110th CONGRESS
1st Session

H. R. 776

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

IN THE HOUSE OF REPRESENTATIVES

January 31, 2007

Mr. MEEHAN (for himself, Mr. SHAYS, Mr. PRICE of North Carolina, Mr. VAN HOLLEN, Mr. EMANUEL, and Mr. FRANK of Massachusetts) introduced the following bill; which was referred to the Committee on House Administration, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

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A BILL

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

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Presidential Funding Act of 2007'.

(b) Table of Contents- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Revisions to system of Presidential primary matching payments.

Sec. 3. Requiring participation in primary payment system as condition of eligibility for general election payments.

Sec. 4. Revisions to expenditure limits.

Sec. 5. Additional payments and increased expenditure limits for candidates participating in public financing who face certain nonparticipating opponents.

Sec. 6. Establishment of uniform date for release of payments from Presidential Election Campaign Fund to eligible candidates.

Sec. 7. Revisions to designation of income tax payments by individual taxpayers.

Sec. 8. Amounts in Presidential Election Campaign Fund.

Sec. 9. Regulation of convention financing.

Sec. 10. Disclosure of bundled contributions.

Sec. 11. Effective date.

SEC. 2. REVISIONS TO SYSTEM OF PRESIDENTIAL PRIMARY MATCHING PAYMENTS.

(a) Increase in Matching Payments-

(1) IN GENERAL- Section 9034(a) of the Internal Revenue Code of 1986 is amended--

(A) by striking `an amount equal to the amount' and inserting `an amount equal to 400 percent of the amount'; and

(B) by striking `$250' and inserting `$200'.

(2) ADDITIONAL MATCHING PAYMENTS FOR CANDIDATES AFTER MARCH 31 OF THE ELECTION YEAR- Section 9034(b) of such Code is amended to read as follows:

`(b) Additional Payments for Candidates After March 31 of the Election Year- In addition to any payment under subsection (a), an individual who is a candidate after March 31 of the calendar year in which the presidential election is held and who is eligible to receive payments under section 9033 shall be entitled to payments under section 9037 in an amount equal to the amount of each contribution received by such individual after March 31 of the calendar year in which such presidential election is held, disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person after such date exceeds $200.'.

(3) CONFORMING AMENDMENTS- Section 9034 of such Code, as amended by paragraph (2), is amended--

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

(B) by inserting after subsection (b) the following new subsection:

`(c) Contribution Defined- For purposes of this section and section 9033(b), the term `contribution' means a gift of money made by a written instrument which identifies the person 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).'.

(b) Eligibility Requirements-

(1) AMOUNT OF AGGREGATE CONTRIBUTIONS PER STATE- Section 9033(b)(3) of such Code is amended by striking `$5,000' and inserting `$25,000'.

(2) AMOUNT OF INDIVIDUAL CONTRIBUTIONS- Section 9033(b)(4) of such Code is amended by striking `$250' and inserting `$200'

(3) PARTICIPATION IN SYSTEM FOR PAYMENTS FOR GENERAL ELECTION- Section 9033(b) of such Code is amended--

(A) by striking `and' at the end of paragraph (3);

(B) by striking the period at the end of paragraph (4) and inserting `, and'; and

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

`(5) 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, including the requirement that the candidate and the candidate's authorized committees will not incur qualified campaign expenses in excess of the aggregate payments to which they will be entitled under section 9004.'.

(c) Period of Availability of Payments- Section 9032(6) of such Code is amended by striking `beginning with the beginning of the calendar year' and inserting `beginning with the date that is 6 months prior to the date of the earliest primary election held in any State during the calendar year'.

SEC. 3. REQUIRING PARTICIPATION IN PRIMARY PAYMENT SYSTEM AS CONDITION OF ELIGIBILITY FOR GENERAL ELECTION PAYMENTS.

(a) Major Party Candidates- Section 9003(b) of the Internal Revenue Code of 1986 is amended--

(1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3); and

(2) by inserting before paragraph (2) (as so redesignated) the following new paragraph:

`(1) the candidate received payments under chapter 96 for the campaign for nomination;'.

(b) Minor Party Candidates- Section 9003(c) of such Code is amended--

(1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3); and

(2) by inserting before paragraph (2) (as so redesignated) the following new paragraph:

`(1) the candidate received payments under chapter 96 for the campaign for nomination;'.

SEC. 4. REVISIONS TO EXPENDITURE LIMITS.

(a) Increase in Expenditure Limits for Participating Candidates; Elimination of State-Specific Limits-

(1) IN GENERAL- Section 315(b)(1) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(b)(1)) is amended by striking `may make expenditures in excess of' and all that follows and inserting `may make expenditures--

`(A) with respect to a campaign for nomination for election to such office--

`(i) in excess of $100,000,000 before April 1 of the calendar year in which the presidential election is held, and

`(ii) in excess of $150,000,000 before the date described in section 9006(b) of the Internal Revenue Code of 1986; and

`(B) with respect to a campaign for election to such office, in excess of $100,000,000.'.

(2) CLERICAL CORRECTION- Section 9004(a)(1) of the Internal Revenue Code of 1986 is amended by striking `section 320(b)(1)(B) of the Federal Election Campaign Act of 1971' and inserting `section 315(b)(1)(B) of the Federal Election Campaign Act of 1971'.

(b) Increase in Limit on Coordinated Party Expenditures- 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 $25,000,000.

`(B) Notwithstanding the limitation under subparagraph (A), during the period beginning on April 1 of the year in which a presidential election is held and ending on the date described in section 9006(b) of the Internal Revenue Code of 1986, the national committee of a political party may make additional expenditures in connection with the general election campaign of a candidate for President of the United States who is affiliated with such party in an amount not to exceed $25,000,000.

`(C)(i) Notwithstanding subparagraph (B) or the limitation under subparagraph (A), if any nonparticipating primary candidate (within the meaning of subsection (b)(3)) affiliated with the national committee of a political party receives contributions or makes expenditures with respect to such candidate's campaign in an aggregate amount greater than 120 percent of the expenditure limitation in effect under subsection (b)(1)(A)(ii), then during the period described in clause (ii), the national committee of any other political party may make expenditures in connection with the general election campaign of a candidate for President of the United States who is affiliated with such other party without limitation.

`(ii) The period described in this clause is the period--

`(I) beginning on the later of April 1 of the year in which a presidential election is held or the date which such nonparticipating primary candidate first receives contributions or makes expenditures in the aggregate amount described in clause (i), and

`(II) ending on the earlier of the date such nonparticipating primary candidate ceases to be a candidate for nomination to the office of President of the United States and is not a candidate for such office or the date described in section 9006(b) of the Internal Revenue Code of 1986.

`(iii) If the nonparticipating primary candidate described in clause (i) ceases to be a candidate for nomination to the office of President of the United States and is not a candidate for such office, clause (i) shall not apply and the limitations under subparagraphs (A) and (B) shall apply. It shall not be considered to be a violation of this Act if the application of the preceding sentence results in the national committee of a political party violating the limitations under subparagraphs (A) and (B) solely by reason of expenditures made by such national committee during the period which clause (i) applied.

`(D) 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.

`(E) 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.'.

(c) 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)) is amended--

(A) in subparagraph (B), by striking `(b), (d),' and inserting `(d)(3)'; and

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

`(D) In any calendar year after 2008--

`(i) a limitation established by subsection (b) or (d)(2) shall be increased by the percent difference determined under subparagraph (A);

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

`(iii) if any 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)) is amended--

(A) in clause (i), by striking `subsections (b) and (d)' and inserting `subsection (d)(3)';

(B) in clause (i), by striking `and' at the end;

(C) in clause (ii), by striking the period at the end and inserting `; and'; and

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

`(iii) for purposes of subsection (b) and (d)(2), calendar year 2007.'.

(d) Repeal of Exclusion of Fundraising Costs From Treatment as Expenditures- Section 301(9)(B)(vi) of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(9)(B)(vi)) is amended by striking `in excess of an amount equal to 20 percent of the expenditure limitation applicable to such candidate under section 315(b)' and inserting the following: `who is seeking nomination for election or election to the office of President or Vice President of the United States'.

SEC. 5. ADDITIONAL PAYMENTS AND INCREASED EXPENDITURE LIMITS FOR CANDIDATES PARTICIPATING IN PUBLIC FINANCING WHO FACE CERTAIN NONPARTICIPATING OPPONENTS.

(a) Candidates in Primary Elections-

(1) ADDITIONAL PAYMENTS-

(A) IN GENERAL- Section 9034 of the Internal Revenue Code of 1986, as amended by section 2, is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

`(c) Additional Payments for Candidates Facing Nonparticipating Opponents-

`(1) IN GENERAL- In addition to any payments provided under subsections (a) and (b), each candidate described in paragraph (2) shall be entitled to--

`(A) a payment under section 9037 in an amount equal to the amount of each contribution received by such candidate on or after the date that is 6 months prior to the date of the earliest primary election held in any State during the calendar year of the presidential election with respect to which such candidate is seeking nomination and before the qualifying date, disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person exceeds $200, and

`(B) payments under section 9037 in an amount equal to the amount of each contribution received by such candidate on or after the qualifying date, disregarding any amount of contributions from any person to the extent that the total of the amounts contributed by such person exceeds $200.

`(2) CANDIDATES TO WHOM THIS SUBSECTION APPLIES- A candidate is described in this paragraph if such candidate--

`(A) is eligible to receive payments under section 9033, and

`(B) is opposed by a nonparticipating primary candidate of the same political party who receives contributions or makes expenditures with respect to the campaign--

`(i) before April 1 of the year in which the presidential election is held, in an aggregate amount greater than 120 percent of the expenditure limitation under section 315(b)(1)(A)(i) of the Federal Election Campaign Act of 1971, or

`(ii) before the date described in section 9006(b), in an aggregate amount greater than 120 percent of the expenditure limitation under section 315(b)(1)(A)(ii) of such Act.

`(3) NONPARTICIPATING PRIMARY CANDIDATE- In this subsection, the term `nonparticipating primary candidate' means a candidate for nomination for election for the office of President who is not eligible under section 9033 to receive payments from the Secretary under this chapter.

`(4) QUALIFYING DATE- In this subsection, the term `qualifying date' means the first date on which the contributions received or expenditures made by the nonparticipating primary candidate described in paragraph (2)(B) exceed the amount described under either clause (i) or clause (ii) of such paragraph.'.

(B) CONFORMING AMENDMENT- Section 9034(b)(2) of such Code, as amended by section 2, is amended by striking `subsection (a)' and inserting `subsections (a) and (c)'.

(2) INCREASE IN EXPENDITURE LIMIT- Section 315(b) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(b)) is amended by adding at the end the following new paragraph:

`(3)(A) In the case of an eligible candidate, each of the limitations under clause (i) and (ii) of paragraph (1)(A) shall be increased--

`(i) by $50,000,000, if any nonparticipating primary candidate of the same political party as such candidate receives contributions or makes expenditures with respect to the campaign in an aggregate amount greater than 120 percent of the expenditure limitation applicable to eligible candidates under clause (i) or (ii) of paragraph (1)(A) (before the application of this clause), and

`(ii) by $100,000,000, if such nonparticipating primary candidate receives contributions or makes expenditures with respect to the campaign in an aggregate amount greater than 120 percent of the expenditure limitation applicable to eligible candidates under clause (i) or (ii) of paragraph (1)(A) after the application of clause (i).

`(B) Each dollar amount under subparagraph (A) shall be considered a limitation under this subsection for purposes of subsection (c).

`(C) In this paragraph, the term `eligible candidate' means, with respect to any period, a candidate--

`(i) who is eligible to receive payments under section 9033 of the Internal Revenue Code of 1986;

`(ii) who is opposed by a nonparticipating primary candidate; and

`(iii) with respect to whom the Commission has given notice under section 304(i)(1)(B)(i).

`(D) In this paragraph, the term `nonparticipating primary candidate' means, with respect to any eligible candidate, a candidate for nomination for election for the office of President who is not eligible under section 9033 of the Internal Revenue Code of 1986 to receive payments from the Secretary of the Treasury under chapter 96 of such Code.'.

(b) Candidates in General Elections-

(1) ADDITIONAL PAYMENTS-

(A) IN GENERAL- Section 9004(a)(1) of the Internal Revenue Code of 1986 is amended--

(i) by striking `(1) The eligible candidates' and inserting `(1)(A) Except as provided in subparagraph (B), the eligible candidates'; and

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

`(B) In addition to the payments described in subparagraph (A), each eligible candidate of a major party in a presidential election with an opponent in the election who is not eligible to receive payments under section 9006 and who receives contributions or makes expenditures with respect to the primary and general elections in an aggregate amount greater than 120 percent of the combined expenditure limitations applicable to eligible candidates under section 315(b)(1) of the Federal Election Campaign Act of 1971 shall be entitled to an equal payment under section 9006 in an amount equal to 100 percent of the expenditure limitation applicable under such section with respect to a campaign for election to the office of President.'.

(B) SPECIAL RULE FOR MINOR PARTY CANDIDATES- Section 9004(a)(2)(A) of such Code is amended--

(i) by striking `(A) The eligible candidates' and inserting `(A)(i) Except as provided in clause (ii), the eligible candidates'; and

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

`(ii) In addition to the payments described in clause (i), each eligible candidate of a minor party in a presidential election with an opponent in the election who is not eligible to receive payments under section 9006 and who receives contributions or makes expenditures with respect to the primary and general elections in an aggregate amount greater than 120 percent of the combined expenditure limitations applicable to eligible candidates under section 315(b)(1) of the Federal Election Campaign Act of 1971 shall be entitled to an equal payment under section 9006 in an amount equal to 100 percent of the payment to which such candidate is entitled under clause (i).'.

(2) EXCLUSION OF ADDITIONAL PAYMENT FROM DETERMINATION OF EXPENDITURE LIMITS- Section 315(b) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(b)), as amended by subsection (a), is amended by adding at the end the following new paragraph:

`(4) In the case of a candidate who is eligible to receive payments under section 9004(a)(1)(B) or 9004(a)(2)(A)(ii) of the Internal Revenue Code of 1986, the limitation under paragraph (1)(B) shall be increased by the amount of such payments received by the candidate.'.

(c) Process for Determination of Eligibility for Additional Payment and Increased Expenditure Limits- Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 434) is amended by adding at the end the following new subsection

`(i) Reporting and Certification for Additional Public Financing Payments for Candidates-

`(1) PRIMARY CANDIDATES-

`(A) NOTIFICATION OF EXPENDITURES BY INELIGIBLE CANDIDATES-

`(i) EXPENDITURES IN EXCESS OF 120 PERCENT OF LIMIT- If a candidate for a nomination for election for the office of President who is not eligible to receive payments under section 9033 of the Internal Revenue Code of 1986 receives contributions or makes expenditures with respect to the primary election in an aggregate amount greater than 120 percent of the expenditure limitation applicable to eligible candidates under clause (i) or (ii) of section 315(b)(1)(A), the candidate shall notify the Commission in writing that the candidate has received aggregate contributions or made aggregate expenditures in such an amount not later than 24 hours after first receiving aggregate contributions or making aggregate expenditures in such an amount.

`(ii) EXPENDITURES IN EXCESS OF 120 PERCENT OF INCREASED LIMIT- If a candidate for a nomination for election for the office of President who is not eligible to receive payments under section 9033 of the Internal Revenue Code of 1986 receives contributions or makes expenditures with respect to the primary election in an aggregate amount greater than 120 percent of the expenditure limitation applicable to eligible candidates under section 315(b) after the application of paragraph (3)(A)(i) thereof, the candidate shall notify the Commission in writing that the candidate has received aggregate contributions or made aggregate expenditures in such an amount not later than 24 hours after first receiving aggregate contributions or making aggregate expenditures in such an amount.

`(B) CERTIFICATION- Not later than 24 hours after receiving any written notice under subparagraph (A) from a candidate, the Commission shall--

`(i) certify to the Secretary of the Treasury that opponents of the candidate are eligible for additional payments under section 9034(c) of the Internal Revenue Code of 1986;

`(ii) notify each opponent of the candidate who is eligible to receive payments under section 9033 of the Internal Revenue Code of 1986 of the amount of the increased limitation on expenditures which applies pursuant to section 315(b)(3); and

`(iii) in the case of a notice under subparagraph (A)(i), notify the national committee of each political party (other than the political party with which the candidate is affiliated) of the inapplicability of expenditure limits under section 315(d)(2) pursuant to subparagraph (C) thereof.

`(2) GENERAL ELECTION CANDIDATES-

`(A) NOTIFICATION OF EXPENDITURES BY INELIGIBLE CANDIDATES- If a candidate in a presidential election who is not eligible to receive payments under section 9006 of the Internal Revenue Code of 1986 receives contributions or makes expenditures with respect to the primary and general elections in an aggregate amount greater than 120 percent of the combined expenditure limitations applicable to eligible candidates under section 315(b)(1), the candidate shall notify the Commission in writing that the candidate has received aggregate contributions or made aggregate expenditures in such an amount not later than 24 hours after first receiving aggregate contributions or making aggregate expenditures in such an amount.

`(B) CERTIFICATION- Not later than 24 hours after receiving a written notice under subparagraph (A), the Commission shall certify to the Secretary of the Treasury for payment to any eligible candidate who is entitled to an additional payment under paragraph (1)(B) or (2)(A)(ii) of section 9004(a) of the Internal Revenue Code of 1986 that the candidate is entitled to payment in full of the additional payment under such section.'.

SEC. 6. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE OF PAYMENTS FROM PRESIDENTIAL ELECTION CAMPAIGN FUND TO ELIGIBLE CANDIDATES.

(a) In General- The first sentence of section 9006(b) of the Internal Revenue Code of 1986 is amended to read as follows: `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, on the last Friday occurring before the first Monday in September, pay to such candidates of the fund the amount certified by the Commission.'.

(b) Conforming Amendment- The first sentence of section 9006(c) of such Code is amended by striking `the time of a certification by the Comptroller General under section 9005 for payment' and inserting `the time of making a payment under subsection (b)'.

SEC. 7. 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 2008, 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 2008.'.

(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.

SEC. 8. 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 such Code 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.

SEC. 9. REGULATION OF CONVENTION FINANCING.

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-

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

`(A) 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

`(B) are not from a sources prohibited by this Act from making contributions in connection with an election for Federal office.

`(2) EXCEPTION- Paragraph (1) shall not apply to--

`(A) payments by a Federal, State, or local government if the funds used for the payments are from the general public tax revenues of such government and are not derived from donations made to a State or local government for purposes of any convention; and

`(B) payments by any person for the purpose of promoting the suitability of a city as a convention site in advance of its selection, welcoming convention attendees to the city, or providing shopping or entertainment guides to convention attendees.'.

SEC. 10. DISCLOSURE OF BUNDLED CONTRIBUTIONS.

(a) In General- Section 304(b) of the Federal Election Campaign Act of 1971 (2 U.S.C. 434(b)) is amended--

(1) by striking `and' at the end of paragraph (7);

(2) by striking the period at the end of paragraph (8) and inserting `; and'; and

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

`(9) in the case of an authorized committee of a candidate for President, the name, address, occupation, and employer of each person who makes a bundled contribution, and the aggregate amount of the bundled contributions made by such person during the reporting period.'.

(b) Bundled Contribution- Section 301 of such Act (2 U.S.C. 431) is amended by adding at the end the following new paragraph:

`(27) BUNDLED CONTRIBUTION- The term `bundled contribution' means a series of contributions that are, in the aggregate, $10,000 or more and--

`(A) are transferred to the candidate or the authorized committee of the candidate by one person; or

`(B) include a written or oral notification that the contribution was solicited, arranged, or directed by a person other than the donor.'.

SEC. 11. 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, 2009.

END