To amend the Federal Election Campaign Act of 1971 to provide matching funds for candidates in elections for the House of Representatives, and for other purposes.

Summary: Campaign Reform Act of 2006 - Amends the Federal Election Campaign Act of 1971 to entitle an eligible House of Representatives candidate to receive payments in support of the candidate's election campaign in an amount equal to the amount of qualified contributions received, not to exceed the aggregate matching payment limit of $175,000, subject to specified adjustments.

Establishes the House of Representatives Election Campaign Account, as a separate account in the Presidential Election Campaign Fund, from which all payments under this Act shall be made.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Reform Act of 2006''.

SEC. 2. MATCHING FUNDS FOR HOUSE CANDIDATES.

    (a) Matching Funds.--The Federal Election Campaign Act of 1971 (2 
U.S.C. 431 et seq.) is amended by adding at the end the following new 
title:

             ``TITLE V--MATCHING FUNDS FOR HOUSE CANDIDATES

``SEC. 501. AVAILABILITY OF MATCHING FUNDS.

    ``(a) In General.--An eligible House of Representatives candidate 
shall be entitled to receive payments under this title in support of 
the candidate's campaign for election in an amount equal to the amount 
of qualified contributions received by the candidate, but not to exceed 
the aggregate matching payment limit under subsection (b).
    ``(b) Aggregate Matching Payment Limit for Candidate.--The 
aggregate matching payment limit with respect to an eligible House of 
Representatives candidate in an election is $175,000, subject to the 
following adjustments:
            ``(1) If any opponent of the candidate who is not an 
        eligible House of Representatives candidate receives 
        contributions with respect to the election in an aggregate 
        amount exceeding $500,000, the aggregate matching payment limit 
        shall be equal to the aggregate amount of contributions 
        received by the opponent.
            ``(2) In the case of an election which is a contested 
        primary election (as determined by the Commission), if any 
        opponent of the candidate receives contributions in an 
        aggregate amount exceeding $50,000, the aggregate matching 
        payment limit shall be increased by $75,000.
            ``(3) In the case of an election which is a runoff 
        election, the aggregate matching payment limit shall be 
        increased by $50,000.
    ``(c) Qualified Contribution Defined.--In this section, the term 
`qualified contribution' means, with respect to a candidate for an 
election, a contribution--
            ``(1) which is made by an individual residing in the State 
        in which the candidate seeks election whose aggregate 
        contributions to the candidate for the election do not exceed 
        $500; and
            ``(2) which is in the form of a gift of money made by a 
        written instrument that identifies the individual making the 
        contribution.
    ``(d) Source of Payments.--All payments made under this title shall 
be made from the House of Representatives Election Campaign Account 
described in section 503.

``SEC. 502. ELIGIBLE HOUSE OF REPRESENTATIVES CANDIDATE DEFINED.

    ``(a) In General.--For purposes of this title, an `eligible House 
of Representatives candidate' means a candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress who files a statement of participation with the Commission in 
which the candidate certifies each of the following:
            ``(1) In the election cycle, the candidate has received 
        $10,000 in contributions from individuals.
            ``(2) The candidate qualifies for the primary or general 
        election ballot.
            ``(3) The candidate has an opponent on the primary or 
        general election ballot.
            ``(4) The candidate will not receive contributions or make 
        expenditures with respect to the election in excess of--
                    ``(A) $500,000; or
                    ``(B) the aggregate matching payment limit for the 
                candidate under section 501(b),
        whichever is greater.
            ``(5) The candidate agrees to cooperate in the case of any 
        audit by the Commission by furnishing such campaign records and 
        other information as the Commission may require.
    ``(b) Repayment of Matching Funds.--If an eligible House of 
Representatives candidate receives contributions or makes expenditures 
in excess of the spending limit specified in subsection (a)(4), the 
candidate shall repay the House of Representatives Election Campaign 
Account described in section 503 an amount equal to the amounts spent 
in excess of such limit.

``SEC. 503. HOUSE OF REPRESENTATIVES ELECTION CAMPAIGN ACCOUNT.

    ``(a) Account.--
            ``(1) In general.--The Secretary shall maintain in the 
        Presidential Election Campaign Fund established by section 
        9006(a) of the Internal Revenue Code of 1986, in addition to 
        any other accounts maintained under such section, a separate 
        account to be known as the House of Representatives Election 
        Campaign Account.
            ``(2) Amounts.--The Secretary shall deposit in the Account, 
        for use by eligible House of Representatives candidates--
                    ``(A) the amounts available after the Secretary 
                determines that the amounts in the Presidential 
                Election Campaign Fund necessary for payments under 
                subtitle H of the Internal Revenue Code of 1986 are 
                adequate;
                    ``(B) any repayments made under section 502(b); and
                    ``(C) any amount appropriated pursuant to the 
                supplemental authorization described in paragraph (3).
            ``(3) Supplemental authorization.--If the Secretary issues 
        a certification that amounts in the Account will not be 
        adequate to make payments under this title during a fiscal 
        year, there are authorized to be appropriated for such fiscal 
        year for deposit in the Account such sums as may be necessary 
        to ensure that amounts in the Account will be adequate to make 
        such payments (as provided by the Secretary in the 
        certification).
            ``(4) Availability.--All amounts in the Account shall 
        remain available without fiscal year limitation.
    ``(b) Certification and Payment.--
            ``(1) Certification.--Except as provided in paragraphs (2) 
        and (3), not later than 5 days after receiving a request for 
        payment under this title from an eligible House of 
        Representatives candidate, the Commission shall submit to the 
        Secretary of the Treasury a certification for payment of the 
        amount to which a candidate is entitled under section 501. Upon 
        receipt of such a certification, the Secretary shall promptly 
        pay to the candidate from the House of Representatives Election 
        Campaign Account maintained pursuant to subsection (a) the 
        amount certified by the Commission.
            ``(2) Payments.--The initial payment under this section to 
        an eligible candidate shall be $10,000. All payments shall be--
                    ``(A) made not later than 48 hours after 
                certification under paragraph (1); and
                    ``(B) subject to proportional reduction in the case 
                of an insufficient balance in the Account maintained 
                pursuant to subsection (a).
            ``(3) Incorrect request.--If the Commission determines that 
        any portion of a request is incorrect, the Commission shall 
        withhold the certification for that portion only and inform the 
        candidate as to how the candidate may correct the request.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to elections occurring after December 2006.