I 
109TH CONGRESS 
2D SESSION 
H. R. 5905 
To amend the Internal Revenue Code of 1986 to reform the system of 
public financing for Presidential elections, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 26, 2006 
Mr. MEEHAN (for himself and Mr. SHAYS) introduced the following bill; which 
was referred to the Committee on House Administration, and in addition 
to the Committee on Ways and Means, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to reform 
the system of public financing for Presidential elections, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Presidential Funding Act of 2006’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Revisions to system of Presidential primary matching payments. 
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Sec. 3. Requiring participation in primary payment system as condition of eligi-
bility for general election payments. 
Sec. 4. Revisions to expenditure limits. 
Sec. 5. Additional payments and increased expenditure limits for candidates 
participating in public financing who face certain nonpartici-
pating opponents. 
Sec. 6. Establishment of uniform date for release of payments from Presi-
dential Election Campaign Fund to eligible candidates. 
Sec. 7. Revisions to designation of income tax payments by individual tax-
payers. 
Sec. 8. Amounts in Presidential Election Campaign Fund. 
Sec. 9. Repeal of priority in use of funds for political conventions. 
Sec. 10. Regulation of convention financing. 
Sec. 11. Disclosure of bundled contributions. 
Sec. 12. Effective date. 
SEC. 2. REVISIONS TO SYSTEM OF PRESIDENTIAL PRIMARY 
MATCHING PAYMENTS. 
(a) INCREASE IN MATCHING PAYMENTS.— 
(1) IN GENERAL.—Section 9034(a) of the In-
ternal Revenue Code of 1986 is amended— 
(A) by striking ‘‘an amount equal to the 
amount’’ and inserting ‘‘an amount equal to 
400 percent of the amount’’; and 
(B) by striking ‘‘$250’’ and inserting 
‘‘$200’’. 
(2) ADDITIONAL
MATCHING
PAYMENTS
FOR 
CANDIDATES AFTER MARCH 31 OF THE ELECTION 
YEAR.—Section 9034(b) of such Code is amended to 
read as follows: 
‘‘(b) ADDITIONAL
PAYMENTS
FOR
CANDIDATES 
AFTER MARCH 31 OF THE ELECTION YEAR.—In addition 
to any payment under subsection (a), an individual who 
is a candidate after March 31 of the calendar year in 
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which the presidential election is held and who is eligible 
to receive payments under section 9033 shall be entitled 
to payments under section 9037 in an amount equal to 
the amount of each contribution received by such indi-
vidual after March 31 of the calendar year in which such 
presidential election is held, disregarding any amount of 
contributions from any person to the extent that the total 
of the amounts contributed by such person after such date 
exceeds $200.’’. 
(3) CONFORMING AMENDMENTS.—Section 9034 
of such Code, as amended by paragraph (2), is 
amended— 
(A) by striking the last sentence of sub-
section (a); and 
(B) by inserting after subsection (b) the 
following new subsection: 
‘‘(c) CONTRIBUTION DEFINED.—For purposes of this 
section and section 9033(b), the term ‘contribution’ means 
a gift of money made by a written instrument which iden-
tifies the person making the contribution by full name and 
mailing address, but does not include a subscription, loan, 
advance, or deposit of money, or anything of value or any-
thing described in subparagraph (B), (C), or (D) of sec-
tion 9032(4).’’. 
(b) ELIGIBILITY REQUIREMENTS.— 
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(1) AMOUNT
OF
AGGREGATE
CONTRIBUTIONS 
PER STATE.—Section 9033(b)(3) of such Code is 
amended by striking ‘‘$5,000’’ and inserting 
‘‘$25,000’’. 
(2) 
AMOUNT
OF
INDIVIDUAL
CONTRIBU-
TIONS.—Section 9033(b)(4) of such Code is amend-
ed by striking ‘‘$250’’ and inserting ‘‘$200’’. 
(3) PARTICIPATION IN SYSTEM FOR PAYMENTS 
FOR GENERAL ELECTION.—Section 9033(b) of such 
Code is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (3); 
(B) by striking the period at the end of 
paragraph (4) and inserting ‘‘, and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(5) if the candidate is nominated by a political 
party for election to the office of President, the can-
didate will apply for and accept payments with re-
spect to the general election for such office in ac-
cordance with chapter 95, including the requirement 
that the candidate and the candidate’s authorized 
committees will not incur qualified campaign ex-
penses in excess of the aggregate payments to which 
they will be entitled under section 9004.’’. 
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(c) PERIOD OF AVAILABILITY OF PAYMENTS.— 
(1) IN
GENERAL.—Section 9032(6) of such 
Code is amended by striking ‘‘the beginning of the 
calendar year’’ and inserting ‘‘July 1 of the calendar 
year preceding the calendar year’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
9034(a) of such Code is amended by striking ‘‘the 
beginning of the calendar year’’ and inserting ‘‘July 
1 of the calendar year preceding the calendar year’’. 
SEC. 3. REQUIRING PARTICIPATION IN PRIMARY PAYMENT 
SYSTEM AS CONDITION OF ELIGIBILITY FOR 
GENERAL ELECTION PAYMENTS. 
(a) MAJOR PARTY CANDIDATES.—Section 9003(b) of 
the Internal Revenue Code of 1986 is amended— 
(1) by redesignating paragraphs (1) and (2) as 
paragraphs (2) and (3); and 
(2) by inserting before paragraph (2) (as so re-
designated) the following new paragraph: 
‘‘(1) the candidate received payments under 
chapter 96 for the campaign for nomination;’’. 
(b) MINOR PARTY CANDIDATES.—Section 9003(c) of 
such Code is amended— 
(1) by redesignating paragraphs (1) and (2) as 
paragraphs (2) and (3); and 
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(2) by inserting before paragraph (2) (as so re-
designated) the following new paragraph: 
‘‘(1) the candidate received payments under 
chapter 96 for the campaign for nomination;’’. 
SEC. 4. REVISIONS TO EXPENDITURE LIMITS. 
(a) INCREASE IN EXPENDITURE LIMITS FOR PAR-
TICIPATING CANDIDATES; ELIMINATION OF STATE-SPE-
CIFIC LIMITS.— 
(1) IN
GENERAL.—Section 315(b)(1) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 
441a(b)(1)) is amended by striking ‘‘may make ex-
penditures in excess of’’ and all that follows and in-
serting ‘‘may make expenditures— 
‘‘(A) with respect to a campaign for nomination 
for election to such office— 
‘‘(i) in excess of $100,000,000 before April 
1 of the calendar year in which the presidential 
election is held, and 
‘‘(ii) in excess of $150,000,000 before the 
date described in section 9006(b) of the Inter-
nal Revenue Code of 1986; and 
‘‘(B) with respect to a campaign for election to 
such office, in excess of $100,000,000.’’. 
(2) 
CLERICAL
CORRECTION.—Section 
9004(a)(1) of the Internal Revenue Code of 1986 is 
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amended by striking ‘‘section 320(b)(1)(B) of the 
Federal Election Campaign Act of 1971’’ and insert-
ing ‘‘section 315(b)(1)(B) of the Federal Election 
Campaign Act of 1971’’. 
(b) INCREASE IN LIMIT ON COORDINATED PARTY 
EXPENDITURES.—Section 315(d)(2) of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441a(d)(2)) is 
amended to read as follows: 
‘‘(2)(A) The national committee of a political party 
may not make any expenditure in connection with the gen-
eral election campaign of any candidate for President of 
the United States who is affiliated with such party which 
exceeds $25,000,000. 
‘‘(B) Notwithstanding the limitation under subpara-
graph (A), during the period beginning on April 1 of the 
year in which a presidential election is held and ending 
on the date described in section 9006(b) of the Internal 
Revenue Code of 1986, the national committee of a polit-
ical party may make additional expenditures in connection 
with the general election campaign of a candidate for 
President of the United States who is affiliated with such 
party in an amount not to exceed $25,000,000. 
‘‘(C)(i) Notwithstanding subparagraph (B) or the 
limitation under subparagraph (A), if any nonpartici-
pating primary candidate (within the meaning of sub-
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section (b)(3)) affiliated with the national committee of 
a political party receives contributions or makes expendi-
tures with respect to such candidate’s campaign in an ag-
gregate amount greater than 120 percent of the expendi-
ture limitation in effect under subsection (b)(1)(A)(ii), 
then during the period described in clause (ii), the national 
committee of any other political party may make expendi-
tures in connection with the general election campaign of 
a candidate for President of the United States who is af-
filiated with such other party without limitation. 
‘‘(ii) The period described in this clause is the pe-
riod— 
‘‘(I) beginning on the later of April 1 of the 
year in which a presidential election is held or the 
date which such nonparticipating primary candidate 
first receives contributions or makes expenditures in 
the aggregate amount described in clause (i), and 
‘‘(II) ending on the earlier of the date such 
nonparticipating primary candidate ceases to be a 
candidate for nomination to the office of President 
of the United States and is not a candidate for such 
office or the date described in section 9006(b) of the 
Internal Revenue Code of 1986. 
‘‘(iii) If the nonparticipating primary candidate de-
scribed in clause (i) ceases to be a candidate for nomina-
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tion to the office of President of the United States and 
is not a candidate for such office, clause (i) shall not apply 
and the limitations under subparagraphs (A) and (B) shall 
apply. It shall not be considered to be a violation of this 
Act if the application of the preceding sentence results in 
the national committee of a political party violating the 
limitations under subparagraphs (A) and (B) solely by 
reason of expenditures made by such national committee 
during the period which clause (i) applied. 
‘‘(D) For purposes of this paragraph— 
‘‘(i) any expenditure made by or on behalf of a 
national committee of a political party and in con-
nection with a presidential election shall be consid-
ered to be made in connection with the general elec-
tion 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 con-
nection with the general election campaign of a can-
didate for President of the United States who is af-
filiated with such party if any portion of the commu-
nication is in connection with such election. 
‘‘(E) 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 com-
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mittee of a candidate for the office of President of the 
United States.’’. 
(c) CONFORMING AMENDMENTS RELATING TO TIM-
ING OF COST-OF-LIVING ADJUSTMENT.— 
(1) IN GENERAL.—Section 315(c)(1) of such 
Act ( 2 U.S.C.. 441(c)(1)) is amended— 
(A) in subparagraph (B), by striking ‘‘(b), 
(d),’’ and inserting ‘‘(d)(3)’’; and 
(B) by inserting at the end the following 
new subparagraph: 
‘‘(D) In any calendar year after 2008— 
‘‘(i) a limitation established by subsection (b) or 
(d)(2) shall be increased by the percent difference 
determined under subparagraph (A); 
‘‘(ii) each amount so increased shall remain in 
effect for the calendar year; and 
‘‘(iii) if any 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 (2 U.S.C. 441a(c)(2)(B)) is amended— 
(A) in clause (i), by striking ‘‘subsections 
(b) and (d)’’ and inserting ‘‘subsection (d)(3)’’; 
(B) in clause (i), by striking ‘‘and’’ at the 
end; 
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(C) in clause (ii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
clause: 
‘‘(iii) for purposes of subsection (b) and 
(d)(2), calendar year 2007.’’. 
(d) REPEAL OF EXCLUSION OF FUNDRAISING COSTS 
FROM
TREATMENT
AS
EXPENDITURES.—Section 
301(9)(B)(vi) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431(9)(B)(vi)) is amended by striking ‘‘in 
excess of an amount equal to 20 percent of the expenditure 
limitation applicable to such candidate under section 
315(b)’’ and inserting the following: ‘‘who is seeking nomi-
nation for election or election to the office of President 
or Vice President of the United States’’. 
SEC. 5. ADDITIONAL PAYMENTS AND INCREASED EXPENDI-
TURE LIMITS FOR CANDIDATES PARTICI-
PATING IN PUBLIC FINANCING WHO FACE 
CERTAIN NONPARTICIPATING OPPONENTS. 
(a) CANDIDATES IN PRIMARY ELECTIONS.— 
(1) ADDITIONAL PAYMENTS.— 
(A) IN GENERAL.—Section 9034 of the In-
ternal Revenue Code of 1986, as amended by 
section 2, is amended by redesignating sub-
section (c) as subsection (d) and by inserting 
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after subsection (b) the following new sub-
section: 
‘‘(c) ADDITIONAL PAYMENTS FOR CANDIDATES FAC-
ING NONPARTICIPATING OPPONENTS.— 
‘‘(1) IN
GENERAL.—In addition to any pay-
ments provided under subsections (a) and (b), each 
candidate described in paragraph (2) shall be enti-
tled to— 
‘‘(A) a payment under section 9037 in an 
amount equal to the amount of each contribu-
tion received by such candidate on or after July 
1 of the calendar year preceding the calendar 
year of the presidential election with respect to 
which such candidate is seeking nomination and 
before the qualifying date, disregarding any 
amount of contributions from any person to the 
extent that the total of the amounts contributed 
by such person exceeds $200, and 
‘‘(B) payments under section 9037 in an 
amount equal to the amount of each contribu-
tion received by such candidate on or after the 
qualifying date, disregarding any amount of 
contributions from any person to the extent 
that the total of the amounts contributed by 
such person exceeds $200. 
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‘‘(2) CANDIDATES TO WHOM THIS SUBSECTION 
APPLIES.—A candidate is described in this para-
graph if such candidate— 
‘‘(A) is eligible to receive payments under 
section 9033, and 
‘‘(B) is opposed by a nonparticipating pri-
mary candidate of the same political party who 
receives contributions or makes expenditures 
with respect to the campaign— 
‘‘(i) before April 1 of the year in 
which the presidential election is held, in 
an aggregate amount greater than 120 
percent of the expenditure limitation under 
section 315(b)(1)(A)(i) of the Federal 
Election Campaign Act of 1971, or 
‘‘(ii) before the date described in sec-
tion 9006(b), in an aggregate amount 
greater than 120 percent of the expendi-
ture 
limitation 
under 
section 
315(b)(1)(A)(ii) of such Act. 
‘‘(3) 
NONPARTICIPATING
PRIMARY
CAN-
DIDATE.—In this subsection, the term ‘nonpartici-
pating primary candidate’ means a candidate for 
nomination for election for the office of President 
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who is not eligible under section 9033 to receive pay-
ments from the Secretary under this chapter. 
‘‘(4) QUALIFYING
DATE.—In this subsection, 
the term ‘qualifying date’ means the first date on 
which the contributions received or expenditures 
made by the nonparticipating primary candidate de-
scribed in paragraph (2)(B) exceed the amount de-
scribed under either clause (i) or clause (ii) of such 
paragraph.’’. 
(B) CONFORMING
AMENDMENT.—Section 
9034(b)(2) of such Code, as amended by sec-
tion 2, is amended by striking ‘‘subsection (a)’’ 
and inserting ‘‘subsections (a) and (c)’’. 
(2) INCREASE IN EXPENDITURE LIMIT.—Sec-
tion 315(b) of the Federal Election Campaign Act of 
1971 (2 U.S.C. 441a(b)) is amended by adding at 
the end the following new paragraph: 
‘‘(3)(A) In the case of an eligible candidate, each of 
the limitations under clause (i) and (ii) of paragraph 
(1)(A) shall be increased— 
‘‘(i) by $50,000,000, if any nonparticipating 
primary candidate of the same political party as 
such candidate receives contributions or makes ex-
penditures with respect to the campaign in an aggre-
gate amount greater than 120 percent of the ex-
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penditure limitation applicable to eligible candidates 
under clause (i) or (ii) of paragraph (1)(A) (before 
the application of this clause), and 
‘‘(ii) by $100,000,000, if such nonparticipating 
primary candidate receives contributions or makes 
expenditures with respect to the campaign in an ag-
gregate amount greater than 120 percent of the ex-
penditure limitation applicable to eligible candidates 
under clause (i) or (ii) of paragraph (1)(A) after the 
application of clause (i). 
‘‘(B) Each dollar amount under subparagraph (A) 
shall be considered a limitation under this subsection for 
purposes of subsection (c). 
‘‘(C) In this paragraph, the term ‘eligible candidate’ 
means, with respect to any period, a candidate— 
‘‘(i) who is eligible to receive payments under 
section 9033 of the Internal Revenue Code of 1986; 
‘‘(ii) who is opposed by a nonparticipating pri-
mary candidate; and 
‘‘(iii) with respect to whom the Commission has 
given notice under section 304(i)(1)(B)(i). 
‘‘(D) In this paragraph, the term ‘nonparticipating 
primary candidate’ means, with respect to any eligible can-
didate, a candidate for nomination for election for the of-
fice of President who is not eligible under section 9033 
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of the Internal Revenue Code of 1986 to receive payments 
from the Secretary of the Treasury under chapter 96 of 
such Code.’’. 
(b) CANDIDATES IN GENERAL ELECTIONS.— 
(1) ADDITIONAL PAYMENTS.— 
(A) IN GENERAL.—Section 9004(a)(1) of 
the Internal Revenue Code of 1986 is amend-
ed— 
(i) by striking ‘‘(1) The eligible can-
didates’’ and inserting ‘‘(1)(A) Except as 
provided in subparagraph (B), the eligible 
candidates’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(B) In addition to the payments described in 
subparagraph (A), each eligible candidate of a major 
party in a presidential election with an opponent in 
the election who is not eligible to receive payments 
under section 9006 and who receives contributions 
or makes expenditures with respect to the primary 
and general elections in an aggregate amount great-
er than 120 percent of the combined expenditure 
limitations applicable to eligible candidates under 
section 315(b)(1) of the Federal Election Campaign 
Act of 1971 shall be entitled to an equal payment 
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under section 9006 in an amount equal to 100 per-
cent of the expenditure limitation applicable under 
such section with respect to a campaign for election 
to the office of President.’’. 
(B) SPECIAL
RULE
FOR
MINOR
PARTY 
CANDIDATES.—Section 9004(a)(2)(A) of such 
Code is amended— 
(i) by striking ‘‘(A) The eligible can-
didates’’ and inserting ‘‘(A)(i) Except as 
provided in clause (ii), the eligible can-
didates’’; and 
(ii) by adding at the end the following 
new clause: 
‘‘(ii) In addition to the payments described in 
clause (i), each eligible candidate of a minor party 
in a presidential election with an opponent in the 
election who is not eligible to receive payments 
under section 9006 and who receives contributions 
or makes expenditures with respect to the primary 
and general elections in an aggregate amount great-
er than 120 percent of the combined expenditure 
limitations applicable to eligible candidates under 
section 315(b)(1) of the Federal Election Campaign 
Act of 1971 shall be entitled to an equal payment 
under section 9006 in an amount equal to 100 per-
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cent of the payment to which such candidate is enti-
tled under clause (i).’’. 
(2) EXCLUSION
OF
ADDITIONAL
PAYMENT 
FROM DETERMINATION OF EXPENDITURE LIMITS.— 
Section 315(b) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 441a(b)), as amended by sub-
section (a), is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) In the case of a candidate who is eligible to re-
ceive 
payments 
under 
section 
9004(a)(1)(B) 
or 
9004(a)(2)(A)(ii) of the Internal Revenue Code of 1986, 
the limitation under paragraph (1)(B) shall be increased 
by the amount of such payments received by the can-
didate.’’. 
(c) PROCESS FOR DETERMINATION OF ELIGIBILITY 
FOR ADDITIONAL PAYMENT AND INCREASED EXPENDI-
TURE LIMITS.—Section 304 of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 434) is amended by adding 
at the end the following new subsection 
‘‘(i) REPORTING
AND CERTIFICATION
FOR ADDI-
TIONAL
PUBLIC
FINANCING
PAYMENTS
FOR
CAN-
DIDATES.— 
‘‘(1) PRIMARY CANDIDATES.— 
‘‘(A) NOTIFICATION OF EXPENDITURES BY 
INELIGIBLE CANDIDATES.— 
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‘‘(i) EXPENDITURES
IN
EXCESS
OF 
120 PERCENT OF LIMIT.—If a candidate 
for a nomination for election for the office 
of President who is not eligible to receive 
payments under section 9033 of the Inter-
nal Revenue Code of 1986 receives con-
tributions or makes expenditures with re-
spect to the primary election in an aggre-
gate amount greater than 120 percent of 
the expenditure limitation applicable to eli-
gible candidates under clause (i) or (ii) of 
section 315(b)(1)(A), the candidate shall 
notify the Commission in writing that the 
candidate has made aggregate expenditures 
in such an amount not later than 24 hours 
after first receiving aggregate contribu-
tions or making aggregate expenditures in 
such an amount. 
‘‘(ii) EXPENDITURES
IN
EXCESS
OF 
120 PERCENT OF INCREASED LIMIT.—If a 
candidate for a nomination for election for 
the office of President who is not eligible 
to receive payments under section 9033 of 
the Internal Revenue Code of 1986 re-
ceives contributions or makes expenditures 
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with respect to the primary election in an 
aggregate amount greater than 120 per-
cent of the expenditure limitation applica-
ble to eligible candidates under section 
315(b) after the application of paragraph 
(3)(A)(i) thereof, the candidate shall notify 
the Commission in writing that the can-
didate has made aggregate expenditures in 
such an amount not later than 24 hours 
after first receiving aggregate contribu-
tions or making aggregate expenditures in 
such an amount. 
‘‘(B) CERTIFICATION.—Not later than 24 
hours after receiving any written notice under 
subparagraph (A) from a candidate, the Com-
mission shall— 
‘‘(i) certify to the Secretary of the 
Treasury that opponents of the candidate 
are eligible for additional payments under 
section 9034(c) of the Internal Revenue 
Code of 1986; 
‘‘(ii) notify each opponent of the can-
didate who is eligible to receive payments 
under section 9033 of the Internal Rev-
enue Code of 1986 of the amount of the 
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increased limitation on expenditures which 
applies pursuant to section 315(b)(3); and 
‘‘(iii) in the case of a notice under 
subparagraph (A)(i), notify the national 
committee of each political party (other 
than the political party with which the can-
didate is affiliated) of the inapplicability of 
expenditure limits under section 315(d)(2) 
pursuant to subparagraph (C) thereof. 
‘‘(2) GENERAL ELECTION CANDIDATES.— 
‘‘(A) NOTIFICATION OF EXPENDITURES BY 
INELIGIBLE CANDIDATES.—If a candidate in a 
presidential election who is not eligible to re-
ceive payments under section 9006 of the Inter-
nal Revenue Code of 1986 receives contribu-
tions or makes expenditures with respect to the 
primary and general elections in an aggregate 
amount greater than 120 percent of the com-
bined expenditure limitations applicable to eligi-
ble candidates under section 315(b)(1), the can-
didate shall notify the Commission in writing 
that the candidate has made aggregate expendi-
tures in such an amount not later than 24 
hours after first receiving aggregate contribu-
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tions or making aggregate expenditures in such 
an amount. 
‘‘(B) CERTIFICATION.—Not later than 24 
hours after receiving a written notice under 
subparagraph (A), the Commission shall certify 
to the Secretary of the Treasury for payment to 
any eligible candidate who is entitled to an ad-
ditional payment under paragraph (1)(B) or 
(2)(A)(ii) of section 9004(a) of the Internal 
Revenue Code of 1986 that the candidate is en-
titled to payment in full of the additional pay-
ment under such section.’’. 
SEC. 6. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE 
OF PAYMENTS FROM PRESIDENTIAL ELEC-
TION CAMPAIGN FUND TO ELIGIBLE CAN-
DIDATES. 
(a) IN GENERAL.—The first sentence of section 
9006(b) of the Internal Revenue Code of 1986 is amended 
to read as follows: ‘‘If the Secretary of the Treasury re-
ceives a certification from the Commission under section 
9005 for payment to the eligible candidates of a political 
party, the Secretary shall, on the last Friday occurring 
before the first Monday in September, pay to such can-
didates of the fund the amount certified by the Commis-
sion.’’. 
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(b) CONFORMING AMENDMENT.—The first sentence 
of section 9006(c) of such Code is amended by striking 
‘‘the time of a certification by the Comptroller General 
under section 9005 for payment’’ and inserting ‘‘the time 
of making a payment under subsection (b)’’. 
SEC. 7. REVISIONS TO DESIGNATION OF INCOME TAX PAY-
MENTS BY INDIVIDUAL TAXPAYERS. 
(a) INCREASE IN AMOUNT DESIGNATED.—Section 
6096(a) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) in the first sentence, by striking ‘‘$3’’ each 
place it appears and inserting ‘‘$10’’; and 
(2) in the second sentence— 
(A) by striking ‘‘$6’’ and inserting ‘‘$20’’, 
and 
(B) by striking ‘‘$3’’ and inserting ‘‘$10’’. 
(b) INDEXING.—Section 6096 of such Code is amend-
ed by adding at the end the following new subsection: 
‘‘(d) INDEXING OF AMOUNT DESIGNATED.— 
‘‘(1) IN GENERAL.—With respect to each tax-
able year after 2006, each amount referred to in 
subsection (a) shall be increased by the percent dif-
ference described in paragraph (2), except that if 
any such amount after such an increase is not a 
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multiple of $1, such amount shall be rounded to the 
nearest multiple of $1. 
‘‘(2) PERCENT DIFFERENCE DESCRIBED.—The 
percent difference described in this paragraph with 
respect to a taxable year is the percent difference 
determined under section 315(c)(1)(A) of the Fed-
eral Election Campaign Act of 1971 with respect to 
the calendar year during which the taxable year be-
gins, except that the base year involved shall be 
2006.’’. 
(c) ENSURING TAX PREPARATION SOFTWARE DOES 
NOT PROVIDE AUTOMATIC RESPONSE TO DESIGNATION 
QUESTION.—Section 6096 of such Code, as amended by 
subsection (b), is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) ENSURING TAX PREPARATION SOFTWARE DOES 
NOT PROVIDE AUTOMATIC RESPONSE TO DESIGNATION 
QUESTION.—The Secretary shall promulgate regulations 
to ensure that electronic software used in the preparation 
or filing of individual income tax returns does not auto-
matically accept or decline a designation of a payment 
under this section.’’. 
(d) PUBLIC INFORMATION PROGRAM ON DESIGNA-
TION.—Section 6096 of such Code, as amended by sub-
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sections (b) and (c), is amended by adding at the end the 
following new subsection: 
‘‘(f) PUBLIC INFORMATION PROGRAM.— 
‘‘(1) IN GENERAL.—The Federal Election Com-
mission shall conduct a program to inform and edu-
cate the public regarding the purposes of the Presi-
dential Election Campaign Fund, the procedures for 
the designation of payments under this section, and 
the effect of such a designation on the income tax 
liability of taxpayers. 
‘‘(2) USE OF FUNDS FOR PROGRAM.—Amounts 
in the Presidential Election Campaign Fund shall be 
made available to the Federal Election Commission 
to carry out the program under this subsection, ex-
cept that the amount made available for this pur-
pose may not exceed $10,000,000 with respect to 
any Presidential election cycle. In this paragraph, a 
‘Presidential election cycle’ is the 4-year period be-
ginning with January of the year following a Presi-
dential election.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
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SEC. 8. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN 
FUND. 
(a) DETERMINATION OF AMOUNTS IN FUND.—Sec-
tion 9006(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new sentence: 
‘‘In making a determination of whether there are insuffi-
cient moneys in the fund for purposes of the previous sen-
tence, 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, ex-
cept that the amount of the estimate may not exceed the 
average of the annual amounts deposited in the fund dur-
ing the previous 3 years.’’. 
(b) SPECIAL RULE FOR FIRST CAMPAIGN CYCLE 
UNDER THIS ACT.— 
(1) IN GENERAL.—Section 9006 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(d) SPECIAL AUTHORITY TO BORROW.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(c), there are authorized to be appropriated to the 
fund, as repayable advances, such sums as are nec-
essary to carry out the purposes of the fund during 
the period ending on the first presidential election 
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occurring after the date of the enactment of this 
subsection. 
‘‘(2) REPAYMENT OF ADVANCES.— 
‘‘(A) IN GENERAL.—Advances made to the 
fund shall be repaid, and interest on such ad-
vances shall be paid, to the general fund of the 
Treasury when the Secretary determines that 
moneys are available for such purposes in the 
fund. 
‘‘(B) RATE OF INTEREST.—Interest on ad-
vances made to the fund shall be at a rate de-
termined by the Secretary of the Treasury (as 
of the close of the calendar month preceding the 
month in which the advance is made) to be 
equal to the current average market yield on 
outstanding marketable obligations of the 
United States with remaining periods to matu-
rity comparable to the anticipated period during 
which the advance will be outstanding and shall 
be compounded annually.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
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SEC. 9. REPEAL OF PRIORITY IN USE OF FUNDS FOR POLIT-
ICAL CONVENTIONS. 
(a) IN GENERAL.—Section 9008(a) of the Internal 
Revenue Code of 1986 is amended by striking the period 
at the end of the second sentence and all that follows and 
inserting the following: ‘‘, except that the amount depos-
ited may not exceed the amount available after the Sec-
retary determines that amounts for payments under sec-
tion 9006 and section 9037 are available for such pay-
ments.’’. 
(b) CONFORMING AMENDMENT.—The second sen-
tence of section 9037(a) of such Code is amended by strik-
ing ‘‘section 9006(e) and for payments under section 
9008(b)(3)’’ and inserting ‘‘section 9006’’. 
SEC. 10. REGULATION OF CONVENTION FINANCING. 
(a) IN GENERAL.—Section 323 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441i) is amended 
by adding at the end the following new subsection: 
‘‘(g) NATIONAL CONVENTIONS.— 
‘‘(1) IN
GENERAL.—Any person described in 
subsection (a) or (e) shall not solicit, receive, direct, 
transfer, or spend any funds in connection with a 
presidential nominating convention of any political 
party, including funds for a host committee, civic 
committee, municipality, or any other person or enti-
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ty spending funds in connection with such a conven-
tion, unless such funds— 
‘‘(A) are not in excess of the amounts per-
mitted with respect to contributions to the po-
litical committee established and maintained by 
a national political party committee under sec-
tion 315; and 
‘‘(B) are not from a sources prohibited by 
this Act from making contributions in connec-
tion with an election for Federal office. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to— 
‘‘(A) payments by a Federal, State, or 
local government if the funds used for the pay-
ments are from the general public tax revenues 
of such government and are not derived from 
donations made to a State or local government 
for purposes of any convention; and 
‘‘(B) payments by any person for the pur-
pose of promoting the suitability of a city as a 
convention site in advance of its selection, wel-
coming convention attendees to the city, or pro-
viding shopping or entertainment guides to con-
vention attendees.’’. 
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(b) PUBLIC FINANCING.—Subsection (d) of section 
9008 of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(d) EXPENDITURES FOR CONVENTIONS.— 
‘‘(1) IN GENERAL.—The Commission shall not 
certify any major party or minor party under sub-
section (g) unless such party agrees that— 
‘‘(A) expenses incurred with respect to a 
presidential nominating convention will only be 
paid with payments received under subsection 
(a) or with funds that are subject to the limita-
tions, prohibitions, and reporting requirements 
of the Federal Election Campaign Act of 1971, 
and 
‘‘(B) the committee will not accept or use 
any goods or services related to or in connection 
with any presidential nominating convention 
that are paid for or provided by any other per-
son. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to— 
‘‘(A) payments by a Federal, State, or 
local government if the funds used for the pay-
ments are from the general public tax revenues 
of such government and are not derived from 
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donations made to a State or local government 
for purposes of any convention, and 
‘‘(B) payments by any person for the pur-
pose of promoting the suitability of a city as a 
convention site in advance of its selection, wel-
coming convention attendees to the city, or pro-
viding shopping or entertainment guides to con-
vention attendees.’’. 
SEC. 11. DISCLOSURE OF BUNDLED CONTRIBUTIONS. 
(a) IN GENERAL.—Section 304(b) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 434(b)) is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(7); 
(2) by striking the period at the end of para-
graph (8) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(9) in the case of an authorized committee of 
a candidate for President, the name, address, occu-
pation, and employer of each person who makes a 
bundled contribution, and the aggregate amount of 
the bundled contributions made by such person dur-
ing the reporting period.’’. 
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(b) BUNDLED CONTRIBUTION.—Section 301 of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 431) 
is amended by adding at the end the following new para-
graph: 
‘‘(27) BUNDLED
CONTRIBUTION.—The term 
‘bundled contribution’ means a series of contribu-
tions that are, in the aggregate, $10,000 or more 
and— 
‘‘(A) are transferred to the candidate or 
the authorized committee of the candidate by 
one person; or 
‘‘(B) include a written or oral notification 
that the contribution was solicited, arranged, or 
directed by a person other than the donor.’’. 
SEC. 12. EFFECTIVE DATE. 
Except as otherwise provided in this Act, the amend-
ments made by this Act shall apply with respect to elec-
tions occurring after January 1, 2006. 
Æ 
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