II 

110TH CONGRESS 

1ST SESSION S. 436 

To amend the Internal Revenue Code of 1986 to reform the system of 

public financing for Presidential elections, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 30, 2007 

Mr. FEINGOLD introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to reform 

the system of public financing for Presidential elections, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Presidential Funding Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Revisions to system of Presidential primary matching payments. 

Sec. 3. Requiring participation in primary payment system as condition of eligibility for general election payments. 

Sec. 4. Revisions to expenditure limits. 


rwilkins on PROD1PC63 with BILLS
2 

•S 436 IS

Sec. 5. Additional payments and increased expenditure limits for candidates 

participating in public financing who face certain nonparticipating opponents. 

Sec. 6. Establishment of uniform date for release of payments from Presidential Election Campaign Fund to eligible candidates. 

Sec. 7. Revisions to designation of income tax payments by individual taxpayers. 

Sec. 8. Amounts in Presidential Election Campaign Fund. 

Sec. 9. Repeal of priority in use of funds for political conventions. 

Sec. 10. Regulation of convention financing. 

Sec. 11. Disclosure of bundled contributions. 

Sec. 12. Offset. 

Sec. 13. Effective date. 

1 SEC. 2. REVISIONS TO SYSTEM OF PRESIDENTIAL PRIMARY 

2 MATCHING PAYMENTS. 

3 (a) INCREASE IN MATCHING PAYMENTS.— 

4 (1) IN GENERAL.—Section 9034(a) of the In5 ternal Revenue Code of 1986 is amended— 

6 (A) by striking ‘‘an amount equal to the 

7 amount’’ and inserting ‘‘an amount equal to 

8 400 percent of the amount’’; and 

9 (B) by striking ‘‘$250’’ and inserting 

10 ‘‘$200’’. 

11 (2) ADDITIONAL MATCHING PAYMENTS FOR

12 CANDIDATES AFTER MARCH 31 OF THE ELECTION

13 YEAR.—Section 9034(b) of such Code is amended to 

14 read as follows: 

15 ‘‘(b) ADDITIONAL PAYMENTS FOR CANDIDATES

16 AFTER MARCH 31 OF THE ELECTION YEAR.—In addition 

17 to any payment under subsection (a), an individual who 

18 is a candidate after March 31 of the calendar year in 

19 which the presidential election is held and who is eligible 


rwilkins on PROD1PC63 with BILLS
3 

•S 436 IS

1 to receive payments under section 9033 shall be entitled 

2 to payments under section 9037 in an amount equal to 

3 the amount of each contribution received by such indi4 vidual after March 31 of the calendar year in which such 

5 presidential election is held, disregarding any amount of 

6 contributions from any person to the extent that the total 

7 of the amounts contributed by such person after such date 

8 exceeds $200.’’. 

9 (3) CONFORMING AMENDMENTS.—Section 9034 

10 of such Code, as amended by paragraph (2), is 

11 amended— 

12 (A) by striking the last sentence of sub13 section (a); and 

14 (B) by inserting after subsection (b) the 

15 following new subsection: 

16 ‘‘(c) CONTRIBUTION DEFINED.—For purposes of this 

17 section and section 9033(b), the term ‘contribution’ means 

18 a gift of money made by a written instrument which iden19 tifies the person making the contribution by full name and 

20 mailing address, but does not include a subscription, loan, 

21 advance, or deposit of money, or anything of value or any22 thing described in subparagraph (B), (C), or (D) of sec23 tion 9032(4).’’. 

24 (b) ELIGIBILITY REQUIREMENTS.— 


rwilkins on PROD1PC63 with BILLS
4 

•S 436 IS

1 (1) AMOUNT OF AGGREGATE CONTRIBUTIONS

2 PER STATE.—Section 9033(b)(3) of such Code is 

3 amended by striking ‘‘$5,000’’ and inserting 

4 ‘‘$25,000’’. 

5 (2) AMOUNT OF INDIVIDUAL CONTRIBU6 TIONS.—Section 9033(b)(4) of such Code is amend7 ed by striking ‘‘$250’’ and inserting ‘‘$200’’. 

8 (3) PARTICIPATION IN SYSTEM FOR PAYMENTS

9 FOR GENERAL ELECTION.—Section 9033(b) of such 

10 Code is amended— 

11 (A) by striking ‘‘and’’ at the end of para12 graph (3); 

13 (B) by striking the period at the end of 

14 paragraph (4) and inserting ‘‘, and’’; and 

15 (C) by adding at the end the following new 

16 paragraph: 

17 ‘‘(5) if the candidate is nominated by a political 

18 party for election to the office of President, the can19 didate will apply for and accept payments with re20 spect to the general election for such office in ac21 cordance with chapter 95, including the requirement 

22 that the candidate and the candidate’s authorized 

23 committees will not incur qualified campaign ex24 penses in excess of the aggregate payments to which 

25 they will be entitled under section 9004.’’. 


rwilkins on PROD1PC63 with BILLS
5 

•S 436 IS

1 (c) PERIOD OF AVAILABILITY OF PAYMENTS.—Sec2 tion 9032(6) of such Code is amended by striking ‘‘the 

3 beginning of the calendar year in which a general election 

4 for the office of President of the United States will be 

5 held’’ and inserting ‘‘the date that is 6 months prior to 

6 the date of the earliest State primary election’’. 

7 SEC. 3. REQUIRING PARTICIPATION IN PRIMARY PAYMENT 

8 SYSTEM AS CONDITION OF ELIGIBILITY FOR 

9 GENERAL ELECTION PAYMENTS. 

10 (a) MAJOR PARTY CANDIDATES.—Section 9003(b) of 

11 the Internal Revenue Code of 1986 is amended— 

12 (1) by redesignating paragraphs (1) and (2) as 

13 paragraphs (2) and (3); and 

14 (2) by inserting before paragraph (2) (as so re15 designated) the following new paragraph: 

16 ‘‘(1) the candidate received payments under 

17 chapter 96 for the campaign for nomination;’’. 

18 (b) MINOR PARTY CANDIDATES.—Section 9003(c) of 

19 such Code is amended— 

20 (1) by redesignating paragraphs (1) and (2) as 

21 paragraphs (2) and (3); and 

22 (2) by inserting before paragraph (2) (as so re23 designated) the following new paragraph: 

24 ‘‘(1) the candidate received payments under 

25 chapter 96 for the campaign for nomination;’’. 


rwilkins on PROD1PC63 with BILLS
6 

•S 436 IS

1 SEC. 4. REVISIONS TO EXPENDITURE LIMITS. 

2 (a) INCREASE IN EXPENDITURE LIMITS FOR PAR3 TICIPATING CANDIDATES; ELIMINATION OF STATE-SPE4 CIFIC LIMITS.— 

5 (1) IN GENERAL.—Section 315(b)(1) of the 

6 Federal Election Campaign Act of 1971 (2 U.S.C. 

7 441a(b)(1)) is amended by striking ‘‘may make ex8 penditures in excess of’’ and all that follows and in9 serting ‘‘may make expenditures— 

10 ‘‘(A) with respect to a campaign for nomination 

11 for election to such office— 

12 ‘‘(i) in excess of $100,000,000 before April 

13 1 of the calendar year in which the presidential 

14 election is held; and 

15 ‘‘(ii) in excess of $150,000,000 before the 

16 date described in section 9006(b) of the Inter17 nal Revenue Code of 1986; and 

18 ‘‘(B) with respect to a campaign for election to 

19 such office, in excess of $100,000,000.’’. 

20 (2) CLERICAL CORRECTION.—Section 

21 9004(a)(1) of the Internal Revenue Code of 1986 is 

22 amended by striking ‘‘section 320(b)(1)(B) of the 

23 Federal Election Campaign Act of 1971’’ and insert24 ing ‘‘section 315(b)(1)(B) of the Federal Election 

25 Campaign Act of 1971’’. 


rwilkins on PROD1PC63 with BILLS
7 

•S 436 IS

1 (b) INCREASE IN LIMIT ON COORDINATED PARTY

2 EXPENDITURES.—Section 315(d)(2) of the Federal Elec3 tion Campaign Act of 1971 (2 U.S.C. 441a(d)(2)) is 

4 amended to read as follows: 

5 ‘‘(2)(A) The national committee of a political party 

6 may not make any expenditure in connection with the gen7 eral election campaign of any candidate for President of 

8 the United States who is affiliated with such party which 

9 exceeds $25,000,000. 

10 ‘‘(B) Notwithstanding the limitation under subpara11 graph (A), during the period beginning on April 1 of the 

12 year in which a presidential election is held and ending 

13 on the date described in section 9006(b) of the Internal 

14 Revenue Code of 1986, the national committee of a polit15 ical party may make additional expenditures in connection 

16 with the general election campaign of a candidate for 

17 President of the United States who is affiliated with such 

18 party in an amount not to exceed $25,000,000. 

19 ‘‘(C)(i) Notwithstanding subparagraph (B) or the 

20 limitation under subparagraph (A), if any nonpartici21 pating primary candidate (within the meaning of sub22 section (b)(3)) affiliated with the national committee of 

23 a political party receives contributions or makes expendi24 tures with respect to such candidate’s campaign in an ag25 gregate amount greater than 120 percent of the expendiVerDate Aug 31 2005 23:03 Jan 31, 2007 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S436.IS S436

rwilkins on PROD1PC63 with BILLS
8 

•S 436 IS

1 ture limitation in effect under subsection (b)(1)(A)(ii), 

2 then, during the period described in clause (ii), the na3 tional committee of any other political party may make 

4 expenditures in connection with the general election cam5 paign of a candidate for President of the United States 

6 who is affiliated with such other party without limitation. 

7 ‘‘(ii) The period described in this clause is the pe8 riod— 

9 ‘‘(I) beginning on the later of April 1 of the 

10 year in which a presidential election is held or the 

11 date on which such nonparticipating primary can12 didate first receives contributions or makes expendi13 tures in the aggregate amount described in clause 

14 (i); and 

15 ‘‘(II) ending on the earlier of the date such 

16 nonparticipating primary candidate ceases to be a 

17 candidate for nomination to the office of President 

18 of the United States and is not a candidate for such 

19 office or the date described in section 9006(b) of the 

20 Internal Revenue Code of 1986. 

21 ‘‘(iii) If the nonparticipating primary candidate de22 scribed in clause (i) ceases to be a candidate for nomina23 tion to the office of President of the United States and 

24 is not a candidate for such office, clause (i) shall not apply 

25 and the limitations under subparagraphs (A) and (B) shall 


rwilkins on PROD1PC63 with BILLS
9 

•S 436 IS

1 apply. It shall not be considered to be a violation of this 

2 Act if the application of the preceding sentence results in 

3 the national committee of a political party violating the 

4 limitations under subparagraphs (A) and (B) solely by 

5 reason of expenditures made by such national committee 

6 during the period in which clause (i) applied. 

7 ‘‘(D) For purposes of this paragraph— 

8 ‘‘(i) any expenditure made by or on behalf of a 

9 national committee of a political party and in con10 nection with a presidential election shall be consid11 ered to be made in connection with the general elec12 tion campaign of a candidate for President of the 

13 United States who is affiliated with such party; and 

14 ‘‘(ii) any communication made by or on behalf 

15 of such party shall be considered to be made in con16 nection with the general election campaign of a can17 didate for President of the United States who is af18 filiated with such party if any portion of the commu19 nication is in connection with such election. 

20 ‘‘(E) Any expenditure under this paragraph shall be 

21 in addition to any expenditure by a national committee 

22 of a political party serving as the principal campaign com23 mittee of a candidate for the office of President of the 

24 United States.’’. 


rwilkins on PROD1PC63 with BILLS
10 

•S 436 IS

1 (c) CONFORMING AMENDMENTS RELATING TO TIM2 ING OF COST-OF-LIVING ADJUSTMENT.— 

3 (1) IN GENERAL.—Section 315(c)(1) of such 

4 Act (2 U.S.C. 441a(c)(1)) is amended— 

5 (A) in subparagraph (B), by striking ‘‘(b), 

6 (d),’’ and inserting ‘‘(d)(3)’’; and 

7 (B) by inserting at the end the following 

8 new subparagraph: 

9 ‘‘(D) In any calendar year after 2008— 

10 ‘‘(i) a limitation established by subsection (b) or 

11 (d)(2) shall be increased by the percent difference 

12 determined under subparagraph (A); 

13 ‘‘(ii) each amount so increased shall remain in 

14 effect for the calendar year; and 

15 ‘‘(iii) if any amount after adjustment under 

16 clause (i) is not a multiple of $100, such amount 

17 shall be rounded to the nearest multiple of $100.’’. 

18 (2) BASE YEAR.—Section 315(c)(2)(B) of such 

19 Act (2 U.S.C. 441a(c)(2)(B)) is amended— 

20 (A) in clause (i)— 

21 (i) by striking ‘‘subsections (b) and 

22 (d)’’ and inserting ‘‘subsection (d)(3)’’; 

23 and 

24 (ii) by striking ‘‘and’’ at the end; 


rwilkins on PROD1PC63 with BILLS
11 

•S 436 IS

1 (B) in clause (ii), by striking the period at 

2 the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following new 

4 clause: 

5 ‘‘(iii) for purposes of subsection (b) and 

6 (d)(2), calendar year 2007.’’. 

7 (d) REPEAL OF EXCLUSION OF FUNDRAISING COSTS

8 FROM TREATMENT AS EXPENDITURES.—Section 

9 301(9)(B)(vi) of the Federal Election Campaign Act of 

10 1971 (2 U.S.C. 431(9)(B)(vi)) is amended by striking ‘‘in 

11 excess of an amount equal to 20 percent of the expenditure 

12 limitation applicable to such candidate under section 

13 315(b)’’ and inserting the following: ‘‘who is seeking nomi14 nation for election or election to the office of President 

15 or Vice President of the United States’’. 

16 SEC. 5. ADDITIONAL PAYMENTS AND INCREASED EXPENDI17 TURE LIMITS FOR CANDIDATES PARTICI18 PATING IN PUBLIC FINANCING WHO FACE 

19 CERTAIN NONPARTICIPATING OPPONENTS. 

20 (a) CANDIDATES IN PRIMARY ELECTIONS.— 

21 (1) ADDITIONAL PAYMENTS.— 

22 (A) IN GENERAL.—Section 9034 of the In23 ternal Revenue Code of 1986, as amended by 

24 section 2, is amended by redesignating sub25 section (c) as subsection (d) and by inserting 


rwilkins on PROD1PC63 with BILLS
12 

•S 436 IS

1 after subsection (b) the following new sub2 section: 

3 ‘‘(c) ADDITIONAL PAYMENTS FOR CANDIDATES FAC4 ING NONPARTICIPATING OPPONENTS.— 

5 ‘‘(1) IN GENERAL.—In addition to any pay6 ments provided under subsections (a) and (b), each 

7 candidate described in paragraph (2) shall be enti8 tled to— 

9 ‘‘(A) a payment under section 9037 in an 

10 amount equal to the amount of each contribu11 tion received by such candidate on or after the 

12 beginning of the calendar year preceding the 

13 calendar year of the presidential election with 

14 respect to which such candidate is seeking nom15 ination and before the qualifying date, dis16 regarding any amount of contributions from 

17 any person to the extent that the total of the 

18 amounts contributed by such person exceeds 

19 $200, and 

20 ‘‘(B) payments under section 9037 in an 

21 amount equal to the amount of each contribu22 tion received by such candidate on or after the 

23 qualifying date, disregarding any amount of 

24 contributions from any person to the extent 


rwilkins on PROD1PC63 with BILLS
13 

•S 436 IS

1 that the total of the amounts contributed by 

2 such person exceeds $200. 

3 ‘‘(2) CANDIDATES TO WHOM THIS SUBSECTION

4 APPLIES.—A candidate is described in this para5 graph if such candidate— 

6 ‘‘(A) is eligible to receive payments under 

7 section 9033, and 

8 ‘‘(B) is opposed by a nonparticipating pri9 mary candidate of the same political party who 

10 receives contributions or makes expenditures 

11 with respect to the campaign— 

12 ‘‘(i) before April 1 of the year in 

13 which the presidential election is held, in 

14 an aggregate amount greater than 120 

15 percent of the expenditure limitation under 

16 section 315(b)(1)(A)(i) of the Federal 

17 Election Campaign Act of 1971, or 

18 ‘‘(ii) before the date described in sec19 tion 9006(b), in an aggregate amount 

20 greater than 120 percent of the expendi21 ture limitation under section 

22 315(b)(1)(A)(ii) of such Act. 

23 ‘‘(3) NONPARTICIPATING PRIMARY CAN24 DIDATE.—In this subsection, the term ‘nonpartici25 pating primary candidate’ means a candidate for 


rwilkins on PROD1PC63 with BILLS
14 

•S 436 IS

1 nomination for election for the office of President 

2 who is not eligible under section 9033 to receive pay3 ments from the Secretary under this chapter. 

4 ‘‘(4) QUALIFYING DATE.—In this subsection, 

5 the term ‘qualifying date’ means the first date on 

6 which the contributions received or expenditures 

7 made by the nonparticipating primary candidate de8 scribed in paragraph (2)(B) exceed the amount de9 scribed under either clause (i) or clause (ii) of such 

10 paragraph.’’. 

11 (B) CONFORMING AMENDMENT.—Section 

12 9034(b) of such Code, as amended by section 2, 

13 is amended by striking ‘‘subsection (a)’’ and in14 serting ‘‘subsections (a) and (c)’’. 

15 (2) INCREASE IN EXPENDITURE LIMIT.—Sec16 tion 315(b) of the Federal Election Campaign Act of 

17 1971 (2 U.S.C. 441a(b)) is amended by adding at 

18 the end the following new paragraph: 

19 ‘‘(3)(A) In the case of an eligible candidate, each of 

20 the limitations under clause (i) and (ii) of paragraph 

21 (1)(A) shall be increased— 

22 ‘‘(i) by $50,000,000, if any nonparticipating 

23 primary candidate of the same political party as 

24 such candidate receives contributions or makes ex25 penditures with respect to the campaign in an aggreVerDate Aug 31 2005 23:03 Jan 31, 2007 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S436.IS S436

rwilkins on PROD1PC63 with BILLS
15 

•S 436 IS

1 gate amount greater than 120 percent of the ex2 penditure limitation applicable to eligible candidates 

3 under clause (i) or (ii) of paragraph (1)(A) (before 

4 the application of this clause), and 

5 ‘‘(ii) by $100,000,000, if such nonparticipating 

6 primary candidate receives contributions or makes 

7 expenditures with respect to the campaign in an ag8 gregate amount greater than 120 percent of the ex9 penditure limitation applicable to eligible candidates 

10 under clause (i) or (ii) of paragraph (1)(A) after the 

11 application of clause (i). 

12 ‘‘(B) Each dollar amount under subparagraph (A) 

13 shall be considered a limitation under this subsection for 

14 purposes of subsection (c). 

15 ‘‘(C) In this paragraph, the term ‘eligible candidate’ 

16 means, with respect to any period, a candidate— 

17 ‘‘(i) who is eligible to receive payments under 

18 section 9033 of the Internal Revenue Code of 1986; 

19 ‘‘(ii) who is opposed by a nonparticipating pri20 mary candidate; and 

21 ‘‘(iii) with respect to whom the Commission has 

22 given notice under section 304(i)(1)(B)(i). 

23 ‘‘(D) In this paragraph, the term ‘nonparticipating 

24 primary candidate’ means, with respect to any eligible can25 didate, a candidate for nomination for election for the ofVerDate Aug 31 2005 23:03 Jan 31, 2007 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S436.IS S436

rwilkins on PROD1PC63 with BILLS
16 

•S 436 IS

1 fice of President who is not eligible under section 9033 

2 of the Internal Revenue Code of 1986 to receive payments 

3 from the Secretary of the Treasury under chapter 96 of 

4 such Code.’’. 

5 (b) CANDIDATES IN GENERAL ELECTIONS.— 

6 (1) ADDITIONAL PAYMENTS.— 

7 (A) IN GENERAL.—Section 9004(a)(1) of 

8 the Internal Revenue Code of 1986 is amend9 ed— 

10 (i) by striking ‘‘(1) The eligible can11 didates’’ and inserting ‘‘(1)(A) Except as 

12 provided in subparagraph (B), the eligible 

13 candidates’’; and 

14 (ii) by adding at the end the following 

15 new subparagraph: 

16 ‘‘(B) In addition to the payments described in 

17 subparagraph (A), each eligible candidate of a major 

18 party in a presidential election with an opponent in 

19 the election who is not eligible to receive payments 

20 under section 9006 and who receives contributions 

21 or makes expenditures with respect to the primary 

22 and general elections in an aggregate amount great23 er than 120 percent of the combined expenditure 

24 limitations applicable to eligible candidates under 

25 section 315(b)(1) of the Federal Election Campaign 


rwilkins on PROD1PC63 with BILLS
17 

•S 436 IS

1 Act of 1971 shall be entitled to an equal payment 

2 under section 9006 in an amount equal to 100 per3 cent of the expenditure limitation applicable under 

4 such section with respect to a campaign for election 

5 to the office of President.’’. 

6 (B) SPECIAL RULE FOR MINOR PARTY

7 CANDIDATES.—Section 9004(a)(2)(A) of such 

8 Code is amended— 

9 (i) by striking ‘‘(A) The eligible can10 didates’’ and inserting ‘‘(A)(i) Except as 

11 provided in clause (ii), the eligible can12 didates’’; and 

13 (ii) by adding at the end the following 

14 new clause: 

15 ‘‘(ii) In addition to the payments described in 

16 clause (i), each eligible candidate of a minor party 

17 in a presidential election with an opponent in the 

18 election who is not eligible to receive payments 

19 under section 9006 and who receives contributions 

20 or makes expenditures with respect to the primary 

21 and general elections in an aggregate amount great22 er than 120 percent of the combined expenditure 

23 limitations applicable to eligible candidates under 

24 section 315(b)(1) of the Federal Election Campaign 

25 Act of 1971 shall be entitled to an equal payment 


rwilkins on PROD1PC63 with BILLS
18 

•S 436 IS

1 under section 9006 in an amount equal to 100 per2 cent of the payment to which such candidate is enti3 tled under clause (i).’’. 

4 (2) EXCLUSION OF ADDITIONAL PAYMENT

5 FROM DETERMINATION OF EXPENDITURE LIMITS.— 

6 Section 315(b) of the Federal Election Campaign 

7 Act of 1971 (2 U.S.C. 441a(b)), as amended by sub8 section (a), is amended by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(4) In the case of a candidate who is eligible to re11 ceive payments under section 9004(a)(1)(B) or 

12 9004(a)(2)(A)(ii) of the Internal Revenue Code of 1986, 

13 the limitation under paragraph (1)(B) shall be increased 

14 by the amount of such payments received by the can15 didate.’’. 

16 (c) PROCESS FOR DETERMINATION OF ELIGIBILITY

17 FOR ADDITIONAL PAYMENT AND INCREASED EXPENDI18 TURE LIMITS.—Section 304 of the Federal Election Cam19 paign Act of 1971 (2 U.S.C. 434) is amended by adding 

20 at the end the following new subsection: 

21 ‘‘(i) REPORTING AND CERTIFICATION FOR ADDI22 TIONAL PUBLIC FINANCING PAYMENTS FOR CAN23 DIDATES.— 

24 ‘‘(1) PRIMARY CANDIDATES.— 


rwilkins on PROD1PC63 with BILLS
19 

•S 436 IS

1 ‘‘(A) NOTIFICATION OF EXPENDITURES BY

2 INELIGIBLE CANDIDATES.— 

3 ‘‘(i) EXPENDITURES IN EXCESS OF

4 120 PERCENT OF LIMIT.—If a candidate 

5 for a nomination for election for the office 

6 of President who is not eligible to receive 

7 payments under section 9033 of the Inter8 nal Revenue Code of 1986 receives con9 tributions or makes expenditures with re10 spect to the primary election in an aggre11 gate amount greater than 120 percent of 

12 the expenditure limitation applicable to eli13 gible candidates under clause (i) or (ii) of 

14 section 315(b)(1)(A), the candidate shall 

15 notify the Commission in writing that the 

16 candidate has received aggregate contribu17 tions or made aggregate expenditures in 

18 such an amount not later than 24 hours 

19 after first receiving aggregate contribu20 tions or making aggregate expenditures in 

21 such an amount. 

22 ‘‘(ii) EXPENDITURES IN EXCESS OF

23 120 PERCENT OF INCREASED LIMIT.—If a 

24 candidate for a nomination for election for 

25 the office of President who is not eligible 


rwilkins on PROD1PC63 with BILLS
20 

•S 436 IS

1 to receive payments under section 9033 of 

2 the Internal Revenue Code of 1986 re3 ceives contributions or makes expenditures 

4 with respect to the primary election in an 

5 aggregate amount greater than 120 per6 cent of the expenditure limitation applica7 ble to eligible candidates under section 

8 315(b) after the application of paragraph 

9 (3)(A)(i) thereof, the candidate shall notify 

10 the Commission in writing that the can11 didate has received aggregate contributions 

12 or made aggregate expenditures in such an 

13 amount not later than 24 hours after first 

14 receiving aggregate contributions or mak15 ing aggregate expenditures in such an 

16 amount. 

17 ‘‘(B) CERTIFICATION.—Not later than 24 

18 hours after receiving any written notice under 

19 subparagraph (A) from a candidate, the Com20 mission shall— 

21 ‘‘(i) certify to the Secretary of the 

22 Treasury that opponents of the candidate 

23 are eligible for additional payments under 

24 section 9034(c) of the Internal Revenue 

25 Code of 1986; 


rwilkins on PROD1PC63 with BILLS
21 

•S 436 IS

1 ‘‘(ii) notify each opponent of the can2 didate who is eligible to receive payments 

3 under section 9033 of the Internal Rev4 enue Code of 1986 of the amount of the 

5 increased limitation on expenditures which 

6 applies pursuant to section 315(b)(3); and 

7 ‘‘(iii) in the case of a notice under 

8 subparagraph (A)(i), notify the national 

9 committee of each political party (other 

10 than the political party with which the can11 didate is affiliated) of the inapplicability of 

12 expenditure limits under section 315(d)(2) 

13 pursuant to subparagraph (C) thereof. 

14 ‘‘(2) GENERAL ELECTION CANDIDATES.— 

15 ‘‘(A) NOTIFICATION OF EXPENDITURES BY

16 INELIGIBLE CANDIDATES.—If a candidate in a 

17 presidential election who is not eligible to re18 ceive payments under section 9006 of the Inter19 nal Revenue Code of 1986 receives contribu20 tions or makes expenditures with respect to the 

21 primary and general elections in an aggregate 

22 amount greater than 120 percent of the com23 bined expenditure limitations applicable to eligi24 ble candidates under section 315(b)(1), the can25 didate shall notify the Commission in writing 


rwilkins on PROD1PC63 with BILLS
22 

•S 436 IS

1 that the candidate has received aggregate con2 tributions or made aggregate expenditures in 

3 such an amount not later than 24 hours after 

4 first receiving aggregate contributions or mak5 ing aggregate expenditures in such an amount. 

6 ‘‘(B) CERTIFICATION.—Not later than 24 

7 hours after receiving a written notice under 

8 subparagraph (A), the Commission shall certify 

9 to the Secretary of the Treasury for payment to 

10 any eligible candidate who is entitled to an ad11 ditional payment under paragraph (1)(B) or 

12 (2)(A)(ii) of section 9004(a) of the Internal 

13 Revenue Code of 1986 that the candidate is en14 titled to payment in full of the additional pay15 ment under such section.’’. 

16 SEC. 6. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE 

17 OF PAYMENTS FROM PRESIDENTIAL ELEC18 TION CAMPAIGN FUND TO ELIGIBLE CAN19 DIDATES. 

20 (a) IN GENERAL.—The first sentence of section 

21 9006(b) of the Internal Revenue Code of 1986 is amended 

22 to read as follows: ‘‘If the Secretary of the Treasury re23 ceives a certification from the Commission under section 

24 9005 for payment to the eligible candidates of a political 

25 party, the Secretary shall, on the last Friday occurring 


rwilkins on PROD1PC63 with BILLS
23 

•S 436 IS

1 before the first Monday in September, pay to such can2 didates of the fund the amount certified by the Commis3 sion.’’. 

4 (b) CONFORMING AMENDMENT.—The first sentence 

5 of section 9006(c) of such Code is amended by striking 

6 ‘‘the time of a certification by the Comptroller General 

7 under section 9005 for payment’’ and inserting ‘‘the time 

8 of making a payment under subsection (b)’’. 

9 SEC. 7. REVISIONS TO DESIGNATION OF INCOME TAX PAY10 MENTS BY INDIVIDUAL TAXPAYERS. 

11 (a) INCREASE IN AMOUNT DESIGNATED.—Section 

12 6096(a) of the Internal Revenue Code of 1986 is amend13 ed— 

14 (1) in the first sentence, by striking ‘‘$3’’ each 

15 place it appears and inserting ‘‘$10’’; and 

16 (2) in the second sentence— 

17 (A) by striking ‘‘$6’’ and inserting ‘‘$20’’; 

18 and 

19 (B) by striking ‘‘$3’’ and inserting ‘‘$10’’. 

20 (b) INDEXING.—Section 6096 of such Code is amend21 ed by adding at the end the following new subsection: 

22 ‘‘(d) INDEXING OF AMOUNT DESIGNATED.— 

23 ‘‘(1) IN GENERAL.—With respect to each tax24 able year after 2008, each amount referred to in 

25 subsection (a) shall be increased by the percent difVerDate Aug 31 2005 23:03 Jan 31, 2007 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S436.IS S436

rwilkins on PROD1PC63 with BILLS
24 

•S 436 IS

1 ference described in paragraph (2), except that if 

2 any such amount after such an increase is not a 

3 multiple of $1, such amount shall be rounded to the 

4 nearest multiple of $1. 

5 ‘‘(2) PERCENT DIFFERENCE DESCRIBED.—The 

6 percent difference described in this paragraph with 

7 respect to a taxable year is the percent difference 

8 determined under section 315(c)(1)(A) of the Fed9 eral Election Campaign Act of 1971 with respect to 

10 the calendar year during which the taxable year be11 gins, except that the base year involved shall be 

12 2008.’’. 

13 (c) ENSURING TAX PREPARATION SOFTWARE DOES

14 NOT PROVIDE AUTOMATIC RESPONSE TO DESIGNATION

15 QUESTION.—Section 6096 of such Code, as amended by 

16 subsection (b), is amended by adding at the end the fol17 lowing new subsection: 

18 ‘‘(e) ENSURING TAX PREPARATION SOFTWARE DOES

19 NOT PROVIDE AUTOMATIC RESPONSE TO DESIGNATION

20 QUESTION.—The Secretary shall promulgate regulations 

21 to ensure that electronic software used in the preparation 

22 or filing of individual income tax returns does not auto23 matically accept or decline a designation of a payment 

24 under this section.’’. 


rwilkins on PROD1PC63 with BILLS
25 

•S 436 IS

1 (d) PUBLIC INFORMATION PROGRAM ON DESIGNA2 TION.—Section 6096 of such Code, as amended by sub3 sections (b) and (c), is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(f) PUBLIC INFORMATION PROGRAM.— 

6 ‘‘(1) IN GENERAL.—The Federal Election Com7 mission shall conduct a program to inform and edu8 cate the public regarding the purposes of the Presi9 dential Election Campaign Fund, the procedures for 

10 the designation of payments under this section, and 

11 the effect of such a designation on the income tax 

12 liability of taxpayers. 

13 ‘‘(2) USE OF FUNDS FOR PROGRAM.—Amounts 

14 in the Presidential Election Campaign Fund shall be 

15 made available to the Federal Election Commission 

16 to carry out the program under this subsection, ex17 cept that the amount made available for this pur18 pose may not exceed $10,000,000 with respect to 

19 any Presidential election cycle. In this paragraph, a 

20 ‘Presidential election cycle’ is the 4-year period be21 ginning with January of the year following a Presi22 dential election.’’. 

23 (e) EFFECTIVE DATE.—The amendments made by 

24 this section shall take effect on the date of the enactment 

25 of this Act. 


rwilkins on PROD1PC63 with BILLS
26 

•S 436 IS

1 SEC. 8. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN 

2 FUND. 

3 (a) DETERMINATION OF AMOUNTS IN FUND.—Sec4 tion 9006(c) of the Internal Revenue Code of 1986 is 

5 amended by adding at the end the following new sentence: 

6 ‘‘In making a determination of whether there are insuffi7 cient moneys in the fund for purposes of the previous sen8 tence, the Secretary shall take into account in determining 

9 the balance of the fund for a Presidential election year 

10 the Secretary’s best estimate of the amount of moneys 

11 which will be deposited into the fund during the year, ex12 cept that the amount of the estimate may not exceed the 

13 average of the annual amounts deposited in the fund dur14 ing the previous 3 years.’’. 

15 (b) SPECIAL RULE FOR FIRST CAMPAIGN CYCLE

16 UNDER THIS ACT.— 

17 (1) IN GENERAL.—Section 9006 of the Internal 

18 Revenue Code of 1986 is amended by adding at the 

19 end the following new subsection: 

20 ‘‘(d) SPECIAL AUTHORITY TO BORROW.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

22 (c), there are authorized to be appropriated to the 

23 fund, as repayable advances, such sums as are nec24 essary to carry out the purposes of the fund during 

25 the period ending on the first presidential election 


rwilkins on PROD1PC63 with BILLS
27 

•S 436 IS

1 occurring after the date of the enactment of this 

2 subsection. 

3 ‘‘(2) REPAYMENT OF ADVANCES.— 

4 ‘‘(A) IN GENERAL.—Advances made to the 

5 fund shall be repaid, and interest on such ad6 vances shall be paid, to the general fund of the 

7 Treasury when the Secretary determines that 

8 moneys are available for such purposes in the 

9 fund. 

10 ‘‘(B) RATE OF INTEREST.—Interest on ad11 vances made to the fund shall be at a rate de12 termined by the Secretary of the Treasury (as 

13 of the close of the calendar month preceding the 

14 month in which the advance is made) to be 

15 equal to the current average market yield on 

16 outstanding marketable obligations of the 

17 United States with remaining periods to matu18 rity comparable to the anticipated period during 

19 which the advance will be outstanding and shall 

20 be compounded annually.’’. 

21 (2) EFFECTIVE DATE.—The amendment made 

22 by this subsection shall take effect on the date of the 

23 enactment of this Act. 


rwilkins on PROD1PC63 with BILLS
28 

•S 436 IS

1 SEC. 9. REPEAL OF PRIORITY IN USE OF FUNDS FOR POLIT2 ICAL CONVENTIONS. 

3 (a) IN GENERAL.—Section 9008(a) of the Internal 

4 Revenue Code of 1986 is amended by striking the period 

5 at the end of the second sentence and all that follows and 

6 inserting the following: ‘‘, except that the amount depos7 ited may not exceed the amount available after the Sec8 retary determines that amounts for payments under sec9 tion 9006 and section 9037 are available for such pay10 ments.’’. 

11 (b) CONFORMING AMENDMENT.—The second sen12 tence of section 9037(a) of such Code is amended by strik13 ing ‘‘section 9006(c) and for payments under section 

14 9008(b)(3)’’ and inserting ‘‘section 9006’’. 

15 SEC. 10. REGULATION OF CONVENTION FINANCING. 

16 Section 323 of the Federal Election Campaign Act 

17 of 1971 (2 U.S.C. 441i) is amended by adding at the end 

18 the following new subsection: 

19 ‘‘(g) NATIONAL CONVENTIONS.—Any person de20 scribed in subsection (e) shall not solicit, receive, direct, 

21 transfer, or spend any funds in connection with a presi22 dential nominating convention of any political party, in23 cluding funds for a host committee, civic committee, mu24 nicipality, or any other person or entity spending funds 

25 in connection with such a convention, unless such funds— 


rwilkins on PROD1PC63 with BILLS
29 

•S 436 IS

1 ‘‘(1) are not in excess of the amounts permitted 

2 with respect to contributions to the political com3 mittee established and maintained by a national po4 litical party committee under section 315; and 

5 ‘‘(2) are not from sources prohibited by this Act 

6 from making contributions in connection with an 

7 election for Federal office.’’. 

8 SEC. 11. DISCLOSURE OF BUNDLED CONTRIBUTIONS. 

9 (a) IN GENERAL.—Section 304(b) of the Federal 

10 Election Campaign Act of 1971 (2 U.S.C. 434(b)) is 

11 amended— 

12 (1) by striking ‘‘and’’ at the end of paragraph 

13 (7); 

14 (2) by striking the period at the end of para15 graph (8) and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following new 

17 paragraph: 

18 ‘‘(9) in the case of an authorized committee of 

19 a candidate for President, the name, address, occu20 pation, and employer of each person who makes a 

21 bundled contribution, and the aggregate amount of 

22 the bundled contributions made by such person dur23 ing the reporting period.’’. 

24 (b) BUNDLED CONTRIBUTION.—Section 301 of the 

25 Federal Election Campaign Act of 1971 (2 U.S.C. 431) 


rwilkins on PROD1PC63 with BILLS
30 

•S 436 IS

1 is amended by adding at the end the following new para2 graph: 

3 ‘‘(27) BUNDLED CONTRIBUTION.—The term 

4 ‘bundled contribution’ means a series of contribu5 tions that are, in the aggregate, $10,000 or more 

6 and— 

7 ‘‘(A) are transferred to the candidate or 

8 the authorized committee of the candidate by 

9 one person; or 

10 ‘‘(B) include a written or oral notification 

11 that the contribution was solicited, arranged, or 

12 directed by a person other than the donor.’’. 

13 SEC. 12. OFFSET. 

14 (a) IN GENERAL.—Section 211(c)(1)(A) of the Agri15 cultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is 

16 amended by striking ‘‘and $200,000,000 for each of fiscal 

17 years 2006 and 2007’’ and inserting ‘‘$200,000,000 for 

18 fiscal year 2006, and $100,000,000 for fiscal year 2007’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall take effect on the date of enactment 

21 of this Act. 


rwilkins on PROD1PC63 with BILLS
31 

•S 436 IS

1 SEC. 13. EFFECTIVE DATE. 

2 Except as otherwise provided in this Act, the amend3 ments made by this Act shall apply with respect to elec4 tions occurring after January 1, 2009. 

Æ 


rwilkins on PROD1PC63 with BILLS