[Congressional Record Volume 160, Number 26 (Wednesday, February 12, 2014)]
[Senate]
[Pages S949-S957]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. DURBIN (for himself, Mrs. Boxer, Mr. Brown, Mr. Cardin,
Mr. Franken, Mrs. Gillibrand, Mr. Harkin, Mr. Heinrich, Ms.
Klobuchar, Mr. Leahy, Mr. Menendez, Mr. Markey, Mr. Merkley,
Mr. Murphy, Mr. Sanders, Mrs. Shaheen, and Ms. Warren):
S. 2023. A bill to reform the financing of Senate elections, and for
other purposes; to the Committee on Finance.
Mr. DURBIN. Mr. President, when it comes to understanding the
influence of big money donors on congressional and presidential
campaigns, the numbers don't lie. In 2012, the top 32 donors to super
PACs spent as much money as every single small donation to President
Obama and Governor Romney combined. The top 32 donors to super PACs
spent as much money as every single small donation to President Obama
and Governor Romney combined. That means 32 individuals contributed as
much as 3.7 million Americans. In 2012, candidates from both the House
and Senate raised the majority of their funds from large donations of
$1,000 or more. Forty percent of all contributions to Senate candidates
came from donors who maxed out at the $2,500 contribution limit,
representing just .02 percent of the American population. The amount of
money special interest lobbies, wealthy donors, corporations and super
PACs are willing to spend to shape policy has grown exponentially since
Citizens United and it is expected to increase.
This dramatic increase in spending tells us that special interests
are not going to be shy about saying to Members of Congress: If you
vote against our interests, we will spend millions to make sure you
never get a chance to vote again. That is a terrible reality for many
Members of Congress who are trying to make honest decisions about
policy. It is an even worse statement about our democracy.
I think it is time for fundamental reform of the way we finance
congressional elections. We need a system that allows candidates to
focus on their constituents, their districts, and their States, instead
of fundraising. We need a system that encourages ordinary Americans--
the candidates I call mere mortals--to make their voices heard with
small, affordable donations to candidates of their choice.
That is why I am introducing the Fair Elections Now Act. The Fair
Elections Now Act will dramatically
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change the way campaigns are financed in America. This bill lets
candidates focus on the people they represent, regardless of whether
these people have wealth or whether they are going to attend big money
fundraisers. Fair elections candidates would be in the policy business,
regardless of what policies are preferred by the special interests.
I thank Senators Boxer, Brown, Cardin, Franken, Gillibrand, Harkin,
Heinrich, Klobuchar, Leahy, Markey, Menendez, Merkley, Murphy, Sanders,
Shaheen, and Warren for joining me in this effort.
The Fair Elections Now Act will help restore public confidence in
congressional elections. It provides qualified candidates for Congress
with grants, matching funds, and vouchers from the Fair Elections Fund
to replace campaign fundraising that now relies largely on lobbyists,
wealthy donors, corporations, and other special interests. In return,
participating candidates would agree to limit their campaign spending
to amounts raised from small-dollar donors plus the amounts provided
from the Fair Elections Fund.
There are three stages for Senate candidates under this bill. To
participate, candidates would first need to prove their viability by
raising a minimum number and amount of small-dollar qualifying
contributions from in-State donors. Once a candidate qualifies, that
candidate must limit the amount raised from each donor to $150 per
election.
For the primary, participants would receive a base grant that would
vary in amount based on the population of the State that the candidate
seeks to represent. Participants would also receive a 6-to-1 match for
small-dollar donations up to a defined matching cap. The candidate
could raise an unlimited amount of $150 contributions if needed to
compete against high-spending opponents.
For the general election, qualified candidates would receive an
additional grant, further small-dollar matching, and vouchers for
purchasing TV advertising. The candidate could continue to raise an
unlimited amount of $150 contributions if needed. Instead of spending
so much time courting donors and super PACs, fair elections candidates
would have an incentive to spend their time with the middle-class
Americans they want to represent. Candidates would have an incentive to
seek small donations, and citizens would have an incentive to donate.
Under the Fair Elections Now Act, the average citizen would know
their small donation of $150 would be converted to a $900 donation
through the 6-to-1 fair elections match. They would also be eligible
for a refundable tax credit. The Fair Elections Now Act would establish
the ``My Voice Tax Credit'' to encourage individuals to make small
donations to campaigns. The maximum refundable amount for the tax
credit would be $25 for individuals and $50 for joint filers. To ensure
the tax credit targets small donors, it is only available to
individuals who do not contribute more than $300 to a candidate or
political party in any given year.
Our country faces major challenges. Everybody knows we need to reduce
the deficit, modernize our energy policy, create good-paying jobs,
reform the Tax Code, and many other things. What many people may not
know is that at every turn, there are high-powered special interests
fighting each and every one of these proposals. It is difficult for
Members of Congress not to pay attention to the concerns of these
special interests when the Members have to raise money for their own
campaigns.
This bill would change the whole ball game. It would reduce the
influence of these special interest lobbyists and wealthy donors. As a
result, the bill would enhance the voice of average Americans.
Let me be clear. I honestly believe the overwhelming majority of the
people serving in political life are good, honest people, and I believe
Senators and Congressmen are guided by the best of intentions. But we
are stuck in a terrible system. The perception is that politicians are
corrupted because of all the big money we each have to raise. Whether
it is true or not, that perception and the loss of trust that goes with
it makes it incredibly difficult for the Senators to solve tough
problems. That is why so many Americans have Congress in such low
regard. This problem--the perception of pervasive corruption--is
fundamental to our democracy, and we need to address it.
Fair elections is not a farfetched idea. Fair election systems are
already at work in cities and States around America. Similar programs
exist and are working well in jurisdictions throughout the country from
Maine to Arizona. These programs are bringing new faces and new ideas
into politics, making more races more competitive, and dramatically
reducing the influence of special interests.
The vast majority of Americans agree it is time to fundamentally
change the way we finance political campaigns. Recent polling shows
that 75 percent of Democrats, 66 percent of Independents, and 55
percent of Republicans support fair elections-style reform. The Fair
Elections Now Act is supported by numerous good government groups,
former Members of Congress from both parties, prominent business
leaders, and even some lobbyists. Everyone is entitled to a seat at the
table, but no one is entitled to a special seat, or maybe the only
seat. The Fair Elections Now Act will reform our campaign finance
system so Members of Congress can focus on implementing policies in the
best interests of the people who sent them to Washington.
The Presiding Officer just finished a campaign, and I know, having
visited with her in her home State, she worked hard. I am in the midst
of a reelection campaign myself. I know I am working hard. A lot of
time is being spent on the telephone, raising money from a lot of
generous people.
I say in politics there are millionaires and the mere mortals. I am
in the second category, and that means I can't write a check to cover
the cost of a campaign. I have to hope enough people want to support me
in my effort. With those contributions I will be buying media--
primarily television, radio, Internet advertising, some mailings--and
paying for a headquarters and volunteers. It is expensive in a big
State such as Wisconsin or Illinois.
In the Citizens United era, where the traditional campaigns I just
described are frankly not even close to the reality of what candidates
face, one incumbent Democratic Senator now up for reelection has had
over $8 million spent against her in her home State with negative
advertising that has gone on for months--for months. It is being paid
for by some very wealthy billionaires. These billionaires, in this case
the Koch Brothers, spent, I believe, $248 million of their own money in
the last election cycle. They are, in fact, a political party to
themselves. They decide the candidates they support, which,
coincidentally, are all in the other political party, and they invest
huge sums of money in those election efforts. Make no mistake. We are
raising money on the Democratic side too, but not nearly to the numbers
we see on the other side.
This business of politics is being swamped with money in amounts and
levels we have never seen before. What it means is that if an incumbent
or even a challenger wants to have a viable campaign, they spend more
and more time raising money if they can't write a personal check to
cover it--and most of us can't. So instead of being back in my State,
working on issues that are important in the Senate, I spend a lot of
time fundraising. We have become so used to it. It is like the frog in
the pot of water on the stove that may not sense the increase in
temperature until the water is boiling and it is too late. We are in
that same predicament. We are watching, election after election, the
cost of campaigns go through the roof. It discourages good people from
engaging in the political process. It makes small contributors feel as
though they are such small peanuts that nobody even notices.
We have to change that whole concept. I am reluctant to say this, but
so far, this campaign finance reform bill is only being cosponsored by
Members of one political party. I have tried for years to get
Republican support for campaign finance reform. The only Republican
Senator who would ever join me was Arlen Specter of Pennsylvania, who
ultimately changed political parties on me--not on me, but changed
political parties and then I didn't have bipartisan sponsorship.
The point I am getting to is this should be a bipartisan issue. I
have no
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doubt that in a limited campaign with limited expenditures, I would
still have enough money to get my message out in Illinois, and I am
sure my opponent would, too. That would be a godsend, in sparing me and
whomever from raising a lot of money, and a relief to the voters who
get sick and tired of the political advertising that swamps the screens
in the closing days of a campaign.
Fair elections now is an effort to move in that direction. It is a
new concept, but it is one we should look at honestly. We can clean up
the election campaigns in America. We can be responsive to the needs of
our constituents. We can further the goals of our democracy and do it
in a fashion that is affordable and allows mere mortals to compete.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2023
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fair
Elections Now Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
Subtitle A--Fair Elections Financing Program
Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of Fair Elections
financing of Senate election campaigns.
Sec. 103. Prohibition on joint fundraising committees.
Sec. 104. Exception to limitation on coordinated expenditures by
political party committees with participating candidates.
TITLE II--IMPROVING VOTER INFORMATION
Sec. 201. Broadcasts relating to all Senate candidates.
Sec. 202. Broadcast rates for participating candidates.
Sec. 203. FCC to prescribe standardized form for reporting candidate
campaign ads.
TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
Sec. 301. Petition for certiorari.
Sec. 302. Filing by Senate candidates with Commission.
Sec. 303. Electronic filing of FEC reports.
TITLE IV--PARTICIPATION IN FUNDING OF ELECTIONS
Sec. 401. Refundable tax credit for Senate campaign contributions.
TITLE V--REVENUE PROVISIONS
Sec. 501. Fair Elections Fund revenue.
TITLE VI--MISCELLANEOUS PROVISIONS
Sec. 601. Severability.
Sec. 602. Effective date.
TITLE I--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
Subtitle A--Fair Elections Financing Program
SEC. 101. FINDINGS AND DECLARATIONS.
(a) Undermining of Democracy by Campaign Contributions From
Private Sources.--The Senate finds and declares that the
current system of privately financed campaigns for election
to the United States Senate has the capacity, and is often
perceived by the public, to undermine democracy in the United
States by--
(1) creating a culture that fosters actual or perceived
conflicts of interest by encouraging Senators to accept large
campaign contributions from private interests that are
directly affected by Federal legislation;
(2) diminishing or appearing to diminish Senators'
accountability to constituents by compelling legislators to
be accountable to the major contributors who finance their
election campaigns;
(3) undermining the meaning of the right to vote by
allowing monied interests to have a disproportionate and
unfair influence within the political process;
(4) imposing large, unwarranted costs on taxpayers through
legislative and regulatory distortions caused by unequal
access to lawmakers for campaign contributors;
(5) making it difficult for some qualified candidates to
mount competitive Senate election campaigns;
(6) disadvantaging challengers and discouraging competitive
elections; and
(7) burdening incumbents with a preoccupation with
fundraising and thus decreasing the time available to carry
out their public responsibilities.
(b) Enhancement of Democracy by Providing Allocations From
the Fair Elections Fund.--The Senate finds and declares that
providing the option of the replacement of large private
campaign contributions with allocations from the Fair
Elections Fund for all primary, runoff, and general elections
to the Senate would enhance American democracy by--
(1) reducing the actual or perceived conflicts of interest
created by fully private financing of the election campaigns
of public officials and restoring public confidence in the
integrity and fairness of the electoral and legislative
processes through a program which allows participating
candidates to adhere to substantially lower contribution
limits for contributors with an assurance that there will be
sufficient funds for such candidates to run viable electoral
campaigns;
(2) increasing the public's confidence in the
accountability of Senators to the constituents who elect
them, which derives from the program's qualifying criteria to
participate in the voluntary program and the conclusions that
constituents may draw regarding candidates who qualify and
participate in the program;
(3) helping to reduce the ability to make large campaign
contributions as a determinant of a citizen's influence
within the political process by facilitating the expression
of support by voters at every level of wealth, encouraging
political participation, and incentivizing participation on
the part of Senators through the matching of small dollar
contributions;
(4) potentially saving taxpayers billions of dollars that
may be (or that are perceived to be) currently allocated
based upon legislative and regulatory agendas skewed by the
influence of campaign contributions;
(5) creating genuine opportunities for all Americans to run
for the Senate and encouraging more competitive elections;
(6) encouraging participation in the electoral process by
citizens of every level of wealth; and
(7) freeing Senators from the incessant preoccupation with
raising money, and allowing them more time to carry out their
public responsibilities.
SEC. 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF FAIR
ELECTIONS FINANCING OF SENATE ELECTION
CAMPAIGNS.
The Federal Election Campaign Act of 1971 (2 U.S.C. 431 et
seq.) is amended by adding at the end the following:
``TITLE V--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
``Subtitle A--General Provisions
``SEC. 501. DEFINITIONS.
``In this title:
``(1) Allocation from the fund.--The term `allocation from
the Fund' means an allocation of money from the Fair
Elections Fund to a participating candidate pursuant to
section 522.
``(2) Board.--The term `Board' means the Fair Elections
Oversight Board established under section 531.
``(3) Fair elections qualifying period.--The term `Fair
Elections qualifying period' means, with respect to any
candidate for Senator, the period--
``(A) beginning on the date on which the candidate files a
statement of intent under section 511(a)(1); and
``(B) ending on the date that is 30 days before--
``(i) the date of the primary election; or
``(ii) 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.
``(4) Fair elections start date.--The term `Fair Elections
start date' means, with respect to any candidate, the date
that is 180 days before--
``(A) the date of the primary election; or
``(B) 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.
``(5) Fund.--The term `Fund' means the Fair Elections Fund
established by section 502.
``(6) Immediate family.--The term `immediate family' means,
with respect to any 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).
``(7) Matching contribution.--The term `matching
contribution' means a matching payment provided to a
participating candidate for qualified small dollar
contributions, as provided under section 523.
``(8) Nonparticipating candidate.--The term
`nonparticipating candidate' means a candidate for Senator
who is not a participating candidate.
``(9) Participating candidate.--The term `participating
candidate' means a candidate for Senator who is certified
under section 515 as being eligible to receive an allocation
from the Fund.
``(10) Qualifying contribution.--The term `qualifying
contribution' means, with respect to a candidate, a
contribution that--
``(A) is in an amount that is--
``(i) not less than the greater of $5 or the amount
determined by the Commission under section 531; and
``(ii) not more than the greater of $150 or the amount
determined by the Commission under section 531;
``(B) is made by an individual--
``(i) who is a resident of the State in which such
Candidate is seeking election; and
``(ii) who is not otherwise prohibited from making a
contribution under this Act;
``(C) is made during the Fair Elections qualifying period;
and
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``(D) meets the requirements of section 512(b).
``(11) Qualified small dollar contribution.--The term
`qualified small dollar contribution' means, with respect to
a candidate, any contribution (or series of contributions)--
``(A) which is not a qualifying contribution (or does not
include a qualifying contribution);
``(B) which is made by an individual who is not prohibited
from making a contribution under this Act; and
``(C) the aggregate amount of which does not exceed the
greater of--
``(i) $150 per election; or
``(ii) the amount per election determined by the Commission
under section 531.
``SEC. 502. FAIR ELECTIONS FUND.
``(a) Establishment.--There is established in the Treasury
a fund to be known as the `Fair Elections Fund'.
``(b) Amounts Held by Fund.--The Fund shall consist of the
following amounts:
``(1) Appropriated amounts.--
``(A) In general.--Amounts appropriated to the Fund.
``(B) Sense of the senate regarding appropriations.--It is
the sense of the Senate that--
``(i) there should be imposed on any payment made to any
person (other than a State or local government or a foreign
nation) who has contracts with the Government of the United
States in excess of $10,000,000 a tax equal to 0.50 percent
of amount paid pursuant to such contracts, except that the
aggregate tax for any person for any taxable year shall not
exceed $500,000; and
``(ii) the revenue from such tax should be appropriated to
the Fund.
``(2) Voluntary contributions.--Voluntary contributions to
the Fund.
``(3) Other deposits.--Amounts deposited into the Fund
under--
``(A) section 513(c) (relating to exceptions to
contribution requirements);
``(B) section 521(c) (relating to remittance of allocations
from the Fund);
``(C) section 533 (relating to violations); and
``(D) 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
provide benefits to participating candidates as provided in
subtitle C.
``(2) Insufficient amounts.--Under regulations established
by the Commission, rules similar to the rules of section
9006(c) of the Internal Revenue Code shall apply.
``Subtitle B--Eligibility and Certification
``SEC. 511. ELIGIBILITY.
``(a) In General.--A candidate for Senator is eligible to
receive an allocation from the Fund for any election if the
candidate meets the following requirements:
``(1) The candidate files with the Commission a statement
of intent to seek certification as a participating candidate
under this title during the period beginning on the Fair
Elections start date and ending on the last day of the Fair
Elections qualifying period.
``(2) The candidate meets the qualifying contribution
requirements of section 512.
``(3) Not later than the last day of the Fair Elections
qualifying period, the candidate files with the Commission an
affidavit signed by the candidate and the treasurer of the
candidate's principal campaign committee declaring that the
candidate--
``(A) has complied and, if certified, will comply with the
contribution and expenditure requirements of section 513;
``(B) if certified, will comply with the debate
requirements of section 514;
``(C) if certified, will not run as a nonparticipating
candidate during such year in any election for the office
that such candidate is seeking; and
``(D) has either qualified or will take steps to qualify
under State law to be on the ballot.
``(b) General Election.--Notwithstanding subsection (a), a
candidate shall not be eligible to receive an allocation from
the Fund for a general election or a general runoff election
unless the candidate's party nominated the candidate to be
placed on the ballot for the general election or the
candidate otherwise qualified to be on the ballot under State
law.
``SEC. 512. QUALIFYING CONTRIBUTION REQUIREMENT.
``(a) In General.--A candidate for Senator meets the
requirement of this section if, during the Fair Elections
qualifying period, the candidate obtains--
``(1) a number of qualifying contributions equal to the
greater of--
``(A) the sum of--
``(i) 2,000; plus
``(ii) 500 for each congressional district in the State
with respect to which the candidate is seeking election; or
``(B) the amount determined by the Commission under section
531; and
``(2) a total dollar amount of qualifying contributions
equal to the greater of--
``(A) 10 percent of the amount of the allocation such
candidate would be entitled to receive for the primary
election under section 522(c)(1) (determined without regard
to paragraph (5) thereof) if such candidate were a
participating candidate; or
``(B) the amount determined by the Commission under section
531.
``(b) Requirements Relating to Receipt of Qualifying
Contribution.--Each qualifying contribution--
``(1) may be made by means of a personal check, money
order, debit card, credit card, or electronic payment
account;
``(2) shall be accompanied by a signed statement
containing--
``(A) the contributor's name and the contributor's address
in the State in which the contributor is registered to vote;
and
``(B) an oath declaring that the contributor--
``(i) understands that the purpose of the qualifying
contribution is to show support for the candidate so that the
candidate may qualify for Fair Elections financing;
``(ii) is making the contribution in his or her own name
and from his or her own funds;
``(iii) has made the contribution willingly; and
``(iv) has not received any thing of value in return for
the contribution; and
``(3) shall be acknowledged by a receipt that is sent to
the contributor with a copy kept by the candidate for the
Commission and a copy kept by the candidate for the election
authorities in the State with respect to which the candidate
is seeking election.
``(c) Verification of Qualifying Contributions.--The
Commission shall establish procedures for the auditing and
verification of qualifying contributions to ensure that such
contributions meet the requirements of this section.
``SEC. 513. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.
``(a) General Rule.--A candidate for Senator meets the
requirements of this section if, during the election cycle of
the candidate, the candidate--
``(1) except as provided in subsection (b), accepts no
contributions other than--
``(A) qualifying contributions;
``(B) qualified small dollar contributions;
``(C) allocations from the Fund under section 522;
``(D) matching contributions under section 523; and
``(E) vouchers provided to the candidate under section 524;
``(2) makes no expenditures from any amounts other than
from--
``(A) qualifying contributions;
``(B) qualified small dollar contributions;
``(C) allocations from the Fund under section 522;
``(D) matching contributions under section 523; and
``(E) vouchers provided to the candidate under section 524;
and
``(3) makes no expenditures from personal funds or the
funds of any immediate family member (other than funds
received through qualified small dollar contributions and
qualifying contributions).
For purposes of this subsection, 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.
``(b) Contributions for Leadership PACs, etc.--A political
committee of a participating candidate which is not an
authorized committee of such candidate may accept
contributions other than contributions described in
subsection (a)(1) from any person if--
``(1) the aggregate contributions from such person for any
calendar year do not exceed $150; and
``(2) no portion of such contributions is disbursed in
connection with the campaign of the participating candidate.
``(c) Exception.--Notwithstanding subsection (a), a
candidate shall not be treated as having failed to meet the
requirements of this section if any contributions that are
not qualified small dollar contributions, qualifying
contributions, or contributions that meet the requirements of
subsection (b) and that are accepted before the date the
candidate files a statement of intent under section 511(a)(1)
are--
``(1) returned to the contributor; or
``(2) submitted to the Commission for deposit in the Fund.
``SEC. 514. DEBATE REQUIREMENT.
``A candidate for Senator meets the requirements of this
section if the candidate participates in at least--
``(1) 1 public debate before the primary election with
other participating candidates and other willing candidates
from the same party and seeking the same nomination as such
candidate; and
``(2) 2 public debates before the general election with
other participating candidates and other willing candidates
seeking the same office as such candidate.
``SEC. 515. CERTIFICATION.
``(a) In General.--Not later than 5 days after a candidate
for Senator files an affidavit under section 511(a)(3), the
Commission shall--
``(1) certify whether or not the candidate is a
participating candidate; and
``(2) notify the candidate of the Commission's
determination.
``(b) Revocation of Certification.--
``(1) In general.--The Commission may revoke a
certification under subsection (a) if--
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``(A) a candidate fails to qualify to appear on the ballot
at any time after the date of certification; or
``(B) a candidate otherwise fails to comply with the
requirements of this title, including any regulatory
requirements prescribed by the Commission.
``(2) Repayment of benefits.--If certification is revoked
under paragraph (1), the candidate shall repay to the Fund an
amount equal to the value of benefits received under this
title plus interest (at a rate determined by the Commission)
on any such amount received.
``Subtitle C--Benefits
``SEC. 521. BENEFITS FOR PARTICIPATING CANDIDATES.
``(a) In General.--For each election with respect to which
a candidate is certified as a participating candidate, such
candidate shall be entitled to--
``(1) an allocation from the Fund to make or obligate to
make expenditures with respect to such election, as provided
in section 522;
``(2) matching contributions, as provided in section 523;
and
``(3) for the general election, vouchers for broadcasts of
political advertisements, as provided in section 524.
``(b) Restriction on Uses of Allocations From the Fund.--
Allocations from the Fund received by a participating
candidate under sections 522 and matching contributions under
section 523 may only be used for campaign-related costs.
``(c) Remitting Allocations From the Fund.--
``(1) In general.--Not later than the date that is 45 days
after an election in which the participating candidate
appeared on the ballot, such participating candidate shall
remit to the Commission for deposit in the Fund an amount
equal to the lesser of--
``(A) the amount of money in the candidate's campaign
account; or
``(B) the sum of the allocations from the Fund received by
the candidate under section 522 and the matching
contributions received by the candidate under section 523.
``(2) Exception.--In the case of a candidate who qualifies
to be on the ballot for a primary runoff election, a general
election, or a general runoff election, the amounts described
in paragraph (1) may be retained by the candidate and used in
such subsequent election.
``SEC. 522. ALLOCATIONS FROM THE FUND.
``(a) In General.--The Commission shall make allocations
from the Fund under section 521(a)(1) to a participating
candidate--
``(1) in the case of amounts provided under subsection
(c)(1), not later than 48 hours after the date on which such
candidate is certified as a participating candidate under
section 515;
``(2) in the case of a general election, not later than 48
hours after--
``(A) the date of the certification of the results of the
primary election or the primary runoff election; or
``(B) in any case in which there is no primary election,
the date the candidate qualifies to be placed on the ballot;
and
``(3) in the case of a primary runoff election or a general
runoff election, not later than 48 hours after the
certification of the results of the primary election or the
general election, as the case may be.
``(b) Method of Payment.--The Commission shall distribute
funds available to participating candidates under this
section through the use of an electronic funds exchange or a
debit card.
``(c) Amounts.--
``(1) Primary election allocation; initial allocation.--
Except as provided in paragraph (5), the Commission shall
make an allocation from the Fund for a primary election to a
participating candidate in an amount equal to 67 percent of
the base amount with respect to such participating candidate.
``(2) Primary runoff election allocation.--The Commission
shall make an allocation from the Fund for a primary runoff
election to a participating candidate in an amount equal to
25 percent of the amount the participating candidate was
eligible to receive under this section for the primary
election.
``(3) General election allocation.--Except as provided in
paragraph (5), the Commission shall make an allocation from
the Fund for a general election to a participating candidate
in an amount equal to the base amount with respect to such
candidate.
``(4) General runoff election allocation.--The Commission
shall make an allocation from the Fund for a general runoff
election to a participating candidate in an amount equal to
25 percent of the base amount with respect to such candidate.
``(5) Uncontested elections.--
``(A) In general.--In the case of a primary or general
election that is an uncontested election, the Commission
shall make an allocation from the Fund to a participating
candidate for such election in an amount equal to 25 percent
of the allocation which such candidate would be entitled to
under this section for such election if this paragraph did
not apply.
``(B) Uncontested election defined.--For purposes of this
subparagraph, an election is uncontested if not more than 1
candidate has campaign funds (including payments from the
Fund) in an amount equal to or greater than 10 percent of the
allocation a participating candidate would be entitled to
receive under this section for such election if this
paragraph did not apply.
``(d) Base Amount.--
``(1) In general.--Except as otherwise provided in this
subsection, the base amount for any candidate is an amount
equal to the greater of--
``(A) the sum of--
``(i) $750,000; plus
``(ii) $150,000 for each congressional district in the
State with respect to which the candidate is seeking
election; or
``(B) the amount determined by the Commission under section
531.
``(2) Indexing.--In each even-numbered year after 2015--
``(A) each dollar amount under paragraph (1)(A) shall be
increased by the percent difference between the price index
(as defined in section 315(c)(2)(A)) for the 12 months
preceding the beginning of such calendar year and the price
index for calendar year 2014;
``(B) each dollar amount so increased shall remain in
effect for the 2-year period beginning on the first day
following the date of the last general election in the year
preceding the year in which the amount is increased and
ending on the date of the next general election; and
``(C) if any amount after adjustment under subparagraph (A)
is not a multiple of $100, such amount shall be rounded to
the nearest multiple of $100.
``SEC. 523. MATCHING PAYMENTS FOR QUALIFIED SMALL DOLLAR
CONTRIBUTIONS.
``(a) In General.--The Commission shall pay to each
participating candidate an amount equal to 600 percent of the
amount of qualified small dollar contributions received by
the candidate from individuals who are residents of the State
in which such participating candidate is seeking election
after the date on which such candidate is certified under
section 515.
``(b) Limitation.--The aggregate payments under subsection
(a) with respect to any candidate shall not exceed the
greater of--
``(1) 400 percent of the allocation such candidate is
entitled to receive for such election under section 522
(determined without regard to subsection (c)(5) thereof); or
``(2) the percentage of such allocation determined by the
Commission under section 531.
``(c) Time of Payment.--The Commission shall make payments
under this section not later than 2 business days after the
receipt of a report made under subsection (d).
``(d) Reports.--
``(1) In general.--Each participating candidate shall file
reports of receipts of qualified small dollar contributions
at such times and in such manner as the Commission may by
regulations prescribe.
``(2) Contents of reports.--Each report under this
subsection shall disclose--
``(A) the amount of each qualified small dollar
contribution received by the candidate;
``(B) the amount of each qualified small dollar
contribution received by the candidate from a resident of the
State in which the candidate is seeking election; and
``(C) the name, address, and occupation of each individual
who made a qualified small dollar contribution to the
candidate.
``(3) Frequency of reports.--Reports under this subsection
shall be made no more frequently than--
``(A) once every month until the date that is 90 days
before the date of the election;
``(B) once every week after the period described in
subparagraph (A) and until the date that is 21 days before
the election; and
``(C) once every day after the period described in
subparagraph (B).
``(4) Limitation on regulations.--The Commission may not
prescribe any regulations with respect to reporting under
this subsection with respect to any election after the date
that is 180 days before the date of such election.
``(e) Appeals.--The Commission shall provide a written
explanation with respect to any denial of any payment under
this section and shall provide the opportunity for review and
reconsideration within 5 business days of such denial.
``SEC. 524. POLITICAL ADVERTISING VOUCHERS.
``(a) In General.--The Commission shall establish and
administer a voucher program for the purchase of airtime on
broadcasting stations for political advertisements in
accordance with the provisions of this section.
``(b) Candidates.--The Commission shall only disburse
vouchers under the program established under subsection (a)
to participants certified pursuant to section 515 who have
agreed in writing to keep and furnish to the Commission such
records, books, and other information as it may require.
``(c) Amounts.--The Commission shall disburse vouchers to
each candidate certified under subsection (b) in an aggregate
amount equal to the greater of--
``(1) $100,000 multiplied by the number of congressional
districts in the State with respect to which such candidate
is running for office; or
``(2) the amount determined by the Commission under section
531.
``(d) Use.--
``(1) Exclusive use.--Vouchers disbursed by the Commission
under this section may be used only for the purchase of
broadcast airtime for political advertisements relating to a
general election for the office of Senate by the
participating candidate to which the vouchers were disbursed,
except that--
``(A) a candidate may exchange vouchers with a political
party under paragraph (2); and
[[Page S954]]
``(B) a political party may use vouchers only to purchase
broadcast airtime for political advertisements for generic
party advertising (as defined by the Commission in
regulations), to support candidates for State or local office
in a general election, or to support participating candidates
of the party in a general election for Federal office, but
only if it discloses the value of the voucher used as an
expenditure under section 315(d).
``(2) Exchange with political party committee.--
``(A) In general.--A participating candidate who receives a
voucher under this section may transfer the right to use all
or a portion of the value of the voucher to a committee of
the political party of which the individual is a candidate
(or, in the case of a participating candidate who is not a
member of any political party, to a committee of the
political party of that candidate's choice) in exchange for
money in an amount equal to the cash value of the voucher or
portion exchanged.
``(B) Continuation of candidate obligations.--The transfer
of a voucher, in whole or in part, to a political party
committee under this paragraph does not release the candidate
from any obligation under the agreement made under subsection
(b) or otherwise modify that agreement or its application to
that candidate.
``(C) Party committee obligations.--Any political party
committee to which a voucher or portion thereof is
transferred under subparagraph (A)--
``(i) shall account fully, in accordance with such
requirements as the Commission may establish, for the receipt
of the voucher; and
``(ii) may not use the transferred voucher or portion
thereof for any purpose other than a purpose described in
paragraph (1)(B).
``(D) Voucher as a contribution under feca.--If a candidate
transfers a voucher or any portion thereof to a political
party committee under subparagraph (A)--
``(i) the value of the voucher or portion thereof
transferred shall be treated as a contribution from the
candidate to the committee, and from the committee to the
candidate, for purposes of sections 302 and 304;
``(ii) the committee may, in exchange, provide to the
candidate only funds subject to the prohibitions,
limitations, and reporting requirements of title III of this
Act; and
``(iii) the amount, if identified as a `voucher exchange',
shall not be considered a contribution for the purposes of
sections 315 and 513.
``(e) Value; Acceptance; Redemption.--
``(1) Voucher.--Each voucher disbursed by the Commission
under this section shall have a value in dollars, redeemable
upon presentation to the Commission, together with such
documentation and other information as the Commission may
require, for the purchase of broadcast airtime for political
advertisements in accordance with this section.
``(2) Acceptance.--A broadcasting station shall accept
vouchers in payment for the purchase of broadcast airtime for
political advertisements in accordance with this section.
``(3) Redemption.--The Commission shall redeem vouchers
accepted by broadcasting stations under paragraph (2) upon
presentation, subject to such documentation, verification,
accounting, and application requirements as the Commission
may impose to ensure the accuracy and integrity of the
voucher redemption system.
``(4) Expiration.--
``(A) Candidates.--A voucher may only be used to pay for
broadcast airtime for political advertisements to be
broadcast before midnight on the day before the date of the
Federal election in connection with which it was issued and
shall be null and void for any other use or purpose.
``(B) Exception for political party committees.--A voucher
held by a political party committee may be used to pay for
broadcast airtime for political advertisements to be
broadcast before midnight on December 31st of the odd-
numbered year following the year in which the voucher was
issued by the Commission.
``(5) Voucher as expenditure under feca.--The use of a
voucher to purchase broadcast airtime constitutes an
expenditure as defined in section 301(9)(A).
``(f) Definitions.--In this section:
``(1) Broadcasting station.--The term `broadcasting
station' has the meaning given that term by section 315(f)(1)
of the Communications Act of 1934.
``(2) Political party.--The term `political party' means a
major party or a minor party as defined in section 9002(3) or
(4) of the Internal Revenue Code of 1986 (26 U.S.C. 9002 (3)
or (4)).
``Subtitle D--Administrative Provisions
``SEC. 531. FAIR ELECTIONS OVERSIGHT BOARD.
``(a) Establishment.--There is established within the
Federal Election Commission an entity to be known as the
`Fair Elections Oversight Board'.
``(b) Structure and Membership.--
``(1) In general.--The Board shall be composed of 5 members
appointed by the President by and with the advice and consent
of the Senate, of whom--
``(A) 2 shall be appointed after consultation with the
majority leader of the Senate;
``(B) 2 shall be appointed after consultation with the
minority leader of the Senate; and
``(C) 1 shall be appointed upon the recommendation of the
members appointed under subparagraphs (A) and (B).
``(2) Qualifications.--
``(A) In general.--The members shall be individuals who are
nonpartisan and, by reason of their education, experience,
and attainments, exceptionally qualified to perform the
duties of members of the Board.
``(B) Prohibition.--No member of the Board may be--
``(i) an employee of the Federal Government;
``(ii) a registered lobbyist; or
``(iii) an officer or employee of a political party or
political campaign.
``(3) Date.--Members of the Board shall be appointed not
later than 60 days after the date of the enactment of this
Act.
``(4) Terms.--A member of the Board shall be appointed for
a term of 5 years.
``(5) Vacancies.--A vacancy on the Board shall be filled
not later than 30 calendar days after the date on which the
Board is given notice of the vacancy, in the same manner as
the original appointment. The individual appointed to fill
the vacancy shall serve only for the unexpired portion of the
term for which the individual's predecessor was appointed.
``(6) Chairperson.--The Board shall designate a Chairperson
from among the members of the Board.
``(c) Duties and Powers.--
``(1) Administration.--
``(A) In general.--The Board shall have such duties and
powers as the Commission may prescribe, including the power
to administer the provisions of this title.
``(2) Review of fair elections financing.--
``(A) In general.--After each general election for Federal
office, the Board shall conduct a comprehensive review of the
Fair Elections financing program under this title,
including--
``(i) the maximum dollar amount of qualified small dollar
contributions under section 501(11);
``(ii) the maximum and minimum dollar amounts for
qualifying contributions under section 501(10);
``(iii) the number and value of qualifying contributions a
candidate is required to obtain under section 512 to qualify
for allocations from the Fund;
``(iv) the amount of allocations from the Fund that
candidates may receive under section 522;
``(v) the maximum amount of matching contributions a
candidate may receive under section 523;
``(vi) the amount and usage of vouchers under section 524;
``(vii) the overall satisfaction of participating
candidates and the American public with the program; and
``(viii) such other matters relating to financing of Senate
campaigns as the Board determines are appropriate.
``(B) Criteria for review.--In conducting the review under
subparagraph (A), the Board shall consider the following:
``(i) Qualifying contributions and qualified small dollar
contributions.--The Board shall consider whether the number
and dollar amount of qualifying contributions required and
maximum dollar amount for such qualifying contributions and
qualified small dollar contributions strikes a balance
regarding the importance of voter involvement, the need to
assure adequate incentives for participating, and fiscal
responsibility, taking into consideration the number of
primary and general election participating candidates, the
electoral performance of those candidates, program cost, and
any other information the Board determines is appropriate.
``(ii) Review of program benefits.--The Board shall
consider whether the totality of the amount of funds allowed
to be raised by participating candidates (including through
qualifying contributions and small dollar contributions),
allocations from the Fund under sections 522, matching
contributions under section 523, and vouchers under section
524 are sufficient for voters in each State to learn about
the candidates to cast an informed vote, taking into account
the historic amount of spending by winning candidates, media
costs, primary election dates, and any other information the
Board determines is appropriate.
``(C) Adjustment of amounts.--
``(i) In general.--Based on the review conducted under
subparagraph (A), the Board shall provide for the adjustments
of the following amounts:
``(I) the maximum dollar amount of qualified small dollar
contributions under section 501(11)(C);
``(II) the maximum and minimum dollar amounts for
qualifying contributions under section 501(10)(A);
``(III) the number and value of qualifying contributions a
candidate is required to obtain under section 512(a)(1);
``(IV) the base amount for candidates under section 522(d);
``(V) the maximum amount of matching contributions a
candidate may receive under section 523(b); and
``(VI) the dollar amount for vouchers under section 524(c).
``(ii) Regulations.--The Commission shall promulgate
regulations providing for the adjustments made by the Board
under clause (i).
``(D) Report.--Not later than March 30 following any
general election for Federal office, the Board shall submit a
report to Congress on the review conducted under paragraph
(1). Such report shall contain a detailed statement of the
findings, conclusions, and recommendations of the Board based
on such review.
[[Page S955]]
``(d) Meetings and Hearings.--
``(1) Meetings.--The Board may hold such hearings, sit and
act at such times and places, take such testimony, and
receive such evidence as the Board considers advisable to
carry out the purposes of this Act.
``(2) Quorum.--Three members of the Board shall constitute
a quorum for purposes of voting, but a quorum is not required
for members to meet and hold hearings.
``(e) Reports.--Not later than March 30, 2017, and every 2
years thereafter, the Board shall submit to the Senate
Committee on Rules and Administration a report documenting,
evaluating, and making recommendations relating to the
administrative implementation and enforcement of the
provisions of this title.
``(f) Administration.--
``(1) Compensation of members.--
``(A) In general.--Each member, other than the Chairperson,
shall be paid at a rate equal to the daily equivalent of the
minimum annual rate of basic pay prescribed for level IV of
the Executive Schedule under section 5315 of title 5, United
States Code.
``(B) Chairperson.--The Chairperson shall be paid at a rate
equal to the daily equivalent of the minimum annual rate of
basic pay prescribed for level III of the Executive Schedule
under section 5314 of title 5, United States Code.
``(2) Personnel.--
``(A) Director.--The Board shall have a staff headed by an
Executive Director. The Executive Director shall be paid at a
rate equivalent to a rate established for the Senior
Executive Service under section 5382 of title 5, United
States Code.
``(B) Staff appointment.--With the approval of the
Chairperson, the Executive Director may appoint such
personnel as the Executive Director and the Board determines
to be appropriate.
``(C) Actuarial experts and consultants.--With the approval
of the Chairperson, the Executive Director may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
``(D) Detail of government employees.--Upon the request of
the Chairperson, the head of any Federal agency may detail,
without reimbursement, any of the personnel of such agency to
the Board to assist in carrying out the duties of the Board.
Any such detail shall not interrupt or otherwise affect the
civil service status or privileges of the Federal employee.
``(E) Other resources.--The Board shall have reasonable
access to materials, resources, statistical data, and other
information from the Library of Congress and other agencies
of the executive and legislative branches of the Federal
Government. The Chairperson of the Board shall make requests
for such access in writing when necessary.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out the purposes of this subtitle.
``SEC. 532. ADMINISTRATION PROVISIONS.
``The Commission shall prescribe regulations to carry out
the purposes of this title, including regulations--
``(1) to establish procedures for--
``(A) verifying the amount of valid qualifying
contributions with respect to a candidate;
``(B) effectively and efficiently monitoring and enforcing
the limits on the raising of qualified small dollar
contributions;
``(C) effectively and efficiently monitoring and enforcing
the limits on the use of personal funds by participating
candidates;
``(D) monitoring the use of allocations from the Fund and
matching contributions under this title through audits or
other mechanisms; and
``(E) the administration of the voucher program under
section 524; and
``(2) regarding the conduct of debates in a manner
consistent with the best practices of States that provide
public financing for elections.
``SEC. 533. VIOLATIONS AND PENALTIES.
``(a) Civil Penalty for Violation of Contribution and
Expenditure Requirements.--If a candidate who has been
certified as a participating candidate under section 515(a)
accepts a contribution or makes an expenditure that is
prohibited under section 513, 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 Fund.
``(b) Repayment for Improper Use of Fair Elections Fund.--
``(1) In general.--If the Commission determines that any
benefit made available to a participating candidate under
this title was not used as provided for in this title or that
a participating candidate has violated any of the dates for
remission of funds contained in this title, the Commission
shall so notify the candidate and the candidate shall pay to
the Fund an amount equal to--
``(A) the amount of benefits so used or not remitted, as
appropriate; and
``(B) interest on any such amounts (at a rate determined by
the Commission).
``(2) Other action not precluded.--Any action by the
Commission in accordance with this subsection shall not
preclude enforcement proceedings by the Commission in
accordance with section 309(a), including a referral by the
Commission to the Attorney General in the case of an apparent
knowing and willful violation of this title.''.
SEC. 103. PROHIBITION ON JOINT FUNDRAISING COMMITTEES.
Section 302(e) of the Federal Election Campaign Act of 1971
(2 U.S.C. 432(e)) is amended by adding at the end the
following new paragraph:
``(6) No authorized committee of a participating candidate
(as defined in section 501) may establish a joint fundraising
committee with a political committee other than an authorized
committee of a candidate.''.
SEC. 104. EXCEPTION TO LIMITATION ON COORDINATED EXPENDITURES
BY POLITICAL PARTY COMMITTEES WITH
PARTICIPATING CANDIDATES.
Section 315(d) of the Federal Election Campaign Act of 1971
(2 U.S.C. 441a(d)) is amended--
(1) in paragraph (3)(A), by striking ``in the case of'' and
inserting ``except as provided in paragraph (5), in the case
of'' and
(2) by adding at the end the following new paragraph:
``(5)(A) The limitation under paragraph (3)(A) shall not
apply with respect to any expenditure from a qualified
political party-participating candidate coordinated
expenditure fund.
``(B) In this paragraph, the term `qualified political
party-participating candidate coordinated expenditure fund'
means a fund established by the national committee of a
political party, or a State committee of a political party,
including any subordinate committee of a State committee, for
purposes of making expenditures in connection with the
general election campaign of a candidate for election to the
office of Senator who is a participating candidate (as
defined in section 501), that only accepts qualified
coordinated expenditure contributions.
``(C) In this paragraph, the term `qualified coordinated
expenditure contribution' means, with respect to the general
election campaign of a candidate for election to the office
of Senator who is a participating candidate (as defined in
section 501), any contribution (or series of contributions)--
``(i) which is made by an individual who is not prohibited
from making a contribution under this Act; and
``(ii) the aggregate amount of which does not exceed $500
per election.''.
TITLE II--IMPROVING VOTER INFORMATION
SEC. 201. BROADCASTS RELATING TO ALL SENATE CANDIDATES.
(a) Lowest Unit Charge; National Committees.--Section
315(b) of the Communications Act of 1934 (47 U.S.C. 315(b))
is amended--
(1) by striking ``to such office'' in paragraph (1) and
inserting ``to such office, or by a national committee of a
political party on behalf of such candidate in connection
with such campaign,''; and
(2) by inserting ``for pre-emptible use thereof'' after
``station'' in subparagraph (A) of paragraph (1).
(b) Preemption; Audits.--Section 315 of such Act (47 U.S.C.
315) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively and moving them to follow the
existing subsection (e);
(2) by redesignating the existing subsection (e) as
subsection (c); and
(3) by inserting after subsection (c) (as redesignated by
paragraph (2)) the following:
``(d) Preemption.--
``(1) In general.--Except as provided in paragraph (2), and
notwithstanding the requirements of subsection (b)(1)(A), a
licensee shall not preempt the use of a broadcasting station
by a legally qualified candidate for Senate who has purchased
and paid 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
station, any candidate or party advertising spot scheduled to
be broadcast during that program shall be treated in the same
fashion as a comparable commercial advertising spot.
``(e) Audits.--During the 30-day period preceding a primary
election and the 60-day period preceding a general election,
the Commission shall conduct such audits as it deems
necessary to ensure that each broadcaster to which this
section applies is allocating television broadcast
advertising time in accordance with this section and section
312.''.
(c) Revocation of License for Failure To Permit Access.--
Section 312(a)(7) of the Communications Act of 1934 (47
U.S.C. 312(a)(7)) is amended--
(1) by striking ``or repeated'';
(2) by inserting ``or cable system'' after ``broadcasting
station''; and
(3) by striking ``his candidacy'' and inserting ``the
candidacy of the candidate, under the same terms, conditions,
and business practices as apply to the most favored
advertiser of the licensee''.
(d) Stylistic Amendments.--Section 315 of such Act (47
U.S.C. 315) is amended--
(1) by striking ``the'' in subsection (e)(1), as
redesignated by subsection (b)(1), and inserting
``Broadcasting station.--'';
(2) by striking ``the'' in subsection (e)(2), as
redesignated by subsection (b)(1), and inserting ``Licensee;
station licensee.--''; and
(3) by inserting ``Regulations.--'' in subsection (f), as
redesignated by subsection (b)(1), before ``The Commission''.
[[Page S956]]
SEC. 202. BROADCAST RATES FOR PARTICIPATING CANDIDATES.
Section 315(b) of the Communications Act of 1934 (47 U.S.C.
315(b)), as amended by subsection (a), is amended--
(1) in paragraph (1)(A), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)''; and
(2) by adding at the end the following:
``(3) Participating candidates.--In the case of a
participating candidate (as defined under section 501(9) of
the Federal Election Campaign Act of 1971), the charges made
for the use of any broadcasting station for a television
broadcast shall not exceed 80 percent of the lowest charge
described in paragraph (1)(A) during--
``(A) the 45 days preceding the date of a primary or
primary runoff election in which the candidate is opposed;
and
``(B) the 60 days preceding the date of a general or
special election in which the candidate is opposed.
``(4) Rate cards.--A licensee shall provide to a candidate
for Senate a rate card that discloses--
``(A) the rate charged under this subsection; and
``(B) the method that the licensee uses to determine the
rate charged under this subsection.''.
SEC. 203. FCC TO PRESCRIBE STANDARDIZED FORM FOR REPORTING
CANDIDATE CAMPAIGN ADS.
(a) In General.--Within 90 days after the date of enactment
of this Act, the Federal Communications Commission shall
initiate a rulemaking proceeding to establish a standardized
form to be used by broadcasting stations, as defined in
section 315(f)(1) of the Communications Act of 1934 (47
U.S.C. 315(f)(1)), to record and report the purchase of
advertising time by or on behalf of a candidate for
nomination for election, or for election, to Federal elective
office.
(b) Contents.--The form prescribed by the Commission under
subsection (a) shall require, broadcasting stations to report
to the Commission and to the Federal Election Commission, at
a minimum--
(1) the station call letters and mailing address;
(2) the name and telephone number of the station's sales
manager (or individual with responsibility for advertising
sales);
(3) the name of the candidate who purchased the advertising
time, or on whose behalf the advertising time was purchased,
and the Federal elective office for which he or she is a
candidate;
(4) the name, mailing address, and telephone number of the
person responsible for purchasing broadcast political
advertising for the candidate;
(5) notation as to whether the purchase agreement for which
the information is being reported is a draft or final
version; and
(6) the following information about the advertisement:
(A) The date and time of the broadcast.
(B) The program in which the advertisement was broadcast.
(C) The length of the broadcast airtime.
(c) Internet Access.--In its rulemaking under subsection
(a), the Commission shall require any broadcasting station
required to file a report under this section that maintains
an Internet website to make available a link to such reports
on that website.
TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
SEC. 301. 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. 302. FILING BY SENATE 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. 303. ELECTRONIC FILING OF FEC REPORTS.
Section 304(a)(11) of the Federal Election Campaign Act of
1971 (2 U.S.C. 434(a)(11)) is amended--
(1) in subparagraph (A), by striking ``under this Act--''
and all that follows and inserting ``under this Act shall be
required to maintain and file such designation, statement, or
report in electronic form accessible by computers.'';
(2) in subparagraph (B), by striking ``48 hours'' and all
that follows through ``filed electronically)'' and inserting
``24 hours''; and
(3) by striking subparagraph (D).
TITLE IV--PARTICIPATION IN FUNDING OF ELECTIONS
SEC. 401. REFUNDABLE TAX CREDIT FOR SENATE CAMPAIGN
CONTRIBUTIONS.
(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 SENATE CAMPAIGN CONTRIBUTIONS.
``(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 50 percent of the qualified My
Voice Federal Senate campaign contributions paid or incurred
by the taxpayer during the taxable year.
``(b) Limitations.--
``(1) Dollar limitation.--The amount of qualified My Voice
Federal Senate campaign contributions taken into account
under subsection (a) for the taxable year shall not exceed
$50 (twice such amount in the case of a joint return).
``(2) Limitation on contributions to federal senate
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 $300 during the taxable
year to--
``(A) any single Federal Senate candidate, or
``(B) any political committee established and maintained by
a national political party.
``(3) Provision of information.--No credit shall be allowed
under this section to any taxpayer unless the taxpayer
provides the Secretary with such information as the Secretary
may require to verify the taxpayer's eligibility for the
credit and the amount of the credit for the taxpayer.
``(c) Qualified My Voice Federal Senate Contributions.--For
purposes of this section, the term `My Voice Federal Senate
campaign contribution' means any contribution of cash by an
individual to a Federal Senate 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 Senate Candidate.--For purposes of this
section--
``(1) In general.--The term `Federal Senate candidate'
means any candidate for election to the office of Senator.
``(2) Treatment of authorized committees.--Any contribution
made to an authorized committee of a Federal Senate candidate
shall be treated as made to such candidate.
``(e) Inflation Adjustment.--
``(1) In general.--In the case of a taxable year beginning
after 2017, the $50 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 2016'
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 36B the following new item:
``Sec. 36C. Credit for Senate campaign contributions.''.
(c) Forms.--The Secretary of the Treasury, or his designee,
shall ensure that the credit for contributions to Federal
Senate 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) Administration.--At the request of the Secretary of the
Treasury, the Federal Election Commission shall provide the
Secretary of the Treasury with such information and other
assistance as the Secretary may reasonably require to
administer the credit allowed under section 36C of the
Internal Revenue Code of 1986, as added by this section.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2016.
TITLE V--REVENUE PROVISIONS
SEC. 501. FAIR ELECTIONS FUND REVENUE.
(a) In General.--The Internal Revenue Code of 1986 is
amended by inserting after chapter 36 the following new
chapter:
``CHAPTER 37--TAX ON PAYMENTS PURSUANT TO CERTAIN GOVERNMENT CONTRACTS
``Sec. 4501. Imposition of tax.
``SEC. 4501. IMPOSITION OF TAX.
``(a) Tax Imposed.--There is hereby imposed on any payment
made to a qualified person pursuant to a contract with the
Government of the United States a tax equal to 0.50 percent
of the amount paid.
``(b) Limitation.--The aggregate amount of tax imposed
under subsection (a) for any calendar year shall not exceed
$500,000.
``(c) Qualified Person.--For purposes of this section, the
term `qualified person' means any person which--
``(1) is not a State or local government, a foreign nation,
or an organization described in section 501(c)(3) which is
exempt from taxation under section 501(a), and
``(2) has contracts with the Government of the United
States with a value in excess of $10,000,000.
``(d) Payment of Tax.--The tax imposed by this section
shall be paid by the person receiving such payment.
``(e) Use of Revenue Generated by Tax.--It is the sense of
the Senate that amounts equivalent to the revenue generated
by the tax imposed under this chapter should be appropriated
for the financing of a Fair Elections Fund and used for the
public financing of Senate elections.''.
(b) Conforming Amendment.--The table of chapter of the
Internal Revenue Code of 1986
[[Page S957]]
is amended by inserting after the item relating to chapter 36
the following:
``Chapter 37--Tax on Payments Pursuant to Certain Government
Contracts''.
(c) Effective Date.--The amendments made by this section
shall apply to contracts entered into after the date of the
enactment of this Act.
TITLE VI--MISCELLANEOUS PROVISIONS
SEC. 601. SEVERABILITY.
If any provision of this Act or amendment made by this Act,
or the application of a provision or amendment to any person
or circumstance, is held to be unconstitutional, the
remainder of this Act and amendments made by this Act, and
the application of the provisions and amendment to any person
or circumstance, shall not be affected by the holding.
SEC. 602. EFFECTIVE DATE.
Except as otherwise provided for in this Act, this Act and
the amendments made by this Act shall take effect on January
1, 2017.
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