1. INVESTIGATIONS-SPECIAL COMMITTEE TO INVESTIGATE CAMPAIGN EXPENDITURES FOR THE HOUSE OF REPRESENTATIVES, 1972, PURSUANT TO HOUSE RESOLUTION 819, 92D CONGRESS

By resolution the House has created a special campaign expenditures committee. This committee is directed to investigate and report to the House not later than January 11, 1973, violations of the Federal Election Campaign Act of 1971, the Hatch Political Activities Act, as amended, and any statute or legislative act of the United States or of any State within which a candidate is seeking nomination or reelection to the House of Representatives, the violation of which Federal or State statute, or statutes, would affect the qualification of a Member of the House of Representatives within the meaning of article I, section 5, of the Constitution of the United States. (February 17, 1972, H. Res. 819, 92d Cong., 2d sess.)

2. ELECTION

CONTESTS-COMMITTEE

ON HOUSE

SUBCOMMITTEE ON ELECTIONS

ADMINISTRATION,

A standing committee of the House of Representatives, the Committee on House Administration, consisting of 25 members has jurisdiction over the following under rule XI of the Rules of the House of Representatives:

Measures relating to the election of the President, Vice President, or Members of Congress; corrupt practices; contested elections; credentials and qualifications and Federal elections generally.

A Subcommittee on Elections of the Committee on House Administration reports to the full Committee on House Administration and the full committee reports to the House which has final determination of election contests.

Congress has passed a statute providing a manner for contesting an election of any Member of the House of Representatives of the United States. The statutory procedure to be followed in such a contest is set forth in Public Law 91-138; 83 Stat. 284, the text of which begins on page 36.

In Roudebush v. Hartke, 405 U.S. 15 (1972), the U.S. Supreme Court held that it is a valid exercise of a State's power under art. I, § 4 of the Constitution (authorizing the States to prescribe the times, places and manner of holding elections), to order a recount in a contested election for U.S. Senator and that such a recount does not prevent the Senate from making an independent evaluation of the election any more than did the original count by the State of the ballots cast.

F. CORRUPT PRACTICES AND POLITICAL ACTIVITIES

1. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AND OTHER PROVISIONS REGULATING CAMPAIGN FINANCING

On February 7, 1972, a new Federal campaign financing law, the Federal Election Campaign Act of 1971, Public Law 92-225, 86 Stat. 3, was enacted.

The new law became effective April 7, 1972 (60 days after its enactment) (P.L. 92-225, §406).

The new law specifically repeals the Federal Corrupt Practices Act, 1925 (2 U.S.C. 241-256) (P.L. 92-225, §405).

The text of the new law is divided into four titles. The specific requirements of the new law are discussed in detail below, but summarizing the general arrangement of the new law:

Title I contains the provisions which regulate the use of communications facilities, both broadcast and nonbroadcast. The only campaign spending limitations which are now imposed on candidates by the Federal law are set forth in Title I.

Title II contains the provisions which amend various provisions of the Federal Criminal Code (18 U.S.C.) which deal with the financing of candidates for Federal elective office. The only limitations on contributions imposed by the new law are set forth in Title II. Title II also contains the provisions which regulate contributions by corporations and labor unions, as well as the provisions which prohibit those having U.S. Government contracts from making political contributions.

Title III is the disclosure title and requires detailed accounting of political financing to reveal the sources of political financing and how the money is spent. Title III also contains the requirements for the organization of political committees, the officers they must have and how they must register before accepting contributions and making expenditures.

Title IV contains provisions on other subjects and includes the requirement that certain Federal regulatory agencies issue rules governing the extension of credit to political candidates. Title IV contains prohibitions against the use, for political purposes, of money appropriated to carry out the Economic Opportunity Act of 1964. Title IV also contains other provisions on miscellaneous subjects.

The discussion in this report of the requirements of the Federal law respecting the conduct of elections, and the financing of political campaigns, for the office of U.S. Senator is divided into the same four major categories as is the new law. However, the discussion summarizing the legal requirements is set forth topically and includes both the new law and the relevant provisions of the existing law which were left unchanged by the new law. The section references given below are all P.L. 92-225 unless otherwise indicated.

Title I-Regulation of communications media use for political

purposes

Title I of the new law contains detailed provisions which regulate both the candidate and the media in the use of communications media for political purposes. The following summarizes some of these provisions.

Definition. For purposes of Title I of the new law, the terms are defined as follows:

(1) The term "communications media" means broadcasting stations, newspapers, magazines, outdoor advertising facilities, and telephones, but, with respect to telephones, spending or an expenditure shall be deemed to be spending or an expenditure for the use of communications media only if such spending or expenditure is for the cost of telephones, paid telephonists, and automatic telephone equipment, used by a candidate for Federal elective office to communicate with potential voters (excluding any costs of telephones incurred by a volunteer for use of telephones by him) (§ 102 (1)).

(2) The term "broadcasting station" has the same meaning as such term has under section 315(f) of the Communications Act of 1934.

(3) The term "Federal elective office" means the office of the President of the United States, or of Senator or Representative in, or Resident Commissioner or Delegate to, the Congress of the United States (and for purposes of section 103(b) such term includes the office of Vice President).

(4) The term "legally qualified candidate" means any person who (A) meets the qualifications prescribed by the applicable laws to hold the Federal elective office for which he is a candidate, and (B) is eligible under applicable State law to be voted for by the electorate directly or by means of delegates or electors. (5) The term "voting age population" means resident population, eighteen years of age and older.

(6) The term "State" includes the District of Columbia and the Commonwealth of Puerto Rico.

Candidates' legal right to use the communications media

Broadcast media.-A broadcast licensee is required to allow a candidate "reasonable" access to, or to permit the purchase of reasonable amounts of time for, the use of a broadcasting station by a legally qualified candidate for Federal elective office on behalf of his candidacy. The broadcast licensee who fails to make such time available for political messages is subject to having his broadcast license revoked under 47 U.S.C. § 312(a) (§ 103(a) (2)).

The rights given to candidates in the law to purchase broadcast time are in addition to the rights the candidates already had under the Communications Law, 47 U.S.C. § 315(a), which are sometimes referred to as the "equal opportunities" and sometimes as the "equal time" requirements.

The "equal opportunities" or "equal time" requirements provide that broadcasting stations allowing time to a candidate for public office must afford all other candidates for the same office an equal amount of time, and such stations shall have no power of censorship over material broadcast by candidates. Appearance by a candidate on any (1) bona fide newscast, (2) bona fide news interview, (3) bona fide news documentary (if his appearance is incidental to the subject covered by the news documentary), or (4) on-the-spot coverage of bona fide news events (including but not limited to political conventions and activities incidental thereto), shall not be deemed to be use of a broadcasting station within the meaning of this provision. Charges made for such broadcasts shall not exceed the charges made for comparable use of broadcasting stations for other programs (47 U.S.C. § 315). Newspapers and magazines.-There are no requirements in the Federal law that compel newspapers and magazines to sell space to candidates for Federal office.

Maximum rates which the media may charge for use in political campaigns

Broadcast media. A broadcasting station may not charge a legally qualified candidate in connection with his campaign for nomination or election to the office of U.S. Representative in excess of the following

rates:

(1) during the 45 days preceding the date of a primary or primary runoff election, and during the 60 days preceding a general

or special election in which such person is a candidate, the lowest unit charge of the station for the same class and amount of time for the same period;

(2) at any other time, the charges made for comparable use of such station by other users (§ 103 (a) (1) amending 47 U.S.C. § 315(b)).

Newspapers and magazines.-Publishers of newspapers and magazines may not charge a legally qualified candidate in connection with his campaign for nomination or election to the office of U.S. Representative at a rate which exceeds their charges for comparable use of such space for other purposes (§ 103(b)).

Limitations on the amount which may be spent for communications media

use

No legally qualified candidate for nomination or election to the office of U.S. Representative may spend in any election (whether it is a primary, runoff primary, general or special election) for use of communications media on behalf of his candidacy, a total amount which is in excess of the greater of (1) 10 cents multiplied by the voting age population of the geographic area which he seeks to represent in the House of Representatives or, (2) $50,000.

Of the total amount which may be spent for communications media use, not more than 60 per centum may be spent for the use of broadcasting on behalf of his candidacy. Apart from this restriction, the candidate may apportion his spending allowance in any way he deems best, spending all, or part of it, for any of the other media items listed in the definition of "communications media" for purposes of Title I of P.L. 92-225 (§ 201(1)).

For purposes of the spending limitations, spending and charges for use of communications media include not only direct charges of the media but also agents' commissions allowed the agent by the media (§ 104(a) (7)).

For purposes of the media spending limitations, each primary, runoff primary, general or special election is treated as a separate election and a candidate may spend up to the legal maximum amount in each such election in which he is a candidate for the U.S. House of Representatives. (Note: There are separate provisions for spending limits for candidates for President in presidential primaries (§ 104(a) (3)).

In the event that campaign costs rise in future years due to inflation, the amount which may be spent by candidates in future elections is subject to upward revision in the same proportion as the Consumer Price Index increases over the base period which is the calendar year

1970.

These cost-of-living increase provisions, as explained in the Conference Report, H. Rept. No. 92-752, on S. 382, means that each communications media expenditure limitation computed under § 104(a) (1)(A) would be increased in proportion to increases in the Consumer Price Index, with the base period being the calendar year 1970. The first year in which an increase could occur would be 1972. The example given in the Conference Report, supra, is as follows:

For example, since the Consumer Price Index for the base period (1970) is 100, if the Consumer Price Index for 1971 was 104.3, each limitation under section 104 (a) (1) (A) would be increased by 4.3 percent. Thus, in a State which for 1971 had a voting age population of 400,000, the overall media expenditure limitation for senatorial candidates would be the greater of—

(A) $41,720 (the product of 10 cents times 400,000, increased by 4.3 percent), or

(B) $52,150 ($50,000 increased by 4.3 percent).

The broadcast limitation in this example would be $31,290 (60 percent of $52,150 overall limit). The primary election limits would be identical to the limits for the general election: $52,150 for all media expenditures, and $31,290 for broadcast expenditures. (Report, supra, at page 25.)

Attribution to candidate of amounts spent by others on behalf of his candidacy

For purposes of the spending limitations, amounts spent for the use of communications media on behalf of a legally qualified candidate for U.S. Representative shall be deemed to have been spent by the candidate (§ 104(a)(6)).

No owner of a communications media may make any charge for the use by, or on behalf of, any legally qualified candidate for nomination or election as U.S. Representative unless the candidate certifies in writing to such owner making the charge that the purchase from the media will not violate the candidate's legal spending limits (§ 104 (b) as to newspapers, magazines and outdoor advertising facilities and § 104 (c) as to broadcast facilities).

Violations of these requirements subject the media to penalties of fine and/or imprisonment (§ 104 (e) as to broadcast media; § 106 as to other media).

Title II-Title 18, United States Code, provisions regulating conduct of Federal elections, as amended by P.L. 92–225

§ 591-Definitions.-The definitions in § 591 were amended by P.L· 92-225 to expand the coverage of the Federal law, as to the elections regulated by the law, as to the political committees which have been brought under the law, and in other respects. As amended, the terms are defined as follows:

(a) "election" means (i) a general, special, primary, or runoff election, (2) a convention or caucus of a political party held to nominate a candidate, (3) a primary election held for the selection of delegates to a national nominating convention of a political party, (4) a primary election held for the expression of a preference for the nomination of persons for election to the office of President, and (5) the election of delegates to a constitutional convention for proposing amendments to the Constitution of the United States;

(b) "candidate" means an individual who seeks nomination for election, or election, to Federal office whether or not such individual is elected, and, for purposes of this paragraph, an individual shall be deemed to seek nomination for election, or election, to Federal office, if he has (1) taken the action necessary under the law of a State to qualify himself for nomination for election, or election, or (2) received contributions or made expenditures, or has given his consent for any other person to receive contributions or make expenditures, with a view to bringing about his nomination for election, or election, to such office; (c) "Federal office" means the office of President or Vice President of the United States, or Senator or Representative in, or Delegate or Resident Commissioner to, the Congress of the United States;

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