To amend the Federal Election Campaign Act of 1971 to provide for limitations on expenditures in elections for the House of Representatives.

Summary: Restoring Confidence Through Smarter Campaigns Act - Amends the Federal Election Campaign Act of 1971 to limit expenditures by candidates for the House of Representatives to $500,000 during the election cycle ($250,000 for a primary election and $250,000 for a general election). Sets at $250,000 the maximum amount of expenditures which may be made for a runoff election ($125,000 for a primary runoff election and $125,000 for a general runoff election). Excludes from such limits expenditures for legal services. Provides for indexing such amounts for inflation.

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Restoring 
Confidence Through Smarter Campaigns Act''.
    (b) Findings.--Congress finds the following:
            (1) The Supreme Court decision in Buckley v. Valeo failed 
        to recognize that unlimited spending on elections has a 
        corrosive effect on the electoral process and on public 
        confidence in the integrity of the electoral process.
            (2) Restoring Congress's regulatory power over campaign 
        expenditures will level the playing field by creating a 
        realistic opportunity for more Americans to seek Federal office 
        and by encouraging elections that are more competitive.
            (3) Limiting the need for incessant fundraising by Members 
        of Congress may restore the public's confidence in both the 
        electoral process and in the accountability of Members to the 
        constituents who elect them.

SEC. 2. EXPENDITURE LIMITATIONS IN HOUSE ELECTIONS.

    (a) Establishment of Limitations.--Section 315 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a) is amended by adding at 
the end the following new subsection:
    ``(k) Expenditure Limitations in House Elections.--
            ``(1) Limitations.--
                    ``(A) In general.--A candidate for election for the 
                office of Representative in, or Delegate or Resident 
                Commissioner to, the Congress and the authorized 
                committees of the candidate may not make expenditures 
                which in the aggregate exceed $500,000 during the 
                election cycle, of which--
                            ``(i) not more than $250,000 may be 
                        attributable to expenditures made with respect 
                        to a primary election; and
                            ``(ii) not more than $250,000 may be 
                        attributable to expenditures made with respect 
                        to a general election.
                    ``(B) Increase in limitations for runoff 
                elections.--In the case of a candidate in a runoff 
                election, the candidate and the authorized committees 
                of the candidate may make an additional amount of 
                expenditures which in the aggregate do not exceed 
                $250,000, of which--
                            ``(i) not more than $125,000 may be 
                        attributable to expenditures made with respect 
                        to a primary runoff election; and
                            ``(ii) not more than $125,000 may be 
                        attributable to expenditures made with respect 
                        to a general runoff election.
            ``(2) Exclusion of expenditures for legal services.--In 
        determining the amount of expenditures made for purposes of 
        this subsection, there shall be excluded any expenditures made 
        for legal services in connection with the campaign.
            ``(3) Penalties.--Any candidate who makes expenditures in 
        an election in excess of the limit applicable to the election 
        under paragraph (1) shall pay to the Commission a civil money 
        penalty in an amount determined as follows:
                    ``(A) If the amount of expenditures in excess of 
                the limit is equal to or less than 2.5 percent of the 
                amount of the limit, the penalty shall be equal to the 
                amount of the excess expenditures.
                    ``(B) If the amount of expenditures in excess of 
                the limit is greater than 2.5 percent but equal to or 
                less than 5 percent of the amount of the limit, the 
                penalty shall be equal to 300 percent of the amount of 
                the excess expenditures.
                    ``(C) If the amount of expenditures in excess of 
                the limit is greater than 5 percent of the amount of 
                the limit, the penalty shall be equal to the sum of 300 
                percent of the amount of the excess expenditures plus 
                an additional penalty determined by the Commission.''.
    (b) Indexing of Amounts.--
            (1) Application of indexing.--Section 315(c)(1) of such Act 
        (2 U.S.C. 441a(c)(1)) is amended--
                    (A) in subparagraph (B)(i), by striking ``or (h)'' 
                and inserting ``(h), or (k)''; and
                    (B) in subparagraph (C), by striking ``and (h)'' 
                and inserting ``(h), and (k)''.
            (2) Determination of base year.--Section 315(c)(2)(B) of 
        such Act (2 U.S.C. 441a(c)(2)(B)) is amended--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by striking the period at the end of clause 
                (ii) and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) for purposes of subsection (k), 
                        calendar year 2011.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to elections held on or after January 1, 2011.