[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

[[Page S950]]

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

[[Page S951]]

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

[[Page S952]]

       ``(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--

[[Page S953]]

       ``(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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