[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1497 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1497
To amend the Communications Act of 1934 to revise and expand the lowest
unit cost provision applicable to political campaign broadcasts, to
establish commercial broadcasting station minimum airtime requirements
for candidate-centered and issue-centered programming before primary
and general elections, to establish a voucher system for the purchase
of commercial broadcast airtime for political advertisements, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 30 (legislative day, July 21), 2003
Mr. McCain (for himself, Mr. Feingold, and Mr. Durbin) introduced the
following bill; which was read twice and referred to the Committee on
Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To amend the Communications Act of 1934 to revise and expand the lowest
unit cost provision applicable to political campaign broadcasts, to
establish commercial broadcasting station minimum airtime requirements
for candidate-centered and issue-centered programming before primary
and general elections, to establish a voucher system for the purchase
of commercial broadcast airtime for political advertisements, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Our Democracy, Our Airwaves Act of
2003''.
SEC. 2. MEDIA RATES.
(a) Lowest Unit Charge; National Committees.--Section 315(b) of the
Communications Act of 1934 (47 U.S.C. 315(b)) is amended--
(1) by striking ``to such office'' in paragraph (1) and
inserting ``to such office, or by a national committee of a
political party on behalf of such candidate in connection with
such campaign,''; and
(2) by inserting ``for pre-emptible use thereof'' after
``station'' in subparagraph (A) of paragraph (1).
(b) Preemption; Audits.--
(1) In general.--Section 315 of such Act (47 U.S.C. 315) is
amended--
(A) by redesignating subsections (c) and (d) as
subsections (e) and (f), respectively and moving them
to follow the existing subsection (e);
(B) by redesignating the existing subsection (e) as
subsection (c); and
(C) by inserting after subsection (c) the
following:
``(d) Preemption.--
``(1) In general.--Except as provided in paragraph (2), and
notwithstanding the requirements of subsection (b)(1)(A), a
licensee shall not preempt the use of a broadcasting station by
an eligible candidate or political committee of a political
party who has purchased and paid for such use.
``(2) Circumstances beyond control of licensee.--If a
program to be broadcast by a broadcasting station is preempted
because of circumstances beyond the control of the station, any
candidate or party advertising spot scheduled to be broadcast
during that program shall be treated in the same fashion as a
comparable commercial advertising spot.
``(e) Audits.--During the 45-day period preceding a primary
election and the 60-day period preceding a general election, the
Commission shall conduct such audits as it deems necessary to ensure
that each broadcaster to which this section applies is allocating
television broadcast advertising time in accordance with this section
and section 312.''.
(2) Conforming amendment.--Section 504 of the Bipartisan
Campaign Reform Act of 2002 is amended by striking ``315), as
amended by this Act, is amended by redesignating subsections
(e) and (f) as subsections (f) and (g), respectively, and'' and
inserting ``315) is amended by''.
(c) Stylistic Amendments.--Section 315 of such Act (47 U.S.C. 315)
is amended--
(1) by striking ``For purposes of this sec-
tion--'' in subsection (e), as redesignated by subsection
(b)(1)(A) of this section, and inserting ``Definitions.--In
this section:'';
(2) by striking ``the'' in paragraph (1) of that subsection
and inserting ``Broadcasting station.--The'';
(3) by striking ``the'' in paragraph (2) of that subsection
and inserting ``Licensee; station licensee.--The''; and
(4) by inserting ``Regulations.--'' in subsection (f), as
so redesignated, before ``The Commission''.
SEC. 3. MINIMUM TIME REQUIREMENTS FOR CANDIDATE-CENTERED OR ISSUE-
CENTERED BROADCASTS BY BROADCASTING STATIONS.
(a) In General.--
(1) Program content requirements.--In the administration of
the Communications Act of 1934 (47 U.S.C. 151 et seq.), the
Federal Communications Commission may not determine that a
broadcasting station has met its obligation to operate in the
public interest unless the station demonstrates to the
satisfaction of the Commission that--
(A) it broadcast at least 2 hours per week of
candidate-centered programming or issue-centered
programming during each of the 6 weeks preceding a
Federal election, including at least 4 of the weeks
immediately preceding a general election; and
(B) not less than 1 hour of such programming was
broadcast in each of those weeks during the period
beginning at 5:00 p.m. and ending at 11:35 p.m. in the
time zone in which the primary broadcast audience for
the station is located.
(2) Nightowl broadcasts not counted.--For purposes of
paragraph (1), any candidate-centered programming or issue-
centered programming broadcast between midnight and 6:00 a.m.
in the time zone in which the primary broadcast audience for
the station is located shall not be taken into account.
(3) Nonpartisan voter registration and get-out-the-vote
broadcasts.--For purposes of paragraph (1), programming that
constitutes nonpartisan activity designed to encourage
individuals to vote or to register to vote, within the meaning
of section 301(9)(B)(ii) of the Federal Election Campaign Act
of 1971 (2 U.S.C. 431(9)(B)(ii)), is deemed to be issue-
centered programming to the extent it does not exceed--
(A) 30 minutes per week for purposes of paragraph
(1)(A); and
(B) 15 minutes per week for purposes of paragraph
(1)(B).
(b) Definitions.--In this section:
(1) Broadcasting station.--The term ``broadcasting
station'' has the meaning given that term by section 315(e)(1)
of the Communications Act of 1934.
(2) Candidate-centered programming.--The term ``candidate-
centered programming''--
(A) includes debates, interviews, candidate
statements, and other program formats that provide for
a discussion of issues by the candidate; but
(B) does not include paid political advertisements.
(3) Federal election.--The term ``Federal election'' has
the meaning given that term in section 315A(g)(2) of the
Communications Act of 1934.
(4) Issue-centered programming.--The term ``issue-centered
programming''--
(A) includes debates, interviews, statements, and
other program formats that provide for a discussion of
any ballot measure which appears on a ballot in a
forthcoming election; but
(B) does not include paid political advertisements.
SEC. 4. POLITICAL ADVERTISEMENTS VOUCHER PROGRAM.
(a) In General.--Title III of the Communications Act of 1934 (47
U.S.C. 301 et seq.) is amended by inserting after section 315 the
following:
``SEC. 315A. POLITICAL ADVERTISEMENT VOUCHER PROGRAM.
``(a) In General.--The Commission shall establish and administer a
voucher program for the purchase of airtime on broadcast stations for
political advertisements in accordance with the provisions of this
section.
``(b) Candidates.--
``(1) Disbursement of vouchers.--Beginning no earlier than
January of each even-numbered year after 2003, the Commission
shall disburse vouchers at least once each month for the
purchase of radio or television broadcast airtime for political
advertisements on broadcasting stations to each individual
certified by the Federal Election Commission under paragraph
(2) as an eligible candidate.
``(2) FEC to certify eligible candidates.--The Commission
may not disburse vouchers under paragraph (1) to an individual,
until the Federal Election Commission has made the following
certifications with respect to that individual:
``(A) Qualification.--The individual is a legally-
qualified candidate in a Federal election.
``(B) Agreement.--The individual has agreed in
writing--
``(i) to keep and furnish to the Federal
Election Commission such records, books, and
other information as it may require; and
``(ii) to repay to the Federal
Communications Commission an amount equal to
150 percent of the dollar value of vouchers
received from the Commission if the Federal
Election Commission makes a final determination
that the individual violated any term of the
agreement.
``(C) House of representatives candidates.--For
candidates for election to the House of
Representatives, that--
``(i) the individual has received at least
$25,000 in contributions from individuals, not
counting any amount in excess of $250 received
from any individual;
``(ii) the individual agrees not knowingly
to make expenditures from the individual's
personal funds, or the personal funds of the
individual's immediate family, in connection
with the campaign for election to the House of
Representatives in excess of, in the aggregate,
$125,000; and
``(iii) the individual faces opposition by
at least 1 other candidate who has received
contributions or made expenditures of, in the
aggregate, at least $25,000 or who has been
certified by the Federal Election Commission
under this paragraph as eligible to receive vouchers under paragraph
(1).
``(D) Senate candidates.--For candidates for
election to the Senate, that--
``(i) the individual has received at least
$25,000 in contributions from individuals, not
counting any amount in excess of $250 received
from any individual, multiplied by the number
of Representatives from the State in which the
individual seeks election;
``(ii) the individual agrees not knowingly
to make expenditures from the individual's
personal funds, or the personal funds of the
individual's immediate family, in connection
with the campaign for election to the Senate in
excess of, in the aggregate, $500,000; and
``(iii) the individual faces opposition by
at least 1 other candidate who has received
contributions or made expenditures of, in the
aggregate, at least $25,000 multiplied by the
number of Representatives from the State in
which the individual seeks election or who has
been certified by the Federal Election
Commission under this paragraph as eligible to
receive vouchers under paragraph (1).
``(E) Presidential candidates.--For candidates for
nomination for election, or election, to the Office of
President--
``(i) the term `Federal election' includes
a primary election (as defined in section
9032(7) of the Internal Revenue Code of 1986
(26 U.S.C. 9032(7))); and
``(ii) in order to be eligible to receive
vouchers under this section, the candidate
shall--
``(I) execute the agreement
described in subparagraph (B); and
``(II) certify in writing under
penalty of perjury that the candidate
has qualified to receive payments under
section 9006 or 9037 of the Internal
Revenue Code of 1986.
``(3) Certification process.--In carrying out its duties
under paragraph (2), the Federal Election Commission shall--
``(A) provide the requested certification, if the
individual meets the requirements for certification,
within 7 days after it receives the information
necessary therefor; and
``(B) shall comply with the requirements of chapter
35 of title 44, United States Code, (commonly known as
the Paperwork Reduction Act) and take other appropriate
steps to minimize the paperwork burden on candidates
seeking certification under this subsection.
``(c) Political Parties.--
``(1) Disbursement of vouchers.--In January, 2004, and
January of each even-numbered year thereafter, the Commission
shall disburse vouchers for the purchase of radio or television
broadcast airtime for political advertisements on broadcasting
stations to each political party committee certified by the
Federal Election Commission under paragraph (2) as an eligible
committee.
``(2) FEC to certify eligible committees.--The Commission
may not disburse vouchers under paragraph (1) to a political
party committee, until the Federal Election Commission has made
the following certifications with respect to that committee:
``(A) National party committees.--The committee is
the national committee of a political party or the
national congressional campaign committee of a
political party (as those terms are used in section
323(a)(1) of the Federal Election Campaign Act of 1971
(2 U.S.C. 441i(a)(1))).
``(B) Minor party committees.--In the case of a
political party committee that is not described in
subparagraph (A), the committee meets the candidate
base requirement of subparagraph (C).
``(C) Candidate base.--The committee has
candidates--
``(i) for election to the House of
Representatives who have been certified by the Federal Election
Commission under subsection (b)(2) as eligible candidates in at least
22 districts; or
``(ii) for election to the Senate in at
least 5 States who have been certified by the
Federal Election Commission under subsection
(b)(2) as eligible candidates.
``(D) Agreement.--The committee agrees in writing--
``(i) to keep and furnish to the Federal
Election Commission such records, books, and
other information as it may require; and
``(ii) to repay to the Federal
Communications Commission an amount equal to
150 percent of the dollar value of vouchers
received from the Commission if the Federal
Election Commission makes a final determination
that the committee violated any term of the
agreement.
``(d) Amounts.--
``(1) Calendar year 2004 aggregates.--For calendar year
2004, the Commission shall disburse vouchers in the aggregate
amount of not more than $750,000,000, of which--
``(A) not more than $650,000,000 shall be available
for disbursement to candidates under subsection (b);
and
``(B) not more than $100,000,000 shall be available
for disbursement to political parties under subsection
(c).
``(2) Per-candidate amount.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the Commission shall
disburse vouchers to an individual candidate under
subsection (b)(1) with respect to a Federal election
equal, in the aggregate, to $3 multiplied by the
contributions received by that individual with respect
to that election, not counting any amount in excess of
$250 received from any individual.
``(B) Maximum.--Except as provided in subparagraph
(C), the Commission may not disburse vouchers to an
individual candidate under subsection (b)(1) with
respect to a Federal election of more than--
``(i) $375,000, for a candidate for
election to the House of Representatives; or
``(ii) $375,000 multiplied by the number of
Representatives from the State from which the
individual seeks election, for a candidate for
election to the Senate.
``(C) Special rule for presidential candidates.--
The Commission shall disburse vouchers to a candidate
for nomination for election, or election, to the Office
of President who receives payments under section 9037
or 9006 of the Internal Revenue Code of 1986 (26 U.S.C.
9037 or 9006), respectively, equal to--
``(i) $1 for each dollar received under
section 9037 of such Code; and
``(ii) 50 cents for each dollar received
under section 9006 of such Code.
``(3) Per-committee amount.--
``(A) In general.--The $100,000,000 available to be
disbursed to political parties shall disbursed as
follows:
``(i) The Commission shall reserve a
percentage, determined by the Commission on the
basis of the Commission's good faith estimate
of demand by minor party committees, of the
amount available for disbursement as provided
in subparagraph (B) to political party
committees described in subsection (c)(2)(B)
that have been or will be certified by the
Federal Election Commission as eligible
political party committees.
``(ii) The Commission shall disburse the
remainder of the amount available for
disbursement in equal amounts among political
party committees described in subsection
(c)(2)(A) that have been or will be certified
by the Federal Election Commission as eligible
political party committees.
``(B) Minor party committee amount.--From the
amount reserved under subparagraph (A)(i), the
Commission shall disburse to political party committees
described in subsection (c)(2)(B) certified by the
Federal Election Commission as eligible political party
committees--
``(i) the same amount as the Commission
disburses to each political party committee
under subparagraph (A)(ii) if the political
party with which the political committee is
affiliated has--
``(I) candidates for election to
the House of Representatives certified
by the Federal Election Commission
under subsection (b)(2) as eligible
candidates in 218 or more districts; or
``(II) candidates for election to
the Senate certified by the Federal
Election Commission under subsection
(b)(2) as eligible candidates in 17 or
more of the States in which elections
for United States Senator are being
held; and
``(ii) a percentage of such amount,
determined under subparagraph (C), if the
political party with which the political
committee is affiliated does not qualify for
the full amount under clause (i).
``(C) Proportionate amount determination.--The
amount the Commission shall disburse to a political
party committee described in subparagraph (B)(ii) is a
percentage of the amount disbursed to a political party
committee under subparagraph (A)(2) equal to the
greater of the following percentages:
``(i) A percentage--
``(I) the numerator of which is the
number of districts in which the party
has candidates for election to the
House of Representatives certified by
the Federal Election Commission under
subsection (b)(2) as eligible
candidates; and
``(II) the denominator of which is
435.
``(ii) A percentage--
``(I) the numerator of which is the
number of States in which the party has
candidates for election to the Senate
certified by the Federal Election
Commission under subsection (b)(2) as
eligible candidates; and
``(II) the denominator of which is
33 (or 34 in any year in which there
are 34 Senators for election).
``(e) Inflation Adjustment.--Each dollar amount in this section
shall be adjusted for even-numbered years after 2003 in the same manner
as the limitations in section 315(b) and (d) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441a(b) and (d)) are adjusted under
section 315(c) of that Act (2 U.S.C. 441a(c)), except that, for the
purpose of applying section 315(c)--
``(1) `(commencing in 2005)' shall be substituted for
`(commencing in 1976)' in paragraph (1) of that section; and
``(2) `2003' shall be substituted for `1974' in paragraph
(2)(B) of that section.
``(f) Use.--
``(1) Exclusive use.--Vouchers disbursed by the Commission
under this section may be used exclusively for the purpose
described in subsection (b) by the candidate or political party
committee to which the vouchers were disbursed, except that--
``(A) a candidate may exchange vouchers with a
political party under paragraph (2); and
``(B) a political party may use vouchers to
purchase broadcast airtime for political advertisements
for its candidates in a general election for any
Federal, State, or local office if it discloses the
value of the voucher used as an expenditure under
section 315(d) of the Federal Election Campaign Act of
1971 (2 U.S.C. 441(d)).
``(2) Exchange with political party committee.--
``(A) In general.--A individual who receives a
voucher under this section may transfer the right to
use all or a portion of the value of the voucher to a
committee, described in subsection (c)(2)(A), of the
political party of which the individual is a candidate
in exchange for money in an amount equal to the cash
value of the voucher or portion exchanged.
``(B) Continuation of candidate obligations.--The
transfer of a voucher, in whole or in part, to a
political party committee under this paragraph does not
release the candidate from any obligation under the
agreement made under subsection (b)(2) or otherwise
modify that agreement or its application to that
candidate.
``(C) Party committee obligations.--Any political
party committee to which a voucher or portion thereof
is transferred under subparagraph (A)--
``(i) shall account fully, in accordance
with such requirements as the Commission may
establish, for the receipt of the voucher; and
``(ii) may not use the transferred voucher
or portion thereof for any purpose other than a
purpose described in paragraph (1)(B).
``(D) Voucher as a contribution under feca.--If a
candidate transfers a voucher or any portion thereof to
a political party committee under subparagraph (A)--
``(i) the value of the voucher or portion
thereof transferred shall be treated as a
contribution from the candidate to the
committee, and from the committee to the
candidate, for purposes of sections 302 and 304
of the Federal Election Campaign Act of 1971 (2
U.S.C. 432 and 434);
``(ii) the committee may, in exchange,
provide to the candidate only funds subject to
the prohibitions, limitations, and reporting
requirements of the Federal Election Campaign
Act of 1971 (2 U.S.C. 431 et seq.); and
``(iii) the amount, if identified as a
`voucher exchange' shall not be considered a
contribution for the purposes of section 315 of
that Act (2 U.S.C. 441a).
``(g) Value; Acceptance; Redemption.--
``(1) Voucher.--Each voucher disbursed by the Commission
under this section shall have a value in dollars, redeemable
upon presentation to the Commission, together with such
documentation and other information as the Commission may
require, for the purchase of broadcast airtime for political
advertisements in accordance with this section.
``(2) Acceptance.--A broadcasting station shall accept
vouchers in payment for the purchase of broadcast airtime for
political advertisements in accordance with this section.
``(3) Redemption.--The Commission shall redeem vouchers
accepted by broadcasting stations under paragraph (2) upon
presentation, subject to such documentation, verification,
accounting, and application requirements as the Commission may
impose to ensure the accuracy and integrity of the voucher
redemption system. The Commission shall use amounts in the
Political Advertising Voucher Account established under
subsection (h) to redeem vouchers presented under this
subsection.
``(4) Expiration.--
``(A) Candidates.--A voucher may only be used to
pay for broadcast airtime for political advertisements
to be broadcast before midnight on the day before the
date of the Federal election in connection with which
it was issued and shall be null and void for any other
use or purpose.
``(B) Exception for political party committees.--A
voucher held by a political party committee may be used
to pay for broadcast airtime for political
advertisements to be broadcast before midnight on
December 31st of the odd-numbered year following the
year in which the voucher was issued by the Commission.
``(5) Voucher as expenditure under feca.--
``(A) Congressional campaigns.--Except as provided
in subparagraph (B), for purposes of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431 et seq.),
the use of a voucher to purchase broadcast airtime
constitutes an expenditure as defined in section
301(9)(A) of that Act (2 U.S.C. 431(9)(A)).
``(B) Presidential campaigns.--Notwithstanding any
provision of the Federal Election Campaign Act of 1971
or chapter 95 or 96 of the Internal Revenue Code of
1986 to the contrary, the use of a voucher by a
candidate for nomination for election, or election, to
the Office of President does not constitute an
expenditure for purposes of that Act or chapter.
``(h) Political Advertising Voucher Account.--
``(1) In general.--The Commission shall establish an
account to be known as the Political Advertising Voucher
Account, which shall be credited with commercial television and
radio spectrum use fees assessed under this subsection,
together with any amounts repaid or otherwise reimbursed under
this section.
``(2) Spectrum use fee.--
``(A) In general.--The Commission shall assess, and
collect annually, a spectrum use fee based on a
percentage of a broadcasting station's gross revenues
in an amount necessary to carry out the provisions of
this section.
``(B) Limitations.--The percentage under
subparagraph (A) may not be--
``(i) greater than 1 percent; nor
``(ii) less than .05 percent.
``(C) Availability.--Any amount assessed and
collected under this paragraph shall be retained by the
Commission as an offsetting collection for the purposes
of making disbursements under this section, except
that--
``(i) the salaries and expenses account of
the Commission shall be credited with such sums
as are necessary from those amounts for the
costs of developing and implementing the
program established by this section; and
``(ii) the Commission may reimburse the
Federal Election Commission for any expenses
incurred by the Commission under this section.
``(D) Fee does not apply to public broadcasting
stations.--Subparagraph (A) does not apply to a public
telecommunications entity (as defined in section
397(12) of this Act).
``(3) Administrative provisions.--Except as otherwise
provided in this subsection, section 9 of this Act applies to
the assessment and collection of fees under this subsection to
the same extent as if those fees were regulatory fees imposed
under section 9.
``(i) Definitions.--In this section:
``(1) Broadcasting station.--The term `broadcasting
station' has the meaning given that term by section 315(e)(1)
of this Act.
``(2) Federal election.--The term `Federal election' means
any regularly-scheduled, primary, runoff, or special election
held to nominate or elect a candidate to Federal office.
``(3) Federal office.--The term `Federal office' has the
meaning given that term by section 301(3) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431(3)).
``(4) Legally-qualified candidate.--The term `legally-
qualified candidate' means a legally qualified candidate within
the meaning of section 315 of this Act.
``(5) Political party.--The term `political party' means a
major party or a minor party as defined in section 9002(3) or
(4) of the Internal Revenue Code of 1986 (26 U.S.C. 9002(3) or
(4)).
``(6) Other terms.--Except as otherwise provided in this
section, any term used in this section that is defined in
section 301 of the Federal Election Campaign of 1971 (2 U.S.C.
431) has the meaning given that term by section 301 of that
Act.
``(j) Regulations.--The Commission shall prescribe such regulations
as may be necessary to carry out the provisions of this section. In
developing the regulations, the Commission shall consult with the
Federal Elections Commission.''.
(b) Delayed Effective Date for Presidential Candidates.--The
provisions of subsections (b)(2)(E) and (d)(2)(C) of section 315A of
the Communications Act of 1934, as added by subsection (a), shall take
effect on January 1, 2008.
SEC. 5. FCC TO PRESCRIBE STANDARDIZED FORM FOR REPORTING CANDIDATE
CAMPAIGN ADS.
(a) In General.--Within 90 days after the date of enactment of this
Act, the Federal Communications Commission shall initiate a rulemaking
proceeding to establish a standardized form to be used by broadcasting
stations (as defined in section 315(e)(1) of the Communications Act of
1934; 47 U.S.C. 315(e)(1)) to record and report the purchase of
advertising time by or on behalf of a candidate for nomination for
election, or for election, to Federal elective office.
(b) Contents.--The form prescribed by the Commission shall require,
broadcasting stations to report, at a minimum--
(1) the station call letters and mailing address;
(2) the name and telephone number of the station's sales
manager (or individual with responsibility for advertising
sales);
(3) the name of the candidate who purchased the advertising
time, or on whose behalf the advertising time was purchased,
and the Federal elective office for which he or she is a
candidate;
(4) the name, mailing address, and telephone number of the
person responsible for purchasing broadcast political
advertising for the candidate;
(5) notation as to whether the purchase agreement for which
the information is being reported is a draft or final version;
and
(6) the following information about the advertisement:
(A) The date and time of the broadcast.
(B) The program in which the advertisement was
broadcast.
(C) The length of the broadcast airtime.
(c) Internet Access.--In its rulemaking, the Commission shall
require any broadcasting station reporting under this section that
maintains an Internet website to make available a link to reports under
this section on that website.
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