[Congressional Record Volume 161, Number 92 (Wednesday, June 10, 2015)]
[Senate]
[Pages S4025-S4033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DURBIN (for himself, Ms. Baldwin, Mrs. Boxer, Mr. Brown,
Mr. Franken, Mrs. Gillibrand, Mr. Heinrich, Ms. Klobuchar, Mr.
Leahy, Mr. Markey, Mrs. McCaskill, Mr. Menendez, Mr. Merkley,
Mr. Murphy, Mr. Sanders, Mrs. Shaheen, Mr. Udall, and Ms.
Warren):
S. 1538. A bill to reform the financing of Senate elections, and for
other purposes; to the Committee on Finance.
Mr. DURBIN. 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. 1538
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 (52 U.S.C. 30101
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--
[[Page S4026]]
``(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
``(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.
``(12) Qualifying multicandidate political committee
contribution.--
``(A) In general.--The term `qualifying multicandidate
political committee contribution' means any contribution to a
candidate that is made from a qualified account of a
multicandidate political committee (within the meaning of
section 315(a)(2)).
``(B) Qualified account.--For purposes of subparagraph (A),
the term `qualified account' means, with respect to a
multicandidate political committee, a separate, segregated
account of the committee that consists solely of
contributions which meet the following requirements:
``(i) All contributions to such account are made by
individuals who are not prohibited from making contributions
under this Act.
``(ii) The aggregate amount of contributions from each
individual to such account and all other accounts of the
political committee do not exceed the amount described in
paragraph (11)(C).
``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 anything 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
[[Page S4027]]
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) qualifying multicandidate political committee
contributions;
``(D) allocations from the Fund under section 522;
``(E) matching contributions under section 523; and
``(F) 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) qualifying multicandidate political committee
contributions;
``(D) allocations from the Fund under section 522;
``(E) matching contributions under section 523; and
``(F) 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, qualifying multicandidate political committee
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--
``(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 section 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 2019--
``(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 2018;
``(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.
[[Page S4028]]
``(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
``(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);
[[Page S4029]]
``(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 section 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.
``(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, 2018, 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) monitoring the raising of qualifying multicandidate
political committee contributions through effectively and
efficiently monitoring and enforcing the limits on individual
contributions to qualified accounts of multicandidate
political committees;
``(D) effectively and efficiently monitoring and enforcing
the limits on the use of personal funds by participating
candidates;
``(E) monitoring the use of allocations from the Fund and
matching contributions under this title through audits or
other mechanisms; and
``(F) 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
(52 U.S.C. 30102(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
(52 U.S.C. 30116(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:
``(6)(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
[[Page S4030]]
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)(1) of the Communications Act of 1934 (47 U.S.C.
315(b)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``to such office'' and inserting the following: ``to such
office, or by a national committee of a political party on
behalf of such candidate in connection with such campaign,'';
and
(2) in subparagraph (A), by inserting ``for preemptible use
thereof'' after ``station''.
(b) Preemption; Audits.--Section 315 of the Communications
Act of 1934 (47 U.S.C. 315) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(f) and (g), 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) Technical and Conforming Amendments.--Section 315 of
the Communications Act of 1934 (47 U.S.C. 315) is amended--
(1) in subsection (f), as redesignated by subsection
(b)(1)--
(A) in the matter preceding paragraph (1), by striking
``For purposes of this section--'' and inserting the
following: ``Definitions.--For purposes of this section:'';
(B) in paragraph (1)--
(i) by striking ``the term'' and inserting ``Broadcasting
station.--The term''; and
(ii) by striking ``; and'' and inserting a period; and
(C) in paragraph (2), by striking ``the terms'' and
inserting ``Licensee; station licensee.--The terms''; and
(2) in subsection (g), as redesignated by subsection
(b)(1), by striking ``The Commission'' and inserting
``Regulations.--The Commission''.
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 section 201, 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 in 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.--Not later than 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 each broadcasting station, as
defined in section 315(f) of the Communications Act of 1934
(47 U.S.C. 315(f)) (as redesignated by section 201(b)(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 a broadcasting station 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) with respect to the advertisement--
(A) the date and time of the broadcast;
(B) the program in which the advertisement was broadcast;
and
(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 each such
report 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 (52 U.S.C. 30107(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
(52 U.S.C. 30102(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 (52 U.S.C. 30104(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.
[[Page S4031]]
``(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 2018, 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 2017'
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,
2017.
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 chapters of the
Internal Revenue Code of 1986 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, 2018.
______
By Mr. WHITEHOUSE (for himself and Mr. Schatz):
S. 1548. A bill to amend the Internal Revenue Code of 1986 to provide
for carbon dioxide and other greenhouse gas emission fees, reduce the
rate of the corporate income tax, provide tax credits to workers,
deliver additional benefits to retired and disabled Americans, and for
other purposes; to the Committee on Finance.
Mr. WHITEHOUSE. Mr. President, I rise this evening to introduce,
along with my lead cosponsor, Senator Schatz of Hawaii, the American
Opportunity Carbon Fee Act of 2015.
We announced this legislation this afternoon at an event hosted by
the American Enterprise Institute, and I want to thank the American
Enterprise Institute for their hospitality. I think their interest in
this idea clearly reflects the difference between core conservative
economic principles and simply being pushed around by the hectoring of
the fossil fuel industry. There is a difference between the two, and
this bill meets legitimate conservative economic principles.
I will start by saying the obvious, which is that climate change is
real. It is virtually universal in peer-reviewed science that climate
change is real, that carbon pollution from burning fossil fuels is
causing unprecedented climate and oceanic changes. Every major
scientific society in our country has said so. Our brightest scientists
at NOAA and at NASA are unequivocal. The fundamental science of climate
change is, indeed, settled.
In the details of local application and the extent to which a
particular storm is caused by or exacerbated by climate change, in the
vagaries of prediction about how things are going to be 10 or 15 years
out at those margins, yes--there is always room for conversation and
debate at the margins, but the core science of climate change is beyond
legitimate debate. It is known science, like debating gravity.
Americans get it. In poll after poll, Americans understand that
climate change is real, know that humans are the cause, and want their
government to do something about it.
Climate change is not our only national challenge. The Federal Tax
Code, for example, is a mess, with one of the highest corporate tax
rates in the developed world, while some take advantage of loopholes to
pay far less than others and, indeed, some pay nothing at all. We have
an economic recovery that has left far too many Americans behind, and
we have a job market that has still not fully rebounded.
What if our answer to climate change helped address those other
concerns as well? What if that approach was firmly grounded in core
conservative economic principles, values such as property rights,
market efficiency, and personal liberty?
Aparna Mathur of the free-market think tank the American Enterprise
Institute conducted an analysis with a colleague from the Brookings
Institution showing that a carbon fee could reduce emissions, shore up
the country's fiscal outlook, and play an important part in broader tax
reform. AEI's Kevin Hassett, Steven Hayward, and Kenneth Greene have
pointed out that a carbon fee could obviate some environmental
regulations. The idea behind it is extremely simple. You levy a price
on the thing you don't want--carbon pollution--and you use the revenue
to help with things you do want.
Whether they are called neighborhood effects or negative
externalities, the effects of carbon pollution harm us all.
Conservative economist Milton Friedman wrote that the government exists
in part to reduce such harms. When the costs of such externalities
don't get factored into the price of a product, conservative economic
doctrine--indeed, all economic doctrine--classifies that as a subsidy--
a market failure. Right now for fossil fuel producers, that subsidy is
immense, giving them artificial advantage over cleaner energy sources.
The International Monetary Fund just postulated that the annual subsidy
just in America to the fossil fuel industry is $700 billion. We tend to
talk around here in budget cycles of 10 years. That means it is $7
trillion in a budget cycle. That is a subsidy, all right.
A carbon fee can repair that market failure by incorporating unpriced
damage into the costs of fossil fuels. Then the free market--not
industry, not government--can drive the best energy mix for the
country, with everyone competing on level ground.
That is how Nixon's Treasury Secretary and Reagan's Secretary of
State George Shultz sees it. He and the late Nobel laureate Gary S.
Becker made the case for a carbon fee in the Wall Street Journal. They
wrote:
[[Page S4032]]
Americans like to compete on a level playing field. All
players should have an equal opportunity to win based on
their competitive merits, not on some artificial imbalance
that gives someone or some group a special advantage.
Such as a $700 billion-a-year special advantage.
Just last week, even the CEOs of Europe's major oil companies called
on governments to institute national prices on carbon.
This could be a big economic win. George W. Bush's Treasury Secretary
Hank Paulson said, ``A tax on carbon emissions will unleash a wave of
innovation to develop technologies, lower the costs of clean energy,
and create jobs, as we and other nations develop new energy products
and infrastructure.''
It is in that spirit that I am introducing the American Opportunity
Carbon Fee Act--a framework I hope both Republicans and Democrats can
embrace. The bill would establish an economy-wide carbon fee on carbon
dioxide and other greenhouse gas emissions. The fee would be assessed
way upstream where it is easiest to administer, minimizing the universe
of taxpayers and the compliance burden--at the coal mine, at the
natural gas processing station, and at the petroleum refinery.
Other sources of greenhouse gas emissions would be charged at
existing reporting requirements that are rate tied to the carbon
dioxide equivalency of each gas. Fluorocarbons are assessed at a
special rate that accounts for their high greenhouse potency.
Sequestering, utilizing, or encapsulating carbon dioxide earns you a
credit.
My bill sets the fee per ton of carbon emitted at $45 for 2016. That
is the central range of the social cost of carbon as estimated by the
Office of Management and Budget. That fee would increase each year at a
real 2 percent. When emissions fall 80 percent below 2005 levels, the
annual adjustment falls to inflation.
Border adjustments for the trade of energy-intensive goods include
tariffs on such goods imported from countries with weaker or no carbon
pricing--to make sure we protect our industries at home--and rebates
for U.S. exporters of energy-intensive goods. We took care to design
the border adjustments to achieve harmony with World Trade Organization
rules.
According to the nonpartisan group Resources for the Future, this
carbon fee proposal would reduce U.S. CO2 emissions by more
than 40 percent by 2025.
In addition to the environmental benefits, of course, a carbon fee
also generates revenue. In this case, it would generate over $2
trillion in revenue over 10 years. We intend to return every dime of
that to the American people. Here is how.
First, the bill lowers the top marginal corporate income tax rate
from 35 percent to 29 percent. This would cut American corporate taxes
by almost $600 billion over the first decade.
Second, it provides workers with a $500 refundable tax credit--$1,000
for a couple--to offset the first $500 paid each year in Social
Security payroll taxes. The credit would grow with inflation. The tax
credits would return over $750 billion to American households over the
first 10 years.
Third, it would give benefits to Social Security recipients, veterans
program beneficiaries, and certain other groups of retirees at the same
level as the tax credit. These benefits would total more than $400
billion over 10 years.
Finally, the bill would establish a block grant for States, totalling
$20 billion in 2016 and growing with inflation, to help with low-income
needs, rural households, and transitioning workers. Governors in these
States will know best what to do with the funds. In West Virginia, for
example, they could use the money to transition coal workers into the
technology jobs of the future or to shore up the beleaguered pension
plans of coal miners. Rhode Island, on the other hand, might choose to
make homes more energy efficient. And we have a reporting mechanism for
the public to transparently track where the money is going to assure
that it is all going back to the American people.
The entire bill is 37 pages long--short, simple, straightforward. It
would cut back on the pollution that threatens dramatic changes to our
home planet. It would cut taxes. It would end a grievous market
distortion. It would start a wave of investment and innovation.
With this bill, Senator Schatz and I extend an open hand, or as one
Republican former Congressman who cares about the climate change
problem said: It extends an olive limb to conservatives everywhere.
Whether you want to pursue tax reform or support the free market for
energy, or as Senator Graham suggested this week, honestly address the
real effects of climate change, this can be a vehicle. I hope my
colleagues will agree with me that this is a discussion that we can
continue. I look forward to trying to find a way forward that is better
than simply ignoring this problem, pretending that it does not exist,
and sleepwalking through our moment in history.
It is time to wake up. I have an attachment here that summarizes some
of the support from conservatives and business leaders for a carbon
fee. I ask unanimous consent that this document be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Conservatives and Business Leaders Support a Carbon Fee
Former Republican Appointees
``A tax on carbon emissions will unleash a wave of
innovation to develop technologies, lower the costs of clean
energy and create jobs as we and other nations develop new
energy products and infrastructure.''--Henry M. Paulson,
Treasury Secretary under President George W Bush
``How can you possibly create a level playing field? By
taking a step that makes all forms of energy bear not only
their immediate costs of energy, but also the costs of the
pollution they emit . . . So my proposal is to have a
revenue-neutral carbon tax.''--George P. Schultz, Secretary
of Labor under President Nixon, Treasury Secretary under
Presidents Nixon and Ford, and Secretary of State under
President Reagan
``A market-based approach, like a carbon tax, would be the
best path to reducing greenhouse-gas emissions . . . Rather
than argue against [President Obama's] proposals, our leaders
in Congress should endorse them and start the overdue debate
about what bigger steps are needed and how to achieve
them.''--William D. Ruckelshaus, EPA Administrator under
Presidents Nixon and Reagan; Lee M. Thomas, EPA Administrator
under President Reagan; William K. Reilly, EPA Administrator
under President George H. W. Bush; and Christine Todd
Whitman, EPA Administrator under President George W. Bush
Conservative Members of Congress
``I am no scientist, but I've traveled throughout the world
with Senator McCain and others, and seen the effects of a
warming planet. . . . I've been told by a lot of business
leaders in South Carolina, `Senator Graham, once you price
carbon in a reasonable way, this green economy that we're
hoping for really will begin to flourish.''--Senator Lindsey
Graham (R-SC)
``I wish we would just talk about a carbon tax, 100 percent
of which would be returned to the American people.''--Senator
Bob Corker (R-TN)
``If there's one economic axiom, it's that if you want less
of something, you tax it. Clearly, it's in our interest to
move away from carbon.''-- Senator Jeff Flake (R-AZ)
``We should eliminate all the subsidies. No more Solyndras.
No more production tax credits for wind. No more credits for
electric vehicles. No more special tax provisions for oil and
gas. Level the playing field. The big challenge is reaching
fellow conservatives and convincing them that the biggest
subsidy of all may be to belch and burn into the trash dump
in the sky--for free. That lack of accountability may be the
biggest subsidy of them all.''--former Representative Bob
Inglis (R-SC)
Former Republican Aides
``The scientists tell us that world temperatures are rising
because humans are emitting carbon into the atmosphere. Basic
economics tells us that when you tax something, you normally
get less of it. So if we want to reduce global emissions of
carbon, we need a global carbon tax.''--N. Gregory Mankiw,
economic advisor to Mitt Romney's presidential campaign and
Harvard economist
Using a carbon tax to fund a payroll tax cut ``would be
very good for the economy and as an adjunct, it would reduce
also carbon emissions into the environment.''--Arthur B.
Laffer, economic advisor to President Reagan
``Although a general carbon fuel tax is moot for the
moment, the idea will not go away. If carbon dioxide
emissions are to be reduced further in the U.S., such a tax
will achieve the goal with less economic waste than new
bureaucratic hurdles.''--Martin Feldstein, former Chairman of
President Reagan's Council of Economic Advisors
Conservative Thought-leaders and Economists
[Why a carbon tax?] ``First, it is a less expensive, more
efficient and more effective
[[Page S4033]]
policy than the status quo. . . . Second, greenhouse gas
emissions impose risk. . . . Third, it is the principled
conservative position. Government's role is to protect the
rights to life, liberty, property and the pursuit of
happiness.''--Jerry Taylor, former vice president at the Cato
Institute and cofounder of the Niskanen Center
``We have a unique opportunity to end the rancorous debate
about climate change, a debate that is poisoning the air--the
political air, that is--and inhibiting progress on two
fronts: progress on addressing the possibility that we are on
the road to a catastrophic warming of the globe, and progress
on reforming our anti-growth tax structure, which is so
inequitable that it is straining the public's belief in the
fairness of capitalism and what we like to call `the American
Dream.' All we need do is stop pretending that the cost of
carbon emissions is certainly zero, and that regulation
provides a more efficient solution than the Market.''--Irwin
M. Stelzer, senior fellow at the Hudson Institute
Corporations
This month, the top executives for six major oil and gas
companies penned a letter to the United Nations Framework
Convention on Climate Change calling for a worldwide price on
carbon:
BP, Statoil, Shell, Eni SpA, Total, BG Group.
Many other major companies have integrated an ``internal
carbon fee'' as part of their long-term financial planning.
Companies that have reportedly adopted an internal carbon
price include:
Wal-Mart Stores; Delphi Automotive; Devon Energy
Corporation; Total; Delta Airlines; Jabil Circuit Inc.;
American Electric Power Co.; Entergy Corporation; Xcel Energy
Inc.; Microsoft; Chevron Corporation; Hess Corporation; Wells
Fargo & Company; General Electric Company; E.I. du Pont de
Nemours & Co.; CMS Energy Corporation; Integrys Energy Group;
Walt Disney World; ConocoPhillips; Royal Dutch Shell; Cummins
Inc.; Google Inc.; Ameren Corporation; Duke Energy
Corporation; PG&E Corporation.
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