I 
112TH CONGRESS 
2D SESSION 
H. R. 6426 
To reform the financing of Congressional elections by encouraging grassroots 
participation in the funding of campaigns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2012 
Mr. SARBANES (for himself, Mr. BOSWELL, Mr. BRADY of Pennsylvania, Mr. 
CAPUANO, Mr. CONYERS, Mr. DEUTCH, Mr. DINGELL, Mr. DOGGETT, 
Ms. EDWARDS, Mr. ELLISON, Mr. ENGEL, Mr. HOLT, Mr. LEWIS of 
Georgia, Mr. MCGOVERN, Mr. GEORGE MILLER of California, Mr. GRI-
JALVA, Mr. NADLER, Ms. PINGREE of Maine, Mr. POLIS, Mr. PRICE of 
North Carolina, Ms. LINDA T. SA´NCHEZ of California, Ms. SCHAKOWSKY, 
Mr. SCOTT of Virginia, Mr. SIRES, Mr. TONKO, Mr. VAN HOLLEN, Mr. 
WELCH, Mr. YARMUTH, Ms. BONAMICI, Ms. DELAURO, Mr. LARSON of 
Connecticut, and Mr. COURTNEY) introduced the following bill; which was 
referred to the Committee on House Administration, and in addition to 
the Committees on Ways and Means and Energy and Commerce, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To reform the financing of Congressional elections by encour-
aging grassroots participation in the funding of cam-
paigns, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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‘‘Sec. 533. Severability. 
‘‘Subtitle E—Administrative Provisions 
‘‘Sec. 541. Grassroots Democracy Fund. 
‘‘Sec. 542. Grassroots Democracy Advisory Commission. 
‘‘Sec. 543. Administration by Commission. 
‘‘Sec. 544. Violations and penalties. 
‘‘Sec. 545. Election cycle defined. 
Sec. 202. Prohibiting use of contributions by participating candidates for pur-
poses other than campaign for election. 
TITLE III—OTHER ADMINISTRATIVE REFORMS 
Sec. 301. Expanding requirement to disclose bundlers who are registered lobby-
ists to all bundlers. 
Sec. 302. Expansion of period for treatment of communications as election-
eering communications. 
Sec. 303. User fees for committees and bundlers. 
Sec. 304. Petition for certiorari. 
Sec. 305. Filing by all candidates with Commission. 
Sec. 306. Electronic filing of FEC reports. 
Sec. 307. Effective date. 
TITLE IV—OFFSETS 
Sec. 401. Reform of tax rules related to political organizations. 
Sec. 402. Voluntary contributions to the Grassroots Democracy Fund. 
TITLE V—EXPANDING CANDIDATE ACCESS TO ADVERTISING 
Sec. 501. Broadcasts by or on behalf of candidates. 
TITLE I—GRASSROOTS PARTICI-
PATION 
IN 
FUNDING 
OF 
ELECTIONS 
Subtitle A—Grassroots Democracy 
Dollars 
SEC. 101. REFUNDABLE CREDIT FOR GRASSROOTS CON-
TRIBUTIONS TO FEDERAL CONGRESSIONAL 
CANDIDATES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to refundable credits) is amended by insert-
ing after section 36B the following new section: 
‘‘SEC. 36C. CREDIT FOR GRASSROOTS CONTRIBUTIONS TO 
FEDERAL CONGRESSIONAL CANDIDATES. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle an amount equal to the qualified grass-
roots Federal congressional campaign contributions paid 
or incurred by the taxpayer during the taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR LIMITATION.—The credit allowed 
under subsection (a) to any taxpayer with respect to 
any taxable year shall not exceed $25 (twice such 
amount in the case of a joint return). 
‘‘(2) LIMITATION ON CONTRIBUTIONS TO FED-
ERAL
CONGRESSIONAL
CANDIDATES.—No credit 
shall be allowed under this section to any taxpayer 
for any taxable year if such taxpayer made aggre-
gate contributions in excess of $200 (twice such 
amount in the case of a joint return) during the tax-
able year to— 
‘‘(A) any single Federal congressional can-
didate, or 
‘‘(B) any political committee established 
and maintained by a national political party. 
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‘‘(3) INELIGIBILITY
OF
INDIVIDUALS
USING 
GRASSROOTS
DEMOCRACY
COUPONS.—No 
credit 
shall be allowed under this section with respect to 
any individual for any taxable year during which 
such individual submitted a Grassroots Democracy 
Coupon under subtitle B of title I of the Grassroots 
Democracy Act of 2012 to a candidate for election 
for Federal office. In the case of a joint return with 
respect to which this paragraph applies to one of the 
spouses, such return shall not be treated as a joint 
return for purposes of determining the dollar limita-
tion under paragraph (1). 
‘‘(c) QUALIFIED GRASSROOTS FEDERAL CONGRES-
SIONAL CAMPAIGN CONTRIBUTIONS.—For purposes of 
this section, the term ‘qualified grassroots Federal con-
gressional campaign contribution’ means any contribution 
of cash by an individual to a Federal congressional can-
didate or to a political committee established and main-
tained by a national political party if such contribution 
is not prohibited under the Federal Election Campaign 
Act of 1971. 
‘‘(d) FEDERAL CONGRESSIONAL CANDIDATE.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘Federal congres-
sional candidate’ means any candidate for election to 
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the office of Senator or Representative in, or Dele-
gate or Resident Commissioner to, the Congress. 
‘‘(2) TREATMENT
OF
AUTHORIZED
COMMIT-
TEES.—Any contribution made to an authorized 
committee of a Federal congressional candidate shall 
be treated as made to such candidate. 
‘‘(e) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after 2013, the $25 amount under 
subsection (b)(1) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2012’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under subparagraph (A) is not a multiple of $5, 
such amount shall be rounded to the nearest mul-
tiple of $5.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
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(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36C the following new item: 
‘‘Sec. 36C. Credit for grassroots contributions to Federal congressional can-
didates.’’. 
(c) FORMS.—The Secretary of the Treasury, or his 
designee, shall ensure that the credit for grassroots con-
tributions to Federal congressional candidates allowed 
under section 36C of the Internal Revenue Code of 1986, 
as added by this section, may be claimed on Forms 
1040EZ and 1040A. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Subtitle B—Grassroots Democracy 
Coupon Pilot Program 
SEC. 111. ESTABLISHMENT OF PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Grassroots Democracy 
Advisory Commission established under section 542 of the 
Federal Election Campaign Act of 1971 (as added by sec-
tion 201) (hereafter in this subtitle referred to as the 
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‘‘Commission’’) shall establish a pilot program under 
which— 
(1) a qualified individual who resides in a State 
selected for participation in the program shall be 
provided with a voucher to be known as a ‘‘Grass-
roots Democracy Coupon’’ during the election cycle 
which will be assigned a routing number and which 
at the option of the individual will be provided in ei-
ther paper or electronic form; 
(2) using the routing number assigned to the 
Coupon, the individual may submit the Grassroots 
Democracy Coupon in either electronic or paper 
form to qualified candidates for election for Federal 
office and allocate such portion of the value of the 
voucher in increments of $5 (in an amount not to 
exceed $50 for any single candidate) as the indi-
vidual may select to any such candidate; and 
(3) if the candidate transmits such Grassroots 
Democracy Coupon to the Commission, the Commis-
sion shall pay the candidate the portion of the value 
of the voucher that the individual allocated to the 
candidate, which shall be considered a contribution 
by the individual to the candidate for purposes of 
the Federal Election Campaign Act of 1971. 
(b) SELECTION OF STATES.— 
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(1) IN GENERAL.—A State that seeks to par-
ticipate in the pilot program under this title shall 
submit to the Commission (at such time and in such 
form as the Commission may require) an application 
containing such information and assurances as the 
Commission may require. 
(2) CRITERIA.—In selecting among States that 
seek to participate in the program, the Commission 
shall ensure a balance among various geographic re-
gions, population sizes, and other demographic char-
acteristics. 
(c) STANDARDS FOR QUALIFICATION OF INDIVID-
UALS.—The Commission shall establish standards for the 
qualification of individuals to whom Grassroots Democ-
racy Coupons will be provided, so that only individuals 
who are registered to vote in elections for Federal office 
may qualify and such individuals would be able to claim 
the Coupons immediately upon registering to vote. 
(d) OTHER ADMINISTRATIVE SPECIFICATIONS.—In 
carrying out the pilot program under this subtitle, the 
Commission shall— 
(1) create the necessary routing numbers for 
the Grassroots Democracy Coupons, which will be 
matched with State-issued voter registration cards; 
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(2) provide incentives for candidates for election 
for Federal office and interested organizations to de-
velop online platforms through which individuals 
may select among eligible candidates for the submis-
sion and acceptance of Grassroots Democracy Cou-
pons in electronic or paper form; and 
(3) establish fraud prevention mechanisms so 
that an individual may revoke a Grassroots Democ-
racy Coupon not later than 2 days after submitting 
the Coupon to a candidate. 
SEC. 112. REPORTS TO CONGRESS. 
(a) REPORTS.—Not later than 6 months after each 
election cycle during which the pilot program under this 
subtitle is in effect, the Commission and the Government 
Accountability Office shall each submit a report to Con-
gress analyzing the operation and effectiveness of the pro-
gram during the cycle, and shall include in each such re-
port such recommendations as the Commission and the 
Government Accountability Office (as the case may be) 
consider appropriate regarding the expansion of the pilot 
program to all States and territories, along with such 
other recommendations as the Commission and Govern-
ment Accountability Office consider appropriate. 
(b) DEFINITION.—In subsection (a), the term ‘‘elec-
tion cycle’’ means the period beginning on the day after 
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the date of the most recent regularly scheduled general 
election for Federal office and ending on the date of the 
next regularly scheduled general election for Federal of-
fice. 
TITLE II—GRASSROOTS FINANC-
ING 
OF 
CONGRESSIONAL 
ELECTION CAMPAIGNS 
SEC. 201. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR 
CANDIDATES. 
The Federal Election Campaign Act of 1971 (2 
U.S.C. 431 et seq.) is amended by adding at the end the 
following: 
‘‘TITLE V—GRASSROOTS FINANC-
ING 
OF 
CONGRESSIONAL 
ELECTION CAMPAIGNS 
‘‘Subtitle A—Benefits 
‘‘SEC. 501. BENEFITS FOR PARTICIPATING CANDIDATES. 
‘‘(a) IN GENERAL.—If a candidate for election to the 
office of Senator or Representative in, or Delegate or Resi-
dent Commissioner to, the Congress is certified as a par-
ticipating candidate under this title with respect to an 
election for such office, the candidate shall be entitled to 
payments as provided under this title. 
‘‘(b) AMOUNT OF PAYMENT.— 
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‘‘(1) TIER 1 CANDIDATES.—In the case of a 
participating candidate who is a Tier 1 candidate, 
the amount of a payment made under this title shall 
be equal to 500 percent of the amount of qualified 
grassroots contributions received by the candidate 
since the most recent payment made to the can-
didate under this title during the election cycle 
which are attributable to residents of the State in 
which the candidate seeks election. 
‘‘(2) TIER 2 CANDIDATES.—In the case of a 
participating candidate who is a Tier 2 candidate, 
the amount of the payment made under this title 
shall be equal to 1,000 percent of the amount of 
qualified grassroots contributions received by the 
candidate since the most recent payment made to 
the candidate under this title during the election 
cycle. 
‘‘(c) LIMIT
ON
AGGREGATE
AMOUNT
OF
PAY-
MENTS.— 
‘‘(1) TIER 1 CANDIDATES.—In the case of a 
participating candidate who is a Tier 1 candidate, 
the aggregate amount of payments made under this 
title may not exceed 50% of the average of the 10 
greatest amounts of disbursements made by the au-
thorized committees of any winning candidate for 
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the office of Representative in, or Delegate or Resi-
dent Commissioner to, the Congress during the most 
recent election cycle (in the case of a participating 
candidate for such office) or any winning candidate 
for the office of Senator during the most recent elec-
tion cycle (in the case of a participating candidate 
for such office). 
‘‘(2) TIER 2 CANDIDATES.—In the case of a 
participating candidate who is a Tier 2 candidate, 
the aggregate amount of payments made under this 
title may not exceed 100% of the average of the 10 
greatest amounts of disbursements made by the au-
thorized committees of any winning candidate for 
the office of Representative in, or Delegate or Resi-
dent Commissioner to, the Congress during the most 
recent election cycle (in the case of a participating 
candidate for such office) or any winning candidate 
for the office of Senator during the most recent elec-
tion cycle (in the case of a participating candidate 
for such office). 
‘‘SEC. 502. PROCEDURES FOR MAKING PAYMENTS. 
‘‘(a) IN GENERAL.—The Commission make a pay-
ment under section 501 to a candidate who is certified 
as a participating candidate upon receipt from the can-
didate of a request for a payment which includes— 
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‘‘(1) a statement of the number of qualified 
grassroots contributions received by the candidate 
since the most recent payment made to the can-
didate under this title during the election cycle; 
‘‘(2) a statement of the amount of the payment 
the candidate anticipates receiving with respect to 
the request; and 
‘‘(3) such other information and assurances as 
the Commission may require. 
‘‘(b) RESTRICTIONS
ON
SUBMISSION
OF
RE-
QUESTS.—A candidate may not submit a request under 
subsection (a) unless each of the following applies: 
‘‘(1) The number of individuals in the state-
ment referred to in subsection (a)(1) is equal to or 
greater than 100, unless the request is submitted 
during the 30-day period which ends on the date of 
a general election. 
‘‘(2) Of the number of individuals in the state-
ment referred to in subsection (a)(1), at least 50 
percent are residents of the Congressional district 
involved (in the case of a candidate for election for 
the office of Representative in, or Delegate or Resi-
dent Commissioner to, the Congress) or the State in-
volved (in the case of a candidate for election for the 
office of Senator). 
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