[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6116 Reported in House (RH)]
Union Calendar No. 410
111th CONGRESS
2d Session
H. R. 6116
[Report No. 111-691, Part I]
To reform the financing of House elections, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 14, 2010
Mr. Larson of Connecticut (for himself, Mr. Jones, Mr. Capuano, Ms.
Pingree of Maine, Mr. Holt, Mr. Platts, Mr. Nadler of New York, Mr.
Cooper, Mr. Heinrich, Mr. Polis of Colorado, Ms. Edwards of Maryland,
and Mr. Doyle) introduced the following bill; which was referred to the
Committee on House Administration, and in addition to the Committee on
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 committee concerned
December 21, 2010
Reported from the Committee on House Administration
December 21, 2010
Referral to the Committee on Energy and Commerce extended for a period
ending not later than December 22, 2010
December 22, 2010
Additional sponsors: Ms. Zoe Lofgren of California, Mr. Gonzalez, Ms.
Hirono, Mr. Yarmuth, Ms. Woolsey, Mr. Costello, and Mr. Honda
December 22, 2010
The Committee on Energy and Commerce discharged; committed to the
Committee of the Whole House on the State of the Union and ordered to
be printed
_______________________________________________________________________
A BILL
To reform the financing of House 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fair Elections Now
Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and declarations.
TITLE I--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS
Sec. 101. Benefits and eligibility requirements for House candidates.
``TITLE V--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS
``Subtitle A--Benefits
``Sec. 501. Benefits for participating candidates.
``Sec. 502. Allocations from the Fund.
``Sec. 503. Matching payments for certain small dollar
contributions.
``Subtitle B--Eligibility and Certification
``Sec. 511. Eligibility.
``Sec. 512. Qualifying requirements.
``Sec. 513. Certification.
``Subtitle C--Requirements for Candidates Certified as Participating
Candidates
``Sec. 521. Contribution, expenditure, and fundraising
requirements.
``Sec. 522. Debate requirement.
``Sec. 523. Remitting unspent funds after election.
``Subtitle D--Administrative Provisions
``Sec. 531. Fair Elections Fund.
``Sec. 532. Fair Elections Oversight Board.
``Sec. 533. Administration by Commission.
``Sec. 534. Violations and penalties.
``Sec. 535. Election cycle defined.
Sec. 102. Transfer of portion of civil money penalties into Fair
Elections Fund.
Sec. 103. Prohibiting use of contributions by participating candidates
for purposes other than campaign for
election.
Sec. 104. Prohibition on joint fundraising committees.
Sec. 105. Limitation on coordinated expenditures by political party
committees with participating candidates.
Sec. 106. Deposit of proceeds from recovered spectrum auctions.
TITLE II--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
Sec. 201. Petition for certiorari.
Sec. 202. Filing by all candidates with Commission.
Sec. 203. Electronic filing of FEC reports.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Severability.
Sec. 302. Effective date.
SEC. 2. FINDINGS AND DECLARATIONS.
(a) Undermining of Democracy by Campaign Contributions From Private
Sources.--The House of Representatives finds and declares that the
current system of privately financed campaigns for election to the
House of Representatives has the capacity, and is often perceived by
the public, to undermine democracy in the United States by--
(1) creating a culture that fosters actual or perceived
conflicts of interest, by encouraging Members of the House to
accept large campaign contributions from private interests that
are directly affected by Federal legislation;
(2) diminishing or appearing to diminish Members'
accountability to constituents by compelling legislators to be
accountable to the major contributors who finance their
election campaigns;
(3) undermining the meaning of the right to vote by
allowing monied interests to have a disproportionate and unfair
influence within the political process;
(4) imposing large, unwarranted costs on taxpayers through
legislative and regulatory distortions caused by unequal access
to lawmakers for campaign contributors;
(5) making it difficult for some qualified candidates to
mount competitive House election campaigns;
(6) disadvantaging challengers and discouraging competitive
elections, because large campaign contributors tend to donate
their money to incumbent Members, thus causing House elections
to be less competitive; and
(7) burdening incumbents with a preoccupation with
fundraising and thus decreasing the time available to carry out
their public responsibilities.
(b) Enhancement of Democracy by Providing Allocations From the Fair
Elections Fund.--The House of Representatives finds and declares that
providing the option of the replacement of large private campaign
contributions with allocations from the Fair Elections Fund for all
primary, runoff, and general elections to the House of Representatives
would enhance American democracy by--
(1) reducing the actual or perceived conflicts of interest
created by fully private financing of the election campaigns of
public officials and restoring public confidence in the
integrity and fairness of the electoral and legislative
processes through a program which allows participating
candidates to adhere to substantially lower contribution limits
for contributors with an assurance that there will be
sufficient funds for such candidates to run viable electoral
campaigns;
(2) increasing the public's confidence in the
accountability of Members to the constituents who elect them,
which derives from the program's qualifying criteria to
participate in the voluntary program and the conclusions that
constituents may draw regarding candidates who qualify and
participate in the program;
(3) helping to reduce the ability to make large campaign
contributions as a determinant of a citizen's influence within
the political process by facilitating the expression of support
by voters at every level of wealth, encouraging political
participation, incentivizing participation on the part of
Members through the matching of small dollar contributions;
(4) potentially saving taxpayers billions of dollars that
may be (or that are perceived to be) currently allocated based
upon legislative and regulatory agendas skewed by the influence
of campaign contributions;
(5) creating genuine opportunities for all Americans to run
for the House of Representatives and encouraging more
competitive elections;
(6) encouraging participation in the electoral process by
citizens of every level of wealth; and
(7) freeing Members from the incessant preoccupation with
raising money, and allowing them more time to carry out their
public responsibilities.
TITLE I--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS
SEC. 101. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR HOUSE 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--FAIR ELECTIONS FINANCING OF HOUSE ELECTION CAMPAIGNS
``Subtitle A--Benefits
``SEC. 501. BENEFITS FOR PARTICIPATING CANDIDATES.
``(a) In General.--If a candidate for election to the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress is a participating candidate under this title with respect to
an election for such office, the candidate shall be entitled to
payments under this title, to be used only for authorized expenditures
in connection with the election.
``(b) Types of Payments.--The payments to which a participating
candidate is entitled under this section consist of--
``(1) allocations from the Fair Elections Fund, as provided
in section 502; and
``(2) payments from the Fair Elections Fund to match
certain small dollar contributions, as provided in section 503.
``SEC. 502. ALLOCATIONS FROM THE FUND.
``(a) Amount of Allocations.--
``(1) Primary election allocation; initial allocation.--
Except as provided in paragraph (6), the Commission shall make
an allocation from the Fair Elections Fund established under
section 531 to a candidate who is certified as a participating
candidate with respect to a primary election in an amount equal
to 40 percent of the base amount.
``(2) Primary runoff election allocation.--The Commission
shall make an allocation from the Fund to a candidate who is
certified as a participating candidate with respect to a
primary runoff election in an amount equal to 25 percent of the
amount the participating candidate was eligible to receive
under this section for the primary election.
``(3) General election allocation.--Except as provided in
paragraph (6), the Commission shall make an allocation from the
Fund to a candidate who is certified as a participating
candidate with respect to a general election in an amount equal
to 60 percent of the base amount.
``(4) General runoff election allocation.--The Commission
shall make an allocation from the Fund to a candidate who is
certified as a participating candidate with respect to a
general runoff election in an amount equal to 25 percent of the
base amount.
``(5) Recount allocation.--If the appropriate State or
local election official conducts a recount of an election, the
Commission shall make an allocation from the Fund to a
participating candidate for expenses relating to the recount in
an amount equal to 25 percent of the amount the participating
candidate was eligible to receive under this section for the
election involved.
``(6) Uncontested elections.--
``(A) In general.--In the case of a primary or
general election that is an uncontested election, the
Commission shall make an allocation from the Fund to a
participating candidate for such election in an amount
equal to 25 percent of the allocation for that election
with respect to such candidate.
``(B) Uncontested election defined.--For purposes
of this subparagraph, an election is uncontested if not
more than 1 candidate has campaign funds (including
payments from the Fund) in an amount equal to or
greater than 10 percent of the allocation a candidate
would be entitled to receive under this section for
that election (determined without regard to this
paragraph).
``(b) Base Amount.--The base amount is an amount equal to 80
percent of the national average disbursements of the cycle by winning
candidates for the office of Representative in, or Delegate or Resident
Commissioner to, the Congress in the last 2 election cycles.
``(c) Timing; Method of Payment.--
``(1) Timing.--The Commission shall make the allocations
required under subsection (a) to a participating candidate--
``(A) in the case of amounts provided under
subsection (a)(1), not later than 48 hours after the
date on which such candidate is certified as a
participating candidate under section 513;
``(B) in the case of a general election, not later
than 48 hours after--
``(i) the date of the certification of the
results of the primary election or the primary
runoff election; or
``(ii) in any case in which there is no
primary election, the date the candidate
qualifies to be placed on the ballot;
``(C) in the case of a primary runoff election or a
general runoff election, not later than 48 hours after
the certification of the results of the primary
election or the general election, as the case may be;
and
``(D) in the case of a recount allocation, not
later than 48 hours after the appropriate State or
local election official orders the holding of the
recount.
``(2) Method of payment.--The Commission shall distribute
funds available to participating candidates under this section
through the use of an electronic funds exchange or a debit
card.
``SEC. 503. MATCHING PAYMENTS FOR CERTAIN SMALL DOLLAR CONTRIBUTIONS.
``(a) In General.--The Commission shall pay to each participating
candidate an amount equal to 400 percent of the amount of qualified
small dollar contributions received by the candidate from individuals
who are residents of the State in which such participating candidate is
seeking election.
``(b) Limitation.--The maximum payment under this section shall be
the greater of--
``(1) 200 percent of the allocation under paragraphs (1)
through (4) of section 502(a) for that election with respect to
such candidate; or
``(2) the percentage of the allocation determined by the
Commission under section 532(c)(2).
``(c) Time of Payment.--The Commission shall make payments under
this section not later than 2 business days after the receipt of a
report made under subsection (d).
``(d) Reports.--
``(1) In general.--Each participating candidate shall file
reports of receipts of qualified small dollar contributions at
such times and in such manner as the Commission may by
regulations prescribe.
``(2) Contents of reports.--Each report under this
subsection shall disclose--
``(A) the amount of each qualified small dollar
contribution received by the candidate;
``(B) the amount of each qualified small dollar
contribution received by the candidate from a resident
of the State in which the candidate is seeking
election; and
``(C) the name, address, and occupation of each
individual who made a qualified small dollar
contribution to the candidate.
``(3) Frequency of reports.--Reports under this subsection
shall be made no more frequently than--
``(A) once every month until the date that is 90
days before the date of the election;
``(B) once every week after the period described in
subparagraph (A) and until the date that is 21 days
before the election; and
``(C) once every day after the period described in
subparagraph (B).
``(4) Limitation on regulations.--The Commission may not
prescribe any regulations with respect to reporting under this
subsection with respect to any election after the date that is
180 days before the date of such election.
``(e) Appeals.--The Commission shall provide a written explanation
with respect to any denial of any payment under this section and shall
provide for the opportunity for review and reconsideration within 5
business days of such denial.
``(f) Qualified Small Dollar Contribution Defined.--The term
`qualified small dollar contribution' means, with respect to a
participating candidate, any contribution (or a series of
contributions)--
``(1) which is not a qualifying contribution (or does not
include a qualifying contribution);
``(2) which is made by an individual who is not prohibited
from making a contribution under this Act; and
``(3) the aggregate amount of which does not exceed the
greater of--
``(A) $100 per election; or
``(B) the amount determined by the Fair Elections
Oversight Board under section 532(c)(2).
``Subtitle B--Eligibility and Certification
``SEC. 511. ELIGIBILITY.
``(a) In General.--A candidate for the office of Representative in,
or Delegate or Resident Commissioner to, the Congress is eligible to be
certified as a participating candidate under this title with respect to
an election if the candidate meets the following requirements:
``(1) During the election cycle for the office involved,
the candidate files with the Commission a statement of intent
to seek certification as a participating candidate.
``(2) The candidate meets the qualifying requirements of
section 512.
``(3) Not later than the last day of the Fair Elections
qualifying period, the candidate files with the Commission an
affidavit signed by the candidate and the treasurer of the
candidate's principal campaign committee declaring that the
candidate--
``(A) has complied and, if certified, will comply
with the contribution and expenditure requirements of
section 521;
``(B) if certified, will comply with the debate
requirements of section 522;
``(C) if certified, will run only as a
participating candidate for all elections for the
office that such candidate is seeking during the
election cycle; and
``(D) has either qualified or will take steps to
qualify under State law to be on the ballot.
``(b) General Election.--Notwithstanding subsection (a), a
candidate shall not be eligible to receive an allocation from the Fund
for a general election or a general runoff election unless the
candidate's party nominated the candidate to be placed on the ballot
for the general election or the candidate is otherwise qualified to be
on the ballot under State law.
``(c) Fair Elections Qualifying Period Defined.--The term `Fair
Elections qualifying period' means, with respect to any candidate for
the office of Representative in, or Delegate or Resident Commissioner
to, the Congress, the 120-day period (during the election cycle for
such office) which begins on the date on which the candidate files a
statement of intent under section 511(a)(1), except that such period
may not continue after the date that is 60 days before--
``(1) the date of the primary election; or
``(2) in the case of a State that does not hold a primary
election, the date prescribed by State law as the last day to
qualify for a position on the general election ballot.
``SEC. 512. QUALIFYING REQUIREMENTS.
``(a) Receipt of Qualifying Contributions.--A candidate for the
office of Representative in, or Delegate or Resident Commissioner to,
the Congress meets the requirement of this section if, during the Fair
Elections qualifying period described in section 511(c), the candidate
obtains--
``(1) a single qualifying contribution from a number of
individuals equal to or greater than the lesser of--
``(A) .25% of the voting age population of the
State involved (as reported in the most recent
decennial census), or
``(B) 1,500; and
``(2) a total dollar amount of qualifying contributions
equal to or greater than $50,000.
``(b) Requirements Relating to Receipt of Qualifying
Contribution.--Each qualifying contribution--
``(1) may be made by means of a personal check, money
order, debit card, credit card, or electronic payment account;
``(2) shall be accompanied by a signed statement
containing--
``(A) the contributor's name and the contributor's
address in the State in which the primary residence of
the contributor is located;
``(B) an oath declaring that the contributor--
``(i) understands that the purpose of the
qualifying contribution is to show support for
the candidate so that the candidate may qualify
for Fair Elections financing;
``(ii) is making the contribution in his or
her own name and from his or her own funds;
``(iii) has made the contribution
willingly; and
``(iv) has not received any thing of value
in return for the contribution; and
``(3) shall be acknowledged by a receipt that is sent to
the contributor with a copy kept by the candidate for the
Commission and a copy kept by the candidate for the election
authorities in the State with respect to which the candidate is
seeking election.
``(c) Verification of Qualifying Contributions.--The Commission
shall establish procedures for the auditing and verification of
qualifying contributions to ensure that such contributions meet the
requirements of this section.
``(d) Prohibiting Payment on Commission Basis of Individuals
Collecting Qualifying Contributions.--No person may be paid a
commission on a per qualifying contribution basis for collecting
qualifying contributions.
``(e) Qualifying Contribution Defined.--In this section, the term
`qualifying contribution' means, with respect to a candidate, a
contribution that--
``(1) is in an amount that is--
``(A) not less than the greater of $5 or the amount
determined by the Commission under section 532(c)(2),
and
``(B) not more than the greater of $100 or the
amount determined by the Commission under section
532(c)(2);
``(2) is made by an individual--
``(A) who has a primary residence in the State in
which such Candidate is seeking election, and
``(B) who is not otherwise prohibited from making a
contribution under this Act;
``(3) is made during the Fair Elections qualifying period
described in section 511(c); and
``(4) meets the requirements of subsection (b).
``SEC. 513. CERTIFICATION.
``(a) Deadline and Notification.--
``(1) In general.--Not later than 5 days after a candidate
files an affidavit under section 511(a)(3), the Commission
shall--
``(A) determine whether or not the candidate meets
the requirements for certification as a participating
candidate;
``(B) if the Commission determines that the
candidate meets such requirements, certify the
candidate as a participating candidate; and
``(C) notify the candidate of the Commission's
determination.
``(2) Deemed certification for all elections in election
cycle.--If the Commission certifies a candidate as a
participating candidate with respect to the first election of
the election cycle involved, the Commissioner shall be deemed
to have certified the candidate as a participating candidate
with respect to all subsequent elections of the election cycle.
``(b) Revocation of Certification.--
``(1) In general.--The Commission may revoke a
certification under subsection (a) if--
``(A) a candidate fails to qualify to appear on the
ballot at any time after the date of certification
(other than a candidate certified as a participating
candidate with respect to a primary election who fails
to qualify to appear on the ballot for a subsequent
election in that election cycle); or
``(B) a candidate otherwise fails to comply with
the requirements of this title, including any
regulatory requirements prescribed by the Commission.
``(2) Repayment of benefits.--If certification is revoked
under paragraph (1), the candidate shall repay to the Fair
Elections Fund established under section 531 an amount equal to
the value of benefits received under this title with respect to
the election cycle involved plus interest (at a rate determined
by the Commission) on any such amount received.
``(c) Participating Candidate Defined.--In this title, a
`participating candidate' means a candidate for the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress who is certified under this section as eligible to receive
benefits under this title.
``Subtitle C--Requirements for Candidates Certified as Participating
Candidates
``SEC. 521. CONTRIBUTION, EXPENDITURE, AND FUNDRAISING REQUIREMENTS.
``(a) Contributions.--
``(1) Permitted sources of contributions.--Except as
provided in subsection (c), a candidate who is certified as a
participating candidate with respect to an election shall, with
respect to all elections occurring during the election cycle
for the office involved, accept no contributions from any
source (including an unexpended contribution received by the
candidate with respect to a previous election or a contribution
made by any political committee or multicandidate committee)
other than--
``(A) qualifying contributions described in section
512;
``(B) qualified small dollar contributions
described in section 503;
``(C) allocations under section 502; and
``(D) payments under section 503.
``(2) Contributions for leadership and related pacs.--A
political committee of a participating candidate which is not
an authorized committee of such candidate may accept
contributions other than contributions described in paragraph
(1) from any person if--
``(A) the aggregate amount of the contributions
from such person for any election during the election
cycle does not exceed $100; and
``(B) no portion of such contributions is disbursed
in connection with the campaign of the participating
candidate.
``(b) Expenditures.--
``(1) Permitted sources for expenditures.--Except as
provided in subsection (c), a candidate who is certified as a
participating candidate with respect to an election shall, with
respect to all elections occurring during the election cycle
for the office involved--
``(A) make no expenditures from any amounts other
than--
``(i) qualifying contributions described in
section 512;
``(ii) qualified small dollar contributions
described in section 503;
``(iii) allocations under section 502; and
``(iv) payments under section 503; and
``(B) make no expenditures from personal funds or
the funds of any immediate family member of the
candidate (other than funds received through qualified
small dollar contributions and qualifying
contributions).
``(2) Immediate family member defined.--In paragraph
(1)(B), the term `immediate family' means, with respect to a
candidate--
``(A) the candidate's spouse;
``(B) a child, stepchild, parent, grandparent,
brother, half-brother, sister, or half-sister of the
candidate or the candidate's spouse; and
``(C) the spouse of any person described in
subparagraph (B).
``(c) Exceptions.--
``(1) Exception for contributions received prior to filing
of statement of intent.--A candidate who has accepted
contributions that are not qualified small dollar
contributions, qualifying contributions, or contributions
described in paragraph (a)(2) prior to the date the candidate
files a statement of intent under section 511(a)(1) is not in
violation of subsection (a), but only if all such contributions
are--
``(A) returned to the contributor;
``(B) submitted to the Commission for deposit in
the Fair Elections Fund established under section 531;
or
``(C) spent in accordance with paragraph (2).
``(2) Exception for expenditures made prior to filing of
statement of intent.--If a candidate has made expenditures
prior to the date the candidate files a statement of intent
under section 511(a)(1) that the candidate is prohibited from
making under subsection (b), the candidate is not in violation
of such subsection if the aggregate amount of the prohibited
expenditures is less than 20 percent of the amount of an
initial allocation to a candidate under section 502(a)(1).
``(3) Exception for campaign surpluses from a previous
election.--Notwithstanding paragraph (1), unexpended
contributions received by the candidate or the an authorized
committee of the candidate with respect to a previous election
may be retained, but only if the candidate places the funds in
escrow and refrains from raising additional funds for or
spending funds from that account during the election cycle in
which a candidate is a participating candidate.
``(4) Exception for contributions received before the
effective date of this title.--Contributions received and
expenditures made by the candidate or an authorized committee
of the candidate prior to the effective date of this title
shall not constitute a violation of subsection (a) or (b).
Unexpended contributions shall be treated the same as campaign
surpluses under paragraph (3), and expenditures made shall
count against the limit in paragraph (2).
``(d) Special Rule for Coordinated Party Expenditures.--For
purposes of this section, a payment made by a political party in
coordination with a participating candidate shall not be treated as a
contribution to or as an expenditure made by the participating
candidate.
``SEC. 522. DEBATE REQUIREMENT.
``A candidate who is certified as a participating candidate with
respect to an election shall, during the election cycle for the office
involved, participate in at least--
``(1) 1 public debate before the primary election with
other participating candidates and other willing candidates
from the same party and seeking the same nomination as such
candidate; and
``(2) 2 public debates before the general election with
other participating candidates and other willing candidates
seeking the same office as such candidate.
``SEC. 523. REMITTING UNSPENT FUNDS AFTER ELECTION.
``(a) In General.--Not later than the date that is 60 days after
the last election for which a candidate certified as a participating
candidate qualifies to be on the ballot during the election cycle
involved, such participating candidate shall remit to the Commission
for deposit in the Fair Elections Fund established under section 531 an
amount equal to the lesser of--
``(1) the amount of money in the candidate's campaign
account; or
``(2) the sum of the allocations received by the candidate
under section 502 and the payments received by the candidate
under section 503.
``(b) Exception for Expenditures Incurred but Not Paid as of Date
of Remittance.--
``(1) In general.--Subject to subsection (a), a candidate
may withhold from the amount required to be remitted under
paragraph (1) of such subsection the amount of any authorized
expenditures which were incurred in connection with the
candidate's campaign but which remain unpaid as of the deadline
applicable to the candidate under such subsection, except that
any amount withheld pursuant to this paragraph shall be
remitted to the Commission not later than 120 days after the
date of the election to which such subsection applies.
``(2) Documentation required.--A candidate may withhold an
amount of an expenditure pursuant to paragraph (1) only if the
candidate submits documentation of the expenditure and the
amount to the Commission not later than the deadline applicable
to the candidate under subsection (a).
``Subtitle D--Administrative Provisions
``SEC. 531. FAIR ELECTIONS FUND.
``(a) Establishment.--There is established in the Treasury a fund
to be known as the `Fair Elections Fund'.
``(b) Amounts Held by Fund.--The Fund shall consist of the
following amounts:
``(1) Appropriated amounts.--Amounts appropriated to the
Fund, including trust fund amounts appropriated pursuant to
applicable provisions of the Internal Revenue Code of 1986.
``(2) Voluntary contributions.--Voluntary contributions to
the Fund.
``(3) Transfers resulting from payment of civil
penalties.--Amounts transferred into the Fund pursuant to
section 309(a)(13).
``(4) Proceeds from recovered spectrum auctions.--Amounts
deposited pursuant to section 309(j)(8)(E)(ii)(II) of the
Communications Act of 1934.
``(5) Other deposits.--Amounts deposited into the Fund
under--
``(A) section 521(a)(3) (relating to exceptions to
contribution requirements);
``(B) section 523 (relating to remittance of
allocations from the Fund);
``(C) section 534 (relating to violations); and
``(D) any other section of this Act.
``(6) Investment returns.--Interest on, and the proceeds
from, the sale or redemption of, any obligations held by the
Fund under subsection (c).
``(c) Investment.--The Commission shall invest portions of the Fund
in obligations of the United States in the same manner as provided
under section 9602(b) of the Internal Revenue Code of 1986.
``(d) Use of Fund.--
``(1) In general.--The sums in the Fund shall be used to
provide benefits to participating candidates as provided in
subtitle A.
``(2) Insufficient amounts.--Under regulations established
by the Commission, rules similar to the rules of section
9006(c) of the Internal Revenue Code of 1986 shall apply.
``SEC. 532. FAIR ELECTIONS OVERSIGHT BOARD.
``(a) Establishment.--There is established within the Federal
Election Commission an entity to be known as the `Fair Elections
Oversight Board'.
``(b) Structure and Membership.--
``(1) In general.--The Board shall be composed of 5 members
appointed by the President, of whom--
``(A) 2 shall be appointed after consultation with
the Majority Leader of the House of Representatives;
``(B) 2 shall be appointed after consultation with
the Minority Leader of the House of Representatives;
and
``(C) 1 shall be appointed upon the recommendation
of the members appointed under subparagraphs (A) and
(B).
``(2) Qualifications.--
``(A) In general.--The members shall be individuals
who are nonpartisan and, by reason of their education,
experience, and attainments, exceptionally qualified to
perform the duties of members of the Board.
``(B) Prohibition.--No member of the Board may be--
``(i) an employee of the Federal
government;
``(ii) a registered lobbyist or an
individual who was a registered lobbyist at any
time during the 2-year period preceding
appointment to the Board; or
``(iii) an officer or employee of a
political party or political campaign.
``(3) Date.--Members of the Board shall be appointed not
later than 60 days after the date of the enactment of this Act.
``(4) Terms.--A member of the Board shall be appointed for
a term of 5 years.
``(5) Vacancies.--A vacancy on the Board shall be filled
not later than 30 calendar days after the date on which the
Board is given notice of the vacancy, in the same manner as the
original appointment. The individual appointed to fill the
vacancy shall serve only for the unexpired portion of the term
for which the individual's predecessor was appointed.
``(6) Chairperson.--The Board shall designate a Chairperson
from among the members of the Board.
``(c) Duties and Powers.--
``(1) Administration.--The Board shall have such duties and
powers as the Commission may prescribe, including the power to
administer the provisions of this title.
``(2) Review of fair elections financing.--
``(A) In general.--After each regularly scheduled
general election for Federal office, the Board shall
conduct a comprehensive review of the Fair Elections
financing program under this title, including--
``(i) the maximum dollar amount of
qualified small dollar contributions under
section 503(f);
``(ii) the maximum and minimum dollar
amounts for qualifying contributions under
section 512(d);
``(iii) the number and value of qualifying
contributions a candidate is required to obtain
under section 512(a) to be eligible for
certification as a participating candidate;
``(iv) the amount of allocations that
candidates may receive under section 502;
``(v) the maximum amount of payments a
candidate may receive under section 503;
``(vi) the overall satisfaction of
participating candidates and the American
public with the program; and
``(vii) such other matters relating to
financing of House of Representatives campaigns
as the Board determines are appropriate.
``(B) Criteria for review.--In conducting the
review under subparagraph (A), the Board shall consider
the following:
``(i) Qualifying contributions and
qualified small dollar contributions.--The
Board shall consider whether the number and
dollar amount of qualifying contributions
required and maximum dollar amount for such
qualifying contributions and qualified small
dollar contributions strikes a balance
regarding the importance of voter involvement,
the need to assure adequate incentives for
participating, and fiscal responsibility,
taking into consideration the number of primary
and general election participating candidates,
the electoral performance of those candidates,
program cost, and any other information the
Board determines is appropriate.
``(ii) Review of program benefits.--The
Board shall consider whether the totality of
the amount of funds allowed to be raised by
participating candidates (including through
qualifying contributions and small dollar
contributions), allocations under section 502,
and payments under section 503 are sufficient
for voters in each State to learn about the
candidates to cast an informed vote, taking
into account the historic amount of spending by
winning candidates, media costs, primary
election dates, and any other information the
Board determines is appropriate.
``(C) Adjustment of amounts.--
``(i) In general.--Based on the review
conducted under subparagraph (A), the Board
shall provide for the adjustments of the
following amounts:
``(I) the maximum dollar amount of
qualified small dollar contributions
under section 503(f);
``(II) the maximum and minimum
dollar amounts for qualifying
contributions under section 512(d);
``(III) the number and value of
qualifying contributions a candidate is
required to obtain under section 512(a)
to be eligible for certification as a
participating candidate;
``(IV) the base amount for
candidates under section 502(b); and
``(V) the maximum amount of
matching contributions a candidate may
receive under section 503(b).
``(ii) Regulations.--The Commission shall
promulgate regulations providing for the
adjustments made by the Board under clause (i).
``(D) Report.--Not later than March 30 following
any general election for Federal office, the Board
shall submit a report to Congress on the review
conducted under paragraph (1). Such report shall
contain a detailed statement of the findings,
conclusions, and recommendations of the Board based on
such review.
``(d) Meetings and Hearings.--
``(1) Meetings.--The Board may hold such hearings, sit and
act at such times and places, take such testimony, and receive
such evidence as the Board considers advisable to carry out the
purposes of this Act.
``(2) Quorum.--Three members of the Board shall constitute
a quorum for purposes of voting, but a quorum is not required
for members to meet and hold hearings.
``(e) Reports.--Not later than March 30, 2011, and every 2 years
thereafter, the Board shall submit to the Committee on House
Administration of the House of Representatives a report documenting,
evaluating, and making recommendations relating to the administrative
implementation and enforcement of the provisions of this title.
``(f) Administration.--
``(1) Compensation of members.--
``(A) In general.--Each member, other than the
Chairperson, shall be paid at a rate equal to the daily
equivalent of the minimum annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
``(B) Chairperson.--The Chairperson shall be paid
at a rate equal to the daily equivalent of the minimum
annual rate of basic pay prescribed for level III of
the Executive Schedule under section 5314 of title 5,
United States Code.
``(2) Personnel.--
``(A) Director.--The Board shall have a staff
headed by an Executive Director. The Executive Director
shall be paid at a rate equivalent to a rate
established for the Senior Executive Service under
section 5382 of title 5, United States Code.
``(B) Staff appointment.--With the approval of the
Chairperson, the Executive Director may appoint such
personnel as the Executive Director and the Board
determines to be appropriate.
``(C) Experts and consultants.--With the approval
of the Chairperson, the Executive Director may procure
temporary and intermittent services under section
3109(b) of title 5, United States Code.
``(D) Detail of government employees.--Upon the
request of the Chairperson, the head of any Federal
agency may detail, without reimbursement, any of the
personnel of such agency to the Board to assist in
carrying out the duties of the Board. Any such detail
shall not interrupt or otherwise affect the civil
service status or privileges of the Federal employee.
``(E) Other resources.--The Board shall have
reasonable access to materials, resources, statistical
data, and other information from the Library of
Congress and other agencies of the executive and
legislative branches of the Federal Government. The
Chairperson of the Board shall make requests for such
access in writing when necessary.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out the purposes of
this subtitle.
``SEC. 533. ADMINISTRATION BY COMMISSION.
``The Commission shall prescribe regulations to carry out the
purposes of this title, including regulations--
``(1) to establish procedures for--
``(A) verifying the amount of valid qualifying
contributions with respect to a candidate;
``(B) effectively and efficiently monitoring and
enforcing the limits on the raising of qualified small
dollar contributions;
``(C) effectively and efficiently monitoring and
enforcing the limits on the use of personal funds by
participating candidates; and
``(D) monitoring the use of allocations from the
Fair Elections Fund established under section 531 and
matching contributions under this title through audits
of not fewer than \1/3\ of all participating candidates
or other mechanisms; and
``(2) regarding the conduct of debates in a manner
consistent with the best practices of States that provide
public financing for elections.
``SEC. 534. VIOLATIONS AND PENALTIES.
``(a) Civil Penalty for Violation of Contribution and Expenditure
Requirements.--If a candidate who has been certified as a participating
candidate accepts a contribution or makes an expenditure that is
prohibited under section 521, the Commission shall assess a civil
penalty against the candidate in an amount that is not more than 3
times the amount of the contribution or expenditure. Any amounts
collected under this subsection shall be deposited into the Fair
Elections Fund established under section 531.
``(b) Repayment for Improper Use of Fair Elections Fund.--
``(1) In general.--If the Commission determines that any
benefit made available to a participating candidate was not
used as provided for in this title or that a participating
candidate has violated any of the dates for remission of funds
contained in this title, the Commission shall so notify the
candidate and the candidate shall pay to the Fund an amount
equal to--
``(A) the amount of benefits so used or not
remitted, as appropriate; and
``(B) interest on any such amounts (at a rate
determined by the Commission).
``(2) Other action not precluded.--Any action by the
Commission in accordance with this subsection shall not
preclude enforcement proceedings by the Commission in
accordance with section 309(a), including a referral by the
Commission to the Attorney General in the case of an apparent
knowing and willful violation of this title.
``SEC. 535. ELECTION CYCLE DEFINED.
``In this title, the term `election cycle' means, with respect to
an election for the office of Representative in, or Delegate or
Resident Commissioner to, the Congress, the period beginning on the day
after the date of the most recent general election for that office (or,
if the general election resulted in a runoff election, the date of the
runoff election) and ending on the date of the next general election
for that office (or, if the general election resulted in a runoff
election, the date of the runoff election).''.
SEC. 102. TRANSFER OF PORTION OF CIVIL MONEY PENALTIES INTO FAIR
ELECTIONS FUND.
Section 309(a) of the Federal Election Campaign Act of 1971 (2
U.S.C. 437g(a)) is amended by adding at the end the following new
paragraph:
``(13) Upon receipt in the General Fund of the Treasury of any
payment attributable to a civil money penalty imposed under this
subsection, there shall be transferred to the Fair Elections Fund
established under section 531 an amount equal to 50 percent of the
amount of such payment.''.
SEC. 103. PROHIBITING USE OF CONTRIBUTIONS BY PARTICIPATING CANDIDATES
FOR PURPOSES OTHER THAN CAMPAIGN FOR ELECTION.
Section 313 of the Federal Election Campaign Act of 1971 (2 U.S.C.
439a) is amended by adding at the end the following new subsection:
``(d) Restrictions on Permitted Uses of Funds by Candidates
Receiving Fair Elections Financing.--Notwithstanding paragraphs (2),
(3), or (4) of subsection (a), if a candidate for election for the
office of Representative in, or Delegate or Resident Commissioner to,
the Congress is certified as a participating candidate under title V
with respect to the election, any contribution which the candidate is
permitted to accept under such title may be used only for authorized
expenditures in connection with the candidate's campaign for such
office.''.
SEC. 104. PROHIBITION ON JOINT FUNDRAISING COMMITTEES.
Section 302(e) of the Federal Election Campaign Act of 1971 (2
U.S.C. 432(e)) is amended by adding at the end the following new
paragraph:
``(6) No authorized committee of a candidate may establish
a joint fundraising committee with a political committee other
than an authorized committee of a candidate.''.
SEC. 105. LIMITATION ON COORDINATED EXPENDITURES BY POLITICAL PARTY
COMMITTEES WITH PARTICIPATING CANDIDATES.
(a) In General.--Section 315(d)(3) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441a(d)) is amended--
(1) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(2) by inserting before subparagraph (B), as redesignated
by paragraph (1), the following new subparagraph:
``(A) in the case of a candidate for election to
the office of Representative in, or Delegate or
Resident Commissioner to, the Congress who is certified
as a participating candidate under title V, the lesser
of--
``(i) 10 percent of the allocation that the
participating candidate is eligible to receive
for the general election under section 502(a);
or
``(ii) the amount which would (but for this
subparagraph) apply with respect to such
candidate under subparagraph (B);''.
(b) Conforming Amendment.--Section 315(d)(3) of such Act (2 U.S.C.
441a(d)(3)) is amended--
(1) in subparagraph (B) (as redesignated by subsection
(a)), by inserting ``who is not certified as a participating
candidate under title V'' after ``only one Representative'';
and
(2) in subparagraph (C) (as redesignated by subsection
(a)), by inserting ``who is not certified as a participating
candidate under title V'' after ``any other State''.
SEC. 106. DEPOSIT OF PROCEEDS FROM RECOVERED SPECTRUM AUCTIONS.
Section 309(j)(8)(E)(ii) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)(E)(ii)) is amended--
(1) by striking ``deposited in'' and inserting the
following: ``deposited as follows:
``(I) 90 percent of such proceeds
deposited in''; and
(2) by adding at the end the following:
``(II) 10 percent of such proceeds
deposited in the Fair Elections Fund
established under section 531 of the
Federal Election Campaign Act of
1971.''.
TITLE II--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
SEC. 201. PETITION FOR CERTIORARI.
Section 307(a)(6) of the Federal Election Campaign Act of 1971 (2
U.S.C. 437d(a)(6)) is amended by inserting ``(including a proceeding
before the Supreme Court on certiorari)'' after ``appeal''.
SEC. 202. FILING BY ALL CANDIDATES WITH COMMISSION.
Section 302(g) of the Federal Election Campaign Act of 1971 (2
U.S.C. 432(g)) is amended to read as follows:
``(g) Filing With the Commission.--All designations,
statements, and reports required to be filed under this Act
shall be filed with the Commission.''.
SEC. 203. ELECTRONIC FILING OF FEC REPORTS.
Section 304(a)(11) of the Federal Election Campaign Act of 1971 (2
U.S.C. 434(a)(11)) is amended--
(1) in subparagraph (A), by striking ``under this Act--''
and all that follows and inserting ``under this Act shall be
required to maintain and file such designation, statement, or
report in electronic form accessible by computers.'';
(2) in subparagraph (B), by striking ``48 hours'' and all
that follows through ``filed electronically)'' and inserting
``24 hours''; and
(3) by striking subparagraph (D).
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or the
application of a provision or amendment to any person or circumstance,
is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.
SEC. 302. EFFECTIVE DATE.
Except as otherwise provided for in this Act, this Act and the
amendments made by this Act shall take effect on January 1, 2011.
Union Calendar No. 410
111th CONGRESS
2d Session
H. R. 6116
[Report No. 111-691, Part I]
_______________________________________________________________________
A BILL
To reform the financing of House elections, and for other purposes.
_______________________________________________________________________
December 22, 2010
The Committee on Energy and Commerce discharged; committed to the
Committee of the Whole House on the State of the Union and ordered to
be printed