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.

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

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.

END