US Codex
Bill
Notes

Title II — General elections

H.R. 3955 · 115th Congress · Oct 4, 2017 · Lineage

II General elections

Sec. 2001 Modification of eligibility requirements for public financing

Subsection (a) of section 9003 of the Internal Revenue Code of 1986 is amended to read as follows:

“(a) In general—In order to be eligible to receive any payments under section 9006, the candidates of a political party in a presidential election shall meet the following requirements:

“(1) Participation in primary payment system—The candidate for President received payments under chapter 96 for the campaign for nomination for election to be President.

“(2) Agreements with Commission—The candidates, in writing—

“(A) agree to obtain and furnish to the Commission such evidence as it may request of the qualified campaign expenses of such candidates,

“(B) agree to keep and furnish to the Commission such records, books, and other information as it may request, and

“(C) agree to an audit and examination by the Commission under section 9007 and to pay any amounts required to be paid under such section.

“(3) Ban on bundled contributions—The candidates certify to the Commission, under penalty of perjury and within such time prior to the day of the presidential election as the Commission shall prescribe by rules or regulations, that the candidates and the authorized committees of such candidates will not accept any bundled contribution (as defined in section 304(i)(8) of the Federal Election Campaign Act of 1971) forwarded by or credited to a person described in section 304(i)(7) of such Act.”

Sec. 2002 Repeal of expenditure limitations and use of qualified campaign contributions

(a)
Use of qualified campaign contributions without expenditure limits; application of same requirements for major, minor, and new parties— Section 9003 of the Internal Revenue Code of 1986 is amended by striking subsections (b) and (c) and inserting the following:

“(b) Use of Qualified Campaign Contributions To Defray Expenses

“(1) In general—In order to be eligible to receive any payments under section 9006, the candidates of a party in a presidential election shall certify to the Commission, under penalty of perjury, that—

“(A) such candidates and their authorized committees have not and will not accept any contributions to defray qualified campaign expenses other than—

“(i) qualified campaign contributions, and

“(ii) contributions to the extent necessary to make up any deficiency payments received out of the fund on account of the application of section 9006(c), and

“(B) such candidates and their authorized committees have not and will not accept any contribution to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11).

“(2) Timing of certification—The candidate shall make the certification required under this subsection at the same time the candidate makes the certification required under subsection (a)(3).”

(b)
Definition of qualified campaign contribution— Section 9002 of such Code is amended by adding at the end the following new paragraph:

“(13) Qualified campaign contribution—The term qualified campaign contribution means, with respect to any election for the office of President of the United States, a contribution from an individual to a candidate or an authorized committee of a candidate which—

“(A) does not exceed $1,000 for the election; and

“(B) with respect to which the candidate has certified in writing that—

“(i) the individual making such contribution has not made aggregate contributions (including such qualified contribution) to such candidate and the authorized committees of such candidate in excess of the amount described in subparagraph (A), and

“(ii) such candidate and the authorized committees of such candidate will not accept contributions from such individual (including such qualified contribution) aggregating more than the amount described in subparagraph (A) with respect to such election.”

(c)
Conforming amendments—
(1)
Repeal of expenditure limits—
(A)
In general— Section 315 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30116) is amended by striking subsection (b).
(B)
Conforming amendments— Section 315(c) of such Act (52 U.S.C. 30116(c)) is amended—
(i)
in paragraph (1)(B)(i), by striking “, (b)”; and
(ii)
in paragraph (2)(B)(i), by striking “subsections (b) and (d)” and inserting “subsection (d)”.
(2)
Repeal of repayment requirement—
(A)
In general— Section 9007(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.
(B)
Conforming amendment— Paragraph (2) of section 9007(b) of such Code, as redesignated by subparagraph (A), is amended—
(i)
by striking “a major party” and inserting “a party”;
(ii)
by inserting “qualified contributions and” after “contributions (other than”; and
(iii)
by striking “(other than qualified campaign expenses with respect to which payment is required under paragraph (2))”.
(3)
Criminal penalties—
(A)
Repeal of penalty for excess expenses— Section 9012 of the Internal Revenue Code of 1986 is amended by striking subsection (a).
(B)
Penalty for acceptance of disallowed contributions; application of same penalty for candidates of major, minor, and new parties— Subsection (b) of section 9012 of such Code is amended to read as follows:

“(b) Contributions

“(1) Acceptance of disallowed contributions—It shall be unlawful for an eligible candidate of a party in a presidential election or any of his authorized committees knowingly and willfully to accept any contribution to defray qualified campaign expenses, except to the extent necessary to make up any deficiency in payments received out of the fund on account of the application of section 9006(c), or to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11).

“(2) Penalty—Any person who violates paragraph (1) shall be fined not more than $5,000, or imprisoned not more than one year, or both. In the case of a violation by an authorized committee, any officer or member of such committee who knowingly and willfully consents to such violation shall be fined not more than $5,000, or imprisoned not more than one year, or both.”

Sec. 2003 Matching payments and other modifications to payment amounts

(a)
In general—
(1)
Amount of payments; application of same amount for candidates of major, minor, and new parties— Subsection (a) of section 9004 of the Internal Revenue Code of 1986 is amended to read as follows:

“(a) In general—Subject to the provisions of this chapter, the eligible candidates of a party in a presidential election shall be entitled to equal payment under section 9006 in an amount equal to 600 percent of the amount of each matchable contribution received by such candidate or by the candidate’s authorized committees (disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person for the election exceeds $200), except that total amount to which a candidate is entitled under this paragraph shall not exceed $300,000,000.”

(2)
Repeal of separate limitations for candidates of minor and new parties; inflation adjustment— Subsection (b) of section 9004 of such Code is amended to read as follows:

“(b) Inflation adjustment

“(1) In general—In the case of any applicable period beginning after 2019, the $300,000,000 dollar amount in subsection (a) 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 following the year which such applicable period begins, determined by substituting “calendar year 2018” for “calendar year 1992” in subparagraph (B) thereof.

“(2) Applicable period—For purposes of this subsection, the term applicable period means the 4-year period beginning with the first day following the date of the general election for the office of President and ending on the date of the next such general election.

“(3) Rounding—If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.”

(3)
Conforming amendment— Section 9005(a) of such Code is amended by adding at the end the following new sentence: “The Commission shall make such additional certifications as may be necessary to receive payments under section 9004.”.
(b)
Matchable contribution— Section 9002 of such Code, as amended by section 2002, is amended by adding at the end the following new paragraph:

“(14) Matchable contribution—The term matchable contribution means, with respect to the election to the office of President of the United States, a contribution by an individual to a candidate or an authorized committee of a candidate with respect to which the candidate has certified in writing that—

“(A) the individual making such contribution has not made aggregate contributions (including such matchable contribution) to such candidate and the authorized committees of such candidate in excess of $1,000 for the election;

“(B) such candidate and the authorized committees of such candidate will not accept contributions from such individual (including such matchable contribution) aggregating more than the amount described in subparagraph (A) with respect to such election; and

“(C) such contribution was not—

“(i) forwarded from the contributor by any person other than an individual, or

“(ii) received by the candidate or committee from a contributor or contributors, but credited by the committee or candidate to another person who is not an individual through records, designations, or other means of recognizing (whether in writing or not in writing) that a certain amount of money has been raised by such person.”

Sec. 2004 Increase in limit on coordinated party expenditures

(a)
In general— Section 315(d)(2) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30116(d)(2)) is amended to read as follows:

“(2)

“(A) The national committee of a political party may not make any expenditure in connection with the general election campaign of any candidate for President of the United States who is affiliated with such party which exceeds $100,000,000.

“(B) For purposes of this paragraph—

“(i) any expenditure made by or on behalf of a national committee of a political party and in connection with a presidential election shall be considered to be made in connection with the general election campaign of a candidate for President of the United States who is affiliated with such party; and

“(ii) any communication made by or on behalf of such party shall be considered to be made in connection with the general election campaign of a candidate for President of the United States who is affiliated with such party if any portion of the communication is in connection with such election.

“(C) Any expenditure under this paragraph shall be in addition to any expenditure by a national committee of a political party serving as the principal campaign committee of a candidate for the office of President of the United States.”

(b)
Conforming Amendments Relating to Timing of Cost-of-Living Adjustment—
(1)
In general— Section 315(c)(1) of such Act (52 U.S.C. 30116(c)(1)), as amended by section 2002(c)(1)(B), is amended—
(A)
in subparagraph (B), by striking “(d)” and inserting “(d)(3)”; and
(B)
by inserting at the end the following new subparagraph:

“(D) In any calendar year after 2018—

“(i) the dollar amount in subsection (d)(2) shall be increased by the percent difference determined under subparagraph (A);

“(ii) the amount so increased shall remain in effect for the calendar year; and

“(iii) if the amount after adjustment under clause (i) is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.”

(2)
Base year— Section 315(c)(2)(B) of such Act (52 U.S.C. 30116(c)(2)(B)), as amended by section 2002(c)(1)(B), is amended—
(A)
in clause (i)—
(i)
by striking “(d)” and inserting “(d)(3)”; and
(ii)
by striking “and” at the end;
(B)
in clause (ii), by striking the period at the end and inserting “; and”; and
(C)
by adding at the end the following new clause:

“(iii) for purposes of subsection (d)(2), calendar year 2017.”

Sec. 2005 Establishment of uniform date for release of payments

(a)
Date for payments—
(1)
In general— Section 9006(b) of the Internal Revenue Code of 1986 is amended to read as follows:

“(b) Payments from the Fund—If the Secretary of the Treasury receives a certification from the Commission under section 9005 for payment to the eligible candidates of a political party, the Secretary shall pay to such candidates out of the fund the amount certified by the Commission on the later of—

“(1) the last Friday occurring before the first Monday in September; or

“(2) 24 hours after receiving the certifications for the eligible candidates of all major political parties.”

(2)
Conforming Amendment— The first sentence of section 9006(c) of such Code is amended by striking “the time of a certification by the Commission under section 9005 for payment” and inserting “the time of making a payment under subsection (b)”.
(b)
Time for certification— Section 9005(a) of the Internal Revenue Code of 1986 is amended by striking “10 days” and inserting “24 hours”.

Sec. 2006 Amounts in Presidential Election Campaign Fund

(a)
Determination of amounts in fund— Section 9006(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: “In making a determination of whether there are insufficient moneys in the fund for purposes of the previous sentence, the Secretary shall take into account in determining the balance of the fund for a Presidential election year the Secretary’s best estimate of the amount of moneys which will be deposited into the fund during the year, except that the amount of the estimate may not exceed the average of the annual amounts deposited in the fund during the previous 3 years.”.
(b)
Special rule for first campaign cycle under this Act—
(1)
In general— Section 9006 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(d) Special authority To borrow

“(1) In general—Notwithstanding subsection (c), there are authorized to be appropriated to the fund, as repayable advances, such sums as are necessary to carry out the purposes of the fund during the period ending on the first presidential election occurring after the date of the enactment of this subsection.

“(2) Repayment of advances

“(A) In general—Advances made to the fund shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury when the Secretary determines that moneys are available for such purposes in the fund.

“(B) Rate of interest—Interest on advances made to the fund shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding and shall be compounded annually.”

(2)
Effective date— The amendment made by this subsection shall take effect January 1, 2018.

Sec. 2007 Use of general election payments for general election legal and accounting compliance

Section 9002(11) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: “For purposes of subparagraph (A), an expense incurred by a candidate or authorized committee for general election legal and accounting compliance purposes shall be considered to be an expense to further the election of such candidate.”.