```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6116 Reported in House (RH)]

                                                 Union Calendar No. 410
111th CONGRESS
  2d Session
                                H. R. 6116

                      [Report No. 111-691, Part I]

  To reform the financing of House elections, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2010

  Mr. Larson of Connecticut (for himself, Mr. Jones, Mr. Capuano, Ms. 
  Pingree of Maine, Mr. Holt, Mr. Platts, Mr. Nadler of New York, Mr. 
 Cooper, Mr. Heinrich, Mr. Polis of Colorado, Ms. Edwards of Maryland, 
and Mr. Doyle) introduced the following bill; which was referred to the 
Committee on House Administration, and in addition to the Committee on 
Energy and Commerce, 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

                           December 21, 2010

          Reported from the Committee on House Administration

                           December 21, 2010

Referral to the Committee on Energy and Commerce extended for a period 
                ending not later than December 22, 2010

                           December 22, 2010

 Additional sponsors: Ms. Zoe Lofgren of California, Mr. Gonzalez, Ms. 
     Hirono, Mr. Yarmuth, Ms. Woolsey, Mr. Costello, and Mr. Honda

                           December 22, 2010

   The Committee on Energy and Commerce discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed

_______________________________________________________________________

                                 A BILL

 
  To reform the financing of House elections, 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 ``Fair Elections Now 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and declarations.
     TITLE I--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS

Sec. 101. Benefits and eligibility requirements for House candidates.
    ``TITLE V--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

        ``Sec. 501. Benefits for participating candidates.
        ``Sec. 502. Allocations from the Fund.
        ``Sec. 503. Matching payments for certain small dollar 
                            contributions.
              ``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, expenditure, and fundraising 
                            requirements.
        ``Sec. 522. Debate requirement.
        ``Sec. 523. Remitting unspent funds after election.
                ``Subtitle D--Administrative Provisions

        ``Sec. 531. Fair Elections Fund.
        ``Sec. 532. Fair Elections Oversight Board.
        ``Sec. 533. Administration by Commission.
        ``Sec. 534. Violations and penalties.
        ``Sec. 535. Election cycle defined.
Sec. 102. Transfer of portion of civil money penalties into Fair 
                            Elections Fund.
Sec. 103. Prohibiting use of contributions by participating candidates 
                            for purposes other than campaign for 
                            election.
Sec. 104. Prohibition on joint fundraising committees.
Sec. 105. Limitation on coordinated expenditures by political party 
                            committees with participating candidates.
Sec. 106. Deposit of proceeds from recovered spectrum auctions.
     TITLE II--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION

Sec. 201. Petition for certiorari.
Sec. 202. Filing by all candidates with Commission.
Sec. 203. Electronic filing of FEC reports.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Severability.
Sec. 302. Effective date.

SEC. 2. FINDINGS AND DECLARATIONS.

    (a) Undermining of Democracy by Campaign Contributions From Private 
Sources.--The House of Representatives finds and declares that the 
current system of privately financed campaigns for election to the 
House of Representatives has the capacity, and is often perceived by 
the public, to undermine democracy in the United States by--
            (1) creating a culture that fosters actual or perceived 
        conflicts of interest, by encouraging Members of the House to 
        accept large campaign contributions from private interests that 
        are directly affected by Federal legislation;
            (2) diminishing or appearing to diminish Members' 
        accountability to constituents by compelling legislators to be 
        accountable to the major contributors who finance their 
        election campaigns;
            (3) undermining the meaning of the right to vote by 
        allowing monied interests to have a disproportionate and unfair 
        influence within the political process;
            (4) imposing large, unwarranted costs on taxpayers through 
        legislative and regulatory distortions caused by unequal access 
        to lawmakers for campaign contributors;
            (5) making it difficult for some qualified candidates to 
        mount competitive House election campaigns;
            (6) disadvantaging challengers and discouraging competitive 
        elections, because large campaign contributors tend to donate 
        their money to incumbent Members, thus causing House elections 
        to be less competitive; and
            (7) burdening incumbents with a preoccupation with 
        fundraising and thus decreasing the time available to carry out 
        their public responsibilities.
    (b) Enhancement of Democracy by Providing Allocations From the Fair 
Elections Fund.--The House of Representatives finds and declares that 
providing the option of the replacement of large private campaign 
contributions with allocations from the Fair Elections Fund for all 
primary, runoff, and general elections to the House of Representatives 
would enhance American democracy by--
            (1) reducing the actual or perceived conflicts of interest 
        created by fully private financing of the election campaigns of 
        public officials and restoring public confidence in the 
        integrity and fairness of the electoral and legislative 
        processes through a program which allows participating 
        candidates to adhere to substantially lower contribution limits 
        for contributors with an assurance that there will be 
        sufficient funds for such candidates to run viable electoral 
        campaigns;
            (2) increasing the public's confidence in the 
        accountability of Members to the constituents who elect them, 
        which derives from the program's qualifying criteria to 
        participate in the voluntary program and the conclusions that 
        constituents may draw regarding candidates who qualify and 
        participate in the program;
            (3) helping to reduce the ability to make large campaign 
        contributions as a determinant of a citizen's influence within 
        the political process by facilitating the expression of support 
        by voters at every level of wealth, encouraging political 
        participation, incentivizing participation on the part of 
        Members through the matching of small dollar contributions;
            (4) potentially saving taxpayers billions of dollars that 
        may be (or that are perceived to be) currently allocated based 
        upon legislative and regulatory agendas skewed by the influence 
        of campaign contributions;
            (5) creating genuine opportunities for all Americans to run 
        for the House of Representatives and encouraging more 
        competitive elections;
            (6) encouraging participation in the electoral process by 
        citizens of every level of wealth; and
            (7) freeing Members from the incessant preoccupation with 
        raising money, and allowing them more time to carry out their 
        public responsibilities.

     TITLE I--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS

SEC. 101. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR HOUSE 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--FAIR ELECTIONS FINANCING OF HOUSE 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 a participating candidate under this title with respect to 
an election for such office, the candidate shall be entitled to 
payments under this title, to be used only for authorized expenditures 
in connection with the election.
    ``(b) Types of Payments.--The payments to which a participating 
candidate is entitled under this section consist of--
            ``(1) allocations from the Fair Elections Fund, as provided 
        in section 502; and
            ``(2) payments from the Fair Elections Fund to match 
        certain small dollar contributions, as provided in section 503.

``SEC. 502. ALLOCATIONS FROM THE FUND.

    ``(a) Amount of Allocations.--
            ``(1) Primary election allocation; initial allocation.--
        Except as provided in paragraph (6), the Commission shall make 
        an allocation from the Fair Elections Fund established under 
        section 531 to a candidate who is certified as a participating 
        candidate with respect to a primary election in an amount equal 
        to 40 percent of the base amount.
            ``(2) Primary runoff election allocation.--The Commission 
        shall make an allocation from the Fund to a candidate who is 
        certified as a participating candidate with respect to a 
        primary runoff election in an amount equal to 25 percent of the 
        amount the participating candidate was eligible to receive 
        under this section for the primary election.
            ``(3) General election allocation.--Except as provided in 
        paragraph (6), the Commission shall make an allocation from the 
        Fund to a candidate who is certified as a participating 
        candidate with respect to a general election in an amount equal 
        to 60 percent of the base amount.
            ``(4) General runoff election allocation.--The Commission 
        shall make an allocation from the Fund to a candidate who is 
        certified as a participating candidate with respect to a 
        general runoff election in an amount equal to 25 percent of the 
        base amount.
            ``(5) Recount allocation.--If the appropriate State or 
        local election official conducts a recount of an election, the 
        Commission shall make an allocation from the Fund to a 
        participating candidate for expenses relating to the recount in 
        an amount equal to 25 percent of the amount the participating 
        candidate was eligible to receive under this section for the 
        election involved.
            ``(6) Uncontested elections.--
                    ``(A) In general.--In the case of a primary or 
                general election that is an uncontested election, the 
                Commission shall make an allocation from the Fund to a 
                participating candidate for such election in an amount 
                equal to 25 percent of the allocation for that election 
                with respect to such candidate.
                    ``(B) Uncontested election defined.--For purposes 
                of this subparagraph, an election is uncontested if not 
                more than 1 candidate has campaign funds (including 
                payments from the Fund) in an amount equal to or 
                greater than 10 percent of the allocation a candidate 
                would be entitled to receive under this section for 
                that election (determined without regard to this 
                paragraph).
    ``(b) Base Amount.--The base amount is an amount equal to 80 
percent of the national average disbursements of the cycle by winning 
candidates for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress in the last 2 election cycles.
    ``(c) Timing; Method of Payment.--
            ``(1) Timing.--The Commission shall make the allocations 
        required under subsection (a) to a participating candidate--
                    ``(A) in the case of amounts provided under 
                subsection (a)(1), not later than 48 hours after the 
                date on which such candidate is certified as a 
                participating candidate under section 513;
                    ``(B) in the case of a general election, not later 
                than 48 hours after--
                            ``(i) the date of the certification of the 
                        results of the primary election or the primary 
                        runoff election; or
                            ``(ii) in any case in which there is no 
                        primary election, the date the candidate 
                        qualifies to be placed on the ballot;
                    ``(C) in the case of a primary runoff election or a 
                general runoff election, not later than 48 hours after 
                the certification of the results of the primary 
                election or the general election, as the case may be; 
                and
                    ``(D) in the case of a recount allocation, not 
                later than 48 hours after the appropriate State or 
                local election official orders the holding of the 
                recount.
            ``(2) Method of payment.--The Commission shall distribute 
        funds available to participating candidates under this section 
        through the use of an electronic funds exchange or a debit 
        card.

``SEC. 503. MATCHING PAYMENTS FOR CERTAIN SMALL DOLLAR CONTRIBUTIONS.

    ``(a) In General.--The Commission shall pay to each participating 
candidate an amount equal to 400 percent of the amount of qualified 
small dollar contributions received by the candidate from individuals 
who are residents of the State in which such participating candidate is 
seeking election.
    ``(b) Limitation.--The maximum payment under this section shall be 
the greater of--
            ``(1) 200 percent of the allocation under paragraphs (1) 
        through (4) of section 502(a) for that election with respect to 
        such candidate; or
            ``(2) the percentage of the allocation determined by the 
        Commission under section 532(c)(2).
    ``(c) Time of Payment.--The Commission shall make payments under 
this section not later than 2 business days after the receipt of a 
report made under subsection (d).
    ``(d) Reports.--
            ``(1) In general.--Each participating candidate shall file 
        reports of receipts of qualified small dollar contributions at 
        such times and in such manner as the Commission may by 
        regulations prescribe.
            ``(2) Contents of reports.--Each report under this 
        subsection shall disclose--
                    ``(A) the amount of each qualified small dollar 
                contribution received by the candidate;
                    ``(B) the amount of each qualified small dollar 
                contribution received by the candidate from a resident 
                of the State in which the candidate is seeking 
                election; and
                    ``(C) the name, address, and occupation of each 
                individual who made a qualified small dollar 
                contribution to the candidate.
            ``(3) Frequency of reports.--Reports under this subsection 
        shall be made no more frequently than--
                    ``(A) once every month until the date that is 90 
                days before the date of the election;
                    ``(B) once every week after the period described in 
                subparagraph (A) and until the date that is 21 days 
                before the election; and
                    ``(C) once every day after the period described in 
                subparagraph (B).
            ``(4) Limitation on regulations.--The Commission may not 
        prescribe any regulations with respect to reporting under this 
        subsection with respect to any election after the date that is 
        180 days before the date of such election.
    ``(e) Appeals.--The Commission shall provide a written explanation 
with respect to any denial of any payment under this section and shall 
provide for the opportunity for review and reconsideration within 5 
business days of such denial.
    ``(f) Qualified Small Dollar Contribution Defined.--The term 
`qualified small dollar contribution' means, with respect to a 
participating candidate, any contribution (or a series of 
contributions)--
            ``(1) which is not a qualifying contribution (or does not 
        include a qualifying contribution);
            ``(2) which is made by an individual who is not prohibited 
        from making a contribution under this Act; and
            ``(3) the aggregate amount of which does not exceed the 
        greater of--
                    ``(A) $100 per election; or
                    ``(B) the amount determined by the Fair Elections 
                Oversight Board under section 532(c)(2).

              ``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) During the election cycle for the office involved, 
        the candidate files with the Commission a statement of intent 
        to seek certification as a participating candidate.
            ``(2) The candidate meets the qualifying requirements of 
        section 512.
            ``(3) Not later than the last day of the Fair Elections 
        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 comply with the debate 
                requirements of section 522;
                    ``(C) if certified, will run only as a 
                participating candidate for all elections for the 
                office that such candidate is seeking during the 
                election cycle; and
                    ``(D) has either qualified or will take steps to 
                qualify under State law to be on the ballot.
    ``(b) General Election.--Notwithstanding subsection (a), a 
candidate shall not be eligible to receive an allocation from the Fund 
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) Fair Elections Qualifying Period Defined.--The term `Fair 
Elections qualifying period' means, with respect to any candidate for 
the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress, the 120-day period (during the election cycle for 
such office) which begins on the date on which the candidate files a 
statement of intent under section 511(a)(1), except that such period 
may not continue after the date that is 60 days before--
            ``(1) the date of the primary election; or
            ``(2) in the case of a State that does not hold a primary 
        election, the date prescribed by State law as the last day to 
        qualify for a position on the general election ballot.

``SEC. 512. QUALIFYING REQUIREMENTS.

    ``(a) Receipt of Qualifying Contributions.--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 Fair 
Elections qualifying period described in section 511(c), the candidate 
obtains--
            ``(1) a single qualifying contribution from a number of 
        individuals equal to or greater than the lesser of--
                    ``(A) .25% of the voting age population of the 
                State involved (as reported in the most recent 
                decennial census), or
                    ``(B) 1,500; and
            ``(2) a total dollar amount of qualifying contributions 
        equal to or greater than $50,000.
    ``(b) Requirements Relating to Receipt of Qualifying 
Contribution.--Each qualifying contribution--
            ``(1) may be made by means of a personal check, money 
        order, debit card, credit card, or electronic payment account;
            ``(2) shall be accompanied by a signed statement 
        containing--
                    ``(A) the contributor's name and the contributor's 
                address in the State in which the primary residence of 
                the contributor is located;
                    ``(B) an oath declaring that the contributor--
                            ``(i) understands that the purpose of the 
                        qualifying contribution is to show support for 
                        the candidate so that the candidate may qualify 
                        for Fair Elections financing;
                            ``(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 kept by the candidate for the 
        Commission and a copy kept by the candidate for the election 
        authorities in the State with respect to which the candidate is 
        seeking election.
    ``(c) Verification of Qualifying Contributions.--The Commission 
shall establish procedures for the auditing and verification of 
qualifying contributions to ensure that such contributions meet the 
requirements of this section.
    ``(d) Prohibiting Payment on Commission Basis of Individuals 
Collecting Qualifying Contributions.--No person may be paid a 
commission on a per qualifying contribution basis for collecting 
qualifying contributions.
    ``(e) Qualifying Contribution Defined.--In this section, the term 
`qualifying contribution' means, with respect to a candidate, a 
contribution that--
            ``(1) is in an amount that is--
                    ``(A) not less than the greater of $5 or the amount 
                determined by the Commission under section 532(c)(2), 
                and
                    ``(B) not more than the greater of $100 or the 
                amount determined by the Commission under section 
                532(c)(2);
            ``(2) is made by an individual--
                    ``(A) who has a primary residence in the State in 
                which such Candidate is seeking election, and
                    ``(B) who is not otherwise prohibited from making a 
                contribution under this Act;
            ``(3) is made during the Fair Elections qualifying period 
        described in section 511(c); and
            ``(4) meets the requirements of subsection (b).

``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); or
                    ``(B) a candidate otherwise fails to comply with 
                the requirements of this title, including any 
                regulatory requirements prescribed by the Commission.
            ``(2) Repayment of benefits.--If certification is revoked 
        under paragraph (1), the candidate shall repay to the Fair 
        Elections Fund established under section 531 an amount equal to 
        the value of benefits received under this title with respect to 
        the election cycle involved plus interest (at a rate determined 
        by the Commission) on any such amount received.
    ``(c) Participating Candidate Defined.--In this title, a 
`participating candidate' means a candidate for the office of 
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, EXPENDITURE, AND FUNDRAISING REQUIREMENTS.

    ``(a) Contributions.--
            ``(1) Permitted sources of contributions.--Except as 
        provided in subsection (c), a candidate who is certified as 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 (including an unexpended contribution received by the 
        candidate with respect to a previous election or a contribution 
        made by any political committee or multicandidate committee) 
        other than--
                    ``(A) qualifying contributions described in section 
                512;
                    ``(B) qualified small dollar contributions 
                described in section 503;
                    ``(C) allocations under section 502; and
                    ``(D) payments under section 503.
            ``(2) Contributions for leadership and related pacs.--A 
        political committee of a participating candidate which is not 
        an authorized committee of such candidate may accept 
        contributions other than contributions described in paragraph 
        (1) from any person if--
                    ``(A) the aggregate amount of the contributions 
                from such person for any election during the election 
                cycle does not exceed $100; and
                    ``(B) no portion of such contributions is disbursed 
                in connection with the campaign of the participating 
                candidate.
    ``(b) Expenditures.--
            ``(1) Permitted sources for expenditures.--Except as 
        provided in subsection (c), a candidate who is certified as a 
        participating candidate with respect to an election shall, with 
        respect to all elections occurring during the election cycle 
        for the office involved--
                    ``(A) make no expenditures from any amounts other 
                than--
                            ``(i) qualifying contributions described in 
                        section 512;
                            ``(ii) qualified small dollar contributions 
                        described in section 503;
                            ``(iii) allocations under section 502; and
                            ``(iv) payments under section 503; and
                    ``(B) make no expenditures from personal funds or 
                the funds of any immediate family member of the 
                candidate (other than funds received through qualified 
                small dollar contributions and qualifying 
                contributions).
            ``(2) Immediate family member defined.--In paragraph 
        (1)(B), 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 qualified small dollar 
        contributions, qualifying contributions, or contributions 
        described in paragraph (a)(2) prior to the date the candidate 
        files a statement of intent under section 511(a)(1) 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 Fair Elections Fund established under section 531; 
                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 (b), the candidate is not in violation 
        of such subsection if the aggregate amount of the prohibited 
        expenditures is less than 20 percent of the amount of an 
        initial allocation to a candidate under section 502(a)(1).
            ``(3) Exception for campaign surpluses from a previous 
        election.--Notwithstanding paragraph (1), unexpended 
        contributions received by the candidate or the 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.

``SEC. 522. DEBATE REQUIREMENT.

    ``A candidate who is certified as a participating candidate with 
respect to an election shall, during the election cycle for the office 
involved, participate in at least--
            ``(1) 1 public debate before the primary election with 
        other participating candidates and other willing candidates 
        from the same party and seeking the same nomination as such 
        candidate; and
            ``(2) 2 public debates before the general election with 
        other participating candidates and other willing candidates 
        seeking the same office as such candidate.

``SEC. 523. REMITTING UNSPENT FUNDS AFTER ELECTION.

    ``(a) In General.--Not later than the date that is 60 days after 
the last election for which a candidate certified as a participating 
candidate qualifies to be on the ballot during the election cycle 
involved, such participating candidate shall remit to the Commission 
for deposit in the Fair Elections Fund established under section 531 an 
amount equal to the lesser of--
            ``(1) the amount of money in the candidate's campaign 
        account; or
            ``(2) the sum of the allocations received by the candidate 
        under section 502 and the payments received by the candidate 
        under section 503.
    ``(b) Exception for Expenditures Incurred but Not Paid as of Date 
of Remittance.--
            ``(1) In general.--Subject to subsection (a), a candidate 
        may withhold from the amount required to be remitted under 
        paragraph (1) of such subsection the amount of any authorized 
        expenditures which were incurred in connection with the 
        candidate's campaign but which remain unpaid as of the deadline 
        applicable to the candidate under such subsection, except that 
        any amount withheld pursuant to this paragraph shall be 
        remitted to the Commission not later than 120 days after the 
        date of the election to which such subsection applies.
            ``(2) Documentation required.--A candidate may withhold an 
        amount of an expenditure pursuant to paragraph (1) only if the 
        candidate submits documentation of the expenditure and the 
        amount to the Commission not later than the deadline applicable 
        to the candidate under subsection (a).

                ``Subtitle D--Administrative Provisions

``SEC. 531. FAIR ELECTIONS FUND.

    ``(a) Establishment.--There is established in the Treasury a fund 
to be known as the `Fair Elections 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.
            ``(3) Transfers resulting from payment of civil 
        penalties.--Amounts transferred into the Fund pursuant to 
        section 309(a)(13).
            ``(4) Proceeds from recovered spectrum auctions.--Amounts 
        deposited pursuant to section 309(j)(8)(E)(ii)(II) of the 
        Communications Act of 1934.
            ``(5) Other deposits.--Amounts deposited into the Fund 
        under--
                    ``(A) section 521(a)(3) (relating to exceptions to 
                contribution requirements);
                    ``(B) section 523 (relating to remittance of 
                allocations from the Fund);
                    ``(C) section 534 (relating to violations); and
                    ``(D) any other section of this Act.
            ``(6) 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.--The sums in the Fund shall be used to 
        provide benefits to participating candidates as provided in 
        subtitle A.
            ``(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. 532. FAIR ELECTIONS OVERSIGHT BOARD.

    ``(a) Establishment.--There is established within the Federal 
Election Commission an entity to be known as the `Fair Elections 
Oversight Board'.
    ``(b) Structure and Membership.--
            ``(1) In general.--The Board shall be composed of 5 members 
        appointed by the President, 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 are nonpartisan and, by reason of their education, 
                experience, and attainments, exceptionally qualified to 
                perform the duties of members of the Board.
                    ``(B) Prohibition.--No member of the Board may be--
                            ``(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 Board; or
                            ``(iii) an officer or employee of a 
                        political party or political campaign.
            ``(3) Date.--Members of the Board shall be appointed not 
        later than 60 days after the date of the enactment of this Act.
            ``(4) Terms.--A member of the Board shall be appointed for 
        a term of 5 years.
            ``(5) Vacancies.--A vacancy on the Board shall be filled 
        not later than 30 calendar days after the date on which the 
        Board 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 Board shall designate a Chairperson 
        from among the members of the Board.
    ``(c) Duties and Powers.--
            ``(1) Administration.--The Board shall have such duties and 
        powers as the Commission may prescribe, including the power to 
        administer the provisions of this title.
            ``(2) Review of fair elections financing.--
                    ``(A) In general.--After each regularly scheduled 
                general election for Federal office, the Board shall 
                conduct a comprehensive review of the Fair Elections 
                financing program under this title, including--
                            ``(i) the maximum dollar amount of 
                        qualified small dollar contributions under 
                        section 503(f);
                            ``(ii) the maximum and minimum dollar 
                        amounts for qualifying contributions under 
                        section 512(d);
                            ``(iii) the number and value of qualifying 
                        contributions a candidate is required to obtain 
                        under section 512(a) to be eligible for 
                        certification as a participating candidate;
                            ``(iv) the amount of allocations that 
                        candidates may receive under section 502;
                            ``(v) the maximum amount of payments a 
                        candidate may receive under section 503;
                            ``(vi) the overall satisfaction of 
                        participating candidates and the American 
                        public with the program; and
                            ``(vii) such other matters relating to 
                        financing of House of Representatives campaigns 
                        as the Board determines are appropriate.
                    ``(B) Criteria for review.--In conducting the 
                review under subparagraph (A), the Board shall consider 
                the following:
                            ``(i) Qualifying contributions and 
                        qualified small dollar contributions.--The 
                        Board shall consider whether the number and 
                        dollar amount of qualifying contributions 
                        required and maximum dollar amount for such 
                        qualifying contributions and qualified small 
                        dollar contributions strikes a 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 
                        Board determines is appropriate.
                            ``(ii) Review of program benefits.--The 
                        Board shall consider whether the totality of 
                        the amount of funds allowed to be raised by 
                        participating candidates (including through 
                        qualifying contributions and small dollar 
                        contributions), allocations under section 502, 
                        and payments under section 503 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 
                        Board determines is appropriate.
                    ``(C) Adjustment of amounts.--
                            ``(i) In general.--Based on the review 
                        conducted under subparagraph (A), the Board 
                        shall provide for the adjustments of the 
                        following amounts:
                                    ``(I) the maximum dollar amount of 
                                qualified small dollar contributions 
                                under section 503(f);
                                    ``(II) the maximum and minimum 
                                dollar amounts for qualifying 
                                contributions under section 512(d);
                                    ``(III) the number and value of 
                                qualifying contributions a candidate is 
                                required to obtain under section 512(a) 
                                to be eligible for certification as a 
                                participating candidate;
                                    ``(IV) the base amount for 
                                candidates under section 502(b); and
                                    ``(V) the maximum amount of 
                                matching contributions a candidate may 
                                receive under section 503(b).
                            ``(ii) Regulations.--The Commission shall 
                        promulgate regulations providing for the 
                        adjustments made by the Board under clause (i).
                    ``(D) Report.--Not later than March 30 following 
                any general election for Federal office, the Board 
                shall submit a report to Congress on the review 
                conducted under paragraph (1). Such report shall 
                contain a detailed statement of the findings, 
                conclusions, and recommendations of the Board based on 
                such review.
    ``(d) Meetings and Hearings.--
            ``(1) Meetings.--The Board may hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the Board considers advisable to carry out the 
        purposes of this Act.
            ``(2) Quorum.--Three members of the Board 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 March 30, 2011, and every 2 years 
thereafter, the Board shall submit to the Committee on House 
Administration of the House of Representatives a report 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 Board 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 Board 
                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 Board to assist in 
                carrying out the duties of the Board. Any such detail 
                shall not interrupt or otherwise affect the civil 
                service status or privileges of the Federal employee.
                    ``(E) Other resources.--The Board 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 Board 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. 533. 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 valid qualifying 
                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 
                Fair Elections Fund established under section 531 and 
                matching contributions under this title through audits 
                of 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. 534. VIOLATIONS AND PENALTIES.

    ``(a) Civil Penalty for Violation of Contribution and Expenditure 
Requirements.--If a candidate who has been certified as a participating 
candidate accepts a contribution or makes an expenditure that is 
prohibited under section 521, the Commission shall assess a civil 
penalty against the candidate in an amount that is not more than 3 
times the amount of the contribution or expenditure. Any amounts 
collected under this subsection shall be deposited into the Fair 
Elections Fund established under section 531.
    ``(b) Repayment for Improper Use of Fair Elections Fund.--
            ``(1) In general.--If the Commission determines that any 
        benefit made available to a participating candidate was not 
        used as provided for in this title or that a participating 
        candidate has violated any of the dates for remission of funds 
        contained in this title, the Commission shall so notify the 
        candidate and the candidate shall pay to the Fund an amount 
        equal to--
                    ``(A) the amount of benefits so used or not 
                remitted, as appropriate; and
                    ``(B) interest on any such amounts (at a rate 
                determined by the Commission).
            ``(2) Other action not precluded.--Any action by the 
        Commission in accordance with this subsection shall not 
        preclude enforcement proceedings by the Commission in 
        accordance with section 309(a), including a referral by the 
        Commission to the Attorney General in the case of an apparent 
        knowing and willful violation of this title.

``SEC. 535. ELECTION CYCLE DEFINED.

    ``In this title, the term `election cycle' means, with respect to 
an election for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress, the period beginning on the day 
after the date of the most recent general election for that office (or, 
if the general election resulted in a runoff election, the date of the 
runoff election) and ending on the date of the next general election 
for that office (or, if the general election resulted in a runoff 
election, the date of the runoff election).''.

SEC. 102. TRANSFER OF PORTION OF CIVIL MONEY PENALTIES INTO FAIR 
              ELECTIONS FUND.

    Section 309(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 437g(a)) is amended by adding at the end the following new 
paragraph:
    ``(13) Upon receipt in the General Fund of the Treasury of any 
payment attributable to a civil money penalty imposed under this 
subsection, there shall be transferred to the Fair Elections Fund 
established under section 531 an amount equal to 50 percent of the 
amount of such payment.''.

SEC. 103. 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 Fair Elections Financing.--Notwithstanding paragraphs (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.''.

SEC. 104. PROHIBITION ON JOINT FUNDRAISING COMMITTEES.

    Section 302(e) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 432(e)) is amended by adding at the end the following new 
paragraph:
            ``(6) No authorized committee of a candidate may establish 
        a joint fundraising committee with a political committee other 
        than an authorized committee of a candidate.''.

SEC. 105. LIMITATION ON COORDINATED EXPENDITURES BY POLITICAL PARTY 
              COMMITTEES WITH PARTICIPATING CANDIDATES.

    (a) In General.--Section 315(d)(3) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(d)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively; and
            (2) by inserting before subparagraph (B), as redesignated 
        by paragraph (1), the following new subparagraph:
                    ``(A) in the case of a candidate for election to 
                the office of Representative in, or Delegate or 
                Resident Commissioner to, the Congress who is certified 
                as a participating candidate under title V, the lesser 
                of--
                            ``(i) 10 percent of the allocation that the 
                        participating candidate is eligible to receive 
                        for the general election under section 502(a); 
                        or
                            ``(ii) the amount which would (but for this 
                        subparagraph) apply with respect to such 
                        candidate under subparagraph (B);''.
    (b) Conforming Amendment.--Section 315(d)(3) of such Act (2 U.S.C. 
441a(d)(3)) is amended--
            (1) in subparagraph (B) (as redesignated by subsection 
        (a)), by inserting ``who is not certified as a participating 
        candidate under title V'' after ``only one Representative''; 
        and
            (2) in subparagraph (C) (as redesignated by subsection 
        (a)), by inserting ``who is not certified as a participating 
        candidate under title V'' after ``any other State''.

SEC. 106. DEPOSIT OF PROCEEDS FROM RECOVERED SPECTRUM AUCTIONS.

    Section 309(j)(8)(E)(ii) of the Communications Act of 1934 (47 
U.S.C. 309(j)(8)(E)(ii)) is amended--
            (1) by striking ``deposited in'' and inserting the 
        following: ``deposited as follows:
                                    ``(I) 90 percent of such proceeds 
                                deposited in''; and
            (2) by adding at the end the following:
                                    ``(II) 10 percent of such proceeds 
                                deposited in the Fair Elections Fund 
                                established under section 531 of the 
                                Federal Election Campaign Act of 
                                1971.''.

     TITLE II--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION

SEC. 201. 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. 202. 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. 203. 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).

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. SEVERABILITY.

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

SEC. 302. EFFECTIVE DATE.

    Except as otherwise provided for in this Act, this Act and the 
amendments made by this Act shall take effect on January 1, 2011.
                                                 Union Calendar No. 410

111th CONGRESS

  2d Session

                               H. R. 6116

                      [Report No. 111-691, Part I]

_______________________________________________________________________

                                 A BILL

  To reform the financing of House elections, and for other purposes.

_______________________________________________________________________

                           December 22, 2010

   The Committee on Energy and Commerce discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed
```