SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Free Speech Protection Act 
of 2006''.

SEC. 2. EXCLUSION OF INTERNET COMMUNICATIONS FROM TREATMENT AS PUBLIC 
              COMMUNICATIONS.

    Section 301(22) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(22)) is amended--
            (1) by striking ``The term'' and inserting ``(A) The 
        term''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) The term `public communication' does not 
                include any communication made over the Internet, other 
                than any of the following:
                            ``(i) Any communication placed by a person 
                        on another person's website, if the aggregate 
                        amount spent for such communications exceeds 
                        $5,000 during the calendar year.
                            ``(ii) Any communication made by a State, 
                        district, or local committee of a political 
                        party described in section 323(b).
                            ``(iii) A communication made by any 
                        political committee.
                            ``(iv) A communication made by any person 
                        described in section 316 (other than a 
                        corporation described in such section whose 
                        principal purpose is operating an online 
                        discussion forum or disseminating social or 
                        political ideas or commentary through operation 
                        of a website, web log, podcast, or other 
                        similar forms of Internet communication and 
                        which is not established, financed, maintained 
                        or controlled by a labor organization or by 
                        another corporation without such a principal 
                        purpose).''.

SEC. 3. EXCLUSION OF INTERNET COMMUNICATIONS FROM CERTAIN REPORTING AND 
              DISCLAIMER REQUIREMENTS.

    (a) Reports by Persons Making Independent Expenditures.--Section 
304(c)(1) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434(c)(1)) is amended--
            (1) by striking ``(c)(1)'' and inserting ``(c)(1)(A)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) In the case of an individual, in determining the aggregate 
amount or value of independent expenditures made by the individual in a 
calendar year for purposes of subparagraph (A), there shall be excluded 
up to an annual aggregate amount of $5,000 for communications made over 
the Internet.''.
    (b) Disclaimers on Unauthorized Advertisements and Solicitations.--
Section 318(a)(3) of such Act (2 U.S.C. 441d(a)(3)) is amended by 
striking the period at the end and inserting the following: ``, except 
that no such information shall be required in any communication made 
over the Internet by an individual during any calendar year for which 
the aggregate amount paid by such individual for such communications 
does not exceed $5,000.''.

SEC. 4. EXCLUSION OF EXPENDITURES ON INTERNET COMMUNICATIONS FROM 
              DETERMINATION OF THRESHOLD FOR REGISTRATION OF POLITICAL 
              COMMITTEES.

    Section 301(4) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431(4)) is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii);
            (2) by striking ``(4)'' and inserting ``(4)(A)''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) In determining the amount of contributions or 
                expenditures made for purposes of this paragraph, there 
                shall be excluded up to an annual aggregate amount of 
                $10,000 for Internet-related expenses such as expenses 
                for Internet access and hosting services, creation of 
                an Internet site, and creating, hosting, or 
                participating in an online discussion using blogging or 
                other software.''.

SEC. 5. INCLUSION OF ONLINE MEDIA WITHIN EXEMPTION FROM TREATMENT AS 
              EXPENDITURES OF STORIES AND COMMENTARIES APPEARING IN 
              MEDIA.

    Section 301(9)(B)(i) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 431(9)(B)(i)) is amended by striking ``or other periodical 
publication,'' and inserting the following: ``other periodical 
publication, or Internet site or service,''.

SEC. 6. INDEXING OF AMOUNTS.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) is amended by adding at the end the following new section:

                     ``indexing of certain amounts

    ``Sec. 325.  (a) Indexing.--
            ``(1) In general.--In any calendar year after 2008, each of 
        the following amounts shall be increased by the inflation 
        adjustment described in subsection (b):
                    ``(A) The amount referred to in section 301(4)(B) 
                (relating to the exclusion of expenditures on Internet 
                communications from the determination of the threshold 
                for registration of political committees).
                    ``(B) The amount referred to in section 
                301(22)(B)(i) (relating to the exclusion of Internet 
                communications from treatment as public 
                communications).
                    ``(C) The amount referred to in section 
                304(c)(1)(B) (relating to the exclusion of expenditures 
                on Internet communications from the determination of 
                the threshold for the filing of reports on independent 
                expenditures).
                    ``(D) The amount referred to in section 318(a)(3) 
                (relating to disclaimers in communications made over 
                the Internet).
            ``(2) Application in odd-numbered years.--Increases made 
        under this subsection shall only be made in odd-numbered years 
        and such increases shall remain in effect for the 2-year period 
        beginning on the first day following the date of the last 
        general election in the year preceding the year in which the 
        amount is increased and ending on the date of the next general 
        election.
    ``(b) Inflation Adjustment Described.--In subsection (a), the 
`inflation adjustment' is the percent difference determined under 
section 315(c)(1)(A), except that for purposes of this subsection, the 
base period under such section shall be 2007.''.

SEC. 7. PUBLICATION BY FEDERAL ELECTION COMMISSION OF GUIDELINE ON 
              INDIVIDUAL INTERNET ACTIVITIES.

    Not later than 150 days after the date of the enactment of this 
Act, the Federal Election Commission shall publish a single policy 
guideline for the use of individuals engaging in online communications 
which describes in plain language the rules and regulations applicable 
under the Federal Election Campaign Act of 1971 to individual Internet 
activity.

SEC. 8. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
the enactment of this Act.
Internet Free Speech Protection Act of 2006 - Amends the Federal Election Campaign Act of 1971 (FECA) to exclude any communication made over the Internet, with certain exceptions, from the meaning of a public communication subject to FECA requirements.

Subjects to FECA requirements, however, any communication: (1) placed by a person on another persons website, if the aggregate amount spent for such communications exceeds $5,000 during the calendar year; (2) made by a state, district, or local committee of a political party; (3) made by any political committee; or (4) made by any person other than a corporation whose principal purpose is operating an online discussion forum, or disseminating social or political ideas or commentary through operation of a website, web log, podcast, or other similar forms of Internet communication, and which is not established, financed, maintained or controlled by a labor organization or by another corporation without such a principal purpose.

Revises the reporting requirements for individuals making independent expenditures in a calendar year to exclude from the aggregate amount or value of such expenditures an annual aggregate of $5,000 for communications made over the Internet.

Revises the requirements for disclaimers on unauthorized advertisements and solicitations to exempt from such requirements any communication made over the Internet by an individual during any calendar year for which the aggregate amount paid by the individual for such communications does not exceed $5,000.

Revises requirements for the determination of what constitutes a political committee on the basis of certain expenditures. Excludes from the determination of such expenditures up to an annual aggregate amount of $10,000 for Internet-related expenses, such as those for Internet access and hosting services, creation of an Internet site, and creating, hosting, or participating in an online discussion using blogging or other software.

Revises the meaning of expenditure to exclude expenses for any news story, commentary, or editorial distributed through an Internet site or service from treatment as expenditures of stories and commentaries appearing in media, unless such media are owned or controlled by any political party, political committee, or candidate.

Requires an annual inflation adjustment to any amounts relating to disclaimers in communications made over the Internet or to the exclusion of: (1) expenditures on Internet communications from the determination of the threshold for registration of political committees; (2) Internet communications from treatment as public communications; or (3) expenditures on Internet communications from the determination of the threshold for the filing of reports on independent expenditures.

Directs the Federal Election Commission to publish a single policy guideline in plain language for the use of individuals engaging in online communications about FECA rules and regulations applicable to individual Internet activity.
To amend the Federal Election Campaign Act of 1971 to exclude certain communications made over the Internet from certain requirements of such Act, and for other purposes.