Sec. 101. Political advertising vouchers and payments to defray costs of postage for participating candidates
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The Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 et seq.) is amended by adding at the end the following new title: If a candidate in a general election to the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under this title with respect to the election for such office, the candidate shall be entitled to political advertising vouchers as provided under this section. The value of a political advertising voucher provided to a candidate under this section shall be equal to the product of— the population of the State (in the case of a candidate for the office of Senator) or the congressional district involved (in the case of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress), based on the most recent population estimate from the Bureau of the Census; and $1.
The Commission shall provide political advertising vouchers under this section to a candidate not later than 7 days after the candidate is certified as a participating candidate under this title. Vouchers provided by the Commission to participating candidates under section 501 may be used only for the purchase of time from a broadcasting station or online platform for the dissemination of political advertisements relating to an election for the office of Senator or Member of the House of Representatives (including a Delegate or Resident Commissioner to the Congress) by the participating candidate to which the vouchers were provided, except that— a candidate may exchange vouchers with a national committee of a political party under paragraph (2); and a national committee of a political party may use vouchers to purchase time for the dissemination of political advertisements for generic party advertising (as defined by the Commission in regulations) 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).
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 national committee of the political party of which the individual is a candidate in exchange for money in an amount equal to the cash value of the voucher or portion exchanged. The transfer of a voucher, in whole or in part, to a national committee of a political party under this paragraph does not release the candidate from any obligation with respect to the provision of the voucher under this title.
Any committee to which a voucher or portion thereof is transferred under subparagraph (A)— shall account fully, in accordance with such requirements as the Commission may establish, for the receipt of the voucher; and may not use the transferred voucher or portion thereof for any purpose other than a purpose described in paragraph (1)(B). If a candidate transfers a voucher or any portion thereof to a committee under subparagraph (A)— 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; 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 the amount, if identified as a voucher exchange , shall not be considered a contribution for the purposes of sections 315 and 513.
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 time for the dissemination of political advertisements by a broadcasting station or online platform in accordance with this section. A broadcasting station and online platform shall accept vouchers as payment for the purchase of time for the dissemination of political advertisements by the station or platform in accordance with this section.
The Commission shall redeem vouchers accepted by broadcasting stations and online platforms 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. A voucher may only be used to pay for time for the dissemination of political advertisements to be disseminated 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. The use of a voucher to purchase time for the dissemination of political advertisements constitutes an expenditure as defined in section 301(9)(A). In this section: The term broadcasting station has the meaning given that term by section 315(g)(1) of the Communications Act of 1934. The term online platform means any public-facing website, web application, or digital application (including a social network, ad network, or search engine) which sells political advertisements. 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)). If a candidate in a general election to the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under this title with respect to the election for such office, the candidate shall be entitled to a payment under this title to defray the costs of postage incurred in connection with the election by authorized committees of the candidate. The amount of the payment made to a candidate under this section to defray the costs of postage shall be equal to the product of— the population of the State (in the case of a candidate for the office of Senator) or the congressional district involved (in the case of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress), based on the most recent population estimate from the Bureau of the Census; and 50 cents. Upon receiving a payment under this section, a candidate shall deposit the payment in a separate, segregated account of any authorized committees of the candidate, and shall ensure that amounts in such account are used solely for the payment of postage incurred by such committees in connection with the election. The Commission shall make a payment under this section to a candidate not later than 7 days after the candidate is certified as a participating candidate under this title. In this title, the term qualified small dollar contribution means, with respect to a candidate and the authorized committees of a candidate, a contribution that meets the following requirements: The contribution is in an amount that is— not less than $1; and not more than $200. The contribution is made by an individual, either directly or through an intermediary or conduit (as described in section 315(a)(8)), who is not otherwise prohibited from making a contribution under this Act. The individual who makes the contribution does not make contributions to the candidate or the authorized committees of the candidate with respect to the election involved in an aggregate amount that exceeds the amount described in paragraph (1)(B), or any contribution to the candidate or the authorized committees of the candidate with respect to the election involved that otherwise is not a qualified small dollar contribution. An individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election may not make any subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election cycle which is not a qualified small dollar contribution. Subparagraph
(A)does not apply with respect to a contribution made to a candidate who, during the Clean Money qualifying period described in section 511(c), submits a statement to the Commission under section 513(c) to voluntarily withdraw from participating in the program under this title. If, notwithstanding the prohibition described in paragraph (1), an individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election makes a subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election which is prohibited under paragraph
(1)because it is not a qualified small dollar contribution, the candidate may take one of the following actions: Not later than 2 weeks after receiving the contribution, the candidate may return the subsequent contribution to the individual. 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 Clean Money Fund under section 531 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. Nothing in this section may be construed to prohibit an individual from making multiple qualified small dollar contributions to any candidate or any number of candidates, so long as each contribution meets each of the requirements of paragraphs (1), (2), and
(3)of subsection (a). Each authorized committee of a candidate who seeks to be a participating candidate under this title shall provide the following information in any materials for the solicitation of contributions, including any Internet site through which individuals may make contributions to the committee: A statement that if the candidate is certified as a participating candidate under this title, the candidate will receive political advertising vouchers under this title in an amount which is based on the total amount of qualified small dollar contributions received. A statement that a contribution which meets the requirements set forth in subsection
(a)shall be treated as a qualified small dollar contribution under this title unless the contributor notifies the committee not later than 48 hours after making the contribution that the contribution is not to be so treated. 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. An authorized committee may meet the requirements of paragraph (1)— 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 by modifying the information it provides to persons making contributions which is otherwise required under title III (including information it provides through the Internet). A candidate for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress is eligible to be certified as a participating candidate under this title with respect to an election if the candidate meets the following requirements: The candidate files with the Commission a statement of intent to seek certification as a participating candidate. The candidate meets the qualifying requirements of section 512. The candidate files with the Commission a statement certifying that the authorized committees of the candidate meet the requirements of section 504(c). Not later than the last day of the Clean Money 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— has complied and, if certified, will comply with the contribution and expenditure requirements of section 521; and if certified, will run only as a participating candidate for all elections for the office that such candidate is seeking during that election cycle. The candidate is the nominee of a political party whose candidate received not less than 15 percent of the total number of popular votes received by all candidates in the most recent general election for the office the candidate seeks. Notwithstanding subsection (a), a candidate shall not be eligible to be certified as a participating candidate under this title for a general election or a general runoff election unless the candidate’s party nominated the candidate to be placed on the ballot for the general election or the candidate is otherwise qualified to be on the ballot under State law. The term Clean Money qualifying period means, with respect to any candidate for an office, the 180-day period (during the election cycle for such office) which begins on the date on which the candidate files a statement of intent under subsection (a)(1), except that such period may not continue after the date that is 30 days before the date of the general election for the office. A candidate for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress meets the requirement of this section if, during the Clean Money qualifying period described in section 511(c), each of the following occurs: Not fewer than 1,000 individuals who are residents of the State in which the candidate seeks election make a qualified small dollar contribution to the candidate. The candidate obtains a total dollar amount of qualified small dollar contributions from individuals who are residents of the State in which the candidate seeks election which is equal to or greater than $50,000. Each qualified small dollar contribution— may be made by means of a personal check, money order, debit card, credit card, electronic payment account, or any other method deemed appropriate by the Commission; shall be accompanied by a signed statement (or, in the case of a contribution made online or through other electronic means, an electronic equivalent) containing— the contributor’s name and the contributor's address in the State in which the primary residence of the contributor is located; and an oath declaring that the contributor— understands that the purpose of the contribution is to show support for the candidate so that the candidate may qualify for political advertising vouchers under this title; is making the contribution in his or her own name and from his or her own funds; has made the contribution willingly; and has not received any thing of value in return for the contribution; and shall be acknowledged by a receipt that is sent to the contributor with a copy (in paper or electronic form) kept by the candidate for the Commission. The Commission shall establish procedures for the auditing and verification of qualified small dollar contributions, including procedures for random audits, to ensure that such contributions meet the requirements of this section. Not later than 5 days after a candidate files an affidavit under section 511(a)(3), the Commission shall— determine whether or not the candidate meets the requirements for certification as a participating candidate; if the Commission determines that the candidate meets such requirements, certify the candidate as a participating candidate; and notify the candidate of the Commission's determination. If the Commission certifies a candidate as a participating candidate with respect to a general election, the Commissioner shall be deemed to have certified the candidate as a participating candidate with respect to any subsequent runoff election held in that election cycle. The Commission may revoke a certification under subsection
(a)if— a candidate fails to qualify to appear on the ballot at any time after the date of certification (other than a candidate certified as a participating candidate with respect to a general election who fails to qualify to appear on the ballot for a subsequent runoff election in that election cycle); a candidate ceases to be a candidate for the office involved, as determined on the basis of an official announcement by an authorized committee of the candidate or on the basis of a reasonable determination by the Commission; or a candidate otherwise fails to comply with the requirements of this title, including any regulatory requirements prescribed by the Commission. The Commission shall revoke a certification under subsection
(a)if a penalty is assessed against the candidate under section 309(d) with respect to the election. If a candidate’s certification is revoked under this subsection— the candidate shall repay to the Clean Money Fund established under section 531— an amount equal to the value of the political advertising vouchers received under this title with respect to the election, plus interest (at a rate determined by the Commission on the basis of an appropriate annual percentage rate for the month involved) on any such amount received; plus an amount equal to any payment the candidate received under this title to defray the costs of postage with respect to the election, plus interest (at a rate determined by the Commission on the basis of an appropriate annual percentage rate for the month involved) on any such payment received; the candidate may not receive political advertising vouchers or payments to defray the costs of postage under this title during the remainder of the election cycle involved; and the candidate may not be certified as a participating candidate under this title with respect to the next election cycle. If the Commission revokes the certification of an individual as a participating candidate under this title 3 times, the individual may not be certified as a participating candidate under this title with respect to any subsequent election. At any time during the Clean Money qualifying period described in section 511(c), a candidate may withdraw from participation in the program under this title by submitting to the Commission a statement of withdrawal (without regard to whether or not the Commission has certified the candidate as a participating candidate under this title as of the time the candidate submits such statement), so long as the candidate has not received a political advertising voucher under section 501 or a payment under section 503. In this title, a participating candidate means a candidate for the office of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress who is certified under this section as eligible to receive benefits under this title. Except as provided in subsection (c), a participating candidate with respect to a general election shall, with respect to that election and any subsequent runoff election in that election cycle for the office involved, accept no contributions from any source and make no expenditures from any amounts, other than the following: Qualified small dollar contributions. Political advertising vouchers and payments to defray the costs of postage under this title. Contributions from political committees established and maintained by a national or State political party, subject to the applicable limitations of section 315. Subject to subsection (b), personal funds of the candidate (other than funds received through qualified small dollar contributions). Contributions from individuals who do not make qualified small dollar contributions but 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 such individual with respect to any such election after the date the candidate files a statement of intent under section 511(a)(1) may not exceed $1,000. Contributions from multicandidate political committees, subject to the applicable limitations of section 315. A candidate who is certified as a participating candidate may use personal funds so long as— the aggregate amount used with respect to the general election and any subsequent runoff election in that election cycle (including any period of the cycle occurring prior to the candidate’s certification as a participating candidate) does not exceed $10,000; and the funds are used only for making direct payments for the receipt of goods and services which constitute authorized expenditures in connection with such elections. A candidate who has accepted contributions that are not described in subsection
(a)is not in violation of subsection (a), but only if all such contributions are— returned to the contributor; submitted to the Commission for deposit in the Clean Money Fund established under section 531; or spent in accordance with paragraph (2). If a candidate has made expenditures prior to the date the candidate files a statement of intent under section 511(a)(1) that the candidate is prohibited from making under subsection
(a)or subsection (b), the candidate is not in violation of such subsection if the aggregate amount of the prohibited expenditures is less than the amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions which the candidate is required to obtain) which is applicable to the candidate. Notwithstanding paragraph (1), unexpended contributions received by the candidate or an authorized committee of the candidate with respect to a previous election may be retained, but only if the candidate places the funds in escrow and refrains from raising additional funds for or spending funds from that account during the election cycle in which a candidate is a participating candidate. Contributions received and expenditures made by the candidate or an authorized committee of the candidate prior to the effective date of this title shall not constitute a violation of subsection
(a)or (b). Unexpended contributions shall be treated the same as campaign surpluses under paragraph (3), and expenditures made shall count against the limit in paragraph (2). For purposes of this section, a payment made by a political party in coordination with a participating candidate shall not be treated as a contribution to or as an expenditure made by the participating candidate. An authorized committee of a candidate who is certified as a participating candidate under this title with respect to an election may not establish a joint fundraising committee with a political committee other than another authorized committee of the candidate. If a candidate established a joint fundraising committee described in paragraph
(1)with respect to a prior election for which the candidate was not certified as a participating candidate under this title and the candidate does not terminate the committee, the candidate shall not be considered to be in violation of paragraph
(1)so long as that joint fundraising committee does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title. A candidate who is certified as a participating candidate under this title with respect to an election may not establish, finance, maintain, or control a leadership PAC. If a candidate established, financed, maintained, or controlled a leadership PAC prior to being certified as a participating candidate under this title and the candidate does not terminate the leadership PAC, the candidate shall not be considered to be in violation of paragraph
(1)so long as the leadership PAC does not receive any contributions or make any disbursements during the election cycle for which the candidate is certified as a participating candidate under this title. In this subsection, the term leadership PAC has the meaning given such term in section 304(i)(8)(B). Each authorized committee of a candidate certified as a participating candidate under this title— shall provide for separate accounting of each type of contribution described in section 521(a) which is received by the committee; and shall provide for separate accounting for the political advertising vouchers received under this title. Each authorized committee of a participating candidate under this title shall elect, in accordance with section 304(b)(3)(A), to include in the reports the committee submits under section 304 the identification of each person who makes a qualified small dollar contribution to the committee. Each authorized committee of a participating candidate under this title shall ensure that all information reported to the Commission under this Act with respect to contributions and expenditures of the committee is available to the public on the Internet (whether through a site established for purposes of this subsection, a hyperlink on another public site of the committee, or a hyperlink on a report filed electronically with the Commission) in a searchable, sortable, and downloadable manner. Not later than the date that is 180 days after the last election for which a candidate certified as a participating candidate qualifies to be on the ballot during the election cycle involved, such participating candidate shall return to the Commission— any political advertising vouchers provided to authorized committees of the candidate which remain unused as of such date; and any amounts remaining in the separate, segregated accounts established by authorized committees of the candidate under section 503(c) for the receipt of the payments made under this title to defray the costs of postage incurred in connection with the election. There is established in the Treasury a fund to be known as the Clean Money Fund . The Fund shall consist of the following amounts: Amounts appropriated to the Fund, including trust fund amounts appropriated pursuant to applicable provisions of the Internal Revenue Code of 1986. Amounts deposited into the Fund under— section 521(c) (relating to exceptions to contribution requirements); section 533 (relating to violations); and any other section of this Act. Interest on, and the proceeds from, the sale or redemption of, any obligations held by the Fund under subsection (c). 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. Amounts in the Fund shall be available without further appropriation or fiscal year limitation to redeem vouchers which are accepted by broadcasting stations and online platforms as payment for the purchase of time for the dissemination of political advertisements under subtitle A. Under regulations established by the Commission, rules similar to the rules of section 9006(c) of the Internal Revenue Code of 1986 shall apply. The Commission shall prescribe regulations to carry out the purposes of this title, including regulations— verifying the amount of qualified small dollar contributions with respect to a candidate; effectively and efficiently monitoring and enforcing the limits on the raising of qualified small dollar contributions; effectively and efficiently monitoring and enforcing the limits on the use of personal funds by participating candidates; and monitoring the use of political advertising vouchers and payments provided under this title through audits of not fewer than 1/10 (or, in the case of the first 3 election cycles during which the program under this title is in effect, not fewer than 1/3 ) of all participating candidates or other mechanisms. After each regularly scheduled general election for Federal office, the Commission shall conduct a comprehensive review of the program under this title, including— the maximum and minimum dollar amounts of qualified small dollar contributions under section 504; the number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate; the value of the political advertising vouchers a candidate may receive under this title; the amount of the payment made to a candidate under this title to defray the cost of postage; the overall satisfaction of participating candidates and the American public with the program; and such other matters relating to financing of campaigns as the Commission determines are appropriate. In conducting the review under paragraph (1), the Commission shall consider the following: The Commission shall consider whether the number and dollar amounts of qualified small dollar contributions required strikes an appropriate 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 Oversight Commission determines is appropriate. The Commission shall consider whether the totality of the amount of funds allowed to be raised by participating candidates (including through qualified small dollar contributions) and the value of political advertising vouchers and payments made to defray the costs of postage provided under this title 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. Based on the review conducted under paragraph (1), the Commission may recommend to Congress adjustments of the following amounts: The number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate. The value of the political advertising vouchers a candidate may receive under this title. The amount of the payment made to a candidate under this title to defray the costs of postage. Not later than each June 1 which follows a regularly scheduled general election for Federal office for which payments were made under this title, the Commission shall submit to the Committee on House Administration of the House of Representatives a report— containing an analysis of the review conducted under subsection (b), including a detailed statement of the Commission’s findings, conclusions, and recommendations based on such review, including any recommendations for adjustments of amounts described in subsection (b)(3); and documenting, evaluating, and making recommendations relating to the administrative implementation and enforcement of the provisions of this title. If a candidate who has been certified as a participating candidate accepts a contribution or makes an expenditure that is prohibited under section 521, the Commission may assess a civil penalty against the candidate in an amount that is not more than 3 times the amount of the contribution or expenditure. Any amounts collected under this subsection shall be deposited into the Clean Money Fund established under section 531. If the Commission determines that any payment made to a candidate under this title to defray the costs of postage was not used as provided for in this title, the Commission shall so notify the candidate and the candidate shall pay to the Fund an amount equal to— the value of the payments so used; and interest on any such amounts (at a rate determined by the Commission). 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. If the Commission assesses 3 or more civil penalties under subsection
(a)against a candidate (with respect to either a single election or multiple elections), the Commission may refuse to certify the candidate as a participating candidate under this title with respect to any subsequent election, except that if each of the penalties were assessed as the result of a knowing and willful violation of any provision of this Act, the candidate is not eligible to be certified as a participating candidate under this title with respect to any subsequent election. A candidate is not eligible to be certified as a participating candidate under this title with respect to an election if a penalty has been assessed against the candidate under section 309(d) with respect to any previous election. Any action by the Commission in carrying out this title shall be subject to review by the United States Court of Appeals for the District of Columbia upon petition filed in the Court not later than 30 days after the Commission takes the action for which the review is sought. The provisions of chapter 7 of title 5, United States Code, apply to judicial review under this section. In any calendar year after 2020, section 315(c)(1)(B) shall apply to each amount described in subsection
(b)in the same manner as such section applies to the limitations established under subsections (a)(1)(A), (a)(1)(B), (a)(3), and
(h)of such section, except that for purposes of applying such section to the amounts described in subsection (b), the base period shall be 2019. The amounts described in this subsection are as follows: The amount referred to in section 501(b)(2) (relating to the formula used to determine the value of a political advertising voucher provided to a participating candidate under this title). The amount referred to in section 503(b)(2) (relating to the formula used to determine the amount of the payment made to a participating candidate under this title to defray the costs of postage). The amounts referred to in section 504(a)(1) (relating to the amount of a qualified small dollar contribution). The amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions). The amount referred to in section 521(a)(5) (relating to the aggregate amount of contributions a participating candidate may accept from any individual with respect to an election). The amount referred to in section 521(b) (relating to the amount of personal funds that may be used by a candidate who is certified as a participating candidate). In this title, the term election cycle means, with respect to an election for an office, the period beginning on the day after the date of the most recent general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election) and ending on the date of the next general election for that office (or, if the general election resulted in a runoff election, the date of the runoff election). .
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Sec. 101
Political advertising vouchers and payments to defray costs of postage for participating candidates
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