S. 3681Senate111th Congress (2009-2011)In Committee

Presidential Funding Act of 2010

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2 earlier actions

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

July 30, 2010

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SenateIntro Referral

Introduced in Senate

July 30, 2010

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S6551-6553)

July 30, 2010

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

July 30, 2010

Floor Debate

2 members

What members said about S. 3681 on the floor

2 Democrats

Sen. Russell D. FeingoldD-WI · Jul 30, 2010

Mr. President, today I will reintroduce a bill to repair and strengthen the presidential public financing system. The Presidential Funding Act of 2010 will ensure that this system will continue to…

Mr. President, today I will reintroduce a bill to repair and strengthen the presidential public financing system. The Presidential Funding Act of 2010 will ensure that this system will continue to fulfill its promise in the 21st century. The bill will take effect in January 2011, so it will first apply in the 2012 presidential election.

It is important to note that the cost of this bill is completely offset by reforms to the federal irrigation subsidy program. Friends of the Earth in its 2003 Green Scissors report estimated that these provisions would save at least $4.4 billion over 10 years, which is more than sufficient to cover the estimated cost of this bill--$1.1 billion over 4 years.

The presidential public financing system was put into place in the wake of the Watergate scandals as part of the Federal Election Campaign Act of 1974. It was held to be constitutional by the Supreme Court in Buckley v. Valeo. The system, of course, is voluntary, as the Supreme Court required in Buckley. Until the 2008 election, every major party nominee for President since 1976 had participated in the system for the general election and, prior to 2000, every major party nominee had participated in the system for the primary election as well.

In the 2004 election, President Bush and two Democratic candidates, Howard Dean and the eventual nominee, John Kerry, opted out of the system for the presidential primaries. President Bush and Senator Kerry elected to take the taxpayer-funded grant in the general election. President Bush also opted out of the system for the Republican primaries in 2000 but accepted the general election grant.

In 2008, several of the leading candidates for President, including President Obama, Secretary Clinton, Senator McCain and Governors Huckabee and Romney, did not participate in the primary system. While Senator McCain accepted the public grant for the general election, President Obama became the first major party candidate not to participate in the general election public funding system.

It is unfortunate that the matching funds system for the primaries has become less practicable. The system protects the integrity of the electoral process by allowing candidates to run viable campaigns without becoming overly dependent on private donors. The system has worked well in the past, and it is worth repairing so that it can work in the future. If we don't repair it, the pressures on candidates to opt out will increase until the system collapses from disuse.

In the post-Citizens United world, the likelihood of general election candidates participating in the system if it is not changed is greatly reduced as well. The current system completely prohibits private fundraising, requiring candidates to fund their campaigns solely with the general election grant, which was $84.1 million in 2008. Senator McCain, who accepted the grant, raised approximately $220 million for the primaries in 2008. President Obama, who did not participate in either the primary or general election public funding system, raised a total of approximately $746 million for the entire 2008 campaign. The public funding system is clearly not keeping pace with the current cost of campaigns or the ability of candidates to raise private money.

This bill makes changes to both the primary and general election public financing system to address the weaknesses and problems that have been identified by participants in the system, experts on the presidential election financing process, and an electorate that is increasingly dismayed by the influence of money in politics. First and most important, it eliminates all spending limits in the law for both the primary and the general elections. This should make the system much more viable for serious candidates facing opponents who are capable of raising significant sums outside the system. The bill also makes available substantially more public money for participating candidates. It increases the match of small contributions from 1:1 to 4:1 and provides up to $100 million in matching funds for a participating candidate in the primaries and $200 million in total grants for the general election.

In exchange for the much more generous public grants provided by the bill, participating candidates are required to focus their fundraising on small donors. First, they must agree to accept contributions of only up to $1,000 in the primaries. The current individual contribution limit, established by the Bipartisan Campaign Reform Act of 2002, is $2,400. In addition, only contributors of $200 or less can have their contributions matched. Since each $200 contribution will yield $800 in matching funds, there will be a great incentive for candidates to seek out small donors. The 2008 campaign saw an explosion of small donations to the campaigns of both parties. This bill should help promote and extend this trend, which is a positive development for our democracy.

Under the bill, for the first time, matching funds will also be part of the general election system. In addition to a $50 million grant, general election candidates can receive up to $150 million in matching funds, again based on a 4:1 match of contributions of $200 or less. General election candidates can also raise contributions of up to $500 from other donors whose contributions will not be matched. General election candidates, therefore, will be able to spend up to $200 million in public funds plus whatever they can raise in contributions of $500 or less. Even in light of the specter of corporate spending permitted by Citizens United, these should be adequate resources for a campaign that lasts only a few months.

One very important provision of the bill ties the primary and general election systems together and requires candidates to make a single decision on whether to participate. Candidates who opt out of the primary system and decide to rely solely on private money cannot return to the system for the general election. And candidates must commit to participate in the system in the general election if they want to receive Federal matching funds in the primaries.

This bill also addresses what some have called the ``gap'' between the primary and general election seasons. Presumptive presidential nominees have emerged earlier in the election

year over the life of the public financing system. This has led to some nominees being essentially out of money between the time that they nail down the nomination and the convention where they are formally nominated and become eligible for the general election grant. For a few cycles, soft money raised by the parties filled in that gap, but the Bipartisan Campaign Reform Act of 2002 fortunately has now closed that loophole. By eliminating spending limits in the primaries, the bill makes sure that candidates can continue raising and spending the money they need to remain competitive. In addition, the political parties will be permitted to spend up to $50 million coordinated with their candidates, an increase from the current limit of $15 million.

Obviously, these changes make this a more generous system. So the bill also makes the requirement for qualifying more difficult. To be eligible for matching funds, a candidate must raise $25,000 in matchable contributions--up to $200 for each donor--in at least 20 States. That is five times the threshold under current law.

The bill also makes a number of changes in the system to reflect the changes in our presidential races over the past several decades. For one thing, it makes matching funds available starting six months before the date of the first primary or caucus, which is approximately 6 months earlier than is currently the case. For another, it sets a single date for release of the public grants for the general election-- the Friday before Labor Day. This addresses an inequity in the current system, under which the general election grants are released after each nominating convention, which can be several weeks apart.

The bill also prohibits Federal elected officials and candidates from soliciting soft money for use in funding the party conventions and requires presidential candidates to disclose bundled contributions. The bundling provision builds on a provision contained in ethics and lobbying reform legislation enacted in 2007. It requires presidential candidates to disclosure all bundlers of $50,000 or more.

Additional provisions, and those I have discussed in summary form here, are explained in a section-by-section analysis of the bill that I will ask to be printed in the Record, following my statement.

The purpose of this bill is to improve the campaign finance system, not to advance one party's interests. The current President raised and spent more money than any other candidate in history. But he has a history of supporting the presidential public funding system, and he recognizes the importance of reforming and updating the current system. I am optimistic that he will endorse this bill, and will participate in the system if he runs for reelection.

Fixing the presidential public financing system will cost money. The total cost of the system, based on data from the 2008 elections, is projected to be around $1.1 billion over the 4-year election cycle. Though this is a large number, it is actually a very small investment to make to protect our democracy and preserve the integrity of our presidential elections. The American people do not want to see a return to the pre-Watergate days of candidates entirely beholden to private donors. We must act to ensure the fairness of our elections and the confidence of our citizens in the process by repairing the cornerstone of the Watergate reforms.

Mr. President, I ask unanimous consent that a section by section analysis be printed in the Record.

Sen. Russell D. FeingoldD-WI · Jul 30, 2010

Mr. President, today I will reintroduce a bill to repair and strengthen the presidential public financing system. The Presidential Funding Act of 2010 will ensure that this system will continue to…

This bill also addresses what some have called the ``gap'' between the primary and general election seasons. Presumptive presidential nominees have emerged earlier in the election

Additional provisions, and those I have discussed in summary form here, are explained in a section-by-section analysis of the bill that I will ask to be printed in the Record, following my statement.

Mr. President, I ask unanimous consent that a section by section analysis be printed in the Record.

Sen. Richard J. DurbinD-IL · Jul 30, 2010

Mr. President, I rise today to introduce the Family and Medical Leave Inclusion Act. This is a bill--previously introduced in the House of Representatives on a bipartisan basis--that would extend the important protections of the Family and Medical Leave Act to same- sex couples in America. Under current law, it is impossible for many employees to be with their partners during times of medical need.

The late Senator Edward Kennedy once said, ``It is wrong for our civil laws to deny any American the basic right to be part of a family, to have loved ones with whom to build a future and share life's joys and tears, and to be free from the stain of bigotry and discrimination.''

America has a rich history of embracing those once discriminated against and making them part of our nation's family. All Americans-- regardless of their background--are deserving of dignity and respect.

In 1993, Congress passed the Family and Medical Leave Act to, among other things, protect American workers facing either a personal health crisis, or that of a close family member.

Thanks to the FMLA, those people in the workforce who suffer a serious illness or significant injury are able to take time to heal, recover, follow their doctors' orders, and return to their jobs strong, healthy, and ready to be productive again. Most importantly, they know that they will still have jobs to return to, because those are protected by the law.

Likewise, workers who learn the terrible news that a child, a parent, or a spouse is sick or injured, and in need of help from a loved one, can provide that care and support knowing that their jobs are not in jeopardy for doing so.

In passing the FMLA, Congress followed the lead of many large and small businesses which had already recognized and addressed this need. These companies had put in place systems that gave their employees time to heal themselves or their family members, and ensured that those employees would return to work as soon as they could. In standing by their employees in a time of need, these companies accomplished three laudable goals: they eased the burden of those employees in crisis, they reassured the rest of their employees that they too would be covered should they find themselves in need of that protection, and they ensured the return of these skilled and trusted employees, sparing business the expense and effort of recruiting and training new people. It was a win-win strategy.

The FMLA took that model and its benefits and brought the majority of the American workforce under the same protections.

Today, once again, we have the opportunity to learn from a number of forward-thinking, pioneering businesses--big and small and across the United States--who have taken it upon themselves to improve on the protections provided by law. While respecting the spirit and purpose of the FMLA, these companies have simply recognized the changing nature of the modern American family.

According to the Human Rights Campaign--a leading civil rights organization that strongly supports the Family and Medical Leave Inclusion Act--461 major American corporations, nine states, and the District of Columbia now extend FMLA benefits to include leave on behalf of a same-sex partner.

In 1993, the FMLA was narrowly tailored to apply only to those caring for a very close family member. The idea was to capture that inner circle of people, where the family member assuming the caretaker role would be one of very few, if not the only person, who could do so. That idea is still valid, and that idea has not changed.

What has changed are the people who might be in that inner circle. The nuclear American family has grown--sometimes by design, and sometimes by necessity. More and more, that inner circle of close family might include a grandparent or grandchild, siblings, or same-sex domestic partners in loving and committed relationships.

As the law stands right now, too many of these people are left outside of the protections of the FMLA.

Earlier this summer, the U.S. Department of Labor issued guidance clarifying that an individual serving as a parent, but who may not have a legal or biological relationship to a child, is eligible to take FMLA leave to care for that child or attend to a birth or adoption. As Labor Secretary Hilda Solis noted, ``No one who intends to raise a child should be denied the opportunity to be present when that child is born simply because the state or an employer fails to recognize his or her relationship with the biological parent. . . . The Labor Department's action today sends a clear message to workers and employers alike: All families, including LGBT families, are protected by the FMLA.''

I applaud the Labor Department and the Obama Administration for sending this important message, but unfortunately, the FMLA statute still does not allow an employee to take leave to care for a same-sex partner. We must act to truly make these important protections available to all families.

At times like these, when we as a nation are experiencing a difficult employment market, those with good jobs know the value of those jobs and are working as hard as they can to keep them. Those people should never have to weigh the value of their employment security against family duties to care for a loved one.

But even in the best of economic times, this bill makes sense. Injury or illness can come at any time, and families are rocked by the needs and decisions that come along with that reality.

There are many who would understandably question what this kind of change in the law would cost the business community. I would remind those people that the FMLA is already a very good law; it is in place and it is working. It provides unpaid leave when the need arises, and it only applies to businesses that have enough employees on hand to handle the absence of a single worker without too great a burden.

We have also seen that 90 percent of the leave time that has been taken under the FMLA has been so that employees can care for themselves or for a child in their care, and those situations are already covered under the law as it stands. What the Family and Medical Leave Inclusion Act would do is provide a little more flexibility, and recognize that there are a few more people in that inner circle of family who we might call upon, or who might call upon us. It will not make a big difference to the companies involved, but it will make all the difference in the world to those protected by it.

We often hear calls from some of our colleagues who feel that the Government tries to do too much, and that we try to force government to do for us what we should be doing for ourselves or for each other. That is exactly why this should be a law that we can all agree upon. Certainly we can all agree that family is the first and best safety net in times of personal crisis. Families need to be given the realistic ability to provide that assistance. What the Family and Medical Leave Inclusion Act does is give those family members the ability to help their loved ones in ways that only they can, without fear of losing their jobs in the process.

The Family and Medical Leave Inclusion Act takes a very good law and makes it even better. It contains reasonable changes that merely reflect the modern American family. It is the right thing to do, and I hope we can join together on a bipartisan basis to pass it.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued July 30, 2010

111th CONGRESS

2d Session

S. 3681

IN THE SENATE OF THE UNITED STATES

July 30, 2010

Mr. Feingold introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to reform the system of public financing for Presidential elections, and for other purposes.

Short title; table of contents

(a)

Short title

This Act may be cited as the Presidential Funding Act of 2010.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Primary elections

Sec. 101. Increase in and modifications to matching payments.

Sec. 102. Eligibility requirements for matching payments.

Sec. 103. Inflation adjustment for contribution limitations and matching contributions.

Sec. 104. Repeal of expenditure limitations.

Sec. 105. Period of availability of matching payments.

Sec. 106. Examination and audits of matchable contributions.

Sec. 107. Modification to limitation on contributions for presidential primary candidates.

TITLE II—General elections

Sec. 201. Modification of eligibility requirements for public financing.

Sec. 202. Repeal of expenditure limitations and use of qualified campaign contributions.

Sec. 203. Matching payments and other modifications to payment amounts.

Sec. 204. Inflation adjustment for payment amounts and qualified contributions.

Sec. 205. Increase in limit on coordinated party expenditures.

Sec. 206. Establishment of uniform date for release of payments.

Sec. 207. Amounts in Presidential Election Campaign Fund.

Sec. 208. Use of general election payments for general election legal and accounting compliance.

TITLE III—Political conventions

Sec. 301. Repeal of public financing of party conventions.

Sec. 302. Contributions for political conventions.

Sec. 303. Prohibition on use of soft money.

TITLE IV—Other provisions

Sec. 401. Revisions to designation of income tax payments by individual taxpayers.

Sec. 402. Regulations with respect to best efforts for identifying persons making contributions.

Sec. 403. Prohibition on joint fundraising committees.

Sec. 404. Disclosure of bundled contributions to presidential campaigns.

Sec. 405. Judicial review of actions related to campaign finance laws.

TITLE V—Offsets

Sec. 501. Reforming irrigation subsidies.

TITLE VI—Severability and effective date

Sec. 601. Severability.

Sec. 602. Effective date.

Primary elections

101.

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 400 percent of the amount of each matchable contribution; 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 inserting after subsection (b) 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—

(A)

which does not exceed $200, 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 matchable contribution) to such candidate and the authorized committees of such candidate in excess of $200 with respect to such nomination,

(ii)

such candidate and the authorized committees of such candidate will not accept contributions from such individual (including such matchable contribution) aggregating more than $200 with respect to such nomination, and

(iii)

such contribution was not—

(I)

forwarded from the contributor from any person other than an individual, or

(II)

received by the candidate or committee from a contributor or contributors, but credited by the committee or candidate to another person who is not an individual through records, designations, or other means of recognizing that a certain amount of money has been raised by such person.

(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)

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

Section 9034(b) of the Internal Revenue Code of 1986 is amended by striking shall not exceed and all that follows and inserting shall not exceed $100,000,000..

102.

Eligibility requirements for matching payments

(a)

Amount of aggregate contributions per State

Section 9033(b)(3) of the Internal Revenue Code of 1986 is amended by striking $5,000 and inserting $25,000.

(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.

(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 101(a)(3)(A) is amended by inserting or 9033(b) after 9034.

(c)

Ban on contributions by lobbyists and PACs

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—

(A)

any contribution from—

(i)

an individual who is a current registrant under section 4(a)(1) of the Lobbying Disclosure Act of 1995, or

(ii)

an individual who is listed on a current registration filed under section 4(b)(6) of such Act or a current report under section 5(b)(2)(C) of such Act,

(B)

any bundled contribution (as defined in section 304(i)(8)) forwarded by or credited to a person described in section 304(i)(7), and

(C)

any contribution from a political committee other than a political committee of a political party.

(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.

103.

Inflation adjustment for contribution limitations and matching contributions

Section 9033 of such Code is amended by adding at the end the following new subsection:

(d)

Inflation adjustments

(1)

In general

In the case of any applicable period beginning after 2012, each of the dollar amounts in subsection (b)(4) and section 9034(b) 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 2012 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 last 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 $100, such amount shall be rounded to the nearest multiple of $100.

104.

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,

105.

Period of availability of matching payments

Section 9032(6) of such Code 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.

106.

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.

107.

Modification to limitation on contributions for presidential primary candidates

Section 315(a)(6) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(6)) is amended by striking calendar year and inserting four-year election cycle.

General elections

201.

Modification of eligibility requirements for public financing

Section 9003(a) 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 certain contributions and solicitations

The candidates certify to the Commission, under penalty of perjury, the following:

(A)

Lobbyists and PACs

Such candidates and the authorized committees of such candidates will not accept—

(i)

any contribution from—

(I)

an individual who is a current registrant under section 4(a)(1) of the Lobbying Disclosure Act of 1995, or

(II)

an individual who is listed on a current registration filed under section 4(b)(6) of such Act or a current report under section 5(b)(2)(C) of such Act,

(ii)

any bundled contribution (as defined in section 304(i)(8)) forwarded by or credited to a person described in section 304(i)(7), and

(iii)

any contribution from a political committee other than a political committee of a political party.

(B)

Solicitations for joint fundraising committees

Such candidates and their authorized committees will not, after June 1 of the election year, solicit any funds for any joint fundraising committee that includes any committee of a political party.

(C)

Solicitation for political parties

Such candidates and their authorized committees will not, after the date described in section 9006(b), solicit any funds for any committee of a political party.

Such certification shall be made within such time prior to the day of the presidential election as the Commission shall prescribe by rules or regulations.

202.

Repeal of expenditure limitations and use of qualified campaign contributions

(a)

Major parties

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

(b)

Major parties

In order to be eligible to receive any payments under section 9006, the candidates of a major party in a presidential election shall certify to the Commission, under penalty of perjury, that—

(1)

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

(A)

qualified campaign contributions, and

(B)

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

(2)

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).

Such certification shall be made at the same time as the certification required under subsection (a)(3).

(b)

Minor and new parties

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

(c)

Minor and new parties

In order to be eligible to receive any payments under section 9006, the candidates of a minor or new party in a presidential election shall certify to the Commission, under penalty of perjury, that such candidates and their authorized committees have not and will not accept any contributions to defray qualified campaign expenses other than—

(1)

qualified campaign contributions, and

(2)

contributions other than qualified campaign contributions to the extent to which—

(A)

the aggregate payments to which such candidates would be entitled under section 9004 if such candidates were candidates of a major party, exceed

(B)

the aggregate payments to which such candidates are entitled to under section 9004.

Such certification shall be made at the same time as the certification required under subsection (a)(3).

(c)

Definition of qualified campaign contributions

Section 9002 of the Internal Revenue Code of 1986 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)

is made after June 1 of the year in which the election is held,

(B)

does not exceed $500, and

(C)

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 $500 with respect to such election, 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 $500 with respect to such election.

(d)

Conforming amendments

(1)

Repeal of expenditure limits

(A)

Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a) is amended by striking subsection (b).

(B)

Section 315(c) of such Act (2 U.S.C. 441a(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)

Limitation on payments to candidates of minor and new parties

Paragraph (1) of section 9004(b) of the Internal Revenue Code of 1986 is amended by inserting , other than qualified contributions, after contributions.

(3)

Repayments

(A)

Section 9007(b) of such Code is amended by striking paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

(B)

Paragraph (2) of section 9007(b) of such Code, as redesignated by subparagraph (A), is amended by inserting qualified contributions and after contributions (other than.

(4)

Criminal penalties

(A)

Excess expenses

Section 9012(a) of the Internal Revenue Code of 1986 is amended by striking the first sentence.

(B)

Contributions

(i)

Candidates of major parties

Section 9012(b)(1) of the Internal Revenue Code of 1986 is amended by inserting other than qualified contributions, after to defray qualified campaign expenses,.

(ii)

Candidates of other parties

Section 9012(b)(2) of such Code is amended by inserting , other than qualified contributions, after contributions.

203.

Matching payments and other modifications to payment amounts

(a)

In general

(1)

Amount of payments for major party candidates

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—

(1)

Major parties

The eligible candidates of each major party in a presidential election shall be entitled to equal payment under section 9006 in an amount equal to—

(A)

$50,000,000, plus

(B)

an amount equal to 400 percent of the amount of each matchable contribution received by such candidate on or after June 1 of the year of the presidential election, or by his authorized committees.

The total amount of payments to which a major party candidate is entitled under subparagraph (B) shall not exceed $150,000,000.

(2)

Pre-election payments for minor and new parties

(A)

Payment based on prior votes received by party

(i)

In general

The eligible candidates of a minor party in a presidential election shall be entitled to equal payment under section 9006 in an amount equal to the sum of—

(I)

the product of the popular vote ratio with respect to such minor party and the amount in effect under paragraph (1)(A), plus

(II)

an amount equal to the applicable percentage of the amount of each matchable contribution received by such candidate on or after June 1 of the year of the presidential election, or by his authorized committees.

The total amount of payments to which such a candidate is entitled under subclause (II) shall not exceed the product of the amount in effect under the last sentence of paragraph (1)(A) and the popular vote ratio with respect to such minor party.

(ii)

Popular vote ratio with respect to a minor party

For purposes of this subparagraph, the popular vote ratio with respect to a minor party is the ratio of the number of popular votes received by the candidate for President of the minor party, as such candidate, in the preceding presidential election to the average number of popular votes received by the candidates for President of the major parties in the preceding presidential election.

(iii)

Applicable percentage

For purposes of subparagraph (A), the applicable percentage is the product of 400 percent and the popular vote ratio with respect to such minor party.

(B)

Payment based on prior votes received by candidate

(i)

In general

If the candidate of one or more political parties (not including a major party) for the office of President was a candidate for such office in the preceding presidential election and received 5 percent or more but less than 25 percent of the total number of popular votes received by all candidates for such office, such candidate and his running mate for the office of Vice President, upon compliance with the provisions of section 9003(a) and (c), shall be treated as eligible candidates entitled to payments under section 9006 in an amount computed as provided in subparagraph (A), determined by substituting the popular vote ratio with respect to such candidate for the popular vote ratio with respect to such minor party each place it appears.

(ii)

Popular vote ratio with respect to a candidate

For purposes of this subparagraph, the popular vote ratio with respect to a candidate is the ratio of the number of popular votes received by such candidate for the office of President in the preceding presidential election to the average number of popular votes received by the candidates for President of the major parties in the preceding presidential election.

(iii)

Coordination rule

If eligible candidates of a minor party are entitled to payments under this subparagraph, such entitlement shall be reduced by the amount of the entitlement allowed under subparagraph (A).

(3)

Post-election payments for minor and new parties

(A)

In general

The eligible candidates of a minor party or a new party in a presidential election whose candidate for President in such election receives, as such candidate, 5 percent or more of the total number of popular votes cast for the office of President in such election shall be entitled to payments under section 9006 equal to the sum of—

(i)

the product of the popular vote ratio with respect to such candidate and the amount in effect under paragraph (1)(A), plus

(ii)

The total amount of payments to which such a candidate is entitled under clause (ii) shall not exceed the product of the amount in effect under the last sentence of paragraph (1)(A) and the popular vote ratio with respect to such candidate.

(B)

Popular vote ratio with respect to a candidate

For purposes of this paragraph, the popular vote ratio with respect to a candidate in a presidential election is the ratio of the number of popular votes received by such candidate for the office of President in such election to the average number of popular votes received by the candidates for President of the major parties in such election.

(C)

Applicable percentage

For purposes of subparagraph (A), the applicable percentage is the product of 400 percent and the popular vote ratio with respect to such candidate.

(D)

Coordination rule

In the case of eligible candidates entitled to payments under paragraph (2), the amount allowable under this paragraph shall be limited to the amount, if any, by which the entitlement under the preceding sentence exceeds the amount of the entitlement under paragraph (2).

(2)

Conforming amendment

Section 9005(a) 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 202, 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—

(A)

which does not exceed $200, and

(B)

with respect to which the candidate has certified in writing that—

(i)

(ii)

(iii)

such contribution was not—

(I)

forwarded from the contributor from any person other than an individual, or

(II)

204.

Inflation adjustment for payment amounts and qualified contributions

Section 9004 of such Code is amended by adding at the end the following new subsection:

(f)

Inflation adjustments

(1)

In general

In the case of any applicable period beginning after 2012, each of the dollar amounts in subsection (a)(1) and section 9002(13) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

(2)

Applicable period

(3)

Rounding

If any amount as adjusted under paragraph (1) is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.

205.

Increase in limit on coordinated party expenditures

(a)

In general

Section 315(d)(2) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(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 $50,000,000.

(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 (2 U.S.C. 441a(c)(1)), as amended by section 202(d)(1)(B), is amended—

(A)

in subparagraph (B), by striking (d) and inserting (d)(3); and

(B)

by inserting at the end the following new subparagraph:

(D)

In any calendar year after 2012—

(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 (2 U.S.C. 441a(c)(2)(B)), as amended by section 202(d)(1)(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 2011.

206.

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.

207.

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 date of the enactment 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 on the date of the enactment of this Act.

208.

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..

III

Political conventions

301.

Repeal of public financing of party conventions

(a)

In general

Chapter 95 of the Internal Revenue Code of 1986 is amended by striking section 9008.

(b)

Conforming amendments

(1)

Section 9006(c) of such Code is amended by striking section 9008(b)(3).

(2)

Section 9009 of such Code is amended by inserting and at the end of paragraph (3), by striking the semicolon at the end of paragraph (4) and inserting a period, and by striking paragraphs (5) and (6).

(3)

Section 9012 of such Code, as amended by section 202(d)(4), is amended—

(A)

by striking subsection (a) and redesignating subsections (b) through (f) as subsections (a) through (e), respectively; and

(B)

in subsection (a), as redesignated by subparagraph (A), by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).

(4)

Section 9037(a) of such Code is amended by striking and for payments under section 9008(b)(3).

302.

Contributions for political conventions

(a)

Separate contribution limitation

(1)

Individuals

(A)

In general

Subsection (a)(1) of section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a) is amended by striking or at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting ; or, and by adding at the end the following new subparagraph:

(E)

to the national nominating convention account of political committees established and maintained by a national political party, in any 4-year period ending on the last day of the calendar year beginning on the day after a general election for the office of President which, in the aggregate, exceed the dollar amount in effect under subparagraph (B);

(B)

Conforming amendment

Subparagraph (B) of section 315(a)(1) of such Act (2 U.S.C. 441a(a)(1)) is amended by inserting (other than to the national nominating convention accounts of such political committees which are described in subparagraph (E)) after national political party.

(2)

Aggregate contribution limitation

Paragraph (3) of section 315(a) of such Act (2 U.S.C. 441a(a)) is amended by adding at the end the following new flush sentence:

The dollar amount in subparagraph (B) shall be increased by the amount of contributions (not in excess of the dollar amount in effect under subparagraph (E)) made to the national nominating convention account of a political committee established and maintained by a national political party during the period described in the preceding sentence.

(b)

National nominating convention account

Subsection (a) of section 315 of such Act (2 U.S.C. 441a) is amended by adding at the end the following new paragraph:

(9)

For purposes of this subsection, the national nomination convention account of any political committees established and maintained by a national political party is a separate account the funds of which may only be used to defray the costs of the national nominating convention of such party.

303.

Prohibition on use of soft money

Section 323 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441i) is amended by adding at the end the following new subsection:

(g)

National conventions

Any person described in subsection (a) or (e) shall not solicit, receive, direct, transfer, or spend any funds in connection with a presidential nominating convention of any political party, including funds from or for a host committee, civic committee, municipality, or any other person or entity spending funds in connection with such a convention, unless such funds—

(1)

are not in excess of the amounts permitted with respect to contributions to the political committee established and maintained by a national political party committee under section 315; and

(2)

are not from sources prohibited by this Act from making contributions in connection with an election for Federal office.

Other provisions

401.

Revisions to designation of income tax payments by individual taxpayers

(a)

Increase in amount designated

Section 6096(a) of the Internal Revenue Code of 1986 is amended—

(1)

in the first sentence, by striking $3 each place it appears and inserting $10; and

(2)

in the second sentence—

(A)

by striking $6 and inserting $20; and

(B)

by striking $3 and inserting $10.

(b)

Indexing

Section 6096 of such Code is amended by adding at the end the following new subsection:

(d)

Indexing of amount designated

(1)

In general

With respect to each taxable year after 2010, each amount referred to in subsection (a) shall be increased by the percent difference described in paragraph (2), except that if any such amount after such an increase is not a multiple of $1, such amount shall be rounded to the nearest multiple of $1.

(2)

Percent difference described

The percent difference described in this paragraph with respect to a taxable year is the percent difference determined under section 315(c)(1)(A) of the Federal Election Campaign Act of 1971 with respect to the calendar year during which the taxable year begins, except that the base year involved shall be 2009.

(c)

Ensuring tax preparation software does not provide automatic response to designation question

Section 6096 of such Code, as amended by subsection (b), is amended by adding at the end the following new subsection:

(e)

Ensuring tax preparation software does not provide automatic response to designation question

The Secretary shall promulgate regulations to ensure that electronic software used in the preparation or filing of individual income tax returns does not automatically accept or decline a designation of a payment under this section.

(d)

Public information program on designation

Section 6096 of such Code, as amended by subsections (b) and (c), is amended by adding at the end the following new subsection:

(f)

Public information program

(1)

In general

The Federal Election Commission shall conduct a program to inform and educate the public regarding the purposes of the Presidential Election Campaign Fund, the procedures for the designation of payments under this section, and the effect of such a designation on the income tax liability of taxpayers.

(2)

Use of funds for program

Amounts in the Presidential Election Campaign Fund shall be made available to the Federal Election Commission to carry out the program under this subsection, except that the amount made available for this purpose may not exceed $10,000,000 with respect to any Presidential election cycle. In this paragraph, a Presidential election cycle is the 4-year period beginning with January of the year following a Presidential election.

(e)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.

402.

Regulations with respect to best efforts for identifying persons making contributions

Not later than 6 months after the date of enactment of this Act, the Federal Election Commission shall promulgate regulations with respect to what constitutes best efforts under section 302(i) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(i)) for determining the identification of persons making contributions to political committees, including the identifications of persons making contributions over the Internet or by credit card. Such regulations shall include a requirement that in the case of contributions made by a credit card, the political committee shall ensure that the name on the credit card used to make the contribution matches the name of the person making the contribution.

403.

Prohibition on joint fundraising committees

(a)

In general

Section 302(e) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)) is amended by adding at the end the following new paragraph:

(6)

No authorized committee of a candidate may establish a joint fundraising committee with a political committee other than an authorized committee of a candidate.

(b)

Effective date

The amendments made by this section shall take effect on January 1, 2011.

404.

Disclosure of bundled contributions to presidential campaigns

(a)

In general

Paragraphs (1) through (3) of section 304(i) of the Federal Election Campaign Act of 1971 (2 U.S.C. 434(i)) are amended to read as follows:

(1)

In general

(A)

Disclosure of bundled contributions by lobbyists

Each committee described in paragraph (6) shall include in the first report required to be filed under this section after each covered period (as defined in paragraph (2)) a separate schedule setting forth the name, address, and employer of each person reasonably known by the committee to be a person described in paragraph (7) who provided 2 or more bundled contributions to the committee in an aggregate amount greater than the applicable threshold (as defined in paragraph (3)) during the covered period, and the aggregate amount of the bundled contributions provided by each such person during the covered period.

(B)

Disclosure of bundled contributions to presidential campaigns

Each committee which is an authorized committee of a candidate for the office of President or for nomination to such office shall include in the first report required to be filed under this section after each covered period (as defined in paragraph (2)) a separate schedule setting forth the name, address, and employer of each person who provided 2 or more bundled contributions to the committee in an aggregate amount greater than the applicable threshold (as defined in paragraph (3)) during the election cycle, and the aggregate amount of the bundled contributions provided by each such person during the covered period and such election cycle. Such schedule shall include a separate listing of the name, address, and employer of each person included on such schedule who is reasonably known by the committee to be a person described in paragraph (7), together with the aggregate amount of bundled contributions provided by such person during such period and such cycle.

(2)

Covered period

In this subsection, a covered period means—

(A)

with respect to a committee which is an authorized committee of a candidate for the office of President or for nomination to such office—

(i)

the 4-year election cycle ending with the date of the election for the office of the President; and

(ii)

any reporting period applicable to the committee under this section during which any person provided 2 or more bundled contributions to the committee; and

(B)

with respect to any other committee—

(i)

the period beginning January 1 and ending June 30 of each year;

(ii)

the period beginning July 1 and ending December 31 of each year; and

(iii)

any reporting period applicable to the committee under this section during which any person described in paragraph (7) provided 2 or more bundled contributions to the committee in an aggregate amount greater than the applicable threshold.

(3)

Applicable threshold

(A)

In general

In this subsection, the applicable threshold is—

(i)

$50,000 in the case of a committee which is an authorized committee of a candidate for the office of President or for nomination to such office; and

(ii)

$15,000 in the case of any other committee.

In determining whether the amount of bundled contributions provided to a committee by a person exceeds the applicable threshold, there shall be excluded any contribution made to the committee by the person or the person's spouse.

(B)

Indexing

In any calendar year after 2012, section 315(c)(1)(B) shall apply to each amount applicable under subparagraph (A) 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 amount applicable under subparagraph (A), the base period shall be 2011.

(b)

Conforming amendments

Subsection (i) of section 304 of such Act (2 U.S.C. 434) is amended—

(1)

in paragraph (5), by striking described in paragraph (7) each place it appears in subparagraphs (C) and (D);

(2)

in paragraph (6), by inserting (other than a candidate for the office of President or for nomination to such office) after candidate; and

(3)

in paragraph (8)(A)—

(A)

by striking , with respect to a committee described in paragraph (6) and a person described in paragraph (7), and inserting , with respect to a committee described in paragraph (6) or an authorized committee of a candidate for the office of President or for nomination to such office,;

(B)

by striking by the person in clause (i) thereof and inserting by any person; and

(C)

by striking the person each place it appears in clause (ii) and inserting such person.

(c)

Effective date

The amendments made by this section shall apply with respect to reports filed under section 304 of the Federal Election Campaign Act of 1971 after the date that is 30 days after the date of the enactment of this Act.

405.

Judicial review of actions related to campaign finance laws

(a)

In general

Title IV of the Federal Election Campaign Act of 1971 (2 U.S.C. 451 et sq.) is amended by inserting after section 406 the following new section:

407.

Judicial review

(a)

In general

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 intervenors 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 310 of the Federal Election Campaign Act of 1971 (2 U.S.C. 437h) is repealed.

(B)

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

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.

(C)

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

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.

(D)

Section 403 of the Bipartisan Campaign Finance Reform Act of 2002 (2 U.S.C. 437h note) is repealed.

(c)

Effective date

The amendments made by this section shall apply to actions brought after the date of the enactment of this Act.

Offsets

501.

Reforming irrigation subsidies

(a)

Definitions

Section 202 of the Reclamation Reform Act of 1982 (43 U.S.C. 390bb) is amended—

(1)

by redesignating paragraphs (7) through (11) as paragraphs (9) through (13), respectively;

(2)

in paragraph (6), by striking owned or operated under a lease which and inserting that is owned, leased, or operated by an individual or legal entity and that;

(3)

by inserting after paragraph (6) the following:

(7)

Legal entity

The term legal entity includes a corporation, association, partnership, trust, joint tenancy, or tenancy in common, or any other entity that owns, leases, or operates a farm operation for the benefit of more than 1 individual under any form of agreement or arrangement.

(8)

Operator

(A)

In general

The term operator—

(i)

means an individual or legal entity that operates a single farm operation on a parcel (or parcels) of land that is owned or leased by another person (or persons) under any form of agreement or arrangement (or agreements or arrangements); and

(ii)

if the individual or legal entity—

(I)

is an employee of an individual or legal entity, includes the individual or legal entity; or

(II)

is a legal entity that controls, is controlled by, or is under common control with another legal entity, includes each such other legal entity.

(B)

Operation of a farm operation

For the purposes of subparagraph (A), an individual or legal entity shall be considered to operate a farm operation if the individual or legal entity is the person that performs the greatest proportion of the decisionmaking for and supervision of the agricultural enterprise on land served with irrigation water.

; and

(4)

by adding at the end the following:

(14)

Single farm operation

(A)

In general

The term single farm operation means the total acreage of land served with irrigation water for which an individual or legal entity is the operator.

(B)

Rules for determining whether separate parcels are operated as a single farm operation

(i)

Equipment- and labor-sharing activities

The conduct of equipment- and labor-sharing activities on separate parcels of land by separate individuals or legal entities shall not by itself serve as a basis for concluding that the farming operations of the individuals or legal entities constitute a single farm operation.

(ii)

Performance of certain services

The performance by an individual or legal entity of an agricultural chemical application, pruning, or harvesting for a farm operation on a parcel of land shall not by itself serve as a basis for concluding that the farm operation on that parcel of land is part of a single farm operation operated by the individual or entity on other parcels of land.

(b)

Identification of owners, lessees, and operators and of single farm operations

The Reclamation Reform Act of 1982 is amended by inserting after section 202 (43 U.S.C. 390bb) the following:

202A.

Identification of owners, lessees, and operators and of single farm operations

(a)

In general

Subject to subsection (b), for each parcel of land to which irrigation water is delivered or proposed to be delivered, the Secretary shall identify a single individual or legal entity as the owner, lessee, or operator.

(b)

Shared decisionmaking and supervision

If the Secretary determines that no single individual or legal entity is the owner, lessee, or other individual that performs the greatest proportion of decisionmaking for and supervision of the agricultural enterprise on a parcel of land—

(1)

all individuals and legal entities that own, lease, or perform a proportion of decisionmaking and supervision that is equal as among themselves but greater than the proportion performed by any other individual or legal entity shall be considered jointly to be the owner, lessee, or operator; and

(2)

all parcels of land of which any such individual or legal entity is the owner, lessee, or operator shall be considered to be part of the single farm operation of the owner, lessee, or operator identified under paragraph (1).

(c)

Pricing

Section 205 of the Reclamation Reform Act of 1982 (43 U.S.C. 390ee) is amended by adding at the end the following:

(d)

Single farm operations generating more than $500,000 in gross farm income

(1)

In general

Notwithstanding subsections (a), (b), and (c), irrigation water may be delivered to the single farm operation of a qualified recipient or limited recipient at less than full cost to a number of acres that does not exceed the number of acres determined under paragraph (2) in the case of—

(A)

a qualified recipient that reports gross farm income from a single farm operation in excess of $500,000 for a taxable year; or

(B)

a limited recipient that received irrigation water on or before October 1, 1981, and that reports gross farm income from a single farm operation in excess of $500,000 for a taxable year.

(2)

Maximum number of acres to which irrigation water may be delivered at less than full cost

The number of acres determined under this paragraph shall be equal to the product obtained by multiplying—

(A)

the number of acres of the single farm operation; by

(B)

a fraction, the numerator of which is $500,000 and the denominator of which is the amount of gross farm income reported by the qualified recipient or limited recipient in the most recent taxable year.

(3)

Inflation adjustment

(A)

In general

Subject to subparagraph (D), the $500,000 amount under paragraphs (1) and (2) for any taxable year beginning in a calendar year after 2004 shall be equal to the product obtained by multiplying—

(i)

$500,000; by

(ii)

the inflation adjustment factor for the taxable year.

(B)

Inflation adjustment factor

(i)

In general

For purposes of subparagraph (A), the term inflation adjustment factor means, with respect to any calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for 2004.

(ii)

Publication

Not later than April 1 of any calendar year, the Secretary shall publish the inflation adjustment factor for the preceding calendar year.

(C)

GDP implicit price deflator

For purposes of subparagraph (B), the term GDP implicit price deflator means the first revision of the implicit price deflator for the gross domestic product as calculated and published by the Secretary of Commerce.

(D)

Rounding

If any increase determined under subparagraph (A) is not a multiple of $100, the increase shall be rounded to the next lowest multiple of $100.

(d)

Certification of compliance

Section 206 of the Reclamation Reform Act of 1982 (43 U.S.C. 390ff) is amended to read as follows:

206.

Certification of compliance

(a)

In general

As a condition to the receipt of irrigation water for land in a district that has a contract described in section 203, each owner, lessee, or operator in the district shall furnish the district, in a form prescribed by the Secretary, a certificate that the owner, lessee, or operator is in compliance with this title, including—

(1)

a statement of the number of acres owned, leased, or operated;

(2)

the terms of any lease or agreement pertaining to the operation of a farm operation; and

(3)

in the case of a lessee or operator, a certification that the rent or other fees paid reflect the reasonable value of the irrigation water to the productivity of the land.

(b)

Documentation

The Secretary may require a lessee or operator to submit for the examination of the Secretary—

(1)

a complete copy of any lease or other agreement executed by each of the parties to the lease or other agreement; and

(2)

a copy of the return of income tax imposed by chapter 1 of the Internal Revenue Code of 1986 for any taxable year in which the single farm operation of the lessee or operator received irrigation water at less than full cost.

(e)

Trusts

Section 214 of the Reclamation Reform Act of 1982 (43 U.S.C. 390nn) is repealed.

(f)

Administrative provisions

(1)

Penalties

Section 224(c) of the Reclamation Reform Act of 1982 (43 U.S.C. 390ww(c)) is amended—

(A)

by striking (c) The Secretary and inserting the following:

(c)

Regulations; data collection; penalties

(1)

Regulations; data collection

The Secretary

; and

(B)

by adding at the end the following:

(2)

Penalties

Notwithstanding any other provision of law, the Secretary shall establish appropriate and effective penalties for failure to comply with any provision of this Act or any regulation issued under this Act.

(2)

Interest

Section 224(i) of the Reclamation Reform Act of 1982 (43 U.S.C. 390ww(i)) is amended—

(A)

by striking When the Secretary and inserting the following:

(1)

In general

When the Secretary

; and

(B)

by adding at the end the following:

(2)

Interest rate

The interest rate applicable to underpayments under paragraph (1) shall be equal to the rate applicable to expenditures under section 202(3)(C).

(g)

Reporting

Section 228 of the Reclamation Reform Act of 1982 (43 U.S.C. 390zz) is amended by inserting operator or before contracting entity each place it appears.

(h)

Memorandum of understanding

The Reclamation Reform Act of 1982 is amended by inserting after section 228 (43 U.S.C. 390zz) the following:

228A.

Memorandum of understanding

The Secretary, the Secretary of the Treasury, and the Secretary of Agriculture shall enter into a memorandum of understanding or other appropriate instrument to permit the Secretary, notwithstanding section 6103 of the Internal Revenue Code of 1986, to have access to and use of available information collected or maintained by the Department of the Treasury and the Department of Agriculture that would aid enforcement of the ownership and pricing limitations of Federal reclamation law.

Severability and effective date

601.

Severability

If any provision of this Act or amendment made by this Act, or the application of a provision or amendment to any person or circumstance, is held to be unconstitutional, the remainder of this Act and amendments made by this Act, and the application of the provisions and amendment to any person or circumstance, shall not be affected by the holding.

602.

Effective date

Except as otherwise provided in this Act, the amendments made by this Act shall apply with respect to elections occurring after January 1, 2011.