[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7306 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 7306
To establish the Democracy Dollars Program under which citizens may
direct the making of payments to candidates in elections for Federal
office and to political committees supporting campaigns for election
for Federal office, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 13, 2018
Mr. Khanna introduced the following bill; which was referred to the
Committee on House Administration, and in addition to the Committee on
Ways and Means, 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 establish the Democracy Dollars Program under which citizens may
direct the making of payments to candidates in elections for Federal
office and to political committees supporting campaigns for election
for Federal office, 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 ``Democracy Dollars
Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--DEMOCRACY DOLLARS PROGRAM
Subtitle A--Availability of Democracy Dollars to Qualified Candidates
Sec. 101. Establishment of Democracy Dollars Program.
Sec. 102. Eligibility of individuals to participate in Program.
Sec. 103. Eligibility of candidates and authorized committees to
receive payments; use of payments.
Sec. 104. Democracy Dollars Exploratory Fund.
Sec. 105. Eligibility of other political committees to receive
payments; use of payments.
Sec. 106. Reports on disbursements of funds received under Program.
Subtitle B--Payments of Democracy Dollars
Sec. 111. Amount available for eligible individuals to direct for
payments.
Sec. 112. Payments to candidates and committees from available amounts.
Sec. 113. Limitations on amount of payments to candidates and
committees.
Sec. 114. Protecting privacy of eligible individuals.
Sec. 115. Remitting unexpended payments.
Subtitle C--Public Outreach and Education
Sec. 121. Public outreach and education program.
Sec. 122. Requiring materials to be provided in minority languages.
Sec. 123. Authorization of appropriations.
TITLE II--DEMOCRACY FUND COMMISSION
Sec. 201. Establishment.
Sec. 202. Membership.
Sec. 203. Staff.
Sec. 204. Functions.
Sec. 205. State responsibility for implementation of Program.
Sec. 206. Administration of program in case of States without approved
implementation plans in effect.
TITLE III--DEMOCRACY DOLLARS FUND
Sec. 301. Democracy Dollars Fund.
Sec. 302. Termination of Presidential Election Campaign Fund; transfer
of balance to Democracy Dollars Fund.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Violations and penalties.
Sec. 402. Democracy Dollar Administrator defined.
Sec. 403. Other definitions.
TITLE V--SEVERABILITY
Sec. 501. Severability.
TITLE I--DEMOCRACY DOLLARS PROGRAM
Subtitle A--Availability of Democracy Dollars to Qualified Candidates
SEC. 101. ESTABLISHMENT OF DEMOCRACY DOLLARS PROGRAM.
In accordance with this Act, the Democracy Fund Commission (as
established under title II) shall establish and operate a program to be
known as the ``Democracy Dollars Program'', under which eligible
individuals may direct that amounts in the Democracy Dollars Fund (as
established under title III) be used to make payments to eligible
candidates for election for Federal office (including the authorized
committees of such candidates) or eligible political committees, in
accordance with subtitle B.
SEC. 102. ELIGIBILITY OF INDIVIDUALS TO PARTICIPATE IN PROGRAM.
(a) Eligibility of Registered Voters.--An individual is eligible to
participate in the Democracy Dollars Program with respect to an
election for Federal office if the individual is registered to vote in
any election for Federal office during the year in which the election
will be held, as determined on the basis of the most recent version of
the computerized statewide voter registration list maintained under
section 303 of the Help America Vote Act of 2002 (52 U.S.C. 21083) by
the State in which the individual resides.
(b) Special Rule for Residents of States Without Voter
Registration.--In the case of an individual who is a resident of a
State in which there is no voter registration requirement for any voter
in the State with respect to an election for Federal office, an
individual is eligible to participate in the Program with respect to an
election for Federal office if the individual is eligible to vote in
any election for Federal office in that State.
SEC. 103. ELIGIBILITY OF CANDIDATES AND AUTHORIZED COMMITTEES TO
RECEIVE PAYMENTS; USE OF PAYMENTS.
(a) Eligibility.--A candidate (including the authorized committees
of the candidate) is eligible to receive payments under the Democracy
Dollars Program if--
(1) the candidate and each authorized committee of the
candidate registers with the Democracy Fund Commission to
participate in the Program;
(2) each such committee certifies to such Commission that
it has established a Democracy Dollars Exploratory Fund in
accordance with section 104;
(3) except as provided in subsection (d), each such
committee certifies to such Commission that, in accordance with
section 104, the aggregate amount of qualified contributions
that it has accepted, or that it will accept, to such Democracy
Dollars Exploratory Fund is equal to the applicable threshold
under such section;
(4) each such committee certifies to such Commission that
it will maintain a separate account for payments received under
the Program; and
(5) each such committee certifies to such Commission that
it will meet the applicable requirements of this title,
including the requirements of subsection (c) (relating to
restrictions on the source of the contributions the candidate
and committees may accept and the expenditures the candidate
and committees may make).
(b) Exclusive Use of Democracy Dollars Payments for Authorized
Campaign Expenditures.--
(1) Authorized campaign expenditures of candidate.--
(A) In general.--Except as provided in paragraph
(2), a candidate (including an authorized committee of
the candidate) may use a payment received under the
Program only for otherwise authorized expenditures in
connection with the campaign for Federal office of the
candidate, and may not convert the payment to personal
use.
(B) Application of rules applicable to
contributions to candidates under federal election
campaign act of 1971.--For purposes of this paragraph,
section 313 of the Federal Election Campaign Act of
1971 (52 U.S.C. 30114) shall apply to the use of a
payment under the Program in the same manner as such
section applies to the use of a contribution or
donation described in such section.
(2) Contributions to other candidates.--A candidate
(including an authorized committee of a candidate) may use a
payment received under the Program to make a contribution to
the authorized committee of another candidate, except that the
aggregate amount of contributions made to such a committee
using such payments with respect to an election may not exceed
the limit on the amount of contributions which may be made to
such a committee with respect to the election under section
315(a) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30116(a)).
(c) Democracy Dollars Payments as Exclusive Source of Contributions
and Expenditures.--A candidate (including an authorized committee of
the candidate) receiving a payment under the Democracy Dollars Program
with respect to an election may not accept any contributions or make
any expenditures in connection with any election occurring during the
election cycle for the office involved other than the following:
(1) Payments made under the Democracy Dollars Program.
(2) Amounts accepted and deposited in the candidate's
Democracy Dollars Exploratory Fund under section 104, so long
as such amounts do not exceed the applicable threshold for the
candidate under such section.
(3) Personal funds (including personal funds of the
candidate or any immediate family member of the candidate) in
an amount that does not exceed an aggregate amount of $50,000
for all such elections.
(d) Permitting Certification by Candidates and Committees Accepting
Excess Contributions to Democracy Dollars Exploratory Fund.--A
candidate (including an authorized committee of the candidate) which
has accepted an aggregate amount of qualified contributions to a
Democracy Dollars Exploratory Fund under section 104 which is greater
than the applicable threshold under such section shall be considered to
meet the requirements of paragraph (3) of subsection (a) if, not later
than 5 business days after the date on which the aggregate amount of
qualified contributions deposited into such Fund was first equal to
such applicable threshold, the candidate provides the Democracy Fund
Commission with--
(1) a statement of the amount of contributions in such
Fund; and
(2) a certification that the candidate or committee
returned all contributions accepted after such date to the
persons who made such contributions.
SEC. 104. DEMOCRACY DOLLARS EXPLORATORY FUND.
(a) Requiring Establishment and Minimum Balance as Condition of
Eligibility.--As a condition of eligibility to receive payments under
the Democracy Dollars Program, a candidate (including the authorized
committees of a candidate) shall--
(1) establish a separate account to be known as the
``Democracy Dollars Exploratory Fund'';
(2) accept a qualified contribution (as described in
subsection (b)) from a number of individuals equal to or
greater than the applicable donor threshold described in
subsection (c); and
(3) deposit into Democracy Dollars Exploratory Fund an
aggregate amount of qualified contributions accepted by the
candidate or the committee which is equal to the applicable
dollar threshold described in subsection (d).
(b) Qualified Contribution Described.--In this section, a
``qualified contribution'' means a contribution to a candidate or an
authorized committee of a candidate which does not consist of any
personal funds of the candidate and which is made by an individual who
is not a member of the immediate family of the candidate, except that
such term does not include a contribution made to the candidate or
committee by another candidate (or an authorized committee of such a
candidate) using a payment received under the Program, as described in
section 103(b).
(c) Applicable Donor Threshold Described.--In this section, the
``applicable donor threshold'' with respect to a candidate or
authorized committee is--
(1) 125 individuals, in the case of a candidate for a House
election;
(2) 250 individuals, in the case of a candidate for
election for the office of Senator; or
(3) 500 individuals, in the case of a candidate for
election for the office of President or Vice President.
(d) Applicable Threshold Described.--In this section, the
``applicable dollar threshold'' with respect to a candidate or
authorized committee is--
(1) $50,000, in the case of a candidate for a House
election;
(2) $500,000, in the case of a candidate for election for
the office of Senator; or
(3) $1,000,000, in the case of a candidate for election for
the office of President or Vice President.
SEC. 105. ELIGIBILITY OF OTHER POLITICAL COMMITTEES TO RECEIVE
PAYMENTS; USE OF PAYMENTS.
(a) Eligibility.--A political committee which is not an authorized
committee of a candidate is eligible to receive payments under the
Democracy Dollars Program if--
(1) the committee registers with the Democracy Fund
Commission to participate in the Program; and
(2) the committee certifies that it will maintain a
separate account for payments received under the Program.
(b) Exclusive Use of Democracy Dollars Payments for Contributions
to Candidates and Other Authorized Campaign Expenditures.--
(1) In general.--A political committee which is not an
authorized committee of a candidate may use a payment received
under the Democracy Dollars Program only to make a contribution
to the authorized committee of a candidate, except that a
political committee of a political party may also use a payment
received under the Program for otherwise authorized
expenditures in connection with the campaigns for Federal
office of candidates who are members of the political party, so
long as the payment is not converted to personal use. For
purposes of this paragraph, section 313 of the Federal Election
Campaign Act of 1971 (52 U.S.C. 30114) shall apply to the use
of a payment under the Program in the same manner as such
section applies to the use of a contribution or donation
described in such section.
(2) Limit on amount of contribution.--The aggregate amount
of contributions made by a committee under this section to the
authorized committee of a candidate using payments received
under the Democracy Dollars Program with respect to an election
may not exceed the limit on the amount of contributions which
may be made to such an authorized committee with respect to the
election under section 315(a) of the Federal Election Campaign
Act of 1971 (52 U.S.C. 30116(a)).
SEC. 106. REPORTS ON DISBURSEMENTS OF FUNDS RECEIVED UNDER PROGRAM.
(a) Requiring Committees To File Reports.--Each authorized
committee of a candidate or other political committee which receives
payments under the Democracy Dollars Program shall file reports with
the Democracy Fund Commission listing the name and address of each
person who has received any disbursement from the separate account
maintained by the committee for payments received under the Program
(and, if applicable, from the Democracy Dollars Exploratory Fund
established pursuant to section 104) in an aggregate amount or value in
excess of $200 during the period covered by the report, together with
the date and amount of any such disbursement.
(b) Timing of Reports; Period of Coverage.--A committee shall file
a report required under this section with respect to an election at the
same time as the committee files a report required under section 304(a)
of the Federal Election Campaign Act of 1971 (52 U.S.C. 30104) with
respect to that election, and each report filed under this section
shall be complete as of the same period applicable to the report the
committee files at that time under section 304(a) of such Act.
(c) Electronic Filing; Public Availability.--
(1) Mandatory electronic filing.--In accordance with
regulations promulgated by the Democracy Fund Commission, a
committee shall file each report required under this section in
electronic form accessible by computers.
(2) Public availability.--The Commission shall make a
report filed under this section available for inspection by the
public in the offices of the Commission and accessible to the
public on the internet not later than 24 hours after the
Commission receives the report.
(3) Methods for verification.--In promulgating regulations
under this subsection, the Commission shall provide methods
(other than requiring a signature on the document being filed)
for verifying reports filed under this section. Any document
verified under any of the methods shall be treated for all
purposes (including penalties for perjury) in the same manner
as a document verified by signature.
Subtitle B--Payments of Democracy Dollars
SEC. 111. AMOUNT AVAILABLE FOR ELIGIBLE INDIVIDUALS TO DIRECT FOR
PAYMENTS.
(a) In General.--Effective on the first day of each odd-numbered
year (beginning with 2019), an eligible individual may direct the
Democracy Dollar Administrator to make payments with respect to
elections for Federal office held in the following year (or, in the
case of special elections, an election held in either such odd-numbered
year or the following year) in an aggregate amount equal to the sum of
the following:
(1) A House election share of--
(A) for 2019, $10; or
(B) for 2021 and each subsequent odd-numbered year,
the amount established under this paragraph for the
previous odd-numbered year increased by the adjustment
percentage for House elections (as described in
paragraph (1) of subsection (b)) for the year.
(2) If a regularly scheduled election for the office of
Senator will be held during the following year in the State in
which the individual resides, a Senate election share of--
(A) for 2019, $15; or
(B) for 2021 and each subsequent odd-numbered year,
the amount established under this paragraph for the
previous odd-numbered year increased by the adjustment
percentage for Senate elections (as described in
paragraph (2) of subsection (b)) for the year.
(3) If an election for the office of President and Vice
President will be held during the following year, a
presidential election share of--
(A) for 2019, $25; or
(B) for 2023 and each fourth year thereafter, the
amount established under this paragraph for the
previous odd-numbered year increased by the adjustment
percentage for presidential elections (as described in
paragraph (3) of subsection (b)) for the year.
(b) Adjustment Percentages Described.--
(1) House elections.--The adjustment percentage for House
elections for an odd-numbered year is the greater of 100
percent or the percentage (if any) by which--
(A) the aggregate amount of contributions made to
authorized committees of candidates for House elections
in the previous year from sources other than payments
under the Democracy Dollars Program; exceeded
(B) the aggregate of amount of contributions made
to such authorized committees for such elections that
consisted of payments under the Program, including
payments made to such authorized committees by other
political committees using payments under the Program
(as described in section 105(b)).
(2) Senate elections.--The adjustment percentage for Senate
elections for an odd-numbered year is the greater of 100
percent or the percentage (if any) by which--
(A) the aggregate amount of contributions made to
authorized committees of candidates for elections for
the office of Senator in the previous year from sources
other than payments under the Democracy Dollars
Program; exceeded
(B) the aggregate of amount of contributions made
to such authorized committees for such elections that
consisted of payments under the Program, including
payments made to such authorized committees by other
political committees using payments under the Program
(as described in section 105(b)).
(3) Presidential elections.--The adjustment percentage for
presidential elections for a year is the greater of 100 percent
or the percentage (if any) by which--
(A) the aggregate amount of contributions made to
authorized committees of candidates for the most recent
election for the office of President from sources other
than payments under the Democracy Dollars Program;
exceeded
(B) the aggregate amount of contributions made to
such authorized committees for such election that
consisted of payments under the Program, including
payments made to such authorized committees by other
political committees using payments under the Program
(as described in section 105(b)).
(c) Treatment of Special Elections.--
(1) House elections.--If an eligible individual is a
resident of a congressional district in which a special House
election will be held, the House election share amount set
forth under paragraph (1) of subsection (a) for the individual
shall be increased by $10.
(2) Senate elections.--If an eligible individual is a
resident of a State in which a special election will be held
for the office of Senator, the Senate election share amount set
forth under paragraph (2) for the individual shall be increased
by $15.
(d) No Carry-Over of Amounts.--On the last day of each even-
numbered year, the amount available under this section with respect to
an eligible individual shall be reduced to $0, and no further payments
may be made under this Act with respect to elections held in such year.
(e) Indexing of Amounts.--In any calendar year after 2019, section
315(c)(1)(B) of the Federal Election Campaign Act of 1971 (52 U.S.C.
30116(c)(1)(B)) shall apply to each amount described in this section in
the same manner as such section applies to the limitations established
under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such
section, except that for purposes of applying such section to the
amounts described in this section, the ``base period'' shall be 2019.
(f) Prohibiting Paying Individuals To Direct Payments to Candidates
and Committees.--It shall be unlawful--
(1) for any person to provide money or anything of value to
an eligible individual, or to make an express promise to
provide money or anything of value to an eligible individual,
in exchange for the eligible individual directing the Democracy
Dollar Administrator to make payments to a candidate or
committee under the Democracy Dollars Program; or
(2) for an eligible individual to solicit money or anything
of value from another person in exchange for the eligible
individual directing the Democracy Dollar Administrator to make
payments to a candidate or committee under the Democracy
Dollars Program.
SEC. 112. PAYMENTS TO CANDIDATES AND COMMITTEES FROM AVAILABLE AMOUNTS.
(a) Requests by Eligible Individuals.--An eligible individual may
submit to the Democracy Dollar Administrator a request to make a
payment from the amount available to the eligible individual under
section 111 to an eligible candidate or political committee identified
by the eligible individual, in such amount as the eligible individual
may specify.
(b) Payments by Democracy Dollar Administrator.--Upon the
expiration of the 5-day period which begins on the date the eligible
individual submits a request under subsection (a), the Democracy Dollar
Administrator shall make a payment to the eligible candidate or
political committee identified by the individual in the request, in the
amount specified in the request, unless during such 5-day period, the
individual notifies the Administrator that the individual cancels the
request.
(c) Statement of Balance of Amounts Remaining.--After making a
payment to an eligible candidate or political committee at the
direction of an individual, the Democracy Dollar Administrator shall
transmit to the individual (as promptly as the Administrator determines
to be feasible, in accordance with regulations promulgated by the
Commission) a statement of the amount remaining for the individual to
use for payments under the Democracy Dollars Program during the year.
SEC. 113. LIMITATIONS ON AMOUNT OF PAYMENTS TO CANDIDATES AND
COMMITTEES.
(a) Limitations Based on Type of Election.--The total amount of
payments made at the direction of an eligible individual to candidates
and the authorized committees of candidates may not exceed--
(1) in the case of candidates for House elections, the
House election share amount set forth under paragraph (1) of
section 111(a);
(2) in the case of candidates for election for the office
of Senator, the Senate election share amount set forth under
paragraph (2) of section 111(a); and
(3) in the case of candidates for election for the office
of President, the presidential election share amount set forth
under paragraph (3) of section 111(a).
(b) Special Rule for Certain Presidential Elections.--In the case
of elections for the office of President held in a year in which the
incumbent is a candidate--
(1) the total amount of payments made at the direction of
an eligible individual to candidates and the authorized
committees of candidates in primary elections for such office
may not exceed 40 percent of the presidential election share
amount set forth under paragraph (3) of section 111(a); and
(2) the total amount of payments made at the direction of
an eligible individual to candidates and the authorized
committees of candidates in the general election for such
office may not exceed 60 percent of the presidential election
share amount set forth under paragraph (3) of section 111(a).
SEC. 114. PROTECTING PRIVACY OF ELIGIBLE INDIVIDUALS.
(a) No Treatment of Payments as Contributions Made by Individuals
to Candidates or Committees.--A payment made to a candidate or
committee under the Democracy Dollars Program at the direction of an
eligible individual, as described in this subtitle, shall not be
treated as a contribution made to the candidate or committee by the
eligible individual for purposes of the Federal Election Campaign Act
of 1971 (52 U.S.C. 30101 et seq.).
(b) Ensuring Anonymity of Individuals Directing Payments to
Candidates and Committees.--In making payments to candidates and
political committees under this section at the request of an eligible
individual, the Democracy Dollar Administrator shall take all
practicable steps to ensure that no information relating to the
identity of the individual who requests that the payment be made to the
candidate or committee is disclosed or otherwise made known to the
candidate or the committee, including through the use of blind trusts
or similar devices.
SEC. 115. REMITTING UNEXPENDED PAYMENTS.
(a) Remittance Required.--Not later than the date that is 10 days
after the date on which a candidate withdraws from an election or no
longer qualifies to be on the ballot for an election, any authorized
committee of the candidate to which payments were made under the
Program shall remit to the Democracy Dollars Fund under section 301 any
amounts in the separate account established by the committee for
payments received under the Program (as described in section 103(a)(3))
which remain unexpended as of such date.
(b) Reallocation to Amounts Available for Payments at Direction of
Eligible Individuals.--To the greatest extent practicable, the
Democracy Dollar Administrator shall increase the amounts available
under this subtitle for an eligible individual to make payments under
the Democracy Dollars Program to take into account the remittance of
unspent amounts under this section by an authorized committee that were
attributable to payments made at the request of the eligible
individual, and shall allocate such increase--
(1) to the House election share set forth for the
individual under paragraph (1) of section 111(a), in the case
of an authorized committee of a candidate for a House election;
(2) to the Senate election share set forth for the
individual under paragraph (2) of section 111(a), in the case
of an authorized committee of a candidate for election to the
office of Senator; and
(3) to the presidential election share set forth for the
individual under paragraph (3) of section 111(a), in the case
of an authorized committee of a candidate for election to the
office of President or Vice President.
Subtitle C--Public Outreach and Education
SEC. 121. PUBLIC OUTREACH AND EDUCATION PROGRAM.
(a) Program Required.--As part of carrying out the Democracy Dollar
Program, the Democracy Dollar Administrator, in consultation with the
Democracy Fund Commission and such other persons as the Administrator
determines to be appropriate, shall develop and carry out a State-based
public outreach and education campaign to increase public awareness
regarding the ability of eligible individuals to direct that payments
to be made to candidates and committees under the Program.
(b) Grants Authorized.--In carrying out the public outreach and
education program under this subtitle, the Democracy Dollar
Administration may make grants to local election officials and
nonprofit organizations (including organizations described in section
504(c) of the Internal Revenue Code of 1986) to carry out appropriate
outreach and education activities, under such terms and conditions as
the Administrator considers appropriate.
(c) Website.--In carrying out the public outreach and education
program under this subtitle, the Democracy Dollar Administrator, in
consultation with the Democracy Fund Commission and such other persons
as the Administrator determines to be appropriate, shall develop,
establish, and update as necessary, a single State-sponsored public
website through which the public may obtain, in an easy to understand
and user-friendly format, information about the Democracy Dollar
Program, including the ability of eligible individuals to direct
payments to be made to candidates and committees under the Program.
(d) Social Media.--The Democracy Dollar Administrator may use
publicly available social media platforms to supplement the public
outreach and education program under this subtitle and to support the
operation of the pubic website developed and established under
subsection (c).
SEC. 122. REQUIRING MATERIALS TO BE PROVIDED IN MINORITY LANGUAGES.
As part of carrying out the Democracy Dollar Program, the Democracy
Dollar Administrator shall ensure that forms, materials, and
information relating to the Program are provided in the applicable
language of language minority groups, as defined in section 203 of the
Voting Rights Act of 1965 (52 U.S.C. 10503).
SEC. 123. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle
such sums as may be necessary for each of the fiscal years 2019 through
2023.
TITLE II--DEMOCRACY FUND COMMISSION
SEC. 201. ESTABLISHMENT.
There is hereby established the Democracy Fund Commission (in this
Act referred to as the ``Commission''), which shall be responsible for
administering the Democracy Dollars Program under this Act.
SEC. 202. MEMBERSHIP.
(a) Appointment.--
(1) In general.--The Commission shall be composed of 5
members appointed by the President with the advice and consent
of the Senate.
(2) Qualifications.--An individual is eligible to serve as
a Member of the Commission if the individual is a retired judge
of the United States.
(3) Restrictions on outside employment.--A member of the
Commission may not engage in any other business, vocation, or
employment. Any individual who is engaging in any other
business, vocation, or employment at the time of the
individual's appointment to the Commission shall terminate or
liquidate such activity no later than 90 days after such
appointment.
(4) Vacancies; no effect on authority of remaining
members.--A vacancy in the membership of the Commission shall
be filled in the same manner as the original appointment, and
shall have no effect on the authority of the remaining members
of the Commission to carry out their duties under this Act.
(b) Term of Service.--
(1) Single 10-year term.--Except as provided in paragraphs
(2) and (3), a member of the Commission shall serve for a term
of 10 years, and may not be reappointed to an additional term,
except that an individual may serve after the expiration of
that individual's term until a successor has begun serving as a
member of the Commission.
(2) Staggering of initial terms.--Of the members first
appointed to the Commission--
(A) one (as designated at the time of appointment)
shall serve for a term of 2 years;
(B) one (as designated at the time of appointment)
shall serve for a term of 4 years;
(C) one (as designated at the time of appointment)
shall serve for a term of 6 years; and
(D) one (as designated at the time of appointment)
shall serve for a term of 8 years.
(3) Permitting individuals serving initial staggered term
to be reappointed to a full term.--An individual who is one of
the members first appointed to the Commission to serve for an
initial term of 2 years under subparagraph (A) of paragraph (2)
or to serve for an initial term of 4 years under subparagraph
(B) of paragraph (2) may be appointed subsequently to serve a
term of 10 years under paragraph (1).
(4) Vacancy.--An individual appointed to fill a vacancy
occurring in the membership of the Commission before the
expiration of the term for which the individual's predecessor
was appointed shall serve only for the remainder of that term.
(c) Compensation.--Each member of the Commission shall receive
compensation at a rate equivalent to the most recent rate of
compensation applicable to the individual as a judge of the United
States.
(d) Process in Event of Deadlock.--If a vote by the members of the
Commission on any matter results in a tie, the vote of the longest-
serving member (or, in the case of members first appointed to serve for
initial terms under paragraph (2) of subsection (b), the vote of the
member appointed for the longest term) shall prevail.
(e) Conforming Amendment to Executive Schedule Level IV
Positions.--Section 5315 of title 5, United States Code, is amended by
adding at the end the following:
``Member, Democracy Fund Commission.''.
SEC. 203. STAFF.
(a) Authority To Appoint Staff.--The Commission may appoint and fix
the pay of such personnel as the Commission considers appropriate.
(b) Applicability of Certain Civil Service Laws.--The personnel of
the Commission may be appointed without regard to the provisions of
title 5, United States Code, governing appointments in the competitive
service, and may be paid without regard to the provisions of chapter 51
and subchapter III of chapter 53 of that title relating to
classification and General Schedule pay rates, except that an
individual so appointed may not receive pay in excess of the annual
rate of basic pay in effect for grade GS-15 of the General Schedule.
(c) Experts and Consultants.--The Commission may procure temporary
and intermittent services to the same extent as is authorized by
section 3109(b) of title 5, United States Code, but at rates for
individuals not to exceed the daily equivalent of the annual rate of
basic pay in effect for grade GS-15 of the General Schedule (5 U.S.C.
5332).
(d) Staff of Federal Agencies.--Upon request of the Commission, the
head of any Federal department or agency may detail, on a reimbursable
basis, any of the personnel of that department or agency to the
Commission to assist it in carrying out its duties.
SEC. 204. FUNCTIONS.
The Commission shall administer the Democracy Dollars Program under
this Act. In administering the Program, the Commission shall carry out
the following:
(1) The Commission shall promulgate regulations to carry
out the Democracy Dollars Program, including regulations
applicable to State implementation plans under section 205, and
shall review the regulations not less frequently than every 4
years.
(2) The Commission shall solicit and review applications
from States for the approval of State implementation plans
under section 205(b).
(3) In the case of States whose implementation plans are
approved under section 205(b), the Commission shall monitor and
audit the performance of such States in carrying out such
plans.
(4) In accordance with section 206, the Commission carry
out the Democracy Dollars Program with respect to States that
do not have an approved implementation plan in effect.
(5) The Commission shall carry out such other activities as
the Commission considers appropriate to administer the
Democracy Dollars Program.
SEC. 205. STATE RESPONSIBILITY FOR IMPLEMENTATION OF PROGRAM.
(a) Responsibility for Administration of Program.--Except as
provided in section 206, each State shall administer the Democracy
Dollars Program with respect to individuals who are residents of the
State, in accordance with a State implementation plan approved by the
Commission under subsection (b).
(b) Approval of State Implementation Plans.--
(1) Approval by commission.--Each State shall submit its
plan for administering the Democracy Dollars Program to the
Commission, who shall approve the plan if the Commission finds
that the plan meets each of the following conditions:
(A) The plan includes such provisions and
safeguards as are necessary to ensure the effective
administration of the Program in the State in a
nonpartisan and competent manner.
(B) If the plan permits the use of private
financial intermediaries to assist in the processing of
requests made by eligible individuals to make payments
to candidates and political committees under subtitle B
of title I--
(i) to the greatest extent feasible, the
State uses a competitive bidding process to
select such intermediaries for participation in
the implementation of the plan; and
(ii) the plan requires these intermediaries
to meet the requirements of section 114(b)
(relating to ensuring the anonymity of such
individuals) and to take actions to deter fraud
and abuse.
(C) The plan is overseen by a certified authority
designated by the State.
(D) The plan meets such other requirements as the
Commission may by regulation require.
(2) Period for which approved plan is in effect.--If the
Commission approves a State plan under this subsection, the
plan shall be in effect for a 4-year period, and the Commission
may extend the plan for additional 4-year periods at the
request of the State if the Commission finds that the plan
continues to meet the conditions set forth in paragraph (1).
(c) Payment of Costs of Implementation.--
(1) Authorization to receive payments.--A State whose
implementation plan under this subtitle is approved and in
effect with respect to a year may receive payments from the
Commission to cover the costs of carrying out the plan during
the year, in the form of advance payments in accordance with
paragraph (2) or reimbursement in accordance with paragraph
(3), at the option of the State.
(2) Eligibility to receive advance payments.--A State is
eligible to receive advance payments under this subsection with
respect to a year if the State submits to the Commission, at
such time and in such form as the Commission may require, an
application containing--
(A) a statement of the reasonable and necessary
costs the State expects to incur in carrying out its
implementation plan under this subtitle during the
year; and
(B) such other information and assurances as the
Commission may require.
(3) Eligibility to receive reimbursement.--A State is
eligible to receive reimbursement under this subsection for the
reasonable and necessary costs the State incurred in carrying
out its implementation plan during a year if the State submits
to the Commission, at such time and in such form as the
Commission may require, an application containing--
(A) a statement of the reasonable and necessary
costs the State incurred in carrying out its
implementation plan during the year; and
(B) such other information and assurances as the
Commission may require.
(4) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary for payments
under this subsection.
(d) Revocation of Approval; Recapture of Advance Payments.--If the
Commission determines that the implementation plan of a State whose
implementation plan under this subtitle is approved is no longer in
compliance with the applicable requirements for such a plan, or if the
Commission determines that the State is administering the plan in a
biased or incompetent manner--
(1) the Commission shall revoke the approval of the plan;
and
(2) the State shall repay the Commission for any advance
payments made under subsection (c) with respect to any period
during which the plan was not in compliance with such
requirements or was administered in a biased or incompetent
manner.
SEC. 206. ADMINISTRATION OF PROGRAM IN CASE OF STATES WITHOUT APPROVED
IMPLEMENTATION PLANS IN EFFECT.
(a) Administration by Commission Authorized.--If a State does not
have an approved State implementation plan in effect with respect to a
year under section 205, the Commission shall administer the Democracy
Dollars Program during the year with respect to individuals who are
residents of the State, in accordance with a Federal implementation
plan for the State that meets the requirements of subsection (b).
(b) Availability of Federal Receivership in Case of Revocation on
Grounds of Bias or Incompetence.--
(1) Receivership.--If a State does not have an approved
State implementation plan in effect because, in accordance with
subsection (d) of section 205, the Commission revoked its
approval of a State implementation plan on the grounds that the
State administered the plan in a biased or incompetent manner,
the Commission may file an action to appoint a receiver to
administer the Democracy Dollars Program in the State.
(2) Procedures for consideration of request for
receivership.--In any action brought by the Commission to
appoint a receiver under this subsection, the following rules
shall apply:
(A) The action shall be filed in the appropriate
district court of the United States and shall be heard
by a 3-judge court convened pursuant to section 2284 of
title 28, United States Code.
(B) A final decision in the action shall be
reviewable only by appeal directly to the Supreme Court
of the United States. Such appeal shall be taken by the
filing of a notice of appeal within 10 days, and the
filing of a jurisdictional statement within 30 days, of
the entry of the final decision.
(C) It shall be the duty of the appropriate
district court of the United States and the Supreme
Court of the United States to advance on the docket and
to expedite to the greatest extent possible the
disposition of the action and the appeal.
(c) Federal Implementation Plan Described.--A Federal
implementation plan for a State meets the requirements of this
subsection if--
(1) the plan meets the conditions described in paragraphs
(1) and (2) of section 205(b) which would apply to a State
implementation plan of the State under such section;
(2) to the extent that the Commission requests information
and assistance from the State in order to carry out the plan,
the plan provides for a method by which the Commission may
reimburse the State for the costs incurred in providing such
information and assistance; and
(3) the plan meets such other requirements as the
Commission may require.
TITLE III--DEMOCRACY DOLLARS FUND
SEC. 301. DEMOCRACY DOLLARS FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the ``Democracy Dollars Fund''
(hereafter referred to as the ``Fund'').
(b) Uses of Fund.--Amounts in the Fund shall be used--
(1) for payments to candidates and political committees
under subtitle B of title I;
(2) for advance payments and reimbursements to States under
section 205;
(3) for payments to States as described in paragraph (2) of
section 206(b); and
(4) for the administration of the Democracy Dollars Program
by the Democracy Fund Commission.
(c) Contents of Fund.--The Fund shall consist of--
(1) amounts appropriated or transferred to the Fund under
law, including amounts transferred under section 9006(d)(2) of
the Internal Revenue Code of 1986;
(2) repayments made by States under paragraph (2) of
section 205(d);
(3) unspent payments under the Program which are remitted
under section 115;
(4) civil penalties assessed under section 401; and
(5) interest earned on balances of the Fund.
(d) Authority To Make Payments at Request of State or Democracy
Fund Commission.--With respect to a payment made under the Program at
the direction of an eligible individual pursuant to section 112, the
Secretary of the Treasury shall make such payment from the Fund upon
the request of the Democracy Dollar Administrator for the individual
involved.
SEC. 302. TERMINATION OF PRESIDENTIAL ELECTION CAMPAIGN FUND; TRANSFER
OF BALANCE TO DEMOCRACY DOLLARS FUND.
(a) Termination of Designation of Income Tax Payments.--Section
6096 of the Internal Revenue Code of 1986 is amended by adding at the
end the following new subsection:
``(d) Termination.--This section shall not apply to taxable years
beginning after December 31, 2016.''.
(b) Termination of Fund and Account.--
(1) Termination of presidential election campaign fund.--
(A) In general.--Chapter 95 of subtitle H of such
Code is amended by adding at the end the following new
section:
``SEC. 9014. TERMINATION.
``The provisions of this chapter shall not apply with respect to
any presidential election (or any presidential nominating convention)
after the date of the enactment of this section, or to any candidate in
such an election.''.
(B) Transfer of remaining funds.--Section 9006 of
such Code is amended by adding at the end the following
new subsection:
``(d) Transfer of Funds Remaining After Termination.--Of the
amounts in the fund as of the date of the enactment of this
subsection--
``(1) the Secretary shall transfer $63,002,400 to the 10-
Year Pediatric Research Initiative Fund described in section
9008(i)(2), to be available as described in such section; and
``(2) the Secretary shall transfer the remainder to the
Democracy Dollars Fund under title III of the Democracy Dollars
Act.''.
(2) Termination of account.--Chapter 96 of subtitle H of
such Code is amended by adding at the end the following new
section:
``SEC. 9043. TERMINATION.
``The provisions of this chapter shall not apply to any candidate
with respect to any presidential election after the date of the
enactment of this section.''.
(c) Clerical Amendments.--
(1) The table of sections for chapter 95 of subtitle H of
such Code is amended by adding at the end the following new
item:
``Sec. 9014. Termination.''.
(2) The table of sections for chapter 96 of subtitle H of
such Code is amended by adding at the end the following new
item:
``Sec. 9043. Termination.''.
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. VIOLATIONS AND PENALTIES.
(a) Improper Use of Democracy Dollars Payments.--If the Democracy
Dollar Administrator determines that any payment made under this Act to
a candidate or committee was not used as provided for in this Act, the
Administrator shall so notify the candidate or committee, and may
impose a civil penalty on the candidate or committee in an amount equal
to 500 percent of the amount of the payment that was used improperly.
(b) Improper Use of Outside Funds by Candidates and Authorized
Committees Receiving Democracy Dollar Payments.--If the Democracy
Dollar Administrator determines that a candidate, including an
authorized committee of the candidate, receiving a payment under this
Act with respect to an election used amounts in connection with an
election occurring in the election cycle involved in violation of
section 103(c), the Administrator shall so notify the candidate or
committee, and may impose a civil penalty on the candidate or committee
in an amount equal to 200 percent of the amounts used by the candidate
or committee in violation of section 103(c) in connection with the
election.
(c) Criminal Penalties.--
(1) Imposition of penalty.--Any person who knowingly and
willfully commits a violation of this Act which involves the
making, receiving, or reporting of any amounts--
(A) aggregating $25,000 or more during a calendar
year shall be fined under title 18, United States Code,
or imprisoned for not more than 5 years, or both; or
(B) aggregating $2,000 or more (but less than
$25,000) during a calendar year shall be fined under
title 18, United States Code, or imprisoned for not
more than 1 year, or both.
(2) Referral to attorney general.--If the Democracy Dollar
Administrator determines that there is probable cause to
believe that a knowing and willful violation of this Act has
occurred, the Administrator may refer such apparent violation
to the Attorney General.
SEC. 402. DEMOCRACY DOLLAR ADMINISTRATOR DEFINED.
In this Act, the ``Democracy Dollar Administrator'' with respect to
an eligible individual is--
(1) in the case of an individual who is a resident of a
State with a State implementation plan approved by the
Democracy Fund Commission under section 205(b), the official of
the State who is designated to administer the Democracy Dollars
Program in the State under such plan; or
(2) in the case of an individual who is not a resident of a
State described in paragraph (1), the Democracy Fund Commission
under section 206.
SEC. 403. OTHER DEFINITIONS.
In this Act--
(1) each of the terms ``candidate'', ``election'',
``authorized committee'', and ``political committee'' has the
meaning given such term in the Federal Election Campaign Act of
1971 (52 U.S.C. 30101 et seq.);
(2) the term ``election cycle'' means, with respect to an
office, the period beginning on the day after the date of the
most recent regularly scheduled general election for such
office and ending on the date of the next regularly scheduled
general election for such office;
(3) the term ``House election'' means an election for the
office of Representative in, or Delegate or Resident
Commissioner to, the Congress; and
(4) the term ``State'' means each of the several States,
the District of Columbia, the Commonwealth of Puerto Rico,
American Samoa, Guam, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
TITLE V--SEVERABILITY
SEC. 501. SEVERABILITY.
If any provision of this Act or any amendment made by this Act, or
the application of a provision of this Act or an amendment made by this
Act to any person or circumstance, is held to be unconstitutional, the
remainder of this Act, and the application of the provisions to any
person or circumstance, shall not be affected by the holding.
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