[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6426 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6426

   To reform the financing of Congressional elections by encouraging 
  grassroots participation in the funding of campaigns, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2012

Mr. Sarbanes (for himself, Mr. Boswell, Mr. Brady of Pennsylvania, Mr. 
    Capuano, Mr. Conyers, Mr. Deutch, Mr. Dingell, Mr. Doggett, Ms. 
 Edwards, Mr. Ellison, Mr. Engel, Mr. Holt, Mr. Lewis of Georgia, Mr. 
 McGovern, Mr. George Miller of California, Mr. Grijalva, Mr. Nadler, 
Ms. Pingree of Maine, Mr. Polis, Mr. Price of North Carolina, Ms. Linda 
 T. Sanchez of California, Ms. Schakowsky, Mr. Scott of Virginia, Mr. 
Sires, Mr. Tonko, Mr. Van Hollen, Mr. Welch, Mr. Yarmuth, Ms. Bonamici, 
 Ms. DeLauro, Mr. Larson of Connecticut, and Mr. Courtney) introduced 
   the following bill; which was referred to the Committee on House 
Administration, and in addition to the Committees on Ways and Means and 
Energy and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To reform the financing of Congressional elections by encouraging 
  grassroots participation in the funding of campaigns, 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 ``Grassroots 
Democracy Act of 2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
       TITLE I--GRASSROOTS PARTICIPATION IN FUNDING OF ELECTIONS

                Subtitle A--Grassroots Democracy Dollars

Sec. 101. Refundable credit for grassroots contributions to Federal 
                            congressional candidates.
         Subtitle B--Grassroots Democracy Coupon Pilot Program

Sec. 111. Establishment of pilot program.
Sec. 112. Reports to Congress.
   TITLE II--GRASSROOTS FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

Sec. 201. Benefits and eligibility requirements for candidates.
  ``TITLE V--GRASSROOTS FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

        ``Sec. 501. Benefits for participating candidates.
        ``Sec. 502. Procedures for making payments.
        ``Sec. 503. Use of funds.
        ``Sec. 504. Qualified grassroots contributions described.
              ``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 and expenditure requirements.
        ``Sec. 522. Administration of campaign.
        ``Sec. 523. Preventing unnecessary spending of public funds.
        ``Sec. 524. Remitting unspent funds after election.
 ``Subtitle D--Supplemental Grassroots Democracy People's Fund Payments

        ``Sec. 531. Eligibility of participating candidates for 
                            payments.
        ``Sec. 532. Amount of payment; use of funds.
        ``Sec. 533. Severability.
                ``Subtitle E--Administrative Provisions

        ``Sec. 541. Grassroots Democracy Fund.
        ``Sec. 542. Grassroots Democracy Advisory Commission.
        ``Sec. 543. Administration by Commission.
        ``Sec. 544. Violations and penalties.
        ``Sec. 545. Election cycle defined.
Sec. 202. Prohibiting use of contributions by participating candidates 
                            for purposes other than campaign for 
                            election.
                TITLE III--OTHER ADMINISTRATIVE REFORMS

Sec. 301. Expanding requirement to disclose bundlers who are registered 
                            lobbyists to all bundlers.
Sec. 302. Expansion of period for treatment of communications as 
                            electioneering communications.
Sec. 303. User fees for committees and bundlers.
Sec. 304. Petition for certiorari.
Sec. 305. Filing by all candidates with Commission.
Sec. 306. Electronic filing of FEC reports.
Sec. 307. Effective date.
                           TITLE IV--OFFSETS

Sec. 401. Reform of tax rules related to political organizations.
Sec. 402. Voluntary contributions to the Grassroots Democracy Fund.
           TITLE V--EXPANDING CANDIDATE ACCESS TO ADVERTISING

Sec. 501. Broadcasts by or on behalf of candidates.

       TITLE I--GRASSROOTS PARTICIPATION IN FUNDING OF ELECTIONS

                Subtitle A--Grassroots Democracy Dollars

SEC. 101. REFUNDABLE CREDIT FOR GRASSROOTS CONTRIBUTIONS TO FEDERAL 
              CONGRESSIONAL CANDIDATES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 36B the following new section:

``SEC. 36C. CREDIT FOR GRASSROOTS CONTRIBUTIONS TO FEDERAL 
              CONGRESSIONAL CANDIDATES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle an amount 
equal to the qualified grassroots Federal congressional campaign 
contributions paid or incurred by the taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The credit allowed under 
        subsection (a) to any taxpayer with respect to any taxable year 
        shall not exceed $25 (twice such amount in the case of a joint 
        return).
            ``(2) Limitation on contributions to federal congressional 
        candidates.--No credit shall be allowed under this section to 
        any taxpayer for any taxable year if such taxpayer made 
        aggregate contributions in excess of $200 (twice such amount in 
        the case of a joint return) during the taxable year to--
                    ``(A) any single Federal congressional candidate, 
                or
                    ``(B) any political committee established and 
                maintained by a national political party.
            ``(3) Ineligibility of individuals using grassroots 
        democracy coupons.--No credit shall be allowed under this 
        section with respect to any individual for any taxable year 
        during which such individual submitted a Grassroots Democracy 
        Coupon under subtitle B of title I of the Grassroots Democracy 
        Act of 2012 to a candidate for election for Federal office. In 
        the case of a joint return with respect to which this paragraph 
        applies to one of the spouses, such return shall not be treated 
        as a joint return for purposes of determining the dollar 
        limitation under paragraph (1).
    ``(c) Qualified Grassroots Federal Congressional Campaign 
Contributions.--For purposes of this section, the term `qualified 
grassroots Federal congressional campaign contribution' means any 
contribution of cash by an individual to a Federal congressional 
candidate or to a political committee established and maintained by a 
national political party if such contribution is not prohibited under 
the Federal Election Campaign Act of 1971.
    ``(d) Federal Congressional Candidate.--For purposes of this 
section--
            ``(1) In general.--The term `Federal congressional 
        candidate' means any candidate for election to the office of 
        Senator or Representative in, or Delegate or Resident 
        Commissioner to, the Congress.
            ``(2) Treatment of authorized committees.--Any contribution 
        made to an authorized committee of a Federal congressional 
        candidate shall be treated as made to such candidate.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 2013, the $25 amount under subsection (b)(1) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2012' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under 
        subparagraph (A) is not a multiple of $5, such amount shall be 
        rounded to the nearest multiple of $5.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of such Code is amended by 
        inserting ``36C,'' after ``36B,''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36C,'' after ``36B,''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 36C 
        the following new item:

``Sec. 36C. Credit for grassroots contributions to Federal 
                            congressional candidates.''.
    (c) Forms.--The Secretary of the Treasury, or his designee, shall 
ensure that the credit for grassroots contributions to Federal 
congressional candidates allowed under section 36C of the Internal 
Revenue Code of 1986, as added by this section, may be claimed on Forms 
1040EZ and 1040A.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

         Subtitle B--Grassroots Democracy Coupon Pilot Program

SEC. 111. ESTABLISHMENT OF PILOT PROGRAM.

    (a) Establishment.--The Grassroots Democracy Advisory Commission 
established under section 542 of the Federal Election Campaign Act of 
1971 (as added by section 201) (hereafter in this subtitle referred to 
as the ``Commission'') shall establish a pilot program under which--
            (1) a qualified individual who resides in a State selected 
        for participation in the program shall be provided with a 
        voucher to be known as a ``Grassroots Democracy Coupon'' during 
        the election cycle which will be assigned a routing number and 
        which at the option of the individual will be provided in 
        either paper or electronic form;
            (2) using the routing number assigned to the Coupon, the 
        individual may submit the Grassroots Democracy Coupon in either 
        electronic or paper form to qualified candidates for election 
        for Federal office and allocate such portion of the value of 
        the voucher in increments of $5 (in an amount not to exceed $50 
        for any single candidate) as the individual may select to any 
        such candidate; and
            (3) if the candidate transmits such Grassroots Democracy 
        Coupon to the Commission, the Commission shall pay the 
        candidate the portion of the value of the voucher that the 
        individual allocated to the candidate, which shall be 
        considered a contribution by the individual to the candidate 
        for purposes of the Federal Election Campaign Act of 1971.
    (b) Selection of States.--
            (1) In general.--A State that seeks to participate in the 
        pilot program under this title shall submit to the Commission 
        (at such time and in such form as the Commission may require) 
        an application containing such information and assurances as 
        the Commission may require.
            (2) Criteria.--In selecting among States that seek to 
        participate in the program, the Commission shall ensure a 
        balance among various geographic regions, population sizes, and 
        other demographic characteristics.
    (c) Standards for Qualification of Individuals.--The Commission 
shall establish standards for the qualification of individuals to whom 
Grassroots Democracy Coupons will be provided, so that only individuals 
who are registered to vote in elections for Federal office may qualify 
and such individuals would be able to claim the Coupons immediately 
upon registering to vote.
    (d) Other Administrative Specifications.--In carrying out the pilot 
program under this subtitle, the Commission shall--
            (1) create the necessary routing numbers for the Grassroots 
        Democracy Coupons, which will be matched with State-issued 
        voter registration cards;
            (2) provide incentives for candidates for election for 
        Federal office and interested organizations to develop online 
        platforms through which individuals may select among eligible 
        candidates for the submission and acceptance of Grassroots 
        Democracy Coupons in electronic or paper form; and
            (3) establish fraud prevention mechanisms so that an 
        individual may revoke a Grassroots Democracy Coupon not later 
        than 2 days after submitting the Coupon to a candidate.

SEC. 112. REPORTS TO CONGRESS.

    (a) Reports.--Not later than 6 months after each election cycle 
during which the pilot program under this subtitle is in effect, the 
Commission and the Government Accountability Office shall each submit a 
report to Congress analyzing the operation and effectiveness of the 
program during the cycle, and shall include in each such report such 
recommendations as the Commission and the Government Accountability 
Office (as the case may be) consider appropriate regarding the 
expansion of the pilot program to all States and territories, along 
with such other recommendations as the Commission and Government 
Accountability Office consider appropriate.
    (b) Definition.--In subsection (a), the term ``election cycle'' 
means the period beginning on the day after the date of the most recent 
regularly scheduled general election for Federal office and ending on 
the date of the next regularly scheduled general election for Federal 
office.

   TITLE II--GRASSROOTS FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

SEC. 201. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR CANDIDATES.

    The Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) is 
amended by adding at the end the following:

  ``TITLE V--GRASSROOTS FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

``SEC. 501. BENEFITS FOR PARTICIPATING CANDIDATES.

    ``(a) In General.--If a candidate for election to the office of 
Senator or Representative in, or Delegate or Resident Commissioner to, 
the Congress is certified as a participating candidate under this title 
with respect to an election for such office, the candidate shall be 
entitled to payments as provided under this title.
    ``(b) Amount of Payment.--
            ``(1) Tier 1 candidates.--In the case of a participating 
        candidate who is a Tier 1 candidate, the amount of a payment 
        made under this title shall be equal to 500 percent of the 
        amount of qualified grassroots contributions received by the 
        candidate since the most recent payment made to the candidate 
        under this title during the election cycle which are 
        attributable to residents of the State in which the candidate 
        seeks election.
            ``(2) Tier 2 candidates.--In the case of a participating 
        candidate who is a Tier 2 candidate, the amount of the payment 
        made under this title shall be equal to 1,000 percent of the 
        amount of qualified grassroots contributions received by the 
        candidate since the most recent payment made to the candidate 
        under this title during the election cycle.
    ``(c) Limit on Aggregate Amount of Payments.--
            ``(1) Tier 1 candidates.--In the case of a participating 
        candidate who is a Tier 1 candidate, the aggregate amount of 
        payments made under this title may not exceed 50% of the 
        average of the 10 greatest amounts of disbursements made by the 
        authorized committees of any winning candidate for the office 
        of Representative in, or Delegate or Resident Commissioner to, 
        the Congress during the most recent election cycle (in the case 
        of a participating candidate for such office) or any winning 
        candidate for the office of Senator during the most recent 
        election cycle (in the case of a participating candidate for 
        such office).
            ``(2) Tier 2 candidates.--In the case of a participating 
        candidate who is a Tier 2 candidate, the aggregate amount of 
        payments made under this title may not exceed 100% of the 
        average of the 10 greatest amounts of disbursements made by the 
        authorized committees of any winning candidate for the office 
        of Representative in, or Delegate or Resident Commissioner to, 
        the Congress during the most recent election cycle (in the case 
        of a participating candidate for such office) or any winning 
        candidate for the office of Senator during the most recent 
        election cycle (in the case of a participating candidate for 
        such office).

``SEC. 502. PROCEDURES FOR MAKING PAYMENTS.

    ``(a) In General.--The Commission make a payment under section 501 
to a candidate who is certified as a participating candidate upon 
receipt from the candidate of a request for a payment which includes--
            ``(1) a statement of the number of qualified grassroots 
        contributions received by the candidate since the most recent 
        payment made to the candidate under this title during the 
        election cycle;
            ``(2) a statement of the amount of the payment the 
        candidate anticipates receiving with respect to the request; 
        and
            ``(3) such other information and assurances as the 
        Commission may require.
    ``(b) Restrictions on Submission of Requests.--A candidate may not 
submit a request under subsection (a) unless each of the following 
applies:
            ``(1) The number of individuals in the statement referred 
        to in subsection (a)(1) is equal to or greater than 100, unless 
        the request is submitted during the 30-day period which ends on 
        the date of a general election.
            ``(2) Of the number of individuals in the statement 
        referred to in subsection (a)(1), at least 50 percent are 
        residents of the Congressional district involved (in the case 
        of a candidate for election for the office of Representative 
        in, or Delegate or Resident Commissioner to, the Congress) or 
        the State involved (in the case of a candidate for election for 
        the office of Senator).
            ``(3) The candidate did not receive a payment under this 
        title during the 7-day period which ends on the date the 
        candidate submits the request.
    ``(c) Time of Payment.--The Commission shall make payments under 
this section not later than 2 business days after the receipt of a 
request submitted under subsection (a).
    ``(d) Declaration of Tier 1 or Tier 2 Status.--A candidate shall 
include in the first request for payment submitted under subsection (a) 
a statement specifying whether the candidate is a Tier 1 candidate or a 
Tier 2 candidate under this title.
    ``(e) Appeals.--The Commission shall provide a written explanation 
with respect to any denial of a request for payment which is submitted 
under this section and shall provide for the opportunity for review and 
reconsideration within 5 business days of such denial.

``SEC. 503. USE OF FUNDS.

    ``(a) In General.--A candidate shall use payments made under this 
title only for making direct payments for the receipt of goods and 
services which constitute authorized expenditures in connection with 
the election cycle involved.
    ``(b) Limit on Amount of Payment Made on Commission Basis to 
Individuals Collecting Qualified Grassroots Contributions.--If a 
candidate who is certified as a participating candidate under this 
title pays any person a commission on a per contribution basis for 
collecting qualified grassroots contributions, the amount paid by the 
candidate and the authorized committees of the candidate may not exceed 
20% of the value of the qualified grassroots contributions the person 
collected.

``SEC. 504. QUALIFIED GRASSROOTS CONTRIBUTIONS DESCRIBED.

    ``(a) In General.--In this title, the term `qualified grassroots 
contribution' means, with respect to a candidate and the authorized 
committees of a candidate, a contribution that meets the following 
requirements:
            ``(1) The contribution is in an amount that is--
                    ``(A) not less than the greater of $5 or the amount 
                determined by the Commission under section 542(c)(2); 
                and
                    ``(B) not more than the greater of $100 or the 
                amount determined by the Commission under section 
                542(c)(2).
            ``(2) The contribution is made by an individual who is not 
        otherwise prohibited from making a contribution under this Act.
            ``(3) The individual who makes the contribution has not 
        made any contribution to the candidate or the authorized 
        committees of the candidate during the election cycle involved 
        that is not a qualified grassroots contribution.
    ``(b) Treatment of Grassroots Refundable Credits and Grassroots 
Democracy Vouchers.--Any payment received by a candidate and the 
authorized committees of a candidate which is treated as a qualified 
grassroots Federal congressional campaign contribution under section 
36B of the Internal Revenue Code of 1986 or which consists of a 
Grassroots Democracy Coupon under subtitle B of title I of the 
Grassroots Democracy Act of 2012 shall be considered a qualified 
grassroots contribution for purposes of this title, so long as the 
individual making the payment meets the requirements of paragraphs (2) 
and (3) of subsection (a).
    ``(c) Exception for Contributions by Individuals Opting Out of 
Grassroots Systems.--
            ``(1) In general.--A contribution by an individual shall 
        not be treated as a qualified grassroots contribution for 
        purposes of this title if, at the time the individual makes the 
        contribution, the individual notifies the recipient that the 
        contribution is not to be treated as a qualified grassroots 
        contribution.
            ``(2) Contributions deemed qualified.--Any contribution 
        which meets the requirements set forth in subsection (a) shall 
        be deemed a qualified grassroots contribution without regard to 
        whether the individual making the contribution designates the 
        contribution as a qualified grassroots contribution for 
        purposes of this title.
    ``(d) Restriction on Subsequent Contributions.--
            ``(1) In general.--An individual who makes a qualified 
        grassroots contribution to a candidate or the authorized 
        committees of a candidate during an election cycle may not make 
        any contribution to such candidate or the authorized committees 
        of such candidate during the cycle which is not a qualified 
        grassroots contribution.
            ``(2) No effect on ability to make multiple 
        contributions.--Nothing in this section may be construed to 
        prohibit an individual from making multiple qualified 
        grassroots contributions to any candidate or any number of 
        candidates, so long as each contribution meets the requirements 
        of this section.
    ``(e) Notification Requirements for Candidates.--
            ``(1) Notification.--Each authorized committee of a 
        candidate who seeks to be a participating candidate under this 
        title shall provide the following information in any materials 
        for the solicitation of contributions, including any Internet 
        site through which individuals may make contributions to the 
        committee:
                    ``(A) A statement that if the candidate is 
                certified as a participating candidate under this 
                title, the candidate will receive matching payments in 
                an amount which is based on the total amount of 
                qualified grassroots contributions received.
                    ``(B) A statement that a contribution which meets 
                the requirements set forth in subsection (a) shall be 
                treated as a qualified grassroots contribution under 
                this title unless the contributor notifies the 
                committee that the contribution is not to be so 
                treated.
                    ``(C) A statement that if a contribution is treated 
                as qualified grassroots contribution under this title, 
                the individual who makes the contribution may not make 
                any contribution to the candidate or the authorized 
                committees of the candidate during the election cycle 
                which is not a qualified grassroots contribution.
            ``(2) Expansion of other disclosure statements.--An 
        authorized committee may meet the requirements of paragraph (1) 
        by modifying the information it provides to persons making 
        contributions which is otherwise required under title III 
        (including information it provides through the Internet).

              ``Subtitle B--Eligibility and Certification

``SEC. 511. ELIGIBILITY.

    ``(a) In General.--A candidate for the office of Senator or 
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, and 
        specifies in the statement whether the candidate intends to 
        seek certification as a Tier 1 candidate or a Tier 2 candidate.
            ``(2) Each authorized committee of the candidate provides 
        the information required under section 503(d).
            ``(3) The candidate meets the qualifying requirements of 
        section 512.
            ``(4) Not later than the last day of the Grassroots 
        Democracy 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 run only as a 
                participating candidate for all elections for the 
                office that such candidate is seeking during that 
                election cycle; and
                    ``(C) 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 be certified as a participating 
candidate under this title 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) Grassroots Democracy Qualifying Period Defined.--The term 
`Grassroots Democracy qualifying period' means, with respect to any 
candidate for an office, the 240-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 30 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 Qualified Grassroots Contributions.--A candidate 
for the office of Senator or Representative in, or Delegate or Resident 
Commissioner to, the Congress meets the requirement of this section if, 
during the Grassroots Democracy qualifying period described in section 
511(c), the candidate obtains the following:
            ``(1) A single qualified grassroots contribution from not 
        fewer than--
                    ``(A) in the case of a candidate for the office of 
                Representative in, or Delegate or Resident Commissioner 
                to, the Congress, 2,000 individuals, of whom not fewer 
                than 50 percent shall be residents of the Congressional 
                district the candidate seeks to represent; or
                    ``(B) in the case of a candidate for the office of 
                Senator, a number of individuals equal to the sum of 
                2,000 plus an amount equal to the product of 500 and 
                the number of Congressional districts in the State 
                involved, of whom not fewer than 50 percent shall be 
                residents of the State in which the candidate seeks 
                election.
            ``(2) A total dollar amount of qualified grassroots 
        contributions equal to or greater than--
                    ``(A) in the case of a candidate for the office of 
                Representative in, or Delegate or Resident Commissioner 
                to, the Congress, $50,000; or
                    ``(B) in the case of a candidate for the office of 
                Senator, the sum of $200,000 plus an amount equal to 
                the product of $25,000 and the number of Congressional 
                districts in the State involved.
    ``(b) Requirements Relating to Receipt of Qualified Grassroots 
Contribution.--Each qualified grassroots contribution--
            ``(1) may be made by means of a personal check, money 
        order, debit card, credit card, electronic payment account, or 
        text message;
            ``(2) shall be accompanied by a signed statement (or, in 
        the case of a contribution made online or through other 
        electronic means, an electronic equivalent) containing--
                    ``(A) the contributor's name and the contributor's 
                address in the State in which the primary residence of 
                the contributor is located, and
                    ``(B) an oath declaring that the contributor--
                            ``(i) understands that the purpose of the 
                        contribution is to show support for the 
                        candidate so that the candidate may qualify for 
                        Grassroots Democracy 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 (in paper or electronic form) kept 
        by the candidate for the Commission and a copy (in paper or 
        electronic form) kept by the candidate for the election 
        authorities in the State with respect to which the candidate is 
        seeking election.
    ``(c) Verification of Qualified Grassroots Contributions.--The 
Commission shall establish procedures for the auditing and verification 
of qualified grassroots contributions to ensure that such contributions 
meet the requirements of this section.
    ``(d) Prohibiting Payment on Commission Basis of Individuals 
Collecting Qualified Grassroots Contributions.--No person may be paid a 
commission on a per contribution basis for collecting qualified 
grassroots contributions.

``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 Tier 1 candidate or a 
                participating Tier 2 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 Tier 1 candidate or a participating Tier 2 
        candidate with respect to the first election of the election 
        cycle involved, the Commissioner shall be deemed to have 
        certified the candidate as such 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) Effect of revocation.--If a candidate's certification 
        is revoked under paragraph (1)--
                    ``(A) the candidate shall repay to the Grassroots 
                Democracy Fund established under section 541 an amount 
                equal to the payments 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;
                    ``(B) the candidate may not receive payments under 
                this title during the remainder of the election cycle 
                involved; and
                    ``(C) the candidate may not be certified as a 
                participating candidate under this title with respect 
                to the next election cycle.
            ``(3) Prohibiting participation in future elections for 
        candidates with multiple revocations.--If the Commission 
        revokes the certification of an individual as a participating 
        candidate under this title 3 times, the individual may not be 
        certified as a participating candidate under this title with 
        respect to any subsequent election.
    ``(c) Participating Candidate Defined.--In this title, a 
`participating candidate' means a candidate for the office of Senator 
or 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 AND EXPENDITURE REQUIREMENTS.

    ``(a) Permitted Sources of Contributions and Expenditures.--
            ``(1) Tier 1 candidates.--Except as provided in subsection 
        (c), a participating candidate who is certified as a Tier 1 
        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 and 
        make no expenditures from any amounts, other than the 
        following:
                    ``(A) Qualified grassroots contributions.
                    ``(B) Payments under this title.
                    ``(C) Contributions from political committees 
                established and maintained by a national or State 
                political party.
                    ``(D) Subject to subsection (b), personal funds of 
                the candidate or of any immediate family member of the 
                candidate (other than funds received through qualified 
                grassroots contributions).
                    ``(E) Subject to subsection (e), contributions from 
                individuals who are otherwise permitted to make 
                contributions under this Act.
            ``(2) Tier 2 candidates.--Except as provided in subsection 
        (c), a participating candidate who is certified as a Tier 2 
        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 and 
        make no expenditures from any amounts, other than the 
        following:
                    ``(A) Qualified grassroots contributions.
                    ``(B) Payments under this title.
                    ``(C) Contributions from political committees 
                established and maintained by a national or State 
                political party.
                    ``(D) Subject to subsection (b), personal funds of 
                the candidate or of any immediate family member of the 
                candidate (other than funds received through qualified 
                grassroots contributions).
    ``(b) Special Rules for Personal Funds.--
            ``(1) Limit on amount.--A candidate who is certified as a 
        participating candidate may use personal funds (including 
        personal funds of any immediate family member of the candidate) 
        so long as--
                    ``(A) the amount used with respect to the election 
                cycle does not exceed $50,000; and
                    ``(B) the funds are used only for making direct 
                payments for the receipt of goods and services which 
                constitute authorized expenditures in connection with 
                the election cycle involved.
            ``(2) Immediate family member defined.--In this subsection, 
        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 described in paragraph (1) of 
        subsection (a) (in the case of a Tier 1 candidate) or in 
        paragraph (2) of subsection (a) (in the case of a Tier 2 
        candidate) 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 Grassroots Democracy Fund established under section 
                541; 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 (a) or subsection (b), the candidate is 
        not in violation of such subsection if the aggregate amount of 
        the prohibited expenditures is less than the amount referred to 
        in section 512(a)(2) (relating to the total dollar amount of 
        qualified grassroots contributions which the candidate is 
        required to obtain) which is applicable to the candidate.
            ``(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.
    ``(e) Phase-Out of Amount of Private Contributions That May Be 
Accepted by Tier 1 Candidates.--With respect to an election cycle 
occurring after the first 3 election cycles for which this title is in 
effect, the amount of a contribution that may be accepted from an 
individual by a participating candidate who is certified as a Tier 1 
candidate may not exceed the following:
            ``(1) For the fourth election cycle for which this title is 
        in effect, an amount equal to 60% of the limitation on the 
        amount of a contribution which a candidate may accept from an 
        individual for such cycle under section 315(a)(1).
            ``(2) For the fifth election cycle for which this title is 
        in effect, an amount equal to 40% of the limitation on the 
        amount of a contribution which a candidate may accept from an 
        individual for such cycle under section 315(a)(1).
            ``(3) For the sixth election cycle for which this title is 
        in effect and any subsequent election cycle, an amount equal to 
        20% of the limitation on the amount of a contribution which a 
        candidate may accept from an individual for such cycle under 
        section 315(a)(1).
    ``(f) Prohibition on Joint Fundraising Committees.--
            ``(1) Prohibition.--An authorized committee of a candidate 
        who is certified as a participating candidate under this title 
        with respect to an election may not establish a joint 
        fundraising committee with a political committee other than 
        another authorized committee of the candidate.
            ``(2) Status of existing committees for prior elections.--
        If a candidate established a joint fundraising committee 
        described in paragraph (1) with respect to a prior election for 
        which the candidate was not certified as a participating 
        candidate under this title and the candidate does not terminate 
        the committee, the candidate shall not be considered to be in 
        violation of paragraph (1) so long as that joint fundraising 
        committee does not receive any contributions or make any 
        disbursements during the election cycle for which the candidate 
        is certified as a participating candidate under this title.

``SEC. 522. ADMINISTRATION OF CAMPAIGN.

    ``(a) Use of Separate Accounts for Various Permitted 
Contributions.--Each authorized committee of a candidate certified as a 
participating candidate under this title--
            ``(1) shall establish a separate account for each type of 
        contribution described in paragraph (1) of section 521(a) (in 
        the case of a Tier 1 candidate) or paragraph (2) of section 
        521(a) (in the case of a Tier 2 candidate) which is received by 
        the committee, and shall deposit each contribution in the 
        account established for that type of contribution; and
            ``(2) shall establish a separate account for the payments 
        received under this title, and shall deposit each such payment 
        in that account.
    ``(b) Enhanced Reporting of Disbursements.--In addition to any 
reports required under section 304, not later than 3 months after the 
end of the election cycle involved, each authorized committee of a 
candidate certified as a participating candidate under this title shall 
submit a report to the Commission on all disbursements made from each 
separate account established under subsection (a) (in the same manner 
as the report required under section 304(b)(4)).
    ``(c) Enhanced Internet Disclosure of Information on Donors.--Each 
authorized committee of a candidate shall ensure that all information 
reported to the Commission under this Act with respect to contributions 
and expenditures of the committee is available to the public on the 
Internet (whether through a site established for purposes of this 
subsection, a hyperlink on another public site of the committee, or a 
hyperlink on a report filed electronically with the Commission) in a 
searchable, sortable, and downloadable manner.

``SEC. 523. PREVENTING UNNECESSARY SPENDING OF PUBLIC FUNDS.

    ``(a) Mandatory Spending of Available Private Funds.--An authorized 
committee of a candidate certified as a participating candidate under 
this title may not make any expenditure of any payments received under 
this title in any amount unless the committee has made an expenditure 
in an equivalent amount of funds received by the committee which are 
described in--
            ``(1) subparagraphs (C), (D), and (E) of paragraph (1) of 
        section 521(a), in the case of a Tier 1 candidate; or
            ``(2) subparagraphs (C) and (D) of paragraph (2) of section 
        521(a), in the case of a Tier 2 candidate.
    ``(b) Limitation.--Subsection (a) applies to an authorized 
committee only to the extent that the funds referred to in paragraph 
(1) of such subsection (in the case of a Tier 1 candidate) or in 
paragraph (2) of such subsection (in the case of a Tier 2 candidate) 
are available to the committee at the time the committee makes an 
expenditure of a payment received under this title.

``SEC. 524. REMITTING UNSPENT FUNDS AFTER ELECTION.

    ``(a) Remittance Required.--
            ``(1) 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 Grassroots Democracy 
        Fund established under section 541 an amount equal to the 
        balance of the accounts established by the authorized 
        committees of the candidate under section 522 for the payments 
        received under this title.
            ``(2) Exception for tier 2 candidates participating in next 
        cycle.--Notwithstanding paragraph (1), a Tier 2 candidate may 
        withhold not more than $50,000 from the amount required to be 
        remitted under paragraph (1) if the candidate files a signed 
        affidavit with the Commission that the candidate will seek 
        certification as a Tier 2 candidate with respect to the next 
        election cycle. If the candidate fails to seek certification as 
        a Tier 2 candidate prior to the last day of the Grassroots 
        Democracy qualifying period for the next election cycle (as 
        described in section 511), or if the Commission notifies the 
        candidate of the Commission's determination does not meet the 
        requirements for certification as a Tier 2 candidate with 
        respect to such cycle, the candidate shall immediately remit to 
        the Commission the amount withheld.
    ``(b) Exception for Expenditures Incurred but Not Paid as of Date 
of Remittance.--
            ``(1) In general.--A candidate may withhold from the amount 
        required to be remitted under subsection (a) 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--Supplemental Grassroots Democracy People's Fund Payments

``SEC. 531. ELIGIBILITY OF PARTICIPATING CANDIDATES FOR PAYMENTS.

    ``(a) Payments to Candidates.--In addition to the payments made 
under subtitle A, a candidate certified as a participating candidate 
under this title with respect to an election shall be entitled to a 
supplemental Grassroots Democracy People's Fund payment from the 
Grassroots Democracy Fund each time during the election cycle that the 
Commission issues a determination under subsection (b) that the outside 
speech threshold with respect to the election has been reached.
    ``(b) Outside Speech Threshold.--
            ``(1) Determinations by commission.--
                    ``(A) In general.--For purposes of this section, 
                the Commission shall issue a determination that the 
                outside speech threshold with respect to an election is 
                reached each time during the election cycle that the 
                Commission determines that the amount disbursed for 
                political activity with respect to the election 
                exceeds--
                            ``(i) the House threshold, in the case of 
                        an election for the office of Representative 
                        in, or Delegate or Resident Commissioner to, 
                        the Congress; or
                            ``(ii) the Senate threshold, in the case of 
                        an election for the office of Senator.
                    ``(B) Exclusion of certain disbursements.--For 
                purposes of subparagraph (A), in determining the amount 
                disbursed for political activity with respect to an 
                election, there shall be excluded--
                            ``(i) disbursements made by any authorized 
                        committee of a candidate; and
                            ``(ii) disbursements made by a political 
                        committee of a national political party.
                    ``(C) Inclusion of amounts spent on non-candidate-
                specific advertisements.--In determining the amount 
                disbursed for political activity with respect to an 
                election under subparagraph (A), there shall be 
                included any amount disbursed for a political 
                advertisement described in subsection (c)(3).
            ``(2) Subsequent determinations after threshold is first 
        reached.--After the first time during the election cycle that 
        the Commission issues a determination under paragraph (1) that 
        the outside speech threshold with respect to an election has 
        been reached, any subsequent determination as to whether the 
        threshold has been reached shall be made only on the basis of 
        disbursements made after the most recent such determination 
        issued by the Commission.
            ``(3) House threshold.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(A), the `House threshold' with respect to an 
                election is an amount equal to the product of the 
                adjusted baseline amount under subparagraph (B) and the 
                number of candidates in the election.
                    ``(B) Adjusted baseline amount.--For purposes of 
                subparagraph (A), the `adjusted baseline amount' with 
                respect to an election is an amount equal to the 
                product of $250,000 and an adjustment factor applied by 
                the Commission to take into account the relative media-
                related costs of political activity in the 
                Congressional district involved as compared to the 
                average of such costs among all Congressional 
                districts.
                    ``(C) Exclusion of certain candidates.--For 
                purposes of subparagraph (A), in determining the number 
                of candidates in an election, there shall be excluded 
                any candidate who is determined by the Commission to be 
                a minor candidate, in accordance with such criteria as 
                the Commission shall by regulation establish, taking 
                into account the amount of funds raised and expended by 
                the candidate, the candidate's ability to qualify for 
                the ballot, and such other factors as the Commission 
                considers appropriate.
            ``(4) Senate threshold.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(A), the `Senate threshold' with respect to an 
                election is an amount equal to the product of the 
                adjusted baseline amount under subparagraph (B) and the 
                number of candidates in the election.
                    ``(B) Adjusted baseline amount.--For purposes of 
                subparagraph (A), the `adjusted baseline amount' with 
                respect to an election is an amount equal to the 
                product of--
                            ``(i) the sum of $250,000 plus the product 
                        of $100,000 and the number of Congressional 
                        districts in the State involved; and
                            ``(ii) an adjustment factor applied by the 
                        Commission to take into account the relative 
                        media-related costs of political activity in 
                        the State involved as compared to the average 
                        of such costs among all States.
                    ``(C) Exclusion of certain candidates.--For 
                purposes of subparagraph (A), in determining the number 
                of candidates in an election, there shall be excluded 
                any candidate who is determined by the Commission to be 
                a minor candidate, in accordance with such criteria as 
                the Commission shall by regulation establish, taking 
                into account the amount of funds raised and expended by 
                the candidate, the candidate's ability to qualify for 
                the ballot, and such other factors as the Commission 
                considers appropriate.
    ``(c) Political Activity Defined.--In this section, `political 
activity' means, with respect to an election, any of the following:
            ``(1) A publicly disseminated communication consisting of 
        an independent expenditure (as defined in section 301(17)) 
        which advocates the election or defeat of a candidate in the 
        election.
            ``(2) A publicly disseminated communication consisting of 
        an electioneering communication (as defined in section 304(f)) 
        which refers to a candidate in the election.
            ``(3) A publicly disseminated communication consisting of a 
        communication which refers to the political party of a 
        candidate in the election and which would be treated as an 
        electioneering communication (as defined in section 304(f)) if 
        it referred to a clearly identified candidate for Federal 
        office.
            ``(4) Voter registration, voter identification, get-out-
        the-vote, and other related activity carried out in connection 
        with the election.

``SEC. 532. AMOUNT OF PAYMENT; USE OF FUNDS.

    ``(a) Amount.--The amount of the supplemental Grassroots Democracy 
People's Fund payment made to a candidate under this subtitle shall be 
equal to 100 percent of the aggregate amount of qualified grassroots 
donations received by the candidate, as reported in the most recent 
request for a payment under this title which has been submitted by the 
candidate under section 502 at the time the Commission issues a 
determination under section 541(b).
    ``(b) Use of Funds.--A candidate shall use the supplemental payment 
under this subtitle only for authorized expenditures in connection with 
the election cycle involved.

``SEC. 533. SEVERABILITY.

    ``If any provision of this subtitle, or the application of a 
provision of this subtitle to any person or circumstance, is held to be 
unconstitutional, the remainder of this title, and the application of 
the provisions to any person or circumstance, shall not be affected by 
the holding.

                ``Subtitle E--Administrative Provisions

``SEC. 541. GRASSROOTS DEMOCRACY FUND.

    ``(a) Establishment.--There is established in the Treasury a fund 
to be known as the `Grassroots Democracy 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) Other deposits.--Amounts deposited into the Fund 
        under--
                    ``(A) section 6098 of the Internal Revenue Code of 
                1986 (relating to contributions to Grassroots Democracy 
                Fund);
                    ``(B) section 521(c) (relating to exceptions to 
                contribution requirements);
                    ``(C) section 523 (relating to remittance of unused 
                payments from the Fund);
                    ``(D) section 544 (relating to violations); and
                    ``(E) any other section of this Act.
            ``(4) 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 
        make payments to participating candidates as provided in this 
        title.
            ``(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. 542. GRASSROOTS DEMOCRACY ADVISORY COMMISSION.

    ``(a) Establishment.--There is established within the Federal 
Election Commission an entity to be known as the `Grassroots Democracy 
Advisory Commission' (in this title referred to as the `Advisory 
Commission').
    ``(b) Structure and Membership.--
            ``(1) In general.--The Advisory Commission shall be 
        composed of 5 members appointed by the President with the 
        advice and consent of the Senate, 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 by reason of their education, experience, and 
                attainments, are exceptionally qualified to perform the 
                duties of members of the Advisory Commission.
                    ``(B) Prohibition.--No member of the Advisory 
                Commission 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 Advisory Commission; or
                            ``(iii) an officer or employee of a 
                        political party or political campaign.
            ``(3) Date.--Members of the Advisory Commission shall be 
        appointed not later than 60 days after the date of the 
        enactment of this Act.
            ``(4) Terms.--A member of the Advisory Commission shall be 
        appointed for a term of 5 years.
            ``(5) Vacancies.--A vacancy on the Advisory Commission 
        shall be filled not later than 30 calendar days after the date 
        on which the Advisory Commission 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 Advisory Commission shall designate 
        a Chairperson from among the members of the Board.
    ``(c) Duties and Powers.--
            ``(1) Administration.--The Advisory Commission shall have 
        such duties and powers as the Commission may prescribe, 
        including the power to administer the provisions of this title.
            ``(2) Review of grassroots democracy financing.--
                    ``(A) In general.--After each regularly scheduled 
                general election for Federal office, the Advisory 
                Commission shall conduct a comprehensive review of the 
                Grassroots Democracy financing program under this 
                title, including--
                            ``(i) the maximum and minimum dollar 
                        amounts of qualified grassroots contributions 
                        under section 504;
                            ``(ii) the number and value of qualified 
                        grassroots contributions a candidate is 
                        required to obtain under section 512(a) to be 
                        eligible for certification as a participating 
                        candidate;
                            ``(iii) the maximum amount of payments a 
                        candidate may receive under this title;
                            ``(iv) the overall satisfaction of 
                        participating candidates and the American 
                        public with the program; and
                            ``(v) such other matters relating to 
                        financing of campaigns as the Advisory 
                        Commission determines are appropriate.
                    ``(B) Criteria for review.--In conducting the 
                review under subparagraph (A), the Advisory Commission 
                shall consider the following:
                            ``(i) Qualified grassroots contributions.--
                        The Advisory Commission shall consider whether 
                        the number and dollar amounts of qualified 
                        grassroots contributions required 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 Advisory 
                        Commission determines is appropriate.
                            ``(ii) Review of payment levels.--The 
                        Advisory Commission shall consider whether the 
                        totality of the amount of funds allowed to be 
                        raised by participating candidates (including 
                        through qualified grassroots contributions) and 
                        payments under this title 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 
                        Advisory Commission determines is appropriate.
                    ``(C) Adjustment of amounts.--
                            ``(i) In general.--Based on the review 
                        conducted under subparagraph (A), the Advisory 
                        Commission shall provide for the adjustments of 
                        the following amounts:
                                    ``(I) The maximum and minimum 
                                dollar amounts of qualified grassroots 
                                contributions under section 504.
                                    ``(II) The number and value of 
                                qualified grassroots contributions a 
                                candidate is required to obtain under 
                                section 512(a) to be eligible for 
                                certification as a participating 
                                candidate.
                                    ``(III) The maximum amount of 
                                payments may receive under this title.
                            ``(ii) Regulations.--The Commission shall 
                        promulgate regulations providing for the 
                        adjustments made by the Advisory Commission 
                        under clause (i).
                    ``(D) Review of grassroots democracy people's fund 
                program.--After each regularly scheduled general 
                election for Federal office, the Advisory Commission 
                shall conduct a comprehensive review of the program for 
                making supplemental Grassroots Democracy People's Fund 
                payments under subtitle D, and shall include in the 
                review the following:
                            ``(i) A review of the outside speech 
                        threshold established under section 531(b), 
                        including the amounts used to determine the 
                        House threshold under paragraph (3) of such 
                        section and the Senate threshold under 
                        paragraph (4) of such section.
                            ``(ii) The effectiveness of the adjustment 
                        factors applied by the Commission under section 
                        531(b) to take into account the relative media-
                        related costs of political activity in 
                        Congressional districts and States.
                            ``(iii) The overall satisfaction of 
                        participating candidates and the American 
                        public with the Program.
                            ``(iv) Such other matters relating to the 
                        making of payments under such subtitle as the 
                        Advisory Commission determines are appropriate.
                    ``(E) Report.--Not later than each June 1 which 
                follows a regularly scheduled general election for 
                Federal office for which payments were made under this 
                title, the Advisory Commission shall submit a report to 
                Congress on the review conducted under this paragraph. 
                Such report shall contain a detailed statement of the 
                findings, conclusions, and recommendations of the 
                Advisory Commission based on such review.
    ``(d) Meetings and Hearings.--
            ``(1) Meetings.--The Advisory Commission may hold such 
        hearings, sit and act at such times and places, take such 
        testimony, and receive such evidence as the Advisory Commission 
        considers advisable to carry out the purposes of this Act.
            ``(2) Quorum.--Three members of the Advisory Commission 
        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 each June 1 which follows a 
regularly scheduled general election for Federal office for which 
payments were made under this title, the Advisory Commission 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 Advisory Commission 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 Advisory 
                Commission 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 Advisory Commission to 
                assist in carrying out the duties of the Advisory 
                Commission. Any such detail shall not interrupt or 
                otherwise affect the civil service status or privileges 
                of the Federal employee.
                    ``(E) Other resources.--The Advisory Commission 
                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 Advisory Commission 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. 543. 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 qualified grassroots 
                contributions with respect to a candidate,
                    ``(B) effectively and efficiently monitoring and 
                enforcing the limits on the raising of qualified 
                grassroots 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 
                Grassroots Democracy Fund established under section 541 
                and matching contributions under this title through 
                audits of not fewer than \1/10\ (or, in the case of the 
                first 3 election cycles during which the program under 
                this title is in effect, 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. 544. 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 Grassroots 
Democracy Fund established under section 541.
    ``(b) Repayment for Improper Use of Grassroots Democracy Fund.--
            ``(1) In general.--If the Commission determines that any 
        payment made 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 payments 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. 545. ELECTION CYCLE DEFINED.

    ``In this title, the term `election cycle' means, with respect to 
an election for an office, 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. 202. 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 Grassroots Democracy 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.''.

                TITLE III--OTHER ADMINISTRATIVE REFORMS

SEC. 301. EXPANDING REQUIREMENT TO DISCLOSE BUNDLERS WHO ARE REGISTERED 
              LOBBYISTS TO ALL BUNDLERS.

    (a) Expanding Bundler Disclosure Requirements to All Bundlers.--
Section 304(i)(1) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(i)(1)) is amended by striking ``reasonably known by the 
committee to be a person described in paragraph (7)''.
    (b) Conforming Amendments.--Section 304(i) of such Act (2 U.S.C. 
434(i)) is amended--
            (1) in paragraph (2)(C), by striking ``described in 
        paragraph (7)'';
            (2) in paragraph (3)(A), by striking ``a person described 
        in paragraph (7)'' and inserting ``any person'';
            (3) in paragraph (5)--
                    (A) by striking subparagraph (B) and redesignating 
                subparagraphs (C) and (D) as subparagraphs (B) and (C),
                    (B) in subparagraph (B) (as so redesignated), by 
                striking ``described in paragraph (7)'', and
                    (C) in subparagraph (C) (as so redesignated), by 
                striking ``by persons described in paragraph (7)'';
            (4) by striking paragraph (7) and redesignating paragraph 
        (8) as paragraph (7); and
            (5) in paragraph (7)(A) (as so redesignated), by striking 
        ``a person described in paragraph (7),'' and inserting ``a 
        person,''.

SEC. 302. EXPANSION OF PERIOD FOR TREATMENT OF COMMUNICATIONS AS 
              ELECTIONEERING COMMUNICATIONS.

    (a) Expansion of Period Covering General Election.--Section 
304(f)(3)(A)(I)(II)(aa) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 434(f)(3)(A)(I)(II)(aa)) is amended by striking ``60 days'' and 
inserting ``120 days''.
    (b) Effective Date; Transition for Communications Made Prior to 
Enactment.--The amendment made by subsection (a) shall apply with 
respect to communications made on or after the date of the enactment of 
this Act, without regard to whether or not the Federal Election 
Commission has promulgated regulations to carry out such amendments, 
except that no communication which is made prior to the date of the 
enactment of this Act shall be treated as an electioneering 
communication under section 304(f)(3)(A)(I)(II) of the Federal Election 
Campaign Act of 1971 (as amended by subsection (a)) unless the 
communication would be treated as an electioneering communication under 
such section if the amendment made by subsection (a) did not apply.

SEC. 303. USER FEES FOR COMMITTEES AND BUNDLERS.

    (a) Political Committees.--Section 303 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 433) is amended by adding at the end the 
following new subsection:
    ``(e) User Fee.--
            ``(1) Payment.--At the time a political committee files the 
        statement of organization required under subsection (a), and 
        annually thereafter until the termination of the committee, the 
        committee shall pay a user fee to the Commission in an amount 
        equal to $100.
            ``(2) Exception for candidate committees.--Paragraph (1) 
        does not apply in the case of a political committee which is an 
        authorized committee of a candidate.
            ``(3) Use of funds.--The amounts received by the Commission 
        under this subsection shall be used to support the 
        administration of the Grassroots Democracy Advisory Commission 
        under section 542.''.
    (b) Bundlers.--Title III of such Act (2 U.S.C. 431 et seq.) is 
amended by inserting after section 303 the following new section:

               ``user fees for bundlers of contributions

    ``Sec. 303A.  (a) User Fee Required.--A person may not provide a 
bundled contribution to a political committee during a year unless the 
person has paid a user fee to the Commission during the year in an 
amount equal to $100.
    ``(b) Use of Funds.--The amounts received by the Commission under 
this subsection shall be used to support the administration of the 
Grassroots Democracy Advisory Commission under section 542.
    ``(c) Bundled Contribution Defined.--In this section, the term 
`bundled contribution' has the meaning given such term in section 
304(i)(7).''.

SEC. 304. 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. 305. 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. 306. 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).

SEC. 307. EFFECTIVE DATE.

    Except as provided in section 302(b), the amendments made by this 
title shall apply with respect to reports filed on or after the date of 
the enactment of this Act.

                           TITLE IV--OFFSETS

SEC. 401. REFORM OF TAX RULES RELATED TO POLITICAL ORGANIZATIONS.

    (a) Decoupling of Rate of Tax on Political Organizations From 
Corporate Tax Rate.--Subsection (b) of section 527 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking all that precedes ``A tax is hereby 
        imposed'' and inserting the following:
    ``(b) Tax Imposed.--'',
            (2) by striking paragraph (2), and
            (3) by striking ``the highest rate of tax specified in 
        section 11(b)'' and inserting ``35 percent''.
    (b) Repeal of Exemptions for Proceeds From Merchandise and 
Entertainment Events.--Paragraph (3) of section 527(c) of such Code is 
amended--
            (1) by adding ``or'' at the end of subparagraph (A),
            (2) by striking the comma at the end of subparagraph (B) 
        and inserting a period, and
            (3) by striking subparagraphs (C) and (D).
    (c) Modification of Limitation on Tax Paid by Charitable 
Organizations Engaged in Exempt Functions.--Paragraph (1) of section 
527(f) of such Code is amended by striking ``equal to the lesser of--'' 
and all that follows and inserting ``equal to the aggregate amount so 
expended during the taxable year for such an exempt function. If such 
aggregate amount does not exceed $500,000, the amount included in gross 
income under the preceding sentence shall not exceed the net investment 
income of such organization for the taxable year.''.
    (d) Repeal of Graduated Rates for Principal Campaign Committees.--
Section 527 of such Code is amended by striking subsection (h).
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 402. VOLUNTARY CONTRIBUTIONS TO THE GRASSROOTS DEMOCRACY FUND.

    (a) In General.--Subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

         ``PART IX--CONTRIBUTIONS TO GRASSROOTS DEMOCRACY FUND

``Sec. 6098. Contributions to Grassroots Democracy Fund.

``SEC. 6098. CONTRIBUTIONS TO GRASSROOTS DEMOCRACY FUND.

    ``(a) In General.--Every individual, with respect to the taxpayer's 
return for the taxable year of the tax imposed by chapter 1, may 
designate that a specified portion (not less than $1) of any 
overpayment of tax shall be contributed to the Grassroots Democracy 
Fund established under section 541 of the Federal Election Campaign Act 
of 1971.
    ``(b) Manner and Time of Designation.--
            ``(1) Time of designation.--A designation under subsection 
        (a) may be made with respect to any taxable year--
                    ``(A) at the time of filing the return of the tax 
                imposed by chapter 1 for such taxable year, or
                    ``(B) at any other time (after such time of filing) 
                specified in regulations prescribed by the Secretary.
            ``(2) Manner of designation.--Such designation shall be 
        made in such manner as the Secretary prescribes by regulations 
        except that, if such designation is made at the time of filing 
        the return of the tax imposed by chapter 1 for such taxable 
        year, such designation shall be made either on the first page 
        of the return or on the page bearing the taxpayer's signature.
    ``(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--
            ``(1) 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, and
            ``(2) a contribution made by such taxpayer on such date to 
        the United States.
    ``(d) Online Contributions.--The Secretary shall establish and 
maintain a website through which persons may make contributions to the 
Grassroots Democracy Fund. Any such contribution shall not be treated 
as an overpayment of tax but shall be treated as a contribution made by 
such person to the United States.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 61 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

        ``PART IX--CONTRIBUTIONS TO GRASSROOTS DEMOCRACY FUND''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

           TITLE V--EXPANDING CANDIDATE ACCESS TO ADVERTISING

SEC. 501. BROADCASTS BY OR ON BEHALF OF CANDIDATES.

    (a) Use of Broadcasting Station at Lowest Unit Charge.--Section 
315(b) of the Communications Act of 1934 (47 U.S.C. 315(b)) is 
amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, or by a national committee of a political 
                party in connection with such a campaign of such a 
                candidate who is affiliated with the party,'' after 
                ``to such office'';
                    (B) in subparagraph (A), by inserting ``for 
                preemptible use thereof'' after ``station''; and
                    (C) by moving subparagraphs (A) and (B) 2 ems to 
                the right; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``In general.--'' and 
                        inserting ``Certification.--'';
                            (ii) by striking ``the broadcast station'' 
                        and inserting ``such station'';
                            (iii) by striking ``In the case of'' and 
                        inserting the following:
                            ``(i) By candidates.--In the case of''; and
                            (iv) by adding at the end the following:
                            ``(ii) By party national committees.--In 
                        the case of the use of any broadcasting station 
                        by a national committee of a political party in 
                        connection with the campaign of a candidate for 
                        Federal office who is affiliated with the 
                        party, such committee shall not be entitled to 
                        receive the rate under paragraph (1)(A) for 
                        such use unless such committee provides written 
                        certification to such station that such 
                        committee shall not make any direct reference 
                        to another candidate for the same office, in 
                        any broadcast using the rights and conditions 
                        of access under this Act, unless such reference 
                        meets the requirements of subparagraph (C) or 
                        (D).'';
                    (B) in subparagraph (B)--
                            (i) by striking ``subparagraph (A)'' and 
                        inserting ``subparagraph (A)(i)'';
                            (ii) by striking ``If a candidate'' and 
                        inserting the following:
                            ``(i) For candidates.--If a candidate''; 
                        and
                            (iii) by adding at the end the following:
                            ``(ii) For party national committees.--If 
                        the national committee of a political party 
                        makes a reference described in subparagraph 
                        (A)(ii) in any broadcast that does not meet the 
                        requirements of subparagraph (C) or (D), such 
                        national committee shall not be entitled to 
                        receive the rate under paragraph (1)(A) for 
                        such broadcast or any other broadcast in 
                        connection with the campaign of the candidate 
                        during any portion of the 45-day and 60-day 
                        periods described in paragraph (1)(A), that 
                        occur on or after the date of such 
                        broadcast.'';
                    (C) in subparagraph (C)--
                            (i) by striking ``A candidate'' and 
                        inserting ``A television broadcast'';
                            (ii) by striking ``, in the case of a 
                        television broadcast,''; and
                            (iii) in clause (ii), by inserting ``or the 
                        national committee of a political party'' after 
                        ``authorized committee'';
                    (D) in subparagraph (D)--
                            (i) by striking ``A candidate'' and 
                        inserting ``A radio broadcast''; and
                            (ii) by striking ``, in the case of a radio 
                        broadcast,''; and
                    (E) in subparagraph (E), by inserting ``or national 
                committee'' after ``candidate)''.
    (b) Preemption; Audits.--Section 315 of the Communications Act of 
1934 (47 U.S.C. 315) is amended--
            (1) by redesignating subsection (c) as subsection (g);
            (2) by redesignating subsection (d) as subsection (f); and
            (3) by inserting after subsection (b) the following:
    ``(c) Preemption.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding the requirements of subsection (b)(1)(A), a 
        licensee may not preempt the use of a broadcasting station by a 
        legally qualified candidate or national committee of a 
        political party that has purchased and paid for such use under 
        circumstances entitling such candidate or committee to receive 
        the rate under such subsection for such use.
            ``(2) Circumstances beyond control of licensee.--If a 
        program to be broadcast by a broadcasting station is preempted 
        because of circumstances beyond the control of the licensee, an 
        advertisement that is scheduled to be broadcast during such 
        program and the broadcast of which constitutes use of the 
        broadcasting station described in paragraph (1) shall be 
        treated in the same fashion as a comparable commercial 
        advertisement.
    ``(d) Audits.--During the 45-day period preceding the date of a 
primary or primary runoff election and during the 60-day period 
preceding the date of a general election or special election, the 
Commission shall conduct such audits as it considers necessary to 
ensure that the licensee of each broadcasting station is allocating use 
of the station in accordance with this section and in a manner that 
does not warrant revocation of the station license under section 
312(a)(7).''.
    (c) Revocation of License for Failure To Permit Access by Federal 
Candidates.--Section 312 of the Communications Act of 1934 (47 U.S.C. 
312) is amended--
            (1) in subsection (a)(7)--
                    (A) by inserting ``in accordance with subsection 
                (h),'' before ``for willful'';
                    (B) by striking ``or repeated'';
                    (C) by inserting ``or a cable system'' after ``non-
                commercial educational broadcast station,''; and
                    (D) by striking ``his candidacy'' and inserting 
                ``the candidacy of the candidate, or by a national 
                committee of a political party in connection with the 
                campaign of a legally qualified candidate for Federal 
                elective office who is affiliated with the party, under 
                the same terms, conditions, and business practices as 
                apply to the most-favored advertiser of the 
                broadcasting station or cable system''; and
            (2) by adding at the end the following:
    ``(h) Conditions for Revocation for Failure To Allow Access by 
Federal Candidates.--
            ``(1) Three-strikes rule.--The Commission may revoke a 
        station license or construction permit under subsection (a)(7) 
        only if the Commission finds that the licensee or permittee has 
        engaged in at least 3 failures described in such subsection 
        with respect to the broadcasting station or cable system to 
        which the license or permit relates.
            ``(2) Duration.--In the case of a person whose station 
        license or construction permit with respect to a broadcasting 
        station or cable system has been revoked under subsection 
        (a)(7)--
                    ``(A) the Commission may not grant a station 
                license or construction permit to such person with 
                respect to such broadcasting station or cable system 
                during the 5-year period following the revocation; and
                    ``(B) if the Commission grants such a station 
                license or construction permit to such person after 
                such 5-year period, the number of failures described in 
                subsection (a)(7) shall be calculated for purposes of 
                paragraph (1) without regard to any such failures that 
                occurred while a previous license or permit was in 
                effect.''.
    (d) Conforming Amendments.--Section 315 of the Communications Act 
of 1934, as amended by subsection (b), is further amended--
            (1) in subsection (a), by striking ``If any licensee'' and 
        inserting ``Equal Opportunities for Candidates for Same 
        Office.--If any licensee'';
            (2) in subsection (f), as redesignated, by striking ``The 
        Commission'' and inserting ``Regulations.--The Commission''; 
        and
            (3) in subsection (g), as redesignated, by striking ``For 
        purposes'' and inserting ``Definitions.--For purposes''.
                                 <all>