‘‘(e) AMOUNTS RECEIVED BY GRASSROOTS FUND
FROM STATE AND LOCAL CANDIDATE COMMITTEES.—(1)
Any amount received by a State Party Grassroots Fund
from a State or local candidate committee for expenditures
described in subsection (b) that are for the benefit of that
candidate shall be treated as meeting the requirements of
subsection (b) if—
‘‘(A) such amount is derived from funds which
meet the requirements of this Act with respect to
any limitation or prohibition as to source or dollar
amount specified in section 315(a) (1)(A) and
(2)(A); and
‘‘(B) the State or local candidate committee—
‘‘(i) maintains, in the account from which
payment is made, records of the sources and
amounts of funds for purposes of determining
whether such requirements are met; and
‘‘(ii) certifies that such requirements were
met.
‘‘(2) For purposes of paragraph (1)(A), in determin-
ing whether the funds transferred meet the requirements
of this Act described in such paragraph—
‘‘(A) a State or local candidate committee’s
cash on hand shall be treated as consisting of the
funds most recently received by the committee, and
‘‘(B) the committee must be able to dem-
onstrate that its cash on hand contains sufficient
funds meeting such requirements as are necessary to
cover the transferred funds.
‘‘(3) Notwithstanding paragraph (1), any State Party
Grassroots Fund receiving any transfer described in para-
graph (1) from a State or local candidate committee shall
be required to meet the reporting requirements of this Act,
and shall submit to the Commission all certifications re-
ceived, with respect to receipt of the transfer from such
candidate committee.
‘‘(4) For purposes of this subsection, a State or local
candidate committee is a committee established, financed,
maintained, or controlled by a candidate for other than
Federal office.
‘‘(f) RELATED ENTITIES.—The provisions of this Act
shall apply to any entity that is established, financed, or
maintained by a national committee or State committee
of a political party in the same manner as they apply to
the national or State committee.’’
(b) CONTRIBUTIONS AND EXPENDITURES.—
(1) CONTRIBUTIONS.—Section 301(8)(B) of
such Act (2 U.S.C. 431(8)(B)) is amended—
(A) by striking ‘‘and’’ at the end of clause
(xiii);
(B) by striking clause (xiv); and
(C) by adding at the end the following new
clauses:
‘‘(xiv) any amount contributed to a
candidate for other than Federal office;
‘‘(xv) any amount received or ex-
pended to pay the costs of a State or local
political convention;
‘‘(xvi) any payment for campaign ac-
tivities that are exclusively on behalf of
(and specifically identify only) State or
local candidates and do not identify any
Federal candidate, and that are not activi-
ties described in section 323(b) (without
regard to paragraph (6)(B)) or section
323(c)(1);
‘‘(xvii) any payment for administrative
expenses of a State or local committee of
a political party, including expenses for—
‘‘(I) overhead, including party
meetings;
‘‘(II) staff (other than individuals
devoting a significant amount of their
time to elections for Federal office
and individuals engaged in conducting
get-out-the-vote activities for a Fed-
eral election); and
‘‘(III) conducting party elections
or caucuses;
‘‘(xviii) any payment for research per-
taining solely to State and local candidates
and issues;
‘‘(xix) any payment for development
and maintenance of voter files other than
during the 1-year period ending on the
date during an even-numbered calendar
year on which regularly scheduled general
elections for Federal office occur; and
‘‘(xx) any payment for any other ac-
tivity which is solely for the purpose of in-
fluencing, and which solely affects, an elec-
tion for non-Federal office and which is
not an activity described in section 323(b)
(without regard to paragraph (6)(B)) or
section 323(c)(1).’’.
(2) EXPENDITURES.—Section 301(9)(B) of
such Act (2 U.S.C. 431(9)(B)) is amended—
(A) by striking ‘‘and’’ at the end of clause
(ix);
(B) by striking the period at the end of
clause (x) and inserting a semicolon; and
(C) by adding at the end the following new
clauses:
‘‘(xi) any amount contributed to a
candidate for other than Federal office;
‘‘(xii) any amount received or ex-
pended to pay the costs of a State or local
political convention;
‘‘(xiii) any payment for campaign ac-
tivities that are exclusively on behalf of
(and specifically identify only) State or
local candidates and do not identify any
Federal candidate, and that are not activi-
ties described in section 323(b) (without
regard to paragraph (6)(B)) or section
323(c)(1);
‘‘(xiv) any payment for administrative
expenses of a State or local committee of
a political party, including expenses for—
‘‘(I) overhead, including party
meetings;
‘‘(II) staff (other than individuals
devoting a significant amount of their
time to elections for Federal office