications, and simi-
lar kinds of communications or public advertis-
ing that—
‘‘(i) are generic campaign activities; or
‘‘(ii) identify a Federal candidate re-
gardless of whether a State or local can-
didate is also identified.
‘‘(C) The preparation and dissemination of
campaign materials that are part of a generic
campaign activity or that identify a Federal
candidate, regardless of whether a State or
local candidate is also identified.
‘‘(D) Development and maintenance of
voter files.
‘‘(E) Any other activity affecting (in whole
or in part) an election for Federal office.
‘‘(3) The following shall not be treated as in
connection with a Federal election:
‘‘(A) Any amount described in section
301(8)(B)(viii).
‘‘(B) Any amount contributed to a can-
didate for other than Federal office.
‘‘(C) Any amount received or expended in
connection with a State or local political con-
vention.
‘‘(D) Campaign activities, including broad-
casting, newspaper, magazine, billboard, mass
mail, and newsletter communications, and simi-
lar kinds of communications or public advertis-
ing that are exclusively on behalf of State or
local candidates and are not activities described
in paragraph (2)(A).
‘‘(E) Administrative expenses of a State or
local committee of a political party, including
expenses for—
‘‘(i) overhead;
‘‘(ii) staff (other than individuals de-
voting a substantial portion of their activi-
ties to elections for Federal office);
‘‘(iii) meetings; and
‘‘(iv) conducting party elections or
caucuses.
‘‘(F) Research pertaining solely to State
and local candidates and issues.
‘‘(G) Development and maintenance of
voter files other than during a Federal election
period.
‘‘(H) Activities described in paragraph
(2)(A) which are conducted other than during
a Federal election period.
‘‘(I) Any other activity which is solely for
the purpose of influencing, and which solely af-
fects, an election for non-Federal office.
‘‘(4) For purposes of this subsection, the term
‘Federal election period’ means the period—
‘‘(A) beginning on June 1, of any even-
numbered calendar year (April 1 if an election
to the office of President occurs in such year),
and
election and ending on the date of the next general
election.’’.
TITLE V—EFFECTIVE DATE
SEC. 501. EFFECTIVE DATE.
Except as otherwise provided in this Act, the amend-
ments made by, and the provisions of, this Act shall take
effect on the date of the enactment of this Act but shall
not apply with respect to activities in connection with any
election occurring before January 1, 1999.
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