FIED GRASSROOTS CONTRIBUTIONS.—If a candidate who 
is certified as a participating candidate under this title 
pays any person a commission on a per contribution basis 
for collecting qualified grassroots contributions, the 
amount paid by the candidate and the authorized commit-
tees of the candidate may not exceed 20% of the value 
of the qualified grassroots contributions the person col-
lected. 
‘‘SEC. 504. QUALIFIED GRASSROOTS CONTRIBUTIONS DE-
SCRIBED. 
‘‘(a) IN GENERAL.—In this title, the term ‘qualified 
grassroots contribution’ means, with respect to a can-
didate and the authorized committees of a candidate, a 
contribution that meets the following requirements: 
‘‘(1) The contribution is in an amount that is— 
‘‘(A) not less than the greater of $5 or the 
amount determined by the Commission under 
section 542(c)(2); and 
‘‘(B) not more than the greater of $100 or 
the amount determined by the Commission 
under section 542(c)(2). 
‘‘(2) The contribution is made by an individual 
who is not otherwise prohibited from making a con-
tribution under this Act. 
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‘‘(3) The individual who makes the contribution 
has not made any contribution to the candidate or 
the authorized committees of the candidate during 
the election cycle involved that is not a qualified 
grassroots contribution. 
‘‘(b) TREATMENT
OF GRASSROOTS REFUNDABLE 
CREDITS AND GRASSROOTS DEMOCRACY VOUCHERS.— 
Any payment received by a candidate and the authorized 
committees of a candidate which is treated as a qualified 
grassroots Federal congressional campaign contribution 
under section 36B of the Internal Revenue Code of 1986 
or which consists of a Grassroots Democracy Coupon 
under subtitle B of title I of the Grassroots Democracy 
Act of 2012 shall be considered a qualified grassroots con-
tribution for purposes of this title, so long as the indi-
vidual making the payment meets the requirements of 
paragraphs (2) and (3) of subsection (a). 
‘‘(c) EXCEPTION FOR CONTRIBUTIONS BY INDIVID-
UALS OPTING OUT OF GRASSROOTS SYSTEMS.— 
‘‘(1) IN GENERAL.—A contribution by an indi-
vidual shall not be treated as a qualified grassroots 
contribution for purposes of this title if, at the time 
the individual makes the contribution, the individual 
notifies the recipient that the contribution is not to 
be treated as a qualified grassroots contribution. 
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‘‘(2) CONTRIBUTIONS
DEEMED
QUALIFIED.— 
Any contribution which meets the requirements set 
forth in subsection (a) shall be deemed a qualified 
grassroots contribution without regard to whether 
the individual making the contribution designates 
the contribution as a qualified grassroots contribu-
tion for purposes of this title. 
‘‘(d) RESTRICTION
ON
SUBSEQUENT
CONTRIBU-
TIONS.— 
‘‘(1) IN GENERAL.—An individual who makes a 
qualified grassroots contribution to a candidate or 
the authorized committees of a candidate during an 
election cycle may not make any contribution to such 
candidate or the authorized committees of such can-
didate during the cycle which is not a qualified 
grassroots contribution. 
‘‘(2) NO EFFECT ON ABILITY TO MAKE MUL-
TIPLE
CONTRIBUTIONS.—Nothing in this section 
may be construed to prohibit an individual from 
making multiple qualified grassroots contributions to 
any candidate or any number of candidates, so long 
as each contribution meets the requirements of this 
section. 
‘‘(e) NOTIFICATION
REQUIREMENTS
FOR
CAN-
DIDATES.— 
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‘‘(1) NOTIFICATION.—Each authorized com-
mittee 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 matching pay-
ments in an amount which is based on the total 
amount of qualified grassroots contributions re-
ceived. 
‘‘(B) A statement that a contribution 
which meets the requirements set forth in sub-
section (a) shall be treated as a qualified grass-
roots contribution under this title unless the 
contributor notifies the committee that the con-
tribution is not to be so treated. 
‘‘(C) A statement that if a contribution is 
treated as qualified grassroots contribution 
under this title, the individual who makes the 
contribution may not make any contribution to 
the candidate or the authorized committees of 
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the candidate during the election cycle which is 
not a qualified grassroots contribution. 
‘‘(2) 
EXPANSION
OF
OTHER
DISCLOSURE 
STATEMENTS.—An authorized committee may meet 
the requirements of paragraph (1) by modifying the 
information it provides to persons making contribu-
tions which is otherwise required under title III (in-
cluding information it provides through the Inter-
net). 
‘‘Subtitle B—Eligibility and 
Certification 
‘‘SEC. 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 require-
ments: 
‘‘(1) During the election cycle for the office in-
volved, the candidate files with the Commission a 
statement of intent to seek certification as a partici-
pating candidate, and specifies in the statement 
whether the candidate intends to seek certification 
as a Tier 1 candidate or a Tier 2 candidate. 
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‘‘(2) Each authorized committee of the can-
didate provides the information required under sec-
tion 503(d). 
‘‘(3) The candidate meets the qualifying re-
quirements of section 512. 
‘‘(4) Not later than the last day of the Grass-
roots Democracy qualifying period, the candidate 
files with the Commission an affidavit signed by the 
candidate and the treasurer of the candidate’s prin-
cipal campaign committee declaring that the can-
didate— 
‘‘(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 partici-
pating candidate for all elections for the office 
that such candidate is seeking during that elec-
tion cycle; and 
‘‘(C) has either qualified or will take steps 
to qualify under State law to be on the ballot. 
‘‘(b) GENERAL ELECTION.—Notwithstanding sub-
section (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 
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for the general election or the candidate is otherwise quali-
fied to be on the ballot under State law. 
‘‘(c) GRASSROOTS DEMOCRACY QUALIFYING PERIOD 
DEFINED.—The term ‘Grassroots Democracy qualifying 
period’ means, with respect to any candidate for an office, 
the 240-day period (during the election cycle for such of-
fice) which begins on the date on which the candidate files 
a statement of intent under section 511(a)(1), except that 
such period may not continue after the date that is 30 
days before— 
‘‘(1) the date of the primary election; or 
‘‘(2) in the case of a State that does not hold 
a primary election, the date prescribed by State law 
as the last day to qualify for a position on the gen-
eral election ballot. 
‘‘SEC. 512. QUALIFYING REQUIREMENTS. 
‘‘(a) RECEIPT
OF QUALIFIED GRASSROOTS CON-
TRIBUTIONS.—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 Grassroots Democracy qualifying period de-
scribed in section 511(c), the candidate obtains the fol-
lowing: 
‘‘(1) A single qualified grassroots contribution 
from not fewer than— 
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‘‘(A) in the case of a candidate for the of-
fice of Representative in, or Delegate or Resi-
dent Commissioner to, the Congress, 2,000 in-
dividuals, of whom not fewer than 50 percent 
shall be residents of the Congressional district 
the candidate seeks to represent; or 
‘‘(B) in the case of a candidate for the of-
fice of Senator, a number of individuals equal 
to the sum of 2,000 plus an amount equal to 
the product of 500 and the number of Congres-
sional districts in the State involved, of whom 
not fewer than 50 percent shall be residents of 
the State in which the candidate seeks election. 
‘‘(2) A total dollar amount of qualified grass-
roots contributions equal to or greater than— 
‘‘(A) in the case of a candidate for the of-
fice of Representative in, or Delegate or Resi-
dent Commissioner to, the Congress, $50,000; 
or 
‘‘(B) in the case of a candidate for the of-
fice of Senator, the sum of $200,000 plus an 
amount equal to the product of $25,000 and 
the number of Congressional districts in the 
State involved. 
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‘‘(b) REQUIREMENTS RELATING
TO RECEIPT
OF 
QUALIFIED GRASSROOTS CONTRIBUTION.—Each quali-
fied grassroots contribution— 
‘‘(1) may be made by means of a personal 
check, money order, debit card, credit card, elec-
tronic payment account, or text message; 
‘‘(2) shall be accompanied by a signed state-
ment (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 con-
tributor’s address in the State in which the pri-
mary residence of the contributor is located, 
and 
‘‘(B) an oath declaring that the contrib-
utor— 
‘‘(i) understands that the purpose of 
the contribution is to show support for the 
candidate so that the candidate may qual-
ify for Grassroots Democracy financing, 
‘‘(ii) is making the contribution in his 
or her own name and from his or her own 
funds, 
‘‘(iii) has made the contribution will-
ingly, and 
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‘‘(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 elec-
tronic form) kept by the candidate for the Commis-
sion 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
GRASSROOTS 
CONTRIBUTIONS.—The Commission shall establish proce-
dures for the auditing and verification of qualified grass-
roots contributions to ensure that such contributions meet 
the requirements of this section. 
‘‘(d) PROHIBITING PAYMENT ON COMMISSION BASIS 
OF INDIVIDUALS COLLECTING QUALIFIED GRASSROOTS 
CONTRIBUTIONS.—No person may be paid a commission 
on a per contribution basis for collecting qualified grass-
roots contributions. 
‘‘SEC. 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— 
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‘‘(A) determine whether or not the can-
didate 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 Tier 1 can-
didate or a participating Tier 2 candidate; and 
‘‘(C) notify the candidate of the Commis-
sion’s determination. 
‘‘(2) DEEMED CERTIFICATION FOR ALL ELEC-
TIONS IN ELECTION CYCLE.—If the Commission cer-
tifies a candidate as a participating Tier 1 candidate 
or a participating Tier 2 candidate with respect to 
the first election of the election cycle involved, the 
Commissioner shall be deemed to have certified the 
candidate as such a participating candidate with re-
spect to all subsequent elections of the election cycle. 
‘‘(b) REVOCATION OF CERTIFICATION.— 
‘‘(1) IN GENERAL.—The Commission may re-
voke a certification under subsection (a) if— 
‘‘(A) a candidate fails to qualify to appear 
on the ballot at any time after the date of cer-
tification (other than a candidate certified as a 
participating candidate with respect to a pri-
mary election who fails to qualify to appear on 
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the ballot for a subsequent election in that elec-
tion cycle); or 
‘‘(B) a candidate otherwise fails to comply 
with the requirements of this title, including 
any regulatory requirements prescribed by the 
Commission. 
‘‘(2) EFFECT
OF
REVOCATION.—If a can-
didate’s certification is revoked under paragraph 
(1)— 
‘‘(A) the candidate shall repay to the 
Grassroots Democracy Fund established under 
section 541 an amount equal to the payments 
received under this title with respect to the elec-
tion cycle involved plus interest (at a rate deter-
mined by the Commission) on any such amount 
received; 
‘‘(B) the candidate may not receive pay-
ments 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. 
‘‘(3) PROHIBITING PARTICIPATION IN FUTURE 
ELECTIONS FOR CANDIDATES WITH MULTIPLE REV-
OCATIONS.—If the Commission revokes the certifi-
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cation 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) PARTICIPATING CANDIDATE DEFINED.—In this 
title, a ‘participating candidate’ means a candidate for the 
office of Senator or Representative in, or Delegate or Resi-
dent Commissioner to, the Congress who is certified under 
this section as eligible to receive benefits under this title. 
‘‘Subtitle C—Requirements for Can-
didates 
Certified 
as 
Partici-
pating Candidates 
‘‘SEC. 521. CONTRIBUTION AND EXPENDITURE REQUIRE-
MENTS. 
‘‘(a) PERMITTED SOURCES OF CONTRIBUTIONS AND 
EXPENDITURES.— 
‘‘(1) TIER 1 CANDIDATES.—Except as provided 
in subsection (c), a participating candidate who is 
certified as a Tier 1 candidate with respect to an 
election shall, with respect to all elections occurring 
during the election cycle for the office involved, ac-
cept no contributions from any source and make no 
expenditures from any amounts, other than the fol-
lowing: 
‘‘(A) Qualified grassroots contributions. 
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‘‘(B) Payments under this title. 
‘‘(C) Contributions from political commit-
tees established and maintained by a national 
or State political party. 
‘‘(D) Subject to subsection (b), personal 
funds of the candidate or of any immediate 
family member of the candidate (other than 
funds received through qualified grassroots con-
tributions). 
‘‘(E) Subject to subsection (e), contribu-
tions from individuals who are otherwise per-
mitted to make contributions under this Act. 
‘‘(2) TIER 2 CANDIDATES.—Except as provided 
in subsection (c), a participating candidate who is 
certified as a Tier 2 candidate with respect to an 
election shall, with respect to all elections occurring 
during the election cycle for the office involved, ac-
cept no contributions from any source and make no 
expenditures from any amounts, other than the fol-
lowing: 
‘‘(A) Qualified grassroots contributions. 
‘‘(B) Payments under this title. 
‘‘(C) Contributions from political commit-
tees established and maintained by a national 
or State political party. 
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‘‘(D) Subject to subsection (b), personal 
funds of the candidate or of any immediate 
family member of the candidate (other than 
funds received through qualified grassroots con-
tributions). 
‘‘(b) SPECIAL RULES FOR PERSONAL FUNDS.— 
‘‘(1) LIMIT ON AMOUNT.—A candidate who is 
certified as a participating candidate may use per-
sonal funds (including personal funds of any imme-
diate family member of the candidate) so long as— 
‘‘(A) the amount used with respect to the 
election cycle does not exceed $50,000; and 
‘‘(B) the funds are used only for making 
direct payments for the receipt of goods and 
services which constitute authorized expendi-
tures in connection with the election cycle in-
volved. 
‘‘(2) IMMEDIATE FAMILY MEMBER DEFINED.— 
In this subsection, the term ‘immediate family’ 
means, with respect to a candidate— 
‘‘(A) the candidate’s spouse; 
‘‘(B) a child, stepchild, parent, grand-
parent, brother, half-brother, sister, or half-sis-
ter of the candidate or the candidate’s spouse; 
and 
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‘‘(C) the spouse of any person described in 
subparagraph (B). 
‘‘(c) EXCEPTIONS.— 
‘‘(1) EXCEPTION
FOR
CONTRIBUTIONS
RE-
CEIVED PRIOR TO FILING OF STATEMENT OF IN-
TENT.—A candidate who has accepted contributions 
that are not described in paragraph (1) of sub-
section (a) (in the case of a Tier 1 candidate) or in 
paragraph (2) of subsection (a) (in the case of a 
Tier 2 candidate) prior to the date the candidate 
files a statement of intent under section 511(a)(1) 
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 de-
posit in the Grassroots Democracy Fund estab-
lished under section 541; 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 sec-
tion 511(a)(1) that the candidate is prohibited from 
making under subsection (a) or subsection (b), the 
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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 grassroots contributions which the can-
didate 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 the 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
RE-
CEIVED
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 
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(3), and expenditures made shall count against the 
limit in paragraph (2). 
‘‘(d) SPECIAL RULE FOR COORDINATED PARTY EX-
PENDITURES.—For purposes of this section, a payment 
made by a political party in coordination with a partici-
pating candidate shall not be treated as a contribution to 
or as an expenditure made by the participating candidate. 
‘‘(e) PHASE-OUT
OF AMOUNT
OF PRIVATE CON-
TRIBUTIONS THAT MAY BE ACCEPTED BY TIER 1 CAN-
DIDATES.—With respect to an election cycle occurring 
after the first 3 election cycles for which this title is in 
effect, the amount of a contribution that may be accepted 
from an individual by a participating candidate who is cer-
tified as a Tier 1 candidate may not exceed the following: 
‘‘(1) For the fourth election cycle for which this 
title is in effect, an amount equal to 60% of the lim-
itation on the amount of a contribution which a can-
didate may accept from an individual for such cycle 
under section 315(a)(1). 
‘‘(2) For the fifth election cycle for which this 
title is in effect, an amount equal to 40% of the lim-
itation on the amount of a contribution which a can-
didate may accept from an individual for such cycle 
under section 315(a)(1). 
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‘‘(3) For the sixth election cycle for which this 
title is in effect and any subsequent election cycle, 
an amount equal to 20% of the limitation on the 
amount of a contribution which a candidate may ac-
cept from an individual for such cycle under section 
315(a)(1). 
‘‘(f) PROHIBITION ON JOINT FUNDRAISING COMMIT-
TEES.— 
‘‘(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 can-
didate 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 re-
ceive any contributions or make any disbursements 
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during the election cycle for which the candidate is 
certified as a participating candidate under this title. 
‘‘SEC. 522. ADMINISTRATION OF CAMPAIGN. 
‘‘(a) USE OF SEPARATE ACCOUNTS FOR VARIOUS 
PERMITTED
CONTRIBUTIONS.—Each authorized com-
mittee of a candidate certified as a participating candidate 
under this title— 
‘‘(1) shall establish a separate account for each 
type of contribution described in paragraph (1) of 
section 521(a) (in the case of a Tier 1 candidate) or 
paragraph (2) of section 521(a) (in the case of a 
Tier 2 candidate) which is received by the com-
mittee, and shall deposit each contribution in the ac-
count established for that type of contribution; and 
‘‘(2) shall establish a separate account for the 
payments received under this title, and shall deposit 
each such payment in that account. 
‘‘(b) ENHANCED REPORTING OF DISBURSEMENTS.— 
In addition to any reports required under section 304, not 
later than 3 months after the end of the election cycle 
involved, each authorized committee of a candidate cer-
tified as a participating candidate under this title shall 
submit a report to the Commission on all disbursements 
made from each separate account established under sub-
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section (a) (in the same manner as the report required 
under section 304(b)(4)). 
‘‘(c) ENHANCED INTERNET DISCLOSURE OF INFOR-
MATION ON DONORS.—Each authorized committee of a 
candidate 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 pub-
lic 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 elec-
tronically with the Commission) in a searchable, sortable, 
and downloadable manner. 
‘‘SEC. 523. PREVENTING UNNECESSARY SPENDING OF PUB-
LIC FUNDS. 
‘‘(a) MANDATORY SPENDING
OF AVAILABLE PRI-
VATE FUNDS.—An authorized committee of a candidate 
certified as a participating candidate under this title may 
not make any expenditure of any payments received under 
this title in any amount unless the committee has made 
an expenditure in an equivalent amount of funds received 
by the committee which are described in— 
‘‘(1) subparagraphs (C), (D), and (E) of para-
graph (1) of section 521(a), in the case of a Tier 1 
candidate; or 
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‘‘(2) subparagraphs (C) and (D) of paragraph 
(2) of section 521(a), in the case of a Tier 2 can-
didate. 
‘‘(b) LIMITATION.—Subsection (a) applies to an au-
thorized committee only to the extent that the funds re-
ferred to in paragraph (1) of such subsection (in the case 
of a Tier 1 candidate) or in paragraph (2) of such sub-
section (in the case of a Tier 2 candidate) are available 
to the committee at the time the committee makes an ex-
penditure of a payment received under this title. 
‘‘SEC. 524. REMITTING UNSPENT FUNDS AFTER ELECTION. 
‘‘(a) REMITTANCE REQUIRED.— 
‘‘(1) IN
GENERAL.—Not later than the date 
that is 60 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 remit to 
the Commission for deposit in the Grassroots De-
mocracy Fund established under section 541 an 
amount equal to the balance of the accounts estab-
lished by the authorized committees of the candidate 
under section 522 for the payments received under 
this title. 
‘‘(2) EXCEPTION FOR TIER 2 CANDIDATES PAR-
TICIPATING
IN
NEXT
CYCLE.—Notwithstanding 
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paragraph (1), a Tier 2 candidate may withhold not 
more than $50,000 from the amount required to be 
remitted under paragraph (1) if the candidate files 
a signed affidavit with the Commission that the can-
didate will seek certification as a Tier 2 candidate 
with respect to the next election cycle. If the can-
didate fails to seek certification as a Tier 2 can-
didate prior to the last day of the Grassroots De-
mocracy qualifying period for the next election cycle 
(as described in section 511), or if the Commission 
notifies the candidate of the Commission’s deter-
mination does not meet the requirements for certifi-
cation as a Tier 2 candidate with respect to such 
cycle, the candidate shall immediately remit to the 
Commission the amount withheld. 
‘‘(b) EXCEPTION
FOR EXPENDITURES INCURRED 
BUT NOT PAID AS OF DATE OF REMITTANCE.— 
‘‘(1) IN GENERAL.—A candidate may withhold 
from the amount required to be remitted under sub-
section (a) the amount of any authorized expendi-
tures which were incurred in connection with the 
candidate’s campaign but which remain unpaid as of 
the deadline applicable to the candidate under such 
subsection, except that any amount withheld pursu-
ant to this paragraph shall be remitted to the Com-
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mission not later than 120 days after the date of the 
election to which such subsection applies. 
‘‘(2) DOCUMENTATION
REQUIRED.—A can-
didate may withhold an amount of an expenditure 
pursuant to paragraph (1) only if the candidate sub-
mits documentation of the expenditure and the 
amount to the Commission not later than the dead-
line applicable to the candidate under subsection (a). 
‘‘Subtitle D—Supplemental Grass-
roots Democracy People’s Fund 
Payments 
‘‘SEC. 531. ELIGIBILITY OF PARTICIPATING CANDIDATES 
FOR PAYMENTS. 
‘‘(a) PAYMENTS TO CANDIDATES.—In addition to the 
payments made under subtitle A, a candidate certified as 
a participating candidate under this title with respect to 
an election shall be entitled to a supplemental Grassroots 
Democracy People’s Fund payment from the Grassroots 
Democracy Fund each time during the election cycle that 
the Commission issues a determination under subsection 
(b) that the outside speech threshold with respect to the 
election has been reached. 
‘‘(b) OUTSIDE SPEECH THRESHOLD.— 
‘‘(1) DETERMINATIONS BY COMMISSION.— 
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‘‘(A) IN GENERAL.—For purposes of this 
section, the Commission shall issue a deter-
mination that the outside speech threshold with 
respect to an election is reached each time dur-
ing the election cycle that the Commission de-
termines that the amount disbursed for political 
activity with respect to the election exceeds— 
‘‘(i) the House threshold, in the case 
of an election for the office of Representa-
tive in, or Delegate or Resident Commis-
sioner to, the Congress; or 
‘‘(ii) the Senate threshold, in the case 
of an election for the office of Senator. 
‘‘(B) EXCLUSION OF CERTAIN DISBURSE-
MENTS.—For purposes of subparagraph (A), in 
determining the amount disbursed for political 
activity with respect to an election, there shall 
be excluded— 
‘‘(i) disbursements made by any au-
thorized committee of a candidate; and 
‘‘(ii) disbursements made by a polit-
ical committee of a national political party. 
‘‘(C) INCLUSION OF AMOUNTS SPENT ON 
NON-CANDIDATE-SPECIFIC ADVERTISEMENTS.— 
In determining the amount disbursed for polit-
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ical activity with respect to an election under 
subparagraph (A), there shall be included any 
amount disbursed for a political advertisement 
described in subsection (c)(3). 
‘‘(2) SUBSEQUENT
DETERMINATIONS
AFTER 
THRESHOLD
IS
FIRST
REACHED.—After the first 
time during the election cycle that the Commission 
issues a determination under paragraph (1) that the 
outside speech threshold with respect to an election 
has been reached, any subsequent determination as 
to whether the threshold has been reached shall be 
made only on the basis of disbursements made after 
the most recent such determination issued by the 
Commission. 
‘‘(3) HOUSE THRESHOLD.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(A), the ‘House threshold’ with re-
spect to an election is an amount equal to the 
product of the adjusted baseline amount under 
subparagraph (B) and the number of can-
didates in the election. 
‘‘(B) ADJUSTED BASELINE AMOUNT.—For 
purposes of subparagraph (A), the ‘adjusted 
baseline amount’ with respect to an election is 
an amount equal to the product of $250,000 
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and an adjustment factor applied by the Com-
mission to take into account the relative media- 
related costs of political activity in the Congres-
sional district involved as compared to the aver-
age of such costs among all Congressional dis-
tricts. 
‘‘(C) 
EXCLUSION
OF
CERTAIN
CAN-
DIDATES.—For purposes of subparagraph (A), 
in determining the number of candidates in an 
election, there shall be excluded any candidate 
who is determined by the Commission to be a 
minor candidate, in accordance with such cri-
teria as the Commission shall by regulation es-
tablish, taking into account the amount of 
funds raised and expended by the candidate, 
the candidate’s ability to qualify for the ballot, 
and such other factors as the Commission con-
siders appropriate. 
‘‘(4) SENATE THRESHOLD.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(A), the ‘Senate threshold’ with re-
spect to an election is an amount equal to the 
product of the adjusted baseline amount under 
subparagraph (B) and the number of can-
didates in the election. 
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‘‘(B) ADJUSTED BASELINE AMOUNT.—For 
purposes of subparagraph (A), the ‘adjusted 
baseline amount’ with respect to an election is 
an amount equal to the product of— 
‘‘(i) the sum of $250,000 plus the 
product of $100,000 and the number of 
Congressional districts in the State in-
volved; and 
‘‘(ii) an adjustment factor applied by 
the Commission to take into account the 
relative media-related costs of political ac-
tivity in the State involved as compared to 
the average of such costs among all States. 
‘‘(C) 
EXCLUSION
OF
CERTAIN
CAN-
DIDATES.—For purposes of subparagraph (A), 
in determining the number of candidates in an 
election, there shall be excluded any candidate 
who is determined by the Commission to be a 
minor candidate, in accordance with such cri-
teria as the Commission shall by regulation es-
tablish, taking into account the amount of 
funds raised and expended by the candidate, 
the candidate’s ability to qualify for the ballot, 
and such other factors as the Commission con-
siders appropriate. 
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‘‘(c) POLITICAL ACTIVITY DEFINED.—In this sec-
tion, ‘political activity’ means, with respect to an election, 
any of the following: 
‘‘(1) A publicly disseminated communication 
consisting of an independent expenditure (as defined 
in section 301(17)) which advocates the election or 
defeat of a candidate in the election. 
‘‘(2) A publicly disseminated communication 
consisting of an electioneering communication (as 
defined in section 304(f)) which refers to a can-
didate in the election. 
‘‘(3) A publicly disseminated communication 
consisting of a communication which refers to the 
political party of a candidate in the election and 
which would be treated as an electioneering commu-
nication (as defined in section 304(f)) if it referred 
to a clearly identified candidate for Federal office. 
‘‘(4) Voter registration, voter identification, get- 
out-the-vote, and other related activity carried out in 
connection with the election. 
‘‘SEC. 532. AMOUNT OF PAYMENT; USE OF FUNDS. 
‘‘(a) AMOUNT.—The amount of the supplemental 
Grassroots Democracy People’s Fund payment made to a 
candidate under this subtitle shall be equal to 100 percent 
of the aggregate amount of qualified grassroots donations 
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received by the candidate, as reported in the most recent 
request for a payment under this title which has been sub-
mitted by the candidate under section 502 at the time the 
Commission issues a determination under section 541(b). 
‘‘(b) USE OF FUNDS.—A candidate shall use the sup-
plemental payment under this subtitle only for authorized 
expenditures in connection with the election cycle involved. 
‘‘SEC. 533. SEVERABILITY. 
‘‘If any provision of this subtitle, or the application 
of a provision of this subtitle to any person or cir-
cumstance, is held to be unconstitutional, the remainder 
of this title, and the application of the provisions to any 
person or circumstance, shall not be affected by the hold-
ing. 
‘‘Subtitle E—Administrative 
Provisions 
‘‘SEC. 541. GRASSROOTS DEMOCRACY FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury a fund to be known as the ‘Grassroots Democ-
racy Fund’. 
‘‘(b) AMOUNTS HELD BY FUND.—The Fund shall 
consist of the following amounts: 
‘‘(1) APPROPRIATED AMOUNTS.—Amounts ap-
propriated to the Fund, including trust fund 
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amounts appropriated pursuant to applicable provi-
sions of the Internal Revenue Code of 1986. 
‘‘(2) VOLUNTARY CONTRIBUTIONS.—Voluntary 
contributions to the Fund. 
‘‘(3) OTHER
DEPOSITS.—Amounts deposited 
into the Fund under— 
‘‘(A) section 6098 of the Internal Revenue 
Code of 1986 (relating to contributions to 
Grassroots Democracy Fund); 
‘‘(B) section 521(c) (relating to exceptions 
to contribution requirements); 
‘‘(C) section 523 (relating to remittance of 
unused payments from the Fund); 
‘‘(D) section 544 (relating to violations); 
and 
‘‘(E) any other section of this Act. 
‘‘(4) 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) 
of the Internal Revenue Code of 1986. 
‘‘(d) USE OF FUND.— 
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‘‘(1) IN
GENERAL.—The sums in the Fund 
shall be used to make payments to participating can-
didates as provided in this title. 
‘‘(2) INSUFFICIENT AMOUNTS.—Under regula-
tions established by the Commission, rules similar to 
the rules of section 9006(c) of the Internal Revenue 
Code of 1986 shall apply. 
‘‘SEC. 542. GRASSROOTS DEMOCRACY ADVISORY COMMIS-
SION. 
‘‘(a) ESTABLISHMENT.—There is established within 
the Federal Election Commission an entity to be known 
as the ‘Grassroots Democracy Advisory Commission’ (in 
this title referred to as the ‘Advisory Commission’). 
‘‘(b) STRUCTURE AND MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The Advisory Commission 
shall be composed of 5 members appointed by the 
President with the advice and consent of the Senate, 
of whom— 
‘‘(A) 2 shall be appointed after consulta-
tion with the Majority Leader of the House of 
Representatives; 
‘‘(B) 2 shall be appointed after consulta-
tion with the Minority Leader of the House of 
Representatives; and 
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‘‘(C) 1 shall be appointed upon the rec-
ommendation of the members appointed under 
subparagraphs (A) and (B). 
‘‘(2) QUALIFICATIONS.— 
‘‘(A) IN GENERAL.—The members shall be 
individuals who by reason of their education, 
experience, and attainments, are exceptionally 
qualified to perform the duties of members of 
the Advisory Commission. 
‘‘(B) PROHIBITION.—No member of the 
Advisory Commission may be— 
‘‘(i) an employee of the Federal gov-
ernment; 
‘‘(ii) a registered lobbyist or an indi-
vidual who was a registered lobbyist at any 
time during the 2-year period preceding 
appointment to the Advisory Commission; 
or 
‘‘(iii) an officer or employee of a polit-
ical party or political campaign. 
‘‘(3) DATE.—Members of the Advisory Commis-
sion shall be appointed not later than 60 days after 
the date of the enactment of this Act. 
‘‘(4) TERMS.—A member of the Advisory Com-
mission shall be appointed for a term of 5 years. 
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‘‘(5) VACANCIES.—A vacancy on the Advisory 
Commission shall be filled not later than 30 calendar 
days after the date on which the Advisory Commis-
sion is given notice of the vacancy, in the same man-
ner as the original appointment. The individual ap-
pointed to fill the vacancy shall serve only for the 
unexpired portion of the term for which the individ-
ual’s predecessor was appointed. 
‘‘(6) CHAIRPERSON.—The Advisory Commission 
shall designate a Chairperson from among the mem-
bers of the Board. 
‘‘(c) DUTIES AND POWERS.— 
‘‘(1) ADMINISTRATION.—The Advisory Commis-
sion shall have such duties and powers as the Com-
mission may prescribe, including the power to ad-
minister the provisions of this title. 
‘‘(2) REVIEW OF GRASSROOTS DEMOCRACY FI-
NANCING.— 
‘‘(A) IN GENERAL.—After each regularly 
scheduled general election for Federal office, 
the Advisory Commission shall conduct a com-
prehensive review of the Grassroots Democracy 
financing program under this title, including— 
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‘‘(i) the maximum and minimum dol-
lar amounts of qualified grassroots con-
tributions under section 504; 
‘‘(ii) the number and value of quali-
fied grassroots contributions a candidate is 
required to obtain under section 512(a) to 
be eligible for certification as a partici-
pating candidate; 
‘‘(iii) the maximum amount of pay-
ments a candidate may receive under this 
title; 
‘‘(iv) the overall satisfaction of partici-
pating candidates and the American public 
with the program; and 
‘‘(v) such other matters relating to fi-
nancing of campaigns as the Advisory 
Commission determines are appropriate. 
‘‘(B) CRITERIA
FOR
REVIEW.—In con-
ducting the review under subparagraph (A), the 
Advisory Commission shall consider the fol-
lowing: 
‘‘(i) QUALIFIED
GRASSROOTS
CON-
TRIBUTIONS.—The Advisory Commission 
shall consider whether the number and dol-
lar amounts of qualified grassroots con-
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tributions required strikes a balance re-
garding the importance of voter involve-
ment, the need to assure adequate incen-
tives for participating, and fiscal responsi-
bility, taking into consideration the num-
ber of primary and general election partici-
pating candidates, the electoral perform-
ance of those candidates, program cost, 
and any other information the Advisory 
Commission determines is appropriate. 
‘‘(ii) REVIEW OF PAYMENT LEVELS.— 
The Advisory Commission shall consider 
whether the totality of the amount of 
funds allowed to be raised by participating 
candidates (including through qualified 
grassroots contributions) and payments 
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 Advi-
sory Commission determines is appro-
priate. 
‘‘(C) ADJUSTMENT OF AMOUNTS.— 
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‘‘(i) IN GENERAL.—Based on the re-
view conducted under subparagraph (A), 
the Advisory Commission shall provide for 
the adjustments of the following amounts: 
‘‘(I) The maximum and minimum 
dollar amounts of qualified grassroots 
contributions under section 504. 
‘‘(II) The number and value of 
qualified grassroots contributions a 
candidate is required to obtain under 
section 512(a) to be eligible for cer-
tification as a participating candidate. 
‘‘(III) The maximum amount of 
payments may receive under this title. 
‘‘(ii) REGULATIONS.—The Commis-
sion shall promulgate regulations providing 
for the adjustments made by the Advisory 
Commission under clause (i). 
‘‘(D) REVIEW OF GRASSROOTS DEMOCRACY 
PEOPLE’S FUND PROGRAM.—After each regu-
larly scheduled general election for Federal of-
fice, the Advisory Commission shall conduct a 
comprehensive review of the program for mak-
ing supplemental Grassroots Democracy Peo-
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ple’s Fund payments under subtitle D, and 
shall include in the review the following: 
‘‘(i) A review of the outside speech 
threshold established under section 531(b), 
including the amounts used to determine 
the House threshold under paragraph (3) 
of such section and the Senate threshold 
under paragraph (4) of such section. 
‘‘(ii) The effectiveness of the adjust-
ment factors applied by the Commission 
under section 531(b) to take into account 
the relative media-related costs of political 
activity in Congressional districts and 
States. 
‘‘(iii) The overall satisfaction of par-
ticipating candidates and the American 
public with the Program. 
‘‘(iv) Such other matters relating to 
the making of payments under such sub-
title as the Advisory Commission deter-
mines are appropriate. 
‘‘(E) REPORT.—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 Advisory Com-
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mission shall submit a report to Congress on 
the review conducted under this paragraph. 
Such report shall contain a detailed statement 
of the findings, conclusions, and recommenda-
tions of the Advisory Commission based on such 
review. 
‘‘(d) MEETINGS AND HEARINGS.— 
‘‘(1) MEETINGS.—The Advisory Commission 
may hold such hearings, sit and act at such times 
and places, take such testimony, and receive such 
evidence as the Advisory Commission considers ad-
visable to carry out the purposes of this Act. 
‘‘(2) QUORUM.—Three members of the Advi-
sory Commission shall constitute a quorum for pur-
poses of voting, but a quorum is not required for 
members to meet and hold hearings. 
‘‘(e) 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 
Advisory Commission shall submit to the Committee on 
House Administration of the House of Representatives a 
report documenting, evaluating, and making recommenda-
tions relating to the administrative implementation and 
enforcement of the provisions of this title. 
‘‘(f) ADMINISTRATION.— 
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‘‘(1) COMPENSATION OF MEMBERS.— 
‘‘(A) IN GENERAL.—Each member, other 
than the Chairperson, shall be paid at a rate 
equal to the daily equivalent of the minimum 
annual rate of basic pay prescribed for level IV 
of the Executive Schedule under section 5315 
of title 5, United States Code. 
‘‘(B) 
CHAIRPERSON.—The 
Chairperson 
shall be paid at a rate equal to the daily equiva-
lent of the minimum annual rate of basic pay 
prescribed for level III of the Executive Sched-
ule under section 5314 of title 5, United States 
Code. 
‘‘(2) PERSONNEL.— 
‘‘(A) DIRECTOR.—The Advisory Commis-
sion shall have a staff headed by an Executive 
Director. The Executive Director shall be paid 
at a rate equivalent to a rate established for the 
Senior Executive Service under section 5382 of 
title 5, United States Code. 
‘‘(B) STAFF APPOINTMENT.—With the ap-
proval of the Chairperson, the Executive Direc-
tor may appoint such personnel as the Execu-
tive Director and the Advisory Commission de-
termines to be appropriate. 
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‘‘(C) EXPERTS AND CONSULTANTS.—With 
the approval of the Chairperson, the Executive 
Director may procure temporary and intermit-
tent services under section 3109(b) of title 5, 
United States Code. 
‘‘(D) DETAIL OF GOVERNMENT EMPLOY-
EES.—Upon the request of the Chairperson, the 
head of any Federal agency may detail, without 
reimbursement, any of the personnel of such 
agency to the Advisory Commission to assist in 
carrying out the duties of the Advisory Com-
mission. Any such detail shall not interrupt or 
otherwise affect the civil service status or privi-
leges of the Federal employee. 
‘‘(E) OTHER
RESOURCES.—The Advisory 
Commission shall have reasonable access to ma-
terials, resources, statistical data, and other in-
formation from the Library of Congress and 
other agencies of the executive and legislative 
branches of the Federal Government. The 
Chairperson of the Advisory Commission shall 
make requests for such access in writing when 
necessary. 
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‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out the purposes of this subtitle. 
‘‘SEC. 543. ADMINISTRATION BY COMMISSION. 
‘‘The Commission shall prescribe regulations to carry 
out the purposes of this title, including regulations— 
‘‘(1) to establish procedures for— 
‘‘(A) verifying the amount of qualified 
grassroots contributions with respect to a can-
didate, 
‘‘(B) effectively and efficiently monitoring 
and enforcing the limits on the raising of quali-
fied grassroots contributions, 
‘‘(C) effectively and efficiently monitoring 
and enforcing the limits on the use of personal 
funds by participating candidates, and 
‘‘(D) monitoring the use of allocations 
from the Grassroots Democracy Fund estab-
lished under section 541 and matching con-
tributions under this title through audits 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; 
and 
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‘‘(2) regarding the conduct of debates in a man-
ner consistent with the best practices of States that 
provide public financing for elections. 
‘‘SEC. 544. 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 
accepts a contribution or makes an expenditure that is 
prohibited under section 521, the Commission shall 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 deposited into the Grassroots Democracy 
Fund established under section 541. 
‘‘(b) REPAYMENT FOR IMPROPER USE OF GRASS-
ROOTS DEMOCRACY FUND.— 
‘‘(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 Fund an amount 
equal to— 
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‘‘(A) the amount of payments so used or 
not remitted, as appropriate; 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 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. 
‘‘SEC. 545. ELECTION CYCLE DEFINED. 
‘‘In this title, the term ‘election cycle’ means, with 
respect to an election for an office, the period beginning 
on the day after the date of the most recent general elec-
tion for that office (or, if the general election resulted in 
a runoff election, the date of the runoff election) and end-
ing on the date of the next general election for that office 
(or, if the general election resulted in a runoff election, 
the date of the runoff election).’’. 
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SEC. 202. PROHIBITING USE OF CONTRIBUTIONS BY PAR-
TICIPATING 
CANDIDATES 
FOR 
PURPOSES 
OTHER THAN CAMPAIGN FOR ELECTION. 
Section 313 of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 439a) is amended by adding at the end 
the following new subsection: 
‘‘(d) RESTRICTIONS ON PERMITTED USES OF FUNDS 
BY CANDIDATES RECEIVING GRASSROOTS DEMOCRACY 
FINANCING.—Notwithstanding paragraphs (2), (3), or (4) 
of subsection (a), if a candidate for election for the office 
of Representative in, or Delegate or Resident Commis-
sioner to, the Congress is certified as a participating can-
didate under title V with respect to the election, any con-
tribution 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 of-
fice.’’. 
TITLE III—OTHER 
ADMINISTRATIVE REFORMS 
SEC. 
301. 
EXPANDING 
REQUIREMENT 
TO 
DISCLOSE 
BUNDLERS WHO ARE REGISTERED LOBBY-
ISTS TO ALL BUNDLERS. 
(a) EXPANDING BUNDLER DISCLOSURE REQUIRE-
MENTS TO ALL BUNDLERS.—Section 304(i)(1) of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 
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434(i)(1)) is amended by striking ‘‘reasonably known by 
the committee to be a person described in paragraph (7)’’. 
(b) CONFORMING AMENDMENTS.—Section 304(i) of 
such Act (2 U.S.C. 434(i)) is amended— 
(1) in paragraph (2)(C), by striking ‘‘described 
in paragraph (7)’’; 
(2) in paragraph (3)(A), by striking ‘‘a person 
described in paragraph (7)’’ and inserting ‘‘any per-
son’’; 
(3) in paragraph (5)— 
(A) by striking subparagraph (B) and re-
designating subparagraphs (C) and (D) as sub-
paragraphs (B) and (C), 
(B) in subparagraph (B) (as so redesig-
nated), by striking ‘‘described in paragraph 
(7)’’, and 
(C) in subparagraph (C) (as so redesig-
nated), by striking ‘‘by persons described in 
paragraph (7)’’; 
(4) by striking paragraph (7) and redesignating 
paragraph (8) as paragraph (7); and 
(5) in paragraph (7)(A) (as so redesignated), by 
striking ‘‘a person described in paragraph (7),’’ and 
inserting ‘‘a person,’’. 
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SEC. 302. EXPANSION OF PERIOD FOR TREATMENT OF 
COMMUNICATIONS 
AS 
ELECTIONEERING 
COMMUNICATIONS. 
(a) EXPANSION
OF PERIOD COVERING GENERAL 
ELECTION.—Section 304(f)(3)(A)(I)(II)(aa) of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 
434(f)(3)(A)(I)(II)(aa)) is amended by striking ‘‘60 days’’ 
and inserting ‘‘120 days’’. 
(b) EFFECTIVE DATE; TRANSITION
FOR COMMU-
NICATIONS MADE PRIOR TO ENACTMENT.—The amend-
ment made by subsection (a) shall apply with respect to 
communications made on or after the date of the enact-
ment of this Act, without regard to whether or not the 
Federal Election Commission has promulgated regulations 
to carry out such amendments, except that no communica-
tion which is made prior to the date of the enactment of 
this Act shall be treated as an electioneering communica-
tion under section 304(f)(3)(A)(I)(II) of the Federal Elec-
tion Campaign Act of 1971 (as amended by subsection 
(a)) unless the communication would be treated as an elec-
tioneering communication under such section if the 
amendment made by subsection (a) did not apply. 
SEC. 303. USER FEES FOR COMMITTEES AND BUNDLERS. 
(a) POLITICAL COMMITTEES.—Section 303 of the 
Federal Election Campaign Act of 1971 (2 U.S.C. 433) 
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is amended by adding at the end the following new sub-
section: 
‘‘(e) USER FEE.— 
‘‘(1) PAYMENT.—At the time a political com-
mittee files the statement of organization required 
under subsection (a), and annually thereafter until 
the termination of the committee, the committee 
shall pay a user fee to the Commission in an amount 
equal to $100. 
‘‘(2) EXCEPTION
FOR
CANDIDATE
COMMIT-
TEES.—Paragraph (1) does not apply in the case of 
a political committee which is an authorized com-
mittee of a candidate. 
‘‘(3) USE OF FUNDS.—The amounts received by 
the Commission under this subsection shall be used 
to support the administration of the Grassroots De-
mocracy Advisory Commission under section 542.’’. 
(b) BUNDLERS.—Title III of such Act (2 U.S.C. 431 
et seq.) is amended by inserting after section 303 the fol-
lowing new section: 
‘‘USER FEES FOR BUNDLERS OF CONTRIBUTIONS 
‘‘SEC. 303A. (a) USER FEE REQUIRED.—A person 
may not provide a bundled contribution to a political com-
mittee during a year unless the person has paid a user 
fee to the Commission during the year in an amount equal 
to $100. 
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‘‘(b) USE OF FUNDS.—The amounts received by the 
Commission under this subsection shall be used to support 
the administration of the Grassroots Democracy Advisory 
Commission under section 542. 
‘‘(c) BUNDLED CONTRIBUTION DEFINED.—In this 
section, the term ‘bundled contribution’ has the meaning 
given such term in section 304(i)(7).’’. 
SEC. 304. PETITION FOR CERTIORARI. 
Section 307(a)(6) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 437d(a)(6)) is amended by insert-
ing ‘‘(including a proceeding before the Supreme Court on 
certiorari)’’ after ‘‘appeal’’. 
SEC. 305. FILING BY ALL CANDIDATES WITH COMMISSION. 
Section 302(g) of the Federal Election Campaign Act 
of 1971 (2 U.S.C. 432(g)) is amended to read as follows: 
‘‘(g) FILING WITH THE COMMISSION.—All designa-
tions, statements, and reports required to be filed under 
this Act shall be filed with the Commission.’’. 
SEC. 306. ELECTRONIC FILING OF FEC REPORTS. 
Section 304(a)(11) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 434(a)(11)) is amended— 
(1) in subparagraph (A), by striking ‘‘under 
this Act—’’ and all that follows and inserting 
‘‘under this Act shall be required to maintain and 
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file such designation, statement, or report in elec-
tronic form accessible by computers.’’; 
(2) in subparagraph (B), by striking ‘‘48 
hours’’ and all that follows through ‘‘filed electroni-
cally)’’ and inserting ‘‘24 hours’’; and 
(3) by striking subparagraph (D). 
SEC. 307. EFFECTIVE DATE. 
Except as provided in section 302(b), the amend-
ments made by this title shall apply with respect to reports 
filed on or after the date of the enactment of this Act. 
TITLE IV—OFFSETS 
SEC. 401. REFORM OF TAX RULES RELATED TO POLITICAL 
ORGANIZATIONS. 
(a) DECOUPLING OF RATE OF TAX ON POLITICAL 
ORGANIZATIONS FROM CORPORATE TAX RATE.—Sub-
section (b) of section 527 of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking all that precedes ‘‘A tax is here-
by imposed’’ and inserting the following: 
‘‘(b) TAX IMPOSED.—’’, 
(2) by striking paragraph (2), and 
(3) by striking ‘‘the highest rate of tax specified 
in section 11(b)’’ and inserting ‘‘35 percent’’. 
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(b) REPEAL OF EXEMPTIONS FOR PROCEEDS FROM 
MERCHANDISE
AND ENTERTAINMENT EVENTS.—Para-
graph (3) of section 527(c) of such Code is amended— 
(1) by adding ‘‘or’’ at the end of subparagraph 
(A), 
(2) by striking the comma at the end of sub-
paragraph (B) and inserting a period, and 
(3) by striking subparagraphs (C) and (D). 
(c) MODIFICATION OF LIMITATION ON TAX PAID BY 
CHARITABLE
ORGANIZATIONS
ENGAGED
IN
EXEMPT 
FUNCTIONS.—Paragraph (1) of section 527(f) of such 
Code is amended by striking ‘‘equal to the lesser of—’’ 
and all that follows and inserting ‘‘equal to the aggregate 
amount so expended during the taxable year for such an 
exempt function. If such aggregate amount does not ex-
ceed $500,000, the amount included in gross income 
under the preceding sentence shall not exceed the net in-
vestment income of such organization for the taxable 
year.’’. 
(d) REPEAL OF GRADUATED RATES FOR PRINCIPAL 
CAMPAIGN COMMITTEES.—Section 527 of such Code is 
amended by striking subsection (h). 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 402. VOLUNTARY CONTRIBUTIONS TO THE GRASS-
ROOTS DEMOCRACY FUND. 
(a) IN GENERAL.—Subchapter A of chapter 61 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART IX—CONTRIBUTIONS TO GRASSROOTS 
DEMOCRACY FUND 
‘‘Sec. 6098. Contributions to Grassroots Democracy Fund. 
‘‘SEC. 6098. CONTRIBUTIONS TO GRASSROOTS DEMOCRACY 
FUND. 
‘‘(a) IN GENERAL.—Every individual, with respect to 
the taxpayer’s return for the taxable year of the tax im-
posed by chapter 1, may designate that a specified portion 
(not less than $1) of any overpayment of tax shall be con-
tributed to the Grassroots Democracy Fund established 
under section 541 of the Federal Election Campaign Act 
of 1971. 
‘‘(b) MANNER AND TIME OF DESIGNATION.— 
‘‘(1) TIME
OF
DESIGNATION.—A designation 
under subsection (a) may be made with respect to 
any taxable year— 
‘‘(A) at the time of filing the return of the 
tax imposed by chapter 1 for such taxable year, 
or 
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‘‘(B) at any other time (after such time of 
filing) specified in regulations prescribed by the 
Secretary. 
‘‘(2) MANNER
OF
DESIGNATION.—Such des-
ignation shall be made in such manner as the Sec-
retary prescribes by regulations except that, if such 
designation is made at the time of filing the return 
of the tax imposed by chapter 1 for such taxable 
year, such designation shall be made either on the 
first page of the return or on the page bearing the 
taxpayer’s signature. 
‘‘(c) OVERPAYMENTS TREATED AS REFUNDED.—For 
purposes of this title, any portion of an overpayment of 
tax designated under subsection (a) shall be treated as— 
‘‘(1) being refunded to the taxpayer as of the 
last date prescribed for filing the return of tax im-
posed by chapter 1 (determined without regard to 
extensions) or, if later, the date the return is filed, 
and 
‘‘(2) a contribution made by such taxpayer on 
such date to the United States. 
‘‘(d) ONLINE CONTRIBUTIONS.—The Secretary shall 
establish and maintain a website through which persons 
may make contributions to the Grassroots Democracy 
Fund. Any such contribution shall not be treated as an 
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overpayment of tax but shall be treated as a contribution 
made by such person to the United States.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 61 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new item: 
‘‘PART IX—CONTRIBUTIONS TO GRASSROOTS 
DEMOCRACY FUND’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
TITLE 
V—EXPANDING 
CAN-
DIDATE ACCESS TO ADVER-
TISING 
SEC. 501. BROADCASTS BY OR ON BEHALF OF CANDIDATES. 
(a) USE OF BROADCASTING STATION AT LOWEST 
UNIT CHARGE.—Section 315(b) of the Communications 
Act of 1934 (47 U.S.C. 315(b)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by inserting ‘‘, or by a national committee 
of a political party in connection with such a 
campaign of such a candidate who is affiliated 
with the party,’’ after ‘‘to such office’’; 
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(B) in subparagraph (A), by inserting ‘‘for 
preemptible use thereof’’ after ‘‘station’’; and 
(C) by moving subparagraphs (A) and (B) 
2 ems to the right; and 
(2) in paragraph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘IN GENERAL.—’’ and 
inserting ‘‘CERTIFICATION.—’’; 
(ii) by striking ‘‘the broadcast sta-
tion’’ and inserting ‘‘such station’’; 
(iii) by striking ‘‘In the case of’’ and 
inserting the following: 
‘‘(i) BY
CANDIDATES.—In the case 
of’’; and 
(iv) by adding at the end the fol-
lowing: 
‘‘(ii) BY
PARTY
NATIONAL
COMMIT-
TEES.—In the case of the use of any 
broadcasting station by a national com-
mittee of a political party in connection 
with the campaign of a candidate for Fed-
eral office who is affiliated with the party, 
such committee shall not be entitled to re-
ceive the rate under paragraph (1)(A) for 
such use unless such committee provides 
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written certification to such station that 
such committee shall not make any direct 
reference to another candidate for the 
same office, in any broadcast using the 
rights and conditions of access under this 
Act, unless such reference meets the re-
quirements of subparagraph (C) or (D).’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘subparagraph (A)’’ 
and inserting ‘‘subparagraph (A)(i)’’; 
(ii) by striking ‘‘If a candidate’’ and 
inserting the following: 
‘‘(i) FOR
CANDIDATES.—If a can-
didate’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(ii) FOR PARTY NATIONAL COMMIT-
TEES.—If the national committee of a po-
litical party makes a reference described in 
subparagraph (A)(ii) in any broadcast that 
does not meet the requirements of sub-
paragraph (C) or (D), such national com-
mittee shall not be entitled to receive the 
rate under paragraph (1)(A) for such 
broadcast or any other broadcast in con-
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(2) by redesignating subsection (d) as sub-
section (f); and 
(3) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) PREEMPTION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (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 or national committee of a political party 
that has purchased and paid for such use under cir-
cumstances entitling such candidate or committee to 
receive the rate under such subsection for such use. 
‘‘(2) CIRCUMSTANCES BEYOND CONTROL OF LI-
CENSEE.—If a program to be broadcast by a broad-
casting station is preempted because of cir-
cumstances beyond the control of the licensee, an 
advertisement that is scheduled to be broadcast dur-
ing such program and the broadcast of which con-
stitutes 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 dur-
ing the 60-day period preceding the date of a general elec-
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tion 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 PER-
MIT ACCESS BY FEDERAL CANDIDATES.—Section 312 of 
the Communications Act of 1934 (47 U.S.C. 312) is 
amended— 
(1) in subsection (a)(7)— 
(A) by inserting ‘‘in accordance with sub-
section (h),’’ before ‘‘for willful’’; 
(B) by striking ‘‘or repeated’’; 
(C) by inserting ‘‘or a cable system’’ after 
‘‘non-commercial educational broadcast sta-
tion,’’; and 
(D) by striking ‘‘his candidacy’’ and insert-
ing ‘‘the candidacy of the candidate, or by a na-
tional committee of a political party in connec-
tion with the campaign of a legally qualified 
candidate for Federal elective office who is af-
filiated with the party, under the same terms, 
conditions, and business practices as apply to 
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the most-favored advertiser of the broadcasting 
station or cable system’’; and 
(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 re-
spect to a broadcasting station or cable system has 
been revoked under subsection (a)(7)— 
‘‘(A) the Commission may not grant a sta-
tion license or construction permit to such per-
son 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 sta-
tion license or construction permit to such per-
son after such 5-year period, the number of 
failures described in subsection (a)(7) shall be 
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calculated for purposes of paragraph (1) with-
out regard to any such failures that occurred 
while a previous license or permit was in ef-
fect.’’. 
(d) CONFORMING AMENDMENTS.—Section 315 of the 
Communications Act of 1934, as amended by subsection 
(b), is further amended— 
(1) in subsection (a), by striking ‘‘If any li-
censee’’ and inserting ‘‘EQUAL OPPORTUNITIES FOR 
CANDIDATES FOR SAME OFFICE.—If any licensee’’; 
(2) in subsection (f), as redesignated, by strik-
ing ‘‘The Commission’’ and inserting ‘‘REGULA-
TIONS.—The Commission’’; and 
(3) in subsection (g), as redesignated, by strik-
ing ‘‘For purposes’’ and inserting ‘‘DEFINITIONS.— 
For purposes’’. 
Æ 
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