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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 20 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                 H. R. 20

   To reform the financing of Congressional elections by broadening 
     participation by small dollar donors, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 2014

  Mr. Sarbanes (for himself, Ms. Pelosi, Mr. Barber, Mrs. Beatty, Mr. 
    Bera of California, Mr. Bishop of New York, Mr. Blumenauer, Ms. 
 Bonamici, Mr. Brady of Pennsylvania, Mr. Braley of Iowa, Mr. Carney, 
 Mr. Cartwright, Mr. Castro of Texas, Mr. Cicilline, Ms. Clarke of New 
 York, Mr. Clay, Mr. Cleaver, Mr. Clyburn, Mr. Cohen, Mr. Conyers, Mr. 
    Cooper, Mr. Courtney, Mr. Crowley, Mr. Cummings, Mrs. Davis of 
  California, Mr. DeFazio, Mr. Delaney, Ms. DeLauro, Ms. DelBene, Mr. 
Deutch, Mr. Dingell, Mr. Doggett, Ms. Edwards, Mr. Ellison, Mr. Engel, 
 Ms. Eshoo, Ms. Esty, Mr. Farr, Ms. Frankel of Florida, Ms. Fudge, Ms. 
Gabbard, Mr. Garcia, Mr. Grayson, Mr. Gene Green of Texas, Mr. Al Green 
  of Texas, Mr. Grijalva, Mr. Gutierrez, Mr. Hastings of Florida, Mr. 
 Himes, Mr. Holt, Mr. Honda, Mr. Horsford, Mr. Hoyer, Mr. Huffman, Mr. 
  Israel, Ms. Jackson Lee, Mr. Jeffries, Mr. Johnson of Georgia, Ms. 
  Eddie Bernice Johnson of Texas, Mr. Jones, Ms. Kaptur, Ms. Kelly of 
   Illinois, Mr. Kilmer, Mr. Kind, Mrs. Kirkpatrick, Ms. Kuster, Mr. 
Langevin, Mr. Larson of Connecticut, Ms. Lee of California, Mr. Lewis, 
  Mr. Loebsack, Ms. Lofgren, Mr. Lowenthal, Mr. Ben Ray Lujan of New 
Mexico, Ms. Michelle Lujan Grisham of New Mexico, Mr. Maffei, Mr. Sean 
 Patrick Maloney of New York, Mrs. Carolyn B. Maloney of New York, Ms. 
   Matsui, Ms. McCollum, Mr. McDermott, Mr. McGovern, Ms. Meng, Mr. 
  Michaud, Mr. George Miller of California, Ms. Moore, Mr. Moran, Mr. 
Murphy of Florida, Mr. Nadler, Mr. Nolan, Ms. Norton, Mr. O'Rourke, Mr. 
    Pallone, Mr. Pascrell, Mr. Payne, Mr. Perlmutter, Mr. Peters of 
 California, Mr. Peters of Michigan, Ms. Pingree of Maine, Mr. Pocan, 
 Mr. Polis, Mr. Quigley, Mr. Rangel, Mr. Rush, Ms. Linda T. Sanchez of 
 California, Ms. Schakowsky, Ms. Schwartz, Mr. Scott of Virginia, Mr. 
 Serrano, Ms. Shea-Porter, Mr. Sherman, Mr. Sires, Ms. Slaughter, Mr. 
   Smith of Washington, Ms. Speier, Mr. Swalwell of California, Mr. 
    Takano, Mr. Tierney, Mr. Tonko, Mr. Van Hollen, Mr. Vargas, Ms. 
Velazquez, Mr. Walz, Ms. Wasserman Schultz, Mr. Waxman, Mr. Welch, Mr. 
    Yarmuth, Ms. Brownley of California, and Ms. Castor of Florida) 
 introduced the following bill; which was referred to the Committee on 
 House Administration, and in addition to the Committees on Energy and 
Commerce and 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 reform the financing of Congressional elections by broadening 
     participation by small dollar donors, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government By the 
People Act of 2014''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--PARTICIPATION IN FUNDING OF ELECTIONS

                    Subtitle A--My Voice Tax Credit

Sec. 101. Refundable tax credit for congressional House campaign 
                            contributions.
               Subtitle B--My Voice Voucher Pilot Program

Sec. 111. Establishment of pilot program.
Sec. 112. Voucher program described.
Sec. 113. Reports.
Sec. 114. Election cycle defined.
  TITLE II--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

Sec. 201. Benefits and eligibility requirements for candidates.
 ``TITLE V--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

        ``Sec. 501. Benefits for participating candidates.
        ``Sec. 502. Procedures for making payments.
        ``Sec. 503. Use of funds.
        ``Sec. 504. Qualified small dollar contributions described.
              ``Subtitle B--Eligibility and Certification

        ``Sec. 511. Eligibility.
        ``Sec. 512. Qualifying requirements.
        ``Sec. 513. Certification.
 ``Subtitle C--Requirements for Candidates Certified as Participating 
                               Candidates

        ``Sec. 521. Contribution and expenditure requirements.
        ``Sec. 522. Administration of campaign.
        ``Sec. 523. Preventing unnecessary spending of public funds.
        ``Sec. 524. Remitting unspent funds after election.
                  ``Subtitle D--Enhanced Match Support

        ``Sec. 531. Enhanced support for general election.
        ``Sec. 532. Eligibility.
        ``Sec. 533. Amount.
        ``Sec. 534. Waiver of authority to retain portion of unspent 
                            funds after election.
                ``Subtitle E--Administrative Provisions

        ``Sec. 541. Freedom From Influence Fund.
        ``Sec. 542. Government by the People Oversight Commission.
        ``Sec. 543. Administration by Commission.
        ``Sec. 544. Violations and penalties.
        ``Sec. 545. Appeals process.
        ``Sec. 546. Indexing of amounts.
        ``Sec. 547. Election cycle defined.
Sec. 202. Contributions and expenditures by multicandidate and 
                            political party political committees on 
                            behalf of participating candidates.
Sec. 203. Prohibiting use of contributions by participating candidates 
                            for purposes other than campaign for 
                            election.
                TITLE III--OTHER ADMINISTRATIVE REFORMS

Sec. 301. Expanding requirement to disclose bundlers who are registered 
                            lobbyists to all bundlers.
Sec. 302. Petition for certiorari.
Sec. 303. Filing by all candidates with Commission.
Sec. 304. Electronic filing of FEC reports.
Sec. 305. Effective date.
          TITLE IV--EXPANDING CANDIDATE ACCESS TO ADVERTISING

Sec. 401. Broadcasts by candidates.
         TITLE V--CONTRIBUTIONS TO FREEDOM FROM INFLUENCE FUND

Sec. 501. Voluntary contributions to the Freedom From Influence Fund.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Severability.

             TITLE I--PARTICIPATION IN FUNDING OF ELECTIONS

                    Subtitle A--My Voice Tax Credit

SEC. 101. REFUNDABLE TAX CREDIT FOR CONGRESSIONAL HOUSE CAMPAIGN 
              CONTRIBUTIONS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 36B the following new section:

``SEC. 36C. CREDIT FOR CONGRESSIONAL HOUSE CAMPAIGN CONTRIBUTIONS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle an amount 
equal to 50 percent of the qualified My Voice Federal congressional 
House campaign contributions paid or incurred by the taxpayer during 
the taxable year.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The amount of qualified My Voice 
        Federal congressional House campaign contributions taken into 
        account under subsection (a) for the taxable year shall not 
        exceed $50 (twice such amount in the case of a joint return).
            ``(2) Limitation on contributions to federal congressional 
        house candidates.--No credit shall be allowed under this 
        section to any taxpayer for any taxable year if such taxpayer 
        made aggregate contributions in excess of $300 during the 
        taxable year to--
                    ``(A) any single Federal congressional House 
                candidate, or
                    ``(B) any political committee established and 
                maintained by a national political party.
            ``(3) Provision of information.--No credit shall be allowed 
        under this section to any taxpayer unless the taxpayer provides 
        the Secretary with such information as the Secretary may 
        require to verify the taxpayer's eligibility for the credit and 
        the amount of the credit for the taxpayer.
            ``(4) Ineligibility of individuals receiving my voice 
        vouchers.--
                    ``(A) In general.--No credit shall be allowed under 
                this section with respect to any individual for any 
                taxable year which occurs during an election cycle in 
                which such individual received a My Voice Voucher under 
                subtitle B of title I of the Government By the People 
                Act of 2014. In the case of a joint return with respect 
                to which this paragraph applies to one of the spouses, 
                such return shall not be treated as a joint return for 
                purposes of determining the dollar limitation under 
                paragraph (1).
                    ``(B) Election cycle defined.--In subparagraph (A), 
                the term `election cycle' has the meaning given such 
                term in section 114 of the Government By the People Act 
                of 2014.
    ``(c) Qualified My Voice Federal Congressional House Campaign 
Contributions.--For purposes of this section, the term `My Voice 
Federal congressional House campaign contribution' means any 
contribution of cash by an individual to a Federal congressional House 
candidate or to a political committee established and maintained by a 
national political party if such contribution is not prohibited under 
the Federal Election Campaign Act of 1971.
    ``(d) Federal Congressional House Candidate.--For purposes of this 
section--
            ``(1) In general.--The term `Federal congressional House 
        candidate' means any candidate for election to the office of 
        Representative in, or Delegate or Resident Commissioner to, the 
        Congress.
            ``(2) Treatment of authorized committees.--Any contribution 
        made to an authorized committee of a Federal congressional 
        House candidate shall be treated as made to such candidate.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 2015, the $50 amount under subsection (b)(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 in which 
                the taxable year begins, determined by substituting 
                `calendar year 2014' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under 
        subparagraph (A) is not a multiple of $5, such amount shall be 
        rounded to the nearest multiple of $5.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of such Code is amended by 
        inserting ``36C,'' after ``36B,''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36C,'' after ``36B,''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 36B 
        the following new item:

``Sec. 36C. Credit for congressional House campaign contributions.''.
    (c) Forms.--The Secretary of the Treasury, or his designee, shall 
ensure that the credit for contributions to Federal congressional House 
candidates allowed under section 36C of the Internal Revenue Code of 
1986, as added by this section, may be claimed on Forms 1040EZ and 
1040A.
    (d) Administration.--At the request of the Secretary of the 
Treasury, the Federal Election Commission shall provide the Secretary 
of the Treasury with such information and other assistance as the 
Secretary may reasonably require to administer the credit allowed under 
section 36C of the Internal Revenue Code of 1986, as added by this 
section.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

               Subtitle B--My Voice Voucher Pilot Program

SEC. 111. ESTABLISHMENT OF PILOT PROGRAM.

    (a) Establishment.--The Government by the People Oversight 
Commission established under section 542 of the Federal Election 
Campaign Act of 1971 (as added by section 201) (hereafter in this 
subtitle referred to as the ``Commission'') shall establish a pilot 
program under which the Commission shall select 3 eligible States to 
operate a voucher pilot program which is described in section 112.
    (b) Eligibility of States.--A State is eligible to be selected to 
operate a voucher pilot program under this subtitle if the State 
submits to the Commission (at such time during the application period 
and in such form as the Commission may require) an application 
containing--
            (1) information and assurances that the State will operate 
        a voucher program which contains the elements described in 
        section 112(a);
            (2) information and assurances that the State will 
        establish fraud prevention mechanisms described in section 
        112(b);
            (3) information and assurances that the State will 
        establish a commission to oversee and implement the program as 
        described in section 112(c);
            (4) information and assurances that the State will submit 
        reports as required under section 113; and
            (5) such other information and assurances as the Commission 
        may require.
    (c) Timing of Program.--
            (1) Issuance of initial guidance.--Not later than 90 days 
        after the appointment of a quorum of its members, the 
        Commission shall issue initial guidance regarding the process 
        by which States may apply to operate voucher pilot programs 
        under this subtitle and initial guidance regarding the 
        implementation of such programs.
            (2) Selection of participating states.--The Commission 
        shall select the 3 States which will operate voucher pilot 
        programs under this subtitle not later than 90 days before the 
        end of the application period.
            (3) Period of operation of program.--Each State selected to 
        operate a voucher pilot program under this subtitle shall 
        operate such program during each of the 3 election cycles which 
        begin after the application period, and shall ensure that the 
        program is ready to be operated not later than the first 
        January 1 of the first election cycle which begins after the 
        application period.
            (4) Termination.--Each voucher pilot program under this 
        subtitle shall terminate as of the first day after the third 
        election cycle during which the State operated the program.
    (d) Reimbursement of Costs.--Upon receiving the report submitted by 
a State under section 113 with respect to an election cycle, the 
Commission shall transmit a payment to the State in an amount equal to 
the reasonable costs incurred by the State in operating the voucher 
pilot program under this subtitle during the cycle.
    (e) Application Period Defined.--In this section, the term 
``application period'' means the first election cycle which begins 
after the date of the enactment of this Act.

SEC. 112. VOUCHER PROGRAM DESCRIBED.

    (a) General Elements of Program.--
            (1) Elements described.--The elements of a voucher pilot 
        program operated by a State under this subtitle are as follows:
                    (A) The State shall provide each qualified 
                individual upon the individual's request with a voucher 
                worth $50 to be known as a ``My Voice Voucher'' during 
                the election cycle which will be assigned a routing 
                number and which at the option of the individual will 
                be provided in either paper or electronic form.
                    (B) Using the routing number assigned to the My 
                Voice Voucher, the individual may submit the My Voice 
                Voucher in either electronic or paper form to qualified 
                candidates for election for Federal office and allocate 
                such portion of the value of the My Voice Voucher in 
                increments of $5 as the individual may select to any 
                such candidate.
                    (C) If the candidate transmits the My Voice Voucher 
                to the Commission, the Commission shall pay the 
                candidate the portion of the value of the My Voice 
                Voucher that the individual allocated to the candidate, 
                which shall be considered a contribution by the 
                individual to the candidate for purposes of the Federal 
                Election Campaign Act of 1971.
            (2) Designation of qualified individuals.--For purposes of 
        paragraph (1)(A), a ``qualified individual'' with respect to a 
        State means an individual--
                    (A) who is a resident of the State;
                    (B) who will be of voting age as of the date of the 
                election for the candidate to whom the individual 
                submits a My Voice Voucher;
                    (C) who is not prohibited under Federal law from 
                making contributions to candidates for election for 
                Federal office; and
                    (D) who meets such other requirements as the State 
                may impose, except that the State may not require the 
                individual to be a registered voter in the State as a 
                condition of being a qualified individual.
    (b) Fraud Prevention Mechanism.--In addition to the elements 
described in subsection (a), a State operating a voucher pilot program 
under this subtitle shall permit an individual to revoke a My Voice 
Voucher not later than 2 days after submitting the My Voice Voucher to 
a candidate.
    (c) Oversight Commission.--In addition to the elements described in 
subsection (a), a State operating a voucher pilot program under this 
subtitle shall establish a commission or designate an existing entity 
to oversee and implement the program in the State, except that no such 
commission or entity may be comprised of elected officials.

SEC. 113. REPORTS.

    (a) Election Cycle Reports.--Not later than 6 months after each 
election cycle during which a State operates a voucher pilot program 
under this subtitle, the State shall submit a report to the Commission 
analyzing the operation and effectiveness of the program during the 
cycle and including such other information as the Commission may 
require.
    (b) Final Report.--Not later than 6 months after the termination of 
the voucher pilot programs under this subtitle, each State which 
operated such a program shall submit a final report to the Commission 
on the operation of the program during the previous election cycles, 
and shall include in each such report such recommendations as the State 
considers appropriate regarding the expansion of the pilot program to 
all States and territories, along with such other recommendations and 
other information as the Commission may require.

SEC. 114. ELECTION CYCLE DEFINED.

    In this subtitle, the term ``election cycle'' means the period 
beginning on the day after the date of the most recent regularly 
scheduled general election for Federal office and ending on the date of 
the next regularly scheduled general election for Federal office.

  TITLE II--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

SEC. 201. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR CANDIDATES.

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

 ``TITLE V--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

``SEC. 501. BENEFITS FOR PARTICIPATING CANDIDATES.

    ``(a) In General.--If a candidate for election to the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress is certified as a participating candidate under this title 
with respect to an election for such office, the candidate shall be 
entitled to payments as provided under this title.
    ``(b) Amount of Payment.--
            ``(1) In general.--The amount of a payment made under this 
        title shall be equal to 600 percent of the amount of qualified 
        small dollar contributions received by the candidate since the 
        most recent payment made to the candidate under this title 
        during the election cycle, without regard to whether or not the 
        candidate received any of the contributions before, during, or 
        after the Small Dollar Democracy qualifying period applicable 
        to the candidate under section 511(c).
            ``(2) Increase in payment for candidates accepting greater 
        restrictions.--In the case of a candidate who exercises the 
        option described in section 521(a)(2) to accept greater 
        restrictions on the permissible sources of contributions and 
        expenditures, the amount of the payment under this subsection 
        shall be the amount otherwise determined under paragraph (1) 
        increased by 50 percent.
    ``(c) Limit on Aggregate Amount of Payments.--The aggregate amount 
of payments made to a participating candidate with respect to an 
election cycle under this title may not exceed 50% (or, in the case of 
a candidate who exercises the option described in section 521(a)(2) to 
accept greater restrictions on the permissible sources of contributions 
and expenditures, 100 percent) of the average of the 20 greatest 
amounts of disbursements made by the authorized committees of any 
winning candidate for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress during the most recent election 
cycle, rounded to the nearest $100,000.

``SEC. 502. PROCEDURES FOR MAKING PAYMENTS.

    ``(a) In General.--The Commission shall make a payment under 
section 501 to a candidate who is certified as a participating 
candidate upon receipt from the candidate of a request for a payment 
which includes--
            ``(1) a statement of the number and amount of qualified 
        small dollar contributions received by the candidate since the 
        most recent payment made to the candidate under this title 
        during the election cycle;
            ``(2) a statement of the amount of the payment the 
        candidate anticipates receiving with respect to the request;
            ``(3) a statement of the total amount of payments the 
        candidate has received under this title as of the date of the 
        statement; and
            ``(4) such other information and assurances as the 
        Commission may require.
    ``(b) Restrictions on Submission of Requests.--A candidate may not 
submit a request under subsection (a) unless each of the following 
applies:
            ``(1) The amount of the qualified small dollar 
        contributions in the statement referred to in subsection (a)(1) 
        is equal to or greater than $5,000, unless the request is 
        submitted during the 30-day period which ends on the date of a 
        general election.
            ``(2) Of the total number of individuals who have made 
        qualified small dollar contributions to the candidate as of the 
        date of the request (including individuals whose contributions 
        were included in a previous request under subsection (a) and 
        individuals who made such contributions during the Small Dollar 
        Democracy qualifying period described in section 511(c)), at 
        least 50 percent are residents of the State in which the 
        candidate seeks election.
            ``(3) The candidate did not receive a payment under this 
        title during the 7-day period which ends on the date the 
        candidate submits the request.
    ``(c) Time of Payment.--The Commission shall ensure that payments 
under this section are made from the Treasury not later than 2 business 
days after the receipt of a request submitted under subsection (a).

``SEC. 503. USE OF FUNDS.

    ``A candidate shall use payments made under this title, including 
payments provided with respect to a previous election cycle which are 
withheld from remittance to the Commission in accordance with section 
524(a)(2), only for making direct payments for the receipt of goods and 
services (including legal fees related to the election or a legal 
challenge to the results of the election) which constitute authorized 
expenditures (as determined in accordance with title III) in connection 
with the election cycle involved.

``SEC. 504. QUALIFIED SMALL DOLLAR CONTRIBUTIONS DESCRIBED.

    ``(a) In General.--In this title, the term `qualified small dollar 
contribution' means, with respect to a candidate and the authorized 
committees of a candidate, a contribution that meets the following 
requirements:
            ``(1) The contribution is in an amount that is--
                    ``(A) not less than $1; and
                    ``(B) not more than $150.
            ``(2) The contribution is made by an individual, either 
        directly or through an intermediary or conduit (as described in 
        section 315(a)(8)), who is not otherwise prohibited from making 
        a contribution under this Act.
            ``(3) The individual who makes the contribution does not 
        make contributions to the candidate or the authorized 
        committees of the candidate with respect to the election 
        involved in an aggregate amount that exceeds the amount 
        described in paragraph (1)(B), or any contribution to the 
        candidate or the authorized committees of the candidate with 
        respect to the election involved that otherwise is not a 
        qualified small dollar contribution.
    ``(b) Treatment of My Voice Tax Credits and My Voice Vouchers.--Any 
payment received by a candidate and the authorized committees of a 
candidate which is treated as a qualified My Voice Federal 
congressional House campaign contribution under section 36C of the 
Internal Revenue Code of 1986 or which consists of a My Voice Voucher 
under subtitle B of title I of the Government By the People Act of 2014 
shall be considered a qualified small dollar contribution for purposes 
of this title, so long as the individual making the payment meets the 
requirements of paragraphs (2) and (3) of subsection (a).
    ``(c) Restriction on Subsequent Contributions.--
            ``(1) Prohibiting donor from making subsequent non-
        qualified contributions during election cycle.--
                    ``(A) In general.--An individual who makes a 
                qualified small dollar contribution to a candidate or 
                the authorized committees of a candidate with respect 
                to an election may not make any subsequent contribution 
                to such candidate or the authorized committees of such 
                candidate with respect to the election cycle which is 
                not a qualified small dollar contribution.
                    ``(B) Exception for contributions to candidates who 
                voluntarily withdraw from participation during 
                qualifying period.--Subparagraph (A) does not apply 
                with respect to a contribution made to a candidate who, 
                during the Small Dollar Democracy qualifying period 
                described in section 511(c), submits a statement to the 
                Commission under section 513(c) to voluntarily withdraw 
                from participating in the program under this title.
            ``(2) Treatment of subsequent non-qualified 
        contributions.--If, notwithstanding the prohibition described 
        in paragraph (1), an individual who makes a qualified small 
        dollar contribution to a candidate or the authorized committees 
        of a candidate with respect to an election makes a subsequent 
        contribution to such candidate or the authorized committees of 
        such candidate with respect to the election which is prohibited 
        under paragraph (1) because it is not a qualified small dollar 
        contribution, the candidate may take one of the following 
        actions:
                    ``(A) Not later than 2 weeks after receiving the 
                contribution, the candidate may return the subsequent 
                contribution to the individual.
                    ``(B) Unless the candidate has exercised the option 
                described in section 521(a)(2) to accept greater 
                restrictions on the permissible sources of 
                contributions and expenditures, the candidate may 
                retain the subsequent contribution, so long as not 
                later than 2 weeks after receiving the subsequent 
                contribution, the candidate remits to the Commission 
                for deposit in the Freedom From Influence Fund under 
                section 541 an amount equal to any payments received by 
                the candidate under this title which are attributable 
                to the qualified small dollar contribution made by the 
                individual involved.
            ``(3) No effect on ability to make multiple 
        contributions.--Nothing in this section may be construed to 
        prohibit an individual from making multiple qualified small 
        dollar contributions to any candidate or any number of 
        candidates, so long as each contribution meets each of the 
        requirements of paragraphs (1), (2), and (3) of subsection (a).
    ``(d) Notification Requirements for Candidates.--
            ``(1) Notification.--Each authorized committee of a 
        candidate who seeks to be a participating candidate under this 
        title shall provide the following information in any materials 
        for the solicitation of contributions, including any Internet 
        site through which individuals may make contributions to the 
        committee:
                    ``(A) A statement that if the candidate is 
                certified as a participating candidate under this 
                title, the candidate will receive matching payments in 
                an amount which is based on the total amount of 
                qualified small dollar contributions received.
                    ``(B) A statement that a contribution which meets 
                the requirements set forth in subsection (a) shall be 
                treated as a qualified small dollar contribution under 
                this title unless the contributor notifies the 
                committee not later than 48 hours after making the 
                contribution that the contribution is not to be so 
                treated.
                    ``(C) A statement that if a contribution is treated 
                as qualified small dollar contribution under this 
                title, the individual who makes the contribution may 
                not make any contribution to the candidate or the 
                authorized committees of the candidate during the 
                election cycle which is not a qualified small dollar 
                contribution.
            ``(2) Alternative methods of meeting requirements.--An 
        authorized committee may meet the requirements of paragraph 
        (1)--
                    ``(A) by including the information described in 
                paragraph (1) in the receipt provided under section 
                512(b)(3) to a person making a qualified small dollar 
                contribution; or
                    ``(B) by modifying the information it provides to 
                persons making contributions which is otherwise 
                required under title III (including information it 
                provides through the Internet).

              ``Subtitle B--Eligibility and Certification

``SEC. 511. ELIGIBILITY.

    ``(a) In General.--A candidate for the office of 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) The candidate files with the Commission a statement 
        of intent to seek certification as a participating candidate, 
        and specifies in the statement whether the candidate intends to 
        exercise the option described in section 521(a)(2) to accept 
        greater restrictions on the permissible sources of 
        contributions and expenditures.
            ``(2) The candidate meets the qualifying requirements of 
        section 512.
            ``(3) The candidate files with the Commission a statement 
        certifying that the authorized committees of the candidate meet 
        the requirements of section 504(d).
            ``(4) Not later than the last day of the Small Dollar 
        Democracy 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 that 
                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 be certified as a participating 
candidate 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) Small Dollar Democracy Qualifying Period Defined.--The term 
`Small Dollar Democracy qualifying period' means, with respect to any 
candidate for an office, the 180-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 30 days before the date of the 
general election for the office.

``SEC. 512. QUALIFYING REQUIREMENTS.

    ``(a) Receipt of Qualified Small Dollar Contributions From In-State 
Residents.--A candidate for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress meets the 
requirement of this section if, during the Small Dollar Democracy 
qualifying period described in section 511(c), each of the following 
occurs:
            ``(1) Not fewer than 1,000 individuals who are residents of 
        the State in which the candidate seeks election make a 
        qualified small dollar contribution to the candidate.
            ``(2) The candidate obtains a total dollar amount of 
        qualified small dollar contributions from individuals who are 
        residents of the State in which the candidate seeks election 
        which is equal to or greater than $50,000.
    ``(b) Requirements Relating to Receipt of Qualified Small Dollar 
Contribution.--Each qualified small dollar contribution--
            ``(1) may be made by means of a personal check, money 
        order, debit card, credit card, electronic payment account, or 
        any other method deemed appropriate by the Commission;
            ``(2) shall be accompanied by a signed statement (or, in 
        the case of a contribution made online or through other 
        electronic means, an electronic equivalent) containing--
                    ``(A) the contributor's name and the contributor's 
                address in the State in which the primary residence of 
                the contributor is located, and
                    ``(B) an oath declaring that the contributor--
                            ``(i) understands that the purpose of the 
                        contribution is to show support for the 
                        candidate so that the candidate may qualify for 
                        financing under this title,
                            ``(ii) is making the contribution in his or 
                        her own name and from his or her own funds,
                            ``(iii) has made the contribution 
                        willingly, and
                            ``(iv) has not received any thing of value 
                        in return for the contribution; and
            ``(3) shall be acknowledged by a receipt that is sent to 
        the contributor with a copy (in paper or electronic form) kept 
        by the candidate for the Commission and a copy (in paper or 
        electronic form) kept by the candidate for the election 
        authorities in the State with respect to which the candidate is 
        seeking election.
    ``(c) Verification of Qualified Small Dollar Contributions.--The 
Commission shall establish procedures for the auditing and verification 
of qualified small dollar contributions, including procedures for 
random audits, to ensure that such contributions meet the requirements 
of this section.

``SEC. 513. CERTIFICATION.

    ``(a) Deadline and Notification.--
            ``(1) In general.--Not later than 5 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);
                    ``(B) a candidate ceases to be a candidate for the 
                office involved, as determined on the basis of an 
                official announcement by an authorized committee of the 
                candidate or on the basis of a reasonable determination 
                by the Commission; or
                    ``(C) a candidate otherwise fails to comply with 
                the requirements of this title, including any 
                regulatory requirements prescribed by the Commission.
            ``(2) Existence of repeated or serious violations.--The 
        Commission shall revoke a certification under subsection (a) if 
        a penalty is assessed against the candidate under section 
        309(d) with respect to the election.
            ``(3) Effect of revocation.--If a candidate's certification 
        is revoked under this subsection--
                    ``(A) the candidate shall repay to the Freedom From 
                Influence Fund established under section 541 an amount 
                equal to the payments received under this title with 
                respect to the election cycle involved plus interest 
                (at a rate determined by the Commission on the basis of 
                an appropriate annual percentage rate for the month 
                involved) on any such amount received;
                    ``(B) the candidate may not receive payments under 
                this title during the remainder of the election cycle 
                involved; and
                    ``(C) the candidate may not be certified as a 
                participating candidate under this title with respect 
                to the next election cycle.
            ``(4) Prohibiting participation in future elections for 
        candidates with multiple revocations.--If the Commission 
        revokes the certification of an individual as a participating 
        candidate under this title 3 times, the individual may not be 
        certified as a participating candidate under this title with 
        respect to any subsequent election.
    ``(c) Voluntary Withdrawal From Participating During Qualifying 
Period.--At any time during the Small Dollar Democracy qualifying 
period described in section 511(c), a candidate may withdraw from 
participation in the program under this title by submitting to the 
Commission a statement of withdrawal (without regard to whether or not 
the Commission has certified the candidate as a participating candidate 
under this title as of the time the candidate submits such statement), 
so long as the candidate has not submitted a request for payment under 
section 502.
    ``(d) Participating Candidate Defined.--In this title, a 
`participating candidate' means a candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress who is certified under this section as eligible to receive 
benefits under this title.

 ``Subtitle C--Requirements for Candidates Certified as Participating 
                               Candidates

``SEC. 521. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.

    ``(a) Permitted Sources of Contributions and Expenditures.--
            ``(1) In general.--Except as provided in subsection (c), a 
        participating candidate with respect to an election shall, with 
        respect to all elections occurring during the election cycle 
        for the office involved, accept no contributions from any 
        source and make no expenditures from any amounts, other than 
        the following:
                    ``(A) Qualified small dollar contributions.
                    ``(B) Payments under this title.
                    ``(C) Contributions from political committees 
                established and maintained by a national or State 
                political party, subject to the applicable limitations 
                of section 315.
                    ``(D) Subject to subsection (b), personal funds of 
                the candidate or of any immediate family member of the 
                candidate (other than funds received through qualified 
                small dollar contributions).
                    ``(E) Contributions from individuals who are 
                otherwise permitted to make contributions under this 
                Act, subject to the applicable limitations of section 
                315, except that the aggregate amount of contributions 
                a participating candidate may accept from any 
                individual with respect to any election during the 
                election cycle may not exceed $1,000.
                    ``(F) Contributions from multicandidate political 
                committees, subject to the applicable limitations of 
                section 315.
            ``(2) Option to accept stricter limits.--A participating 
        candidate with respect to an election may, at the time of 
        submitting the first request for payment under section 502(a), 
        exercise an option to accept no contributions from any source 
        and make no expenditures from any amounts with respect to all 
        elections occurring during the election cycle for the office 
        involved, other than the following:
                    ``(A) Qualified small dollar contributions.
                    ``(B) Payments under this title.
                    ``(C) Subject to subsection (b), personal funds of 
                the candidate or of any immediate family member of the 
                candidate (other than funds received through qualified 
                small dollar contributions).
                    ``(D) Contributions from individuals who are 
                otherwise permitted to make contributions under this 
                Act, subject to the applicable limitations of section 
                315, except that--
                            ``(i) the aggregate amount of contributions 
                        the candidate may accept from any individual 
                        with respect to any election during the 
                        election cycle may not exceed $1,000;
                            ``(ii) the aggregate amount of 
                        contributions a candidate may accept from all 
                        individuals under this subparagraph with 
                        respect to the election cycle may not exceed 
                        $50,000; and
                            ``(iii) the candidate may not accept any 
                        contributions under this subparagraph after the 
                        date on which the Commission notifies the 
                        candidate under section 513(a) that the 
                        candidate is certified as a participating 
                        candidate under this title.
    ``(b) Special Rules for Personal Funds.--
            ``(1) Limit on amount.--A candidate who is certified as a 
        participating candidate may use personal funds (including 
        personal funds of any immediate family member of the candidate) 
        so long as--
                    ``(A) the aggregate amount used with respect to the 
                election cycle (including any period of the cycle 
                occurring prior to the candidate's certification as a 
                participating candidate) does not exceed $10,000; and
                    ``(B) the funds are used only for making direct 
                payments for the receipt of goods and services which 
                constitute authorized expenditures in connection with 
                the election cycle involved.
            ``(2) Immediate family member defined.--In this subsection, 
        the term `immediate family' means, with respect to a 
        candidate--
                    ``(A) the candidate's spouse;
                    ``(B) a child, stepchild, parent, grandparent, 
                brother, half-brother, sister, or half-sister of the 
                candidate or the candidate's spouse; and
                    ``(C) the spouse of any person described in 
                subparagraph (B).
    ``(c) Exceptions.--
            ``(1) Exception for contributions received prior to filing 
        of statement of intent.--A candidate who has accepted 
        contributions that are not described in paragraph (1) of 
        subsection (a) (or, in the case of a candidate who has 
        exercised the option described in paragraph (2) of subsection 
        (a), that are not described in paragraph (2) of subsection (a)) 
        is not in violation of subsection (a), but only if all such 
        contributions are--
                    ``(A) returned to the contributor;
                    ``(B) submitted to the Commission for deposit in 
                the Freedom From Influence Fund established under 
                section 541; or
                    ``(C) spent in accordance with paragraph (2).
            ``(2) Exception for expenditures made prior to filing of 
        statement of intent.--If a candidate has made expenditures 
        prior to the date the candidate files a statement of intent 
        under section 511(a)(1) that the candidate is prohibited from 
        making under subsection (a) or subsection (b), the candidate is 
        not in violation of such subsection if the aggregate amount of 
        the prohibited expenditures is less than the amount referred to 
        in section 512(a)(2) (relating to the total dollar amount of 
        qualified small dollar contributions which the candidate is 
        required to obtain) which is applicable to the candidate.
            ``(3) Exception for campaign surpluses from a previous 
        election.--Notwithstanding paragraph (1), unexpended 
        contributions received by the candidate or an authorized 
        committee of the candidate with respect to a previous election 
        may be retained, but only if the candidate places the funds in 
        escrow and refrains from raising additional funds for or 
        spending funds from that account during the election cycle in 
        which a candidate is a participating candidate.
            ``(4) Exception for contributions received before the 
        effective date of this title.--Contributions received and 
        expenditures made by the candidate or an authorized committee 
        of the candidate prior to the effective date of this title 
        shall not constitute a violation of subsection (a) or (b). 
        Unexpended contributions shall be treated the same as campaign 
        surpluses under paragraph (3), and expenditures made shall 
        count against the limit in paragraph (2).
    ``(d) Special Rule for Coordinated Party Expenditures.--For 
purposes of this section, a payment made by a political party in 
coordination with a participating candidate shall not be treated as a 
contribution to or as an expenditure made by the participating 
candidate.
    ``(e) Prohibition on Joint Fundraising Committees.--
            ``(1) Prohibition.--An authorized committee of a candidate 
        who is certified as a participating candidate under this title 
        with respect to an election may not establish a joint 
        fundraising committee with a political committee other than 
        another authorized committee of the candidate.
            ``(2) Status of existing committees for prior elections.--
        If a candidate established a joint fundraising committee 
        described in paragraph (1) with respect to a prior election for 
        which the candidate was not certified as a participating 
        candidate under this title and the candidate does not terminate 
        the committee, the candidate shall not be considered to be in 
        violation of paragraph (1) so long as that joint fundraising 
        committee does not receive any contributions or make any 
        disbursements during the election cycle for which the candidate 
        is certified as a participating candidate under this title.
    ``(f) Prohibition on Leadership PACs.--
            ``(1) Prohibition.--A candidate who is certified as a 
        participating candidate under this title with respect to an 
        election may not establish, finance, maintain, or control a 
        leadership PAC.
            ``(2) Status of existing leadership pacs.--If a candidate 
        established, financed, maintained, or controlled a leadership 
        PAC prior to being certified as a participating candidate under 
        this title and the candidate does not terminate the leadership 
        PAC, the candidate shall not be considered to be in violation 
        of paragraph (1) so long as the leadership PAC does not receive 
        any contributions or make any disbursements during the election 
        cycle for which the candidate is certified as a participating 
        candidate under this title.
            ``(3) Leadership pac defined.--In this subsection, the term 
        `leadership PAC' has the meaning given such term in section 
        304(i)(8)(B).

``SEC. 522. ADMINISTRATION OF CAMPAIGN.

    ``(a) Separate Accounting for Various Permitted Contributions.--
Each authorized committee of a candidate certified as a participating 
candidate under this title--
            ``(1) shall provide for separate accounting of each type of 
        contribution described in paragraph (1) of section 521(a) (or 
        described in paragraph (2) of section 521(a) in the case of a 
        candidate who exercises the option described in such paragraph) 
        which is received by the committee; and
            ``(2) shall provide for separate accounting for the 
        payments received under this title.
    ``(b) Enhanced Disclosure of Information on Donors.--
            ``(1) Mandatory identification of individuals making 
        qualified small dollar contributions.--Each authorized 
        committee of a participating candidate under this title shall 
        elect, in accordance with section 304(b)(3)(A), to include in 
        the reports the committee submits under section 304 the 
        identification of each person who makes a qualified small 
        dollar contribution to the committee.
            ``(2) Mandatory disclosure through internet.--Each 
        authorized committee of a participating candidate under this 
        title shall ensure that all information reported to the 
        Commission under this Act with respect to contributions and 
        expenditures of the committee is available to the public on the 
        Internet (whether through a site established for purposes of 
        this subsection, a hyperlink on another public site of the 
        committee, or a hyperlink on a report filed electronically with 
        the Commission) in a searchable, sortable, and downloadable 
        manner.

``SEC. 523. PREVENTING UNNECESSARY SPENDING OF PUBLIC FUNDS.

    ``(a) Mandatory Spending of Available Private Funds.--An authorized 
committee of a candidate certified as a participating candidate under 
this title may not make any expenditure of any payments received under 
this title in any amount unless the committee has made an expenditure 
in an equivalent amount of funds received by the committee which are 
described in subparagraphs (C), (D), and (E) of paragraph (1) of 
section 521(a) (or described in subparagraph (C) of paragraph (2) of 
section 521(a) in the case of a candidate who exercises the option 
described in such paragraph).
    ``(b) Limitation.--Subsection (a) applies to an authorized 
committee only to the extent that the funds referred to in such 
subsection are available to the committee at the time the committee 
makes an expenditure of a payment received under this title.

``SEC. 524. REMITTING UNSPENT FUNDS AFTER ELECTION.

    ``(a) Remittance Required.--
            ``(1) In general.--Not later than the date that is 180 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 Freedom From 
        Influence Fund established under section 541 an amount equal to 
        the balance of the payments received under this title by the 
        authorized committees of the candidate which remain unexpended 
        as of such date.
            ``(2) Permitting candidates participating in next election 
        cycle to retain portion of unspent funds.--Notwithstanding 
        paragraph (1), a participating candidate may withhold not more 
        than $100,000 (or, in the case of a candidate who exercises the 
        option described in section 521(a)(2) to accept greater 
        restrictions on the permissible sources of contributions and 
        expenditures, not more than $200,000) from the amount required 
        to be remitted under paragraph (1) if the candidate files a 
        signed affidavit with the Commission that the candidate will 
        seek certification as a participating candidate with respect to 
        the next election cycle, except that the candidate may not use 
        any portion of the amount withheld until the candidate is 
        certified as a participating candidate with respect to that 
        next election cycle. If the candidate fails to seek 
        certification as a participating candidate prior to the last 
        day of the Small Dollar Democracy qualifying period for the 
        next election cycle (as described in section 511), or if the 
        Commission notifies the candidate of the Commission's 
        determination does not meet the requirements for certification 
        as a participating candidate with respect to such cycle, the 
        candidate shall immediately remit to the Commission the amount 
        withheld.
    ``(b) Exception for Expenses Incurred as a Result of Contested 
Election.--
            ``(1) In general.--A candidate may withhold from the amount 
        required to be remitted under subsection (a) the amount of any 
        authorized expenditures which were incurred as the result of a 
        legal challenge to the results of the election, 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).

                  ``Subtitle D--Enhanced Match Support

``SEC. 531. ENHANCED SUPPORT FOR GENERAL ELECTION.

    ``(a) Availability of Enhanced Support.--In addition to the 
payments made under subtitle A, the Commission shall make an additional 
payment to an eligible candidate under this subtitle.
    ``(b) Use of Funds.--A candidate shall use the additional payment 
under this subtitle only for authorized expenditures in connection with 
the election involved.

``SEC. 532. ELIGIBILITY.

    ``(a) In General.--A candidate is eligible to receive an additional 
payment under this subtitle if the candidate meets each of the 
following requirements:
            ``(1) The candidate is on the ballot for the general 
        election for the office the candidate seeks.
            ``(2) The candidate is certified as a participating 
        candidate under this title with respect to the election.
            ``(3) During the enhanced support qualifying period, the 
        candidate receives qualified small dollar contributions in a 
        total amount of not less than $50,000.
            ``(4) During the enhanced support qualifying period, the 
        candidate submits to the Commission a request for the payment 
        which includes--
                    ``(A) a statement of the number and amount of 
                qualified small dollar contributions received by the 
                candidate during the enhanced support qualifying 
                period;
                    ``(B) a statement of the amount of the payment the 
                candidate anticipates receiving with respect to the 
                request; and
                    ``(C) such other information and assurances as the 
                Commission may require.
            ``(5) After submitting a request for the additional payment 
        under paragraph (4), the candidate does not submit any other 
        application for an additional payment under this subtitle.
    ``(b) Enhanced Support Qualifying Period Described.--In this 
subtitle, the term `enhanced support qualifying period' means, with 
respect to a general election, the period which begins 60 days before 
the date of the election and ends 14 days before the date of the 
election.

``SEC. 533. AMOUNT.

    ``(a) In General.--Subject to subsection (b), the amount of the 
additional payment made to an eligible candidate under this subtitle 
shall be an amount equal to 50 percent of--
            ``(1) the amount of the payment made to the candidate under 
        section 501(b) with respect to the qualified small dollar 
        contributions which are received by the candidate during the 
        enhanced support qualifying period (as included in the request 
        submitted by the candidate under section 532(a)(4)); or
            ``(2) in the case of a candidate who is not eligible to 
        receive a payment under section 501(b) with respect to such 
        qualified small dollar contributions because the candidate has 
        reached the limit on the aggregate amount of payments under 
        subtitle A for the election cycle under section 501(c), the 
        amount of the payment which would have been made to the 
        candidate under section 501(b) with respect to such qualified 
        small dollar contributions if the candidate had not reached 
        such limit.
    ``(b) Limit.--The amount of the additional payment determined under 
subsection (a) with respect to a candidate may not exceed $500,000.
    ``(c) No Effect on Aggregate Limit.--The amount of the additional 
payment made to a candidate under this subtitle shall not be included 
in determining the aggregate amount of payments made to a participating 
candidate with respect to an election cycle under section 501(c).

``SEC. 534. WAIVER OF AUTHORITY TO RETAIN PORTION OF UNSPENT FUNDS 
              AFTER ELECTION.

    ``Notwithstanding section 524(a)(2), a candidate who receives an 
additional payment under this subtitle with respect to an election is 
not permitted to withhold any portion from the amount of unspent funds 
the candidate is required to remit to the Commission under section 
524(a)(1).

                ``Subtitle E--Administrative Provisions

``SEC. 541. FREEDOM FROM INFLUENCE FUND.

    ``(a) Establishment.--There is established in the Treasury a fund 
to be known as the `Freedom From Influence Fund'.
    ``(b) Amounts Held by Fund.--The Fund shall consist of the 
following amounts:
            ``(1) Appropriated amounts.--Amounts appropriated to the 
        Fund, including trust fund amounts appropriated pursuant to 
        applicable provisions of the Internal Revenue Code of 1986.
            ``(2) Voluntary contributions.--Voluntary contributions to 
        the Fund, including contributions made pursuant to section 6098 
        of the Internal Revenue Code of 1986.
            ``(3) Other deposits.--Amounts deposited into the Fund 
        under--
                    ``(A) section 521(c) (relating to exceptions to 
                contribution requirements);
                    ``(B) section 523 (relating to remittance of unused 
                payments from the Fund);
                    ``(C) section 544 (relating to violations); and
                    ``(D) any other section of this Act.
            ``(4) Investment returns.--Interest on, and the proceeds 
        from, the sale or redemption of, any obligations held by the 
        Fund under subsection (c).
    ``(c) Investment.--The Commission shall invest portions of the Fund 
in obligations of the United States in the same manner as provided 
under section 9602(b) of the Internal Revenue Code of 1986.
    ``(d) Use of Fund.--
            ``(1) In general.--Amounts in the Fund shall be available 
        without further appropriation or fiscal year limitation to make 
        payments to participating candidates as provided in this title.
            ``(2) Insufficient amounts.--Under regulations established 
        by the Commission, rules similar to the rules of section 
        9006(c) of the Internal Revenue Code of 1986 shall apply.

``SEC. 542. GOVERNMENT BY THE PEOPLE OVERSIGHT COMMISSION.

    ``(a) Establishment.--There is established within the Federal 
Election Commission an entity to be known as the `Government by the 
People Oversight Commission' (in this title referred to as the 
`Oversight Commission').
    ``(b) Structure and Membership.--
            ``(1) In general.--The Oversight Commission shall be 
        composed of 5 members appointed by the President with the 
        advice and consent of the Senate, of whom--
                    ``(A) 2 shall be appointed after consultation with 
                the Majority Leader of the House of Representatives;
                    ``(B) 2 shall be appointed after consultation with 
                the Minority Leader of the House of Representatives; 
                and
                    ``(C) 1 shall be appointed upon the recommendation 
                of the members appointed under subparagraphs (A) and 
                (B).
            ``(2) Qualifications.--
                    ``(A) In general.--The members shall be individuals 
                who by reason of their education, experience, and 
                attainments, are exceptionally qualified to perform the 
                duties of members of the Oversight Commission.
                    ``(B) Prohibition.--No individual may be appointed 
                to the Oversight Commission who is--
                            ``(i) an employee of the Federal 
                        Government;
                            ``(ii) a registered lobbyist or an 
                        individual who was a registered lobbyist at any 
                        time during the 2-year period preceding 
                        appointment to the Oversight Commission; or
                            ``(iii) an officer or employee of a 
                        political party or political campaign.
            ``(3) Date.--Members of the Oversight Commission shall be 
        appointed not later than 60 days after the date of the 
        enactment of this Act.
            ``(4) Terms.--A member of the Oversight Commission shall be 
        appointed for a term of 5 years.
            ``(5) Vacancies.--A vacancy on the Oversight Commission 
        shall be filled not later than 30 calendar days after the date 
        on which the Oversight Commission is given notice of the 
        vacancy, in the same manner as the original appointment. The 
        individual appointed to fill the vacancy shall serve only for 
        the unexpired portion of the term for which the individual's 
        predecessor was appointed.
            ``(6) Chairperson.--The Oversight Commission shall 
        designate a Chairperson from among the members of the Board.
    ``(c) Duties and Powers.--
            ``(1) Administration.--The Oversight Commission shall have 
        such duties and powers as the Commission may prescribe, 
        including the power to administer the provisions of this title.
            ``(2) Review of small dollar financing.--
                    ``(A) In general.--After each regularly scheduled 
                general election for Federal office, the Oversight 
                Commission shall conduct a comprehensive review of the 
                Small Dollar financing program under this title, 
                including--
                            ``(i) the maximum and minimum dollar 
                        amounts of qualified small dollar contributions 
                        under section 504;
                            ``(ii) the number and value of qualified 
                        small dollar contributions a candidate is 
                        required to obtain under section 512(a) to be 
                        eligible for certification as a participating 
                        candidate;
                            ``(iii) the maximum amount of payments a 
                        candidate may receive under this title;
                            ``(iv) the overall satisfaction of 
                        participating candidates and the American 
                        public with the program; and
                            ``(v) such other matters relating to 
                        financing of campaigns as the Oversight 
                        Commission determines are appropriate.
                    ``(B) Criteria for review.--In conducting the 
                review under subparagraph (A), the Oversight Commission 
                shall consider the following:
                            ``(i) Qualified small dollar 
                        contributions.--The Oversight Commission shall 
                        consider whether the number and dollar amounts 
                        of qualified small dollar contributions 
                        required strikes an appropriate balance 
                        regarding the importance of voter involvement, 
                        the need to assure adequate incentives for 
                        participating, and fiscal responsibility, 
                        taking into consideration the number of primary 
                        and general election participating candidates, 
                        the electoral performance of those candidates, 
                        program cost, and any other information the 
                        Oversight Commission determines is appropriate.
                            ``(ii) Review of payment levels.--The 
                        Oversight Commission shall consider whether the 
                        totality of the amount of funds allowed to be 
                        raised by participating candidates (including 
                        through qualified small dollar contributions) 
                        and payments under this title are sufficient 
                        for voters in each State to learn about the 
                        candidates to cast an informed vote, taking 
                        into account the historic amount of spending by 
                        winning candidates, media costs, primary 
                        election dates, and any other information the 
                        Oversight Commission determines is appropriate.
                    ``(C) Recommendations for adjustment of amounts.--
                Based on the review conducted under subparagraph (A), 
                the Oversight Commission may recommend to Congress 
                adjustments of the following amounts:
                            ``(i) The number and value of qualified 
                        small dollar contributions a candidate is 
                        required to obtain under section 512(a) to be 
                        eligible for certification as a participating 
                        candidate.
                            ``(ii) The maximum amount of payments may 
                        receive under this title.
    ``(d) Meetings and Hearings.--
            ``(1) Meetings.--The Oversight Commission may hold such 
        hearings, sit and act at such times and places, take such 
        testimony, and receive such evidence as the Oversight 
        Commission considers advisable to carry out the purposes of 
        this Act.
            ``(2) Quorum.--Three members of the Oversight Commission 
        shall constitute a quorum for purposes of voting, but a quorum 
        is not required for members to meet and hold hearings.
    ``(e) Reports.--Not later than each June 1 which follows a 
regularly scheduled general election for Federal office for which 
payments were made under this title, the Oversight Commission shall 
submit to the Committee on House Administration of the House of 
Representatives a report--
            ``(1) containing an analysis of the review conducted under 
        subsection (c)(2), including a detailed statement of 
        Commission's findings, conclusions, and recommendations based 
        on such review, including any recommendations for adjustments 
        of amounts described in subsection (c)(2)(C); and
            ``(2) documenting, evaluating, and making recommendations 
        relating to the administrative implementation and enforcement 
        of the provisions of this title.
    ``(f) Administration.--
            ``(1) Compensation of members.--
                    ``(A) In general.--Each member, other than the 
                Chairperson, shall be paid at a rate equal to the daily 
                equivalent of the minimum annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code.
                    ``(B) Chairperson.--The Chairperson shall be paid 
                at a rate equal to the daily equivalent of the minimum 
                annual rate of basic pay prescribed for level III of 
                the Executive Schedule under section 5314 of title 5, 
                United States Code.
            ``(2) Personnel.--
                    ``(A) Director.--The Oversight Commission shall 
                have a staff headed by an Executive Director. The 
                Executive Director shall be paid at a rate equivalent 
                to a rate established for the Senior Executive Service 
                under section 5382 of title 5, United States Code.
                    ``(B) Staff appointment.--With the approval of the 
                Chairperson, the Executive Director may appoint such 
                personnel as the Executive Director and the Oversight 
                Commission determines to be appropriate.
                    ``(C) Experts and consultants.--With the approval 
                of the Chairperson, the Executive Director may procure 
                temporary and intermittent services under section 
                3109(b) of title 5, United States Code.
                    ``(D) Detail of government employees.--Upon the 
                request of the Chairperson, the head of any Federal 
                agency may detail, without reimbursement, any of the 
                personnel of such agency to the Oversight Commission to 
                assist in carrying out the duties of the Oversight 
                Commission. Any such detail shall not interrupt or 
                otherwise affect the civil service status or privileges 
                of the Federal employee.
                    ``(E) Other resources.--The Oversight Commission 
                shall have reasonable access to materials, resources, 
                statistical data, and other information from the 
                Library of Congress and other agencies of the executive 
                and legislative branches of the Federal Government. The 
                Chairperson of the Oversight Commission shall make 
                requests for such access in writing when necessary.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the purposes of 
this subtitle.

``SEC. 543. ADMINISTRATION BY COMMISSION.

    ``The Commission shall prescribe regulations to carry out the 
purposes of this title, including regulations--
            ``(1) to establish procedures for--
                    ``(A) verifying the amount of qualified small 
                dollar contributions with respect to a candidate,
                    ``(B) effectively and efficiently monitoring and 
                enforcing the limits on the raising of qualified small 
                dollar contributions,
                    ``(C) effectively and efficiently monitoring and 
                enforcing the limits on the use of personal funds by 
                participating candidates, and
                    ``(D) monitoring the use of allocations from the 
                Freedom From Influence Fund established under section 
                541 and matching contributions under this title through 
                audits of not fewer than \1/10\ (or, in the case of the 
                first 3 election cycles during which the program under 
                this title is in effect, not fewer than \1/3\) of all 
                participating candidates or other mechanisms; and
            ``(2) regarding the conduct of debates in a manner 
        consistent with the best practices of States that provide 
        public financing for elections.

``SEC. 544. 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 may 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 Freedom From Influence Fund 
established under section 541.
    ``(b) Repayment for Improper Use of Freedom From Influence Fund.--
            ``(1) In general.--If the Commission determines that any 
        payment made 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 Fund an amount equal to--
                    ``(A) the amount of payments 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.
    ``(c) Prohibiting Certain Candidates From Qualifying as 
Participating Candidates.--
            ``(1) Candidates with multiple civil penalties.--If the 
        Commission assesses 3 or more civil penalties under subsection 
        (a) against a candidate (with respect to either a single 
        election or multiple elections), the Commission may refuse to 
        certify the candidate as a participating candidate under this 
        title with respect to any subsequent election, except that if 
        each of the penalties were assessed as the result of a knowing 
        and willful violation of any provision of this Act, the 
        candidate is not eligible to be certified as a participating 
        candidate under this title with respect to any subsequent 
        election.
            ``(2) Candidates subject to criminal penalty.--A candidate 
        is not eligible to be certified as a participating candidate 
        under this title with respect to an election if a penalty has 
        been assessed against the candidate under section 309(d) with 
        respect to any previous election.

``SEC. 545. APPEALS PROCESS.

    ``(a) Review of Actions.--Any action by the Commission in carrying 
out this title shall be subject to review by the United States Court of 
Appeals for the District of Columbia upon petition filed in the Court 
not later than 30 days after the Commission takes the action for which 
the review is sought.
    ``(b) Procedures.--The provisions of chapter 7 of title 5, United 
States Code, apply to judicial review under this section.

``SEC. 546. INDEXING OF AMOUNTS.

    ``(a) Indexing.--In any calendar year after 2015, section 
315(c)(1)(B) shall apply to each amount described in subsection (b) 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 
amounts described in subsection (b), the `base period' shall be 2014.
    ``(b) Amounts Described.--The amounts described in this subsection 
are as follows:
            ``(1) The amount referred to in section 502(b)(1) (relating 
        to the minimum amount of qualified small dollar contributions 
        included in a request for payment).
            ``(2) The amounts referred to in section 504(a)(1) 
        (relating to the amount of a qualified small dollar 
        contribution).
            ``(3) The amount referred to in section 512(a)(2) (relating 
        to the total dollar amount of qualified small dollar 
        contributions).
            ``(4) The amount referred to in section 521(a)(1)(E) 
        (relating to the aggregate amount of contributions a 
        participating candidate may accept from any individual with 
        respect to an election).
            ``(5) The amount referred to in section 521(a)(2)(D)(i) 
        (relating to the aggregate amount of contributions that may be 
        accepted from any individual with respect to an election by a 
        participating candidate who exercises the option described in 
        such section to accept greater restrictions on the permissible 
        sources of contributions and expenditures).
            ``(6) The amount referred to in section 521(a)(2)(D)(ii) 
        (relating to the aggregate amount of contributions that may be 
        accepted from all individuals with respect to an election cycle 
        by a participating candidate who exercises the option described 
        in such section to accept greater restrictions on the 
        permissible sources of contributions and expenditures).
            ``(7) The amount referred to in section 521(b)(1) (relating 
        to the amount of personal funds that may be used by a candidate 
        who is certified as a participating candidate).
            ``(8) The amounts referred to in section 524(a)(2) 
        (relating to the amount of unspent funds a candidate may retain 
        for use in the next election cycle).
            ``(9) The amount referred to in section 532(a)(3)(B) 
        (relating to the total dollar amount of qualified small dollar 
        contributions for a candidate seeking an additional payment 
        under subtitle D).
            ``(10) The amount referred to in section 533(b) (relating 
        to the limit on the amount of an additional payment made to a 
        candidate under subtitle D).

``SEC. 547. ELECTION CYCLE DEFINED.

    ``In this title, the term `election cycle' means, with respect to 
an election for an 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).''.

SEC. 202. CONTRIBUTIONS AND EXPENDITURES BY MULTICANDIDATE AND 
              POLITICAL PARTY POLITICAL COMMITTEES ON BEHALF OF 
              PARTICIPATING CANDIDATES.

    (a) Authorizing Contributions Only From Separate Accounts 
Consisting of Qualified Small Dollar Contributions.--Section 315(a) of 
the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)) is amended 
by adding at the end the following new paragraph:
    ``(9) In the case of a multicandidate political committee or any 
political committee of a political party, the committee may make a 
contribution to a candidate who is a participating candidate under 
title V with respect to an election only if the contribution is paid 
from a separate, segregated account of the committee which consists 
solely of contributions which meet the following requirements:
            ``(A) Each such contribution is in an amount which meets 
        the requirements for the amount of a qualified small dollar 
        contribution under section 504(a)(1) with respect to the 
        election involved.
            ``(B) Each such contribution is made by an individual who 
        is not otherwise prohibited from making a contribution under 
        this Act.
            ``(C) The individual who makes the contribution does not 
        make contributions to the committee during the year in an 
        aggregate amount that exceeds the limit described in section 
        504(a)(1).''.
    (b) Permitting Unlimited Coordinated Expenditures From Small Dollar 
Sources by Political Parties.--Section 315(d) of such Act (2 U.S.C. 
441a(d)) is amended--
            (1) in paragraph (3), by striking ``The national 
        committee'' and inserting ``Except as provided in paragraph 
        (5), the national committee''; and
            (2) by adding at the end the following new paragraph:
    ``(5) The limits described in paragraph (3) do not apply in the 
case of expenditures in connection with the general election campaign 
of a candidate for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress who is a participating candidate 
under title V with respect to the election, but only if--
            ``(A) the expenditures are paid from a separate, segregated 
        account of the committee which is described in subsection 
        (a)(9); and
            ``(B) the expenditures are the sole source of funding 
        provided by the committee to the candidate.''.

SEC. 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 Small Dollar Financing.--Notwithstanding paragraph (2), (3), 
or (4) of subsection (a), if a candidate for election for the office of 
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.''.

                TITLE III--OTHER ADMINISTRATIVE REFORMS

SEC. 301. EXPANDING REQUIREMENT TO DISCLOSE BUNDLERS WHO ARE REGISTERED 
              LOBBYISTS TO ALL BUNDLERS.

    (a) Expanding Bundler Disclosure Requirements to All Bundlers.--
Section 304(i)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(i)(1)) is amended by striking ``reasonably known by the 
committee to be a person described in paragraph (7)''.
    (b) Conforming Amendments.--Section 304(i) of such Act (2 U.S.C. 
434(i)) is amended--
            (1) in paragraph (2)(C), by striking ``described in 
        paragraph (7)'';
            (2) in paragraph (3)(A), by striking ``a person described 
        in paragraph (7)'' and inserting ``any person'';
            (3) in paragraph (5)--
                    (A) by striking subparagraph (B) and redesignating 
                subparagraphs (C) and (D) as subparagraphs (B) and (C),
                    (B) in subparagraph (B) (as so redesignated), by 
                striking ``described in paragraph (7)'', and
                    (C) in subparagraph (C) (as so redesignated), by 
                striking ``by persons described in paragraph (7)'';
            (4) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7); and
            (5) in paragraph (7)(A) (as so redesignated), by striking 
        ``a person described in paragraph (7),'' and inserting ``a 
        person,''.

SEC. 302. PETITION FOR CERTIORARI.

    Section 307(a)(6) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437d(a)(6)) is amended by inserting ``(including a proceeding 
before the Supreme Court on certiorari)'' after ``appeal''.

SEC. 303. FILING BY ALL CANDIDATES WITH COMMISSION.

    Section 302(g) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(g)) is amended to read as follows:
    ``(g) Filing With the Commission.--All designations, statements, 
and reports required to be filed under this Act shall be filed with the 
Commission.''.

SEC. 304. ELECTRONIC FILING OF FEC REPORTS.

    Section 304(a)(11) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(a)(11)) is amended--
            (1) in subparagraph (A), by striking ``under this Act--'' 
        and all that follows and inserting ``under this Act shall be 
        required to maintain and file such designation, statement, or 
        report in electronic form accessible by computers.'';
            (2) in subparagraph (B), by striking ``48 hours'' and all 
        that follows through ``filed electronically)'' and inserting 
        ``24 hours''; and
            (3) by striking subparagraph (D).

SEC. 305. EFFECTIVE DATE.

    The amendments made by this title shall apply with respect to 
reports filed on or after the date of the enactment of this Act.

          TITLE IV--EXPANDING CANDIDATE ACCESS TO ADVERTISING

SEC. 401. BROADCASTS BY CANDIDATES.

    (a) Lowest Unit Charge.--Section 315(b)(1)(A) of the Communications 
Act of 1934 (47 U.S.C. 315(b)(1)(A)) is amended by inserting ``for 
preemptible use thereof'' after ``station''.
    (b) Preemption; Audits.--Section 315 of the Communications Act of 
1934 (47 U.S.C. 315) is amended--
            (1) by redesignating subsection (c) as subsection (g) and 
        transferring such subsection, as redesignated, to the end;
            (2) by redesignating subsection (d) as subsection (f) and 
        transferring such subsection, as redesignated, so that it 
        appears after subsection (e); and
            (3) by inserting after subsection (b) the following:
    ``(c) Preemption.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding the requirements of subsection (b)(1)(A), a 
        licensee may not preempt the use of a broadcasting station by a 
        legally qualified candidate that has purchased and paid for 
        such use under circumstances entitling such candidate to 
        receive the rate under such subsection for such use.
            ``(2) Circumstances beyond control of licensee.--If a 
        program to be broadcast by a broadcasting station is preempted 
        because of circumstances beyond the control of the licensee, an 
        advertisement that is scheduled to be broadcast during such 
        program and the broadcast of which constitutes use of the 
        broadcasting station described in paragraph (1) shall be 
        treated in the same fashion as a comparable commercial 
        advertisement.
    ``(d) Audits.--During the 45-day period preceding the date of a 
primary or primary runoff election and during the 60-day period 
preceding the date of a general election or special election, the 
Commission shall conduct such audits as it considers necessary to 
ensure that the licensee of each broadcasting station is allocating use 
of the station in accordance with this section and in a manner that 
does not warrant revocation of the station license under section 
312(a)(7).''.
    (c) Revocation of License for Failure To Allow Access by Federal 
Candidates.--Section 312 of the Communications Act of 1934 (47 U.S.C. 
312) is amended--
            (1) in subsection (a)(7)--
                    (A) by inserting ``in accordance with subsection 
                (h),'' before ``for willful'';
                    (B) by striking ``or repeated'';
                    (C) by inserting ``or a cable system'' after ``non-
                commercial educational broadcast station,''; and
                    (D) by striking ``his candidacy'' and inserting 
                ``the candidacy of the candidate, under the same terms, 
                conditions, and business practices as apply to the 
                most-favored advertiser of the broadcasting station or 
                cable system''; and
            (2) by adding at the end the following:
    ``(h) Conditions for Revocation for Failure To Allow Access by 
Federal Candidates.--
            ``(1) Three-strikes rule.--The Commission may revoke a 
        station license or construction permit under subsection (a)(7) 
        only if the Commission finds that the licensee or permittee has 
        engaged in at least 3 failures described in such subsection 
        with respect to the broadcasting station or cable system to 
        which the license or permit relates.
            ``(2) Duration.--In the case of a person whose station 
        license or construction permit with respect to a broadcasting 
        station or cable system has been revoked under subsection 
        (a)(7)--
                    ``(A) the Commission may not grant a station 
                license or construction permit to such person with 
                respect to such broadcasting station or cable system 
                during the 5-year period following the revocation; and
                    ``(B) if the Commission grants such a station 
                license or construction permit to such person after 
                such 5-year period, the number of failures described in 
                subsection (a)(7) shall be calculated for purposes of 
                paragraph (1) without regard to any such failures that 
                occurred while a previous license or permit was in 
                effect.''.
    (d) Technical Amendments.--Section 315 of the Communications Act of 
1934 (47 U.S.C. 315), as amended by subsection (b), is further 
amended--
            (1) in subsection (a), by striking ``If any licensee'' and 
        inserting ``Equal Opportunities for Candidates for Same 
        Office.--If any licensee'';
            (2) in subsection (b)(1), by moving subparagraphs (A) and 
        (B) 2 ems to the right;
            (3) in subsection (f), as redesignated, by striking ``The 
        Commission'' and inserting ``Regulations.--The Commission''; 
        and
            (4) in subsection (g), as redesignated, by striking ``For 
        purposes'' and inserting ``Definitions.--For purposes''.

         TITLE V--CONTRIBUTIONS TO FREEDOM FROM INFLUENCE FUND

SEC. 501. VOLUNTARY CONTRIBUTIONS TO THE FREEDOM FROM INFLUENCE FUND.

    (a) In General.--Subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

        ``PART IX--CONTRIBUTIONS TO FREEDOM FROM INFLUENCE FUND

``Sec. 6098. Contributions to Freedom From Influence Fund.

``SEC. 6098. CONTRIBUTIONS TO FREEDOM FROM INFLUENCE FUND.

    ``(a) In General.--Every individual, with respect to the taxpayer's 
return for the taxable year of the tax imposed by chapter 1, may 
designate that a specified portion (not less than $1) of any 
overpayment of tax shall be contributed to the Freedom From Influence 
Fund established under section 541 of the Federal Election Campaign Act 
of 1971.
    ``(b) Manner and Time of Designation.--
            ``(1) Time of designation.--A designation under subsection 
        (a) may be made with respect to any taxable year--
                    ``(A) at the time of filing the return of the tax 
                imposed by chapter 1 for such taxable year, or
                    ``(B) at any other time (after such time of filing) 
                specified in regulations prescribed by the Secretary.
            ``(2) Manner of designation.--Such designation shall be 
        made in such manner as the Secretary prescribes by regulations 
        except that, if such designation is made at the time of filing 
        the return of the tax imposed by chapter 1 for such taxable 
        year, such designation shall be made either on the first page 
        of the return or on the page bearing the taxpayer's signature.
    ``(c) Overpayments Treated as Refunded.--For purposes of this 
title, any portion of an overpayment of tax designated under subsection 
(a) shall be treated as--
            ``(1) being refunded to the taxpayer as of the last date 
        prescribed for filing the return of tax imposed by chapter 1 
        (determined without regard to extensions) or, if later, the 
        date the return is filed, and
            ``(2) a contribution made by such taxpayer on such date to 
        the United States.
    ``(d) On-Line Contributions.--The Secretary shall establish and 
maintain a Web site through which persons may make contributions to the 
Freedom From Influence Fund. Any such contribution shall not be treated 
as an overpayment of tax but shall be treated as a contribution made by 
such person to the United States.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 61 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

      ``Part IX. Contributions to Freedom From Influence Fund.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. SEVERABILITY.

    If any provision of this Act or any amendment made by this Act, or 
the application of a provision of this Act or an amendment made by this 
Act to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act, and the application of the provisions to any 
person or circumstance, shall not be affected by the holding.
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