Further, there was a general feeling that the Act was not being enforced and that a law not enforced is, in effect, no law at all.

The bill S. 372, is a multi-purpose measure designed to restore order and control within the elective process with reasonable and enforceable regulations of the use of money in politics. The bill was referred both to the Committee on Commerce and the Committee on Rules and Administration so that each committee could exercise fully and properly the powers and jurisdiction conferred upon it by the Standing Rules of the Senate.

In brief, the bill would repeal the equal time requirements of section 315 of the Communications Act of 1934 for candidates for all Federal elective offices, replace old limitations on expenditures for use of the media with new overall limits on expenditures for all purposes, impose new limitations on contributions to candidates, total limits on contributions by individuals, and create an independent Federal agency to oversee and enforce all provisions..

COMMITTEE ACTION

With the Federal Election Campaign Act of 1971, and the bill S. 372, as reported from the Commerce Committee, as the fundamentals, the Committee on Rules and Administration has attempted to overhaul the entire financial process of political campaigns for Federal office, and the following narrative is intended to explain the actions taken by the Committee and its purposes in so doing.

The Committee believes that the title of the bill should be changed so as to reflect changes in Public Law 92-225, short of repeal. Accordingly, it is recommended that the title be amended to read "Federal Election Campaign Act Amendments of 1973."

The Committee concurs with the Commerce Committee that salutary results would be derived from excluding Presidential and Vice Presidential candidates from the application of section 315 of the Communications Act of 1934, but believes that the exclusion should be extended to include all Federal elective offices. Thus, networks would have the freedom to schedule appearances of candidates at all levels of the Federal elective structure to debate or discuss public issues.

The change from "by any person" to "by or on behalf of any person" with respect to charges for use of broadcasting stations gives more specific control to the candidate over the manner in which his expenditure limitation is used and more definitive methods for determining whether the use of broadcast facilities is incurred by the candidate or his agents. Certification by the candidate or his authorized representative that the payment of any charges for such use will not result in over-expenditure of lawful limits is still required.

Individual states may impose limits upon expenditures by candidates for nomination or election to state office, and station licensees would be required to receive certification from any such candidates against whom any charges are sought to be levied.

The Committee recommends amending the Communications Act of 1934 to require station licensees to announce, without charge, in advertisements soliciting political contributions for a candidate or political committee that reports filed by the person paying for the advertisement are available from the Federal Election Commission,

and to require the station licensee to maintain a record of any political. advertisement broadcast, for a period of two years thereafter.

The Campaign Communications Reform Act, incorporated in Title I of the Federal Election Campaign Act of 1971, is repealed.

The Committee has adopted new definitions of the term "committee” to distinguish national, state, and local committees, party committees, and independent committees without losing control over the reporting requirements of or limitations imposed upon them.

The term "expenditure" was redefined so as to extend the coverage of the bill over non-election year activities for accounting purposes. The phrase "by or on behalf of a candidate" (and its corollary "to or for the benefit of a candidate") appears throughout S. 372. The new Section 614 (c) (3) of Title 18, United States Code, is intended to make it plain that only activities by a true agent of a candidate are to be considered as being undertaken on his behalf. Activities by individuals or groups acting independently on their own initiative and in their own name are not activities on behalf of a candidate. No single talismanic phrase can delineate the dividing line between candidates' agents and independent individuals or groups whose activities favor a candidate. But the Committee believes that activities of established independent groups (such as newspapers, radio stations, labor organizations, business and farm associations) should be presumed to be independent activity (which presumption could be overcome by concrete evidence of candidate direction or control) and that activities of individuals and ad hoc groups favorable to a candidate should be presumed to be activity on the candidate's behalf (subject to rebuttal by evidence showing that there had been no substantial contact with the candidate). The Commission has the authority under this Act to promulgate necessary rules and regulations to prevent abuses of this section.

A major change in the existing law has been brought about by the adoption of amendments in committee relating to the filing of reports and statements by candidates and political committees.

First, a Federal Election Commission, instead of three supervisory officers, would result in a two-thirds reduction in the number of reports required to be filed by committees supporting candidates for nomination or election to various Federal offices.

Second, reports will no longer be required to be filed on the 15th and 5th days prior to the date of an election. Instead reports would be required on the 10th day before an election, reducing the number of special, late pre-election reports by half.

Third, committees which support candidates in Presidential preference primaries, congressional primaries, and special and general elections are required by present law to file a great number of separate reports with appropriate supervisory officers. The bill would permit such Committees to request permission of the Commission to file monthly reports and statements. This method would provide timely and thorough disclosure without imposition of tco great an administrative burden upon committees.

Other lesser changes, as reflected in the section-by-section analysis of this report, will further improve the accounting procedures of this bill. The Committee has approved an entirely new section concerning campaign advertising published in newspapers, magazines, or other periodical publications and printed materials. Identification of the

person causing the political publication is required and records of all such publications shall be maintained for public inspection for two

years.

Both the Commerce Committee and the Committee on Rules and Administration recommend the creation of an independent agency or body to oversee and enforce the provisions of existing law and the amendments incorporated into this bill.

The Committee on Rules and Administration believes that a Federal Election Commission composed of seven members with primary civil and criminal enforcement power, would be a distinct and desirable improvement over the existing system which relies in part upon the supervisory officers to forward apparent violations of the law to the Department of Justice, and to a greater degree, upon the Department to initiate and prosecute actions against violators.

A separate entity, not so closely aligned with the Chief Executive of the United States, or with the Congress, and charged with the duty of carrying out the responsibilities given it by law can be expected to carry out those obligations quickly, efficiently, and impartially.

The President is the appointing authority and would appoint all members of the Commission. However, the Congress would participate in the process by recommending to the President a number of individuals from whom the President would choose the designated appointees. After the initial period of staggered terms has been completed, the term of office for Commissioners would be seven years and members could be reappointed only once.

The Federal Election Commission would have a General Counsel, an Executive Director, and such other personnel as may be necessary to perform its duties. Its budgets, reports, recommendations, or comments would be submitted to the President and also to the Congress.

It would cooperate with and avail itself of the assistance and facilities of the General Accounting Office and the Department of Justice. Any violation of the provisions set forth in this bill and in certain related provisions of the criminal code would be prosecuted by the Department of Justice only after consultation with, and with the consent of, the Commission.

In order to establish more uniform accounting and reporting procedures, the Committee recommends a provision to require each candidate to designate a central campaign committee. A candidate for the office of President or Vice President would be permitted to designate a national central campaign committee and not more than one political committee in each state as his state campaign committee. No political committee could be designated as the central campaign committee of more than one candidate, except for the nominees for President and Vice President of the same party.

Central campaign committees would file statements and reports with the Federal Election Commission. Other political committees which are not central campaign committees, but which are established for the purpose of, or which are accepting contributions or making expenditures on behalf of a candidate, shall file their statements and reports with the central campaign committee instead of the Commission.

Each candidate and political committee is required to designate one or more national or state banks as depositories in which all campaign contributions to the candidate shall be deposited and from which all expenditures shall be drawn by check.

National and state banks are recommended because they are insured by the Federal government and are subject to inspection by the Federal government and because they offer checking account services. Petty cash funds could be maintained by a political committee, but no expenditure in excess of $100 could be made from such a fund for any single transaction, except by check drawn on the account of the campaign depository.

The Federal Election Campaign Act of 1971 amended section 610 of Title 18 of the United States Code so as to allow corporations and labor organizations to establish, administer, and solicit contributions to, a separate, segregated fund to be utilized for political purposes.

However, section 611 of Title 18, United States Code, prohibits such activities by government contractors-those who are negotiating with or performing services for the United States.

Since a substantial number of corporations and labor organizations are government contractors, the law appears to discriminate against them. The Committee amendment is intended, in the interest of fairness, to allow all corporations and labor organizations to establish separate segregated funds and to solicit voluntary contributions to those funds. But, no such fund may utilize money secured by force, job discrimination, or coercion, or use dues, fees, or other monies required as a condition of employment or membership, etc. Direct or reimbursable corporate or labor contributions continue to remain unlawful under sections 610 and 611 of title 18, United States Code. These changes will result in the creation of a broader base of contributors.

Existing law imposes a limitation upon expenditures by candidates for use of communications media, but does not set an overall limit upon the amount a candidate may spend for a particular election campaign.

Political financing during 1972 has caused changes in attitude toward limitations on both contributions and expenditures. Therefore, the Committee has adopted specific limitations upon the amount which a candidate may spend or which may be spent on his behalf for primary or primary run-off elections, and for special and general elections.

Candidates for nomination for election to the office of United States Senator, Representative-at-large, Delegate, or Resident Commissioner may not expend in excess of the greater of fifteen cents times the voting age population of the geographic area in which the election is to be held, or $125,000. Candidates for nomination for election to the office of U.S. Representative in states entitled to more than one Repzesentative may not expend in excess of the greater of fifteen cents times the voting age population of the geographic area, or $90,000.

With respect to general or special elections, the above figures are changed from 15¢ to 20¢, and the base figure is changed from $125,000 to $175,000, except for the office of Representative in the states which are entitled to more than one Representative, in which case the base remains at $90,000.

S. Rept. 310, 93-1-2

Concerning candidates for nomination for election to the office of President of the United States, the limitation upon expenditures by or on behalf of such candidates is the same in each state as may be spent in a primary or run-off primary by a candidate for nomination for election to the office of United States Senator in that state.

Nominees for the office of President may spend in each state the amount which a candidate in that State for election to the office of United States Senator may spend.

Limitations imposed by this bill shall apply separately to each primary, run-off primary, special, or general election in which a candidate participates. Expenditures made on behalf of any candidate shall be deemed to have been expended by such candidate, and expenditures made by or on behalf of any candidate for Vice President shall be attributed to the candidate for President with whom he is running. These limitations and attributions are intended to prevent efforts to avoid or circumvent the ceilings on expenditures which the Committee has approved as reasonable and enforceable.

In 1971, when the Committee was considering S. 382, the predecessor to the present bill, it was generally agreed that limitations upon contributions could be abolished in favor of full and accurate disclosure. Subsequent developments during 1972 have revealed, however, that some donors looked upon the repeal as a license to pour hundreds of thousands of dollars, indeed millions of dollars, into the campaigns of selected candidates.

Freedom of expression, whether by the spoken or written word, or by other means, does not mean freedom to abuse or overwhelm the privilege. Surely, in the interest of protecting the integrity of the elective process, there is a right to exercise reasonable control over the amount of money which may be poured into an election campaign. In order to encourage a greater number of citizens to support the candidates and parties of their choice, laws were passed offering tax credits or deductions for political contributions. A dollar check-off provision was added to the Revenue Act of 1971. These benefits were intended to relieve candidates of the distasteful and possibly obligating concepts associated with the acceptance of large contributions from individuals or groups who have or could have special interests.

These programs have not resulted, as of this time, in a flow of money from contributors sufficient to obviate the need for large contributions and, in the interest of the public, the committee has agreed to re-establish limitations upon contributions from individuals and others as follows:

Individuals and political committees (other than party committees, as defined by the bill) may not contribute more than $5,000 to a candidate for nomination or election to the Congress, or more than $15,000 to a candidate for nomination or election to the office of President.

Individuals (including their spouses and children under the age of 18) may not give more than $100,000 during a calendar year to all candidates and all political committees. Political committees are not bound by the $100,000 limit.

The Committee realizes that the imposition of limits upon contributions by any person, as defined by this Act, could encourage the establishment of multiple committees supporting a single candidate. Such a device could be used to exceed the limits set by the bill. These com