HR 268 IH1S 
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) ON-LINE
CONTRIBUTIONS.—The Secretary 
shall establish and maintain a Web site through which per-
sons 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’’; 
(B) in subparagraph (A), by inserting ‘‘for 
preemptible use thereof’’ after ‘‘station’’; and 
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(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 
written certification to such station that 
such committee shall not make any direct 
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(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-
tion or special election, the Commission shall conduct such 
audits as it considers necessary to ensure that the licensee 
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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 
the most-favored advertiser of the broadcasting 
station or cable system’’; and 
(2) by adding at the end the following: 
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‘‘(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 
calculated for purposes of paragraph (1) with-
out regard to any such failures that occurred 
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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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