(b)(1) If, after examination and audit under subsection (a), the Comptroller General determines that any portion of the payments made to an eligible candidate under section 206 was erroneously made, he shall so notify such candidate, and such candidate shall pay to the Secretary an amount equal to such portion. (2) If the Comptroller General determines that any eligible candidate of a major party accepted or expended contributions to defray qualified campaign expenses incurred by him, or that any authorized political committee of such candidate accepted or expended contributions to defray qualified campaign expenses incurred by it in support of his candidacy, he shall notify such candidate of the amount of the contributions so accepted or expended, and such candidate shall pay to the Secretary an amount equal to such amount (but not in excess of the amount of payments received by such candidate under section 206).

(3) If the Comptroller General determines that the amount of contributions accepted or expended by an eligible candidate (other than an eligible candidate of a major party), and by the authorized political committees of such candidate, to defray qualified campaign expenses incurred by such candidate or incurred by such committees in support of the candidacy of such candidate, when added to the amount of payments made to such candidate under section 206, exceeds the amount of payments which an eligible candidate of a major party for the office for which such candidate was a candidate is entitled to receive under section 204, he shall notify such candidate of such excess, and such candidate shall pay to the Secretary an amount equal to such excess (but not in excess of the amount of payments received by such candidate under section 206).

(4) If the Comptroller General determines that any amount of any pay ment made to a candidate under section 206 was used by such candidate for any purpose other than

(A) to defray the qualified campaign expenses with respect to which such payment was made, or

(B) to repay loans the proceeds of which were used, or otherwise to restore funds which were used, to defray such qualified campaign expenses,

he shall notify such candidate of the amount so used, and such candidate shall pay to the Secretary an amount equal to such amount.

(5) All payments received by the Secretary under this subsection shall be deposited by him in the Treasury to the credit of the appropriations made under the authority of section 206(b).

REPORTS TO CONGRESS; REGULATIONS

SEC. 208. (a) The Comptroller General shall, as soon as practicable after each election, submit a full report to the Senate and the House of Representatives, setting forth

(1) the amounts certified by him under section 206 for payment to each eligible candidate;

(2) the qualified campaign expenses (shown in such detail as the Comptroller General determines necessary) incurred by each such candidate and by his authorized political committees in support of his candidacy; and

(3) the amount of payments, if any, required from each such candidate under section 207, and the reasons for each payment required.

Each report submitted pursuant to this section shall be printed as a Senate document.

(b) The Comptroller General is authorized to prescribe such rules and regulations, to conduct such examinations and investigations, and to require the submission of such books, records, and information, as he deems necessary to carry out the functions and duties imposed on him by this title.

CRIMINAL PENALTIES

SEC. 209. (a) It shall be unlawful for any person who receives any payment under section 206 knowingly and willfully to use, or authorize the use of, such payment for any purpose other than

(1) to defray the qualified campaign expenses, with respect to which such payment was made, or

(2) to repay loans the proceeds of which were used, or otherwise to restore funds which were used, to defray such qualified campaign expenses. (b) It shall be unlawful for any person knowingly and willfully—

(1) to furnish any false, fictitious, or fraudulent evidence, books, or information to the Comptroller General under this title, or to include in any evidence, books, or information so furnished any misrepresentation of a

material fact, or to falsify or conceal any evidence, books, or information relevant to a certification by the Comptroller General or an examination and audit by the Comptroller General under this title;

(2) to fail to furnish to the Comptroller General any records, books, or information requested by him for purposes of this title; or

(3) to fail to pay to the Secretary any amount required to be paid under section 207(b).

(c) Any person who violates any provision of subsection (a) or (b) shall be fined not more than $10,000, or imprisoned not more than 5 years, or both.

PART B-INCOME TAX DEduction for CONTRIBUTIONS TO FEDERAL CANDIDATES

ALLOWANCE FOR DEDUCTION

SEC. 221. (a) Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to additional itemized deductions for individuals) is amended by renumbering section 218 as 219, and by inserting after section 217 the following new section:

"SEC. 218. POLITICAL CONTRIBUTIONS TO FEDERAL CANDIDATES. "(a) ALLOWANCE OF DEDUCTION.-In the case of an individual, there shall be allowed as a deduction an amount equal to one-half of so much of the contributions as does not exceed $100, payment of which is made by the taxpayer within the taxable year, to

"(1) an individual who is a candidate (within the meaning of section 102(2) of the Federal Elections Campaign Practices Act of 1967) for nomination or election to the office of President or Vice President of the United States, or Senator or Representative in, or Resident Commissioner to, the Congress of the United States, for use by such individual to further his candidacy for nomination or election to such office; or

"(2) a political committee authorized under section 112 of such Act to support the candidacy of such individual, for use by such political committee to support the candidacy of such individual for nomination or election to the office for which he is a candidate.

“(b) VERIFICATION.-The deduction under subsection (a) shall be allowed, with respect to any contribution, only if such contribution is verified in such manner as the Secretary or his delegate shall prescribe by regulations.

"(c) CROSS REFERENCE.

"For disallowance of the deduction provided by subsection (a) to estates and trusts, see section 642(i).”

(b) The table of sections for such part VII is amended by striking out the last item and inserting in lieu thereof the following:

"Sec. 218. Political contributions to Federal candidates.
"Sec. 219. Cross references."

DEDUCTION FROM GROSS INCOME

SEC. 222. Section 62 of the Internal Revenue Code of 1954 (relating to definition of adjusted gross income) is amended by inserting after paragraph (8) the following paragraph:

"(9) POLITICAL CONTRIBUTIONS TO FEDERAL CANDIDATES.-The deduction allowed by section 218."

TECHNICAL AMENDMENTS

SEC. 223. (a) Section 276(a) of the Internal Revenue Code of 1954 (relating to certain indirect contributions to political parties) is amended by striking out "No deduction otherwise allowable under this chapter" and inserting in lieu thereof "Except as provided in section 218, no deduction otherwise allowable under this chapter".

(b) Section 642 of such Code (relating to special rules for credits and deductions for estates and trusts) is amended by redesignating subsection (i) as (j), and by inserting after subsection (h) the following new subsection:

“(i) POLITICAL CONTRIBUTIONS TO FEDERAL CANDIDATES.-An estate or trust shall not be allowed the deduction for political contributions to Federal candidates provided by section 218."

EFFECTIVE DATE

SEC. 224. The amendments made by this title shall apply to taxable years ending after December 31, 1967, but only with respect to contributions payment of which is made after such date.

TITLE III-FURNISHING OF FREE RADIO AND TELEVISION BROADCAST TIME TO FEDERAL CANDIDATES

AMENDMENT TO COMMUNICATIONS ACT OF 1934

SEC. 301. Section 315 of the Communications Act of 1934 (47 U.S.C. 315) is amended

(1) by striking out "No obligation" in the second sentence of subsection (a) and inserting in lieu thereof "Except as provided in subsection (c), no obligation", and

(2) by redesignating subsection (c) as (d), and by inserting after subsection (b) the following new subsection:

"(c) After notice and hearing, the Commission shall prescribe appropriate rules and regulations requiring, as a condition of each license for a broadcasting station, that, to the extent provided in such rules and regulations, the licensee permit the use of such broadcasting station without charge by any person who (1) is a legally qualified candidate for election to the office of President or Vice President of the United States or Senator or Representative in, or Resident Commissioner to, the Congress of the United States, and (2) satisfies such requirements with respect to candidates for the office for which he is a candidate as such rules and regulations may provide. The first sentence of subsection (a) (other than the proviso contained therein) shall not apply with respect to the use of a broadcasting station by a candidate pursuant to the rules and regulations prescribed under this subsection.".

[S. 1882, 90th Cong., 1st sess.]

A BILL To provide for deductions of political contributions, to amend the Federal Corrupt Practices Act, and to prohibit solicitation of Federal employees by political committees

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Election Reform Act of 1967".

DEDUCTION OF POLITICAL CONTRIBUTIONS

SEC. 2. (a) Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to additional itemized deductions for individuals) is amended by redesignating section 218 as 219, and by inserting after section 217 the following new section:

"SEC. 218. POLITICAL CONTRIBUTIONS.

"(a) ALLOWANCE OF DEDUCTION.—In the case of an individual, there shall be allowed as a deduction an amount equal to so much of the political contributions as does not exceed $100, payment of which is made by the taxpayer within the taxable year, but only if, at the time the deduction is claimed, the committee or individual who received the contribution has complied with all provisions of Federal, State, or local law which require the reporting of the receipt of such contribution. In the case of a joint return of a husband and wife under section 6013 the deductions shall not exceed $100, and in the case of a separate return by a married individual the deduction shall not exceed $50.

(b) VERIFICATION. The deduction under subsection (a) shall be allowed, with respect to any political contribution, only if such political contribution is verified in such manner as the Secretary or his delegate shall prescribe by regulations.

(c) DEFINITION OF POLITICAL CONTRIBUTION.-For purposes of this section the term 'political contribution' means a contribution or donation of money to

"(1) an individual who is a candidate for any Federal, State, or local elective public office in any general, special, or primary election, or in any convention of a political party described in paragraph (2), for use by such individual to further his candidacy; or

(2) any National, State, or local committee of a political party which had a candidate for the Presidency at the last election of presidential electors, or has a candidate for the Presidency if there is an election of presidential electors during the current taxable year, and such candidate received or

receives, as the case may be, more than 10 per centum of the popular vote cast in such election, if such committee accepts contributions or makes expenditures for the purpose of influencing or attempting to influence the selection, nomiñation, or election of any candidate described in paragraph (1). "(d) CROSS REFERENCE.

"For disallowance of deduction to estates and trusts, see section 642(i).” (b) The table of sections for such part VII is amended by striking out the last item and inserting in lieu thereof the following:

"Sec. 218. Political contributions.

"Sec. 219. Cross references."

(c) Section 62 of such Code (relating to definition of adjusted gross income) is amended by inserting after paragraph (8) the following paragraph:

"(9) POLITICAL CONTRIBUTIONS. The deduction allowed by section 218." (d) Section 276(a) of such Code (relating to certain indirect contributions to political parties) is amended by striking out "No deduction otherwise allowable under this chapter" and inserting in lieu thereof "Except as provided in section 218, no deduction otherwise allowable under this chapter."

(e) Section 642 of such Code (relating to special rules for credits and deductions for estates and trusts) is amended by redesignating subsection (i) as (j), and by inserting after subsection (h) the following new subsection:

"(i) POLITICAL CONTRIBUTIONS.-An estate or trust shall not be allowed the deduction for political contributions provided by section 218."

(f) The amendments made by this section shall apply to taxable years ending after December 31, 1966, but only with respect to political contributions payment of which is made after such date.

REPORTS OF CONTRIBUTIONS AND EXPENDITURES

SEC. 3. (a) Section 302(c) of the Federal Corrupt Practices Act, 1925 (2 U.S.C. 241(c)) is amended to read as follows:

"(c) The term 'political committee' includes any committee, association, or organization which accepts contributions or makes expenditures for the purpose of influencing or attempting to influence the election of candidates or presidential and vice-presidential electors."

(b) Section 306 of such Act (2 U.S.C. 245) is amended to read as follows: "SEC. 306. Every person (other than a political committee) who makes an expenditure in one or more items, other than by contribution to a political committee, aggregating $50 or more within a calendar year for the purpose of influencing the election of candidates, shall file with the Clerk an itemized detailed statement of such expenditure in the same manner as required of the treasuerer of a political committee by section 305."

(c) The amendments made by subsections (a) and (b) shall be applicable with respect to contributions and expenditures made on or after the date of enactment of this Act.

DEFINITION OF ELECTION

SEC. 4. (a) Subsections (a) and (b) of section 302 of the Federal Corrupt Practices Act, 1925 (2 U.S.C. 241) are amended to read as follows:

"(a) The term 'election' includes a general, special, or primary election, including a preferential primary, and a convention or caucus of a political party held for the purpose of nominating candidates;

"(b) The term 'candidate' means an individual whose name is presented at an election for nomination for, or election as President or Vice President, or Senator or Representative in, or Resident Commissioner to, the Congress of the United States, whether or not such individual is nominated or elected;".

(b) Subsection (c) of such section is amended by inserting immediately before the word "election" the words "nomination or".

(c) Section 305(a) of such Act (2 U.S.C. 244) is amended by striking out the words "a general election is to be held, at which candidates are to be elected in two or more States" and inserting in lieu thereof the following: "an election with respect to which contributions are accepted or expenditures made by such committee is to be held".

(d) Section 307(a) of such Act (2 U.S.C. 246) is amended by striking out the words "an election" and inserting in lieu thereof the following: "the election in which the candidate seeks nomination or election".

(e) Section 309 of such Act (2 U.S.C. 248), is amended by adding at the end thereof a new subsection as follows:

"(d) Subsections (a) and (b) of this section shall be applicable only with respect to expenditures by candidates for election as Senator or Representative in, or Resident Commissioner to, the Congress in a general or special election."

(f) Section 591 of title 18, United States Code is amended by striking out the paragraphs defining the terms "election" and "candidate" and inserting in lieu thereof the following:

"The term 'election' includes a general, special, or primary election, including a preferential primary, and a convention or caucus of a political party held for the purpose of nominating candidates;

"The term 'candidate' means an individual whose name is presented at an election for nomination for, or election as, President or Vice President, or Senator or Representative in, or Resident Commissioner to, the Congress of the United States, whether or not such individual is nominated or elected;".

PROHIBITION UPON SOLICITATION OF FEDERAL EMPLOYEES BY POLITICAL

COMMITTEES

SEC. 5. (a) Section 602 of title 18 of the United States Code is amended(1) by inserting "(a)" before "Whoever", and

(2) by adding at the end thereof the following new subsection:

(b) Whoever, acting on behalf of any political committee (including any State or local committee of a political party), directly or indirectly solicits, or is in any manner concerned in soliciting, any assessment, subscription, or contribution for the use of such political committee or for any political purpose whatever from any officer or employee of the United States (other than an elected officer) shall be fined not more than $5,000 or imprisoned not more than three years, or both.

[S. 1883, 90th Cong., 1st sess.]

A BILL To amend the Presidential Election Campaign Fund Act of 1966, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That—

(a) (1) Subchapter A of chapter 61 of the Internal Revenue Code of 1954 is amended

(A) by striking out part VIII (relating to designation of income tax payments to the Presidential Election Campaign Fund); and

(B) by striking out the item relating to such part VIII in the table of parts of such subchapter.

(2) The amendments made by paragraph (1) shall apply with respect to income tax liability for taxable years beginning after December 31, 1966.

(b) (1) Section 303 of the Presidential Election Campaign Fund Act of 1966 is amended

(A) by striking out the second sentence of subsection (a) and inserting in lieu thereof "The fund shall consist of amounts appropriated to it under the authority of section 305 of this Act."; and

(B) by striking out subsection (b) and inserting in lieu thereof the following: "(b) TRANSFERS TO THE FUND.-The Secretary of the Treasury shall, from time to time, transfer from the general fund of the Treasury to the Fund the sums appropriated to it under the authority of section 305 of this Act." (2) Section 305 of such Act is amended to read as follows:

"SEC. 305. APPROPRIATIONS AUTHORIZED.

"(a) MAJOR PARTIES.

"(1) 1968 PRESIDENTIAL CAMPAIGN.-There is hereby authorized to be appropriated to the presidential election campaign fund, out of any monies in the Treasury not otherwise appropriated, an amount not to exceed $ to enable the Secretary of the Treasury to make the payments under section 303(c)(1)(A) of this Act with respect to the presidential campaign conducted in 1968, and subject to the provisions of section 303(d) of this Act, such sums may be made available for such purpose until expended when so specified in an appropriation act.

"(2) PRESIDENTIAL CAMPAIGNS SUBSEQUENT TO 1968. For each presidential campaign conducted subsequent to 1968, there is hereby authorized to be appropriated to the presidential election campaign fund, out of any monies