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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 436 Introduced in Senate (IS)]

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.

    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 ``Presidential 
Funding Act of 2007''.
    (b) Table of Contents.--The table of contents of 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.
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.

SEC. 2. REVISIONS TO SYSTEM OF PRESIDENTIAL PRIMARY MATCHING PAYMENTS.

    (a) Increase in Matching Payments.--
            (1) In general.--Section 9034(a) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by striking ``an amount equal to the amount'' 
                and inserting ``an amount equal to 400 percent of the 
                amount''; and
                    (B) by striking ``$250'' and inserting ``$200''.
            (2) Additional matching payments for candidates after march 
        31 of the election year.--Section 9034(b) of such Code is 
        amended to read as follows:
    ``(b) Additional Payments for Candidates After March 31 of the 
Election Year.--In addition to any payment under subsection (a), an 
individual who is a candidate after March 31 of the calendar year in 
which the presidential election is held and who is eligible to receive 
payments under section 9033 shall be entitled to payments under section 
9037 in an amount equal to the amount of each contribution received by 
such individual after March 31 of the calendar year in which such 
presidential election is held, disregarding any amount of contributions 
from any person to the extent that the total of the amounts contributed 
by such person after such date exceeds $200.''.
            (3) Conforming amendments.--Section 9034 of such Code, as 
        amended by paragraph (2), is amended--
                    (A) by striking the last sentence of subsection 
                (a); and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Contribution Defined.--For purposes of this section and 
section 9033(b), the term `contribution' means a gift of money made by 
a written instrument which identifies the person making the 
contribution by full name and mailing address, but does not include a 
subscription, loan, advance, or deposit of money, or anything of value 
or anything described in subparagraph (B), (C), or (D) of section 
9032(4).''.
    (b) Eligibility Requirements.--
            (1) Amount of aggregate contributions per state.--Section 
        9033(b)(3) of such Code is amended by striking ``$5,000'' and 
        inserting ``$25,000''.
            (2) Amount of individual contributions.--Section 9033(b)(4) 
        of such Code is amended by striking ``$250'' and inserting 
        ``$200''.
            (3) Participation in system for payments for general 
        election.--Section 9033(b) of such Code is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``, and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) if the candidate is nominated by a political party 
        for election to the office of President, the candidate will 
        apply for and accept payments with respect to the general 
        election for such office in accordance with chapter 95, 
        including the requirement that the candidate and the 
        candidate's authorized committees will not incur qualified 
        campaign expenses in excess of the aggregate payments to which 
        they will be entitled under section 9004.''.
    (c) Period of Availability of Payments.--Section 9032(6) of such 
Code is amended by striking ``the beginning of the calendar year in 
which a general election for the office of President of the United 
States will be held'' and inserting ``the date that is 6 months prior 
to the date of the earliest State primary election''.

SEC. 3. REQUIRING PARTICIPATION IN PRIMARY PAYMENT SYSTEM AS CONDITION 
              OF ELIGIBILITY FOR GENERAL ELECTION PAYMENTS.

    (a) Major Party Candidates.--Section 9003(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3); and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) the candidate received payments under chapter 96 for 
        the campaign for nomination;''.
    (b) Minor Party Candidates.--Section 9003(c) of such Code is 
amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3); and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) the candidate received payments under chapter 96 for 
        the campaign for nomination;''.

SEC. 4. REVISIONS TO EXPENDITURE LIMITS.

    (a) Increase in Expenditure Limits for Participating Candidates; 
Elimination of State-Specific Limits.--
            (1) In general.--Section 315(b)(1) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441a(b)(1)) is amended by 
        striking ``may make expenditures in excess of'' and all that 
        follows and inserting ``may make expenditures--
            ``(A) with respect to a campaign for nomination for 
        election to such office--
                    ``(i) in excess of $100,000,000 before April 1 of 
                the calendar year in which the presidential election is 
                held; and
                    ``(ii) in excess of $150,000,000 before the date 
                described in section 9006(b) of the Internal Revenue 
                Code of 1986; and
            ``(B) with respect to a campaign for election to such 
        office, in excess of $100,000,000.''.
            (2) Clerical correction.--Section 9004(a)(1) of the 
        Internal Revenue Code of 1986 is amended by striking ``section 
        320(b)(1)(B) of the Federal Election Campaign Act of 1971'' and 
        inserting ``section 315(b)(1)(B) of the Federal Election 
        Campaign Act of 1971''.
    (b) Increase in Limit on Coordinated Party Expenditures.--Section 
315(d)(2) of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a(d)(2)) is amended to read as follows:
    ``(2)(A) The national committee of a political party may not make 
any expenditure in connection with the general election campaign of any 
candidate for President of the United States who is affiliated with 
such party which exceeds $25,000,000.
    ``(B) Notwithstanding the limitation under subparagraph (A), during 
the period beginning on April 1 of the year in which a presidential 
election is held and ending on the date described in section 9006(b) of 
the Internal Revenue Code of 1986, the national committee of a 
political party may make additional expenditures in connection with the 
general election campaign of a candidate for President of the United 
States who is affiliated with such party in an amount not to exceed 
$25,000,000.
    ``(C)(i) Notwithstanding subparagraph (B) or the limitation under 
subparagraph (A), if any nonparticipating primary candidate (within the 
meaning of subsection (b)(3)) affiliated with the national committee of 
a political party receives contributions or makes expenditures with 
respect to such candidate's campaign in an aggregate amount greater 
than 120 percent of the expenditure limitation in effect under 
subsection (b)(1)(A)(ii), then, during the period described in clause 
(ii), the national committee of any other political party may make 
expenditures in connection with the general election campaign of a 
candidate for President of the United States who is affiliated with 
such other party without limitation.
    ``(ii) The period described in this clause is the period--
            ``(I) beginning on the later of April 1 of the year in 
        which a presidential election is held or the date on which such 
        nonparticipating primary candidate first receives contributions 
        or makes expenditures in the aggregate amount described in 
        clause (i); and
            ``(II) ending on the earlier of the date such 
        nonparticipating primary candidate ceases to be a candidate for 
        nomination to the office of President of the United States and 
        is not a candidate for such office or the date described in 
        section 9006(b) of the Internal Revenue Code of 1986.
    ``(iii) If the nonparticipating primary candidate described in 
clause (i) ceases to be a candidate for nomination to the office of 
President of the United States and is not a candidate for such office, 
clause (i) shall not apply and the limitations under subparagraphs (A) 
and (B) shall apply. It shall not be considered to be a violation of 
this Act if the application of the preceding sentence results in the 
national committee of a political party violating the limitations under 
subparagraphs (A) and (B) solely by reason of expenditures made by such 
national committee during the period in which clause (i) applied.
    ``(D) For purposes of this paragraph--
            ``(i) any expenditure made by or on behalf of a national 
        committee of a political party and in connection with a 
        presidential election shall be considered to be made in 
        connection with the general election campaign of a candidate 
        for President of the United States who is affiliated with such 
        party; and
            ``(ii) any communication made by or on behalf of such party 
        shall be considered to be made in connection with the general 
        election campaign of a candidate for President of the United 
        States who is affiliated with such party if any portion of the 
        communication is in connection with such election.
    ``(E) Any expenditure under this paragraph shall be in addition to 
any expenditure by a national committee of a political party serving as 
the principal campaign committee of a candidate for the office of 
President of the United States.''.
    (c) Conforming Amendments Relating to Timing of Cost-of-Living 
Adjustment.--
            (1) In general.--Section 315(c)(1) of such Act (2 U.S.C. 
        441a(c)(1)) is amended--
                    (A) in subparagraph (B), by striking ``(b), (d),'' 
                and inserting ``(d)(3)''; and
                    (B) by inserting at the end the following new 
                subparagraph:
    ``(D) In any calendar year after 2008--
            ``(i) a limitation established by subsection (b) or (d)(2) 
        shall be increased by the percent difference determined under 
        subparagraph (A);
            ``(ii) each amount so increased shall remain in effect for 
        the calendar year; and
            ``(iii) if any amount after adjustment under clause (i) is 
        not a multiple of $100, such amount shall be rounded to the 
        nearest multiple of $100.''.
            (2) Base year.--Section 315(c)(2)(B) of such Act (2 U.S.C. 
        441a(c)(2)(B)) is amended--
                    (A) in clause (i)--
                            (i) by striking ``subsections (b) and (d)'' 
                        and inserting ``subsection (d)(3)''; and
                            (ii) by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                    ``(iii) for purposes of subsection (b) and (d)(2), 
                calendar year 2007.''.
    (d) Repeal of Exclusion of Fundraising Costs From Treatment as 
Expenditures.--Section 301(9)(B)(vi) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(9)(B)(vi)) is amended by striking ``in excess 
of an amount equal to 20 percent of the expenditure limitation 
applicable to such candidate under section 315(b)'' and inserting the 
following: ``who is seeking nomination for election or election to the 
office of President or Vice President of the United States''.

SEC. 5. ADDITIONAL PAYMENTS AND INCREASED EXPENDITURE LIMITS FOR 
              CANDIDATES PARTICIPATING IN PUBLIC FINANCING WHO FACE 
              CERTAIN NONPARTICIPATING OPPONENTS.

    (a) Candidates in Primary Elections.--
            (1) Additional payments.--
                    (A) In general.--Section 9034 of the Internal 
                Revenue Code of 1986, as amended by section 2, is 
                amended by redesignating subsection (c) as subsection 
                (d) and by inserting after subsection (b) the following 
                new subsection:
    ``(c) Additional Payments for Candidates Facing Nonparticipating 
Opponents.--
            ``(1) In general.--In addition to any payments provided 
        under subsections (a) and (b), each candidate described in 
        paragraph (2) shall be entitled to--
                    ``(A) a payment under section 9037 in an amount 
                equal to the amount of each contribution received by 
                such candidate on or after the beginning of the 
                calendar year preceding the calendar year of the 
                presidential election with respect to which such 
                candidate is seeking nomination and before the 
                qualifying date, disregarding any amount of 
                contributions from any person to the extent that the 
                total of the amounts contributed by such person exceeds 
                $200, and
                    ``(B) payments under section 9037 in an amount 
                equal to the amount of each contribution received by 
                such candidate on or after the qualifying date, 
                disregarding any amount of contributions from any 
                person to the extent that the total of the amounts 
                contributed by such person exceeds $200.
            ``(2) Candidates to whom this subsection applies.--A 
        candidate is described in this paragraph if such candidate--
                    ``(A) is eligible to receive payments under section 
                9033, and
                    ``(B) is opposed by a nonparticipating primary 
                candidate of the same political party who receives 
                contributions or makes expenditures with respect to the 
                campaign--
                            ``(i) before April 1 of the year in which 
                        the presidential election is held, in an 
                        aggregate amount greater than 120 percent of 
                        the expenditure limitation under section 
                        315(b)(1)(A)(i) of the Federal Election 
                        Campaign Act of 1971, or
                            ``(ii) before the date described in section 
                        9006(b), in an aggregate amount greater than 
                        120 percent of the expenditure limitation under 
                        section 315(b)(1)(A)(ii) of such Act.
            ``(3) Nonparticipating primary candidate.--In this 
        subsection, the term `nonparticipating primary candidate' means 
        a candidate for nomination for election for the office of 
        President who is not eligible under section 9033 to receive 
        payments from the Secretary under this chapter.
            ``(4) Qualifying date.--In this subsection, the term 
        `qualifying date' means the first date on which the 
        contributions received or expenditures made by the 
        nonparticipating primary candidate described in paragraph 
        (2)(B) exceed the amount described under either clause (i) or 
        clause (ii) of such paragraph.''.
                    (B) Conforming amendment.--Section 9034(b) of such 
                Code, as amended by section 2, is amended by striking 
                ``subsection (a)'' and inserting ``subsections (a) and 
                (c)''.
            (2) Increase in expenditure limit.--Section 315(b) of the 
        Federal Election Campaign Act of 1971 (2 U.S.C. 441a(b)) is 
        amended by adding at the end the following new paragraph:
    ``(3)(A) In the case of an eligible candidate, each of the 
limitations under clause (i) and (ii) of paragraph (1)(A) shall be 
increased--
            ``(i) by $50,000,000, if any nonparticipating primary 
        candidate of the same political party as such candidate 
        receives contributions or makes expenditures with respect to 
        the campaign in an aggregate amount greater than 120 percent of 
        the expenditure limitation applicable to eligible candidates 
        under clause (i) or (ii) of paragraph (1)(A) (before the 
        application of this clause), and
            ``(ii) by $100,000,000, if such nonparticipating primary 
        candidate receives contributions or makes expenditures with 
        respect to the campaign in an aggregate amount greater than 120 
        percent of the expenditure limitation applicable to eligible 
        candidates under clause (i) or (ii) of paragraph (1)(A) after 
        the application of clause (i).
    ``(B) Each dollar amount under subparagraph (A) shall be considered 
a limitation under this subsection for purposes of subsection (c).
    ``(C) In this paragraph, the term `eligible candidate' means, with 
respect to any period, a candidate--
            ``(i) who is eligible to receive payments under section 
        9033 of the Internal Revenue Code of 1986;
            ``(ii) who is opposed by a nonparticipating primary 
        candidate; and
            ``(iii) with respect to whom the Commission has given 
        notice under section 304(i)(1)(B)(i).
    ``(D) In this paragraph, the term `nonparticipating primary 
candidate' means, with respect to any eligible candidate, a candidate 
for nomination for election for the office of President who is not 
eligible under section 9033 of the Internal Revenue Code of 1986 to 
receive payments from the Secretary of the Treasury under chapter 96 of 
such Code.''.
    (b) Candidates in General Elections.--
            (1) Additional payments.--
                    (A) In general.--Section 9004(a)(1) of the Internal 
                Revenue Code of 1986 is amended--
                            (i) by striking ``(1) The eligible 
                        candidates'' and inserting ``(1)(A) Except as 
                        provided in subparagraph (B), the eligible 
                        candidates''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
            ``(B) In addition to the payments described in subparagraph 
        (A), each eligible candidate of a major party in a presidential 
        election with an opponent in the election who is not eligible 
        to receive payments under section 9006 and who receives 
        contributions or makes expenditures with respect to the primary 
        and general elections in an aggregate amount greater than 120 
        percent of the combined expenditure limitations applicable to 
        eligible candidates under section 315(b)(1) of the Federal 
        Election Campaign Act of 1971 shall be entitled to an equal 
        payment under section 9006 in an amount equal to 100 percent of 
        the expenditure limitation applicable under such section with 
        respect to a campaign for election to the office of 
        President.''.
                    (B) Special rule for minor party candidates.--
                Section 9004(a)(2)(A) of such Code is amended--
                            (i) by striking ``(A) The eligible 
                        candidates'' and inserting ``(A)(i) Except as 
                        provided in clause (ii), the eligible 
                        candidates''; and
                            (ii) by adding at the end the following new 
                        clause:
            ``(ii) In addition to the payments described in clause (i), 
        each eligible candidate of a minor party in a presidential 
        election with an opponent in the election who is not eligible 
        to receive payments under section 9006 and who receives 
        contributions or makes expenditures with respect to the primary 
        and general elections in an aggregate amount greater than 120 
        percent of the combined expenditure limitations applicable to 
        eligible candidates under section 315(b)(1) of the Federal 
        Election Campaign Act of 1971 shall be entitled to an equal 
        payment under section 9006 in an amount equal to 100 percent of 
        the payment to which such candidate is entitled under clause 
        (i).''.
            (2) Exclusion of additional payment from determination of 
        expenditure limits.--Section 315(b) of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 441a(b)), as amended by 
        subsection (a), is amended by adding at the end the following 
        new paragraph:
    ``(4) In the case of a candidate who is eligible to receive 
payments under section 9004(a)(1)(B) or 9004(a)(2)(A)(ii) of the 
Internal Revenue Code of 1986, the limitation under paragraph (1)(B) 
shall be increased by the amount of such payments received by the 
candidate.''.
    (c) Process for Determination of Eligibility for Additional Payment 
and Increased Expenditure Limits.--Section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434) is amended by adding at the end the 
following new subsection:
    ``(i) Reporting and Certification for Additional Public Financing 
Payments for Candidates.--
            ``(1) Primary candidates.--
                    ``(A) Notification of expenditures by ineligible 
                candidates.--
                            ``(i) Expenditures in excess of 120 percent 
                        of limit.--If a candidate for a nomination for 
                        election for the office of President who is not 
                        eligible to receive payments under section 9033 
                        of the Internal Revenue Code of 1986 receives 
                        contributions or makes expenditures with 
                        respect to the primary election in an aggregate 
                        amount greater than 120 percent of the 
                        expenditure limitation applicable to eligible 
                        candidates under clause (i) or (ii) of section 
                        315(b)(1)(A), the candidate shall notify the 
                        Commission in writing that the candidate has 
                        received aggregate contributions or made 
                        aggregate expenditures in such an amount not 
                        later than 24 hours after first receiving 
                        aggregate contributions or making aggregate 
                        expenditures in such an amount.
                            ``(ii) Expenditures in excess of 120 
                        percent of increased limit.--If a candidate for 
                        a nomination for election for the office of 
                        President who is not eligible to receive 
                        payments under section 9033 of the Internal 
                        Revenue Code of 1986 receives contributions or 
                        makes expenditures with respect to the primary 
                        election in an aggregate amount greater than 
                        120 percent of the expenditure limitation 
                        applicable to eligible candidates under section 
                        315(b) after the application of paragraph 
                        (3)(A)(i) thereof, the candidate shall notify 
                        the Commission in writing that the candidate 
                        has received aggregate contributions or made 
                        aggregate expenditures in such an amount not 
                        later than 24 hours after first receiving 
                        aggregate contributions or making aggregate 
                        expenditures in such an amount.
                    ``(B) Certification.--Not later than 24 hours after 
                receiving any written notice under subparagraph (A) 
                from a candidate, the Commission shall--
                            ``(i) certify to the Secretary of the 
                        Treasury that opponents of the candidate are 
                        eligible for additional payments under section 
                        9034(c) of the Internal Revenue Code of 1986;
                            ``(ii) notify each opponent of the 
                        candidate who is eligible to receive payments 
                        under section 9033 of the Internal Revenue Code 
                        of 1986 of the amount of the increased 
                        limitation on expenditures which applies 
                        pursuant to section 315(b)(3); and
                            ``(iii) in the case of a notice under 
                        subparagraph (A)(i), notify the national 
                        committee of each political party (other than 
                        the political party with which the candidate is 
                        affiliated) of the inapplicability of 
                        expenditure limits under section 315(d)(2) 
                        pursuant to subparagraph (C) thereof.
            ``(2) General election candidates.--
                    ``(A) Notification of expenditures by ineligible 
                candidates.--If a candidate in a presidential election 
                who is not eligible to receive payments under section 
                9006 of the Internal Revenue Code of 1986 receives 
                contributions or makes expenditures with respect to the 
                primary and general elections in an aggregate amount 
                greater than 120 percent of the combined expenditure 
                limitations applicable to eligible candidates under 
                section 315(b)(1), the candidate shall notify the 
                Commission in writing that the candidate has received 
                aggregate contributions or made aggregate expenditures 
                in such an amount not later than 24 hours after first 
                receiving aggregate contributions or making aggregate 
                expenditures in such an amount.
                    ``(B) Certification.--Not later than 24 hours after 
                receiving a written notice under subparagraph (A), the 
                Commission shall certify to the Secretary of the 
                Treasury for payment to any eligible candidate who is 
                entitled to an additional payment under paragraph 
                (1)(B) or (2)(A)(ii) of section 9004(a) of the Internal 
                Revenue Code of 1986 that the candidate is entitled to 
                payment in full of the additional payment under such 
                section.''.

SEC. 6. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE OF PAYMENTS FROM 
              PRESIDENTIAL ELECTION CAMPAIGN FUND TO ELIGIBLE 
              CANDIDATES.

    (a) In General.--The first sentence of section 9006(b) of the 
Internal Revenue Code of 1986 is amended to read as follows: ``If the 
Secretary of the Treasury receives a certification from the Commission 
under section 9005 for payment to the eligible candidates of a 
political party, the Secretary shall, on the last Friday occurring 
before the first Monday in September, pay to such candidates of the 
fund the amount certified by the Commission.''.
    (b) Conforming Amendment.--The first sentence of section 9006(c) of 
such Code is amended by striking ``the time of a certification by the 
Comptroller General under section 9005 for payment'' and inserting 
``the time of making a payment under subsection (b)''.

SEC. 7. REVISIONS TO DESIGNATION OF INCOME TAX PAYMENTS BY INDIVIDUAL 
              TAXPAYERS.

    (a) Increase in Amount Designated.--Section 6096(a) of the Internal 
Revenue Code of 1986 is amended--
            (1) in the first sentence, by striking ``$3'' each place it 
        appears and inserting ``$10''; and
            (2) in the second sentence--
                    (A) by striking ``$6'' and inserting ``$20''; and
                    (B) by striking ``$3'' and inserting ``$10''.
    (b) Indexing.--Section 6096 of such Code is amended by adding at 
the end the following new subsection:
    ``(d) Indexing of Amount Designated.--
            ``(1) In general.--With respect to each taxable year after 
        2008, each amount referred to in subsection (a) shall be 
        increased by the percent difference described in paragraph (2), 
        except that if any such amount after such an increase is not a 
        multiple of $1, such amount shall be rounded to the nearest 
        multiple of $1.
            ``(2) Percent difference described.--The percent difference 
        described in this paragraph with respect to a taxable year is 
        the percent difference determined under section 315(c)(1)(A) of 
        the Federal Election Campaign Act of 1971 with respect to the 
        calendar year during which the taxable year begins, except that 
        the base year involved shall be 2008.''.
    (c) Ensuring Tax Preparation Software Does Not Provide Automatic 
Response to Designation Question.--Section 6096 of such Code, as 
amended by subsection (b), is amended by adding at the end the 
following new subsection:
    ``(e) Ensuring Tax Preparation Software Does Not Provide Automatic 
Response to Designation Question.--The Secretary shall promulgate 
regulations to ensure that electronic software used in the preparation 
or filing of individual income tax returns does not automatically 
accept or decline a designation of a payment under this section.''.
    (d) Public Information Program on Designation.--Section 6096 of 
such Code, as amended by subsections (b) and (c), is amended by adding 
at the end the following new subsection:
    ``(f) Public Information Program.--
            ``(1) In general.--The Federal Election Commission shall 
        conduct a program to inform and educate the public regarding 
        the purposes of the Presidential Election Campaign Fund, the 
        procedures for the designation of payments under this section, 
        and the effect of such a designation on the income tax 
        liability of taxpayers.
            ``(2) Use of funds for program.--Amounts in the 
        Presidential Election Campaign Fund shall be made available to 
        the Federal Election Commission to carry out the program under 
        this subsection, except that the amount made available for this 
        purpose may not exceed $10,000,000 with respect to any 
        Presidential election cycle. In this paragraph, a `Presidential 
        election cycle' is the 4-year period beginning with January of 
        the year following a Presidential election.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 8. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN FUND.

    (a) Determination of Amounts in Fund.--Section 9006(c) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new sentence: ``In making a determination of whether there 
are insufficient moneys in the fund for purposes of the previous 
sentence, the Secretary shall take into account in determining the 
balance of the fund for a Presidential election year the Secretary's 
best estimate of the amount of moneys which will be deposited into the 
fund during the year, except that the amount of the estimate may not 
exceed the average of the annual amounts deposited in the fund during 
the previous 3 years.''.
    (b) Special Rule for First Campaign Cycle Under This Act.--
            (1) In general.--Section 9006 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(d) Special Authority to Borrow.--
            ``(1) In general.--Notwithstanding subsection (c), there 
        are authorized to be appropriated to the fund, as repayable 
        advances, such sums as are necessary to carry out the purposes 
        of the fund during the period ending on the first presidential 
        election occurring after the date of the enactment of this 
        subsection.
            ``(2) Repayment of advances.--
                    ``(A) In general.--Advances made to the fund shall 
                be repaid, and interest on such advances shall be paid, 
                to the general fund of the Treasury when the Secretary 
                determines that moneys are available for such purposes 
                in the fund.
                    ``(B) Rate of interest.--Interest on advances made 
                to the fund shall be at a rate determined by the 
                Secretary of the Treasury (as of the close of the 
                calendar month preceding the month in which the advance 
                is made) to be equal to the current average market 
                yield on outstanding marketable obligations of the 
                United States with remaining periods to maturity 
                comparable to the anticipated period during which the 
                advance will be outstanding and shall be compounded 
                annually.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.

SEC. 9. REPEAL OF PRIORITY IN USE OF FUNDS FOR POLITICAL CONVENTIONS.

    (a) In General.--Section 9008(a) of the Internal Revenue Code of 
1986 is amended by striking the period at the end of the second 
sentence and all that follows and inserting the following: ``, except 
that the amount deposited may not exceed the amount available after the 
Secretary determines that amounts for payments under section 9006 and 
section 9037 are available for such payments.''.
    (b) Conforming Amendment.--The second sentence of section 9037(a) 
of such Code is amended by striking ``section 9006(c) and for payments 
under section 9008(b)(3)'' and inserting ``section 9006''.

SEC. 10. REGULATION OF CONVENTION FINANCING.

    Section 323 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441i) is amended by adding at the end the following new subsection:
    ``(g) National Conventions.--Any person described in subsection (e) 
shall not solicit, receive, direct, transfer, or spend any funds in 
connection with a presidential nominating convention of any political 
party, including funds for a host committee, civic committee, 
municipality, or any other person or entity spending funds in 
connection with such a convention, unless such funds--
            ``(1) are not in excess of the amounts permitted with 
        respect to contributions to the political committee established 
        and maintained by a national political party committee under 
        section 315; and
            ``(2) are not from sources prohibited by this Act from 
        making contributions in connection with an election for Federal 
        office.''.

SEC. 11. DISCLOSURE OF BUNDLED CONTRIBUTIONS.

    (a) In General.--Section 304(b) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 434(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) in the case of an authorized committee of a candidate 
        for President, the name, address, occupation, and employer of 
        each person who makes a bundled contribution, and the aggregate 
        amount of the bundled contributions made by such person during 
        the reporting period.''.
    (b) Bundled Contribution.--Section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431) is amended by adding at the end the 
following new paragraph:
            ``(27) Bundled contribution.--The term `bundled 
        contribution' means a series of contributions that are, in the 
        aggregate, $10,000 or more and--
                    ``(A) are transferred to the candidate or the 
                authorized committee of the candidate by one person; or
                    ``(B) include a written or oral notification that 
                the contribution was solicited, arranged, or directed 
                by a person other than the donor.''.

SEC. 12. OFFSET.

    (a) In General.--Section 211(c)(1)(A) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``and 
$200,000,000 for each of fiscal years 2006 and 2007'' and inserting 
``$200,000,000 for fiscal year 2006, and $100,000,000 for fiscal year 
2007''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 13. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by 
this Act shall apply with respect to elections occurring after January 
1, 2009.
                                 <all>
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