594 
candidate with respect to an election cycle under section 
501(c). 
‘‘SEC. 534. WAIVER OF AUTHORITY TO RETAIN PORTION OF 
UNSPENT FUNDS AFTER ELECTION. 
‘‘Notwithstanding section 524(a)(2), a candidate who 
receives an additional payment under this subtitle with re-
spect to an election is not permitted to withhold any por-
tion from the amount of unspent funds the candidate is 
required to remit to the Commission under section 
524(a)(1). 
‘‘Subtitle E—Administrative 
Provisions 
‘‘SEC. 541. SOURCE OF PAYMENTS. 
‘‘(a) ALLOCATIONS FROM STATE ELECTION ASSIST-
ANCE
AND INNOVATION TRUST FUND.—The amounts 
used to make payments to participating candidates under 
this title who seek office in a State shall be derived from 
the allocations made to the Commission with respect to 
the State from the State Election Assistance and Innova-
tion Trust Fund (hereafter referred to as the ‘Fund’) 
under section 8012 of the Freedom to Vote Act, as pro-
vided under section 8005(c) of such Act. 
‘‘(b) USE OF ALLOCATIONS TO MAKE PAYMENTS TO 
PARTICIPATING CANDIDATES.— 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00594
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
595 
‘‘(1) 
PAYMENTS
TO
PARTICIPATING
CAN-
DIDATES.—The allocations made to the Commission 
as described in subsection (a) shall be available with-
out further appropriation or fiscal year limitation to 
make payments to participating candidates as pro-
vided in this title. 
‘‘(2) ONGOING REVIEW TO DETERMINE SUFFI-
CIENCY OF STATE ALLOCATIONS.— 
‘‘(A) ONGOING REVIEW.—Not later than 
90 days before the first day of each election 
cycle (beginning with the first election cycle 
that begins after the date of the enactment of 
this title), and on an ongoing basis until the 
end of the election cycle, the Division Director, 
in consultation with the Director of the Office 
of Democracy Advancement and Innovation, 
shall determine whether the amount of the allo-
cation made to the Commission with respect to 
candidates who seek office in a State as de-
scribed in subsection (a) will be sufficient to 
make payments to participating candidates in 
the State in the amounts provided in this title 
during such election cycle. 
‘‘(B) OPPORTUNITY
FOR
STATE
TO
IN-
CREASE ALLOCATION.—If, at any time the Divi-
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00595
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
596 
sion Director determines under subparagraph 
(A) that the amount anticipated to be available 
in the Fund for payments to participating can-
didates in a State with respect to the election 
cycle involved is not, or may not be, sufficient 
to satisfy the full entitlements of participating 
candidates in the State to payments under this 
title for such election cycle— 
‘‘(i) the Division Director shall notify 
the State and Congress; and 
‘‘(ii) the State may direct the Director 
of the Office of Democracy Advancement 
and Innovation to direct the Secretary of 
the Treasury to use the funds described in 
subparagraph (C), in such amounts as the 
State may direct, as an additional alloca-
tion to the Commission with respect to the 
State for purposes of subsection (a), in ac-
cordance with section 8012 of the Freedom 
to Vote Act. 
‘‘(C) FUNDS DESCRIBED.—The funds de-
scribed in this subparagraph are funds which 
were allocated to the State under the Democ-
racy Advancement and Innovation Program 
under subtitle A of title VIII of the Freedom to 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00596
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
597 
Vote Act which, under the State plan under 
section 8002 of such Act, were to be used for 
democracy promotion activities described in 
paragraph (1), (2)(B), (2)(C), or (3) of section 
8001(b) of such Act but which remain unobli-
gated. 
‘‘(3) ELIMINATION OF LIMIT OF AMOUNT OF 
QUALIFIED SMALL DONOR CONTRIBUTIONS.— 
‘‘(A) ELIMINATION
OF
LIMIT.—If, after 
notifying the State under paragraph (2)(B)(i) 
and (if the State so elects) the State directs 
under paragraph (2)(B)(ii) an additional alloca-
tion to the Commission as provided under such 
subparagraph, the Division Director determines 
under paragraph (2)(A) that the amount antici-
pated to be available in the Fund (after such 
additional allocation) for payments to partici-
pating candidates in the State with respect to 
the election cycle involved is still not, or may 
still not be, sufficient to satisfy the full entitle-
ments of participating candidates in the State 
to payments under this title for such election 
cycle, the limit on the amount of a qualified 
small 
donor 
contribution 
under 
section 
504(a)(1)(B) shall not apply with respect to a 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00597
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
598 
participating candidate in the State under this 
title. Nothing in this subparagraph may be con-
strued to waive the limit on the aggregate 
amount of contributions a participating can-
didate may accept from any individual under 
section 521(a)(5). 
‘‘(B) DETERMINATION
OF
AMOUNT
OF 
PAYMENT
TO
CANDIDATE.—In determining 
under section 501(b) the amount of the pay-
ment made to a participating candidate for 
whom the limit on the amount of a qualified 
small donor contribution does not apply pursu-
ant to subparagraph (A), there shall be ex-
cluded any qualified small donor contribution to 
the extent that the amount contributed by the 
individual involved exceeds the limit on the 
amount of such a contribution under section 
504(a)(1)(B). 
‘‘(C) NO USE OF AMOUNTS FROM OTHER 
SOURCES.—In any case in which the Division 
Director determines that the allocation made to 
the Commission with respect to candidates in a 
State as described in subsection (a) is insuffi-
cient to make payments to participating can-
didates in the State under this title (taking into 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00598
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
599 
account any increase in the allocation under 
paragraph (2)), moneys shall not be made avail-
able from any other source for the purpose of 
making such payments. 
‘‘(c) EFFECTIVE DATE.—This section shall take ef-
fect on the date of the enactment of this title, without 
regard to whether or not regulations have been promul-
gated to carry out this section. 
‘‘SEC. 542. ADMINISTRATION THROUGH DEDICATED DIVI-
SION WITHIN COMMISSION. 
‘‘(a) ADMINISTRATION THROUGH DEDICATED DIVI-
SION.— 
‘‘(1) ESTABLISHMENT.—The Commission shall 
establish a separate division within the Commission 
which is dedicated to issuing regulations to carry out 
this title and to otherwise carrying out the operation 
of this title. 
‘‘(2) 
APPOINTMENT
OF
DIRECTOR
AND 
STAFF.— 
‘‘(A) APPOINTMENT.—Not later than June 
1, 2024, the Commission shall appoint a direc-
tor to head the division established under this 
section (to be known as the ‘Division Director’) 
and such other staff as the Commission con-
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00599
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
600 
siders appropriate to enable the division to 
carry out its duties. 
‘‘(B) ROLE OF GENERAL COUNSEL.—If, at 
any time after the date referred to in subpara-
graph (A), there is a vacancy in the position of 
the Division Director, the General Counsel of 
the Commission shall serve as the acting Divi-
sion Director until the Commission appoints a 
Division Director under this paragraph. 
‘‘(3) PRIVATE RIGHT OF ACTION.—Any person 
aggrieved by the failure of the Commission to meet 
the requirements of this subsection may file an ac-
tion in an appropriate district court of the United 
States for such relief, including declaratory and in-
junctive relief, as may be appropriate. 
‘‘(b) REGULATIONS.—Not later than the deadline set 
forth in section 8114 of the Freedom to Vote Act, the 
Commission, acting through the dedicated division estab-
lished under this section, shall prescribe regulations to 
carry out the purposes of this title, including regula-
tions— 
‘‘(1) to establish procedures for verifying the 
amount of qualified small dollar contributions with 
respect to a candidate; 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00600
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
601 
‘‘(2) to establish procedures for effectively and 
efficiently monitoring and enforcing the limits on the 
raising of qualified small dollar contributions; 
‘‘(3) to establish procedures for effectively and 
efficiently monitoring and enforcing the limits on the 
use of personal funds by participating candidates; 
‘‘(4) to establish procedures for monitoring the 
use of payments made from the allocation made to 
the Commission as described in section 541(a) and 
matching contributions under this title through au-
dits of not fewer than 1⁄10 (or, in the case of the 
first 3 election cycles during which the program 
under this title is in effect, not fewer than 1⁄3) of all 
participating candidates or other mechanisms; 
‘‘(5) to establish procedures for carrying out 
audits under section 541(b) and permitting States to 
make additional allocations as provided under sec-
tion 541(b)(2)(B); and 
‘‘(6) to establish rules for preventing fraud in 
the operation of this title which supplement similar 
rules which apply under this Act. 
‘‘SEC. 543. VIOLATIONS AND PENALTIES. 
‘‘(a) CIVIL PENALTY FOR VIOLATION OF CONTRIBU-
TION
AND EXPENDITURE REQUIREMENTS.—If a can-
didate who has been certified as a participating candidate 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00601
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
602 
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 sub-
section shall be used to supplement the allocation made 
to the Commission with respect to the State in which the 
candidate seeks office, as described in section 541(a). 
‘‘(b) REPAYMENT
FOR IMPROPER USE
OF PAY-
MENTS.— 
‘‘(1) IN GENERAL.—If the Commission deter-
mines that any payment made to a participating 
candidate was not used as provided for in this title 
or that a participating candidate has violated any of 
the dates for remission of funds contained in this 
title, the Commission shall so notify the candidate 
and the candidate shall pay to the Commission an 
amount which shall be used to supplement the allo-
cation made to the Commission with respect to the 
State in which the candidate seeks office, as de-
scribed in section 541(a) and which shall be equal 
to— 
‘‘(A) the amount of payments so used or 
not remitted, as appropriate; and 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00602
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
603 
‘‘(B) interest on any such amounts (at a 
rate determined by the Commission). 
‘‘(2) OTHER
ACTION
NOT
PRECLUDED.—Any 
action by the Commission in accordance with this 
subsection shall not preclude enforcement pro-
ceedings by the Commission in accordance with sec-
tion 309(a), including a referral by the Commission 
to the Attorney General in the case of an apparent 
knowing and willful violation of this title. 
‘‘(c) PROHIBITING
CERTAIN
CANDIDATES
FROM 
QUALIFYING AS PARTICIPATING CANDIDATES.— 
‘‘(1) CANDIDATES WITH MULTIPLE CIVIL PEN-
ALTIES.—If the Commission assesses 3 or more civil 
penalties under subsection (a) against a candidate 
(with respect to either a single election or multiple 
elections), the Commission may refuse to certify the 
candidate as a participating candidate under this 
title with respect to any subsequent election, except 
that if each of the penalties were assessed as the re-
sult of a knowing and willful violation of any provi-
sion of this Act, the candidate is not eligible to be 
certified as a participating candidate under this title 
with respect to any subsequent election. 
‘‘(2) CANDIDATES SUBJECT TO CRIMINAL PEN-
ALTY.—A candidate is not eligible to be certified as 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00603
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
604 
a participating candidate under this title with re-
spect to an election if a penalty has been assessed 
against the candidate under section 309(d) with re-
spect to any previous election. 
‘‘(d) IMPOSITION
OF CRIMINAL PENALTIES.—For 
criminal penalties for the failure of a participating can-
didate to comply with the requirements of this title, see 
section 309(d). 
‘‘SEC. 544. INDEXING OF AMOUNTS. 
‘‘(a) INDEXING.—In any calendar year after 2028, 
section 315(c)(1)(B) shall apply to each amount described 
in subsection (b) in the same manner as such section ap-
plies to the limitations established under subsections 
(a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, ex-
cept that for purposes of applying such section to the 
amounts described in subsection (b), the ‘base period’ 
shall be 2028. 
‘‘(b) AMOUNTS DESCRIBED.—The amounts described 
in this subsection are as follows: 
‘‘(1) The amount referred to in section 
502(b)(1) (relating to the minimum amount of quali-
fied small dollar contributions included in a request 
for payment). 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00604
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB
605 
‘‘(2) The amounts referred to in section 
504(a)(1) (relating to the amount of a qualified 
small dollar contribution). 
‘‘(3) The amount referred to in section 
512(a)(2) (relating to the total dollar amount of 
qualified small dollar contributions). 
‘‘(4) The amount referred to in section 
521(a)(5) (relating to the aggregate amount of con-
tributions a participating candidate may accept from 
any individual with respect to an election). 
‘‘(5) The amount referred to in section 
521(b)(1)(A) (relating to the amount of personal 
funds that may be used by a candidate who is cer-
tified as a participating candidate). 
‘‘(6) The amounts referred to in section 
524(a)(2) (relating to the amount of unspent funds 
a candidate may retain for use in the next election 
cycle). 
‘‘(7) The amount referred to in section 
532(a)(3) (relating to the total dollar amount of 
qualified small dollar contributions for a candidate 
seeking an additional payment under subtitle D). 
‘‘(8) The amount referred to in section 533(b) 
(relating to the limit on the amount of an additional 
payment made to a candidate under subtitle D). 
VerDate Sep 11 2014 
23:06 Aug 23, 2023
Jkt 039200
PO 00000
Frm 00605
Fmt 6652
Sfmt 6201
E:\BILLS\H11.IH
H11
pbinns on DSKJLVW7X2PROD with $$_JOB