I
104TH CONGRESS
1ST SESSION
H. R. 2573
To amend the Federal Election Campaign Act of 1971 to eliminate PAC
contributions to individual House of Representatives candidates, to pro-
vide a tax credit and tax deduction for contributions to such candidates,
to provide for voluntary expenditure limitations in House of Representa-
tives elections, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 1, 1995
Mr. REGULA introduced the following bill; which was referred to the Commit-
tee on House Oversight, and in addition to the Committees on Ways and
Means and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To amend the Federal Election Campaign Act of 1971 to
eliminate PAC contributions to individual House of Rep-
resentatives candidates, to provide a tax credit and tax
deduction for contributions to such candidates, to provide
for voluntary expenditure limitations in House of Rep-
resentatives elections, 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 ‘‘Congressional Cam-
paign and Administrative Reform Act of 1995’’.
SEC. 2. BAN ON CONTRIBUTIONS BY MULTICANDIDATE PO-
LITICAL COMMITTEES TO CANDIDATES IN
HOUSE OF REPRESENTATIVES ELECTIONS.
Section 315(a)(2)(A) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(2)(A)) is amended
by inserting after ‘‘$5,000’’ the following: ‘‘, except that
in the case of a candidate for the office of Representative
in, or Delegate or Resident Commissioner to, the Con-
gress, and the authorized committees of such a candidate,
a multicandidate political committee may not make any
contribution’’.
SEC. 3. INCOME TAX CREDIT FOR CONTRIBUTIONS TO
HOUSE OF REPRESENTATIVES 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 22 the following new
section:
‘‘SEC. 23. CONTRIBUTIONS TO HOUSE OF REPRESENTA-
TIVES CAMPAIGNS.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
all House of Representatives campaign contributions made
by the individual.
‘‘(b) LIMITATION
ON AMOUNT
OF CREDIT.—The
credit allowed by subsection (a) for a taxable year shall
not exceed $50 ($100 in the case of a joint return).
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) HOUSE OF REPRESENTATIVES CAMPAIGN
CONTRIBUTION.—
‘‘(A) IN GENERAL.—The term ‘House of
Representatives campaign contribution’ means
a contribution or gift of money, payment of
which is made during the taxable year, to an in-
dividual who is a candidate for nomination or
election to the office of Representative in, or
Delegate or Resident Commissioner to, the Con-
gress in any primary, general, or special elec-
tion, and which—
‘‘(i) 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
‘‘(ii) is solely for use by the recipient
to further his candidacy for nomination or
election to such office.
‘‘(B) STATE.—The term ‘State’ includes
the District of Columbia, any possession of the
United States, and the Commonwealth of Puer-
to Rico.
‘‘(2) CANDIDATE.—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)(A); 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 22 the following new item:
‘‘Sec. 23. Contributions to House of Representatives campaigns.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions paid after Decem-
ber 31, 1995, in taxable years ending after that date.
SEC. 4. INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO
HOUSE OF REPRESENTATIVES CAMPAIGNS.
(a) GENERAL RULE.—Part VII of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 (relating
to additional itemized deductions for individuals) is
amended by inserting after section 217 the following new
section:
‘‘SEC. 218. CONTRIBUTIONS TO HOUSE OF REPRESENTA-
TIVES CAMPAIGNS.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed as a deduction any House of Rep-
resentatives campaign contribution which is made by such
individual.
‘‘(b) LIMITATIONS.—
‘‘(1) AMOUNT ALLOWED AS CREDIT.—This sec-
tion shall not apply with respect to any amount
which is allowed as a credit under section 23 (relat-
ing to contributions to House of Representatives
campaigns).
‘‘(2) AMOUNT OF DEDUCTION.—The deduction
allowed by subsection (a) for a taxable year shall not
exceed an aggregate of $250 ($500 in the case of a
joint return).
‘‘(c) DEFINITIONS.—Terms used in this section
which are also used in section 23 (relating to contributions
to House of Representatives campaigns) shall have the re-
spective meanings given such terms by section 23(c).’’
(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 House of Representatives cam-
paigns.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions paid after Decem-
ber 31, 1995, in taxable years ending after that date.
SEC. 5. VOLUNTARY EXPENDITURE LIMITATIONS AND FREE
BROADCAST 
TIME 
FOR 
HOUSE 
OF 
REP-
RESENTATIVES GENERAL ELECTIONS.
The Federal Election Campaign Act of 1971 (2
U.S.C. 431 et seq.) is amended by adding at the end the
following new title:
‘‘TITLE V—VOLUNTARY EXPENDITURE LIMITA-
TIONS AND FREE BROADCAST TIME FOR
HOUSE OF REPRESENTATIVES GENERAL
ELECTIONS
‘‘SEC. 501. As used in this title, the term—
‘‘(1) ‘eligible candidate’ means a candidate who
is eligible under section 502 to receive free broadcast
time;
‘‘(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
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 free broadcast
time under section 315(c) of the Communications Act of
1934 (47 U.S.C. 315(c)), a candidate for the office of
Representative in, or Delegate or Resident Commissioner
to, the Congress who qualifies for the general election bal-
lot under State law shall, not later than 7 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;
‘‘(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
‘‘(4) will furnish campaign records, evidence of
contributions, and other appropriate information to
the Commission.
‘‘(b) To be eligible to receive free broadcast time
under section 315(c) of the Communications Act of 1934
(47 U.S.C. 315(c)), a candidate for the office of Rep-
resentative 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 determin-
ing the amount of contributions received by a candidate
and the candidate’s authorized committees—
‘‘(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 (1).
‘‘SEC. 503. (a) A candidate who receives free broad-
cast time under section 315(c) of the Communications Act
of 1934 (47 U.S.C. 315(c)) for a general election shall
not make expenditures during that election cycle from the
personal funds of such candidate, which, in the aggregate,
exceed $40,000.
‘‘(b) Except as provided in subsection (c) and section
504, a candidate who receives free broadcast time under
section 315(c) of the Communications Act of 1934 (47
U.S.C. 315(c)) for a general election shall not make ex-
penditures during the election cycle that cover such gen-
eral election which, in the aggregate, exceed $500,000.
‘‘(c) A candidate who receives free broadcast time
under section 315(c) of the Communications Act of 1934
(47 U.S.C. 315(c)) and who participates in a primary run-
off election may make additional expenditures for such
primary runoff election which in the aggregate do not ex-
ceed $150,000.
‘‘(d) An eligible candidate may make expenditures
without regard to the limitations set forth in this section
if any candidate in the same general election makes aggre-
gate expenditures during the election cycle which exceed
the amount of the limitation set forth in subsection (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 1996.
‘‘SEC. 504. An eligible candidate shall be entitled to
receive free radio and television broadcast time under sec-
tion 315(c) of the Communications Act of 1934 (47
U.S.C. 315(c)).’’.
SEC. 6. ALLOCATION TO HOUSE OF REPRESENTATIVES
CANDIDATES OF FREE BROADCAST TIME FOR
POLITICAL ADVERTISING.
(a) CONDITION
OF LICENSE RENEWAL.—Section
309(h) of the Communications Act of 1934 (47 U.S.C.
309(h)) is amended by inserting before the period at the
end thereof the following: ‘‘; and (4) every broadcast sta-
tion license issued under this Act shall be subject to the
free broadcast time obligations imposed by section
315(c)’’.
(b) FREE TIME OBLIGATIONS.—Section 315 of the
Communications Act of 1934 (47 U.S.C. 315) is amend-
ed—
(1) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c)(1) Each licensee for a broadcasting station shall
annually make available free broadcast time for political
advertising in accordance with the requirements of this
subsection. The Commission shall not renew the license
of any licensee who substantially fails or refuses to comply
with the requirements of this subsection, but such licensee
shall not be subject to any other sanction or remedy for
such failure or refusal.
‘‘(2) A licensee subject to this subsection shall allot
free broadcast time to each qualified political candidate
in accordance with the following standards:
‘‘(A) Such licensee shall allot an equal amount,
but not less than 2 hours, of free broadcast time
each even-numbered year to each qualified political
candidate in a statewide or national election. In the
case of a station whose market does not encompass
all of a congressional district, such licensee may ap-
portion to each qualified candidate from such dis-
trict a fraction of such 2 hours that is equal to the
fraction of such district’s population that resides
within such market, as determined in accordance
with regulations prescribed by the Commission.
‘‘(B) The free broadcast time allotted to any
candidate under subparagraph (A) shall be com-
posed of units of varying lengths of not more than
5 minutes nor less than 10 seconds, as determined
by negotiation between such organization and the li-
censee.
‘‘(C) The broadcast time allotted by any li-
censee shall be allotted so that—
‘‘(i) at least one-half is broadcast during
the hours of 7:00 p.m. to 10:00 p.m.;
‘‘(ii) during any election year, at least two-
thirds is broadcast during the 2 months imme-
diately preceding election day and at least one-
half is broadcast during the 3 weeks imme-
diately preceding election day;
‘‘(iii) each qualified candidate is allotted
free broadcast time that is comparable, by time
of day and day of week, to the time allotted to
other qualified candidates for the same office;
and
‘‘(iv) no broadcaster shall allot more than
41⁄2 hours per week of free broadcast time for
political advertising and, if the amount of time
required to or allotted by this paragraph would
exceed 41⁄2 hours, the time required to be allot-
ted each qualified candidate shall be reduced
proportionately.
‘‘(D) The broadcast time shall be used solely
for programming consisting of unedited segments in
which the candidate speaks directly to the audience.
‘‘(3) A candidate shall be treated as a qualified politi-
cal candidate for purposes of paragraph (2)(A) if the can-
didate is an eligible candidate for purposes of section 501
of the Federal Election Campaign Act of 1971.
‘‘(4) A licensee allots free broadcast time as required
by this subsection by broadcasting statements without re-
muneration or compensation in any form, whether by pub-
lic or private funds, tax deduction or credit, or otherwise.
‘‘(5) Nothing in this subsection, and no use of free
broadcast time allotted under this subsection, shall be con-
strued to restrict or otherwise affect the purchase of ad-
vertising time under subsection (b) of this section.’’.
SEC. 7. BAN ON 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
AMOUNTS PAID FOR MIXED POLITICAL ACTIVITIES
‘‘SEC. 323. (a) Any payment by the national commit-
tee of a political party or a State committee of a political
party for a mixed political activity—
‘‘(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.
‘‘(b) As used in this section, the term ‘mixed political
activity’ means, with respect to a payment by the national
committee of a political party or a State committee of a
political party, an activity, such as a voter registration