Sec. 205. State responsibility for implementation of Program
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Except as provided in section 206, each State shall administer the Democracy Dollars Program with respect to individuals who are residents of the State, in accordance with a State implementation plan approved by the Commission under subsection (b). Each State shall submit its plan for administering the Democracy Dollars Program to the Commission, who shall approve the plan if the Commission finds that the plan meets each of the following conditions: The plan includes such provisions and safeguards as are necessary to ensure the effective administration of the Program in the State in a nonpartisan and competent manner.
If the plan permits the use of private financial intermediaries to assist in the processing of requests made by eligible individuals to make payments to candidates and political committees under subtitle B of title I— to the greatest extent feasible, the State uses a competitive bidding process to select such intermediaries for participation in the implementation of the plan; and the plan requires these intermediaries to meet the requirements of section 114(b) (relating to ensuring the anonymity of such individuals) and to take actions to deter fraud and abuse.
The plan is overseen by a certified authority designated by the State. The plan meets such other requirements as the Commission may by regulation require. If the Commission approves a State plan under this subsection, the plan shall be in effect for a 4-year period, and the Commission may extend the plan for additional 4-year periods at the request of the State if the Commission finds that the plan continues to meet the conditions set forth in paragraph (1). A State whose implementation plan under this subtitle is approved and in effect with respect to a year may receive payments from the Commission to cover the costs of carrying out the plan during the year, in the form of advance payments in accordance with paragraph
(2)or reimbursement in accordance with paragraph (3), at the option of the State. A State is eligible to receive advance payments under this subsection with respect to a year if the State submits to the Commission, at such time and in such form as the Commission may require, an application containing— a statement of the reasonable and necessary costs the State expects to incur in carrying out its implementation plan under this subtitle during the year; and such other information and assurances as the Commission may require. A State is eligible to receive reimbursement under this subsection for the reasonable and necessary costs the State incurred in carrying out its implementation plan during a year if the State submits to the Commission, at such time and in such form as the Commission may require, an application containing— a statement of the reasonable and necessary costs the State incurred in carrying out its implementation plan during the year; and such other information and assurances as the Commission may require. There are authorized to be appropriated such sums as are necessary for payments under this subsection. If the Commission determines that the implementation plan of a State whose implementation plan under this subtitle is approved is no longer in compliance with the applicable requirements for such a plan, or if the Commission determines that the State is administering the plan in a biased or incompetent manner— the Commission shall revoke the approval of the plan; and the State shall repay the Commission for any advance payments made under subsection
(c)with respect to any period during which the plan was not in compliance with such requirements or was administered in a biased or incompetent manner.