Clean Money Act of 2016

To amend the Federal Election Campaign Act of 1971 to provide political advertising vouchers and payments to defray the costs of postage for candidates in general elections to the Senate or House of Representatives who agree to restrictions on the types of contributions such candidates raise and the types of expenditures such candidates make, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Clean Money Act of 2016 (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Title I—Benefits for Participating Candidates Sec. 101. Political advertising vouchers and payments to defray costs of postage for participating candidates. Title V—Benefits for Participating Candidates Subtitle A—Entitlement to Vouchers and Payments To Defray Costs of Postage Sec. 501. Provision of political advertising vouchers. Sec. 502. Procedures for redemption of political advertising vouchers. Sec. 503. Funds to defray costs of postage. Sec. 504. Qualified small dollar contributions described. Subtitle B—Eligibility and Certification Sec. 511. Eligibility. Sec. 512. Qualifying requirements. Sec. 513. Certification. Subtitle C—Requirements for Candidates Certified as Participating Candidates Sec. 521. Contribution and expenditure requirements. Sec. 522. Administration of campaign. Sec. 523. Returning unused vouchers and funds after election. Subtitle D—Administrative Provisions Sec. 531. Clean Money Fund. Sec. 532. Administration by Commission. Sec. 533. Violations and penalties. Sec. 534. Appeals process. Sec. 535. Indexing of amounts. Sec. 536. Election cycle defined. Sec. 102. Contributions and expenditures by multicandidate and political party political committees on behalf of participating candidates. Sec. 103. Prohibiting use of contributions by participating candidates for purposes other than campaign for election. Title II—Expanding Candidate Access to Advertising Sec. 201. Broadcasts by candidates. Title III—Miscellaneous Provisions Sec. 301. Severability. I Benefits for Participating Candidates 101. Political advertising vouchers and payments to defray costs of postage for participating candidates The Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 et seq. V Benefits for Participating Candidates A Entitlement to Vouchers and Payments To Defray Costs of Postage 501. Provision of political advertising vouchers (a) In general If a candidate in a general election to the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under this title with respect to the election for such office, the candidate shall be entitled to political advertising vouchers as provided under this section. (b) Value of voucher The value of a political advertising voucher provided to a candidate under this section shall be equal to the product of— (1) the population of the State (in the case of a candidate for the office of Senator) or the congressional district involved (in the case of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress), based on the most recent information available from the Bureau of the Census; and (2) $1. (c) Timing The Commission shall provide political advertising vouchers under this section to a candidate not later than 7 days after the candidate is certified as a participating candidate under this title. 502. Procedures for redemption of political advertising vouchers (a) Use (1) Exclusive use Vouchers provided by the Commission to participating candidates under section 501 may be used only for the purchase of broadcast time for political advertisements relating to an election for the office of Senator or Member of the House of Representatives (including a Delegate or Resident Commissioner to the Congress) by the participating candidate to which the vouchers were provided, except that— (A) a candidate may exchange vouchers with a political party under paragraph (2); and (B) a political party may use vouchers only to purchase broadcast time for political advertisements for generic party advertising (as defined by the Commission in regulations), to support candidates for State or local office in a general election, or to support participating candidates of the party in a general election for Federal office, but only if it discloses the value of the voucher used as an expenditure under section 315(d). (2) Exchange with political party committee (A) In general A participating candidate who receives a voucher under this section may transfer the right to use all or a portion of the value of the voucher to a committee of the political party of which the individual is a candidate in exchange for money in an amount equal to the cash value of the voucher or portion exchanged. (B) Continuation of candidate obligations The transfer of a voucher, in whole or in part, to a political party committee under this paragraph does not release the candidate from any obligation with respect to the provision of the voucher under this title. (C) Party committee obligations Any political party committee to which a voucher or portion thereof is transferred under subparagraph (A)— (i) shall account fully, in accordance with such requirements as the Commission may establish, for the receipt of the voucher; and (ii) may not use the transferred voucher or portion thereof for any purpose other than a purpose described in paragraph (1)(B). (D) Voucher as a contribution If a candidate transfers a voucher or any portion thereof to a political party committee under subparagraph (A)— (i) the value of the voucher or portion thereof transferred shall be treated as a contribution from the candidate to the committee, and from the committee to the candidate, for purposes of sections 302 and 304; (ii) the committee may, in exchange, provide to the candidate only funds subject to the prohibitions, limitations, and reporting requirements of title III of this Act; and (iii) the amount, if identified as a voucher exchange (b) Value; acceptance; redemption (1) Voucher Each voucher disbursed by the Commission under this section shall have a value in dollars, redeemable upon presentation to the Commission, together with such documentation and other information as the Commission may require, for the purchase of broadcast time for political advertisements in accordance with this section. (2) Acceptance A broadcasting station shall accept vouchers as payment for the purchase of broadcast time for political advertisements in accordance with this section. (3) Redemption The Commission shall redeem vouchers accepted by broadcasting stations under paragraph (2) upon presentation, subject to such documentation, verification, accounting, and application requirements as the Commission may impose to ensure the accuracy and integrity of the voucher redemption system. (4) Expiration (A) Candidates A voucher may only be used to pay for broadcast time for political advertisements to be broadcast before midnight on the day before the date of the Federal election in connection with which it was issued and shall be null and void for any other use or purpose. (B) Exception for political party committees A voucher held by a political party committee may be used to pay for broadcast time for political advertisements to be broadcast before midnight on December 31st of the odd-numbered year following the year in which the voucher was issued by the Commission. (5) Voucher as expenditure The use of a voucher to purchase broadcast time constitutes an expenditure as defined in section 301(9)(A). (c) Definitions In this section: (1) Broadcasting station The term broadcasting station (2) Political party The term political party 26 U.S.C. 9002(3) 503. Funds to defray costs of postage (a) Availability of payment If a candidate in a general election to the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under this title with respect to the election for such office, the candidate shall be entitled to a payment under this title to defray the costs of postage incurred in connection with the election by authorized committees of the candidate. (b) Amount The amount of the payment made to a candidate under this section to defray the costs of postage shall be equal to the product of— (1) the population of the State (in the case of a candidate for the office of Senator) or the congressional district involved (in the case of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress), based on the most recent information available from the Bureau of the Census; and (2) 50 cents. (c) Use of funds Upon receiving a payment under this section, a candidate shall deposit the payment in a separate, segregated account of any authorized committees of the candidate, and shall ensure that amounts in such account are used solely for the payment of postage incurred by such committees in connection with the election. (d) Timing The Commission shall make a payment under this section to a candidate not later than 7 days after the candidate is certified as a participating candidate under this title. 504. Qualified small dollar contributions described (a) In general In this title, the term qualified small dollar contribution (1) The contribution is in an amount that is— (A) not less than $1; and (B) not more than $200. (2) The contribution is made by an individual, either directly or through an intermediary or conduit (as described in section 315(a)(8)), who is not otherwise prohibited from making a contribution under this Act. (3) The individual who makes the contribution does not make contributions to the candidate or the authorized committees of the candidate with respect to the election involved in an aggregate amount that exceeds the amount described in paragraph (1)(B), or any contribution to the candidate or the authorized committees of the candidate with respect to the election involved that otherwise is not a qualified small dollar contribution. (b) Restriction on subsequent contributions (1) Prohibiting donor from making subsequent non-qualified contributions during election cycle (A) In general An individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election may not make any subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election cycle which is not a qualified small dollar contribution. (B) Exception for contributions to candidates who voluntarily withdraw from participation during qualifying period Subparagraph (A) does not apply with respect to a contribution made to a candidate who, during the Clean Money qualifying period described in section 511(c), submits a statement to the Commission under section 513(c) to voluntarily withdraw from participating in the program under this title. (2) Treatment of subsequent non-qualified contributions If, notwithstanding the prohibition described in paragraph (1), an individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election makes a subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election which is prohibited under paragraph (1) because it is not a qualified small dollar contribution, the candidate may take one of the following actions: (A) Not later than 2 weeks after receiving the contribution, the candidate may return the subsequent contribution to the individual. (B) The candidate may retain the subsequent contribution, so long as not later than 2 weeks after receiving the subsequent contribution, the candidate remits to the Commission for deposit in the Clean Money Fund under section 531 an amount equal to any payments received by the candidate under this title which are attributable to the qualified small dollar contribution made by the individual involved. (3) No effect on ability to make multiple contributions Nothing in this section may be construed to prohibit an individual from making multiple qualified small dollar contributions to any candidate or any number of candidates, so long as each contribution meets each of the requirements of paragraphs (1), (2), and (3) of subsection (a). (c) Notification requirements for candidates (1) Notification Each authorized committee of a candidate who seeks to be a participating candidate under this title shall provide the following information in any materials for the solicitation of contributions, including any Internet site through which individuals may make contributions to the committee: (A) A statement that if the candidate is certified as a participating candidate under this title, the candidate will receive political advertising vouchers under this title in an amount which is based on the total amount of qualified small dollar contributions received. (B) A statement that a contribution which meets the requirements set forth in subsection (a) shall be treated as a qualified small dollar contribution under this title unless the contributor notifies the committee not later than 48 hours after making the contribution that the contribution is not to be so treated. (C) A statement that if a contribution is treated as qualified small dollar contribution under this title, the individual who makes the contribution may not make any contribution to the candidate or the authorized committees of the candidate during the election cycle which is not a qualified small dollar contribution. (2) Alternative methods of meeting requirements An authorized committee may meet the requirements of paragraph (1)— (A) by including the information described in paragraph (1) in the receipt provided under section 512(b)(3) to a person making a qualified small dollar contribution; or (B) by modifying the information it provides to persons making contributions which is otherwise required under title III (including information it provides through the Internet). B Eligibility and Certification 511. Eligibility (a) In general A candidate for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is eligible to be certified as a participating candidate under this title with respect to an election if the candidate meets the following requirements: (1) The candidate files with the Commission a statement of intent to seek certification as a participating candidate. (2) The candidate meets the qualifying requirements of section 512. (3) The candidate files with the Commission a statement certifying that the authorized committees of the candidate meet the requirements of section 504(c). (4) Not later than the last day of the Clean Money qualifying period, the candidate files with the Commission an affidavit signed by the candidate and the treasurer of the candidate's principal campaign committee declaring that the candidate— (A) has complied and, if certified, will comply with the contribution and expenditure requirements of section 521; (B) if certified, will run only as a participating candidate for all elections for the office that such candidate is seeking during that election cycle; and (C) has either qualified or will take steps to qualify under State law to be on the ballot. (5) The candidate is the nominee of a political party whose candidate received not less than 15 percent of the total number of popular votes received by all candidates in the most recent general election for the office the candidate seeks. (b) General election Notwithstanding subsection (a), a candidate shall not be eligible to be certified as a participating candidate under this title for a general election or a general runoff election unless the candidate’s party nominated the candidate to be placed on the ballot for the general election or the candidate is otherwise qualified to be on the ballot under State law. (c) Clean Money qualifying period defined The term Clean Money qualifying period 512. Qualifying requirements (a) Receipt of qualified small dollar contributions from in-State residents A candidate for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress meets the requirement of this section if, during the Clean Money qualifying period described in section 511(c), each of the following occurs: (1) Not fewer than 1,000 individuals who are residents of the State in which the candidate seeks election make a qualified small dollar contribution to the candidate. (2) The candidate obtains a total dollar amount of qualified small dollar contributions from individuals who are residents of the State in which the candidate seeks election which is equal to or greater than $50,000. (b) Requirements relating to receipt of qualified small dollar contribution Each qualified small dollar contribution— (1) may be made by means of a personal check, money order, debit card, credit card, electronic payment account, or any other method deemed appropriate by the Commission; (2) shall be accompanied by a signed statement (or, in the case of a contribution made online or through other electronic means, an electronic equivalent) containing— (A) the contributor’s name and the contributor's address in the State in which the primary residence of the contributor is located; and (B) an oath declaring that the contributor— (i) understands that the purpose of the contribution is to show support for the candidate so that the candidate may qualify for political advertising vouchers under this title; (ii) is making the contribution in his or her own name and from his or her own funds; (iii) has made the contribution willingly; and (iv) has not received any thing of value in return for the contribution; and (3) shall be acknowledged by a receipt that is sent to the contributor with a copy (in paper or electronic form) kept by the candidate for the Commission and a copy (in paper or electronic form) kept by the candidate for the election authorities in the State with respect to which the candidate is seeking election. (c) Verification of qualified small dollar contributions The Commission shall establish procedures for the auditing and verification of qualified small dollar contributions, including procedures for random audits, to ensure that such contributions meet the requirements of this section. 513. Certification (a) Deadline and Notification (1) In general Not later than 5 days after a candidate files an affidavit under section 511(a)(3), the Commission shall— (A) determine whether or not the candidate meets the requirements for certification as a participating candidate; (B) if the Commission determines that the candidate meets such requirements, certify the candidate as a participating candidate; and (C) notify the candidate of the Commission's determination. (2) Deemed certification for subsequent runoff elections If the Commission certifies a candidate as a participating candidate with respect to a general election, the Commissioner shall be deemed to have certified the candidate as a participating candidate with respect to any subsequent runoff election held in that election cycle. (b) Revocation of certification (1) In general The Commission may revoke a certification under subsection (a) if— (A) a candidate fails to qualify to appear on the ballot at any time after the date of certification (other than a candidate certified as a participating candidate with respect to a general election who fails to qualify to appear on the ballot for a subsequent runoff election in that election cycle); (B) a candidate ceases to be a candidate for the office involved, as determined on the basis of an official announcement by an authorized committee of the candidate or on the basis of a reasonable determination by the Commission; or (C) a candidate otherwise fails to comply with the requirements of this title, including any regulatory requirements prescribed by the Commission. (2) Existence of repeated or serious violations The Commission shall revoke a certification under subsection (a) if a penalty is assessed against the candidate under section 309(d) with respect to the election. (3) Effect of revocation If a candidate’s certification is revoked under this subsection— (A) the candidate shall repay to the Clean Money Fund established under section 531— (i) an amount equal to the value of the political advertising vouchers received under this title with respect to the election, plus interest (at a rate determined by the Commission on the basis of an appropriate annual percentage rate for the month involved) on any such amount received; plus (ii) an amount equal to any payment the candidate received under this title to defray the costs of postage with respect to the election, plus interest (at a rate determined by the Commission on the basis of an appropriate annual percentage rate for the month involved) on any such payment received; (B) the candidate may not receive political advertising vouchers or payments to defray the costs of postage under this title during the remainder of the election cycle involved; and (C) the candidate may not be certified as a participating candidate under this title with respect to the next election cycle. (4) Prohibiting participation in future elections for candidates with multiple revocations If the Commission revokes the certification of an individual as a participating candidate under this title 3 times, the individual may not be certified as a participating candidate under this title with respect to any subsequent election. (c) Voluntary withdrawal from participating during qualifying period At any time during the Clean Money qualifying period described in section 511(c), a candidate may withdraw from participation in the program under this title by submitting to the Commission a statement of withdrawal (without regard to whether or not the Commission has certified the candidate as a participating candidate under this title as of the time the candidate submits such statement), so long as the candidate has not received a political advertising voucher under section 501 or a payment under section 503. (d) Participating Candidate defined In this title, a participating candidate C Requirements for Candidates Certified as Participating Candidates 521. Contribution and expenditure requirements (a) Permitted sources of contributions and expenditures Except as provided in subsection (c), a participating candidate with respect to a general election shall, with respect to that election and any subsequent runoff election in that election cycle for the office involved, accept no contributions from any source and make no expenditures from any amounts, other than the following: (1) Qualified small dollar contributions. (2) Political advertising vouchers and payments to defray the costs of postage under this title. (3) Contributions from political committees established and maintained by a national or State political party, subject to the applicable limitations of section 315. (4) Subject to subsection (b), personal funds of the candidate or of any immediate family member of the candidate (other than funds received through qualified small dollar contributions). (5) Contributions from individuals who are otherwise permitted to make contributions under this Act, subject to the applicable limitations of section 315, except that the aggregate amount of contributions a participating candidate may accept from any individual with respect to any such election after the date the candidate files a statement of intent under section 511(a)(1) may not exceed $1,000. (6) Contributions from multicandidate political committees, subject to the applicable limitations of section 315. (b) Special rules for personal funds (1) Limit on amount A candidate who is certified as a participating candidate may use personal funds (including personal funds of any immediate family member of the candidate) so long as— (A) the aggregate amount used with respect to the general election and any subsequent runoff election in that election cycle (including any period of the cycle occurring prior to the candidate’s certification as a participating candidate) does not exceed $10,000; and (B) the funds are used only for making direct payments for the receipt of goods and services which constitute authorized expenditures in connection with such elections. (2) Immediate family member defined In this subsection, the term immediate family (A) the candidate’s spouse; (B) a child, stepchild, parent, grandparent, brother, half-brother, sister, or half-sister of the candidate or the candidate’s spouse; and (C) the spouse of any person described in subparagraph (B). (c) Exceptions (1) Exception for contributions received prior to filing of statement of intent A candidate who has accepted contributions that are not described in subsection (a) is not in violation of subsection (a), but only if all such contributions are— (A) returned to the contributor; (B) submitted to the Commission for deposit in the Clean Money Fund established under section 531; or (C) spent in accordance with paragraph (2). (2) Exception for expenditures made prior to filing of statement of intent If a candidate has made expenditures prior to the date the candidate files a statement of intent under section 511(a)(1) that the candidate is prohibited from making under subsection (a) or subsection (b), the candidate is not in violation of such subsection if the aggregate amount of the prohibited expenditures is less than the amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions which the candidate is required to obtain) which is applicable to the candidate. (3) Exception for campaign surpluses from a previous election Notwithstanding paragraph (1), unexpended contributions received by the candidate or an authorized committee of the candidate with respect to a previous election may be retained, but only if the candidate places the funds in escrow and refrains from raising additional funds for or spending funds from that account during the election cycle in which a candidate is a participating candidate. (4) Exception for contributions received before the effective date of this title Contributions received and expenditures made by the candidate or an authorized committee of the candidate prior to the effective date of this title shall not constitute a violation of subsection (a) or (b). Unexpended contributions shall be treated the same as campaign surpluses under paragraph (3), and expenditures made shall count against the limit in paragraph (2). (d) Special Rule for Coordinated Party Expenditures For purposes of this section, a payment made by a political party in coordination with a participating candidate shall not be treated as a contribution to or as an expenditure made by the participating candidate. (e) Prohibition on joint fundraising committees (1) Prohibition An authorized committee of a candidate who is certified as a participating candidate under this title with respect to an election may not establish a joint fundraising committee with a political committee other than another authorized committee of the candidate. (2) Status of existing committees for prior elections If a candidate established a joint fundraising committee described in paragraph (1) with respect to a prior election for which the candidate was not certified as a participating candidate under this title and the candidate does not terminate the committee, the candidate shall not be considered to be in violation of paragraph (1) so long as that joint fundraising committee does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title. (f) Prohibition on Leadership PACs (1) Prohibition A candidate who is certified as a participating candidate under this title with respect to an election may not establish, finance, maintain, or control a leadership PAC. (2) Status of existing leadership PACs If a candidate established, financed, maintained, or controlled a leadership PAC prior to being certified as a participating candidate under this title and the candidate does not terminate the leadership PAC, the candidate shall not be considered to be in violation of paragraph (1) so long as the leadership PAC does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title. (3) Leadership PAC defined In this subsection, the term leadership PAC 522. Administration of campaign (a) Separate accounting for various permitted contributions Each authorized committee of a candidate certified as a participating candidate under this title— (1) shall provide for separate accounting of each type of contribution described in section 521(a) which is received by the committee; and (2) shall provide for separate accounting for the political advertising vouchers received under this title. (b) Enhanced disclosure of information on donors (1) Mandatory identification of individuals making qualified small dollar contributions Each authorized committee of a participating candidate under this title shall elect, in accordance with section 304(b)(3)(A), to include in the reports the committee submits under section 304 the identification of each person who makes a qualified small dollar contribution to the committee. (2) Mandatory disclosure through Internet Each authorized committee of a participating candidate under this title shall ensure that all information reported to the Commission under this Act with respect to contributions and expenditures of the committee is available to the public on the Internet (whether through a site established for purposes of this subsection, a hyperlink on another public site of the committee, or a hyperlink on a report filed electronically with the Commission) in a searchable, sortable, and downloadable manner. 523. Returning unused vouchers and funds after election Not later than the date that is 180 days after the last election for which a candidate certified as a participating candidate qualifies to be on the ballot during the election cycle involved, such participating candidate shall return to the Commission— (1) any political advertising vouchers provided to authorized committees of the candidate which remain unused as of such date; and (2) any amounts remaining in the separate, segregated accounts established by authorized committees of the candidate under section 503(c) for the receipt of the payments made under this title to defray the costs of postage incurred in connection with the election. D Administrative Provisions 531. Clean Money Fund (a) Establishment There is established in the Treasury a fund to be known as the Clean Money Fund (b) Amounts held by Fund The Fund shall consist of the following amounts: (1) Appropriated amounts Amounts appropriated to the Fund, including trust fund amounts appropriated pursuant to applicable provisions of the Internal Revenue Code of 1986. (2) Other deposits Amounts deposited into the Fund under— (A) section 521(c) (relating to exceptions to contribution requirements); (B) section 533 (relating to violations); and (C) any other section of this Act. (3) Investment returns Interest on, and the proceeds from, the sale or redemption of, any obligations held by the Fund under subsection (c). (c) Investment The Commission shall invest portions of the Fund in obligations of the United States in the same manner as provided under section 9602(b) (d) Use of Fund (1) In general Amounts in the Fund shall be available without further appropriation or fiscal year limitation to redeem vouchers which are accepted by broadcasting stations as payment for the purchase of broadcast time for political advertisements under subtitle A. (2) Insufficient amounts Under regulations established by the Commission, rules similar to the rules of section 9006(c) 532. Administration by Commission (a) Regulations The Commission shall prescribe regulations to carry out the purposes of this title, including regulations— (1) verifying the amount of qualified small dollar contributions with respect to a candidate; (2) effectively and efficiently monitoring and enforcing the limits on the raising of qualified small dollar contributions; (3) effectively and efficiently monitoring and enforcing the limits on the use of personal funds by participating candidates; and (4) monitoring the use of political advertising vouchers and payments provided under this title through audits of not fewer than 1/10 1/3 (b) Review of program (1) In general After each regularly scheduled general election for Federal office, the Commission shall conduct a comprehensive review of the program under this title, including— (A) the maximum and minimum dollar amounts of qualified small dollar contributions under section 504; (B) the number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate; (C) the value of the political advertising vouchers a candidate may receive under this title; (D) the amount of the payment made to a candidate under this title to defray the cots of postage; (E) the overall satisfaction of participating candidates and the American public with the program; and (F) such other matters relating to financing of campaigns as the Commission determines are appropriate. (2) Criteria for review In conducting the review under paragraph (1), the Commission shall consider the following: (A) Qualified small dollar contributions The Commission shall consider whether the number and dollar amounts of qualified small dollar contributions required strikes an appropriate balance regarding the importance of voter involvement, the need to assure adequate incentives for participating, and fiscal responsibility, taking into consideration the number of primary and general election participating candidates, the electoral performance of those candidates, program cost, and any other information the Oversight Commission determines is appropriate. (B) Review of payment levels The Commission shall consider whether the totality of the amount of funds allowed to be raised by participating candidates (including through qualified small dollar contributions) and the value of political advertising vouchers and payments made to defray the costs of postage provided under this title are sufficient for voters in each State to learn about the candidates to cast an informed vote, taking into account the historic amount of spending by winning candidates, media costs, primary election dates, and any other information the Commission determines is appropriate. (3) Recommendations for adjustment of amounts Based on the review conducted under paragraph (1), the Commission may recommend to Congress adjustments of the following amounts: (A) The number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate. (B) The value of the political advertising vouchers a candidate may receive under this title. (C) The amount of the payment made to a candidate under this title to defray the costs of postage. (c) Reports Not later than each June 1 which follows a regularly scheduled general election for Federal office for which payments were made under this title, the Commission shall submit to the Committee on House Administration of the House of Representatives a report— (1) containing an analysis of the review conducted under subsection (b), including a detailed statement of the Commission’s findings, conclusions, and recommendations based on such review, including any recommendations for adjustments of amounts described in subsection (b)(3); and (2) documenting, evaluating, and making recommendations relating to the administrative implementation and enforcement of the provisions of this title. 533. Violations and penalties (a) Civil penalty for violation of contribution and expenditure requirements If a candidate who has been certified as a participating candidate accepts a contribution or makes an expenditure that is prohibited under section 521, the Commission may assess a civil penalty against the candidate in an amount that is not more than 3 times the amount of the contribution or expenditure. Any amounts collected under this subsection shall be deposited into the Clean Money Fund established under section 531. (b) Repayment for improper use payments made To defray costs of postage (1) In general If the Commission determines that any payment made to a candidate under this title to defray the costs of postage was not used as provided for in this title, the Commission shall so notify the candidate and the candidate shall pay to the Fund an amount equal to— (A) the value of the payments so used; and (B) interest on any such amounts (at a rate determined by the Commission). (2) Other action not precluded Any action by the Commission in accordance with this subsection shall not preclude enforcement proceedings by the Commission in accordance with section 309(a), including a referral by the Commission to the Attorney General in the case of an apparent knowing and willful violation of this title. (c) Prohibiting certain candidates from qualifying as participating candidates (1) Candidates with multiple civil penalties If the Commission assesses three or more civil penalties under subsection (a) against a candidate (with respect to either a single election or multiple elections), the Commission may refuse to certify the candidate as a participating candidate under this title with respect to any subsequent election, except that if each of the penalties were assessed as the result of a knowing and willful violation of any provision of this Act, the candidate is not eligible to be certified as a participating candidate under this title with respect to any subsequent election. (2) Candidates subject to criminal penalty A candidate is not eligible to be certified as a participating candidate under this title with respect to an election if a penalty has been assessed against the candidate under section 309(d) with respect to any previous election. 534. Appeals process (a) Review of Actions Any action by the Commission in carrying out this title shall be subject to review by the United States Court of Appeals for the District of Columbia upon petition filed in the Court not later than 30 days after the Commission takes the action for which the review is sought. (b) Procedures The provisions of chapter 7 535. Indexing of amounts (a) Indexing In any calendar year after 2016, section 315(c)(1)(B) shall apply to each amount described in subsection (b) in the same manner as such section applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, except that for purposes of applying such section to the amounts described in subsection (b), the base period (b) Amounts described The amounts described in this subsection are as follows: (1) The amount referred to in section 501(b)(2) (relating to the formula used to determine the value of a political advertising voucher provided to a participating candidate under this title). (2) The amount referred to in section 503(b)(2) (relating to the formula used to determine the amount of the payment made to a participating candidate under this title to defray the costs of postage). (3) The amounts referred to in section 504(a)(1) (relating to the amount of a qualified small dollar contribution). (4) The amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions). (5) The amount referred to in section 521(a)(5) (relating to the aggregate amount of contributions a participating candidate may accept from any individual with respect to an election). (6) The amount referred to in section 521(b)(1) (relating to the amount of personal funds that may be used by a candidate who is certified as a participating candidate). 536. Election cycle defined In this title, the term election cycle . 102. Contributions and expenditures by multicandidate and political party political committees on behalf of participating candidates (a) Authorizing Contributions Only From Separate Accounts Consisting of Qualified small dollar contributions Section 315(a) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30116(a) (9) In the case of a multicandidate political committee or any political committee of a political party, the committee may make a contribution to a candidate who is a participating candidate under title V with respect to an election only if the contribution is paid from a separate, segregated account of the committee which consists solely of contributions which meet the following requirements: (A) Each such contribution is in an amount which meets the requirements for the amount of a qualified small dollar contribution under section 504(a)(1) with respect to the election involved. (B) Each such contribution is made by an individual who is not otherwise prohibited from making a contribution under this Act. (C) The individual who makes the contribution does not make contributions to the committee during the year in an aggregate amount that exceeds the limit described in section 504(a)(1). . (b) Permitting Unlimited Coordinated Expenditures From Small Dollar Sources by Political Parties Section 315(d) of such Act ( 52 U.S.C. 30116(d) (1) in paragraph (3), by striking The national committee Except as provided in paragraph (5), the national committee (2) by adding at the end the following new paragraph: (5) The limits described in paragraph (3) do not apply in the case of expenditures in connection with the general election campaign of a candidate for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress who is a participating candidate under title V with respect to the election, but only if— (A) the expenditures are paid from a separate, segregated account of the committee which is described in subsection (a)(9); and (B) the expenditures are the sole source of funding provided by the committee to the candidate. . 103. Prohibiting use of contributions by participating candidates for purposes other than campaign for election Section 313 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30114 (d) Restrictions on Permitted Uses of Funds by Candidates Receiving Small Dollar Financing Notwithstanding paragraph (2), (3), or (4) of subsection (a), if a candidate for election for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under title V with respect to the election, any contribution which the candidate is permitted to accept under such title may be used only for authorized expenditures in connection with the candidate’s campaign for such office. . II Expanding Candidate Access to Advertising 201. Broadcasts by candidates (a) Lowest unit charge Section 315(b)(1)(A) of the Communications Act of 1934 ( 47 U.S.C. 315(b)(1)(A) for preemptible use thereof station (b) Preemption; audits Section 315 of the Communications Act of 1934 ( 47 U.S.C. 315 (1) by redesignating subsection (c) as subsection (g) and transferring such subsection, as redesignated, to the end; (2) by redesignating subsection (d) as subsection (f) and transferring such subsection, as redesignated, so that it appears after subsection (e); and (3) by inserting after subsection (b) the following: (c) Preemption (1) In general Except as provided in paragraph (2) and notwithstanding the requirements of subsection (b)(1)(A), a licensee may not preempt the use of a broadcasting station by a legally qualified candidate that has purchased and paid for such use under circumstances entitling such candidate to receive the rate under such subsection for such use. (2) Circumstances beyond control of licensee If a program to be broadcast by a broadcasting station is preempted because of circumstances beyond the control of the licensee, an advertisement that is scheduled to be broadcast during such program and the broadcast of which constitutes use of the broadcasting station described in paragraph (1) shall be treated in the same fashion as a comparable commercial advertisement. (d) Audits During the 45-day period preceding the date of a primary or primary runoff election and during the 60-day period preceding the date of a general election or special election, the Commission shall conduct such audits as it considers necessary to ensure that the licensee of each broadcasting station is allocating use of the station in accordance with this section and in a manner that does not warrant revocation of the station license under section 312(a)(7). . (c) Revocation of license for failure To allow access by Federal candidates Section 312 of the Communications Act of 1934 ( 47 U.S.C. 312 (1) in subsection (a)(7)— (A) by inserting in accordance with subsection (h), for willful (B) by striking or repeated (C) by inserting or a cable system non-commercial educational broadcast station, (D) by striking his candidacy the candidacy of the candidate, under the same terms, conditions, and business practices as apply to the most-favored advertiser of the broadcasting station or cable system (2) by adding at the end the following: (h) Conditions for revocation for failure To allow access by Federal candidates (1) Three-strikes rule The Commission may revoke a station license or construction permit under subsection (a)(7) only if the Commission finds that the licensee or permittee has engaged in at least 3 failures described in such subsection with respect to the broadcasting station or cable system to which the license or permit relates. (2) Duration In the case of a person whose station license or construction permit with respect to a broadcasting station or cable system has been revoked under subsection (a)(7)— (A) the Commission may not grant a station license or construction permit to such person with respect to such broadcasting station or cable system during the 5-year period following the revocation; and (B) if the Commission grants such a station license or construction permit to such person after such 5-year period, the number of failures described in subsection (a)(7) shall be calculated for purposes of paragraph (1) without regard to any such failures that occurred while a previous license or permit was in effect. . (d) Technical amendments Section 315 of the Communications Act of 1934 ( 47 U.S.C. 315 (1) in subsection (a), by striking If any licensee Equal opportunities for candidates for same office.— (2) in subsection (b)(1), by moving subparagraphs (A) and (B) 2 ems to the right; (3) in subsection (f), as redesignated, by striking The Commission Regulations.— (4) in subsection (g), as redesignated, by striking For purposes Definitions.— III Miscellaneous Provisions 301. Severability If any provision of this Act or any amendment made by this Act, or the application of a provision of this Act or an amendment made by this Act to any person or circumstance, is held to be unconstitutional, the remainder of this Act, and the application of the provisions to any person or circumstance, shall not be affected by the holding.

Summary: Clean Money Act of 2016 This bill amends the Federal Election Campaign Act of 1971 (FECA) to entitle a candidate in a congressional general election who is certified as a participating candidate under FECA to political advertising vouchers disbursed by the Federal Election Commission (FEC) as well as funds to defray the costs of postage. Participating candidates shall return to the FEC any political advertising vouchers provided to the authorized committees of the candidate which remain unused. The Clean Money Fund is established in the Treasury to be available to redeem vouchers that are accepted by broadcasting stations as payment for the purchase of broadcasting time for political advertisements. The bill imposes civil penalties for violation of contribution and expenditure requirements and requires repayment for improper use of payments made to defray costs of postage. The bill amends the FECA with respect to: (1) contributions and expenditures by multicandidate and political party political committees on behalf of participating candidates, and (2) restrictions on permitted uses of funds by candidates receiving small dollar financing. This bill amends the Communications Act of 1934 to set a station's lowest unit price for preemptible use as the charge for a broadcast by the national committee of a political party for an affiliated candidate. The FEC is authorized to revoke a broadcast station license or construction permit only for at least three willful failures to allow reasonable access to, or to permit purchase of reasonable amounts of time for the use of, a broadcasting station or cable system by a legally qualified candidate for federal office.