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H.R. 1 - For the People Act of 2019

JAN. 4, 2019

H.R. 1; For the People Act of 2019

DATED JAN. 4, 2019
DOCUMENT ATTRIBUTES
Citations: H.R. 1; For the People Act of 2019

116TH CONGRESS
1ST SESSION

H.R. 1

To expand Americans' access to the ballot box, reduce
the influence of big money in politics, and strengthen ethics rules
for public servants, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 3, 2019

Mr. SARBANES (for himself and Ms. PELOSI) introduced
the following bill; which was referred to the Committee on House
Administration, and in addition to the Committees on Intelligence
(Permanent Select), the Judiciary, Oversight and Reform,
Science, Space, and Technology, Education and Labor,
Ways and Means, Financial Services, Ethics, and
Homeland Security, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned

A BILL

To expand Americans' access to the ballot box, reduce the influence of big money in politics, and strengthen ethics rules for public servants, 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.

This Act may be cited as the "For the People Act of 2019".

* * *

PART 2 — REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS

SEC. 4111. REPORTING OF CAMPAIGN-RELATED DISBURSEMENTS.

(a) DISCLOSURE REQUIREMENTS FOR CORPORATIONS, LABOR ORGANIZATIONS, AND CERTAIN OTHER ENTITIES. —

(1) IN GENERAL. — Section 324 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30126) is amended to read as follows:

"SEC. 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 whether such communication is in support of or in opposition to a 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 segregated bank account consisting of funds that were paid directly to such account by persons other than the covered organization that controls the account, for each such payment to the account —

"(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,

but only if such payment was made by a person who made payments to the account in an aggregate amount of $10,000 or more 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 2020, 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 2020.

"(F)(i) If the covered organization makes campaign-related disbursements using funds other than funds in a segregated bank account described in subparagraph (E), 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,

but only if such payment was made by a person who made payments to the covered organization in an aggregate amount of $10,000 or more 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 2020, 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 2020.

"(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.

"(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 any account used to make campaign-related disbursements.

"(C) AMOUNTS RECEIVED FROM AFFILIATES. — The requirement to include in a statement submitted under paragraph (1) the information described in subparagraph (F) of paragraph (2) shall not apply to any amount which is described in subsection (f)(3).

"(D) 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) 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.

"(C) 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.

"(D) PAYMENT. — The term 'payment' includes any contribution, donation, transfer, payment of dues, or other payment.

"(b) COORDINATION WITH OTHER PROVISIONS. —

"(1) OTHER REPORTS FILED WITH THE COMMISSION. — Information included in a statement filed under this section may be excluded from statements and reports filed under section 304.

"(2) TREATMENT AS SEPARATE SEGREGATED FUND. — A segregated bank account referred to in subsection (a)(2)(E) may be treated as a separate segregated fund for purposes of section 527(f)(3) of the Internal Revenue Code of 1986.

"(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) Any public communication which refers to a clearly identified candidate for election for Federal office and which promotes or supports a candidate for that office, or attacks or opposes a candidate for that office, without regard to whether the communication expressly advocates a vote for or against a candidate for that office.

"(C) An electioneering communication, as defined in section 304(f)(3).

"(D) A covered transfer.

"(2) INTENT NOT REQUIRED. — A disbursement for an item described in subparagraph (A), (B), (C), or (D) of paragraph (1) shall be treated as a campaign-related disbursement regardless of the intent of the person making the disbursement.

"(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;

"(D) made campaign-related disbursements (other than a covered transfer) in an aggregate amount of $50,000 or more during the 2-year period ending on the date of the transfer or payment, or knew or had reason to know that the person receiving the transfer or payment made such disbursements in such an aggregate amount during that 2-year period; or

"(E) 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 any 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,

except that the transfer shall not be treated as a transfer between affiliates if one of the organizations is established for the purpose of making campaign-related disbursements.

"(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. — 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.".

(2) CONFORMING AMENDMENT. — Section 304(f)(6) of such Act (52 U.S.C. 30104) is amended by striking "Any requirement" and inserting "Except as provided in section 324(b), any requirement".

(b) COORDINATION WITH FINCEN. —

(1) IN GENERAL. — The Director of the Financial Crimes Enforcement Network of the Department of the Treasury shall provide the Federal Election Commission with such information as necessary to assist in administering and enforcing section 324 of the Federal Election Campaign Act of 1971, as added by this section.

(2) REPORT. — Not later than 6 months after the date of the enactment of this Act, the Chairman of the Federal Election Commission, in consultation with the Director of the Financial Crimes Enforcement Network of the Department of the Treasury, shall submit to Congress a report with recommendations for providing further legislative authority to assist in the administration and enforcement of such section 324.

SEC. 4112. APPLICATION OF FOREIGN MONEY BAN TO DISBURSEMENTS FOR CAMPAIGN-RELATED DISBURSEMENTS CONSISTING OF COVERED TRANSFERS.

Section 319(a)(1)(A) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121(a)(1)(A)), as amended by section 4102, is amended by striking the semicolon and inserting the following: ", and any disbursement 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. 4113. EFFECTIVE DATE.

The amendments made by this part shall apply with respect to disbursements made on or after January 1, 2020, and shall take effect without regard to whether or not the Federal Election Commission has promulgated regulations to carry out such amendments.

PART 3 — OTHER ADMINISTRATIVE REFORMS

SEC. 4121. 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. 4122. JUDICIAL REVIEW OF ACTIONS RELATED TO CAMPAIGN FINANCE LAWS.

(a) IN GENERAL. — Title IV of the Federal Election Campaign Act of 1971 (52 U.S.C. 30141 et seq.) is amended by inserting after section 406 the following new section:

"SEC. 407. JUDICIAL REVIEW.

"(a) IN GENERAL. — Notwithstanding section 373(f), if any action is brought for declaratory or injunctive relief to challenge the constitutionality of any provision 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 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 —

"(A) a copy of the complaint shall be delivered promptly to the Clerk of the House of Representatives and the Secretary of the Senate; and

"(B) it shall be the duty of the United States District Court for the District of Columbia, the Court of Appeals for the District of Columbia, and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of the action and appeal.

"(b) INTERVENTION BY MEMBERS OF CONGRESS. — In any action in which the constitutionality of any provision of this Act or chapter 95 or 96 of the Internal Revenue Code of 1986 is raised, 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.

"(c) 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 the constitutionality of any provision of this Act or chapter 95 or 96 of the Internal Revenue Code of 1986.".

(b) CONFORMING AMENDMENTS. —

(1) IN GENERAL. —

(A) Section 9011 of the Internal Revenue Code of 1986 is amended to read as follows:

"SEC. 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.".

(B) Section 9041 of the Internal Revenue Code of 1986 is amended to read as follows:

"SEC. 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.".

(C) Section 403 of the Bipartisan Campaign Finance Reform Act of 2002 (52 U.S.C. 30110 note) is repealed.

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to actions brought on or after January 1, 2019.

* * *

Subtitle E — Secret Money Transparency

SEC. 4401. REPEAL OF RESTRICTION OF USE OF FUNDS BY INTERNAL REVENUE SERVICE TO BRING TRANSPARENCY TO POLITICAL ACTIVITY OF CERTAIN NONPROFIT ORGANIZATIONS.

Notwithstanding section 101 of division C of Public Law 115–245, section 125 of Division E of the Consolidated Appropriations Act, 2018 shall have no force or effect during fiscal year 2019.

* * *

Subtitle C — Presidential Elections

SEC. 5200. SHORT TITLE.

This subtitle may be cited as the "Empower Act of 2019".

PART 1 — PRIMARY ELECTIONS

SEC. 5201. INCREASE IN AND MODIFICATIONS TO MATCHING PAYMENTS.

(a) INCREASE AND MODIFICATION. —

(1) IN GENERAL. — The first sentence of section 9034(a) of the Internal Revenue Code of 1986 is amended —

(A) by striking "an amount equal to the amount of each contribution" and inserting "an amount equal to 600 percent of the amount of each matchable contribution (disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person for the election exceeds $200)"; and

(B) by striking "authorized committees" and all that follows through "$250" and inserting "authorized committees".

(2) MATCHABLE CONTRIBUTIONS. — Section 9034 of such Code is amended —

(A) by striking the last sentence of subsection (a); and

(B) by adding at the end the following new subsection:

"(c) MATCHABLE CONTRIBUTION DEFINED. — For purposes of this section and section 9033(b)

"(1) MATCHABLE CONTRIBUTION. — The term 'matchable contribution' means, with respect to the nomination for election to the office of President of the United States, a contribution by an individual to a candidate or an authorized committee of a candidate with respect to which the candidate has certified in writing that —

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

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

"(C) such contribution was a direct contribution.

"(2) CONTRIBUTION. — For purposes of this subsection, the term 'contribution' means a gift of money made by a written instrument which identifies the individual making the contribution by full name and mailing address, but does not include a subscription, loan, advance, or deposit of money, or anything of value or anything described in subparagraph (B), (C), or (D) of section 9032(4).

"(3) DIRECT CONTRIBUTION. —

"(A) IN GENERAL. — For purposes of this subsection, the term 'direct contribution' means, with respect to a candidate, a contribution which 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) OTHER DEFINITIONS. — In subparagraph (A) —

"(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 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) CONFORMING AMENDMENTS. —

(A) Section 9032(4) of such Code is amended by striking "section 9034(a)" and inserting "section 9034".

(B) Section 9033(b)(3) of such Code is amended by striking "matching contributions" and inserting "matchable contributions".

(b) MODIFICATION OF PAYMENT LIMITATION. —

(1) IN GENERAL. — Section 9034(b) of such Code is amended —

(A) by striking "Every" and inserting the following:

"(1) IN GENERAL. — Every",

(2) by striking "shall not exceed" and all that follows and inserting "shall not exceed $250,000,000.", and

(3) by adding at the end the following new paragraph:

"(3) INFLATION ADJUSTMENT. —

"(A) IN GENERAL. — In the case of any applicable period beginning after 2025, the dollar amount in paragraph (1) shall be increased by an amount equal to —

"(i) such dollar amount, multiplied by

"(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year following the year which such applicable period begins, determined by substituting 'calendar year 2024' for 'calendar year 1992' in subparagraph (B) thereof.

"(B) APPLICABLE PERIOD. — For purposes of this paragraph, the term 'applicable period' means the 4-year period beginning with the first day following the date of the general election for the office of President and ending on the date of the next such general election.

"(C) ROUNDING. — If any amount as adjusted under subparagraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.".

SEC. 5202. ELIGIBILITY REQUIREMENTS FOR MATCHING PAYMENTS.

(a) AMOUNT OF AGGREGATE CONTRIBUTIONS PER STATE; DISREGARDING OF AMOUNTS CONTRIBUTED IN EXCESS OF $200. — Section 9033(b)(3) of the Internal Revenue Code of 1986 is amended —

(1) by striking "$5,000" and inserting "$25,000"; and

(2) by striking "20 States" and inserting the following: "20 States (disregarding any amount of contributions from any such resident to the extent that the total of the amounts contributed by such resident for the election exceeds $200)".

(b) CONTRIBUTION LIMIT. —

(1) IN GENERAL. — Paragraph (4) of section 9033(b) of such Code is amended to read as follows:

"(4) the candidate and the authorized committees of the candidate will not accept aggregate contributions from any person with respect to the nomination for election to the office of President of the United States in excess of $1,000 for the election.".

(2) CONFORMING AMENDMENTS. —

(A) Section 9033(b) of such Code is amended by adding at the end the following new flush sentence:

"For purposes of paragraph (4), the term 'contribution' has the meaning given such term in section 301(8) of the Federal Election Campaign Act of 1971.".

(B) Section 9032(4) of such Code, as amended by section 1001(a)(3)(A) is amended by inserting "or 9033(b)" after "9034".

(c) BAN ON ACCEPTANCE OF BUNDLED CONTRIBUTIONS. — Section 9033(b) of such Code, as amended by subsection (b), is amended —

(1) by striking "and" at the end of paragraph (3);

(2) by striking the period at the end of paragraph (4) and inserting ", and"; and

(3) by adding at the end the following new paragraph:

"(5) the candidate and the authorized committee of the candidate will not accept any contribution which is not a direct contribution (as defined in section 9034(c)(3)).".

(d) PARTICIPATION IN SYSTEM FOR PAYMENTS FOR GENERAL ELECTION. — Section 9033(b) of such Code, as amended by subsection (c), is amended —

(1) by striking "and" at the end of paragraph (4);

(2) by striking the period at the end of paragraph (5) and inserting ", and"; and

(3) by adding at the end the following new paragraph:

"(6) if the candidate is nominated by a political party for election to the office of President, the candidate will apply for and accept payments with respect to the general election for such office in accordance with chapter 95.".

SEC. 5203. REPEAL OF EXPENDITURE LIMITATIONS.

(a) IN GENERAL. — Subsection (a) of section 9035 of the Internal Revenue Code of 1986 is amended to read as follows:

"(a) PERSONAL EXPENDITURE LIMITATION. — No candidate shall knowingly make expenditures from his personal funds, or the personal funds of his immediate family, in connection with his campaign for nomination for election to the office of President in excess of, in the aggregate, $50,000.".

(b) CONFORMING AMENDMENT. — Paragraph (1) of section 9033(b) of the Internal Revenue Code of 1986 is amended to read as follows:

"(1) the candidate will comply with the personal expenditure limitation under section 9035,".

SEC. 5204. PERIOD OF AVAILABILITY OF MATCHING PAYMENTS.

Section 9032(6) of the Internal Revenue Code of 1986 is amended by striking "the beginning of the calendar year in which a general election for the office of President of the United States will be held" and inserting "the date that is 6 months prior to the date of the earliest State primary election".

SEC. 5205. EXAMINATION AND AUDITS OF MATCHABLE CONTRIBUTIONS.

Section 9038(a) of the Internal Revenue Code of 1986 is amended by inserting "and matchable contributions accepted by" after "qualified campaign expenses of".

SEC. 5206. MODIFICATION TO LIMITATION ON CONTRIBUTIONS FOR PRESIDENTIAL PRIMARY CANDIDATES.

Section 315(a)(6) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30116(a)(6)) is amended by striking "calendar year" and inserting "four-year election cycle".

PART 2 — GENERAL ELECTIONS

SEC. 5211. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR PUBLIC FINANCING.

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

"(a) IN GENERAL. — In order to be eligible to receive any payments under section 9006, the candidates of a political party in a Presidential election shall meet the following requirements:

"(1) PARTICIPATION IN PRIMARY PAYMENT SYSTEM. — The candidate for President received payments under chapter 96 for the campaign for nomination for election to be President.

"(2) AGREEMENTS WITH COMMISSION. — The candidates, in writing —

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

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

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

"(3) BAN ON BUNDLED CONTRIBUTIONS. — The candidates certify to the Commission, under penalty of perjury and within such time prior to the day of the Presidential election as the Commission shall prescribe by rules or regulations, that the candidates and the authorized committees of such candidates will not accept any contribution which is not a direct contribution (as defined in section 9034(c)(3)).".

SEC. 5212. REPEAL OF EXPENDITURE LIMITATIONS AND USE OF QUALIFIED CAMPAIGN CONTRIBUTIONS.

(a) USE OF QUALIFIED CAMPAIGN CONTRIBUTIONS WITHOUT EXPENDITURE LIMITS; APPLICATION OF SAME REQUIREMENTS FOR MAJOR, MINOR, AND NEW PARTIES. — Section 9003 of the Internal Revenue Code of 1986 is amended by striking subsections (b) and (c) and inserting the following:

"(b) USE OF QUALIFIED CAMPAIGN CONTRIBUTIONS TO DEFRAY EXPENSES. —

"(1) IN GENERAL. — In order to be eligible to receive any payments under section 9006, the candidates of a party in a Presidential election shall certify to the Commission, under penalty of perjury, that —

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

"(i) qualified campaign contributions, and

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

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

"(2) TIMING OF CERTIFICATION. — The candidate shall make the certification required under this subsection at the same time the candidate makes the certification required under subsection (a)(3).".

(b) DEFINITION OF QUALIFIED CAMPAIGN CONTRIBUTION. — Section 9002 of such Code is amended by adding at the end the following new paragraph:

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

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

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

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

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

(c) CONFORMING AMENDMENTS. —

(1) REPEAL OF EXPENDITURE LIMITS. —

(A) IN GENERAL. — Section 315 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30116) is amended by striking subsection (b).

(B) CONFORMING AMENDMENTS. — Section 315(c) of such Act (52 U.S.C. 30116(c)) is amended —

(i) in paragraph (1)(B)(i), by striking ", (b)"; and

(ii) in paragraph (2)(B)(i), by striking "subsections (b) and (d)" and inserting "subsection (d)".

(2) REPEAL OF REPAYMENT REQUIREMENT. —

(A) IN GENERAL. — Section 9007(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

(B) CONFORMING AMENDMENT. — Paragraph (2) of section 9007(b) of such Code, as redesignated by subparagraph (A), is amended —

(i) by striking "a major party" and inserting "a party";

(ii) by inserting "qualified contributions and" after "contributions (other than"; and

(iii) by striking "(other than qualified campaign expenses with respect to which payment is required under paragraph (2))".

(3) CRIMINAL PENALTIES. —

(A) REPEAL OF PENALTY FOR EXCESS EXPENSES. — Section 9012 of the Internal Revenue Code of 1986 is amended by striking subsection (a).

(B) PENALTY FOR ACCEPTANCE OF DISALLOWED CONTRIBUTIONS; APPLICATION OF SAME PENALTY FOR CANDIDATES OF MAJOR, MINOR, AND NEW PARTIES. — Subsection (b) of section 9012 of such Code is amended to read as follows:

"(b) CONTRIBUTIONS. —

"(1) ACCEPTANCE OF DISALLOWED CONTRIBUTIONS. — It shall be unlawful for an eligible candidate of a party in a Presidential election or any of his authorized committees knowingly and willfully to accept —

"(A) any contribution other than a qualified campaign contribution to defray qualified campaign expenses, except to the extent necessary to make up any deficiency in payments received out of the fund on account of the application of section 9006(c); or

"(B) any contribution to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11).

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

SEC. 5213. MATCHING PAYMENTS AND OTHER MODIFICATIONS TO PAYMENT AMOUNTS.

(a) IN GENERAL. —

(1) AMOUNT OF PAYMENTS; APPLICATION OF SAME AMOUNT FOR CANDIDATES OF MAJOR, MINOR, AND NEW PARTIES. — Subsection (a) of section 9004 of the Internal Revenue Code of 1986 is amended to read as follows:

"(a) IN GENERAL. — Subject to the provisions of this chapter, the eligible candidates of a party in a Presidential election shall be entitled to equal payment under section 9006 in an amount equal to 600 percent of the amount of each matchable contribution received by such candidate or by the candidate's authorized committees (disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person for the election exceeds $200), except that total amount to which a candidate is entitled under this paragraph shall not exceed $250,000,000.".

(2) REPEAL OF SEPARATE LIMITATIONS FOR CANDIDATES OF MINOR AND NEW PARTIES; INFLATION ADJUSTMENT. — Subsection (b) of section 9004 of such Code is amended to read as follows:

"(b) INFLATION ADJUSTMENT. —

"(1) IN GENERAL. — In the case of any applicable period beginning after 2025, the $250,000,000 dollar amount in subsection (a) shall be increased by an amount equal to —

"(A) such dollar amount; multiplied by

"(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year following the year which such applicable period begins, determined by substituting 'calendar year 2024' for 'calendar year 1992' in subparagraph (B) thereof.

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

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

(3) CONFORMING AMENDMENT. — Section 9005(a) of such Code is amended by adding at the end the following new sentence: "The Commission shall make such additional certifications as may be necessary to receive payments under section 9004.".

(b) MATCHABLE CONTRIBUTION. — Section 9002 of such Code, as amended by section 5212(b), is amended by adding at the end the following new paragraph:

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

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

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

"(C) such contribution was a direct contribution (as defined in section 9034(c)(3)).".

SEC. 5214. INCREASE IN LIMIT ON COORDINATED PARTY EXPENDITURES.

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

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

"(B) For purposes of this paragraph —

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

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

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

(b) CONFORMING AMENDMENTS RELATING TO TIMING OF COST-OF-LIVING ADJUSTMENT. —

(1) IN GENERAL. — Section 315(c)(1) of such Act (52 U.S.C. 30116(c)(1)) is amended —

(A) in subparagraph (B), by striking "(d)" and inserting "(d)(2)"; and

(B) by adding at the end the following new subparagraph:

"(D) In any calendar year after 2024 —

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

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

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

(2) BASE YEAR. — Section 315(c)(2)(B) of such Act (52 U.S.C. 30116(c)(2)(B)) is amended —

(A) in clause (i) —

(i) by striking "(d)" and inserting "(d)(3)"; and

(ii) by striking "and" at the end;

(B) in clause (ii), by striking the period at the end and inserting "; and"; and

(C) by adding at the end the following new clause:

"(iii) for purposes of subsection (d)(2), calendar year 2023.".

SEC. 5215. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE OF PAYMENTS.

(a) DATE FOR PAYMENTS. —

(1) IN GENERAL. — Section 9006(b) of the Internal Revenue Code of 1986 is amended to read as follows:

"(b) PAYMENTS FROM THE FUND. — If the Secretary of the Treasury receives a certification from the Commission under section 9005 for payment to the eligible candidates of a political party, the Secretary shall pay to such candidates out of the fund the amount certified by the Commission on the later of —

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

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

Amounts paid to any such candidates shall be under the control of such candidates.".

(2) CONFORMING AMENDMENT. — The first sentence of section 9006(c) of such Code is amended by striking "the time of a certification by the Commission under section 9005 for payment" and inserting "the time of making a payment under subsection (b)".

(b) TIME FOR CERTIFICATION. — Section 9005(a) of the Internal Revenue Code of 1986 is amended by striking "10 days" and inserting "24 hours".

SEC. 5216. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN FUND.

(a) DETERMINATION OF AMOUNTS IN FUND. — Section 9006(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: "In making a determination of whether there are insufficient moneys in the fund for purposes of the previous sentence, the Secretary shall take into account in determining the balance of the fund for a Presidential election year the Secretary's best estimate of the amount of moneys which will be deposited into the fund during the year, except that the amount of the estimate may not exceed the average of the annual amounts deposited in the fund during the previous 3 years.".

(b) SPECIAL RULE FOR FIRST CAMPAIGN CYCLE UNDER THIS ACT. —

(1) IN GENERAL. — Section 9006 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

"(d) SPECIAL AUTHORITY TO BORROW. —

"(1) IN GENERAL. — Notwithstanding subsection (c), there are authorized to be appropriated to the fund, as repayable advances, such sums as are necessary to carry out the purposes of the fund during the period ending on the first Presidential election occurring after the effective date of this subsection.

"(2) REPAYMENT OF ADVANCES. —

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

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

(2) EFFECTIVE DATE. — The amendment made by this subsection shall take effect January 1, 2022.

SEC. 5217. USE OF GENERAL ELECTION PAYMENTS FOR GENERAL ELECTION LEGAL AND ACCOUNTING COMPLIANCE.

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

PART 3 — EFFECTIVE DATE

SEC. 5221. EFFECTIVE DATE.

(a) IN GENERAL. — Except as otherwise provided, this subtitle and the amendments made by this subtitle shall apply with respect to the Presidential election held in 2024 and each succeeding Presidential election, without regard to whether or not the Federal Election Commission has promulgated the final regulations necessary to carry out this part and the amendments made by this part by the deadline set forth in subsection (b).

(b) DEADLINE FOR REGULATIONS. — Not later than June 30, 2022, the Federal Election Commission shall promulgate such regulations as may be necessary to carry out this part and the amendments made by this part.

* * *

TITLE X — PRESIDENTIAL AND VICE PRESIDENTIAL TAX TRANSPARENCY

Sec. 10001. Presidential and Vice Presidential tax transparency.

SECTION 10001. PRESIDENTIAL AND VICE PRESIDENTIAL TAX TRANSPARENCY.

(a) DEFINITIONS. — In this section —

(1) The term "covered candidate" means a candidate of a major party in a general election for the office of President or Vice President.

(2) The term "major party" has the meaning given the term in section 9002 of the Internal Revenue Code of 1986.

(3) The term "income tax return" means, with respect to an individual, any return (as such term is defined in section 6103(b)(1) of the Internal Revenue Code of 1986) of such individual other than —

(A) information returns issued to persons other than such individual, and

(B) declarations of estimated tax.

(4) The term "Secretary" means the Secretary of the Treasury or the delegate of the Secretary.

(b) DISCLOSURE. —

(1) IN GENERAL. —

(A) CANDIDATES FOR PRESIDENT AND VICE PRESIDENT. — Not later than the date that is 15 days after the date on which an individual becomes a covered candidate, the individual shall submit to the Federal Election Commission a copy of the individual's income tax returns for the 10 most recent taxable years for which a return has been filed with the Internal Revenue Service.

(B) PRESIDENT AND VICE PRESIDENT. — With respect to each taxable year for an individual who is the President or Vice President, not later than the due date for the return of tax for the taxable year, such individual shall submit to the Federal Election Commission a copy of the individual's income tax returns for the taxable year and for the 9 preceding taxable years.

(C) TRANSITION RULE FOR SITTING PRESIDENTS AND VICE PRESIDENTS. — Not later than the date that is 30 days after the date of enactment of this section, an individual who is the President or Vice President on such date of enactment shall submit to the Federal Election Commission a copy of the income tax returns for the 10 most recent taxable years for which a return has been filed with the Internal Revenue Service.

(2) FAILURE TO DISCLOSE. — If any requirement under paragraph (1) to submit an income tax return is not met, the chairman of the Federal Election Commission shall submit to the Secretary a written request that the Secretary provide the Federal Election Commission with the income tax return.

(3) PUBLICLY AVAILABLE. — The chairman of the Federal Election Commission shall make publicly available each income tax return submitted under paragraph (1) in the same manner as a return provided under section 6103(l)(23) of the Internal Revenue Code of 1986 (as added by this section).

(4) TREATMENT AS A REPORT UNDER THE FEDERAL ELECTION CAMPAIGN ACT OF 1971. — For purposes of the Federal Election Campaign Act of 1971, any income tax return submitted under paragraph (1) or provided under section 6103(l)(23) of the Internal Revenue Code of 1986 (as added by this section) shall, after redaction under paragraph (3) or subparagraph (B)(ii) of such section, be treated as a report filed under the Federal Election Campaign Act of 1971.

(c) DISCLOSURE OF RETURNS OF PRESIDENTS AND VICE PRESIDENTS AND CERTAIN CANDIDATES FOR PRESIDENT AND VICE PRESIDENT. —

(1) IN GENERAL. — Section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

"(23) DISCLOSURE OF RETURN INFORMATION OF PRESIDENTS AND VICE PRESIDENTS AND CERTAIN CANDIDATES FOR PRESIDENT AND VICE PRESIDENT. —

"(A) IN GENERAL. — Upon written request by the chairman of the Federal Election Commission under section 10001(b)(2) of the For the People Act of 2019, the Secretary shall provide copies of any return which is so requested to officers and employees of the Federal Election Commission whose official duties require access to such return under this paragraph.

"(B) DISCLOSURE TO THE PUBLIC. —

"(i) IN GENERAL. — The chairman of the Federal Election Commission shall make publicly available any return which is provided under subparagraph (A).

"(ii) REDACTION OF CERTAIN INFORMATION. — Before making publicly available under clause (i) any return, the chairman of the Federal Election Commission shall redact such information as the Federal Election Commission and the Secretary jointly determine is necessary for protecting against identity theft, such as social security numbers.".

(2) CONFORMING AMENDMENTS. — Section 6103(p)(4) of such Code is amended —

(A) in the matter preceding subparagraph (A) by striking "or (22)" and inserting "(22), or (23)", and

(B) in subparagraph (F)(ii) by striking "or (22)" and inserting "(22), or (23)".

(3) EFFECTIVE DATE. — The amendments made by this subsection shall apply to disclosures made on or after the date of enactment of this Act.

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