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SECTION 1. DEPOSIT OF CERTAIN CONTRIBUTIONS AND DONATIONS IN TREASURY
ACCOUNT.

(a) In General.--Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) is amended by adding at the end the
following new section:

''treatment of certain contributions and donations to be returned to
donors

''Sec. 323. (a) Transfer to Commission.--
''(1) In general.--Notwithstanding any other provision of
this Act, if a political committee intends to return any
contribution or donation given to the political committee, the
committee shall transfer the contribution or donation to the
Commission if--
''(A) the contribution or donation is in an amount
equal to or greater than $500 (other than a
contribution or donation returned within 60 days of
receipt by the committee); or
''(B) the contribution or donation was made in
violation of section 315, 316, 317, 319, or 320 (other
than a contribution or donation returned within 30 days
of receipt by the committee).
''(2) Information included with transferred contribution or
donation.--A political committee shall include with any
contribution or donation transferred under paragraph (1)--
''(A) a request that the Commission return the
contribution or donation to the person making the
contribution or donation; and
''(B) information regarding the circumstances
surrounding the making of the contribution or donation
and any opinion of the political committee concerning
whether the contribution or donation may have been made
in violation of this Act.
''(3) Establishment of escrow account.--
''(A) In general.--The Commission shall establish a
single interest-bearing escrow account for deposit of
amounts transferred under paragraph (1).
''(B) Disposition of amounts received.--On
receiving an amount from a political committee under
paragraph (1), the Commission shall--
''(i) deposit the amount in the escrow
account established under subparagraph (A); and
''(ii) notify the Attorney General and the
Commissioner of the Internal Revenue Service of
the receipt of the amount from the political
committee.
''(C) Use of interest.--Interest earned on amounts
in the escrow account established under subparagraph
(A) shall be applied or used for the same purposes as
the donation or contribution on which it is earned.
''(4) Treatment of returned contribution or donation as a
complaint.--The transfer of any contribution or donation to the
Commission under this section shall be treated as the filing of
a complaint under section 309(a).
''(b) Use of Amounts Placed in Escrow To Cover Fines and
Penalties.--The Commission or the Attorney General may require any
amount deposited in the escrow account under subsection (a)(3) to be
applied toward the payment of any fine or penalty imposed under this
Act or title 18, United States Code, against the person making the
contribution or donation.
''(c) Return of Contribution or Donation After Deposit in Escrow.--
''(1) In general.--The Commission shall return a
contribution or donation deposited in the escrow account under
subsection (a)(3) to the person making the contribution or
donation if--
''(A) within 180 days after the date the
contribution or donation is transferred, the Commission
has not made a determination under section 309(a)(2)
that the Commission has reason to believe whether that
the making of the contribution or donation was made in
violation of this Act; or
''(B)(i) the contribution or donation will not be
used to cover fines, penalties, or costs pursuant to
subsection (b); or
''(ii) if the contribution or donation will be used
for those purposes, that the amounts required for those
purposes have been withdrawn from the escrow account
and subtracted from the returnable contribution or
donation.
''(2) No effect on status of investigation.--The return of
a contribution or donation by the Commission under this
subsection shall not be construed as having an effect on the
status of an investigation by the Commission or the Attorney
General of the contribution or donation or the circumstances
surrounding the contribution or donation, or on the ability of
the Commission or the Attorney General to take future actions
with respect to the contribution or donation.''.
(b) Amounts Used to Determine Amount of Penalty for Violation.--
Section 309(a) of such Act (2 U.S.C. 437g(a)) is amended by inserting
after paragraph (9) the following new paragraph:
''(10) For purposes of determining the amount of a civil penalty
imposed under this subsection for violations of section 323, the amount
of the donation involved shall be treated as the amount of the
contribution involved.''.
(c) Donation Defined.--Section 301 of such Act (2 U.S.C. 431) is
amended by adding at the end the following:
''(20) Donation.--The term 'donation' means a gift, subscription,
loan, advance, or deposit of money or anything else of value made by
any person to a national committee of a political party or a Senatorial
or Congressional Campaign Committee of a national political party for
any purpose, but does not include a contribution (as defined in
paragraph (8)).''.
(d) Disgorgement Authority.--Section 309 of such Act (2 U.S.C.
437g) is amended by adding at the end the following new subsection:
''(e) Any conciliation agreement, civil action, or criminal action
entered into or instituted under this section may require a person to
forfeit to the Treasury any contribution, donation, or expenditure that
is the subject of the agreement or action for transfer to the
Commission for deposit in accordance with section 323.''.
(e) Effective Date.--The amendments made by subsections (a), (b),
and (c) shall apply to contributions or donations refunded on or after
the date of the enactment of this Act, without regard to whether the
Federal Election Commission or Attorney General has issued regulations
to carry out section 323 of the Federal Election Campaign Act of 1971
(as added by subsection (a)) by such date.
Output:
Amends the Federal Election Campaign Act of 1971 to establish guidelines for the transfer to the Federal Election Commission (FEC) and deposit into a special account of any contribution or donation given to a political committee that the committee intends to return, as well as for the return of such contribution or donation after it is deposited to the person who made it. Requires: (1) the political committee to include certain information along with the transferred contribution or donation, such as a request that the FEC return the contribution or donation to the person making it; and (2) the FEC to notify the Attorney General and the Commissioner of the Internal Revenue Service of the receipt of such contribution or donation. Allows amounts in the special account to be applied toward the payment of any applicable fines or penalties.