[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5277 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 5277
To reform the financing of Senate elections, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 15, 2022
Mr. Durbin (for himself, Mr. Markey, Mr. Murphy, Mr. Sanders, Ms.
Klobuchar, Ms. Smith, Mr. Schatz, and Ms. Warren) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To reform the financing of Senate elections, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fair Elections Now
Act of 2022''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SMALL DONOR INCENTIVE PROGRAMS
Sec. 101. Sense of the Senate regarding small donor incentive programs.
TITLE II--SMALL DOLLAR FINANCING OF SENATE ELECTION CAMPAIGNS
Sec. 201. Eligibility requirements and benefits of fair elections
financing of Senate election campaigns.
Sec. 202. Prohibition on joint fundraising committees.
Sec. 203. Exception to limitation on coordinated expenditures by
political party committees with
participating candidates.
TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
Sec. 301. Petition for certiorari.
Sec. 302. Electronic filing of FEC reports.
TITLE IV--REVENUE PROVISIONS
Sec. 401. Freedom From Influence Fund revenue.
TITLE V--MISCELLANEOUS PROVISIONS
Sec. 501. Severability.
Sec. 502. Effective date.
TITLE I--SMALL DONOR INCENTIVE PROGRAMS
SEC. 101. SENSE OF THE SENATE REGARDING SMALL DONOR INCENTIVE PROGRAMS.
It is the sense of the Senate that Congress should take steps to
allow more Americans to fully participate in our democracy through
authorizing publicly financed small donor incentive programs, including
small-dollar voucher programs that broaden and diversify the number of
Americans who are able to have their voice heard in the marketplace of
ideas.
TITLE II--SMALL DOLLAR FINANCING OF SENATE ELECTION CAMPAIGNS
SEC. 201. ELIGIBILITY REQUIREMENTS AND BENEFITS OF FAIR ELECTIONS
FINANCING OF SENATE ELECTION CAMPAIGNS.
The Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.)
is amended by adding at the end the following:
``TITLE V--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
``Subtitle A--General Provisions
``SEC. 501. DEFINITIONS.
``In this title:
``(1) Allocation from the fund.--The term `allocation from
the Fund' means an allocation of money from the Freedom From
Influence Fund to a participating candidate pursuant to section
522.
``(2) Commission.--The term `Commission' means the Federal
Election Commission.
``(3) Enhanced matching contribution.--The term `enhanced
matching contribution' means an enhanced matching payment
provided to a participating candidate for qualified small
dollar contributions, as provided under section 524.
``(4) Enhanced support qualifying period.--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.
``(5) Fair elections qualifying period.--The term `Fair
Elections qualifying period' means, with respect to any
candidate for Senator, the period--
``(A) beginning on the date on which the candidate
files a statement of intent under section 511(a)(1);
and
``(B) ending on the date that is 30 days before--
``(i) the date of the primary election; or
``(ii) in the case of a State that does not
hold a primary election, the date prescribed by
State law as the last day to qualify for a
position on the general election ballot.
``(6) Fair elections start date.--The term `Fair Elections
start date' means, with respect to any candidate, the date that
is 180 days before--
``(A) the date of the primary election; or
``(B) in the case of a State that does not hold a
primary election, the date prescribed by State law as
the last day to qualify for a position on the general
election ballot.
``(7) Fund.--The term `Fund' means the Freedom From
Influence Fund established by section 502.
``(8) Immediate family.--The term `immediate family' means,
with respect to any candidate--
``(A) the candidate's spouse;
``(B) a child, stepchild, parent, grandparent,
brother, half-brother, sister, or half-sister of the
candidate or the candidate's spouse; and
``(C) the spouse of any person described in
subparagraph (B).
``(9) Matching contribution.--The term `matching
contribution' means a matching payment provided to a
participating candidate for qualified small dollar
contributions, as provided under section 523.
``(10) Nonparticipating candidate.--The term
`nonparticipating candidate' means a candidate for Senator who
is not a participating candidate.
``(11) Participating candidate.--The term `participating
candidate' means a candidate for Senator who is certified under
section 514 as being eligible to receive an allocation from the
Fund.
``(12) Qualifying contribution.--The term `qualifying
contribution' means, with respect to a candidate, a
contribution that--
``(A) is in an amount that is--
``(i) not less than $5; and
``(ii) not more than $200;
``(B) is made by an individual who is not otherwise
prohibited from making a contribution under this Act;
``(C) is made during the Fair Elections qualifying
period; and
``(D) meets the requirements of section 512(b).
``(13) Qualified small dollar contribution.--The term
`qualified small dollar contribution' means, with respect to a
candidate, any contribution (or series of contributions)--
``(A) which is not a qualifying contribution (or
does not include a qualifying contribution);
``(B) which is made by an individual who is not
prohibited from making a contribution under this Act;
and
``(C) the aggregate amount of which does not exceed
$200 per election.
``(14) Qualifying multicandidate political committee
contribution.--
``(A) In general.--The term `qualifying
multicandidate political committee contribution' means
any contribution to a candidate that is made from a
qualified account of a multicandidate political
committee (within the meaning of section 315(a)(2)).
``(B) Qualified account.--For purposes of
subparagraph (A), the term `qualified account' means,
with respect to a multicandidate political committee, a
separate, segregated account of the committee that
consists solely of contributions which meet the
following requirements:
``(i) All contributions to such account are
made by individuals who are not prohibited from
making contributions under this Act.
``(ii) The aggregate amount of
contributions from each individual to such
account and all other accounts of the political
committee do not exceed the amount described in
paragraph (13)(C).
``SEC. 502. FREEDOM FROM INFLUENCE FUND.
``(a) Establishment.--There is established in the Treasury a fund
to be known as the `Freedom from Influence Fund'.
``(b) Amounts Held by Fund.--The Fund shall consist of the
following amounts:
``(1) Appropriated amounts.--
``(A) In general.--Amounts appropriated to the
Fund.
``(B) Sense of the senate regarding
appropriations.--It is the sense of the Senate that--
``(i) there should be imposed on any
payment made to any person (other than a State
or local government or a foreign nation) who
has a contract with the Government of the
United States in excess of $10,000,000 a tax
equal to 0.50 percent of amount paid pursuant
to each contract, except that the aggregate tax
on each contract for any taxable year shall not
exceed $500,000; and
``(ii) the revenue from such tax should be
appropriated to the Fund.
``(2) Voluntary contributions.--Voluntary contributions to
the Fund.
``(3) Other deposits.--Amounts deposited into the Fund
under--
``(A) section 513(c) (relating to exceptions to
contribution requirements);
``(B) section 521(c) (relating to remittance of
allocations from the Fund);
``(C) section 532 (relating to violations); and
``(D) any other section of this Act.
``(4) Investment returns.--Interest on, and the proceeds
from, the sale or redemption of, any obligations held by the
Fund under subsection (c).
``(c) Investment.--The Commission shall invest portions of the Fund
in obligations of the United States in the same manner as provided
under section 9602(b) of the Internal Revenue Code of 1986.
``(d) Use of Fund.--
``(1) In general.--The sums in the Fund shall be used to
provide benefits to participating candidates as provided in
subtitle C.
``(2) Insufficient amounts.--Under regulations established
by the Commission, rules similar to the rules of section
9006(c) of the Internal Revenue Code shall apply.
``Subtitle B--Eligibility and Certification
``SEC. 511. ELIGIBILITY.
``(a) In General.--A candidate for Senator is eligible to receive
an allocation from the Fund for any election if the candidate meets the
following requirements:
``(1) The candidate files with the Commission a statement
of intent to seek certification as a participating candidate
under this title during the period beginning on the Fair
Elections start date and ending on the last day of the Fair
Elections qualifying period.
``(2) The candidate meets the qualifying contribution
requirements of section 512.
``(3) The candidate files with the Commission a statement
certifying that the authorized committees of the candidate meet
the requirements of section 513(d)(2).
``(4) Not later than the last day of the Fair Elections
qualifying period, the candidate files with the Commission an
affidavit signed by the candidate and the treasurer of the
candidate's principal campaign committee declaring that the
candidate--
``(A) has complied and, if certified, will comply
with the contribution and expenditure requirements of
section 513;
``(B) if certified, will not run as a
nonparticipating candidate during such year in any
election for the office that such candidate is seeking;
and
``(C) has either qualified or will take steps to
qualify under State law to be on the ballot.
``(b) General Election.--Notwithstanding subsection (a), a
candidate shall not be eligible to receive an allocation from the Fund
for a general election or a general runoff election unless the
candidate's party nominated the candidate to be placed on the ballot
for the general election or the candidate otherwise qualified to be on
the ballot under State law.
``SEC. 512. QUALIFYING CONTRIBUTION REQUIREMENT.
``(a) In General.--A candidate for Senator meets the requirement of
this section if, during the Fair Elections qualifying period, the
candidate obtains--
``(1) a number of qualifying contributions equal to the sum
of--
``(A) 2,000; plus
``(B) 500 for each congressional district in the
State with respect to which the candidate is seeking
election; and
``(2) a total dollar amount of qualifying contributions
equal to 10 percent of the amount of the allocation such
candidate would be entitled to receive for the primary election
under section 522(c)(1) (determined without regard to paragraph
(5) thereof) if such candidate were a participating candidate.
``(b) Requirements Relating to Receipt of Qualifying
Contribution.--Each qualifying contribution--
``(1) may be made by means of a personal check, money
order, debit card, credit card, or electronic payment account;
``(2) shall be accompanied by a signed statement containing
the contributor's name and the contributor's address in the
State in which the contributor is registered to vote; and
``(3) shall be acknowledged by a receipt that is sent to
the contributor with a copy kept by the candidate for the
Commission and a copy kept by the candidate for the election
authorities in the State with respect to which the candidate is
seeking election.
``(c) Verification of Qualifying Contributions.--The Commission
shall establish procedures for the auditing and verification of
qualifying contributions to ensure that such contributions meet the
requirements of this section.
``SEC. 513. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.
``(a) General Rule.--A candidate for Senator meets the requirements
of this section if, during the election cycle of the candidate, the
candidate--
``(1) except as provided in subsection (b), accepts no
contributions other than--
``(A) qualifying contributions;
``(B) qualified small dollar contributions;
``(C) qualifying multicandidate political committee
contributions;
``(D) allocations from the Fund under section 522;
``(E) matching contributions under section 523;
``(F) enhanced matching contributions under section
524;
``(G) vouchers provided to the candidate under
section 525;
``(H) subject to subsection (c), personal funds of
the candidate or of any immediate family member of the
candidate (other than funds received through qualified
small dollar contributions); and
``(I) subject to subsection (d), 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; and
``(2) makes no expenditures from any amounts other than
from--
``(A) qualifying contributions;
``(B) qualified small dollar contributions;
``(C) qualifying multicandidate political committee
contributions;
``(D) allocations from the Fund under section 522;
``(E) matching contributions under section 523;
``(F) enhanced matching contributions under section
524;
``(G) vouchers provided to the candidate under
section 525;
``(H) subject to subsection (c), personal funds of
the candidate or of any immediate family member of the
candidate (other than funds received through qualified
small dollar contributions); and
``(I) subject to subsection (d), 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.
For purposes of this subsection, a payment made by a political party in
coordination with a participating candidate shall not be treated as a
contribution to or as an expenditure made by the participating
candidate.
``(b) Contributions for Leadership PACs, etc.--A political
committee of a participating candidate which is not an authorized
committee of such candidate may accept contributions other than
contributions described in subsection (a)(1) from any person if--
``(1) the aggregate contributions from such person for any
calendar year do not exceed $200; and
``(2) no portion of such contributions is disbursed in
connection with the campaign of the participating candidate.
``(c) Special Rules for Personal Funds.--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--
``(1) 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
``(2) 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.
``(d) Requirements Relating to Subsequent Contributions and
Notification Requirements.--
``(1) Restriction on subsequent contributions.--
``(A) Prohibiting donor from making subsequent
nonqualified contributions during election cycle.--An
individual who makes a qualified small dollar
contribution to a candidate with respect to an election
may not make any subsequent contribution to such
candidate with respect to the election cycle which is
not a qualified small dollar contribution.
``(B) Treatment of subsequent nonqualified
contributions.--If, notwithstanding the prohibition
described in subparagraph (A), an individual who makes
a qualified small dollar contribution to a candidate
with respect to an election makes a subsequent
contribution to such candidate with respect to the
election which is prohibited under subparagraph (A)
because it is not a qualified small dollar
contribution, the candidate may take one of the
following actions:
``(i) 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
(13)(C) of section 501 (relating to the
aggregate amount of qualified small dollar
contributions that may be made by an individual
to a candidate), the candidate may return an
amount equal to the difference between the
amount of the subsequent contribution and the
amount described in such paragraph.
``(ii) 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 for deposit in the Freedom from
Influence Fund established by section 502 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.
``(C) No effect on ability to make multiple
contributions.--Nothing in this subsection 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 the definition of a qualified small
dollar contribution under section 501(13).
``(2) Notification requirements for candidates.--
``(A) 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:
``(i) 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.
``(ii) A statement that a contribution
which meets the definition of a qualified small
dollar contribution under section 501(13) shall
be treated as a qualified small dollar
contribution under this title.
``(iii) 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.
``(B) Alternative methods of meeting
requirements.--An authorized committee may meet the
requirements of subparagraph (A)--
``(i) 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
``(ii) by modifying the information it
provides to persons making contributions which
is otherwise required under title III
(including information it provides through the
internet).
``(e) Exception.--Notwithstanding subsection (a), a candidate shall
not be treated as having failed to meet the requirements of this
section if any contributions that are not qualified small dollar
contributions, qualifying contributions, qualifying multicandidate
political committee contributions, or contributions that meet the
requirements of subsection (b) and that are accepted before the date
the candidate files a statement of intent under section 511(a)(1) are--
``(1) returned to the contributor; or
``(2) submitted to the Commission for deposit in the Fund.
``SEC. 514. CERTIFICATION.
``(a) In General.--Not later than 5 days after a candidate for
Senator files an affidavit under section 511(a)(4), the Commission
shall--
``(1) certify whether or not the candidate is a
participating candidate; and
``(2) notify the candidate of the Commission's
determination.
``(b) Revocation of Certification.--
``(1) In general.--The Commission may revoke a
certification under subsection (a) if--
``(A) a candidate fails to qualify to appear on the
ballot at any time after the date of certification; or
``(B) a candidate otherwise fails to comply with
the requirements of this title, including any
regulatory requirements prescribed by the Commission.
``(2) Repayment of benefits.--If certification is revoked
under paragraph (1), the candidate shall repay to the Fund an
amount equal to the value of benefits received under this title
plus interest (at a rate determined by the Commission) on any
such amount received.
``Subtitle C--Benefits
``SEC. 521. BENEFITS FOR PARTICIPATING CANDIDATES.
``(a) In General.--For each election with respect to which a
candidate is certified as a participating candidate under section 514,
such candidate shall be entitled to--
``(1) an allocation from the Fund to make or obligate to
make expenditures with respect to such election, as provided in
section 522;
``(2) matching contributions, as provided in section 523;
``(3) enhanced matching contributions, as provided in
section 524; and
``(4) for the general election, vouchers for broadcasts of
political advertisements, as provided in section 525.
``(b) Restriction on Uses of Allocations From the Fund.--
Allocations from the Fund received by a participating candidate under
section 522, matching contributions under section 523, and enhanced
matching contributions under section 524 may only be used for campaign-
related costs.
``(c) Remitting Allocations From the Fund.--
``(1) In general.--Not later than the date that is 180 days
after an election in which the participating candidate appeared
on the ballot, such participating candidate shall remit to the
Commission for deposit in the Fund an amount equal to the
lesser of--
``(A) the amount of money in the candidate's
campaign account; or
``(B) the sum of the allocations from the Fund
received by the candidate under section 522, the
matching contributions received by the candidate under
section 523, and the enhanced matching contributions
under section 524.
``(2) Exceptions.--
``(A) Subsequent election.--In the case of a
candidate who qualifies to be on the ballot for a
primary runoff election, a general election, or a
general runoff election, the amounts described in
paragraph (1) may be retained by the candidate and used
in such subsequent election.
``(B) Candidate seeking certification for next
election cycle.--Notwithstanding paragraph (1), a
participating candidate may withhold not more than
$100,000 from the amount required to be remitted under
paragraph (1) 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
qualifying period for the next election cycle (as
described in section 511), or if the Commission
notifies the candidate of the Commission's
determination that the candidate 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.
``SEC. 522. ALLOCATIONS FROM THE FUND.
``(a) In General.--The Commission shall make allocations from the
Fund under section 521(a)(1) to a participating candidate--
``(1) in the case of amounts provided under subsection
(d)(1), after the date on which such candidate is certified as
a participating candidate under section 514;
``(2) in the case of a general election after--
``(A) the date of the certification of the results
of the primary election or the primary runoff election;
or
``(B) in any case in which there is no primary
election, the date the candidate qualifies to be placed
on the ballot; and
``(3) in the case of a primary runoff election or a general
runoff election, after the certification of the results of the
primary election or the general election, as the case may be.
``(b) Method of Payment.--The Commission shall distribute funds
available to participating candidates under this section through the
use of an electronic funds exchange or a debit card.
``(c) Timing of Payment.--The Commission 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 date of
the applicable certification as described in subsection (a).
``(d) Amounts.--
``(1) Primary election allocation; initial allocation.--
Except as provided in paragraph (5), the Commission shall make
an allocation from the Fund for a primary election to a
participating candidate in an amount equal to 67 percent of the
base amount with respect to such participating candidate.
``(2) Primary runoff election allocation.--The Commission
shall make an allocation from the Fund for a primary runoff
election to a participating candidate in an amount equal to 25
percent of the amount the participating candidate was eligible
to receive under this section for the primary election.
``(3) General election allocation.--Except as provided in
paragraph (5), the Commission shall make an allocation from the
Fund for a general election to a participating candidate in an
amount equal to the base amount with respect to such candidate.
``(4) General runoff election allocation.--The Commission
shall make an allocation from the Fund for a general runoff
election to a participating candidate in an amount equal to 25
percent of the base amount with respect to such candidate.
``(5) Uncontested elections.--
``(A) In general.--In the case of a primary or
general election that is an uncontested election, the
Commission shall make an allocation from the Fund to a
participating candidate for such election in an amount
equal to 25 percent of the allocation which such
candidate would be entitled to under this section for
such election if this paragraph did not apply.
``(B) Uncontested election defined.--For purposes
of this subparagraph, an election is uncontested if not
more than 1 candidate has campaign funds (including
payments from the Fund) in an amount equal to or
greater than 10 percent of the allocation a
participating candidate would be entitled to receive
under this section for such election if this paragraph
did not apply.
``(e) Base Amount.--
``(1) In general.--Except as otherwise provided in this
subsection, the base amount for any candidate is an amount
equal to the sum of--
``(A) $750,000; plus
``(B) $150,000 for each congressional district in
the State with respect to which the candidate is
seeking election.
``(2) Indexing.--In each even-numbered year after 2027--
``(A) each dollar amount under paragraph (1) shall
be increased by the percent difference between the
price index (as defined in section 315(c)(2)(A)) for
the 12 months preceding the beginning of such calendar
year and the price index for calendar year 2022;
``(B) each dollar amount so increased shall remain
in effect for the 2-year period beginning on the first
day following the date of the last general election in
the year preceding the year in which the amount is
increased and ending on the date of the next general
election; and
``(C) if any amount after adjustment under
subparagraph (A) is not a multiple of $100, such amount
shall be rounded to the nearest multiple of $100.
``SEC. 523. MATCHING PAYMENTS FOR QUALIFIED SMALL DOLLAR CONTRIBUTIONS.
``(a) In General.--The Commission shall pay to each participating
candidate an amount equal to 600 percent of the amount of qualified
small dollar contributions received by the candidate from individuals
after the date on which such candidate is certified under section 514.
``(b) Limitation.--The aggregate payments under subsection (a) with
respect to any candidate shall not exceed 400 percent of the allocation
such candidate is entitled to receive for such election under section
522 (determined without regard to subsection (d)(5) thereof).
``(c) Time of Payment.--The Commission shall make payments under
this section not later than 2 business days after the receipt of a
report made under subsection (d).
``(d) Reports.--
``(1) In general.--Each participating candidate shall file
reports of receipts of qualified small dollar contributions at
such times and in such manner as the Commission may by
regulations prescribe.
``(2) Contents of reports.--Each report under this
subsection shall disclose--
``(A) the amount of each qualified small dollar
contribution received by the candidate; and
``(B) the name, address, and occupation of each
individual who made a qualified small dollar
contribution to the candidate.
``(3) Frequency of reports.--Reports under this subsection
shall be made no more frequently than--
``(A) once every month until the date that is 90
days before the date of the election; and
``(B) once every week after the period described in
subparagraph (A) and until the date of the election.
``(4) Limitation on regulations.--The Commission may not
prescribe any regulations with respect to reporting under this
subsection with respect to any election after the date that is
180 days before the date of such election.
``(e) Appeals.--The Commission shall provide a written explanation
with respect to any denial of any payment under this section and shall
provide the opportunity for review and reconsideration within 5
business days of such denial.
``SEC. 524. ENHANCED MATCHING SUPPORT.
``(a) In General.--In addition to the payments made under section
523, the Commission shall make an additional payment to an eligible
candidate under this section.
``(b) Eligibility.--A candidate is eligible to receive an
additional payment under this section 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 the sum of $15,000 for each
congressional district in the State with respect to which the
candidate is seeking election.
``(4) During the enhanced support qualifying period, the
candidate submits to the Commission 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
Commission 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 title.
``(c) Amount.--
``(1) In general.--Subject to paragraph (2), the amount of
the additional payment made to an eligible candidate under this
subtitle shall be an amount equal to 50 percent of--
``(A) the amount of the payment made to the
candidate under section 523 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 (b)(4)(A)); or
``(B) in the case of a candidate who is not
eligible to receive a payment under section 523 with
respect to such qualified small dollar contributions
because the candidate has reached the limit on the
aggregate amount of payments under section 523, the
amount of the payment which would have been made to the
candidate under section 523 with respect to such
qualified small dollar contributions if the candidate
had not reached such limit.
``(2) Limit.--The amount of the additional payment
determined under paragraph (1) with respect to a candidate may
not exceed the sum of $150,000 for each congressional district
in the State with respect to which the candidate is seeking
election.
``(3) No effect on aggregate limit.--The amount of the
additional payment made to a candidate under this section shall
not be included in determining the aggregate amount of payments
made to a participating candidate with respect to an election
cycle under section 523.
``SEC. 525. POLITICAL ADVERTISING VOUCHERS.
``(a) In General.--The Commission shall establish and administer a
voucher program for the purchase of airtime on broadcasting stations
for political advertisements in accordance with the provisions of this
section.
``(b) Candidates.--The Commission shall only disburse vouchers
under the program established under subsection (a) to participants
certified pursuant to section 514 who have agreed in writing to keep
and furnish to the Commission such records, books, and other
information as it may require.
``(c) Amounts.--The Commission shall disburse vouchers to each
candidate certified under subsection (b) in an aggregate amount equal
to $100,000 multiplied by the number of congressional districts in the
State with respect to which such candidate is running for office.
``(d) Use.--
``(1) Exclusive use.--Vouchers disbursed by the Commission
under this section may be used only for the purchase of
broadcast airtime for political advertisements relating to a
general election for the office of Senate by the participating
candidate to which the vouchers were disbursed, except that--
``(A) a candidate may exchange vouchers with a
political party under paragraph (2); and
``(B) a political party may use vouchers only to
purchase broadcast airtime for political advertisements
for generic party advertising (as defined by the
Commission in regulations), to support candidates for
State or local office in a general election, or to
support participating candidates of the party in a
general election for Federal office, but only if it
discloses the value of the voucher used as an
expenditure under section 315(d).
``(2) Exchange with political party committee.--
``(A) In general.--A participating candidate who
receives a voucher under this section may transfer the
right to use all or a portion of the value of the
voucher to a committee of the political party of which
the individual is a candidate (or, in the case of a
participating candidate who is not a member of any
political party, to a committee of the political party
of that candidate's choice) in exchange for money in an
amount equal to the cash value of the voucher or
portion exchanged.
``(B) Continuation of candidate obligations.--The
transfer of a voucher, in whole or in part, to a
political party committee under this paragraph does not
release the candidate from any obligation under the
agreement made under subsection (b) or otherwise modify
that agreement or its application to that candidate.
``(C) Party committee obligations.--Any political
party committee to which a voucher or portion thereof
is transferred under subparagraph (A)--
``(i) shall account fully, in accordance
with such requirements as the Commission may
establish, for the receipt of the voucher; and
``(ii) may not use the transferred voucher
or portion thereof for any purpose other than a
purpose described in paragraph (1)(B).
``(D) Voucher as a contribution under feca.--If a
candidate transfers a voucher or any portion thereof to
a political party committee under subparagraph (A)--
``(i) the value of the voucher or portion
thereof transferred shall be treated as a
contribution from the candidate to the
committee, and from the committee to the
candidate, for purposes of sections 302 and
304;
``(ii) the committee may, in exchange,
provide to the candidate only funds subject to
the prohibitions, limitations, and reporting
requirements of title III of this Act; and
``(iii) the amount, if identified as a
`voucher exchange', shall not be considered a
contribution for the purposes of sections 315
and 513.
``(e) Value; Acceptance; Redemption.--
``(1) Voucher.--Each voucher disbursed by the Commission
under this section shall have a value in dollars, redeemable
upon presentation to the Commission, together with such
documentation and other information as the Commission may
require, for the purchase of broadcast airtime for political
advertisements in accordance with this section.
``(2) Acceptance.--A broadcasting station shall accept
vouchers in payment for the purchase of broadcast airtime for
political advertisements in accordance with this section.
``(3) Redemption.--The Commission shall redeem vouchers
accepted by broadcasting stations under paragraph (2) upon
presentation, subject to such documentation, verification,
accounting, and application requirements as the Commission may
impose to ensure the accuracy and integrity of the voucher
redemption system.
``(4) Expiration.--
``(A) Candidates.--A voucher may only be used to
pay for broadcast airtime for political advertisements
to be broadcast before midnight on the day before the
date of the Federal election in connection with which
it was issued and shall be null and void for any other
use or purpose.
``(B) Exception for political party committees.--A
voucher held by a political party committee may be used
to pay for broadcast airtime for political
advertisements to be broadcast before midnight on
December 31st of the odd-numbered year following the
year in which the voucher was issued by the Commission.
``(5) Voucher as expenditure under feca.--The use of a
voucher to purchase broadcast airtime constitutes an
expenditure as defined in section 301(9)(A).
``(f) Definitions.--In this section:
``(1) Broadcasting station.--The term `broadcasting
station' has the meaning given that term by section 315(f)(1)
of the Communications Act of 1934.
``(2) Political party.--The term `political party' means a
major party or a minor party as defined in section 9002 (3) or
(4) of the Internal Revenue Code of 1986 (26 U.S.C. 9002 (3) or
(4)).
``Subtitle D--Administrative Provisions
``SEC. 531. DUTIES OF THE FEDERAL ELECTION COMMISSION.
``(a) Duties and Powers.--
``(1) Administration.--The Commission shall have the power
to administer the provisions of this title and shall prescribe
regulations to carry out the purposes of this title, including
regulations--
``(A) to establish procedures for--
``(i) verifying the amount of valid
qualifying contributions with respect to a
candidate;
``(ii) effectively and efficiently
monitoring and enforcing the limits on the
raising of qualified small dollar
contributions;
``(iii) monitoring the raising of
qualifying multicandidate political committee
contributions through effectively and
efficiently monitoring and enforcing the limits
on individual contributions to qualified
accounts of multicandidate political
committees;
``(iv) effectively and efficiently
monitoring and enforcing the limits on the use
of personal funds by participating candidates;
``(v) monitoring the use of allocations
from the Fund and matching contributions under
this title through audits or other mechanisms;
and
``(vi) the administration of the voucher
program under section 525; and
``(B) regarding the conduct of debates in a manner
consistent with the best practices of States that
provide public financing for elections.
``(2) Review of fair elections financing.--
``(A) In general.--After each general election for
Federal office, the Commission shall conduct a
comprehensive review of the Fair Elections financing
program under this title, including--
``(i) the maximum dollar amount of
qualified small dollar contributions under
section 501(13);
``(ii) the maximum and minimum dollar
amounts for qualifying contributions under
section 501(12);
``(iii) the number and value of qualifying
contributions a candidate is required to obtain
under section 512 to qualify for allocations
from the Fund;
``(iv) the amount of allocations from the
Fund that candidates may receive under section
522;
``(v) the maximum amount of matching
contributions a candidate may receive under
section 523;
``(vi) the maximum amount of enhanced
matching contributions a candidate may receive
under section 524;
``(vii) the amount and usage of vouchers
under section 525;
``(viii) the overall satisfaction of
participating candidates and the American
public with the program; and
``(ix) such other matters relating to
financing of Senate campaigns as the Commission
determines are appropriate.
``(B) Criteria for review.--In conducting the
review under subparagraph (A), the Commission shall
consider the following:
``(i) Qualifying contributions and
qualified small dollar contributions.--The
Commission shall consider whether the number
and dollar amount of qualifying contributions
required and maximum dollar amount for such
qualifying contributions and qualified small
dollar contributions strikes a balance
regarding the importance of voter involvement,
the need to assure adequate incentives for
participating, and fiscal responsibility,
taking into consideration the number of primary
and general election participating candidates,
the electoral performance of those candidates,
program cost, and any other information the
Commission determines is appropriate.
``(ii) Review of program benefits.--The
Commission shall consider whether the totality
of the amount of funds allowed to be raised by
participating candidates (including through
qualifying contributions and small dollar
contributions), allocations from the Fund under
section 522, matching contributions under
section 523, enhanced matching contributions
under section 524, and vouchers under section
525 are sufficient for voters in each State to
learn about the candidates to cast an informed
vote, taking into account the historic amount
of spending by winning candidates, media costs,
primary election dates, and any other
information the Commission determines is
appropriate.
``(C) Recommendations for adjustment of amounts.--
Based on the review conducted under subparagraph (A),
the Commission shall make recommendations to Congress
for any adjustment of the following amounts:
``(i) The maximum dollar amount of
qualified small dollar contributions under
section 501(13)(C).
``(ii) The maximum and minimum dollar
amounts for qualifying contributions under
section 501(12)(A).
``(iii) The number and value of qualifying
contributions a candidate is required to obtain
under section 512(a)(1).
``(iv) The base amount for candidates under
section 522(d).
``(v) The maximum amount of matching
contributions a candidate may receive under
section 523(b).
``(vi) The maximum amount of enhanced
matching contributions a candidate may receive
under section 524(c).
``(vii) The dollar amount for vouchers
under section 525(c).
``(D) Report.--Not later than March 30 following
any general election for Federal office, the Commission
shall submit a report to Congress on the review
conducted under subparagraph (A) and any
recommendations developed under subparagraph (C). Such
report shall contain a detailed statement of the
findings, conclusions, and recommendations of the
Commission based on such review.
``(b) Reports.--Not later than March 30, 2026, and every 2 years
thereafter, the Commission shall submit to the Senate Committee on
Rules and Administration a report documenting, evaluating, and making
recommendations relating to the administrative implementation and
enforcement of the provisions of this title.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out the purposes of
this subtitle.
``SEC. 532. VIOLATIONS AND PENALTIES.
``(a) Civil Penalty for Violation of Contribution and Expenditure
Requirements.--If a candidate who has been certified as a participating
candidate under section 514 accepts a contribution or makes an
expenditure that is prohibited under section 513, the Commission shall
assess a civil penalty against the candidate in an amount that is not
more than 3 times the amount of the contribution or expenditure. Any
amounts collected under this subsection shall be deposited into the
Fund.
``(b) Repayment for Improper Use of Freedom From Influence Fund.--
``(1) In general.--If the Commission determines that any
benefit made available to a participating candidate under this
title was not used as provided for in this title or that a
participating candidate has violated any of the dates for
remission of funds contained in this title, the Commission
shall so notify the candidate and the candidate shall pay to
the Fund an amount equal to--
``(A) the amount of benefits so used or not
remitted, as appropriate; and
``(B) interest on any such amounts (at a rate
determined by the Commission).
``(2) Other action not precluded.--Any action by the
Commission in accordance with this subsection shall not
preclude enforcement proceedings by the Commission in
accordance with section 309(a), including a referral by the
Commission to the Attorney General in the case of an apparent
knowing and willful violation of this title.''.
SEC. 202. PROHIBITION ON JOINT FUNDRAISING COMMITTEES.
Section 302(e) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30102(e)) is amended by adding at the end the following new
paragraph:
``(6) No authorized committee of a participating candidate
(as defined in section 501) may establish a joint fundraising
committee with a political committee other than an authorized
committee of a candidate.''.
SEC. 203. EXCEPTION TO LIMITATION ON COORDINATED EXPENDITURES BY
POLITICAL PARTY COMMITTEES WITH PARTICIPATING CANDIDATES.
Section 315(d) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30116(d)) is amended--
(1) in paragraph (3)(A), by striking ``in the case of'' and
inserting ``except as provided in paragraph (6), in the case
of''; and
(2) by adding at the end the following new paragraph:
``(6)(A) The limitation under paragraph (3)(A) shall not
apply with respect to any expenditure from a qualified
political party-participating candidate coordinated expenditure
fund.
``(B) In this paragraph, the term `qualified political
party-participating candidate coordinated expenditure fund'
means a fund established by the national committee of a
political party, or a State committee of a political party,
including any subordinate committee of a State committee, for
purposes of making expenditures in connection with the general
election campaign of a candidate for election to the office of
Senator who is a participating candidate (as defined in section
501), that only accepts qualified coordinated expenditure
contributions.
``(C) In this paragraph, the term `qualified coordinated
expenditure contribution' means, with respect to the general
election campaign of a candidate for election to the office of
Senator who is a participating candidate (as defined in section
501), any contribution (or series of contributions)--
``(i) which is made by an individual who is not
prohibited from making a contribution under this Act;
and
``(ii) the aggregate amount of which does not
exceed $500 per election.''.
TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
SEC. 301. PETITION FOR CERTIORARI.
Section 307(a)(6) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30107(a)(6)) is amended by inserting ``(including a proceeding
before the Supreme Court on certiorari)'' after ``appeal''.
SEC. 302. ELECTRONIC FILING OF FEC REPORTS.
Section 304(a)(11) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30104(a)(11)) is amended--
(1) in subparagraph (A), by striking ``under this Act--''
and all that follows and inserting ``under this Act shall be
required to maintain and file such designation, statement, or
report in electronic form accessible by computers.'';
(2) in subparagraph (B), by striking ``48 hours'' and all
that follows through ``filed electronically)'' and inserting
``24 hours''; and
(3) by striking subparagraph (D).
TITLE IV--REVENUE PROVISIONS
SEC. 401. FREEDOM FROM INFLUENCE FUND REVENUE.
(a) In General.--The Internal Revenue Code of 1986 is amended by
inserting after chapter 36 the following new chapter:
``CHAPTER 37--TAX ON PAYMENTS PURSUANT TO CERTAIN GOVERNMENT CONTRACTS
``Sec. 4501. Imposition of tax.
``SEC. 4501. IMPOSITION OF TAX.
``(a) Tax Imposed.--There is hereby imposed on any payment made to
a qualified person pursuant to a contract with the Government of the
United States a tax equal to 0.50 percent of the amount paid.
``(b) Limitation.--The aggregate amount of tax imposed per contract
under subsection (a) for any calendar year shall not exceed $500,000.
``(c) Qualified Person.--For purposes of this section, the term
`qualified person' means any person which--
``(1) is not a State or local government, a foreign nation,
or an organization described in section 501(c)(3) which is
exempt from taxation under section 501(a), and
``(2) has a contract with the Government of the United
States with a value in excess of $10,000,000.
``(d) Payment of Tax.--The tax imposed by this section shall be
paid by the person receiving such payment.
``(e) Use of Revenue Generated by Tax.--It is the sense of the
Senate that amounts equivalent to the revenue generated by the tax
imposed under this chapter should be appropriated for the financing of
a Freedom From Influence Fund and used for the public financing of
Senate elections.''.
(b) Conforming Amendment.--The table of chapters of the Internal
Revenue Code of 1986 is amended by inserting after the item relating to
chapter 36 the following:
``Chapter 37--Tax on Payments Pursuant to Certain Government
Contracts''.
(c) Effective Date.--The amendments made by this section shall
apply to contracts entered into after the date of the enactment of this
Act.
TITLE V--MISCELLANEOUS PROVISIONS
SEC. 501. SEVERABILITY.
If any provision of this Act or amendment made by this Act, or the
application of a provision or amendment to any person or circumstance,
is held to be unconstitutional, the remainder of this Act and
amendments made by this Act, and the application of the provisions and
amendment to any person or circumstance, shall not be affected by the
holding.
SEC. 502. EFFECTIVE DATE.
(a) In General.--Except as may otherwise be provided in this Act
and in the amendments made by this Act, this Act and the amendments
made by this Act shall apply with respect to elections occurring during
2028 or any succeeding year, without regard to whether or not the
Federal Election Commission has promulgated the final regulations
necessary to carry out this Act and the amendments made by this Act by
the deadline set forth in subsection (b).
(b) Deadline for Regulations.--Not later than June 30, 2026, the
Federal Election Commission shall promulgate such regulations as may be
necessary to carry out this Act and the amendments made by this Act.
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