[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4694 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 4694

   To amend the Federal Election Campaign Act of 1971 to provide for 
       expenditure limitations and public financing for House of 
       Representatives general elections, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2006

  Mr. Obey (for himself, Mr. Frank of Massachusetts, Ms. DeLauro, Mr. 
  Filner, Mr. Israel, Mr. McGovern, Mr. Ryan of Ohio, and Mr. Waxman) 
 introduced the following bill; which was referred to the Committee on 
  House Administration, and in addition to the Committees on Ways and 
  Means and Rules, 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 committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Election Campaign Act of 1971 to provide for 
       expenditure limitations and public financing for House of 
       Representatives general elections, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDING.

    (a) Short Title.--This Act may be cited as the ``Let the People 
Decide Clean Campaign Act''.
    (b) Finding.--The Congress finds that the existing system of 
private political contributions has become a fundamental threat to the 
integrity of the national election process, has undermined public 
confidence in the legitimacy of that election process, and that the 
provisions contained in this Act are necessary to prevent the 
corruption of the public's faith in the Nation's system of governance.

  TITLE I--EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR HOUSE OF 
                   REPRESENTATIVES GENERAL ELECTIONS

SEC. 101. EXPENDITURE LIMITATIONS AND PUBLIC FINANCING OF HOUSE GENERAL 
              ELECTIONS.

    (a) Expenditure Limitations and Public Financing.--The Federal 
Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended by 
adding at the end the following new title:

 ``TITLE V--EXPENDITURE LIMITATIONS AND PUBLIC FINANCING FOR HOUSE OF 
                   REPRESENTATIVES GENERAL ELECTIONS

``SEC. 501. LIMITATION ON EXPENDITURES IN HOUSE OF REPRESENTATIVES 
              GENERAL ELECTIONS.

    ``A candidate in a House of Representatives general election may 
not make expenditures other than as provided in this title.

``SEC. 502. SOURCES OF AMOUNTS FOR EXPENDITURES BY CANDIDATES IN HOUSE 
              OF REPRESENTATIVES GENERAL ELECTIONS.

    ``The only sources of amounts for expenditures by candidates in 
House of Representatives general elections shall be--
            ``(1) the Grassroots Good Citizenship Fund under section 
        506; and
            ``(2) additional amounts from State and national party 
        committees under section 507.

``SEC. 503. DISTRICT LIMITATION ON EXPENDITURES BY MAJOR PARTY 
              CANDIDATES.

    ``(a) In General.--Except as provided in sections 505 and 507, the 
maximum amounts of expenditures by major party candidates in House of 
Representatives general elections shall be based on the median 
household income of the districts involved, as provided for in 
subsections (b) and (c).
    ``(b) Maximum for Wealthiest District.--In the congressional 
district with the highest median household income, maximum combined 
expenditures for all major party candidates with respect to a House of 
Representatives general election shall be a total of $1,500,000.
    ``(c) Maximum for Other Districts.--In each congressional district, 
other than the district referred to in subsection (b), the maximum 
combined expenditures for all major party candidates with respect to a 
House of Representatives general election shall be an amount equal to--
            ``(1) the maximum amount referred to in subsection (b), 
        less
            ``(2) the amount equal to--
                    ``(A) \2/3\ of the percentage difference between 
                the median household income of the district involved 
                and the median household income of the district 
                referred to in subsection (b), times
                    ``(B) the maximum amount referred to in subsection 
                (b).
    ``(d) Allocation.--
            ``(1) In general.--The maximum expenditure for a major 
        party candidate in a congressional district shall bear the same 
        ratio to the maximum amount under subsection (b) or (c), as 
        applicable, as the total popular vote in the same precincts in 
        which the general election will be held for candidates of the 
        party in all House of Representatives general elections 
        occurring during the period described in paragraph (3) bears to 
        the total popular vote in such precincts for candidates of all 
        major parties in all such elections, except that in determining 
        the total popular vote in such precincts for candidates of any 
        party in elections occurring during the period described in 
        paragraph (3), votes cast in any House of Representatives 
        general election for which there were fewer than 2 major party 
        candidates shall not be taken into account.
            ``(2) Exception for districts with no contested 
        elections.--If, during the period described in paragraph (3), 
        no House of Representatives general election for which there 
        were at least 2 major party candidates was held in any of the 
        same precincts in which the general election will be held, the 
        maximum expenditure for a major party candidate in the district 
        shall bear the same ratio to the maximum amount under 
        subsection (b) or (c), as applicable, as the total popular vote 
        in all such precincts for candidates of the party in all 
        elections for the office of Senator occurring during the period 
        described in paragraph (3) bears to the total popular vote in 
        all such precincts for candidates of all major parties in all 
        such elections.
            ``(3) Period described.--With respect to a House of 
        Representatives general election in a congressional district, 
        the period described in this paragraph is the period beginning 
        on the date of the second most recent House of Representatives 
        general election held in the district and ending on the day 
        before the date of the election.

``SEC. 504. DISTRICT LIMITATION ON EXPENDITURES BY THIRD PARTY AND 
              INDEPENDENT CANDIDATES.

    ``(a) In General.--Except as provided in sections 505 and 507, the 
maximum amounts of expenditures by third party and independent 
candidates in House of Representatives general elections shall be the 
amount allocated under subsection (b).
    ``(b) Allocation.--The maximum expenditure for a third party or 
independent candidate in a congressional district shall be the greater 
of the following amounts:
            ``(1) The amount that bears the same ratio to the maximum 
        amount under subsection (b) or (c) of section 503, as 
        applicable, as the total popular vote in the district for 
        candidates of the third party or for all independent candidates 
        (as the case may be) in House of Representatives general 
        elections bears to the total popular vote for all candidates in 
        elections held during the period described in section 
        503(d)(3).
            ``(2) The amount that bears the same ratio to the maximum 
        amount under subsection (b) or (c) of section 503, as 
        applicable, as the total popular vote in the State involved for 
        candidates of the third party or for all independent candidates 
        (as the case may be) in elections for Federal office other than 
        Presidential elections bears to the total popular vote for all 
        candidates in elections held during the period described in 
        section 503(d)(3).
            ``(3) The amount that bears the same ratio to the maximum 
        amount under subsection (b) or (c) of section 503, as 
        applicable, as the total popular vote in the State involved for 
        candidates of the third party or for all independent candidates 
        (as the case may be) in Presidential elections bears to the 
        total popular vote for all candidates in Presidential elections 
        held during the period described in section 503(d)(3).

``SEC. 505. PERMITTING ADDITIONAL EXPENDITURES BY CERTAIN ELIGIBLE 
              CANDIDATES.

    ``(a) Additional Expenditures.--
            ``(1) In general.--The maximum amount calculated under 
        section 503 or 504 for any eligible candidate described in 
        paragraph (2) shall be increased in accordance with subsection 
        (b).
            ``(2) Eligible candidate described.--
                    ``(A) In general.--In this section, an `eligible 
                candidate' is a major party, third party, or 
                independent candidate in a House of Representatives 
                general election who presents to the Commission 
                petitions containing the signatures of individuals 
                eligible to vote in the election (as verified by the 
                Commission), except that the highest funded candidate 
                in the election may not be an eligible candidate for 
                purposes of this section.
                    ``(B) Prohibiting use of paid signature 
                collectors.--The Commission may not verify a signature 
                presented under this section if any person received a 
                direct or indirect payment to collect the signature.
            ``(3) Highest funded candidate described.--In this section, 
        the `highest funded candidate' is, with respect to an election, 
        the major party, third party, or independent candidate who is 
        permitted to make the greatest maximum amount of expenditures 
        under this title, as calculated under either section 503 or 504 
        (but excluding any increase in the amount under this section 
        and any additional amount permitted under section 507).
    ``(b) Determination of Amount of Increase in Maximum Expenditure 
Amount.--
            ``(1) Determination.--The increase in the maximum amount 
        for an eligible candidate in a House of Representatives general 
        election provided under this section shall be determined as 
        follows:
                    ``(A) If the number of signatures presented by the 
                candidate to the Commission under subsection (a)(2) is 
                equal to or greater 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 Commission), the maximum amount for the 
                candidate shall be increased by an amount equal to the 
                difference between--
                            ``(i) the maximum amount of expenditures 
                        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 expenditures 
                        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 section and any additional 
                        amount permitted under section 507).
                    ``(B) If, in the case of a third party or 
                independent candidate, the number of signatures 
                presented by the candidate to the Commission under 
                subsection (a)(2) is equal to or greater than 10 
                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 Commission) and less than 20 
                percent of such total number of votes, the maximum 
                amount for the candidate shall be increased 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 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 expenditures 
                        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 section and any additional 
                        amount permitted under section 507).
                    ``(C) If the number of signatures presented by the 
                candidate to the Commission under subsection (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 Commission), there shall be no increase in the 
                maximum 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 scheduled election held 
                in a year in which a Presidential 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 established within the 
Grassroots Good Citizenship Fund an account for each congressional 
district. The accounts so established shall be administered by the 
Commission for the purpose of distributing amounts under this title.
    ``(c) Payments to Candidates.--Subject to subsection (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 
candidate 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 portion of the 
amounts that are available.
    ``(e) Transfers to Fund.--There are hereby credited 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 NATIONAL 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 contributions 
to the candidate totaling not more than 5 percent of the maximum 
expenditure applicable to the candidate (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 subsection (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 announcements and other appropriate means, to 
inform the public of the existence and purpose of the Grassroots Good 
Citizenship 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 announcements. 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 broadcast outlets 
other than the above mentioned television networks 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 AUTHORIZED COMMITTEES.

    ``For purposes of applying the restrictions and limitations of this 
title--
            ``(1) expenditures made by any authorized committee of a 
        candidate shall be considered to be made by the candidate; and
            ``(2) contributions made to any authorized committee 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 candidate' means a 
        candidate for the office of Representative in, or Delegate or 
        Resident Commissioner to, the Congress;
            ``(2) the term `median household income' means, with 
        respect to a congressional district, the median household 
        income of that district, as determined 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 
                Representatives 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 occurring 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 political 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 precincts 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 general election' 
        means a general election for the office of Representative in, 
        or Delegate or Resident Commissioner to, the Congress.''.
    (b) Indexing of Amounts.--
            (1) In general.--Section 315(c) of the Federal 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.''.

         TITLE II--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

SEC. 201. DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR GRASSROOTS 
              GOOD CITIZENSHIP FUND.

    (a) In General.--Subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 (relating to returns and records) is amended by adding at 
the end the following:

``PART IX--DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR GRASSROOTS 
                         GOOD CITIZENSHIP FUND

``Sec. 6097. Designation of overpayments for Grassroots Good 
                            Citizenship Fund

``SEC. 6097. DESIGNATION OF OVERPAYMENTS FOR GRASSROOTS GOOD 
              CITIZENSHIP FUND.

    ``(a) In General.--With respect to each taxpayer's return for the 
taxable year of the tax imposed by chapter 1, such taxpayer may 
designate that--
            ``(1) an amount that is not less than $1 of any overpayment 
        of tax for such taxable year, and
            ``(2) any contribution which the taxpayer includes with 
        such return,
shall be paid over to the Grassroots Good Citizenship Fund under 
section 506 of the Federal Election Campaign Act of 1971.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year only at the 
time of filing the return of tax imposed by chapter 1 for such taxable 
year. Such designation shall be made on the 1st page of the return.
    ``(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 being refunded to the taxpayer as of the last 
date prescribed for filing the return of tax imposed by chapter 1 
(determined without regard to extensions) or, if later, the date the 
return is filed.''.
    (b) Clerical Amendment.--The table of parts for such subchapter A 
is amended by adding at the end thereof the following new item:

 ``Part IX. designation of overpayments and contributions for certain 
       purposes relating to House of Representatives elections''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 202. INCREASE IN CORPORATE INCOME TAX ON TAXABLE INCOME ABOVE 
              $10,000,000.

    (a) In General.--Subparagraph (D) of section 11(b)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``35 percent'' and 
inserting ``35.1 percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
    (c) Use of Amounts Received.--Amounts received by reason of the 
amendment made by subsection (a) shall be paid over to the Grassroots 
Good Citizenship Fund under section 506 of the Federal Election 
Campaign Act of 1971.

                  TITLE III--INDEPENDENT EXPENDITURES

SEC. 301. BAN ON INDEPENDENT EXPENDITURES IN HOUSE OF REPRESENTATIVES 
              ELECTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following new subsection;
    ``(k) No person may make any independent expenditure with respect 
to an election for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress.''.

SEC. 302. BAN USE OF NONFEDERAL FUNDS FOR CERTAIN DISBURSEMENTS.

    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:

       ``ban on use of nonfederal funds for certain disbursements

    ``Sec. 325.
    ``No person may make any disbursement in connection with a campaign 
for an election for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress, or any disbursement in 
connection with any public communication made for purposes of 
supporting, opposing, attacking, promoting, or mentioning a candidate 
in such an election, unless the funds used for the disbursement are 
subject to the limitations, prohibitions, and reporting requirements of 
this Act.''.

   TITLE IV--PROVISIONS RELATING TO HOUSE OF REPRESENTATIVES PRIMARY 
                               ELECTIONS

SEC. 401. LIMITATION ON EXPENDITURES IN HOUSE OF REPRESENTATIVES 
              ELECTIONS OTHER THAN GENERAL ELECTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 301, is further amended by adding at the 
end the following new subsection:
    ``(l)(1) The maximum expenditures for a candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress in any election other than a general election may not exceed 
\1/3\ of the maximum applicable to the candidate in a general election 
under title V.
    ``(2) For purposes of limitations under this Act, any expenditure 
by a candidate referred to in paragraph (1), including an expenditure 
for the preparation, production, or presentation of communications 
through electronic media or in written form, shall, regardless of when 
the expenditure is made, be attributed to the appropriate general 
election, unless such expenditure is made solely for an election other 
than a general election.''.

           TITLE V--CONSIDERATION OF CONSTITUTIONAL AMENDMENT

SEC. 501. EXPEDITED CONSIDERATION OF CONSTITUTIONAL AMENDMENT.

    (a) In General.--If any provision of this Act or any amendment made 
by this Act is found unconstitutional by the Supreme Court, the 
provisions of section 2908 (other than subsection (a)) of the Defense 
Base Closure and Realignment Act of 1990 shall apply to the 
consideration of a joint resolution described in section 502 in the 
same manner as such provisions apply to a joint resolution described in 
section 2908(a) of such Act.
    (b) Special Rules.--For purposes of applying subsection (a) with 
respect to such provisions, the following rules shall apply:
            (1) Any reference to the Committee on Armed Services of the 
        House of Representatives shall be deemed a reference to the 
        Committee on the Judiciary of the House of Representatives and 
        any reference to the Committee on Armed Services of the Senate 
        shall be deemed a reference to the Committee on the Judiciary 
        of the Senate.
            (2) Any reference to the date on which the President 
        transmits a report shall be deemed a reference to the date on 
        which the Supreme Court finds a provision of this Act or an 
        amendment made by this Act unconstitutional.

SEC. 502. CONSTITUTIONAL AMENDMENT DESCRIBED.

    For purposes of section 501, a joint resolution described in this 
section is a joint resolution proposing the following text as an 
amendment to the Constitution of the United States:

                              ``Article --

    ``Section 1. Congress may provide for reasonable restrictions on 
contributions, expenditures, and other disbursements in campaigns for 
election for Federal office as necessary to protect the integrity of 
the electoral process.
    ``Section 2. Congress shall have power to enforce this article by 
appropriate legislation. No legislation enacted to enforce this article 
shall apply with respect to any election held after the last day of the 
year of the fourth Presidential election held after the date of the 
enactment of the legislation, unless the period in which such 
legislation is in effect is extended by an Act of Congress which is 
signed into law by the President.''.

                TITLE VI--GENERAL EFFECTIVE DATE; SUNSET

SEC. 601. GENERAL EFFECTIVE DATE; SUNSET.

    This Act and the amendments made by this Act--
            (1) except as otherwise specifically provided, shall take 
        effect January 1, 2007; and
            (2) shall remain in effect until December 31, 2020.
                                 <all>