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Title I — Grassroots Participation in Funding of Elections

H.R. 268 · 113th Congress · Jan 15, 2013 · Lineage

I Grassroots Participation in Funding of Elections

A Grassroots Democracy Dollars

Sec. 101 Refundable credit for grassroots contributions to Federal congressional candidates

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

“36C. Credit for grassroots contributions to Federal congressional candidates

“(a) In general—In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to the qualified grassroots Federal congressional campaign contributions paid or incurred by the taxpayer during the taxable year.

“(b) Limitations

“(1) Dollar limitation—The credit allowed under subsection (a) to any taxpayer with respect to any taxable year shall not exceed $25 (twice such amount in the case of a joint return).

“(2) Limitation on contributions to Federal congressional candidates—No credit shall be allowed under this section to any taxpayer for any taxable year if such taxpayer made aggregate contributions in excess of $200 (twice such amount in the case of a joint return) during the taxable year to—

“(A) any single Federal congressional candidate, or

“(B) any political committee established and maintained by a national political party.

“(3) Ineligibility of individuals using Grassroots Democracy Coupons—No credit shall be allowed under this section with respect to any individual for any taxable year during which such individual submitted a Grassroots Democracy Coupon under subtitle B of title I of the Grassroots Democracy Act of 2013 to a candidate for election for Federal office. In the case of a joint return with respect to which this paragraph applies to one of the spouses, such return shall not be treated as a joint return for purposes of determining the dollar limitation under paragraph (1).

“(c) Qualified grassroots Federal congressional campaign contributions—For purposes of this section, the term qualified grassroots Federal congressional campaign contribution means any contribution of cash by an individual to a Federal congressional candidate or to a political committee established and maintained by a national political party if such contribution is not prohibited under the Federal Election Campaign Act of 1971.

“(d) Federal congressional candidate—For purposes of this section—

“(1) In general—The term Federal congressional candidate means any candidate for election to the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress.

“(2) Treatment of authorized committees—Any contribution made to an authorized committee of a Federal congressional candidate shall be treated as made to such candidate.

“(e) Inflation adjustment

“(1) In general—In the case of a taxable year beginning after 2014, the $25 amount under subsection (b)(1) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2013” 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:
(c)
Forms— The Secretary of the Treasury, or his designee, shall ensure that the credit for grassroots contributions to Federal congressional candidates allowed under section 36C of the Internal Revenue Code of 1986, as added by this section, may be claimed on Forms 1040EZ and 1040A.
(d)
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

B Grassroots Democracy Coupon Pilot Program

Sec. 111 Establishment of pilot program

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

Sec. 112 Reports to Congress

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