‘‘(i) the maximum amount of expendi-
tures which the highest funded candidate 
in the election is permitted to make under 
this title, as calculated under either section 
503 or 504 (but excluding any additional 
amount permitted under section 507); and 
‘‘(ii) the maximum amount of expend-
itures which the candidate is permitted to 
make under this title, as calculated under 
either section 503 or 504 (but excluding 
any increase in the amount under this sec-
tion and any additional amount permitted 
under section 507). 
‘‘(B) If, in the case of a third party or 
independent candidate, the number of signa-
tures presented by the candidate to the Com-
mission under subsection (a)(2) is equal to or 
greater than 10 percent of the total number of 
votes cast in the most recent comparable elec-
tion in the same precincts in which the House 
of Representatives general election is held (as 
verified by the Commission) and less than 20 
percent of such total number of votes, the max-
imum amount for the candidate shall be in-
creased by an amount equal to the difference 
between— 
‘‘(i) 50 percent of the maximum 
amount of expenditures which the highest 
funded candidate in the election is per-
mitted to make under this title, as cal-
culated under either section 503 or 504 
(but excluding any additional amount per-
mitted under section 507); and 
‘‘(ii) the maximum amount of expend-
itures which the candidate is permitted to 
make under this title, as calculated under 
either section 503 or 504 (but excluding 
any increase in the amount under this sec-
tion and any additional amount permitted 
under section 507). 
‘‘(C) If the number of signatures presented 
by the candidate to the Commission under sub-
section (a)(2) is less than 10 percent (or, in the 
case of a major party candidate, less than 20 
percent) of the total number of votes cast in the 
most recent comparable election in the same 
precincts in which the House of Representatives 
general election is held (as verified by the Com-
mission), there shall be no increase in the max-
imum amount provided under this section. 
‘‘(2) MOST
RECENT
COMPARABLE
ELECTION 
DEFINED.—In this subsection, the term ‘most recent 
comparable election’ means, with respect to a House 
of Representatives general election— 
‘‘(A) in the case of a regularly scheduled 
election held in a year in which a Presidential 
election is held, the most recent regularly sched-
uled election held in a year in which a Presi-
dential election was held; 
‘‘(B) in the case of a regularly scheduled 
election held in a year in which a Presidential 
election is not held, the most recent regularly 
scheduled election held in a year in which a 
Presidential election is not held; and 
‘‘(C) in the case of a special election, the 
most recent House of Representatives general 
election held in the same precincts in which the 
election is held which the Commission considers 
appropriate for purposes of this section. 
‘‘SEC. 506. GRASSROOTS GOOD CITIZENSHIP FUND. 
‘‘(a) CREATION OF FUND.—There is established in 
the Treasury a trust fund to be known as the ‘Grassroots
Good Citizenship Fund’, consisting of such amounts as 
may be credited to such fund as provided in this section. 
‘‘(b) DISTRICT ACCOUNTS.—There shall be estab-
lished within the Grassroots Good Citizenship Fund an ac-
count for each congressional district. The accounts so es-
tablished shall be administered by the Commission for the 
purpose of distributing amounts under this title. 
‘‘(c) PAYMENTS TO CANDIDATES.—Subject to sub-
section (d), the Commission shall pay to each candidate 
from the Grassroots Good Citizenship Fund the maximum 
amount calculated for such candidate under section 503 
or 504 and any additional amount calculated for the can-
didate under section 505. 
‘‘(d) INSUFFICIENT AMOUNTS.—If, as determined by 
the Commission, there are insufficient amounts in the 
Grassroots Good Citizenship Fund for payments under 
subsection (c), the Commission may reduce payments to 
candidates so that each candidate receives a pro rata por-
tion of the amounts that are available. 
‘‘(e) TRANSFERS TO FUND.—There are hereby cred-
ited to the Grassroots Good Citizenship Fund amounts 
equivalent to the amounts designated under section 6097 
of the Internal Revenue Code of 1986. 
‘‘(f) EXPENDITURES.—Amounts in the Grassroots 
Good Citizenship Fund shall be available for the purpose
of providing amounts for expenditure by candidates in 
House of Representatives general elections in accordance 
with this title. 
‘‘SEC. 507. ADDITIONAL AMOUNTS FROM STATE AND NA-
TIONAL PARTY COMMITTEES. 
‘‘(a) CONTRIBUTIONS.—In addition to amounts made 
available under section 503 or 504 and the additional 
amounts made available under section 505, in the case of 
a candidate in a House of Representatives general election 
who is the candidate of a political party, the State and 
national committees of that political party may make con-
tributions to the candidate totaling not more than 5 per-
cent of the maximum expenditure applicable to the can-
didate (as calculated under section 503 or section 504 and 
including any additional amount provided under section 
505). 
‘‘(b) EXPENDITURES.—A House of Representatives 
candidate who is the candidate of a political party may 
make expenditures of the amounts received under sub-
section (a). 
‘‘SEC. 508. PUBLIC SERVICE ANNOUNCEMENTS. 
‘‘(a) IN GENERAL.—Beginning on January 15, and 
continuing through April 15 of each year, the Commission 
shall carry out a program, utilizing broadcast announce-
ments and other appropriate means, to inform the public
of the existence and purpose of the Grassroots Good Citi-
zenship Fund and the role that individual citizens can play 
in the election process by voluntarily contributing to the 
fund. The announcements shall be broadcast during prime 
time viewing hours in 30-second advertising segments 
equivalent to 200 gross rating points per network per 
week. The Commission shall ensure that the maximum 
number of taxpayers shall be exposed to these announce-
ments. Television networks, as defined by the Federal 
Communications Commission, shall provide the broadcast 
time under this section as part of their obligations in the 
public interest under the Communications Act of 1934. 
The Federal Election Commission shall encourage broad-
cast outlets other than the above mentioned television net-
works including radio to provide similar announcements. 
‘‘(b) GROSS RATING POINT.—The term ‘gross rating 
point’ is a measure of the total gross weight delivered. It 
is the sum of the ratings for individual programs. Since 
a household rating period is 1 percent of the coverage 
base, 200 gross rating points means 2 messages a week 
per average household. 
‘‘SEC. 509. AGGREGATION OF CANDIDATES AND AUTHOR-
IZED COMMITTEES. 
‘‘For purposes of applying the restrictions and limita-
tions of this title—
‘‘(1) expenditures made by any authorized com-
mittee of a candidate shall be considered to be made 
by the candidate; and 
‘‘(2) contributions made to any authorized com-
mittee of a candidate shall be considered to be made 
to the candidate. 
‘‘SEC. 510. DEFINITIONS. 
‘‘As used in this title— 
‘‘(1) the term ‘House of Representatives can-
didate’ means a candidate for the office of Rep-
resentative in, or Delegate or Resident Commis-
sioner to, the Congress; 
‘‘(2) the term ‘median household income’ 
means, with respect to a congressional district, the 
median household income of that district, as deter-
mined by the Commission, using the most current 
data from the Bureau of the Census; 
‘‘(3) the term ‘major party’ means, with respect 
to a House of Representatives general election— 
‘‘(A) a political party whose House of Rep-
resentatives candidate in the preceding general 
election received, as the candidate of such 
party, 25 percent or more of the total number 
of popular votes received by all candidates for
such office in the same precincts in which the 
general election will be held, or 
‘‘(B) a political party whose candidates in 
all elections for Federal office and all elections 
for the chief executive of the State involved oc-
curring during the period described in section 
503(d)(3) received 25 percent or more of the 
total number of popular votes received by all 
candidates in the same precincts in which the 
general election will be held in all such elections 
occurring during such period; 
‘‘(4) the term ‘third party’ means, with respect 
to a House of Representatives general election, a po-
litical party which is not a major party; 
‘‘(5) the term ‘independent candidate’ means, 
with respect to a House of Representatives general 
election, a House of Representatives candidate who 
is not the candidate of a major party or a third 
party, except that any such candidate who, in the 
preceding general election, received 25 percent or 
greater of the total number of popular votes received 
by all candidates for such office in the same pre-
cincts in which the general election will be held, shall 
be treated for purposes of this title as a major party 
candidate; and
‘‘(6) the term ‘House of Representatives gen-
eral election’ means a general election for the office 
of Representative in, or Delegate or Resident Com-
missioner to, the Congress.’’. 
(b) INDEXING OF AMOUNTS.— 
(1) IN GENERAL.—Section 315(c) of the Fed-
eral Election Campaign Act of 1971 (2 U.S.C. 
441a(c)) is amended— 
(A) in paragraph (1)(B)(i), by striking ‘‘or 
(h)’’ and inserting ‘‘or (h), or by title V,’’; and 
(B) in paragraph (1)(C), by striking ‘‘and 
(h)’’ and inserting ‘‘and (h), and under title 
V,’’. 
(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 ‘‘and’’ at the 
end; 
(B) in clause (ii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(iii) for purposes of title V, calendar 
year 2005.’’.