II 

109TH CONGRESS 

2D SESSION S. 3740 

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 

JULY 26, 2006 

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 2006’’. 

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. 


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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 


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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.— 


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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.’’. 


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1 (c) PERIOD OF AVAILABILITY OF PAYMENTS.— 

2 (1) IN GENERAL.—Section 9032(6) of such 

3 Code is amended by striking ‘‘the beginning of the 

4 calendar year’’ and inserting ‘‘July 1 of the calendar 

5 year preceding the calendar year’’. 

6 (2) CONFORMING AMENDMENT.—Section 

7 9034(a) of such Code is amended by striking ‘‘the 

8 beginning of the calendar year’’ and inserting ‘‘July 

9 1 of the calendar year preceding the calendar year’’. 

10 SEC. 3. REQUIRING PARTICIPATION IN PRIMARY PAYMENT 

11 SYSTEM AS CONDITION OF ELIGIBILITY FOR 

12 GENERAL ELECTION PAYMENTS. 

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

14 the Internal Revenue Code of 1986 is amended— 

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

16 paragraphs (2) and (3); and 

17 (2) by inserting before paragraph (2) (as so re18 designated) the following new paragraph: 

19 ‘‘(1) the candidate received payments under 

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

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

22 such Code is amended— 

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

24 paragraphs (2) and (3); and 


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1 (2) by inserting before paragraph (2) (as so re2 designated) the following new paragraph: 

3 ‘‘(1) the candidate received payments under 

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

5 SEC. 4. REVISIONS TO EXPENDITURE LIMITS. 

6 (a) INCREASE IN EXPENDITURE LIMITS FOR PAR7 TICIPATING CANDIDATES; ELIMINATION OF STATE-SPE8 CIFIC LIMITS.— 

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

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

11 441a(b)(1)) is amended by striking ‘‘may make ex12 penditures in excess of’’ and all that follows and in13 serting ‘‘may make expenditures— 

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

15 for election to such office— 

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

17 1 of the calendar year in which the presidential 

18 election is held; and 

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

20 date described in section 9006(b) of the Inter21 nal Revenue Code of 1986; and 

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

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

24 (2) CLERICAL CORRECTION.—Section 

25 9004(a)(1) of the Internal Revenue Code of 1986 is 


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

2 Federal Election Campaign Act of 1971’’ and insert3 ing ‘‘section 315(b)(1)(B) of the Federal Election 

4 Campaign Act of 1971’’. 

5 (b) INCREASE IN LIMIT ON COORDINATED PARTY

6 EXPENDITURES.—Section 315(d)(2) of the Federal Elec7 tion Campaign Act of 1971 (2 U.S.C. 441a(d)(2)) is 

8 amended to read as follows: 

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

10 may not make any expenditure in connection with the gen11 eral election campaign of any candidate for President of 

12 the United States who is affiliated with such party which 

13 exceeds $25,000,000. 

14 ‘‘(B) Notwithstanding the limitation under subpara15 graph (A), during the period beginning on April 1 of the 

16 year in which a presidential election is held and ending 

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

18 Revenue Code of 1986, the national committee of a polit19 ical party may make additional expenditures in connection 

20 with the general election campaign of a candidate for 

21 President of the United States who is affiliated with such 

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

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

24 limitation under subparagraph (A), if any nonpartici25 pating primary candidate (within the meaning of subVerDate Aug 31 2005 04:52 Jul 30, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3740.IS S3740

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1 section (b)(3)) affiliated with the national committee of 

2 a political party receives contributions or makes expendi3 tures with respect to such candidate’s campaign in an ag4 gregate amount greater than 120 percent of the expendi5 ture limitation in effect under subsection (b)(1)(A)(ii), 

6 then, during the period described in clause (ii), the na7 tional committee of any other political party may make 

8 expenditures in connection with the general election cam9 paign of a candidate for President of the United States 

10 who is affiliated with such other party without limitation. 

11 ‘‘(ii) The period described in this clause is the pe12 riod— 

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

14 year in which a presidential election is held or the 

15 date on which such nonparticipating primary can16 didate first receives contributions or makes expendi17 tures in the aggregate amount described in clause 

18 (i); and 

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

20 nonparticipating primary candidate ceases to be a 

21 candidate for nomination to the office of President 

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

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

24 Internal Revenue Code of 1986. 


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1 ‘‘(iii) If the nonparticipating primary candidate de2 scribed in clause (i) ceases to be a candidate for nomina3 tion to the office of President of the United States and 

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

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

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

7 Act if the application of the preceding sentence results in 

8 the national committee of a political party violating the 

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

10 reason of expenditures made by such national committee 

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

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

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

14 national committee of a political party and in con15 nection with a presidential election shall be consid16 ered to be made in connection with the general elec17 tion campaign of a candidate for President of the 

18 United States who is affiliated with such party; and 

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

20 of such party shall be considered to be made in con21 nection with the general election campaign of a can22 didate for President of the United States who is af23 filiated with such party if any portion of the commu24 nication is in connection with such election. 


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

2 in addition to any expenditure by a national committee 

3 of a political party serving as the principal campaign com4 mittee of a candidate for the office of President of the 

5 United States.’’. 

6 (c) CONFORMING AMENDMENTS RELATING TO TIM7 ING OF COST-OF-LIVING ADJUSTMENT.— 

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

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

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

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

12 (B) by inserting at the end the following 

13 new subparagraph: 

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

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

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

17 determined under subparagraph (A); 

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

19 effect for the calendar year; and 

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

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

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

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

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

25 (A) in clause (i)— 


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

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

3 and 

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

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

6 the end and inserting ‘‘; and’’; and 

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

8 clause: 

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

10 (d)(2), calendar year 2007.’’. 

11 (d) REPEAL OF EXCLUSION OF FUNDRAISING COSTS

12 FROM TREATMENT AS EXPENDITURES.—Section 

13 301(9)(B)(vi) of the Federal Election Campaign Act of 

14 1971 (2 U.S.C. 431(9)(B)(vi)) is amended by striking ‘‘in 

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

16 limitation applicable to such candidate under section 

17 315(b)’’ and inserting the following: ‘‘who is seeking nomi18 nation for election or election to the office of President 

19 or Vice President of the United States’’. 

20 SEC. 5. ADDITIONAL PAYMENTS AND INCREASED EXPENDI21 TURE LIMITS FOR CANDIDATES PARTICI22 PATING IN PUBLIC FINANCING WHO FACE 

23 CERTAIN NONPARTICIPATING OPPONENTS. 

24 (a) CANDIDATES IN PRIMARY ELECTIONS.— 

25 (1) ADDITIONAL PAYMENTS.— 


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1 (A) IN GENERAL.—Section 9034 of the In2 ternal Revenue Code of 1986, as amended by 

3 section 2, is amended by redesignating sub4 section (c) as subsection (d) and by inserting 

5 after subsection (b) the following new sub6 section: 

7 ‘‘(c) ADDITIONAL PAYMENTS FOR CANDIDATES FAC8 ING NONPARTICIPATING OPPONENTS.— 

9 ‘‘(1) IN GENERAL.—In addition to any pay10 ments provided under subsections (a) and (b), each 

11 candidate described in paragraph (2) shall be enti12 tled to— 

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

14 amount equal to the amount of each contribu15 tion received by such candidate on or after July 

16 1 of the calendar year preceding the calendar 

17 year of the presidential election with respect to 

18 which such candidate is seeking nomination and 

19 before the qualifying date, disregarding any 

20 amount of contributions from any person to the 

21 extent that the total of the amounts contributed 

22 by such person exceeds $200, and 

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

24 amount equal to the amount of each contribu25 tion received by such candidate on or after the 


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1 qualifying date, disregarding any amount of 

2 contributions from any person to the extent 

3 that the total of the amounts contributed by 

4 such person exceeds $200. 

5 ‘‘(2) CANDIDATES TO WHOM THIS SUBSECTION

6 APPLIES.—A candidate is described in this para7 graph if such candidate— 

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

9 section 9033, and 

10 ‘‘(B) is opposed by a nonparticipating pri11 mary candidate of the same political party who 

12 receives contributions or makes expenditures 

13 with respect to the campaign— 

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

15 which the presidential election is held, in 

16 an aggregate amount greater than 120 

17 percent of the expenditure limitation under 

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

19 Election Campaign Act of 1971, or 

20 ‘‘(ii) before the date described in sec21 tion 9006(b), in an aggregate amount 

22 greater than 120 percent of the expendi23 ture limitation under section 

24 315(b)(1)(A)(ii) of such Act. 


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1 ‘‘(3) NONPARTICIPATING PRIMARY CAN2 DIDATE.—In this subsection, the term ‘nonpartici3 pating primary candidate’ means a candidate for 

4 nomination for election for the office of President 

5 who is not eligible under section 9033 to receive pay6 ments from the Secretary under this chapter. 

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

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

9 which the contributions received or expenditures 

10 made by the nonparticipating primary candidate de11 scribed in paragraph (2)(B) exceed the amount de12 scribed under either clause (i) or clause (ii) of such 

13 paragraph.’’. 

14 (B) CONFORMING AMENDMENT.—Section 

15 9034(b)(2) of such Code, as amended by sec16 tion 2, is amended by striking ‘‘subsection (a)’’ 

17 and inserting ‘‘subsections (a) and (c)’’. 

18 (2) INCREASE IN EXPENDITURE LIMIT.—Sec19 tion 315(b) of the Federal Election Campaign Act of 

20 1971 (2 U.S.C. 441a(b)) is amended by adding at 

21 the end the following new paragraph: 

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

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

24 (1)(A) shall be increased— 


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

2 primary candidate of the same political party as 

3 such candidate receives contributions or makes ex4 penditures with respect to the campaign in an aggre5 gate amount greater than 120 percent of the ex6 penditure limitation applicable to eligible candidates 

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

8 the application of this clause), and 

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

10 primary candidate receives contributions or makes 

11 expenditures with respect to the campaign in an ag12 gregate amount greater than 120 percent of the ex13 penditure limitation applicable to eligible candidates 

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

15 application of clause (i). 

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

17 shall be considered a limitation under this subsection for 

18 purposes of subsection (c). 

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

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

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

22 section 9033 of the Internal Revenue Code of 1986; 

23 ‘‘(ii) who is opposed by a nonparticipating pri24 mary candidate; and 


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

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

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

4 primary candidate’ means, with respect to any eligible can5 didate, a candidate for nomination for election for the of6 fice of President who is not eligible under section 9033 

7 of the Internal Revenue Code of 1986 to receive payments 

8 from the Secretary of the Treasury under chapter 96 of 

9 such Code.’’. 

10 (b) CANDIDATES IN GENERAL ELECTIONS.— 

11 (1) ADDITIONAL PAYMENTS.— 

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

13 the Internal Revenue Code of 1986 is amend14 ed— 

15 (i) by striking ‘‘(1) The eligible can16 didates’’ and inserting ‘‘(1)(A) Except as 

17 provided in subparagraph (B), the eligible 

18 candidates’’; and 

19 (ii) by adding at the end the following 

20 new subparagraph: 

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

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

23 party in a presidential election with an opponent in 

24 the election who is not eligible to receive payments 

25 under section 9006 and who receives contributions 


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1 or makes expenditures with respect to the primary 

2 and general elections in an aggregate amount great3 er than 120 percent of the combined expenditure 

4 limitations applicable to eligible candidates under 

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

6 Act of 1971 shall be entitled to an equal payment 

7 under section 9006 in an amount equal to 100 per8 cent of the expenditure limitation applicable under 

9 such section with respect to a campaign for election 

10 to the office of President.’’. 

11 (B) SPECIAL RULE FOR MINOR PARTY

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

13 Code is amended— 

14 (i) by striking ‘‘(A) The eligible can15 didates’’ and inserting ‘‘(A)(i) Except as 

16 provided in clause (ii), the eligible can17 didates’’; and 

18 (ii) by adding at the end the following 

19 new clause: 

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

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

22 in a presidential election with an opponent in the 

23 election who is not eligible to receive payments 

24 under section 9006 and who receives contributions 

25 or makes expenditures with respect to the primary 


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1 and general elections in an aggregate amount great2 er than 120 percent of the combined expenditure 

3 limitations applicable to eligible candidates under 

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

5 Act of 1971 shall be entitled to an equal payment 

6 under section 9006 in an amount equal to 100 per7 cent of the payment to which such candidate is enti8 tled under clause (i).’’. 

9 (2) EXCLUSION OF ADDITIONAL PAYMENT

10 FROM DETERMINATION OF EXPENDITURE LIMITS.— 

11 Section 315(b) of the Federal Election Campaign 

12 Act of 1971 (2 U.S.C. 441a(b)), as amended by sub13 section (a), is amended by adding at the end the fol14 lowing new paragraph: 

15 ‘‘(4) In the case of a candidate who is eligible to re16 ceive payments under section 9004(a)(1)(B) or 

17 9004(a)(2)(A)(ii) of the Internal Revenue Code of 1986, 

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

19 by the amount of such payments received by the can20 didate.’’. 

21 (c) PROCESS FOR DETERMINATION OF ELIGIBILITY

22 FOR ADDITIONAL PAYMENT AND INCREASED EXPENDI23 TURE LIMITS.—Section 304 of the Federal Election Cam24 paign Act of 1971 (2 U.S.C. 434) is amended by adding 

25 at the end the following new subsection: 


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1 ‘‘(i) REPORTING AND CERTIFICATION FOR ADDI2 TIONAL PUBLIC FINANCING PAYMENTS FOR CAN3 DIDATES.— 

4 ‘‘(1) PRIMARY CANDIDATES.— 

5 ‘‘(A) NOTIFICATION OF EXPENDITURES BY

6 INELIGIBLE CANDIDATES.— 

7 ‘‘(i) EXPENDITURES IN EXCESS OF

8 120 PERCENT OF LIMIT.—If a candidate 

9 for a nomination for election for the office 

10 of President who is not eligible to receive 

11 payments under section 9033 of the Inter12 nal Revenue Code of 1986 receives con13 tributions or makes expenditures with re14 spect to the primary election in an aggre15 gate amount greater than 120 percent of 

16 the expenditure limitation applicable to eli17 gible candidates under clause (i) or (ii) of 

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

19 notify the Commission in writing that the 

20 candidate has received aggregate contribu21 tions or made aggregate expenditures in 

22 such an amount not later than 24 hours 

23 after first receiving aggregate contribu24 tions or making aggregate expenditures in 

25 such an amount. 


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1 ‘‘(ii) EXPENDITURES IN EXCESS OF

2 120 PERCENT OF INCREASED LIMIT.—If a 

3 candidate for a nomination for election for 

4 the office of President who is not eligible 

5 to receive payments under section 9033 of 

6 the Internal Revenue Code of 1986 re7 ceives contributions or makes expenditures 

8 with respect to the primary election in an 

9 aggregate amount greater than 120 per10 cent of the expenditure limitation applica11 ble to eligible candidates under section 

12 315(b) after the application of paragraph 

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

14 the Commission in writing that the can15 didate has received aggregate contributions 

16 or made aggregate expenditures in such an 

17 amount not later than 24 hours after first 

18 receiving aggregate contributions or mak19 ing aggregate expenditures in such an 

20 amount. 

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

22 hours after receiving any written notice under 

23 subparagraph (A) from a candidate, the Com24 mission shall— 


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

2 Treasury that opponents of the candidate 

3 are eligible for additional payments under 

4 section 9034(c) of the Internal Revenue 

5 Code of 1986; 

6 ‘‘(ii) notify each opponent of the can7 didate who is eligible to receive payments 

8 under section 9033 of the Internal Rev9 enue Code of 1986 of the amount of the 

10 increased limitation on expenditures which 

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

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

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

14 committee of each political party (other 

15 than the political party with which the can16 didate is affiliated) of the inapplicability of 

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

18 pursuant to subparagraph (C) thereof. 

19 ‘‘(2) GENERAL ELECTION CANDIDATES.— 

20 ‘‘(A) NOTIFICATION OF EXPENDITURES BY

21 INELIGIBLE CANDIDATES.—If a candidate in a 

22 presidential election who is not eligible to re23 ceive payments under section 9006 of the Inter24 nal Revenue Code of 1986 receives contribu25 tions or makes expenditures with respect to the 


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1 primary and general elections in an aggregate 

2 amount greater than 120 percent of the com3 bined expenditure limitations applicable to eligi4 ble candidates under section 315(b)(1), the can5 didate shall notify the Commission in writing 

6 that the candidate has received aggregate con7 tributions or made aggregate expenditures in 

8 such an amount not later than 24 hours after 

9 first receiving aggregate contributions or mak10 ing aggregate expenditures in such an amount. 

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

12 hours after receiving a written notice under 

13 subparagraph (A), the Commission shall certify 

14 to the Secretary of the Treasury for payment to 

15 any eligible candidate who is entitled to an ad16 ditional payment under paragraph (1)(B) or 

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

18 Revenue Code of 1986 that the candidate is en19 titled to payment in full of the additional pay20 ment under such section.’’. 


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1 SEC. 6. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE 

2 OF PAYMENTS FROM PRESIDENTIAL ELEC3 TION CAMPAIGN FUND TO ELIGIBLE CAN4 DIDATES. 

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

6 9006(b) of the Internal Revenue Code of 1986 is amended 

7 to read as follows: ‘‘If the Secretary of the Treasury re8 ceives a certification from the Commission under section 

9 9005 for payment to the eligible candidates of a political 

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

11 before the first Monday in September, pay to such can12 didates of the fund the amount certified by the Commis13 sion.’’. 

14 (b) CONFORMING AMENDMENT.—The first sentence 

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

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

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

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

19 SEC. 7. REVISIONS TO DESIGNATION OF INCOME TAX PAY20 MENTS BY INDIVIDUAL TAXPAYERS. 

21 (a) INCREASE IN AMOUNT DESIGNATED.—Section 

22 6096(a) of the Internal Revenue Code of 1986 is amend23 ed— 

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

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

26 (2) in the second sentence— 


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

2 and 

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

4 (b) INDEXING.—Section 6096 of such Code is amend5 ed by adding at the end the following new subsection: 

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

7 ‘‘(1) IN GENERAL.—With respect to each tax8 able year after 2006, each amount referred to in 

9 subsection (a) shall be increased by the percent dif10 ference described in paragraph (2), except that if 

11 any such amount after such an increase is not a 

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

13 nearest multiple of $1. 

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

15 percent difference described in this paragraph with 

16 respect to a taxable year is the percent difference 

17 determined under section 315(c)(1)(A) of the Fed18 eral Election Campaign Act of 1971 with respect to 

19 the calendar year during which the taxable year be20 gins, except that the base year involved shall be 

21 2006.’’. 

22 (c) ENSURING TAX PREPARATION SOFTWARE DOES

23 NOT PROVIDE AUTOMATIC RESPONSE TO DESIGNATION

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


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1 subsection (b), is amended by adding at the end the fol2 lowing new subsection: 

3 ‘‘(e) ENSURING TAX PREPARATION SOFTWARE DOES

4 NOT PROVIDE AUTOMATIC RESPONSE TO DESIGNATION

5 QUESTION.—The Secretary shall promulgate regulations 

6 to ensure that electronic software used in the preparation 

7 or filing of individual income tax returns does not auto8 matically accept or decline a designation of a payment 

9 under this section.’’. 

10 (d) PUBLIC INFORMATION PROGRAM ON DESIGNA11 TION.—Section 6096 of such Code, as amended by sub12 sections (b) and (c), is amended by adding at the end the 

13 following new subsection: 

14 ‘‘(f) PUBLIC INFORMATION PROGRAM.— 

15 ‘‘(1) IN GENERAL.—The Federal Election Com16 mission shall conduct a program to inform and edu17 cate the public regarding the purposes of the Presi18 dential Election Campaign Fund, the procedures for 

19 the designation of payments under this section, and 

20 the effect of such a designation on the income tax 

21 liability of taxpayers. 

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

23 in the Presidential Election Campaign Fund shall be 

24 made available to the Federal Election Commission 

25 to carry out the program under this subsection, exVerDate Aug 31 2005 04:52 Jul 30, 2006 Jkt 049200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S3740.IS S3740

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1 cept that the amount made available for this pur2 pose may not exceed $10,000,000 with respect to 

3 any Presidential election cycle. In this paragraph, a 

4 ‘Presidential election cycle’ is the 4-year period be5 ginning with January of the year following a Presi6 dential election.’’. 

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

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

9 of this Act. 

10 SEC. 8. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN 

11 FUND. 

12 (a) DETERMINATION OF AMOUNTS IN FUND.—Sec13 tion 9006(c) of the Internal Revenue Code of 1986 is 

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

15 ‘‘In making a determination of whether there are insuffi16 cient moneys in the fund for purposes of the previous sen17 tence, the Secretary shall take into account in determining 

18 the balance of the fund for a Presidential election year 

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

20 which will be deposited into the fund during the year, ex21 cept that the amount of the estimate may not exceed the 

22 average of the annual amounts deposited in the fund dur23 ing the previous 3 years.’’. 

24 (b) SPECIAL RULE FOR FIRST CAMPAIGN CYCLE

25 UNDER THIS ACT.— 


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

2 Revenue Code of 1986 is amended by adding at the 

3 end the following new subsection: 

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

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

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

7 fund, as repayable advances, such sums as are nec8 essary to carry out the purposes of the fund during 

9 the period ending on the first presidential election 

10 occurring after the date of the enactment of this 

11 subsection. 

12 ‘‘(2) REPAYMENT OF ADVANCES.— 

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

14 fund shall be repaid, and interest on such ad15 vances shall be paid, to the general fund of the 

16 Treasury when the Secretary determines that 

17 moneys are available for such purposes in the 

18 fund. 

19 ‘‘(B) RATE OF INTEREST.—Interest on ad20 vances made to the fund shall be at a rate de21 termined by the Secretary of the Treasury (as 

22 of the close of the calendar month preceding the 

23 month in which the advance is made) to be 

24 equal to the current average market yield on 

25 outstanding marketable obligations of the 


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1 United States with remaining periods to matu2 rity comparable to the anticipated period during 

3 which the advance will be outstanding and shall 

4 be compounded annually.’’. 

5 (2) EFFECTIVE DATE.—The amendment made 

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

7 enactment of this Act. 

8 SEC. 9. REPEAL OF PRIORITY IN USE OF FUNDS FOR POLIT9 ICAL CONVENTIONS. 

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

11 Revenue Code of 1986 is amended by striking the period 

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

13 inserting the following: ‘‘, except that the amount depos14 ited may not exceed the amount available after the Sec15 retary determines that amounts for payments under sec16 tion 9006 and section 9037 are available for such pay17 ments.’’. 

18 (b) CONFORMING AMENDMENT.—The second sen19 tence of section 9037(a) of such Code is amended by strik20 ing ‘‘section 9006(c) and for payments under section 

21 9008(b)(3)’’ and inserting ‘‘section 9006’’. 

22 SEC. 10. REGULATION OF CONVENTION FINANCING. 

23 (a) IN GENERAL.—Section 323 of the Federal Elec24 tion Campaign Act of 1971 (2 U.S.C. 441i) is amended 

25 by adding at the end the following new subsection: 


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1 ‘‘(g) NATIONAL CONVENTIONS.— 

2 ‘‘(1) IN GENERAL.—Any person described in 

3 subsection (a) or (e) shall not solicit, receive, direct, 

4 transfer, or spend any funds in connection with a 

5 presidential nominating convention of any political 

6 party, including funds for a host committee, civic 

7 committee, municipality, or any other person or enti8 ty spending funds in connection with such a conven9 tion, unless such funds— 

10 ‘‘(A) are not in excess of the amounts per11 mitted with respect to contributions to the po12 litical committee established and maintained by 

13 a national political party committee under sec14 tion 315; and 

15 ‘‘(B) are not from sources prohibited by 

16 this Act from making contributions in connec17 tion with an election for Federal office. 

18 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

19 apply to— 

20 ‘‘(A) payments by a Federal, State, or 

21 local government if the funds used for the pay22 ments are from the general public tax revenues 

23 of such government and are not derived from 

24 donations made to a State or local government 

25 for purposes of any convention; and 


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1 ‘‘(B) payments by any person for the pur2 pose of promoting the suitability of a city as a 

3 convention site in advance of its selection, wel4 coming convention attendees to the city, or pro5 viding shopping or entertainment guides to con6 vention attendees.’’. 

7 (b) PUBLIC FINANCING.—Subsection (d) of section 

8 9008 of the Internal Revenue Code of 1986 is amended 

9 to read as follows: 

10 ‘‘(d) EXPENDITURES FOR CONVENTIONS.— 

11 ‘‘(1) IN GENERAL.—The Commission shall not 

12 certify any major party or minor party under sub13 section (g) unless such party agrees that— 

14 ‘‘(A) expenses incurred with respect to a 

15 presidential nominating convention will only be 

16 paid with payments received under subsection 

17 (a) or with funds that are subject to the limita18 tions, prohibitions, and reporting requirements 

19 of the Federal Election Campaign Act of 1971, 

20 and 

21 ‘‘(B) the committee will not accept or use 

22 any goods or services related to or in connection 

23 with any presidential nominating convention 

24 that are paid for or provided by any other per25 son. 


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1 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

2 apply to— 

3 ‘‘(A) payments by a Federal, State, or 

4 local government if the funds used for the pay5 ments are from the general public tax revenues 

6 of such government and are not derived from 

7 donations made to a State or local government 

8 for purposes of any convention, and 

9 ‘‘(B) payments by any person for the pur10 pose of promoting the suitability of a city as a 

11 convention site in advance of its selection, wel12 coming convention attendees to the city, or pro13 viding shopping or entertainment guides to con14 vention attendees.’’. 

15 SEC. 11. DISCLOSURE OF BUNDLED CONTRIBUTIONS. 

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

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

18 amended— 

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

20 (7); 

21 (2) by striking the period at the end of para22 graph (8) and inserting ‘‘; and’’; and 

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

24 paragraph: 


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

2 a candidate for President, the name, address, occu3 pation, and employer of each person who makes a 

4 bundled contribution, and the aggregate amount of 

5 the bundled contributions made by such person dur6 ing the reporting period.’’. 

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

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

9 is amended by adding at the end the following new para10 graph: 

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

12 ‘bundled contribution’ means a series of contribu13 tions that are, in the aggregate, $10,000 or more 

14 and— 

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

16 the authorized committee of the candidate by 

17 one person; or 

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

19 that the contribution was solicited, arranged, or 

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

21 SEC. 12. OFFSET. 

22 (a) IN GENERAL.—Section 211(c)(1)(A) of the Agri23 cultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is 

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


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

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

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

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

5 of this Act. 

6 SEC. 13. EFFECTIVE DATE. 

7 Except as otherwise provided in this Act, the amend8 ments made by this Act shall apply with respect to elec9 tions occurring after January 1, 2006. 

Æ 


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