Library / Laws / 113th / hr / H.R. 270 / Introduced in House
I
113th CONGRESS
1st Session
H. R. 270
IN THE HOUSE OF REPRESENTATIVES
January 15, 2013
Mr. Price of North
Carolina (for himself, Mr. Van
Hollen, Mr. Jones,
Mr. Larson of Connecticut,
Mr. Brady of Pennsylvania,
Mr. Sarbanes,
Mr. Yarmuth,
Ms. Eshoo,
Mr. George Miller of California,
Mr. Polis,
Mr. Holt, Mr. Nolan, and Mr.
O'Rourke) introduced the following bill; which was referred to the
Committee on House
Administration, and in addition to the Committee on
Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to reform the
system of public financing for Presidential elections, to establish a system of
public financing for Congressional elections, to promote the disclosure of
disbursements made in coordination with campaigns for election for Federal
office, and for other purposes.
1.
Short title; table of
contents
(a)
Short
title
This Act may be cited
as the Empowering Citizens
Act.
(b)
Table of
contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Reform of Presidential election financing
Subtitle A—Primary elections
Sec. 101. Increase in and modifications to matching
payments.
Sec. 102. Eligibility requirements for matching
payments.
Sec. 103. Inflation adjustment for matching
contributions.
Sec. 104. Repeal of expenditure limitations.
Sec. 105. Period of availability of matching
payments.
Sec. 106. Examination and audits of matchable
contributions.
Sec. 107. Modification to limitation on contributions for
Presidential primary candidates.
Subtitle B—General elections
Sec. 111. Modification of eligibility requirements for public
financing.
Sec. 112. Repeal of expenditure limitations and use of
qualified campaign contributions.
Sec. 113. Matching payments and other modifications to payment
amounts.
Sec. 114. Inflation adjustment for payment amounts.
Sec. 115. Increase in limit on coordinated party
expenditures.
Sec. 116. Establishment of uniform date for release of
payments.
Sec. 117. Amounts in Presidential Election Campaign
Fund.
Sec. 118. Use of general election payments for general election
legal and accounting compliance.
Subtitle C—Political conventions
Sec. 121. Repeal of public financing of party
conventions.
Sec. 122. Contributions for political conventions.
Sec. 123. Prohibition on use of soft money.
Title II—Public financing for congressional election
campaigns
Sec. 201. Benefits and eligibility requirements for
Congressional candidates.
Title V—Public financing of congressional election
campaigns
Subtitle A—Benefits
Sec. 501. Benefits for participating candidates.
Sec. 502. Administration of payments.
Sec. 503. Qualified contribution defined.
Subtitle B—Eligibility and certification
Sec. 511. Eligibility.
Sec. 512. Qualified contribution requirements.
Sec. 513. Certification.
Subtitle C—Requirements for Candidates Certified as
Participating Candidates
Sec. 521. Restrictions on certain contributions and
expenditures.
Sec. 522. Remitting unspent funds after election.
Subtitle D—Administrative provisions
Sec. 531. Administration by Commission.
Sec. 532. Violations and penalties.
Sec. 533. Election cycle
defined.
Sec. 202. Permitting unlimited coordinated expenditures by
political party committees on behalf of participating candidates if
expenditures are derived from small dollar contributions.
Sec. 203. Prohibiting use of contributions by participating
candidates for purposes other than campaign for election.
Title III—Coordinated campaign activity
Sec. 301. Clarification of treatment of coordinated
expenditures as contributions to candidates.
Sec. 302. Clarification of ban on fundraising for super PACs by
Federal candidates and officeholders.
Title IV—Use of Presidential Election Campaign Fund for public
financing of Federal elections
Sec. 401. Use of Presidential Election Campaign Fund for
Congressional candidates.
Sec. 402. Revisions to designation of income tax payments by
individual taxpayers.
Sec. 403. Donation to Presidential
Election Campaign Fund.
Title V—Other Campaign Finance Reforms
Sec. 501. Regulations with respect to best efforts for
identifying persons making contributions.
Sec. 502. Prohibition on joint fundraising
committees.
Sec. 503. Disclosure of bundled contributions to Presidential
campaigns.
Sec. 504. Judicial review of actions related to campaign
finance laws.
Title VI—Severability; Effective Date
Sec. 601. Severability.
Sec. 602. Effective date.
I
Reform of
Presidential election financing
A
Primary
elections
101.
Increase in and
modifications to matching payments
(a)
Increase and
modification
(1)
In
general
The first sentence of section 9034(a) of the Internal
Revenue Code of 1986 is amended—
(A) by striking
an amount equal to the amount of each contribution and inserting
an amount equal to 500 percent of the amount of each matchable
contribution (disregarding any amount of contributions from any person to the
extent that the total of the amounts contributed by such person for the
election exceeds $250); and
(B) by striking
authorized committees and all that follows through
$250 and inserting authorized committees.
(2)
Matchable
contributions
Section 9034 of such Code is amended—
(A) by striking the
last sentence of subsection (a); and
(B) by inserting after
subsection (b) the following new subsection:
(c)
Matchable
contribution defined
For purposes of this section and section
9033(b)—
(1)
Matchable
contribution
The term matchable contribution means,
with respect to the nomination for election to the office of President of the
United States, a contribution by an individual to a candidate or an authorized
committee of a candidate with respect to which the candidate has certified in
writing that—
(A) the individual making such contribution has
not made aggregate contributions (including such matchable contribution) to
such candidate and the authorized committees of such candidate in excess of 50%
of the limit applicable under paragraph (1)(A) or paragraph (2)(A) of section
315(a) of the Federal Election Campaign Act of 1971 to the amount of a
contribution which may be made to a candidate who is not eligible to receive
payments under section 9037 with respect to such nomination;
(B) such candidate and
the authorized committees of such candidate will not accept contributions from
such individual (including such matchable contribution) aggregating more than
the amount described in subparagraph (A); and
(C) such contribution
was not—
(i) forwarded from the
contributor from any person other than an individual, or
(ii) received by the
candidate or committee from a contributor or contributors, but credited by the
committee or candidate to another person who is not an individual through
records, designations, or other means of recognizing that a certain amount of
money has been raised by such person.
(2)
Contribution
For
purposes of this subsection, the term contribution means a gift of
money made by a written instrument which identifies the individual making the
contribution by full name and mailing address, but does not include a
subscription, loan, advance, or deposit of money, or anything of value or
anything described in subparagraph (B), (C), or (D) of section
9032(4).
.
(3)
Conforming
amendments
(A) Section 9032(4) of
such Code is amended by striking section 9034(a) and inserting
section 9034.
(B) Section 9033(b)(3)
of such Code is amended by striking matching contributions and
inserting matchable contributions.
(b)
Modification of
payment limitation
Section 9034(b) of such Code is amended by
striking shall not exceed and all that follows and inserting
shall not exceed $100,000,000.
102.
Eligibility
requirements for matching payments
(a)
Amount of
aggregate contributions per State; disregarding of amounts contributed in
excess of $250
Section 9033(b)(3) of the Internal Revenue Code of
1986 is amended—
(1) by striking
$5,000 and inserting $25,000; and
(2) by striking
20 States and inserting the following: 20 States
(disregarding any amount of contributions from any such resident to the extent
that the total of the amounts contributed by such resident for the election
exceeds $250) .
(b)
Contribution
limit
(1)
In
general
Paragraph (4) of section 9033(b) of such Code is amended
to read as follows:
(4) the candidate and
the authorized committees of the candidate will not accept aggregate
contributions from any person with respect to the nomination for election to
the office of President of the United States in excess of 50% of the limit
applicable under paragraph (1)(A) or paragraph (2)(A) of section 315(a) of the
Federal Election Campaign Act of 1971 to the amount of a contribution which may
be made to a candidate who is not eligible to receive payments under section
9037 with respect to such
nomination.
.
(2)
Conforming
amendments
(A) Section 9033(b) of
such Code is amended by adding at the end the following new flush
sentence:
For purposes of paragraph (4), the
term contribution has the meaning given such term in section
301(8) of the Federal Election Campaign Act of
1971.
.
(B) Section 9032(4) of
such Code, as amended by section 101(a)(3)(A) is amended by inserting or
9033(b) after 9034.
(c)
Ban on
acceptance of bundled contributions
Section 9033(b) of such Code,
as amended by subsection (b), is amended—
(1) by striking
and at the end of paragraph (3);
(2) by striking the
period at the end of paragraph (4) and inserting , and;
and
(3) by adding at the
end the following new paragraph:
(5) the candidate and the authorized committee
of the candidate will not accept any bundled contribution (as defined in
section 304(i)(8)) forwarded by or credited to a person described in section
304(i)(7).
.
(d)
Participation in
system for payments for general election
Section 9033(b) of such
Code, as amended by subsection (c), is amended—
(1) by striking
and at the end of paragraph (4);
(2) by striking the
period at the end of paragraph (5) and inserting , and;
and
(3) by adding at the
end the following new paragraph:
(6) if the candidate
is nominated by a political party for election to the office of President, the
candidate will apply for and accept payments with respect to the general
election for such office in accordance with chapter
95.
.
103.
Inflation
adjustment for matching contributions
Section 9033 of the Internal Revenue Code of
1986 is amended by adding at the end the following new subsection:
(d)
Inflation
adjustments
(1)
In
general
In the case of any applicable period beginning after
2013, each of the dollar amounts in section 9034(b) shall be increased by an
amount equal to—
(A) such dollar
amount, multiplied by
(B) the cost-of-living
adjustment determined under section 1(f)(3) for the calendar year following the
year which such applicable period begins, determined by substituting
calendar year 2013 for calendar year 1992 in
subparagraph (B) thereof.
(2)
Applicable
period
For purposes of this subsection, the term applicable
period means the 4-year period beginning with the first day following
the date of the last general election for the office of President and ending on
the date of the next such general election.
(3)
Rounding
If
any amount as adjusted under paragraph (1) is not a multiple of $100, such
amount shall be rounded to the nearest multiple of
$100.
.
104.
Repeal of
expenditure limitations
(a)
In
general
Subsection (a) of section 9035 of the Internal Revenue
Code of 1986 is amended to read as follows:
(a)
Personal
expenditure limitation
No candidate shall knowingly make
expenditures from his personal funds, or the personal funds of his immediate
family, in connection with his campaign for nomination for election to the
office of President in excess of, in the aggregate,
$50,000.
.
(b)
Conforming
amendment
Paragraph (1) of section 9033(b) of the Internal
Revenue Code of 1986 is amended to read as follows:
(1) the candidate will
comply with the personal expenditure limitation under section
9035,
.
105.
Period of
availability of matching payments
Section 9032(6) of the Internal Revenue Code
of 1986 is amended by striking the beginning of the calendar year in
which a general election for the office of President of the United States will
be held and inserting the date that is 6 months prior to the
date of the earliest State primary election.
106.
Examination and
audits of matchable contributions
Section 9038(a) of the Internal Revenue Code
of 1986 is amended by inserting and matchable contributions accepted
by after qualified campaign expenses of.
107.
Modification to
limitation on contributions for Presidential primary candidates
Section 315(a)(6) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441a(a)(6)) is amended by striking
calendar year and inserting four-year election
cycle.
B
General
elections
111.
Modification of
eligibility requirements for public financing
Subsection (a) of section 9003 of the
Internal Revenue Code of 1986 is amended to read as follows:
(a)
In
general
In order to be eligible to receive any payments under
section 9006, the candidates of a political party in a presidential election
shall meet the following requirements:
(1)
Participation in
primary payment system
The candidate for President received
payments under chapter 96 for the campaign for nomination for election to be
President.
(2)
Agreements with
Commission
The candidates, in writing—
(A) agree to obtain
and furnish to the Commission such evidence as it may request of the qualified
campaign expenses of such candidates,
(B) agree to keep and
furnish to the Commission such records, books, and other information as it may
request, and
(C) agree to an audit
and examination by the Commission under section 9007 and to pay any amounts
required to be paid under such section.
(3)
Ban on certain
contributions and solicitations
The candidates certify to the
Commission, under penalty of perjury, the following:
(A)
Bundled
contributions
Such candidates
and the authorized committees of such candidates will not accept any bundled
contribution (as defined in section 304(i)(8)) forwarded by or credited to a
person described in section 304(i)(7).
(B)
Solicitations
for joint fundraising committees
Such candidates and their
authorized committees will not, after June 1 of the election year, solicit any
funds for any joint fundraising committee that includes any committee of a
political party.
(C)
Solicitation for
political parties
Such candidates and their authorized committees
will not, after June 1 of the year in which the election is held, solicit any
funds for any committee of a political party.
Such
certification shall be made within such time prior to the day of the
presidential election as the Commission shall prescribe by rules or
regulations.
.
112.
Repeal of
expenditure limitations and use of qualified campaign contributions
(a)
Use of qualified
campaign contributions without expenditure limits; application of same
requirements for major, minor, and new parties
Section 9003 of
the Internal Revenue Code of 1986 is amended by striking subsections (b) and
(c) and inserting the following:
(b)
Use of qualified
campaign contributions To defray expenses
(1)
In
general
In order to be eligible to receive any payments under
section 9006, the candidates of a party in a presidential election shall
certify to the Commission, under penalty of perjury, that—
(A) such candidates
and their authorized committees have not and will not accept any contributions
to defray qualified campaign expenses other than—
(i) qualified campaign
contributions, and
(ii) contributions to
the extent necessary to make up any deficiency payments received out of the
fund on account of the application of section 9006(c), and
(B) such candidates
and their authorized committees have not and will not accept any contribution
to defray expenses which would be qualified campaign expenses but for
subparagraph (C) of section 9002(11).
(2)
Timing of
certification
The candidate shall make the certification required
under this subsection at the same time the candidate makes the certification
required under subsection
(a)(3).
.
(b)
Definition of
qualified campaign contribution
Section 9002 of such Code is
amended by adding at the end the following new paragraph:
(13)
Qualified
campaign contribution
The term qualified campaign
contribution means, with respect to any election for the office of
President of the United States, a contribution from an individual to a
candidate or an authorized committee of a candidate which—
(A) is made after June
1 of the year in which the election is held;
(B) does not exceed 50% of the limit applicable
under paragraph (1)(A) or paragraph (2)(A) of section 315(a) of the Federal
Election Campaign Act of 1971 to the amount of a contribution which may be made
to a candidate who is not eligible to receive payments under section 9006 with
respect to such election; and
(C) with respect to
which the candidate has certified in writing that—
(i) the individual
making such contribution has not made aggregate contributions (including such
qualified contribution) to such candidate and the authorized committees of such
candidate in excess of the amount described in subparagraph (B), and
(ii) such candidate
and the authorized committees of such candidate will not accept contributions
from such individual (including such qualified contribution) aggregating more
than the amount described in subparagraph (B) with respect to such
election.
.
(c)
Conforming
amendments
(1)
Repeal of
expenditure limits
(A)
In
general
Section 315 of the Federal Election Campaign Act of 1971
(2 U.S.C. 441a) is amended by striking subsection (b).
(B)
Conforming
amendments
Section 315(c) of such Act (2 U.S.C. 441a(c)) is
amended—
(i) in
paragraph (1)(B)(i), by striking , (b); and
(ii) in
paragraph (2)(B)(i), by striking subsections (b) and (d) and
inserting subsection (d).
(2)
Repeal of
repayment requirement
(A)
In
general
Section 9007(b) of such Code is amended by striking
paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2),
(3), and (4), respectively.
(B)
Conforming
amendment
Paragraph (2) of section 9007(b) of such Code, as
redesignated by subparagraph (A), is amended—
(i) by
striking a major party and inserting a
party;
(ii) by
inserting qualified contributions and after contributions
(other than; and
(iii) by
striking (other than qualified campaign expenses with respect to which
payment is required under paragraph (2)).
(3)
Criminal
penalties
(A)
Repeal of
penalty for excess expenses
Section 9012 of the Internal Revenue
Code of 1986 is amended by striking subsection (a).
(B)
Penalty for
acceptance of disallowed contributions; application of same penalty for
candidates of major, minor, and new parties
Subsection (b) of section 9012 of such Code
is amended to read as follows:
(b)
Contributions
(1)
Acceptance of
disallowed contributions
It
shall be unlawful for an eligible candidate of a party in a presidential
election or any of his authorized committees knowingly and willfully to accept
any contribution to defray qualified campaign expenses, except to the extent
necessary to make up any deficiency in payments received out of the fund on
account of the application of section 9006(c), or to defray expenses which
would be qualified campaign expenses but for subparagraph (C) of section
9002(11).
(2)
Penalty
Any person who violates paragraph (1) shall
be fined not more than $5,000, or imprisoned not more than one year, or both.
In the case of a violation by an authorized committee, any officer or member of
such committee who knowingly and willfully consents to such violation shall be
fined not more than $5,000, or imprisoned not more than one year, or
both.
.
113.
Matching
payments and other modifications to payment amounts
(a)
In
general
(1)
Amount of
payments; application of same amount for candidates of major, minor, and new
parties
Subsection (a) of
section 9004 of the Internal Revenue Code of 1986 is amended to read as
follows:
(a)
In
general
Subject to the provisions of this chapter, the eligible
candidates of a party in a presidential election shall be entitled to equal
payment under section 9006 in an amount equal to 500 percent of the amount of
each matchable contribution received by such candidate on or after June 1 of
the year of the presidential election, or by his authorized committees
(disregarding any amount of contributions from any person to the extent that
the total of the amounts contributed by such person for the election exceeds
$250), except that total amount to which a candidate is entitled under this
paragraph shall not exceed
$150,000,000.
.
(2)
Repeal of
separate limitations for candidates of minor and new
parties
Section 9004 of such Code is amended by striking
subsection (b).
(3)
Conforming
amendment
Section 9005(a) of such Code is amended by adding at
the end the following new sentence: The Commission shall make such
additional certifications as may be necessary to receive payments under section
9004..
(b)
Matchable
contribution
Section 9002 of such Code, as amended by section
112, is amended by adding at the end the following new paragraph:
(14)
Matchable
contribution
The term matchable contribution means,
with respect to the election to the office of President of the United States, a
contribution by an individual to a candidate or an authorized committee of a
candidate with respect to which the candidate has certified in writing
that—
(A) the individual
making such contribution has not made aggregate contributions (including such
matchable contribution) to such candidate and the authorized committees of such
candidate in excess of 50% of the limit applicable under paragraph (1)(A) or
paragraph (2)(A) of section 315(a) of the Federal Election Campaign Act of 1971
to the amount of a contribution which may be made to a candidate who is not
eligible to receive payments under section 9006 with respect to such
election;
(B) such candidate and
the authorized committees of such candidate will not accept contributions from
such individual (including such matchable contribution) aggregating more than
the amount described in subparagraph (A) with respect to such election;
and
(C) such contribution
was not—
(i) forwarded from the
contributor from any person other than an individual, or
(ii) received by the
candidate or committee from a contributor or contributors, but credited by the
committee or candidate to another person who is not an individual through
records, designations, or other means of recognizing that a certain amount of
money has been raised by such
person.
.
114.
Inflation
adjustment for payment amounts
Section 9004 of the Internal Revenue Code of
1986 is amended by adding at the end the following new subsection:
(f)
Inflation
adjustments
(1)
In
general
In the case of any applicable period beginning after
2017, each of the dollar amounts in subsection (a)(1) shall be increased by an
amount equal to—
(A) such dollar
amount; multiplied by
(B) the cost-of-living
adjustment determined under section 1(f)(3) for the calendar year following the
year which such applicable period begins, determined by substituting
calendar year 2016 for calendar year 1992 in
subparagraph (B) thereof.
(2)
Applicable
period
For purposes of this subsection, the term applicable
period means the 4-year period beginning with the first day following
the date of the last general election for the office of President and ending on
the date of the next such general election.
(3)
Rounding
If
any amount as adjusted under paragraph (1) is not a multiple of $100, such
amount shall be rounded to the nearest multiple of
$100.
.
115.
Increase in
limit on coordinated party expenditures
(a)
In
general
Section 315(d)(2) of
the Federal Election Campaign Act of
1971 (2 U.S.C. 441a(d)(2)) is amended to read as follows:
(2)
(A) The national committee
of a political party may not make any expenditure in connection with the
general election campaign of any candidate for President of the United States
who is affiliated with such party which exceeds $50,000,000.
(B) For purposes of this
paragraph—
(i) any expenditure made by or on behalf
of a national committee of a political party and in connection with a
presidential election shall be considered to be made in connection with the
general election campaign of a candidate for President of the United States who
is affiliated with such party; and
(ii) any communication made by or on
behalf of such party shall be considered to be made in connection with the
general election campaign of a candidate for President of the United States who
is affiliated with such party if any portion of the communication is in
connection with such election.
(C) Any expenditure under this paragraph
shall be in addition to any expenditure by a national committee of a political
party serving as the principal campaign committee of a candidate for the office
of President of the United
States.
.
(b)
Conforming
amendments relating to timing of cost-of-Living adjustment
(1)
In
general
Section 315(c)(1) of such Act (2 U.S.C. 441a(c)(1)), as
amended by section 112(d)(1)(B), is amended—
(A) in subparagraph
(B), by striking (d) and inserting (d)(3);
and
(B) by inserting at
the end the following new subparagraph:
(D) In any calendar year after
2017—
(i) the dollar amount in subsection (d)(2)
shall be increased by the percent difference determined under subparagraph
(A);
(ii) the amount so increased shall remain
in effect for the calendar year; and
(iii) if the amount after adjustment under
clause (i) is not a multiple of $100, such amount shall be rounded to the
nearest multiple of
$100.
.
(2)
Base
year
Section 315(c)(2)(B) of such Act (2 U.S.C. 441a(c)(2)(B)),
as amended by section 112(d)(1)(B), is amended—
(A) in clause
(i)—
(i) by
striking (d) and inserting (d)(3); and
(ii) by
striking and at the end;
(B) in clause (ii), by
striking the period at the end and inserting ; and; and
(C) by adding at the
end the following new clause:
(iii) for purposes of subsection
(d)(2), calendar year
2016.
.
116.
Establishment
of uniform date for release of payments
(a)
Date for
payments
(1)
In
general
Section 9006(b) of the Internal Revenue Code of 1986 is
amended to read as follows:
(b)
Payments from
the Fund
If the Secretary of the Treasury receives a
certification from the Commission under section 9005 for payment to the
eligible candidates of a political party, the Secretary shall pay to such
candidates out of the fund the amount certified by the Commission on the later
of—
(1) the last Friday
occurring before the first Monday in September; or
(2) 24 hours after
receiving the certifications for the eligible candidates of all major political
parties.
Amounts
paid to any such candidates shall be under the control of such
candidates.
.
(2)
Conforming
Amendment
The first sentence of section 9006(c) of such Code is
amended by striking the time of a certification by the Commission under
section 9005 for payment and inserting the time of making a
payment under subsection (b).
(b)
Time for
certification
Section 9005(a) of the Internal Revenue Code of
1986 is amended by striking 10 days and inserting 24
hours.
117.
Amounts in
Presidential Election Campaign Fund
(a)
Determination of
amounts in fund
Section
9006(c) of the Internal Revenue Code of 1986 is amended by adding at the end
the following new sentence: In making a determination of whether there
are insufficient moneys in the fund for purposes of the previous sentence, the
Secretary shall take into account in determining the balance of the fund for a
presidential election year the Secretary’s best estimate of the amount of
moneys which will be deposited into the fund during the year, except that the
amount of the estimate may not exceed the average of the annual amounts
deposited in the fund during the previous 3 years..
(b)
Special rule for
first campaign cycle under this Act
(1)
In
general
Section 9006 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
(d)
Special
authority To borrow
(1)
In
general
Notwithstanding subsection (c), there are authorized to
be appropriated to the fund, as repayable advances, such sums as are necessary
to carry out the purposes of the fund during the period ending on the first
presidential election occurring after the date of the enactment of this
subsection.
(2)
Repayment of
advances
(A)
In
general
Advances made to the fund shall be repaid, and interest
on such advances shall be paid, to the general fund of the Treasury when the
Secretary determines that moneys are available for such purposes in the
fund.
(B)
Rate of
interest
Interest on advances made to the fund shall be at a rate
determined by the Secretary of the Treasury (as of the close of the calendar
month preceding the month in which the advance is made) to be equal to the
current average market yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable to the anticipated
period during which the advance will be outstanding and shall be compounded
annually.
.
(2)
Effective
date
The amendment made by this subsection shall take effect
January 1, 2014.
118.
Use of general
election payments for general election legal and accounting
compliance
Section 9002(11) of
the Internal Revenue Code of 1986 is amended by adding at the end the following
new sentence: For purposes of subparagraph (A), an expense incurred by a
candidate or authorized committee for general election legal and accounting
compliance purposes shall be considered to be an expense to further the
election of such candidate..
C
Political
conventions
121.
Repeal of
public financing of party conventions
(a)
Repeal
(1)
In
general
Chapter 95 of the Internal Revenue Code of 1986 is
amended by striking section 9008.
(2)
Clerical
amendment
The table of sections of chapter 95 of such Code is
amended by striking the item relating to section 9008.
(b)
Conforming
amendments
(1)
Availability of
payments to candidates
Section 9006(c) of such Code is amended by
striking section 9008(b)(3).
(2)
Reports by
Federal Election Commission
Section 9009 of such Code is
amended—
(A) by adding
and at the end of paragraph (2);
(B) by striking the
semicolon at the end of paragraph (3) and inserting a period; and
(C) by striking
paragraphs (4), (5), and (6).
(3)
Penalties
Section
9012 of such Code, as amended by section 112(d)(4), is amended—
(A) by striking
subsection (a) and redesignating subsections (b) through (g) as subsections (a)
through (f), respectively;
(B) in subsection (b),
as redesignated by subparagraph (A), by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2);
(C) in subsection
(d)(1), as redesignated by subparagraph (A), by striking the second sentence;
and
(D) in subsection
(d)(3), as redesignated by subparagraph (A), by striking , or in
connection with any expense incurred by the national committee of a major party
or minor party with respect to a presidential nominating
convention.
(4)
Availability of
payments from Presidential Primary Matching Account
The second
sentence of section 9037(a) of such Code is amended by striking and for
payments under section 9008(b)(3).
122.
Contributions
for political conventions
(a)
Separate
contribution limitation
(1)
Individuals
(A)
In
general
Section 315(a)(1) of the Federal Election Campaign Act of
1971 (2 U.S.C. 441a(a)(1)) is amended—
(i) by
striking or at the end of subparagraph (C);
(ii) by
striking the period at the end of subparagraph (D) and inserting ;
or; and
(iii) by
adding at the end the following new subparagraph:
(E) to the national
nominating convention account of political committees established and
maintained by a national political party, in any 4-year period ending on the
last day of the calendar year beginning on the day after a general election for
the office of President which, in the aggregate, exceed the dollar amount in
effect under subparagraph
(B);
.
(B)
Conforming
amendment
Section 315(a)(1)(B) of such Act (2 U.S.C.
441a(a)(1)(B)) is amended by inserting (other than to the national
nominating convention accounts of such political committees which are described
in subparagraph (E)) after national political
party.
(2)
Aggregate
contribution limitation
Section 315(a)(3) of such Act (2 U.S.C.
441a(a)(3)) is amended by adding at the end the following new flush
sentence:
The
dollar amount in subparagraph (B) shall be increased by the amount of
contributions (not in excess of the dollar amount in effect under subparagraph
(E)) made to the national nominating convention account of a political
committee established and maintained by a national political party during the
period described in the preceding
sentence.
.
(b)
National
nominating convention account
Section 315(a) of such Act (2
U.S.C. 441a(a)) is amended by adding at the end the following new
paragraph:
(9) For purposes of this subsection, the
national nomination convention account of any political committees established
and maintained by a national political party is a separate account the funds of
which may only be used to defray the costs of the national nominating
convention of such
party.
.
123.
Prohibition on
use of soft money
Section 323
of the Federal Election Campaign Act of 1971 (2 U.S.C. 441i) is amended by
adding at the end the following new subsection:
(g)
National
conventions
Any person described in subsection (a) or (e) shall
not solicit, receive, direct, transfer, or spend any funds in connection with a
presidential nominating convention of any political party, including funds from
or for a host committee, civic committee, municipality, or any other person or
entity spending funds in connection with such a convention, unless such
funds—
(1) are not in excess
of the amounts permitted with respect to contributions to the political
committee established and maintained by a national political party committee
under section 315; and
(2) are not from
sources prohibited by this Act from making contributions in connection with an
election for Federal
office.
.
II
Public financing
for congressional election campaigns
201.
Benefits and
eligibility requirements for Congressional candidates
The Federal
Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended by
adding at the end the following:
V
Public financing
of congressional election campaigns
A
Benefits
501.
Benefits for
participating candidates
(a)
In
general
If a candidate for election to the office of Senator or
Representative in, or Delegate or Resident Commissioner to, the Congress is a
participating candidate under this title with respect to an election for such
office, the candidate shall be entitled to payments under this title, to be
used only for authorized expenditures in connection with the election.
(b)
Amount of
payment
(1)
Match of
qualified contributions
Subject to paragraph (2), the amount of a
payment made to a participating candidate under this title shall be equal to
500 percent of the amount of qualified contributions received by the candidate
since the most recent payment made to the candidate under this title with
respect to the election, as set forth—
(A) in the case of the
first payment made to the candidate with respect to the election, in the report
filed under section 511(a)(2); and
(B) in the case of any
subsequent payment made to the candidate with respect to the election, in the
report of qualified contributions filed under subsection (c).
(2)
Limitation
In
determining the amount of qualified contributions received by a candidate for
purposes of making a payment under this section, there shall be disregarded any
amount of contributions from any person to the extent that the total of the
amounts contributed by such person for the election exceeds $250.
(c)
Reports
(1)
In
general
Each participating candidate shall file reports of
receipts of qualified contributions at such times and in such manner as the
Commission may by regulations prescribe.
(2)
Contents of
reports
Each report under this subsection shall disclose each
qualified contribution received by the candidate since the most recent report
filed under this section, and shall state the aggregate amount of all such
qualified contributions received since the most recent report filed under this
section.
(3)
Frequency of
reports
Reports under this subsection shall be made no more
frequently than—
(A) once every month
until the date that is 90 days before the date of the election;
(B) once every week
after the period described in subparagraph (A) and until the date that is 21
days before the election; and
(C) once every day
after the period described in subparagraph (B).
(4)
Limitation on
regulations
The Commission may not prescribe any regulations with
respect to reporting under this subsection with respect to any election after
the date that is 180 days before the date of such election.
(d)
Limit on
aggregate amount of payments
The aggregate amount of payments
that may be made under this title to a participating candidate during an
election cycle may not exceed—
(1) $2,000,000, in the case of a candidate for
the office of Representative in, or Delegate or Resident Commissioner to, the
Congress; or
(2) $10,000,000, in
the case of a candidate for the office of Senator.
502.
Administration
of payments
(a)
Timing
The Commission shall make payments under
this title to a participating candidate—
(1) in the case of the
first payment made to the candidate with respect to the election, not later
than 48 hours after the date on which such candidate is certified as a
participating candidate under section 513; and
(2) in the case of any subsequent payment made
to the candidate with respect to the election, not later than 5 business days
after the receipt of a report made under section 501(c).
(b)
Method of
payment
The Commission shall distribute funds available to
participating candidates under this title through the use of an electronic
funds exchange or a debit card.
(c)
Appeals
The
Commission shall provide a written explanation with respect to any denial of
any payment under this title and shall provide for the opportunity for review
and reconsideration within 5 business days of such denial.
503.
Qualified
contribution defined
In this
title, the term qualified contribution means, with respect to a
candidate, a contribution that meets each of the following requirements:
(1) The contribution
is in an amount that is not greater than the limit on the amount of a
contribution that may be accepted by a participating candidate from an
individual under section 521(a).
(2) The contribution
is made by an individual who is not otherwise prohibited from making a
contribution under this Act.
(3) The contribution
is not—
(A) forwarded from the contributor by any
person other than an individual; or
(B) received by the candidate or an authorized
committee of the candidate from a contributor or contributors, but credited by
the committee or candidate to another person who is not an individual through
records, designations, or other means of recognizing that a certain amount of
money has been raised by such person.
(4) The contribution
meets the requirements of section 512(b).
B
Eligibility and
certification
511.
Eligibility
(a)
In
general
A candidate for the office of Senator or Representative
in, or Delegate or Resident Commissioner to, the Congress is eligible to be
certified as a participating candidate under this title with respect to an
election if the candidate meets the following requirements:
(1) During the
election cycle for the office involved, the candidate files with the Commission
a statement of intent to seek certification as a participating
candidate.
(2) The candidate meets the qualified
contribution requirements of section 512 and submits to the Commission a report
disclosing each qualified contribution received by the candidate and stating
the aggregate amount of all such qualified contributions received.
(3) Not later than the
last day of the qualifying period, the candidate files with the Commission an
affidavit signed by the candidate and the treasurer of the candidate's
principal campaign committee declaring that the candidate—
(A) has complied and,
if certified, will comply with the contribution and expenditure requirements of
section 521;
(B) if certified, will
run only as a participating candidate for all elections for the office that
such candidate is seeking during the election cycle; and
(C) has either
qualified or will take steps to qualify under State law to be on the
ballot.
(b)
General
election
Notwithstanding subsection (a), a candidate shall not be
eligible to receive a payment under this title for a general election or a
general runoff election unless the candidate’s party nominated the candidate to
be placed on the ballot for the general election or the candidate is otherwise
qualified to be on the ballot under State law.
(c)
Qualifying
period defined
The term qualifying period means,
with respect to any candidate for the office of Senator or Representative in,
or Delegate or Resident Commissioner to, the Congress, the 120-day period
(during the election cycle for such office) which begins on the date on which
the candidate files a statement of intent under section 511(a)(1), except that
such period may not continue after the date that is 60 days before—
(1) the date of the
primary election; or
(2) in the case of a
State that does not hold a primary election, the date prescribed by State law
as the last day to qualify for a position on the general election
ballot.
512.
Qualified
contribution requirements
(a)
Receipt of
qualified contributions
(1)
In
general
A candidate meets the requirements of this section if,
during the qualifying period described in section 511(c), the candidate
obtains—
(A) a single qualified
contribution from a number of individuals equal to or greater than—
(i) in
the case of a candidate for election the office of Representative in, or
Delegate or Resident Commissioner to, the Congress, 400, or
(ii) in the case of a
candidate for the office of Senator, the product of 400 and the number of
Congressional districts in the State involved as of the date of the election;
and
(B) a total dollar
amount of qualified contributions equal to or greater than—
(i) in the case of a candidate for election the
office of Representative in, or Delegate or Resident Commissioner to, the
Congress, $40,000, disregarding any amount of contributions from any person to
the extent that the total of the amounts contributed by such person for the
election exceeds $250, or
(ii) in the case of a candidate for the office
of Senator, the product of $40,000 and the number of Congressional districts in
the State involved as of the date of the election, disregarding any amount of
contributions from any person to the extent that the total of the amounts
contributed by such person for the election exceeds $250.
(2)
Exclusion of
contributions from out-of-State residents
In determining the number of qualified
contributions obtained by a candidate under paragraph (1)(A) and the dollar
amount of qualified contributions obtained by a candidate under paragraph
(1)(B), there shall be excluded any contributions made by an individual who
does not have a primary residence in the State in which such candidate is
seeking election.
(b)
Requirements
relating to receipt of qualified contribution
Each qualified
contribution—
(1) may be made by
means of a personal check, money order, debit card, credit card, or electronic
payment account;
(2) shall be accompanied by a signed statement
containing the contributor’s name and the contributor's address in the State in
which the primary residence of the contributor is located; and
(3) shall be
acknowledged by a receipt that is sent to the contributor with a copy kept by
the candidate for the Commission and a copy kept by the candidate for the
election authorities in the State with respect to which the candidate is
seeking election.
(c)
Prohibiting
payment on commission basis of individuals collecting qualified
contributions
No person may be paid a commission on a per
qualified contribution basis for collecting qualified contributions.
513.
Certification
(a)
Deadline and
Notification
(1)
In
general
Not later than 10 days after a candidate files an
affidavit under section 511(a)(3), the Commission shall—
(A) determine whether
or not the candidate meets the requirements for certification as a
participating candidate;
(B) if the Commission
determines that the candidate meets such requirements, certify the candidate as
a participating candidate; and
(C) notify the
candidate of the Commission's determination.
(2)
Deemed
certification for all elections in election cycle
If the
Commission certifies a candidate as a participating candidate with respect to
the first election of the election cycle involved, the Commissioner shall be
deemed to have certified the candidate as a participating candidate with
respect to all subsequent elections of the election cycle.
(b)
Revocation of
certification
(1)
In
general
The Commission may revoke a certification under
subsection (a) if—
(A) a candidate fails to qualify to appear on
the ballot at any time after the date of certification (other than a candidate
certified as a participating candidate with respect to a primary election who
fails to qualify to appear on the ballot for a subsequent election in that
election cycle); or
(B) a candidate
otherwise fails to comply with the requirements of this title, including any
regulatory requirements prescribed by the Commission.
(2)
Repayment of
benefits
If certification is revoked under paragraph (1), the
candidate shall repay to the Empowering Citizens Payment Account of the
Presidential Election Campaign Fund (established under section 9051 of the
Internal Revenue Code of 1986) an amount equal to the value of benefits
received under this title with respect to the election cycle involved plus
interest (at a rate determined by the Commission) on any such amount
received.
(c)
Participating
Candidate defined
In this title, a participating
candidate means a candidate for the office of Senator or Representative
in, or Delegate or Resident Commissioner to, the Congress who is certified
under this section as eligible to receive benefits under this title.
C
Requirements for
Candidates Certified as Participating Candidates
521.
Restrictions on
certain contributions and expenditures
(a)
50 percent
reduction in otherwise applicable contribution limits
In the case of a candidate who is certified
as a participating candidate under this title with respect to an election, the
limit applicable under paragraph (1)(A) or paragraph (2)(A) of section 315(a)
to the amount of a contribution which may be made to the candidate and any
authorized committee of the candidate with respect to the election shall be
equal to 50% of the amount applicable under such paragraph to a contribution
made to a candidate with respect to the election who is not certified as a
participating candidate under this title.
(b)
Prohibiting
acceptance of contributions bundled by registered lobbyists
A candidate who is certified as a
participating candidate under this title with respect to an election, and any
authorized committee of such a candidate, may not accept any contribution with
respect to the election which is a bundled contribution (as defined in section
304(i)(8)) forwarded by or credited to a person described in section
304(i)(7).
(c)
Limit on
expenditures from personal funds
A candidate who is certified as a
participating candidate under this title may not make expenditures from
personal funds (as defined in section 304(a)(6)(B)) in an aggregate amount
exceeding $50,000 with respect to any election in the election cycle
involved.
(d)
Prohibiting
solicitation of funds for political party committees
A candidate
who is certified as a participating candidate under this title may not solicit
funds for any political committee of a political party, except that the
candidate may solicit funds for a separate account of the committee which is
established under section 315(d)(5).
522.
Remitting
unspent funds after election
(a)
In
general
Not later than the
date that is 60 days after the last election for which a candidate certified as
a participating candidate qualifies to be on the ballot during the election
cycle involved, such participating candidate shall remit to the Commission for
deposit in the Empowering Citizens Payment Account of the Presidential Election
Campaign Fund (established under section 9051 of the Internal Revenue Code of
1986) an amount equal to the lesser of—
(1) the amount of money in the candidate’s
campaign account; or
(2) the amount of the payments received by the
candidate under this title.
(b)
Exception for
expenditures incurred but not paid as of date of remittance
(1)
In
general
Subject to subsection (a), a candidate may withhold from
the amount required to be remitted under paragraph (1) of such subsection the
amount of any authorized expenditures which were incurred in connection with
the candidate’s campaign but which remain unpaid as of the deadline applicable
to the candidate under such subsection, except that any amount withheld
pursuant to this paragraph shall be remitted to the Commission not later than
120 days after the date of the election to which such subsection
applies.
(2)
Documentation
required
A candidate may withhold an amount of an expenditure
pursuant to paragraph (1) only if the candidate submits documentation of the
expenditure and the amount to the Commission not later than the deadline
applicable to the candidate under subsection (a).
D
Administrative
provisions
531.
Administration
by Commission
The Commission
shall prescribe regulations to carry out the purposes of this title, including
regulations to establish procedures for—
(1) verifying the
amount of qualified contributions with respect to a candidate;
(2) effectively and
efficiently monitoring and enforcing the limits on the raising of qualified
contributions;
(3) effectively and
efficiently monitoring and enforcing the limits on the use of personal funds by
participating candidates; and
(4) monitoring the use
of payments under this title through audits of not fewer than
1/3 of all participating candidates or other
mechanisms.
532.
Violations and
penalties
(a)
Civil penalty
for violation of contribution and expenditure requirements
If a candidate who has been certified as a
participating candidate accepts a contribution or makes an expenditure that is
prohibited under section 521, the Commission shall assess a civil penalty
against the candidate in an amount that is not more than 3 times the amount of
the contribution or expenditure. Any amounts collected under this subsection
shall be deposited into the Empowering Citizens Payment Account of the
Presidential Election Campaign Fund (established under section 9051 of the
Internal Revenue Code of 1986).
(b)
Repayment for
improper use of Empowering Citizens Payment Account
(1)
In
general
If the Commission determines that any benefit made
available to a participating candidate was not used as provided for in this
title or that a participating candidate has violated any of the dates for
remission of funds contained in this title, the Commission shall so notify the
candidate and the candidate shall pay to the Empowering Citizens Payment
Account of the Presidential Election Campaign Fund an amount equal to—
(A) the amount of
benefits so used or not remitted, as appropriate; and
(B) interest on any
such amounts (at a rate determined by the Commission).
(2)
Other action not
precluded
Any action by the Commission in accordance with this
subsection shall not preclude enforcement proceedings by the Commission in
accordance with section 309(a), including a referral by the Commission to the
Attorney General in the case of an apparent knowing and willful violation of
this title.
533.
Election cycle
defined
In this title, the
term election cycle means, with respect to an election for the
office of Senator or Representative in, or Delegate or Resident Commissioner
to, the Congress, the period beginning on the day after the date of the most
recent general election for that office (or, if the general election resulted
in a runoff election, the date of the runoff election) and ending on the date
of the next general election for that office (or, if the general election
resulted in a runoff election, the date of the runoff
election).
.
202.
Permitting
unlimited coordinated expenditures by political party committees on behalf of
participating candidates if expenditures are derived from small dollar
contributions
Section 315(d)
of the Federal Election Campaign Act of
1971 (2 U.S.C. 441a(d)) is amended by adding at the end the
following new paragraph:
(5) In determining the amount of expenditures
made by a committee under paragraph (3) in connection with the campaign of a
candidate who is certified as a participating candidate under title V, there
shall be excluded any expenditures which are derived from a separate account
established by the committee for which the only sources of funds are
contributions made during the election cycle in an amount which does not exceed
50% of the amount applicable under subsection (a)(1)(A) to a contribution made
during the cycle to a candidate who is not certified as a participating
candidate under title
V.
.
203.
Prohibiting use
of contributions by participating candidates for purposes other than campaign
for election
Section 313 of
the Federal Election Campaign Act of 1971 (2 U.S.C. 439a) is amended by adding
at the end the following new subsection:
(d)
Restrictions on
Permitted Uses of Funds by Candidates Receiving Matching Public
Funds
Notwithstanding
paragraphs (2), (3), or (4) of subsection (a), if a candidate for election for
the office of Senator or Representative in, or Delegate or Resident
Commissioner to, the Congress is certified as a participating candidate under
title V with respect to the election, any contribution which the candidate is
permitted to accept under such title may be used only for authorized
expenditures in connection with the candidate’s campaign for such
office.
.
III
Coordinated
campaign activity
301.
Clarification
of treatment of coordinated expenditures as contributions to
candidates
(a)
Treatment as
contribution to candidate
Section 301(8)(A) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(8)(A)) is amended—
(1) by striking
or at the end of clause (i);
(2) by striking the
period at the end of clause (ii) and inserting ; or; and
(3) by adding at the
end the following new clause:
(iii) any payment made by any person
(other than a candidate, an authorized committee of a candidate, or a political
committee of a political party) for a coordinated expenditure (as such term is
defined in section 324) which is not otherwise treated as a contribution under
clause (i) or clause
(ii).
.
(b)
Definitions
Section
324 of such Act (2 U.S.C. 441k) is amended to read as follows:
324.
Payments for
coordinated expenditures
(a)
Coordinated
expenditures
(1)
In
general
For purposes of section 301(8)(A)(iii), the term
coordinated expenditure means—
(A) any expenditure,
including a payment for a covered communication described in subsection (c),
which is made in cooperation, consultation, or concert with, or at the request
or suggestion of, a candidate, an authorized committee of a candidate, a
political committee of a political party, or agents of the candidate or
committee, as provided in subsection (b); or
(B) any payment for any communication which
republishes, disseminates, or distributes, in whole or in part, any broadcast
or any written, graphic, or other form of campaign material prepared by the
candidate or committee or by agents of the candidate or committee.
(2)
Exception for
payments for certain communications
A payment for a communication
(including a covered communication described in subsection (c)) shall not be
treated as a coordinated expenditure under this subsection if—
(A) the communication
appears in a news story, commentary, or editorial distributed through the
facilities of any broadcasting station, newspaper, magazine, or other
periodical publication, unless such facilities are owned or controlled by any
political party, political committee, or candidate; or
(B) the communication
constitutes a candidate debate or forum conducted pursuant to regulations
adopted by the Commission pursuant to section 304(f)(3)(B)(iii), or which
solely promotes such a debate or forum and is made by or on behalf of the
person sponsoring the debate or forum.
(b)
Coordination
described
(1)
In
general
For purposes of this
section, a payment is made in cooperation, consultation, or concert
with, or at the request or suggestion of, a candidate, an authorized
committee of a candidate, a political committee of a political party, or agents
of the candidate or committee, if the payment is not made entirely
independently of the candidate, committee, or agents, including a payment which
is made pursuant to any general or particular understanding, or more than
incidental communication with, the candidate, committee, or agents about the
payment.
(2)
No finding of
coordination based solely on sharing of information regarding legislative or
policy position
For purposes of this section, a payment shall not
be considered to be made by a person in cooperation, consultation, or concert
with, or at the request or suggestion of, a candidate or committee, solely on
the grounds that the person or the person’s agent engaged in discussions with
the candidate or committee, or with agents of the candidate or committee,
regarding that person's position on a legislative or policy matter (including
urging the candidate or committee to adopt that person's position), so long as
there is no discussion between the person and the candidate or committee, or
agents of the candidate or committee, regarding the candidate’s or committee’s
campaign advertising, message, strategy, policy, polling, allocation of
resources, fundraising, or campaign operations.
(3)
No effect on
party coordination standard
Nothing in this section shall be
construed to affect the determination of coordination between a candidate and a
political committee of a political party for purposes of section 315(d).
(4)
No safe harbor
for use of firewall
A person
shall be determined to have made a payment in cooperation, consultation, or
concert with, or at the request or suggestion of, a candidate or committee, in
accordance with this section without regard to whether or not the person
established and used a firewall or similar procedures to restrict the sharing
of information between individuals providing services for or on behalf of the
person and the candidate or committee or agents of the candidate or
committee.
(c)
Special rule for
payments by coordinated spenders for covered communications
(1)
Payments deemed
to be made in cooperation, consultation, or concert with,
candidates
For purposes of
this section, if the person who makes a payment for a covered communication is
a coordinated spender with respect to the candidate involved, the person shall
be deemed to have made the payment in cooperation, consultation, or concert
with the candidate.
(2)
Coordinated
spender defined
For purposes of this subsection, the term
coordinated spender means, with respect to a candidate or an
authorized committee of a candidate, a person (other than a political committee
of a political party) for which any of the following applies:
(A) The person is directly or indirectly formed
or established by or at the request or suggestion of, or with the encouragement
of, the candidate or committee or agents of the candidate or committee,
including with the express or tacit approval of the candidate or committee or
agents of the candidate or committee.
(B) The candidate or
committee or agents of the candidate or committee solicit funds or engage in
other fundraising activity on the person’s behalf during the election cycle
involved, including by providing the person with names of potential donors or
other lists to be used by the person in engaging in fundraising activity,
regardless of whether the person pays fair market value for the names or lists
provided.
(C) The person is
established, directed, or managed by any person who, during the election cycle
involved or during the 4-year period ending on the first day of the election
cycle involved, has been employed or retained as a political, media, or
fundraising adviser or consultant for the candidate or committee or for any
other entity directly or indirectly controlled by the candidate or committee,
or has held a formal position with a title for the candidate or
committee.
(D) During the
election cycle involved, the person has had more than incidental communications
with the candidate or committee or agents of the candidate or committee about
the candidate’s campaign needs or activities, or about the person’s possible or
actual campaign activities with respect to the candidate or committee.
(E) The person has
retained the professional services of any person who, during the same election
cycle, has provided or is providing professional services relating to the
campaign to the candidate or committee. For purposes of this subparagraph, the
term professional services includes any services in support of the
candidate’s or committee’s campaign activities, including advertising, message,
strategy, policy, polling, allocation of resources, fundraising, and campaign
operations, but does not include accounting or legal services.
(F) The person is
established, directed, or managed by a member of the immediate family of the
candidate, or (in the case of a person that is a political committee) has
received a contribution from a member of the immediate family of the candidate.
For purposes of this subparagraph, the term immediate family has
the meaning given such term in section 9004(e) of the Internal Revenue Code of
1986.
(d)
Covered
communication defined
(1)
In
general
For purposes of this
section, the term covered communication means, with respect to a
candidate or an authorized committee of a candidate, a public communication (as
defined in section 301(22)) which—
(A) promotes or
supports the candidate, or attacks or opposes an opponent of the candidate
(regardless of whether the communication expressly advocates the election or
defeat of a candidate or contains the functional equivalent of express
advocacy); or
(B) refers to the
candidate or an opponent of the candidate but is not described in subparagraph
(A), but only if the communication is disseminated during the applicable
election period.
(2)
Applicable
election period
In paragraph (1)(B), the applicable
election period with respect to a communication means—
(A) in the case of a
communication which refers to a candidate for the office of President or Vice
President, the period which begins on the date that is 120 days before the date
of the first primary election, preference election, or nominating convention
for nomination for the office of President which is held in any State and ends
with the date of the general election for such office; or
(B) in the case of a
communication which refers to a candidate for any other office, which begins on
the date that is 90 days before the primary or preference election, or
convention or caucus of a political party that has authority to nominate a
candidate, for the office sought by the candidate and ends on the date of the
general election for such office.
(3)
Special rules
for communications involving congressional candidates
For
purposes of this subsection, a public communication shall not be considered to
be a covered communication with respect to a candidate for election for an
office other than the office of President or Vice President unless it is
publicly disseminated or distributed in the jurisdiction of the office the
candidate is seeking.
(e)
Election cycle
defined
In this section, the
term election cycle means, with respect to an election for Federal
office, the period beginning on the day after the date of the most recent
general election for that office (or, if the general election resulted in a
runoff election, the date of the runoff election) and ending on the date of the
next general election for that office (or, if the general election resulted in
a runoff election, the date of the runoff
election).
.
(c)
Effective
date
(1)
Repeal of
existing regulations on coordination
Effective upon the expiration of the 90-day
period which begins on the date of the enactment of this Act—
(A) the regulations on
coordinated communications adopted by the Federal Election Commission which are
in effect on the date of the enactment of this Act (as set forth in 11 CFR Part
109, Subpart C, under the heading Coordination) are repealed;
and
(B) the Federal
Election Commission shall promulgate new regulations on coordinated
communications which reflect the amendments made by this Act.
(2)
Effective
date
The amendments made by this section shall apply with respect
to payments made on or after the expiration of the 120-day period which begins
on the date of the enactment of this Act, without regard to whether or not the
Federal Election Commission has promulgated regulations in accordance with
paragraph (1)(B) as of the expiration of such period.
302.
Clarification
of ban on fundraising for super pacs by federal candidates and
officeholders
Section
323(e)(1) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441i(e)(1)) is
amended—
(1) by striking
or at the end of subparagraph (A);
(2) by striking the
period at the end of subparagraph (B) and inserting ; or;
and
(3) by adding at the
end the following new subparagraph:
(C) solicit, receive, direct, or transfer funds
to or on behalf of any political committee which accepts donations or
contributions that do not comply with the limitations, prohibitions, and
reporting requirements of this Act (or to or on behalf of any account of a
political committee which is established for the purpose of accepting such
donations or contributions), or to or on behalf of any political organization
under section 527 of the Internal Revenue Code of 1986 which accepts such
donations or contributions (other than a committee of a State or local
political party or a candidate for election for State or local
office).
.
IV
Use
of Presidential Election Campaign Fund for public financing of Federal
elections
401.
Use of
Presidential Election Campaign Fund for congressional candidates
Subtitle H of the Internal Revenue Code of
1986 is amended by adding at the end the following new chapter:
97
Empowering
citizens payment account
Sec. 9051. Payments to Congressional
candidates.
9051.
Payments to
Congressional candidates
(a)
Establishment of
account
The Secretary shall
maintain in the Presidential Election Campaign Fund established by section
9006(a), in addition to any account which he maintains under such section, a
separate account to be known as the Empowering Citizens Payment Account. The
Secretary shall deposit into such Account the amount available after the
Secretary determines that amounts for payments under section 9006(c) and for
payments under section 9037(b) are available for such payments.
(b)
Use of Fund for
payments to Congressional candidates participating in public financing
program
The Secretary shall
transfer amounts in the Fund to the Federal Election Commission, at such times
and in such amounts as the Federal Election Commission may certify, for
payments to candidates for election to the office of Senator or Representative
in, or Delegate or Resident Commissioner to, the Congress who are participating
candidates under title V of the Federal Election Campaign Act of
1971.
.
402.
Revisions to
designation of income tax payments by individual taxpayers
(a)
Increase in
amount designated
Section 6096(a) of the Internal Revenue Code of
1986 is amended—
(1) in the first
sentence, by striking $3 each place it appears and inserting
$20; and
(2) in the second
sentence—
(A) by striking
$6 and inserting $40; and
(B) by striking
$3 and inserting $20.
(b)
Indexing
Section
6096 of such Code is amended by adding at the end the following new
subsection:
(d)
Indexing of
amount designated
(1)
In
general
With respect to each taxable year after 2013, each amount
referred to in subsection (a) shall be increased by the percent difference
described in paragraph (2), except that if any such amount after such an
increase is not a multiple of $1, such amount shall be rounded to the nearest
multiple of $1.
(2)
Percent
difference described
The percent difference described in this
paragraph with respect to a taxable year is the percent difference determined
under section 315(c)(1)(A) of the Federal
Election Campaign Act of 1971 with respect to the calendar year
during which the taxable year begins, except that the base year involved shall
be
2012.
.
(c)
Ensuring tax
preparation software does not provide automatic response to designation
question
Section 6096 of such Code, as amended by subsection (b),
is amended by adding at the end the following new subsection:
(e)
Ensuring tax
preparation software does not provide automatic response to designation
question
The Secretary shall promulgate regulations to ensure
that electronic software used in the preparation or filing of individual income
tax returns does not automatically accept or decline a designation of a payment
under this
section.
.
(d)
Public
information program on designation
Section 6096 of such Code, as
amended by subsections (b) and (c), is amended by adding at the end the
following new subsection:
(f)
Public
information program
(1)
In
general
The Federal Election Commission shall conduct a program
to inform and educate the public regarding the purposes of the Presidential
Election Campaign Fund, the procedures for the designation of payments under
this section, and the effect of such a designation on the income tax liability
of taxpayers.
(2)
Use of funds for
program
Amounts in the Presidential Election Campaign Fund shall
be made available to the Federal Election Commission to carry out the program
under this
subsection.
.
(e)
Effective
date
The amendments made by this section shall take effect
January 1, 2014.
403.
Donation to
Presidential Election Campaign Fund
(a)
General
rule
Every taxpayer who makes a return of the tax imposed by
subtitle A of the Internal Revenue Code of 1986 for any taxable year ending
after December 31, 2012, may donate an amount (not less than $1), in addition
to any designation of income tax liability under section 6096 of such Code for
such taxable year, which shall be deposited in the general fund of the
Treasury.
(b)
Manner and time
of designation
Any donation under subsection (a) for any taxable
year—
(1) shall be made at
the time of filing the return of the tax imposed by subtitle A of such Code for
such taxable year and in such manner as the Secretary may by regulation
prescribe, except that—
(A) the designation
for such donation shall be either on the first page of the return or on the
page bearing the taxpayer’s signature, and
(B) the designation
shall be by a box added to the return, and the text beside the box shall
provide:
By checking here, I signify that in addition to
my tax liability (if any), I would like to donate the included payment to be
used exclusively as a contribution to the Presidential Election Campaign
Fund., and
(2) shall be
accompanied by a payment of the amount so designated.
(c)
Treatment of
amounts donated
For purposes of this title, the amount donated by
any taxpayer under subsection (a) shall be treated as a contribution made by
such taxpayer to the United States on the last date prescribed for filing the
return of tax imposed by subtitle A of such Code (determined without regard to
extensions) or, if later, the date the return is filed.
(d)
Transfers to
Presidential Election Campaign Fund
The Secretary shall, from
time to time, transfer to the Presidential Election Campaign Fund established
under section 9006(a) of such Code amounts equal to the amounts donated under
this section.
V
Other
Campaign Finance Reforms
501.
Regulations
with respect to best efforts for identifying persons making
contributions
Not later than 6
months after the date of enactment of this Act, the Federal Election Commission
shall promulgate regulations with respect to what constitutes best efforts
under section 302(i) of the Federal Election Campaign Act of 1971 (2 U.S.C.
432(i)) for determining the identification of persons making contributions to
political committees, including the identifications of persons making
contributions over the Internet or by credit card. Such regulations shall
include a requirement that in the case of contributions made by a credit card,
the political committee shall ensure that the name on the credit card used to
make the contribution matches the name of the person making the
contribution.
502.
Prohibition on
joint fundraising committees
(a)
In
general
Section 302(e) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)) is amended by adding at
the end the following new paragraph:
(6) No authorized committee of a
candidate may establish a joint fundraising committee with a political
committee other than an authorized committee of a
candidate.
.
(b)
Effective
date
The amendments made by this section shall take effect on
January 1, 2014.
503.
Disclosure of
bundled contributions to Presidential campaigns
(a)
In
general
Paragraphs (1) through (3) of section 304(i) of the
Federal Election Campaign Act of 1971 (2 U.S.C. 434(i)) are amended to read as
follows:
(1)
In
general
(A)
Disclosure of
bundled contributions by lobbyists
Each committee described in
paragraph (6) shall include in the first report required to be filed under this
section after each covered period (as defined in paragraph (2)) a separate
schedule setting forth the name, address, and employer of each person
reasonably known by the committee to be a person described in paragraph (7) who
provided 2 or more bundled contributions to the committee in an aggregate
amount greater than the applicable threshold (as defined in paragraph (3))
during the covered period, and the aggregate amount of the bundled
contributions provided by each such person during the covered period.
(B)
Disclosure of
bundled contributions to presidential campaigns
Each committee
which is an authorized committee of a candidate for the office of President or
for nomination to such office shall include in the first report required to be
filed under this section after each covered period (as defined in paragraph
(2)) a separate schedule setting forth the name, address, and employer of each
person who provided 2 or more bundled contributions to the committee in an
aggregate amount greater than the applicable threshold (as defined in paragraph
(3)) during the election cycle, and the aggregate amount of the bundled
contributions provided by each such person during the covered period and such
election cycle. Such schedule shall include a separate listing of the name,
address, and employer of each person included on such schedule who is
reasonably known by the committee to be a person described in paragraph (7),
together with the aggregate amount of bundled contributions provided by such
person during such period and such cycle.
(2)
Covered
period
In this subsection, a covered period
means—
(A) with respect to a
committee which is an authorized committee of a candidate for the office of
President or for nomination to such office—
(i) the 4-year
election cycle ending with the date of the election for the office of the
President; and
(ii) any reporting
period applicable to the committee under this section during which any person
provided 2 or more bundled contributions to the committee; and
(B) with respect to
any other committee—
(i) the period
beginning January 1 and ending June 30 of each year;
(ii) the period
beginning July 1 and ending December 31 of each year; and
(iii) any reporting
period applicable to the committee under this section during which any person
described in paragraph (7) provided 2 or more bundled contributions to the
committee in an aggregate amount greater than the applicable threshold.
(3)
Applicable
threshold
(A)
In
general
In this subsection, the applicable threshold
is—
(i) $50,000 in the
case of a committee which is an authorized committee of a candidate for the
office of President or for nomination to such office; and
(ii) $15,000 in the
case of any other committee.
In
determining whether the amount of bundled contributions provided to a committee
by a person exceeds the applicable threshold, there shall be excluded any
contribution made to the committee by the person or the person's spouse.
(B)
Indexing
In
any calendar year after 2017, section 315(c)(1)(B) shall apply to each amount
applicable under subparagraph (A) in the same manner as such section applies to
the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and
(h) of such section, except that for purposes of applying such section to the
amount applicable under subparagraph (A), the base period shall
be 2016.
(C)
Aggregation of
contributions from cosponsors of fundraising event
For purposes
of determining the amount of bundled contributions provided by a person to a
committee which were received by the person at a fundraising event sponsored by
the person, or in response to an invitation to attend a fundraising event
sponsored by the person, each person who is a sponsor of the event shall be
considered to have provided to the committee the aggregate amount of all
bundled contributions which were provided to the committee by all sponsors of
the
event.
.
(b)
Conforming
amendments
Section 304(i) of such Act (2 U.S.C. 434(i)) is
amended—
(1) in paragraph (5),
by striking described in paragraph (7) each place it appears in
subparagraphs (C) and (D);
(2) in paragraph (6),
by inserting (other than a candidate for the office of President or for
nomination to such office) after candidate; and
(3) in paragraph
(8)(A)—
(A) by striking
, with respect to a committee described in paragraph (6) and a person
described in paragraph (7), and inserting , with respect to a
committee described in paragraph (6) or an authorized committee of a candidate
for the office of President or for nomination to such office,;
(B) by striking
by the person in clause (i) thereof and inserting by any
person; and
(C) by striking
the person each place it appears in clause (ii) and inserting
such person.
(c)
Effective
date
The amendments made by this section shall apply with respect
to reports filed under section 304 of the Federal Election Campaign Act of 1971
after January 1, 2014.
504.
Judicial review
of actions related to campaign finance laws
(a)
In
general
Title IV of the Federal Election Campaign Act of 1971 (2
U.S.C. 451 et seq.) is amended by inserting after section 406 the following new
section:
407.
Judicial
review
(a)
In
general
If any action is brought for declaratory or injunctive
relief to challenge the constitutionality of any provision of this Act or of
chapter 95 or 96 of the Internal Revenue Code of 1986, or is brought to with
respect to any action of the Commission under chapter 95 or 96 of the Internal
Revenue Code of 1986, the following rules shall apply:
(1) The action shall
be filed in the United States District Court for the District of Columbia and
an appeal from the decision of the district court may be taken to the Court of
Appeals for the District of Columbia Circuit.
(2) In the case of an
action relating to declaratory or injunctive relief to challenge the
constitutionality of a provision—
(A) a copy of the
complaint shall be delivered promptly to the Clerk of the House of
Representatives and the Secretary of the Senate; and
(B) it shall be the
duty of the United States District Court for the District of Columbia, the
Court of Appeals for the District of Columbia, and the Supreme Court of the
United States to advance on the docket and to expedite to the greatest possible
extent the disposition of the action and appeal.
(b)
Intervention by
Members of Congress
In any action in which the constitutionality
of any provision of this Act or chapter 95 or 96 of the Internal Revenue Code
of 1986 is raised, any member of the House of Representatives (including a
Delegate or Resident Commissioner to the Congress) or Senate shall have the
right to intervene either in support of or opposition to the position of a
party to the case regarding the constitutionality of the provision. To avoid
duplication of efforts and reduce the burdens placed on the parties to the
action, the court in any such action may make such orders as it considers
necessary, including orders to require interveners taking similar positions to
file joint papers or to be represented by a single attorney at oral
argument.
(c)
Challenge by
Members of Congress
Any Member of Congress may bring an action,
subject to the special rules described in subsection (a), for declaratory or
injunctive relief to challenge the constitutionality of any provision of this
Act or chapter 95 or 96 of the Internal Revenue Code of
1986.
.
(b)
Conforming
amendments
(1)
In
general
(A) Section 310 of the
Federal Election Campaign Act of 1971 (2 U.S.C. 437h) is repealed.
(B) Section 9011 of
the Internal Revenue Code of 1986 is amended to read as follows:
9011.
Judicial
review
For provisions relating
to judicial review of certifications, determinations, and actions by the
Commission under this chapter, see section 407 of the Federal Election Campaign
Act of
1971.
.
(C) Section 9041 of
the Internal Revenue Code of 1986 is amended to read as follows:
9041.
Judicial
review
For provisions relating
to judicial review of actions by the Commission under this chapter, see section
407 of the Federal Election Campaign Act of
1971.
.
(D) Section 403 of the
Bipartisan Campaign Finance Reform Act of 2002 (2 U.S.C. 437h note) is
repealed.
(c)
Effective
date
The amendments made by this section shall apply to actions
brought on or after January 1, 2014.
VI
Severability;
Effective Date
601.
Severability
If any provision of this Act or amendment
made by this Act, or the application of a provision or amendment to any person
or circumstance, is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.
602.
Effective
date
Except as otherwise
provided in this Act, the amendments made by this Act shall apply with respect
to elections occurring after January 1, 2014.