To deny certain benefits to candidates for election to the House of Representatives who accept contributions in excess of certain limitations, and for other purposes.

SECTION 1. DENIAL OF CERTAIN TAX BENEFITS.

    (a) General Rule.--Section 527 of the Internal Revenue Code of 1986 
(relating to political organizations) is amended by adding at the end 
thereof the following new subsection:
    ``(i) Special Rules for Certain Campaign Committees.--
            ``(1) In general.--In the case of any political 
        organization to which this subsection applies for any taxable 
        year--
                    ``(A) all excess campaign contributions received by 
                such organization during such taxable year shall be 
                included in gross income and the exemptions provided by 
                subsection (c)(1) for exempt function income shall not 
                apply to such contributions, and
                    ``(B) the provisions of subsection (h) shall not 
                apply to such organization for such taxable year.
            ``(2) Organizations to which subsection applies.--This 
        subsection shall apply to any political organization for any 
        taxable year if--
                    ``(A) such organization is a campaign committee of 
                a candidate for election as a Member of the House of 
                Representatives or as a Delegate or Resident 
                Commissioner to the House of Representatives, and
                    ``(B) the contribution limitations of paragraph (3) 
                are not satisfied by such candidate--
                            ``(i) in the case of the first taxable year 
                        beginning in an election cycle, for the portion 
                        of such election cycle ending with the close of 
                        the taxable year, or
                            ``(ii) in the case of the taxable year in 
                        which such election cycle ends, for the entire 
                        election cycle.
            ``(3) Contribution limitations.--The contribution 
        limitations of this paragraph are satisfied by any candidate 
        for any election cycle (or portion thereof) if--
                    ``(A) the sum of the following amounts does not 
                exceed $600,000:
                            ``(i) the amount of cash and the fair 
                        market value of other property held by campaign 
                        committees of such candidate as of the 
                        beginning of such election cycle, plus
                            ``(ii) the aggregate amount of political 
                        contributions accepted by such candidate or by 
                        such candidate's campaign committees during 
                        such election cycle (or portion thereof), and
                    ``(B) the aggregate amount of political 
                contributions from multicandidate political committees 
                accepted by such candidate or by such candidate's 
                campaign committees during such election cycle (or 
                portion thereof) does not exceed $300,000.
            ``(4) Excess campaign contributions.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `excess campaign contributions' means the 
                amount of contributions received by the political 
                organization during the taxable year to the extent such 
                contributions exceed the amount permitted under the 
                contribution limitations of paragraph (3).
                    ``(B) Special rule.--For purposes of this subtitle, 
                contributions received during the portion of any 
                election cycle before the first taxable year beginning 
                in such cycle shall be treated as received in such 
                first taxable year.
            ``(5) Election cycle.--For purposes of this subsection, the 
        term `election cycle' means the period beginning with the day 
        after the date of a general election for the House of 
        Representatives and ending with the date of the next general 
        election for the House of Representatives.
            ``(6) Multicandidate political committee.--The term 
        `multicandidate political committee' has the meaning given such 
        term by section 315(a)(4) of the Federal Election Campaign Act 
        of 1971 (2 U.S.C. 441a(a)(4)).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 2. DENIAL OF LOWEST UNIT CHARGE FOR CAMPAIGN ADS.

    Section 315(b) of the Communications Act of 1934 (47 U.S.C. 315(b)) 
is amended by adding at the end the following new sentence:
``The limitations on charges contained in this subsection shall not 
apply in the case of a candidate for election as a Member of, or 
Delegate or Resident Commissioner to, the United States House of 
Representatives unless such candidate certifies, at the time of 
entering into a contract for the use of such broadcasting station, that 
such candidate has not obtained any excess campaign contributions for 
the current election cycle, as determined under section 527(i)(4) of 
the Internal Revenue Code of 1986.''.

SEC. 3. REDUCED THIRD-CLASS MAILING RATES.

    (a) In General.--Section 3626(e) of title 39, United States Code, 
is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``and the National'' and inserting 
                ``the National''; and
                    (B) by striking ``Committee;'' and inserting 
                ``Committee, and, subject to paragraph (3), a campaign 
                committee of a candidate for the House of 
                Representatives;'';
            (2) in paragraph (2)(B), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (2)(C), by striking the period and 
        inserting ``; and'';
            (4) by adding after paragraph (2)(C) the following:
            ``(D) the term `candidate for the House of Representatives' 
        means a candidate for election as a Member of, or Delegate or 
        Resident Commissioner to, the House of Representatives.''; and
            (5) by adding after paragraph (2) the following:
    ``(3) The rates under this subsection shall not be available to a 
campaign committee of a candidate for the House of Representatives 
unless such committee certifies, at such time and in such manner as the 
Postal Service by regulation requires, that such candidate has not 
obtained any excess campaign contributions for the current election 
cycle, as determined under section 527(i)(4) of the Internal Revenue 
Code of 1986.''.
    (b) Sense of the Congress.--It is the sense of the Congress that 
any additional costs incurred by the United Postal Service in 
connection with providing reduced rates of postage pursuant to the 
amendments made by subsection (a) should be funded out of any revenues 
attributable to the amendment made by section 1.

Summary: Amends the Internal Revenue Code with respect to political organizations to establish a campaign contribution limitation scheme applicable to the campaign committee of a candidate for election to the House of Representatives.  Provides that excess campaign contributions received by such an organization shall be included in its gross income. 
Amends the Communications Act of 1934 and Federal postal service law to condition the lowest unit charge for campaign ads upon a candidate's certification of compliance with such contribution limitation. 
Expresses the sense of the Congress that additional costs incurred by the United Postal Service in providing reduced rates of postage pursuant to this Act should be funded out of revenues attributable to this Act.