Empower Act of 2019

To amend the Internal Revenue Code of 1986 to reform the system of public financing for Presidential elections, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Empower Act of 2019 (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—Primary Elections Sec. 1001. Increase in and modifications to matching payments. Sec. 1002. Eligibility requirements for matching payments. Sec. 1003. Repeal of expenditure limitations. Sec. 1004. Period of availability of matching payments. Sec. 1005. Examination and audits of matchable contributions. Sec. 1006. Modification to limitation on contributions for Presidential primary candidates. TITLE II—General Elections Sec. 2001. Modification of eligibility requirements for public financing. Sec. 2002. Repeal of expenditure limitations and use of qualified campaign contributions. Sec. 2003. Matching payments and other modifications to payment amounts. Sec. 2004. Increase in limit on coordinated party expenditures. Sec. 2005. Establishment of uniform date for release of payments. Sec. 2006. Amounts in Presidential Election Campaign Fund. Sec. 2007. Use of general election payments for general election legal and accounting compliance. TITLE III—Other Campaign Finance Reforms Sec. 3001. Rules relating to joint fundraising committees. Sec. 3002. Repeal of special contribution limits for contributions to national parties for certain purposes. TITLE IV—Effective Date Sec. 4001. Effective date. I Primary Elections 1001. Increase in and modifications to matching payments (a) Increase and modification (1) In general The first sentence of section 9034(a) (A) by striking an amount equal to the amount of each contribution an amount equal to 600 percent of the amount of each matchable contribution (disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person for the election exceeds $200) (B) by striking authorized committees $250 authorized committees (2) Matchable contributions Section 9034 of such Code is amended— (A) by striking the last sentence of subsection (a); and (B) by adding at the end the following new subsection: (c) Matchable contribution defined For purposes of this section and section 9033(b)— (1) Matchable contribution The term matchable contribution (A) the individual making such contribution has not made aggregate contributions (including such matchable contribution) to such candidate and the authorized committees of such candidate in excess of $1,000 for the election, (B) such candidate and the authorized committees of such candidate will not accept contributions from such individual (including such matchable contribution) aggregating more than the amount described in subparagraph (A), and (C) such contribution was a direct contribution. (2) Contribution For purposes of this subsection, the term contribution (3) Direct contribution (A) In general For purposes of this subsection, the term direct contribution (i) forwarded from the individual making the contribution to the candidate or committee by another person, or (ii) received by the candidate or committee with the knowledge that the contribution was made at the request, suggestion, or recommendation of another person. (B) Other definitions In subparagraph (A)— (i) the term person 2 U.S.C. 1601 (ii) a contribution is not made at the request, suggestion, or recommendation of another person . (3) Conforming amendments (A) Section 9032(4) of such Code is amended by striking section 9034(a) section 9034 (B) Section 9033(b)(3) of such Code is amended by striking matching contributions matchable contributions (b) Modification of payment limitation Section 9034(b) of such Code is amended— (1) by striking The total (1) In general The total ; (2) by striking shall not exceed shall not exceed $250,000,000. (3) by adding at the end the following new paragraph: (2) Inflation adjustment (A) In general In the case of any applicable period beginning after 2029, the dollar amount in paragraph (1) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year following the year which such applicable period begins, determined by substituting calendar year 2028 calendar year 1992 (B) Applicable period For purposes of this paragraph, the term applicable period (C) Rounding If any amount as adjusted under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000. . 1002. Eligibility requirements for matching payments (a) Amount of aggregate contributions per State; disregarding of amounts contributed in excess of $200 Section 9033(b)(3) (1) by striking $5,000 $25,000 (2) by striking 20 States 20 States (disregarding any amount of contributions from any such resident to the extent that the total of the amounts contributed by such resident for the election exceeds $200) (b) Contribution limit (1) In general Paragraph (4) of section 9033(b) of such Code is amended to read as follows: (4) the candidate and the authorized committees of the candidate will not accept aggregate contributions from any person with respect to the nomination for election to the office of President of the United States in excess of $1,000 for the election. . (2) Conforming amendments (A) Section 9033(b) of such Code is amended by adding at the end the following new flush sentence: For purposes of paragraph (4), the term contribution . (B) Section 9032(4) of such Code, as amended by section 1001(a)(3)(A), is amended by inserting or 9033(b) 9034 (c) Participation in system for payments for general election Section 9033(b) of such Code is amended— (1) by striking and (2) by striking the period at the end of paragraph (4) and inserting , and (3) by inserting after paragraph (4) 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. . (d) Prohibition on joint fundraising committees Section 9033(b) of such Code, as amended by subsection (c), is amended— (1) by striking and (2) by striking the period at the end of paragraph (5) and inserting ; and (3) by inserting after paragraph (5) adding at the end the following new paragraph: (6) the candidate will not establish a joint fundraising committee with a political committee other than another authorized committee of the candidate, except that candidate established a joint fundraising committee with respect to a prior election for which the candidate was not eligible to receive payments under section 9037 and the candidate does not terminate the committee, the candidate shall not be considered to be in violation of this paragraph 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 eligible to receive payments under such section. . 1003. Repeal of expenditure limitations (a) In general Subsection (a) of section 9035 (a) Personal expenditure limitation No candidate shall knowingly make expenditures from his personal funds, or the personal funds of his immediate family, in connection with his campaign for nomination for election to the office of President in excess of, in the aggregate, $50,000. . (b) Conforming amendment Paragraph (1) of section 9033(b) (1) the candidate will comply with the personal expenditure limitation under section 9035, . 1004. Period of availability of matching payments Section 9032(6) the beginning of the calendar year in which a general election for the office of President of the United States will be held the date that is 6 months prior to the date of the earliest State primary election 1005. Examination and audits of matchable contributions Section 9038(a) and matchable contributions accepted by qualified campaign expenses of 1006. Modification to limitation on contributions for Presidential primary candidates Section 315(a)(6) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30116(a)(6) calendar year four-year election cycle II General Elections 2001. Modification of eligibility requirements for public financing Subsection (a) of section 9003 (a) In general In order to be eligible to receive any payments under section 9006, the candidates of a political party in a Presidential election shall meet the following requirements: (1) Participation in primary payment system The candidate for President received payments under chapter 96 for the campaign for nomination for election to be President. (2) Agreements with Commission The candidates, in writing— (A) agree to obtain and furnish to the Commission such evidence as it may request of the qualified campaign expenses of such candidates, (B) agree to keep and furnish to the Commission such records, books, and other information as it may request, and (C) agree to an audit and examination by the Commission under section 9007 and to pay any amounts required to be paid under such section. (3) Prohibition on joint fundraising committees (A) Prohibition The candidates certify in writing that the candidates will not establish a joint fundraising committee with a political committee other than another authorized committee of the candidate. (B) Status of existing committees for prior elections If a candidate established a joint fundraising committee described in subparagraph (A) with respect to a prior election for which the candidate was not eligible to receive payments under section 9006 and the candidate does not terminate the committee, the candidate shall not be considered to be in violation of subparagraph (A) so long as that joint fundraising committee does not receive any contributions or make any disbursements with respect to the election for which the candidate is eligible to receive payments under section 9006. . 2002. Repeal of expenditure limitations and use of qualified campaign contributions (a) Use of qualified campaign contributions without expenditure limits; application of same requirements for major, minor, and new parties Section 9003 (b) Use of Qualified Campaign Contributions To Defray Expenses (1) In general In order to be eligible to receive any payments under section 9006, the candidates of a party in a Presidential election shall certify to the Commission, under penalty of perjury, that— (A) such candidates and their authorized committees have not and will not accept any contributions to defray qualified campaign expenses other than— (i) qualified campaign contributions, and (ii) contributions to the extent necessary to make up any deficiency payments received out of the fund on account of the application of section 9006(c), and (B) such candidates and their authorized committees have not and will not accept any contribution to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11). (2) Timing of certification The candidate shall make the certification required under this subsection at the same time the candidate makes the certification required under subsection (a)(3). . (b) Definition of qualified campaign contribution Section 9002 of such Code is amended by adding at the end the following new paragraph: (13) Qualified campaign contribution The term qualified campaign contribution (A) does not exceed $1,000 for the election, and (B) with respect to which the candidate has certified in writing that— (i) the individual making such contribution has not made aggregate contributions (including such qualified contribution) to such candidate and the authorized committees of such candidate in excess of the amount described in subparagraph (A), and (ii) such candidate and the authorized committees of such candidate will not accept contributions from such individual (including such qualified contribution) aggregating more than the amount described in subparagraph (A) with respect to such election. . (c) Conforming amendments (1) Repeal of expenditure limits (A) In general Section 315 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30116 (B) Conforming amendments Section 315(c) of such Act ( 52 U.S.C. 30116(c) (i) in paragraph (1)(B)(i), by striking , (b) (ii) in paragraph (2)(B)(i), by striking subsections (b) and (d) subsection (d) (2) Repeal of repayment requirement (A) In general Section 9007(b) (B) Conforming amendment Paragraph (2) of section 9007(b) of such Code, as redesignated by subparagraph (A), is amended— (i) by striking a major party a party (ii) by inserting qualified contributions and contributions (other than (iii) by striking (other than qualified campaign expenses with respect to which payment is required under paragraph (2)) (3) Criminal penalties (A) Repeal of penalty for excess expenses Section 9012 (B) Penalty for acceptance of disallowed contributions; application of same penalty for candidates of major, minor, and new parties Subsection (b) of section 9012 of such Code is amended to read as follows: (b) Contributions (1) Acceptance of disallowed contributions It shall be unlawful for an eligible candidate of a party in a Presidential election or any of his authorized committees knowingly and willfully to accept— (A) any contribution other than a qualified campaign contribution to defray qualified campaign expenses, except to the extent necessary to make up any deficiency in payments received out of the fund on account of the application of section 9006(c), or (B) any contribution to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11). (2) Penalty Any person who violates paragraph (1) shall be fined not more than $5,000, or imprisoned not more than one year, or both. In the case of a violation by an authorized committee, any officer or member of such committee who knowingly and willfully consents to such violation shall be fined not more than $5,000, or imprisoned not more than one year, or both. . 2003. Matching payments and other modifications to payment amounts (a) In general (1) Amount of payments; application of same amount for candidates of major, minor, and new parties Subsection (a) of section 9004 (a) In general Subject to the provisions of this chapter, the eligible candidates of a party in a Presidential election shall be entitled to equal payment under section 9006 in an amount equal to 600 percent of the amount of each matchable contribution received by such candidate or by the candidate’s authorized committees (disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person for the election exceeds $200), except that total amount to which a candidate is entitled under this paragraph shall not exceed $250,000,000. . (2) Repeal of separate limitations for candidates of minor and new parties; inflation adjustment Subsection (b) of section 9004 of such Code is amended to read as follows: (b) Inflation adjustment (1) In general In the case of any applicable period beginning after 2029, the $250,000,000 dollar amount in subsection (a) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year following the year which such applicable period begins, determined by substituting calendar year 2028 calendar year 1992 (2) Applicable period For purposes of this subsection, the term applicable period (3) Rounding If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000. . (3) Conforming amendment Section 9005(a) of such Code is amended by adding at the end the following new sentence: The Commission shall make such additional certifications as may be necessary to receive payments under section 9004. (b) Matchable contribution Section 9002 of such Code, as amended by section 2002(b), is amended by adding at the end the following new paragraph: (14) Matchable contribution The term matchable contribution (A) the individual making such contribution has not made aggregate contributions (including such matchable contribution) to such candidate and the authorized committees of such candidate in excess of $1,000 for the election, (B) such candidate and the authorized committees of such candidate will not accept contributions from such individual (including such matchable contribution) aggregating more than the amount described in subparagraph (A) with respect to such election, and (C) such contribution was a direct contribution (as defined in section 9034(c)(3)). . 2004. Increase in limit on coordinated party expenditures (a) In general Section 315(d)(2) of the Federal Election Campaign Act of 1971 52 U.S.C. 30116(d)(2) (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 $100,000,000. (B) 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. (C) 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. . (b) Conforming Amendments Relating to Timing of Cost-of-Living Adjustment (1) In general Section 315(c)(1) of such Act ( 52 U.S.C. 30116(c)(1) (A) in subparagraph (B), by striking (d) (d)(2) (B) by adding at the end the following new subparagraph: (D) In any calendar year after 2028— (i) the dollar amount in subsection (d)(2) shall be increased by the percent difference determined under subparagraph (A); (ii) the amount so increased shall remain in effect for the calendar year; and (iii) if the 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 ( 52 U.S.C. 30116(c)(2)(B) (A) in clause (i)— (i) by striking (d) (d)(3) (ii) by striking and (B) in clause (ii), by striking the period at the end and inserting ; and (C) by adding at the end the following new clause: (iii) for purposes of subsection (d)(2), calendar year 2027. . 2005. Establishment of uniform date for release of payments (a) Date for payments (1) In general Section 9006(b) (b) Payments from the Fund 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 pay to such candidates out of the fund the amount certified by the Commission on the later of— (1) the last Friday occurring before the first Monday in September, or (2) 24 hours after receiving the certifications for the eligible candidates of all major political parties. Amounts paid to any such candidates shall be under the control of such candidates. . (2) Conforming Amendment The first sentence of section 9006(c) of such Code is amended by striking the time of a certification by the Commission under section 9005 for payment the time of making a payment under subsection (b) (b) Time for certification Section 9005(a) 10 days 24 hours 2006. Amounts in Presidential Election Campaign Fund Section 9006(c) 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. 2007. Use of general election payments for general election legal and accounting compliance Section 9002(11) For purposes of subparagraph (A), an expense incurred by a candidate or authorized committee for general election legal and accounting compliance purposes shall be considered to be an expense to further the election of such candidate. III Other Campaign Finance Reforms 3001. Rules relating to joint fundraising committees (a) Prohibition on joint fundraising committees for candidates (1) In general Section 302(e) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30102(e) (6) No authorized committee of a candidate may establish, participate in, or have any involvement with any joint fundraising committee. . (2) Conforming amendment Section 302(e)(3)(A) of such Act ( 52 U.S.C. 30102(e)(3) (A) by striking except that the candidate except that the candidate (B) by striking ; and (C) by striking clause (ii). (b) Limitation on joint fundraising committees for party committees Section 302 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30102 (j) Participation of party committees in joint fundraising committees No committee of a political party may establish, participate in, or have any involvement with any joint fundraising committee other than a joint fundraising committee that consists of the national committee of a political party and one other committee of the political party. . (c) Effective date The amendments made by this section shall take effect on January 1, 2020. 3002. Repeal of special contribution limits for contributions to national parties for certain purposes (a) In general Section 315(a) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30116(a) (1) in paragraph (1)(B), by striking , or, in the case of contributions made to any of the accounts described in paragraph (9), exceed 300 percent of the amount otherwise applicable under this subparagraph with respect to such calendar year (2) in paragraph (2)(B), by striking , or, in the case of contributions made to any of the accounts described in paragraph (9), exceed 300 percent of the amount otherwise applicable under this subparagraph with respect to such calendar year (3) by striking paragraph (9). (b) Conforming amendment Section 315(d) of such Act ( 52 U.S.C. 30116(d) (c) Effective date The amendments made by this section shall apply to contributions made after the date of the enactment of this Act. (d) Return of previously contributed amounts Not later than 90 days after the date of the enactment of this Act, each political committee established and maintained by a political party shall distribute all amounts in accounts described in section 315(a)(9) of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30116(a)(9) IV Effective Date 4001. Effective date (a) In general Except as otherwise provided, this Act and the amendments made by this Act shall apply with respect to the Presidential election held in 2024 and each succeeding Presidential election, without regard to whether or not the Federal Election Commission has promulgated the final regulations necessary to carry out this Act and the amendments made by this Act by the deadline set forth in subsection (b). (b) Deadline for regulations Not later than June 30, 2022, the Federal Election Commission shall promulgate such regulations as may be necessary to carry out this Act and the amendments made by this Act.

Summary: Empower Act of 2019 This bill modifies the system for the public financing of presidential primary and general elections. The bill (1) eliminates spending limits on participating candidates, (2) increases the amount of matching funds for participating candidates by matching the first $200 of contributions by individuals to candidates at a 6:1 ratio, (3) requires participating candidates to agree to accept contributions of no more than $1,000, and (4) allows national parties to expend up to $100 million in coordination with participating candidates.