Division C — Civic Participation and Empowerment
C Civic Participation and Empowerment
V Nonpartisan Redistricting Reform
Sec. 5002 Ban on mid-decade redistricting
Sec. 5003 Criteria for redistricting
Sec. 5004 Development of plan
Sec. 5005 Failure by State to enact plan
Sec. 5006 Civil enforcement
Sec. 5007 No effect on elections for State and local office
Sec. 5008 Effective date
VI Campaign Finance Transparency
A DISCLOSE Act
Sec. 6001 Short title
Sec. 6002 Findings
1 Closing Loopholes Allowing Spending by Foreign Nationals in Elections
Sec. 6003 Clarification of application of foreign money ban to certain disbursements and activities
“(1) Foreign national—The term”
“(2) Contribution and donation—For purposes of paragraphs (1) and (2) of subsection (a), the term contribution or donation includes any disbursement to a political committee which accepts donations or contributions that do not comply with any of the limitations, prohibitions, and reporting requirements of this Act (or any disbursement to or on behalf of any account of a political committee which is established for the purpose of accepting such donations or contributions), or to any other person for the purpose of funding an expenditure, independent expenditure, or electioneering communication (as defined in section 304(f)(3)).”
Sec. 6004 Study and report on illicit foreign money in Federal elections
Sec. 6005 Prohibition on contributions and donations by foreign nationals in connection with ballot initiatives and referenda
“(3) Federal, state, or local election—The term Federal, State, or local election includes a State or local ballot initiative or referendum, but only in the case of—
“(A) a covered foreign national described in section 304(j)(3)(C); or
“(B) a foreign principal described in section 1(b)(2) or 1(b)(3) of the Foreign Agent Registration Act of 1938, as amended (22 U.S.C. 611(b)(2) or (b)(3)) or an agent of such a foreign principal under such Act.”
Sec. 6006 Disbursements and activities subject to foreign money ban
“(C) an expenditure;
“(D) an independent expenditure;
“(E) a disbursement for an electioneering communication (within the meaning of section 304(f)(3));
“(F) a disbursement for a communication which is placed or promoted for a fee on a website, web application, or digital application that refers to a clearly identified candidate for election for Federal office and is disseminated within 60 days before a general, special or runoff election for the office sought by the candidate or 30 days before a primary or preference election, or a convention or caucus of a political party that has authority to nominate a candidate for the office sought by the candidate;
“(G) a disbursement by a covered foreign national described in section 304(j)(3)(C) for a broadcast, cable or satellite communication, or for a communication which is placed or promoted for a fee on a website, web application, or digital application, that promotes, supports, attacks or opposes the election of a clearly identified candidate for Federal, State, or local office (regardless of whether the communication contains express advocacy or the functional equivalent of express advocacy);
“(H) a disbursement for a broadcast, cable, or satellite communication, or for any communication which is placed or promoted for a fee on an online platform (as defined in section 304(k)(3)), that discusses a national legislative issue of public importance in a year in which a regularly scheduled general election for Federal office is held, but only if the disbursement is made by a covered foreign national described in section 304(j)(3)(C);
“(I) a disbursement by a covered foreign national described in section 304(j)(3)(C) to compensate any person for internet activity that promotes, supports, attacks or opposes the election of a clearly identified candidate for Federal, State, or local office (regardless of whether the activity contains express advocacy or the functional equivalent of express advocacy); or
“(J) a disbursement by a covered foreign national described in section 304(j)(3)(C) for a Federal judicial nomination communication (as defined in section 324(g)(2));”
Sec. 6007 Prohibiting establishment of corporation to conceal election contributions and donations by foreign nationals
“613. Establishment of corporation to conceal election contributions and donations by foreign nationals
“(a) Offense—It shall be unlawful for an owner, officer, attorney, or incorporation agent of a corporation, company, or other entity to establish or use the corporation, company, or other entity with the intent to conceal an activity of a foreign national (as defined in section 319 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121)) prohibited under such section 319.
“(b) Penalty—Any person who violates subsection (a) shall be imprisoned for not more than 5 years, fined under this title, or both.”
2 Reporting of Campaign-Related Disbursements
Sec. 6011 Reporting of campaign-related disbursements
“324. Disclosure of campaign-related disbursements by covered organizations
“(a) Disclosure statement
“(1) In general—Any covered organization that makes campaign-related disbursements aggregating more than $10,000 in an election reporting cycle shall, not later than 24 hours after each disclosure date, file a statement with the Commission made under penalty of perjury that contains the information described in paragraph (2)—
“(A) in the case of the first statement filed under this subsection, for the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the first such disclosure date) and ending on the first such disclosure date; and
“(B) in the case of any subsequent statement filed under this subsection, for the period beginning on the previous disclosure date and ending on such disclosure date.
“(2) Information described—The information described in this paragraph is as follows:
“(A) The name of the covered organization and the principal place of business of such organization and, in the case of a covered organization that is a corporation (other than a business concern that is an issuer of a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of that Act (15 U.S.C. 78o(d))) or an entity described in subsection (e)(2), a list of the beneficial owners (as defined in paragraph (4)(A)) of the entity that—
“(i) identifies each beneficial owner by name and current residential or business street address; and
“(ii) if any beneficial owner exercises control over the entity through another legal entity, such as a corporation, partnership, limited liability company, or trust, identifies each such other legal entity and each such beneficial owner who will use that other entity to exercise control over the entity.
“(B) The amount of each campaign-related disbursement made by such organization during the period covered by the statement of more than $1,000, and the name and address of the person to whom the disbursement was made.
“(C) In the case of a campaign-related disbursement that is not a covered transfer, the election to which the campaign-related disbursement pertains and if the disbursement is made for a public communication, the name of any candidate identified in such communication and if such communication is in support of or in opposition to the identified candidate.
“(D) A certification by the chief executive officer or person who is the head of the covered organization that the campaign-related disbursement is not made in cooperation, consultation, or concert with or at the request or suggestion of a candidate, authorized committee, or agent of a candidate, political party, or agent of a political party.
“(E)
“(i) If the covered organization makes campaign-related disbursements using exclusively funds in a campaign-related disbursement segregated fund, for each payment made to the account by a person other than the covered organization—
“(I) the name and address of each person who made such payment to the account during the period covered by the statement;
“(II) the date and amount of such payment; and
“(III) the aggregate amount of all such payments made by the person during the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the disclosure date) and ending on the disclosure date,
“(ii) In any calendar year after 2024, section 315(c)(1)(B) shall apply to the amount described in clause (i) in the same manner as such section applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, except that for purposes of applying such section to the amounts described in subsection (b), the “base period” shall be calendar year 2024.
“(F)
“(i) If the covered organization makes campaign-related disbursements using funds other than funds in a campaign-related disbursement segregated fund, for each payment to the covered organization—
“(I) the name and address of each person who made such payment during the period covered by the statement;
“(II) the date and amount of such payment; and
“(III) the aggregate amount of all such payments made by the person during the period beginning on the first day of the election reporting cycle (or, if earlier, the period beginning one year before the disclosure date) and ending on the disclosure date,
“(ii) In any calendar year after 2024, section 315(c)(1)(B) shall apply to the amount described in clause (i) in the same manner as such section applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, except that for purposes of applying such section to the amounts described in subsection (b), the “base period” shall be calendar year 2024.
“(G) Such other information as required in rules established by the Commission to promote the purposes of this section.
“(3) Exceptions
“(A) Amounts received in ordinary course of business—The requirement to include in a statement filed under paragraph (1) the information described in paragraph (2) shall not apply to amounts received by the covered organization in commercial transactions in the ordinary course of any trade or business conducted by the covered organization or in the form of investments (other than investments by the principal shareholder in a limited liability corporation) in the covered organization. For purposes of this subparagraph, amounts received by a covered organization as remittances from an employee to the employee’s collective bargaining representative shall be treated as amounts received in commercial transactions in the ordinary course of the business conducted by the covered organization.
“(B) Donor restriction on use of funds—The requirement to include in a statement submitted under paragraph (1) the information described in subparagraph (F) of paragraph (2) shall not apply if—
“(i) the person described in such subparagraph prohibited, in writing, the use of the payment made by such person for campaign-related disbursements; and
“(ii) the covered organization agreed to follow the prohibition and deposited the payment in an account which is segregated from a campaign-related disbursement segregated fund and any other account used to make campaign-related disbursements.
“(C) Threat of harassment or reprisal—The requirement to include any information relating to the name or address of any person (other than a candidate) in a statement submitted under paragraph (1) shall not apply if the inclusion of the information would subject the person to serious threats, harassment, or reprisals.
“(4) Other definitions—For purposes of this section:
“(A) Beneficial owner defined
“(i) In general—Except as provided in clause (ii), the term beneficial owner means, with respect to any entity, a natural person who, directly or indirectly—
“(I) exercises substantial control over an entity through ownership, voting rights, agreement, or otherwise; or
“(II) has a substantial interest in or receives substantial economic benefits from the assets of an entity.
“(ii) Exceptions—The term beneficial owner shall not include—
“(I) a minor child;
“(II) a person acting as a nominee, intermediary, custodian, or agent on behalf of another person;
“(III) a person acting solely as an employee of an entity and whose control over or economic benefits from the entity derives solely from the employment status of the person;
“(IV) a person whose only interest in an entity is through a right of inheritance, unless the person also meets the requirements of clause (i); or
“(V) a creditor of an entity, unless the creditor also meets the requirements of clause (i).
“(iii) Anti-abuse rule—The exceptions under clause (ii) shall not apply if used for the purpose of evading, circumventing, or abusing the provisions of clause (i) or paragraph (2)(A).
“(B) Campaign-related disbursement segregated fund—The term campaign-related disbursement segregated fund means a segregated bank account consisting of funds that were paid directly to such account by persons other than the covered organization that controls the account.
“(C) Disclosure date—The term disclosure date means—
“(i) the first date during any election reporting cycle by which a person has made campaign-related disbursements aggregating more than $10,000; and
“(ii) any other date during such election reporting cycle by which a person has made campaign-related disbursements aggregating more than $10,000 since the most recent disclosure date for such election reporting cycle.
“(D) Election reporting cycle—The term election reporting cycle means the 2-year period beginning on the date of the most recent general election for Federal office.
“(E) Payment—The term payment includes any contribution, donation, transfer, payment of dues, or other payment.
“(b) Coordination with other provisions—Information included in a statement filed under this section may be excluded from statements and reports filed under section 304.
“(c) Filing—Statements required to be filed under subsection (a) shall be subject to the requirements of section 304(d) to the same extent and in the same manner as if such reports had been required under subsection (c) or (g) of section 304.
“(d) Campaign-Related disbursement defined
“(1) In general—In this section, the term campaign-related disbursement means a disbursement by a covered organization for any of the following:
“(A) An independent expenditure which expressly advocates the election or defeat of a clearly identified candidate for election for Federal office, or is the functional equivalent of express advocacy because, when taken as a whole, it can be interpreted by a reasonable person only as advocating the election or defeat of a candidate for election for Federal office.
“(B) An applicable public communication.
“(C) An electioneering communication, as defined in section 304(f)(3).
“(D) A covered transfer.
“(2) Applicable public communications
“(A) In general—The term applicable public communication means any public communication that refers to a clearly identified candidate for election for Federal office and which promotes or supports the election of a candidate for that office, or attacks or opposes the election of a candidate for that office, without regard to whether the communication expressly advocates a vote for or against a candidate for that office.
“(B) Exception—Such term shall not include any news story, commentary, or editorial distributed through the facilities of any broadcasting station or any print, online, or digital newspaper, magazine, publication, or periodical, unless such facilities are owned or controlled by any political party, political committee, or candidate.
“(e) Covered organization defined—In this section, the term covered organization means any of the following:
“(1) A corporation (other than an organization described in section 501(c)(3) of the Internal Revenue Code of 1986).
“(2) A limited liability corporation that is not otherwise treated as a corporation for purposes of this Act (other than an organization described in section 501(c)(3) of the Internal Revenue Code of 1986).
“(3) An organization described in section 501(c) of such Code and exempt from taxation under section 501(a) of such Code (other than an organization described in section 501(c)(3) of such Code).
“(4) A labor organization (as defined in section 316(b)).
“(5) Any political organization under section 527 of the Internal Revenue Code of 1986, other than a political committee under this Act (except as provided in paragraph (6)).
“(6) A political committee with an account that accepts donations or contributions that do not comply with the contribution limits or source prohibitions under this Act, but only with respect to such accounts.
“(f) Covered transfer defined
“(1) In general—In this section, the term covered transfer means any transfer or payment of funds by a covered organization to another person if the covered organization—
“(A) designates, requests, or suggests that the amounts be used for—
“(i) campaign-related disbursements (other than covered transfers); or
“(ii) making a transfer to another person for the purpose of making or paying for such campaign-related disbursements;
“(B) made such transfer or payment in response to a solicitation or other request for a donation or payment for—
“(i) the making of or paying for campaign-related disbursements (other than covered transfers); or
“(ii) making a transfer to another person for the purpose of making or paying for such campaign-related disbursements;
“(C) engaged in discussions with the recipient of the transfer or payment regarding—
“(i) the making of or paying for campaign-related disbursements (other than covered transfers); or
“(ii) donating or transferring any amount of such transfer or payment to another person for the purpose of making or paying for such campaign-related disbursements; or
“(D) knew or had reason to know that the person receiving the transfer or payment would make campaign-related disbursements in an aggregate amount of $50,000 or more during the 2-year period beginning on the date of the transfer or payment.
“(2) Exclusions—The term covered transfer does not include any of the following:
“(A) A disbursement made by a covered organization in a commercial transaction in the ordinary course of any trade or business conducted by the covered organization or in the form of investments made by the covered organization.
“(B) A disbursement made by a covered organization if—
“(i) the covered organization prohibited, in writing, the use of such disbursement for campaign-related disbursements; and
“(ii) the recipient of the disbursement agreed to follow the prohibition and deposited the disbursement in an account which is segregated from a campaign-related disbursement segregated fund and any other account used to make campaign-related disbursements.
“(3) Special rule regarding transfers among affiliates
“(A) Special rule—A transfer of an amount by one covered organization to another covered organization which is treated as a transfer between affiliates under subparagraph (C) shall be considered a covered transfer by the covered organization which transfers the amount only if the aggregate amount transferred during the year by such covered organization to that same covered organization is equal to or greater than $50,000.
“(B) Determination of amount of certain payments among affiliates—In determining the amount of a transfer between affiliates for purposes of subparagraph (A), to the extent that the transfer consists of funds attributable to dues, fees, or assessments which are paid by individuals on a regular, periodic basis in accordance with a per-individual calculation which is made on a regular basis, the transfer shall be attributed to the individuals paying the dues, fees, or assessments and shall not be attributed to the covered organization.
“(C) Description of transfers between affiliates—A transfer of amounts from one covered organization to another covered organization shall be treated as a transfer between affiliates if—
“(i) one of the organizations is an affiliate of the other organization; or
“(ii) each of the organizations is an affiliate of the same organization,
“(D) Determination of affiliate status—For purposes of subparagraph (C), a covered organization is an affiliate of another covered organization if—
“(i) the governing instrument of the organization requires it to be bound by decisions of the other organization;
“(ii) the governing board of the organization includes persons who are specifically designated representatives of the other organization or are members of the governing board, officers, or paid executive staff members of the other organization, or whose service on the governing board is contingent upon the approval of the other organization; or
“(iii) the organization is chartered by the other organization.
“(E) Coverage of transfers to affiliated Section 501(c)(3) organizations—This paragraph shall apply with respect to an amount transferred by a covered organization to an organization described in paragraph (3) of section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code in the same manner as this paragraph applies to an amount transferred by a covered organization to another covered organization.
“(g) No effect on other reporting requirements—Except as provided in subsection (b)(1), nothing in this section shall be construed to waive or otherwise affect any other requirement of this Act which relates to the reporting of campaign-related disbursements.”
Sec. 6012 Reporting of Federal judicial nomination disbursements
“(g) Application to Federal judicial nominations
“(1) In general—For purposes of this section—
“(A) a disbursement by a covered organization for a Federal judicial nomination communication shall be treated as a campaign-related disbursement; and
“(B) in the case of campaign-related disbursements which are for Federal judicial nomination communications—
“(i) the dollar amounts in paragraphs (1) and (2) of subsection (a) shall be applied separately with respect to such disbursements and other campaign-related disbursements;
“(ii) the election reporting cycle shall be the calendar year in which the disbursement for the Federal judicial nomination communication is made;
“(iii) references to a candidate in subsections (a)(2)(C), (a)(2)(D), and (a)(3)(C) shall be treated as references to a nominee for a Federal judge or justice; and
“(iv) the reference to an election in subsection (a)(2)(C) shall be treated as a reference to the nomination of such nominee.
“(2) Federal judicial nomination communication
“(A) In general—The term Federal judicial nomination communication means any communication—
“(i) that is by means of any broadcast, cable, or satellite, paid internet, or paid digital communication, paid promotion, newspaper, magazine, outdoor advertising facility, mass mailing, telephone bank, telephone messaging effort of more than 500 substantially similar calls or electronic messages within a 30-day period, or any other form of general public political advertising; and
“(ii) which promotes, supports, attacks, or opposes the nomination or Senate confirmation of an individual as a Federal judge or justice.
“(B) Exception—Such term shall not include any news story, commentary, or editorial distributed through the facilities of any broadcasting station or any print, online, or digital newspaper, magazine, publication, or periodical, unless such facilities are owned or controlled by any political party, political committee, or candidate.
“(C) Intent not required—A disbursement for an item described in subparagraph (A) shall be treated as a disbursement for a Federal judicial nomination communication regardless of the intent of the person making the disbursement.”
Sec. 6013 Coordination with FinCEN
Sec. 6014 Application of foreign money ban to disbursements for campaign-related disbursements consisting of covered transfers
“(A) any disbursement”
“(B) any disbursement, other than a disbursement described in section 324(a)(3)(A), to another person who made a campaign-related disbursement consisting of a covered transfer (as described in section 324) during the 2-year period ending on the date of the disbursement.”
Sec. 6015 Sense of Congress regarding implementation
Sec. 6016 Effective date
3 Other Administrative Reforms
Sec. 6021 Petition for certiorari
Sec. 6022 Judicial review of actions related to campaign finance laws
“407. Judicial review
“(a) In general—If any action is brought for declaratory or injunctive relief to challenge, whether facially or as-applied, the constitutionality or lawfulness of any provision of this Act, including title V, or of chapter 95 or 96 of the Internal Revenue Code of 1986, or is brought to with respect to any action of the Commission under chapter 95 or 96 of the Internal Revenue Code of 1986, the following rules shall apply:
“(1) The action shall be filed in the United States District Court for the District of Columbia and an appeal from the decision of the district court may be taken to the Court of Appeals for the District of Columbia Circuit.
“(2) In the case of an action relating to declaratory or injunctive relief to challenge the constitutionality of a provision, the party filing the action shall concurrently deliver a copy of the complaint to the Clerk of the House of Representatives and the Secretary of the Senate.
“(3) It shall be the duty of the United States District Court for the District of Columbia and the Court of Appeals for the District of Columbia Circuit to advance on the docket and to expedite to the greatest possible extent the disposition of the action and appeal.
“(b) Clarifying scope of jurisdiction—If an action at the time of its commencement is not subject to subsection (a), but an amendment, counterclaim, cross-claim, affirmative defense, or any other pleading or motion is filed challenging, whether facially or as-applied, the constitutionality or lawfulness of this Act or of chapter 95 or 96 of the Internal Revenue Code of 1986, or is brought to with respect to any action of the Commission under chapter 95 or 96 of the Internal Revenue Code of 1986, the district court shall transfer the action to the District Court for the District of Columbia, and the action shall thereafter be conducted pursuant to subsection (a).
“(c) Intervention by Members of Congress—In any action described in subsection (a) relating to declaratory or injunctive relief to challenge the constitutionality of a provision, any Member of the House of Representatives (including a Delegate or Resident Commissioner to the Congress) or Senate shall have the right to intervene either in support of or opposition to the position of a party to the case regarding the constitutionality of the provision. To avoid duplication of efforts and reduce the burdens placed on the parties to the action, the court in any such action may make such orders as it considers necessary, including orders to require interveners taking similar positions to file joint papers or to be represented by a single attorney at oral argument.
“(d) Challenge by Members of Congress—Any Member of Congress may bring an action, subject to the special rules described in subsection (a), for declaratory or injunctive relief to challenge, whether facially or as-applied, the constitutionality of any provision of this Act or chapter 95 or 96 of the Internal Revenue Code of 1986.”
“9011. Judicial review
“For provisions relating to judicial review of certifications, determinations, and actions by the Commission under this chapter, see section 407 of the Federal Election Campaign Act of 1971.”
“9041. Judicial review
“For provisions relating to judicial review of actions by the Commission under this chapter, see section 407 of the Federal Election Campaign Act of 1971.”
Sec. 6023 Effective date
B Honest Ads
Sec. 6101 Short title
Sec. 6102 Purpose
Sec. 6103 Findings
Sec. 6104 Sense of Congress
Sec. 6105 Expansion of definition of public communication
“(i) any news story, commentary, or editorial distributed through the facilities of any broadcasting station or any print, online, or digital newspaper, magazine, publication, periodical, blog, or platform, unless such broadcasting, print, online, or digital facilities are owned or controlled by any political party, political committee, or candidate;”
Sec. 6106 Expansion of definition of electioneering communication
“(D) Qualified Internet or digital communication—The term qualified internet or digital communication means any communication which is placed or promoted for a fee on an online platform (as defined in subsection (k)(3)).”
“(i) a communication appearing in a news story, commentary, or editorial distributed through the facilities of any broadcasting station or any online or digital newspaper, magazine, publication, periodical, blog, or platform, unless such broadcasting, online, or digital facilities are owned or controlled by any political party, political committee, or candidate;”
Sec. 6107 Application of disclaimer statements to online communications
“(e) Special rules for qualified Internet or digital communications
“(1) Special rules with respect to statements—In the case of any qualified internet or digital communication (as defined in section 304(f)(3)(D)) which is disseminated through a medium in which the provision of all of the information specified in this section is not possible, the communication shall, in a clear and conspicuous manner—
“(A) state the name of the person who paid for the communication; and
“(B) provide a means for the recipient of the communication to obtain the remainder of the information required under this section with minimal effort and without receiving or viewing any additional material other than such required information.
“(2) Safe harbor for determining clear and conspicuous manner—A statement in qualified internet or digital communication (as defined in section 304(f)(3)(D)) shall be considered to be made in a clear and conspicuous manner as provided in subsection (a) if the communication meets the following requirements:
“(A) Text or graphic communications—In the case of a text or graphic communication, the statement—
“(i) appears in letters at least as large as the majority of the text in the communication; and
“(ii) meets the requirements of paragraphs (2) and (3) of subsection (c).
“(B) Audio communications—In the case of an audio communication, the statement is spoken in a clearly audible and intelligible manner at the beginning or end of the communication and lasts at least 3 seconds.
“(C) Video communications—In the case of a video communication which also includes audio, the statement—
“(i) is included at either the beginning or the end of the communication; and
“(ii) is made both in—
“(I) a written format that meets the requirements of subparagraph (A) and appears for at least 4 seconds; and
“(II) an audible format that meets the requirements of subparagraph (B).
“(D) Other communications—In the case of any other type of communication, the statement is at least as clear and conspicuous as the statement specified in subparagraph (A), (B), or (C).”
Sec. 6108 Political record requirements for online platforms
“(k) Disclosure of certain online advertisements
“(1) In general
“(A) Requirements for online platforms
“(i) In general—An online platform shall maintain, and make available for online public inspection in machine-readable format, a complete record of any qualified political advertisement which is purchased by a person whose aggregate purchases of qualified political advertisements on such online platform during the calendar year exceeds $500.
“(ii) Requirement relating to political ads sold by third-party advertising vendors—An online platform that displays a qualified political advertisement sold by a third-party advertising vendor shall include on its own platform—
“(I) an easily accessible and identifiable link to the records maintained by the third-party advertising vendor under clause (i) regarding such qualified political advertisement; or
“(II) in any case in which the third-party advertising vendor does not make such records available, a statement that no records from the third-party advertising vendor’s records are available.
“(B) Requirements for advertisers—Any person who requests to purchase a qualified political advertisement on an online platform shall provide the online platform with such information as is necessary for the online platform to comply with the requirements of subparagraph (A).
“(2) Contents of record—A record maintained under paragraph (1)(A) shall contain—
“(A) a digital copy of the qualified political advertisement;
“(B) a description of the audience that received the advertisement, the number of views generated from the advertisement, and the date and time that the advertisement is first displayed and last displayed; and
“(C) information regarding—
“(i) the total cost of the advertisement (which may be rounded to the nearest $100);
“(ii) the name of the candidate to which the advertisement refers and the office to which the candidate is seeking election, the election to which the advertisement refers, or the national legislative issue to which the advertisement refers (as applicable);
“(iii) in the case of a request made by, or on behalf of, a candidate, the name of the candidate, the authorized committee of the candidate, and the treasurer of such committee; and
“(iv) in the case of any request not described in clause (iii), the name of the person purchasing the advertisement, the name and address of a contact person for such person, and a list of the chief executive officers or members of the executive committee or of the board of directors of such person.
“(3) Online platform
“(A) In general—For purposes of this subsection, subject to subparagraph (B), the term online platform means any public-facing website, web application, or digital application (including a social network, ad network, or search engine) which—
“(i)
“(I) sells qualified political advertisements; and
“(II) has 50,000,000 or more unique monthly United States visitors or users for a majority of months during the preceding 12 months; or
“(ii) is a third-party advertising vendor that has 50,000,000 or more unique monthly United States visitors in the aggregate on any advertisement space that it has sold or bought for a majority of months during the preceding 12 months, as measured by an independent digital ratings service accredited by the Media Ratings Council (or its successor).
“(B) Exemption—Such term shall not include any online platform that is a distribution facility of any broadcasting station or newspaper, magazine, blog, publication, or periodical.
“(C) Third-party advertising vendor defined—For purposes of this subsection, the term third-party advertising vendor includes any third-party advertising vendor network, advertising agency, advertiser, or third-party advertisement serving company that buys and sells advertisement space on behalf of unaffiliated third-party websites, search engines, digital applications, or social media sites.
“(4) Qualified political advertisement—For purposes of this subsection, the term qualified political advertisement means any advertisement (including search engine marketing, display advertisements, video advertisements, native advertisements, and sponsorships) that—
“(A) is made by or on behalf of a candidate; or
“(B) communicates a message relating to any political matter of national importance, including—
“(i) a candidate;
“(ii) any election to Federal office; or
“(iii) a national legislative issue of public importance.
“(5) Time to maintain file—The information required under this subsection shall be made available as soon as possible and shall be retained by the online platform for a period of not less than 4 years.
“(6) Special rule—For purposes of this subsection, multiple versions of an advertisement that contain no material differences (such as versions that differ only because they contain a recipient’s name, or differ only in size, color, font, or layout) may be treated as a single qualified political advertisement.
“(7) Penalties—For penalties for failure by online platforms, and persons requesting to purchase a qualified political advertisement on online platforms, to comply with the requirements of this subsection, see section 309.”
Sec. 6109 Preventing contributions, expenditures, independent expenditures, and disbursements for electioneering communications by foreign nationals in the form of online advertising
“(c) Responsibilities of broadcast stations, providers of cable and satellite television, and online platforms
“(1) In general—Each television or radio broadcast station, provider of cable or satellite television, or online platform (as defined in section 304(k)(3)) shall make reasonable efforts to ensure that communications described in section 318(a) and made available by such station, provider, or platform are not purchased by a foreign national, directly or indirectly.
“(2) Regulations—Not later than 1 year after the date of the enactment of this subsection, the Commission shall promulgate regulations on what constitutes reasonable efforts under paragraph (1).”
Sec. 6110 Requiring online platforms to display notices identifying sponsors of political advertisements and to ensure notices continue to be present when advertisements are shared
“(l) Ensuring display and sharing of sponsor identification in online political advertisements
“(1) Requirement—Any online platform that displays a qualified political advertisement (regardless of whether such qualified political advertisement was purchased directly from the online platform) shall—
“(A) display with the advertisement a visible notice identifying the sponsor of the advertisement (or, if it is not practical for the platform to display such a notice, a notice that the advertisement is sponsored by a person other than the platform); and
“(B) ensure that the notice will continue to be displayed if a viewer of the advertisement shares the advertisement with others on that platform.
“(2) Safe harbor—An online platform shall not be treated as having failed to comply with the requirements of paragraph (1)(A) for the misidentification of a person as the sponsor of a the advertisement if—
“(A) the person placing the online advertisement designated the person displayed in the advertisement as the sponsor; and
“(B) the online platform relied on such designation in good faith.
“(3) Definitions—In this subsection—
“(A) the term online platform has the meaning given such term in subsection (k)(3);
“(B) the term ‘qualified political advertisement has the meaning given such term in subsection (k)(4); and
“(C) the term sponsor means the person purchasing the advertisement.”
C Spotlight Act
Sec. 6201 Short title
Sec. 6202 Inclusion of contributor information on annual returns of certain organizations
“(o) Additional requirements for organizations described in subsections (c)(5) and (c)(6) of section 501—Every organization which is described in paragraph (5) or (6) of section 501(c) and which is subject to the requirements of subsection (a) shall include on the return required under subsection (a) the information referred to in subsection (b)(5).”
“(B) Discretionary exceptions
“(i) In general—Paragraph (1) shall not apply to any organization if the Secretary made a determination under this subparagraph before July 16, 2018, that such filing is not necessary to the efficient administration of the internal revenue laws.
“(ii) Recommendations for other exceptions—The Secretary may recommend to Congress that Congress relieve any organization required under paragraph (1) to file an information return from filing such a return if the Secretary determines that such filing does not advance a national security, law enforcement, or tax administration purpose.”
VII Campaign Finance Oversight
A Stopping Super PAC–Candidate Coordination
Sec. 7001 Short title
Sec. 7002 Clarification of treatment of coordinated expenditures as contributions to candidates
“(iii) any payment made by any person (other than a candidate, an authorized committee of a candidate, or a political committee of a political party) for a coordinated expenditure (as such term is defined in section 325) which is not otherwise treated as a contribution under clause (i) or clause (ii).”
“325. Payments for coordinated expenditures
“(a) Coordinated expenditures
“(1) In general—For purposes of section 301(8)(A)(iii), the term coordinated expenditure means—
“(A) any expenditure, or any payment for a covered communication described in subsection (e), which is made in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, an authorized committee of a candidate, a political committee of a political party, or agents of the candidate or committee, as defined in subsection (b); or
“(B) any payment for any communication which republishes, disseminates, or distributes, in whole or in part, any video or broadcast or any written, graphic, or other form of campaign material prepared by the candidate or committee or by agents of the candidate or committee (including any excerpt or use of any video from any such broadcast or written, graphic, or other form of campaign material).
“(2) Exception for payments for certain communications—A payment for a communication (including a covered communication described in subsection (e)) shall not be treated as a coordinated expenditure under this subsection if—
“(A) the communication appears in a news story, commentary, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, or other periodical publication, unless such facilities are owned or controlled by any political party, political committee, or candidate; or
“(B) the communication constitutes a candidate debate or forum conducted pursuant to regulations adopted by the Commission pursuant to section 304(f)(3)(B)(iii), or which solely promotes such a debate or forum and is made by or on behalf of the person sponsoring the debate or forum.
“(b) Coordination described
“(1) In general—For purposes of this section, a payment is made “in cooperation, consultation, or concert with, or at the request or suggestion of,” a candidate, an authorized committee of a candidate, a political committee of a political party, or agents of the candidate or committee, if the payment, or any communication for which the payment is made, is not made entirely independently of the candidate, committee, or agents. For purposes of the previous sentence, a payment or communication not made entirely independently of the candidate or committee includes any payment or communication made pursuant to any general or particular understanding with, or pursuant to any communication with, the candidate, committee, or agents about the payment or communication.
“(2) No finding of coordination based solely on sharing of information regarding legislative or policy position—For purposes of this section, a payment shall not be considered to be made by a person in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate or committee, solely on the grounds that the person or the person’s agent engaged in discussions with the candidate or committee, or with any agent of the candidate or committee, regarding that person's position on a legislative or policy matter (including urging the candidate or committee to adopt that person's position), so long as there is no communication between the person and the candidate or committee, or any agent of the candidate or committee, regarding the candidate’s or committee’s campaign advertising, message, strategy, policy, polling, allocation of resources, fundraising, or other campaign activities.
“(3) No effect on party coordination standard—Nothing in this section shall be construed to affect the determination of coordination between a candidate and a political committee of a political party for purposes of section 315(d).
“(c) Payments by coordinated spenders for covered communications
“(1) Payments made in cooperation, consultation, or concert with candidates—For purposes of subsection (a)(1)(A), if the person who makes a payment for a covered communication, as defined in subsection (e), is a coordinated spender under paragraph (2) with respect to the candidate as described in paragraph (2), the payment for the covered communication is made in cooperation, consultation, or concert with the candidate.
“(2) Coordinated spender defined—For purposes of this subsection, the term coordinated spender means, with respect to a candidate or an authorized committee of a candidate, a person (other than a political committee of a political party) for which any of the following applies:
“(A) During the 4-year period ending on the date on which the person makes the payment, the person was directly or indirectly formed or established by or at the request or suggestion of, or with the encouragement of, the candidate (including an individual who later becomes a candidate) or committee or agents of the candidate or committee, including with the approval of the candidate or committee or agents of the candidate or committee.
“(B) The candidate or committee or any agent of the candidate or committee solicits funds, appears at a fundraising event, or engages in other fundraising activity on the person’s behalf during the election cycle involved, including by providing the person with names of potential donors or other lists to be used by the person in engaging in fundraising activity, regardless of whether the person pays fair market value for the names or lists provided. For purposes of this subparagraph, the term election cycle means, with respect to an election for Federal office, the period beginning on the day after the date of the most recent general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election) and ending on the date of the next general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election).
“(C) The person is established, directed, or managed by the candidate or committee or by any person who, during the 4-year period ending on the date on which the person makes the payment, has been employed or retained as a political, campaign media, or fundraising adviser or consultant for the candidate or committee or for any other entity directly or indirectly controlled by the candidate or committee, or has held a formal position with the candidate or committee (including a position as an employee of the office of the candidate at any time the candidate held any Federal, State, or local public office during the 4-year period).
“(D) The person has retained the professional services of any person who, during the 2-year period ending on the date on which the person makes the payment, has provided or is providing professional services relating to the campaign to the candidate or committee, unless the person providing the professional services used a firewall or similar procedure in accordance with subsection (d). For purposes of this subparagraph, the term professional services includes any services in support of the candidate’s or committee’s campaign activities, including advertising, message, strategy, policy, polling, allocation of resources, fundraising, and campaign operations, but does not include accounting or legal services.
“(E) The person is established, directed, or managed by a member of the immediate family of the candidate, or the person or any officer or agent of the person has had more than incidental discussions about the candidate’s campaign with a member of the immediate family of the candidate. For purposes of this subparagraph, the term immediate family has the meaning given such term in section 9004(e) of the Internal Revenue Code of 1986.
“(d) Use of firewall as safe harbor
“(1) No coordination if firewall applies—A person shall not be determined to have made a payment in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate or committee in accordance with this section if the person established and used a firewall or similar procedure to restrict the sharing of information between individuals who are employed by or who are serving as agents for the person making the payment, but only if the firewall or similar procedures meet the requirements of paragraph (2).
“(2) Requirements described—The requirements described in this paragraph with respect to a firewall or similar procedure are as follows:
“(A) The firewall or procedure is designed and implemented to prohibit the flow of information between employees and consultants providing services for the person paying for the communication and those employees or consultants providing, or who previously provided, services to a candidate who is clearly identified in the communication or an authorized committee of the candidate, the candidate’s opponent or an authorized committee of the candidate’s opponent, or a committee of a political party.
“(B) The firewall or procedure must be described in a written policy that is distributed, signed, and dated by all relevant employees, consultants, and clients subject to the policy.
“(C) The policy must be preserved and retained by the person for at least 5 years following any termination or cessation of representation by employees, consultants, and clients who are subject to the policy.
“(D) The policy must prohibit any employees, consultants, and clients who are subject to the policy from attending meetings, trainings, or other discussions where nonpublic plans, projects, activities, or needs of candidates for election for Federal office or political committees are discussed.
“(E) The policy must prohibit each owner of an organization, and each executive, manager, and supervisor within an organization, from simultaneously overseeing the work of employees and consultants who are subject to the firewall or procedure.
“(F) The policy must place restrictions on internal and external communications, including by establishing separate emailing lists, for employees, consultants, and clients who are subject to the firewall or procedure and those who are not subject to the firewall or procedure.
“(G) The policy must require the person to establish separate files, including electronic file folders—
“(i) for employees, consultants, and clients who are subject to the firewall or procedure and to prohibit access to such files by employees, consultants, and clients who are not subject to the firewall or procedure; and
“(ii) for employees, consultants, and clients who are not subject to the firewall or procedure and to prohibit access to such files by employees, consultants, and clients who are subject to the firewall or procedure.
“(H) The person must conduct a training on the applicable requirements and obligations of this Act and the policy for all employees, consultants, and clients.
“(3) Exception if information is shared regardless of firewall—A person who established and used a firewall or similar procedure which meets the requirements of paragraph (2) shall be determined to have made a payment in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate or committee in accordance with this section if specific information indicates that, notwithstanding the establishment and use of the firewall or similar procedure, information about the candidate’s or committee’s campaign plans, projects, activities, or needs that is material to the creation, production, or distribution of the covered communication was used or conveyed to the person paying for the communication.
“(4) Use as defense to enforcement action—If, in a procedure or action brought by the Commission under section 309, a person who is alleged to have committed a violation of this Act which involves the making of a contribution which consists of a payment for a coordinated expenditure raises the use of a firewall or similar procedure as a defense, the person shall provide the Commission with—
“(A) a copy of the signed and dated firewall or procedure policy which applied to the person’s employees, consultants, or clients whose conduct is at issue in the procedure or action; and
“(B) a sworn, written affidavit of the employees, consultants, or clients who were subject to the policy that the terms, conditions, and requirements of the policy were met.
“(e) Covered communication defined
“(1) In general—For purposes of this section, the term covered communication means, with respect to a candidate or an authorized committee of a candidate, a public communication (as defined in section 301(22)) which—
“(A) expressly advocates the election of the candidate or the defeat of an opponent of the candidate (or contains the functional equivalent of express advocacy);
“(B) promotes or supports the election of the candidate, or attacks or opposes the election of an opponent of the candidate (regardless of whether the communication expressly advocates the election or defeat of a candidate or contains the functional equivalent of express advocacy); or
“(C) refers to the candidate or an opponent of the candidate but is not described in subparagraph (A) or subparagraph (B), but only if the communication is disseminated during the applicable election period.
“(2) Applicable election period—In paragraph (1)(C), the “applicable election period” with respect to a communication means—
“(A) in the case of a communication which refers to a candidate in a general, special, or runoff election, the 120-day period which ends on the date of the election; or
“(B) in the case of a communication which refers to a candidate in a primary or preference election, or convention or caucus of a political party that has authority to nominate a candidate, the 60-day period which ends on the date of the election or convention or caucus.
“(3) Special rules for communications involving congressional candidates—For purposes of this subsection, a public communication shall not be considered to be a covered communication with respect to a candidate for election for an office other than the office of President or Vice President unless it is publicly disseminated or distributed in the jurisdiction of the office the candidate is seeking.
“(f) Penalty
“(1) Determination of amount—Any person who knowingly and willfully commits a violation of this Act which involves the making of a contribution which consists of a payment for a coordinated expenditure shall be fined an amount equal to the greater of—
“(A) in the case of a person who makes a contribution which consists of a payment for a coordinated expenditure in an amount exceeding the applicable contribution limit under this Act, 300 percent of the amount by which the amount of the payment made by the person exceeds such applicable contribution limit; or
“(B) in the case of a person who is prohibited under this Act from making a contribution in any amount, 300 percent of the amount of the payment made by the person for the coordinated expenditure.
“(2) Joint and several liability—Any director, manager, or officer of a person who is subject to a penalty under paragraph (1) shall be jointly and severally liable for any amount of such penalty that is not paid by the person prior to the expiration of the 1-year period which begins on the date the Commission imposes the penalty or the 1-year period which begins on the date of the final judgment following any judicial review of the Commission’s action, whichever is later.”
B Restoring Integrity to America’s Elections
Sec. 7101 Short title
Sec. 7102 Revision to enforcement process
“(2)
“(A) The general counsel, upon receiving a complaint filed with the Commission under paragraph (1) or upon the basis of information ascertained by the Commission in the normal course of carrying out its supervisory responsibilities, shall make a determination as to whether or not there is reason to believe that a person has committed, or is about to commit, a violation of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1986, and as to whether or not the Commission should either initiate an investigation of the matter or that the complaint should be dismissed. The general counsel shall promptly provide notification to the Commission of such determination and the reasons therefore, together with any written response submitted under paragraph (1) by the person alleged to have committed the violation. Upon the expiration of the 30-day period which begins on the date the general counsel provides such notification, the general counsel’s determination shall take effect, unless during such 30-day period the Commission, by vote of a majority of the members of the Commission who are serving at the time, overrules the general counsel’s determination. If the determination by the general counsel that the Commission should investigate the matter takes effect, or if the determination by the general counsel that the complaint should be dismissed is overruled as provided under the previous sentence, the general counsel shall initiate an investigation of the matter on behalf of the Commission.
“(B) If the Commission initiates an investigation pursuant to subparagraph (A), the Commission, through the Chair, shall notify the subject of the investigation of the alleged violation. Such notification shall set forth the factual basis for such alleged violation. The Commission shall make an investigation of such alleged violation, which may include a field investigation or audit, in accordance with the provisions of this section. The general counsel shall provide notification to the Commission of any intent to issue a subpoena or conduct any other form of discovery pursuant to the investigation. Upon the expiration of the 15-day period which begins on the date the general counsel provides such notification, the general counsel may issue the subpoena or conduct the discovery, unless during such 15-day period the Commission, by vote of a majority of the members of the Commission who are serving at the time, prohibits the general counsel from issuing the subpoena or conducting the discovery.
“(3)
“(A) Upon completion of an investigation under paragraph (2), the general counsel shall make a determination as to whether or not there is probable cause to believe that a person has committed, or is about to commit, a violation of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1986, and shall promptly submit such determination to the Commission, and shall include with the determination a brief stating the position of the general counsel on the legal and factual issues of the case.
“(B) At the time the general counsel submits to the Commission the determination under subparagraph (A), the general counsel shall simultaneously notify the respondent of such determination and the reasons therefore, shall provide the respondent with an opportunity to submit a brief within 30 days stating the position of the respondent on the legal and factual issues of the case and replying to the brief of the general counsel. The general counsel shall promptly submit such brief to the Commission upon receipt.
“(C) Upon the expiration of the 30-day period which begins on the date the general counsel submits the determination to the Commission under subparagraph (A) (or, if the respondent submits a brief under subparagraph (B), upon the expiration of the 30-day period which begins on the date the general counsel submits the respondent’s brief to the Commission under such subparagraph), the general counsel’s determination shall take effect, unless during such 30-day period the Commission, by vote of a majority of the members of the Commission who are serving at the time, overrules the general counsel’s determination. If the determination by the general counsel that there is probable cause to believe that a person has committed, or is about to commit, a violation of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1986, or if the determination by the general counsel that there is not probable cause that a person has committed or is about to commit such a violation is overruled as provided under the previous sentence, for purposes of this subsection, the Commission shall be deemed to have determined that there is probable cause that the person has committed or is about to commit such a violation.”
“(8)
“(A)
“(i) Any party aggrieved by an order of the Commission dismissing a complaint filed by such party may file a petition with the United States District Court for the District of Columbia. Any petition under this subparagraph shall be filed within 60 days after the date on which the party received notice of the dismissal of the complaint.
“(ii) In any proceeding under this subparagraph, the court shall determine by de novo review whether the agency’s dismissal of the complaint is contrary to law. In any matter in which the penalty for the alleged violation is greater than $50,000, the court should disregard any claim or defense by the Commission of prosecutorial discretion as a basis for dismissing the complaint.
“(B)
“(i) Any party who has filed a complaint with the Commission and who is aggrieved by a failure of the Commission, within one year after the filing of the complaint, to act on such complaint, may file a petition with the United States District Court for the District of Columbia.
“(ii) In any proceeding under this subparagraph, the court shall determine by de novo review whether the agency’s failure to act on the complaint is contrary to law.
“(C) In any proceeding under this paragraph the court may declare that the dismissal of the complaint or the failure to act is contrary to law, and may direct the Commission to conform with such declaration within 30 days, failing which the complainant may bring, in the name of such complainant, a civil action to remedy the violation involved in the original complaint.”
Sec. 7103 Official exercising the responsibilities of the general counsel
Sec. 7104 Permitting appearance at hearings on requests for advisory opinions by persons opposing the requests
“(e) To the extent that the Commission provides an opportunity for a person requesting an advisory opinion under this section (or counsel for such person) to appear before the Commission to present testimony in support of the request, and the person (or counsel) accepts such opportunity, the Commission shall provide a reasonable opportunity for an interested party who submitted written comments under subsection (d) in response to the request (or counsel for such interested party) to appear before the Commission to present testimony in response to the request.”
Sec. 7105 Permanent extension of administrative penalty authority
Sec. 7106 Restrictions on ex parte communications
“(2) Members and employees of the Commission shall be subject to limitations on ex parte communications, as provided in the regulations promulgated by the Commission regarding such communications which are in effect on the date of the enactment of this paragraph.”
Sec. 7107 Clarifying authority of FEC attorneys to represent FEC in Supreme Court
Sec. 7108 Requiring forms to permit use of accent marks
Sec. 7109 Extension of the statutes of limitations for offenses under the Federal Election Campaign Act of 1971
“(10) No person shall be subject to a civil penalty under this subsection with respect to a violation of this Act unless a complaint is filed with the Commission with respect to the violation under paragraph (1), or the Commission responds to information with respect to the violation which is ascertained in the normal course of carrying out its supervisory responsibilities under paragraph (2), not later than 10 years after the date on which the violation occurred.”
Sec. 7110 Effective date; transition
VIII Citizen Empowerment
A Funding To Promote Democracy
1 Payments and Allocations to States
Sec. 8001 Democracy Advancement and Innovation Program
Sec. 8002 State plan
Sec. 8003 Prohibiting reduction in access to participation in elections
Sec. 8004 Amount of State allocation
Sec. 8005 Procedures for disbursements of payments and allocations
Sec. 8006 Office of Democracy Advancement and Innovation
“(XV) the Office of Democracy Advancement and Innovation; or”
2 State Election Assistance and Innovation Trust Fund
Sec. 8011 State Election Assistance and Innovation Trust Fund
Sec. 8012 Uses of Fund
3 General Provisions
Sec. 8021 Definitions
Sec. 8022 Rule of construction regarding calculation of deadlines
B Elections for House of Representatives
Sec. 8101 Short title
1 Optional Democracy Credit Program
Sec. 8102 Establishment of program
Sec. 8103 Credit program described
Sec. 8104 Reports
Sec. 8105 Election cycle defined
2 Optional Small Dollar Financing of Elections for House of Representatives
Sec. 8111 Benefits and eligibility requirements for candidates
“V Small Dollar Financing of Elections for House of Representatives
“A Benefits
“501. Benefits for participating candidates
“(a) In general—If a candidate for election to the office of Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under this title with respect to an election for such office, the candidate shall be entitled to payments as provided under this title.
“(b) Amount of payment—The amount of a payment made under this title shall be equal to 600 percent of the amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle, without regard to whether or not the candidate received any of the contributions before, during, or after the Small Dollar Democracy qualifying period applicable to the candidate under section 511(c).
“(c) Limit on aggregate amount of payments—The aggregate amount of payments made to a participating candidate with respect to an election cycle under this title may not exceed 50 percent of the average of the 20 greatest amounts of disbursements made by the authorized committees of any winning candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress during the most recent election cycle, rounded to the nearest $100,000.
“(d) No taxpayer funds permitted—No taxpayer funds shall be used to make payments under this title. For purposes of this subsection, the term “taxpayer funds” means revenues received by the Internal Revenue Service from tax liabilities.
“502. Procedures for making payments
“(a) In general—The Division Director shall make a payment under section 501 to a candidate who is certified as a participating candidate upon receipt from the candidate of a request for a payment which includes—
“(1) a statement of the number and amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle;
“(2) a statement of the amount of the payment the candidate anticipates receiving with respect to the request;
“(3) a statement of the total amount of payments the candidate has received under this title as of the date of the statement; and
“(4) such other information and assurances as the Division Director may require.
“(b) Restrictions on submission of requests—A candidate may not submit a request under subsection (a) unless each of the following applies:
“(1) The amount of the qualified small dollar contributions in the statement referred to in subsection (a)(1) is equal to or greater than $5,000, unless the request is submitted during the 30-day period which ends on the date of a general election.
“(2) The candidate did not receive a payment under this title during the 7-day period which ends on the date the candidate submits the request.
“(c) Time of payment—The Division Director shall, in coordination with the Secretary of the Treasury, take such steps as may be necessary to ensure that the Secretary is able to make payments under this section from the Treasury not later than 2 business days after the receipt of a request submitted under subsection (a).
“503. Use of funds
“(a) Use of funds for authorized campaign expenditures—A candidate shall use payments made under this title, including payments provided with respect to a previous election cycle which are withheld from remittance to the Commission in accordance with section 524(a)(2), only for making direct payments for the receipt of goods and services which constitute authorized expenditures (as determined in accordance with title III) in connection with the election cycle involved.
“(b) Prohibiting use of funds for legal expenses, fines, or penalties—Notwithstanding title III, a candidate may not use payments made under this title for the payment of expenses incurred in connection with any action, claim, or other matter before the Commission or before any court, hearing officer, arbitrator, or other dispute resolution entity, or for the payment of any fine or civil monetary penalty.
“504. Qualified small dollar contributions described
“(a) In general—In this title, the term qualified small dollar contribution means, with respect to a candidate and the authorized committees of a candidate, a contribution that meets the following requirements:
“(1) The contribution is in an amount that is—
“(A) not less than $1; and
“(B) not more than $200.
“(2)
“(A) The contribution is made directly by an individual to the candidate or an authorized committee of the candidate and is not—
“(i) forwarded from the individual making the contribution to the candidate or committee by another person; or
“(ii) received by the candidate or committee with the knowledge that the contribution was made at the request, suggestion, or recommendation of another person.
“(B) In this paragraph—
“(i) the term person does not include an individual (other than an individual described in section 304(i)(7) of the Federal Election Campaign Act of 1971), a political committee of a political party, or any political committee which is not a separate segregated fund described in section 316(b) of the Federal Election Campaign Act of 1971 and which does not make contributions or independent expenditures, does not engage in lobbying activity under the Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.), and is not established by, controlled by, or affiliated with a registered lobbyist under such Act, an agent of a registered lobbyist under such Act, or an organization which retains or employs a registered lobbyist under such Act; and
“(ii) a contribution is not “made at the request, suggestion, or recommendation of another person” solely on the grounds that the contribution is made in response to information provided to the individual making the contribution by any person, so long as the candidate or authorized committee does not know the identity of the person who provided the information to such individual.
“(3) The individual who makes the contribution does not make contributions to the candidate or the authorized committees of the candidate with respect to the election involved in an aggregate amount that exceeds the amount described in paragraph (1)(B), or any contribution to the candidate or the authorized committees of the candidate with respect to the election involved that otherwise is not a qualified small dollar contribution.
“(b) Treatment of democracy credits—Any payment received by a candidate and the authorized committees of a candidate which consists of a Democracy Credit under the Freedom to Vote Act shall be considered a qualified small dollar contribution for purposes of this title, so long as the individual making the payment meets the requirements of paragraphs (2) and (3) of subsection (a).
“(c) Restriction on subsequent contributions
“(1) Prohibiting donor from making subsequent nonqualified contributions during election cycle
“(A) In general—An individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election may not make any subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election cycle which is not a qualified small dollar contribution.
“(B) Exception for contributions to candidates who voluntarily withdraw from participation during qualifying period—Subparagraph (A) does not apply with respect to a contribution made to a candidate who, during the Small Dollar Democracy qualifying period described in section 511(c), submits a statement to the Commission under section 513(c) to voluntarily withdraw from participating in the program under this title.
“(2) Treatment of subsequent nonqualified contributions—If, notwithstanding the prohibition described in paragraph (1), an individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election makes a subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election which is prohibited under paragraph (1) because it is not a qualified small dollar contribution, the candidate may take one of the following actions:
“(A) Not later than 2 weeks after receiving the contribution, the candidate may return the subsequent contribution to the individual. In the case of a subsequent contribution which is not a qualified small dollar contribution because the contribution fails to meet the requirements of paragraph (3) of subsection (a) (relating to the aggregate amount of contributions made to the candidate or the authorized committees of the candidate by the individual making the contribution), the candidate may return an amount equal to the difference between the amount of the subsequent contribution and the amount described in paragraph (1)(B) of subsection (a).
“(B) The candidate may retain the subsequent contribution, so long as not later than 2 weeks after receiving the subsequent contribution, the candidate remits to the Commission an amount equal to any payments received by the candidate under this title which are attributable to the qualified small dollar contribution made by the individual involved. Such amount shall be used to supplement the allocation made to the Commission with respect to candidates from the State in which the candidate seeks office, as described in section 541(a).
“(3) No effect on ability to make multiple contributions—Nothing in this section may be construed to prohibit an individual from making multiple qualified small dollar contributions to any candidate or any number of candidates, so long as each contribution meets each of the requirements of paragraphs (1), (2), and (3) of subsection (a).
“(d) Notification requirements for candidates
“(1) Notification—Each authorized committee of a candidate who seeks to be a participating candidate under this title shall provide the following information in any materials for the solicitation of contributions, including any internet site through which individuals may make contributions to the committee:
“(A) A statement that if the candidate is certified as a participating candidate under this title, the candidate will receive matching payments in an amount which is based on the total amount of qualified small dollar contributions received.
“(B) A statement that a contribution which meets the requirements set forth in subsection (a) shall be treated as a qualified small dollar contribution under this title.
“(C) A statement that if a contribution is treated as qualified small dollar contribution under this title, the individual who makes the contribution may not make any contribution to the candidate or the authorized committees of the candidate during the election cycle which is not a qualified small dollar contribution.
“(2) Alternative methods of meeting requirements—An authorized committee may meet the requirements of paragraph (1)—
“(A) by including the information described in paragraph (1) in the receipt provided under section 512(b)(3) to a person making a qualified small dollar contribution; or
“(B) by modifying the information it provides to persons making contributions which is otherwise required under title III (including information it provides through the internet).
“B Eligibility and Certification
“511. Eligibility
“(a) In general—A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress is eligible to be certified as a participating candidate under this title with respect to an 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.
“(2) The candidate meets the qualifying requirements of section 512.
“(3) The candidate files with the Commission a statement certifying that the authorized committees of the candidate meet the requirements of section 504(d).
“(4) Not later than the last day of the Small Dollar Democracy 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 521;
“(B) if certified, will run only as a participating candidate for all elections for the office that such candidate is seeking during that election cycle; and
“(C) has either qualified or will take steps to qualify under State law to be on the ballot.
“(5) The candidate files with the Commission a certification that the candidate will not use any allocation from the Fund to directly or indirectly pay salaries, fees, consulting expenses, or any other compensation for services rendered to themselves, family members (including spouses as well as children, parents, siblings, or any of their spouses), or any entity or organization in which they have an ownership interest.
“(b) General election—Notwithstanding subsection (a), a candidate shall not be eligible to be certified as a participating candidate under this title 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 is otherwise qualified to be on the ballot under State law.
“(c) Small Dollar Democracy qualifying period Defined—The term Small Dollar Democracy qualifying period means, with respect to any candidate for an office, the 180-day period (during the election cycle for such office) which begins on the date on which the candidate files a statement of intent under section 511(a)(1), except that such period may not continue after the date that is 30 days before the date of the general election for the office.
“512. Qualifying requirements
“(a) Receipt of qualified small dollar contributions—A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress meets the requirement of this section if, during the Small Dollar Democracy qualifying period described in section 511(c), each of the following occurs:
“(1) Not fewer than 1,000 individuals make a qualified small dollar contribution to the candidate.
“(2) The candidate obtains a total dollar amount of qualified small dollar contributions which is equal to or greater than $50,000.
“(b) Requirements relating to receipt of qualified small dollar contribution—Each qualified small dollar contribution—
“(1) may be made by means of a personal check, money order, debit card, credit card, electronic payment account, or any other method deemed appropriate by the Division Director;
“(2) shall be accompanied by a signed statement (or, in the case of a contribution made online or through other electronic means, an electronic equivalent) containing the contributor’s name and address; and
“(3) shall be acknowledged by a receipt that is sent to the contributor with a copy (in paper or electronic form) kept by the candidate for the Commission.
“(c) Verification of contributions
“(1) Procedures—The Division Director shall establish procedures for the auditing and verification of the contributions received and expenditures made by participating candidates under this title, including procedures for random audits, to ensure that such contributions and expenditures meet the requirements of this title.
“(2) Authority of Commission to revise procedures—The Commission, by a vote of not fewer than four of its members, may revise the procedures established by the Division Director under this subsection.
“513. Certification
“(a) Deadline and Notification
“(1) In general—Not later than 5 business days after a candidate files an affidavit under section 511(a)(4), the Division Director shall—
“(A) determine whether or not the candidate meets the requirements for certification as a participating candidate;
“(B) if the Division Director determines that the candidate meets such requirements, certify the candidate as a participating candidate; and
“(C) notify the candidate of the Division Director’s determination.
“(2) Deemed certification for all elections in election cycle—If the Division Director certifies a candidate as a participating candidate with respect to the first election of the election cycle involved, the Division Director shall be deemed to have certified the candidate as a participating candidate with respect to all subsequent elections of the election cycle.
“(3) Authority of Commission to reverse determination by Division Director—During the 10-day period which begins on the date the Division Director makes a determination under this subsection, the Commission, by a vote of not fewer than four of its members, may review and reverse the determination. If the Commission reverses the determination, the Commission shall promptly notify the candidate involved.
“(b) Revocation of certification
“(1) In general—The Division Director shall 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 (other than a candidate certified as a participating candidate with respect to a primary election who fails to qualify to appear on the ballot for a subsequent election in that election cycle);
“(B) a candidate ceases to be a candidate for the office involved, as determined on the basis of an official announcement by an authorized committee of the candidate or on the basis of a reasonable determination by the Commission; or
“(C) a candidate otherwise fails to comply with the requirements of this title, including any regulatory requirements prescribed by the Commission.
“(2) Existence of criminal sanction—The Division Director shall revoke a certification under subsection (a) if a penalty is assessed against the candidate under section 309(d) with respect to the election.
“(3) Effect of revocation—If a candidate’s certification is revoked under this subsection—
“(A) the candidate may not receive payments under this title during the remainder of the election cycle involved; and
“(B) in the case of a candidate whose certification is revoked pursuant to subparagraph (A) or subparagraph (C) of paragraph (1)—
“(i) the candidate shall repay to the Commission an amount equal to the payments received under this title with respect to the election cycle involved plus interest (at a rate determined by the Commission on the basis of an appropriate annual percentage rate for the month involved) on any such amount received, which shall be used by the Commission to supplement the allocation made to the Commission with respect to the State in which the candidate seeks office, as described in section 541(a); and
“(ii) the candidate may not be certified as a participating candidate under this title with respect to the next election cycle.
“(4) Prohibiting participation in future elections for candidates with multiple revocations—If the Division Director revokes the certification of an individual as a participating candidate under this title pursuant to subparagraph (A) or subparagraph (C) of paragraph (1) a total of 3 times, the individual may not be certified as a participating candidate under this title with respect to any subsequent election.
“(5) Authority of Commission to reverse revocation by Division Director—During the 10-day period which begins on the date the Division Director makes a determination under this subsection, the Commission, by a vote of not fewer than four of its members, may review and reverse the determination. If the Commission reverses the determination, the Commission shall promptly notify the candidate involved.
“(c) Voluntary withdrawal from participating during qualifying period—At any time during the Small Dollar Democracy qualifying period described in section 511(c), a candidate may withdraw from participation in the program under this title by submitting to the Commission a statement of withdrawal (without regard to whether or not the Commission has certified the candidate as a participating candidate under this title as of the time the candidate submits such statement), so long as the candidate has not submitted a request for payment under section 502.
“(d) Participating Candidate defined—In this title, a “participating candidate” means a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress who is certified under this section as eligible to receive benefits under this title.
“C Requirements for Candidates Certified as Participating Candidates
“521. Contribution and expenditure requirements
“(a) Permitted sources of contributions and expenditures—Except as provided in subsection (c), a participating candidate with respect to an election shall, with respect to all elections occurring during the election cycle for the office involved, accept no contributions from any source and make no expenditures from any amounts, other than the following:
“(1) Qualified small dollar contributions.
“(2) Payments under this title.
“(3) Contributions from political committees established and maintained by a national or State political party, subject to the applicable limitations of section 315.
“(4) Subject to subsection (b), personal funds of the candidate or of any immediate family member of the candidate (other than funds received through qualified small dollar contributions).
“(5) Contributions from individuals who are otherwise permitted to make contributions under this Act, subject to the applicable limitations of section 315, except that the aggregate amount of contributions a participating candidate may accept from any individual with respect to any election during the election cycle may not exceed $1,000.
“(6) Contributions from multicandidate political committees, subject to the applicable limitations of section 315.
“(b) Special rules for personal funds
“(1) Limit on amount—A candidate who is certified as a participating candidate may use personal funds (including personal funds of any immediate family member of the candidate) so long as—
“(A) the aggregate amount used with respect to the election cycle (including any period of the cycle occurring prior to the candidate’s certification as a participating candidate) does not exceed $50,000; and
“(B) the funds are used only for making direct payments for the receipt of goods and services which constitute authorized expenditures in connection with the election cycle involved.
“(2) Immediate family member defined—In this subsection, the term immediate family member means, with respect to a 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).
“(c) Exceptions
“(1) Exception for contributions received prior to filing of statement of intent—A candidate who has accepted contributions that are not described in subsection (a) is not in violation of subsection (a), but only if all such contributions are—
“(A) returned to the contributor;
“(B) submitted to the Commission, to be used to supplement the allocation made to the Commission with respect to the State in which the candidate seeks office, as described in section 541(a); or
“(C) spent in accordance with paragraph (2).
“(2) Exception for expenditures made prior to filing of statement of intent—If a candidate has made expenditures prior to the date the candidate files a statement of intent under section 511(a)(1) that the candidate is prohibited from making under subsection (a) or subsection (b), the candidate is not in violation of such subsection if the aggregate amount of the prohibited expenditures is less than the amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions which the candidate is required to obtain) which is applicable to the candidate.
“(3) Exception for campaign surpluses from a previous election—Notwithstanding paragraph (1), unexpended contributions received by the candidate or an authorized committee of the candidate with respect to a previous election may be retained, but only if the candidate places the funds in escrow and refrains from raising additional funds for or spending funds from that account during the election cycle in which a candidate is a participating candidate.
“(4) Exception for contributions received before the effective date of this title—Contributions received and expenditures made by the candidate or an authorized committee of the candidate prior to the effective date of this title shall not constitute a violation of subsection (a) or (b). Unexpended contributions shall be treated the same as campaign surpluses under paragraph (3), and expenditures made shall count against the limit in paragraph (2).
“(d) Special Rule for Coordinated Party Expenditures—For purposes of this section, 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.
“(e) Prohibition on joint fundraising committees
“(1) Prohibition—An authorized committee of a candidate who is certified as a participating candidate under this title with respect to an election may not establish a joint fundraising committee with a political committee other than another authorized committee of the candidate.
“(2) Status of existing committees for prior elections—If a candidate established a joint fundraising committee described in paragraph (1) with respect to a prior election for which the candidate was not certified as a participating candidate under this title and the candidate does not terminate the committee, the candidate shall not be considered to be in violation of paragraph (1) so long as that joint fundraising committee does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title.
“(f) Prohibition on Leadership PACs
“(1) Prohibition—A candidate who is certified as a participating candidate under this title with respect to an election may not associate with, establish, finance, maintain, or control a leadership PAC.
“(2) Status of existing leadership PACs—If a candidate established, financed, maintained, or controlled a leadership PAC prior to being certified as a participating candidate under this title and the candidate does not terminate the leadership PAC, the candidate shall not be considered to be in violation of paragraph (1) so long as the leadership PAC does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title.
“(3) Leadership PAC defined—In this subsection, the term leadership PAC has the meaning given such term in section 304(i)(8)(B).
“522. Administration of campaign
“(a) Separate accounting for various permitted contributions—Each authorized committee of a candidate certified as a participating candidate under this title—
“(1) shall provide for separate accounting of each type of contribution described in section 521(a) which is received by the committee; and
“(2) shall provide for separate accounting for the payments received under this title.
“(b) Enhanced disclosure of information on donors
“(1) Mandatory identification of individuals making qualified small dollar contributions—Each authorized committee of a participating candidate under this title shall, in accordance with section 304(b)(3)(A), include in the reports the committee submits under section 304 the identification of each person who makes a qualified small dollar contribution to the committee.
“(2) Mandatory disclosure through Internet—Each authorized committee of a participating candidate under this title shall ensure that all information reported to the Commission under this Act with respect to contributions and expenditures of the committee is available to the public on the internet (whether through a site established for purposes of this subsection, a hyperlink on another public site of the committee, or a hyperlink on a report filed electronically with the Commission) in a searchable, sortable, and downloadable manner.
“523. Preventing unnecessary spending of matching funds
“(a) Mandatory spending of available private funds—An authorized committee of a candidate certified as a participating candidate under this title may not make any expenditure of any payments received under this title in any amount unless the committee has made an expenditure in an equivalent amount of funds received by the committee which are described in paragraphs (1), (3), (4), (5), and (6) of section 521(a).
“(b) Limitation—Subsection (a) applies to an authorized committee only to the extent that the funds referred to in such subsection are available to the committee at the time the committee makes an expenditure of a payment received under this title.
“524. Remitting unspent funds after election
“(a) Remittance required—Not later than the date that is 180 days after the last election for which a candidate certified as a participating candidate qualifies to be on the ballot during the election cycle involved, such participating candidate shall remit to the Commission an amount equal to the balance of the payments received under this title by the authorized committees of the candidate which remain unexpended as of such date, which shall be used to supplement the allocation made to the Commission with respect to the State in which the candidate seeks office, as described in section 541(a).
“(b) Permitting candidates participating in next election cycle To retain portion of unspent funds—Notwithstanding subsection (a), a participating candidate may withhold not more than $100,000 from the amount required to be remitted under subsection (a) if the candidate files a signed affidavit with the Commission that the candidate will seek certification as a participating candidate with respect to the next election cycle, except that the candidate may not use any portion of the amount withheld until the candidate is certified as a participating candidate with respect to that next election cycle. If the candidate fails to seek certification as a participating candidate prior to the last day of the Small Dollar Democracy qualifying period for the next election cycle (as described in section 511), or if the Commission notifies the candidate of the Commission’s determination does not meet the requirements for certification as a participating candidate with respect to such cycle, the candidate shall immediately remit to the Commission the amount withheld.
“D Enhanced Match Support
“531. Enhanced support for general election
“(a) Availability of Enhanced Support—In addition to the payments made under subtitle A, the Division Director shall make an additional payment to an eligible candidate under this subtitle.
“(b) Use of funds—A candidate shall use the additional payment under this subtitle only for authorized expenditures in connection with the election involved.
“532. Eligibility
“(a) In General—A candidate is eligible to receive an additional payment under this subtitle if the candidate meets each of the following requirements:
“(1) The candidate is on the ballot for the general election for the office the candidate seeks.
“(2) The candidate is certified as a participating candidate under this title with respect to the election.
“(3) During the enhanced support qualifying period, the candidate receives qualified small dollar contributions in a total amount of not less than $50,000.
“(4) During the enhanced support qualifying period, the candidate submits to the Division Director a request for the payment which includes—
“(A) a statement of the number and amount of qualified small dollar contributions received by the candidate during the enhanced support qualifying period;
“(B) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; and
“(C) such other information and assurances as the Division Director may require.
“(5) After submitting a request for the additional payment under paragraph (4), the candidate does not submit any other application for an additional payment under this subtitle.
“(b) Enhanced Support Qualifying Period Described—In this subtitle, the term enhanced support qualifying period means, with respect to a general election, the period which begins 60 days before the date of the election and ends 14 days before the date of the election.
“533. Amount
“(a) In General—Subject to subsection (b), the amount of the additional payment made to an eligible candidate under this subtitle shall be an amount equal to 50 percent of—
“(1) the amount of the payment made to the candidate under section 501(b) with respect to the qualified small dollar contributions which are received by the candidate during the enhanced support qualifying period (as included in the request submitted by the candidate under section 532(a)(4)); or
“(2) in the case of a candidate who is not eligible to receive a payment under section 501(b) with respect to such qualified small dollar contributions because the candidate has reached the limit on the aggregate amount of payments under subtitle A for the election cycle under section 501(c), the amount of the payment which would have been made to the candidate under section 501(b) with respect to such qualified small dollar contributions if the candidate had not reached such limit.
“(b) Limit—The amount of the additional payment determined under subsection (a) with respect to a candidate may not exceed $500,000.
“(c) No Effect on Aggregate Limit—The amount of the additional payment made to a candidate under this subtitle shall not be included in determining the aggregate amount of payments made to a participating candidate with respect to an election cycle under section 501(c).
“534. Waiver of authority to retain portion of unspent funds after election
“Notwithstanding section 524(a)(2), a candidate who receives an additional payment under this subtitle with respect to an election is not permitted to withhold any portion from the amount of unspent funds the candidate is required to remit to the Commission under section 524(a)(1).
“E Administrative Provisions
“541. Source of payments
“(a) Allocations from State Election Assistance and Innovation Trust Fund—The amounts used to make payments to participating candidates under this title who seek office in a State shall be derived from the allocations made to the Commission with respect to the State from the State Election Assistance and Innovation Trust Fund (hereafter referred to as the “Fund”) under section 8012 of the Freedom to Vote Act, as provided under section 8005(c) of such Act.
“(b) Use of allocations To make payments to participating candidates
“(1) Payments to participating candidates—The allocations made to the Commission as described in subsection (a) shall be available without further appropriation or fiscal year limitation to make payments to participating candidates as provided in this title.
“(2) Ongoing review to determine sufficiency of State allocations
“(A) Ongoing review—Not later than 90 days before the first day of each election cycle (beginning with the first election cycle that begins after the date of the enactment of this title), and on an ongoing basis until the end of the election cycle, the Division Director, in consultation with the Director of the Office of Democracy Advancement and Innovation, shall determine whether the amount of the allocation made to the Commission with respect to candidates who seek office in a State as described in subsection (a) will be sufficient to make payments to participating candidates in the State in the amounts provided in this title during such election cycle.
“(B) Opportunity for State to increase allocation—If, at any time the Division Director determines under subparagraph (A) that the amount anticipated to be available in the Fund for payments to participating candidates in a State with respect to the election cycle involved is not, or may not be, sufficient to satisfy the full entitlements of participating candidates in the State to payments under this title for such election cycle—
“(i) the Division Director shall notify the State and Congress; and
“(ii) the State may direct the Director of the Office of Democracy Advancement and Innovation to direct the Secretary of the Treasury to use the funds described in subparagraph (C), in such amounts as the State may direct, as an additional allocation to the Commission with respect to the State for purposes of subsection (a), in accordance with section 8012 of the Freedom to Vote Act.
“(C) Funds described—The funds described in this subparagraph are funds which were allocated to the State under the Democracy Advancement and Innovation Program under subtitle A of title VIII of the Freedom to Vote Act which, under the State plan under section 8002 of such Act, were to be used for democracy promotion activities described in paragraph (1), (2)(B), (2)(C), or (3) of section 8001(b) of such Act but which remain unobligated.
“(3) Elimination of limit of amount of qualified small donor contributions
“(A) Elimination of limit—If, after notifying the State under paragraph (2)(B)(i) and (if the State so elects) the State directs under paragraph (2)(B)(ii) an additional allocation to the Commission as provided under such subparagraph, the Division Director determines under paragraph (2)(A) that the amount anticipated to be available in the Fund (after such additional allocation) for payments to participating candidates in the State with respect to the election cycle involved is still not, or may still not be, sufficient to satisfy the full entitlements of participating candidates in the State to payments under this title for such election cycle, the limit on the amount of a qualified small donor contribution under section 504(a)(1)(B) shall not apply with respect to a participating candidate in the State under this title. Nothing in this subparagraph may be construed to waive the limit on the aggregate amount of contributions a participating candidate may accept from any individual under section 521(a)(5).
“(B) Determination of amount of payment to candidate—In determining under section 501(b) the amount of the payment made to a participating candidate for whom the limit on the amount of a qualified small donor contribution does not apply pursuant to subparagraph (A), there shall be excluded any qualified small donor contribution to the extent that the amount contributed by the individual involved exceeds the limit on the amount of such a contribution under section 504(a)(1)(B).
“(C) No use of amounts from other sources—In any case in which the Division Director determines that the allocation made to the Commission with respect to candidates in a State as described in subsection (a) is insufficient to make payments to participating candidates in the State under this title (taking into account any increase in the allocation under paragraph (2)), moneys shall not be made available from any other source for the purpose of making such payments.
“(c) Effective date—This section shall take effect on the date of the enactment of this title, without regard to whether or not regulations have been promulgated to carry out this section.
“542. Administration through dedicated division within Commission
“(a) Administration through dedicated division
“(1) Establishment—The Commission shall establish a separate division within the Commission which is dedicated to issuing regulations to carry out this title and to otherwise carrying out the operation of this title.
“(2) Appointment of director and staff
“(A) Appointment—Not later than June 1, 2024, the Commission shall appoint a director to head the division established under this section (to be known as the “Division Director”) and such other staff as the Commission considers appropriate to enable the division to carry out its duties.
“(B) Role of General Counsel—If, at any time after the date referred to in subparagraph (A), there is a vacancy in the position of the Division Director, the General Counsel of the Commission shall serve as the acting Division Director until the Commission appoints a Division Director under this paragraph.
“(3) Private right of action—Any person aggrieved by the failure of the Commission to meet the requirements of this subsection may file an action in an appropriate district court of the United States for such relief, including declaratory and injunctive relief, as may be appropriate.
“(b) Regulations—Not later than the deadline set forth in section 8114 of the Freedom to Vote Act, the Commission, acting through the dedicated division established under this section, shall prescribe regulations to carry out the purposes of this title, including regulations—
“(1) to establish procedures for verifying the amount of qualified small dollar contributions with respect to a candidate;
“(2) to establish procedures for effectively and efficiently monitoring and enforcing the limits on the raising of qualified small dollar contributions;
“(3) to establish procedures for effectively and efficiently monitoring and enforcing the limits on the use of personal funds by participating candidates;
“(4) to establish procedures for monitoring the use of payments made from the allocation made to the Commission as described in section 541(a) and matching contributions under this title through audits of not fewer than 1/10 (or, in the case of the first 3 election cycles during which the program under this title is in effect, not fewer than 1/3) of all participating candidates or other mechanisms;
“(5) to establish procedures for carrying out audits under section 541(b) and permitting States to make additional allocations as provided under section 541(b)(2)(B); and
“(6) to establish rules for preventing fraud in the operation of this title which supplement similar rules which apply under this Act.
“543. Violations and penalties
“(a) Civil penalty for violation of contribution and expenditure requirements—If a candidate who has been certified as a participating candidate accepts a contribution or makes an expenditure that is prohibited under section 521, the Commission may 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 used to supplement the allocation made to the Commission with respect to the State in which the candidate seeks office, as described in section 541(a).
“(b) Repayment for improper use of payments
“(1) In general—If the Commission determines that any payment made to a participating candidate 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 Commission an amount which shall be used to supplement the allocation made to the Commission with respect to the State in which the candidate seeks office, as described in section 541(a) and which shall be equal to—
“(A) the amount of payments 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.
“(c) Prohibiting certain candidates from qualifying as participating candidates
“(1) Candidates with multiple civil penalties—If the Commission assesses 3 or more civil penalties under subsection (a) against a candidate (with respect to either a single election or multiple elections), the Commission may refuse to certify the candidate as a participating candidate under this title with respect to any subsequent election, except that if each of the penalties were assessed as the result of a knowing and willful violation of any provision of this Act, the candidate is not eligible to be certified as a participating candidate under this title with respect to any subsequent election.
“(2) Candidates subject to criminal penalty—A candidate is not eligible to be certified as a participating candidate under this title with respect to an election if a penalty has been assessed against the candidate under section 309(d) with respect to any previous election.
“(d) Imposition of criminal penalties—For criminal penalties for the failure of a participating candidate to comply with the requirements of this title, see section 309(d).
“544. Indexing of amounts
“(a) Indexing—In any calendar year after 2028, section 315(c)(1)(B) shall apply to each amount described in subsection (b) in the same manner as such section applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such section, except that for purposes of applying such section to the amounts described in subsection (b), the “base period” shall be 2028.
“(b) Amounts described—The amounts described in this subsection are as follows:
“(1) The amount referred to in section 502(b)(1) (relating to the minimum amount of qualified small dollar contributions included in a request for payment).
“(2) The amounts referred to in section 504(a)(1) (relating to the amount of a qualified small dollar contribution).
“(3) The amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions).
“(4) The amount referred to in section 521(a)(5) (relating to the aggregate amount of contributions a participating candidate may accept from any individual with respect to an election).
“(5) The amount referred to in section 521(b)(1)(A) (relating to the amount of personal funds that may be used by a candidate who is certified as a participating candidate).
“(6) The amounts referred to in section 524(a)(2) (relating to the amount of unspent funds a candidate may retain for use in the next election cycle).
“(7) The amount referred to in section 532(a)(3) (relating to the total dollar amount of qualified small dollar contributions for a candidate seeking an additional payment under subtitle D).
“(8) The amount referred to in section 533(b) (relating to the limit on the amount of an additional payment made to a candidate under subtitle D).
“545. Election cycle defined
“In this title, the term election cycle means, with respect to an election for an office, the period beginning on the day after the date of the most recent general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election) and ending on the date of the next general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election).
“546. Division Director defined
“In this title, the term “Division Director” means the individual serving as the director of the division established under section 542.”
Sec. 8112 Contributions and expenditures by multicandidate and political party committees on behalf of participating candidates
“(10) In the case of a multicandidate political committee or any political committee of a political party, the committee may make a contribution to a candidate who is a participating candidate under title V with respect to an election only if the contribution is paid from a separate, segregated account of the committee which consists solely of contributions which meet the following requirements:
“(A) Each such contribution is in an amount which meets the requirements for the amount of a qualified small dollar contribution under section 504(a)(1) with respect to the election involved.
“(B) Each such contribution is made by an individual who is not otherwise prohibited from making a contribution under this Act.
“(C) The individual who makes the contribution does not make contributions to the committee during the year in an aggregate amount that exceeds the limit described in section 504(a)(1).”
“(6) The limits described in paragraph (3) do not apply in the case of expenditures in connection with the general election campaign of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress who is a participating candidate under title V with respect to the election, but only if—
“(A) the expenditures are paid from a separate, segregated account of the committee which is described in subsection (a)(10); and
“(B) the expenditures are the sole source of funding provided by the committee to the candidate.”
Sec. 8113 Prohibiting use of contributions by participating candidates for purposes other than campaign for election
“(d) Restrictions on Permitted Uses of Funds by Candidates Receiving Small Dollar Financing—Notwithstanding paragraph (2), (3), or (4) of subsection (a), if a candidate for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under title V with respect to the election, any contribution which the candidate is permitted to accept under such title may be used only for authorized expenditures in connection with the candidate’s campaign for such office, subject to section 503(b).”
Sec. 8114 Deadline for regulations; effective date
C Personal Use Services as Authorized Campaign Expenditures
Sec. 8201 Short title; findings; purpose
Sec. 8202 Treatment of payments for childcare and other personal use services as authorized campaign expenditure
“(e) Treatment of payments for childcare and other personal use services as authorized campaign expenditure
“(1) Authorized expenditures—For purposes of subsection (a), the payment by an authorized committee of a candidate for any of the personal use services described in paragraph (3) shall be treated as an authorized expenditure if the services are necessary to enable the participation of the candidate in campaign-connected activities.
“(2) Limitations
“(A) Limit on total amount of payments—The total amount of payments made by an authorized committee of a candidate for personal use services described in paragraph (3) may not exceed the limit which is applicable under any law, rule, or regulation on the amount of payments which may be made by the committee for the salary of the candidate (without regard to whether or not the committee makes payments to the candidate for that purpose).
“(B) Corresponding reduction in amount of salary paid to candidate—To the extent that an authorized committee of a candidate makes payments for the salary of the candidate, any limit on the amount of such payments which is applicable under any law, rule, or regulation shall be reduced by the amount of any payments made to or on behalf of the candidate for personal use services described in paragraph (3), other than personal use services described in subparagraph (D) of such paragraph.
“(C) Exclusion of candidates who are officeholders—Paragraph (1) does not apply with respect to an authorized committee of a candidate who is a holder of Federal office.
“(3) Personal use services described—The personal use services described in this paragraph are as follows:
“(A) Childcare services.
“(B) Elder care services.
“(C) Services similar to the services described in subparagraph (A) or subparagraph (B) which are provided on behalf of any dependent who is a qualifying relative under section 152 of the Internal Revenue Code of 1986.
“(D) Health insurance premiums.”
D Empowering Small Dollar Donations
Sec. 8301 Permitting political party committees to provide enhanced support for House candidates through use of separate small dollar accounts
“(11) An account described in this paragraph is a separate, segregated account of a national congressional campaign committee of a political party which—
“(A) supports only candidates for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress; and
“(B) consists exclusively of contributions made during a calendar year by individuals whose aggregate contributions to the committee during the year do not exceed $200.”