financing of presidential nominating conventions

financing of presidential nominating conventions Sec. 406. (a) Chapter 95 of subtitle H of the Internal Revenue Code of 1954 (relating to the presidential election campaign fund) is amended by striking out section 9008 (relating to information on proposed expenses) and inserting in lieu thereof the following new section: “SEC. 9008. PAYMENTS FOR PRESIDENTIAL NOMINATING CONVENTIONS. “(a) Establishment of Accounts.— The Secretary shall maintain in the fund, in addition to any account which he maintains under section 9006(a), a separate account for the national committee of each major party and minor party. The Secretary shall deposit in each such account an amount equal to the amount which each such committee may receive under subsection (b). Such deposits shall be drawn from amounts designated by individuals under section 6096 and shall be made before any transfer is made to any account for any eligible candidate under section 9006 (a). “(b) Entitlement to Payments From the Fund.— “(1) Major parties.— Subject to the provisions of this section, the national committee of a major party shall be entitled to payments under paragraph (3), with respect to any presidential nominating convention, in amounts which, in the aggregate, shall not exceed $2,000,000. “(2) Minor parties.— Subject to the provisions of this section, the national committee of a minor party shall be entitled to payments under paragraph (3), with respect to any presidential nominating convention, in. amounts which, in the aggregate, shall not exceed an amount which bears the same ratio to the amount the national committee of a major party is entitled to receive under paragraph (1) as the number of popular votes received by the candidate for President of the minor party, as such candidate, in the preceding presidential election bears to the average number of popular votes received by the candidates for President of the United States of the major parties in the preceding presidential election. “(3) Payments.— Upon receipt of certification from the Commission under subsection (g), the Secretary shall make payments from the appropriate account maintained under subsection (a) to the national committee of a major party or minor party which elects to receive its entitlement under this subsection. Such payments shall be available for use by such committee in accordance with the provisions of subsection (c). “(4) Limitation.— Payments to the national committee of a major party or minor party under this subsection from the account designated for such committee shall be limited to the amounts in such account at the time of payment. 88 Stat. 1295 “(5) Adjustment of entitlements.— The entitlements established by this subsection shall be adjusted in the same manner as expenditure limitations established by section 608 (c) and section 608(f) of title 18, United States Code, are adjusted pursuant to the provisions of section 608(d) of such title. “(c) Use of Funds.— No part of any payment made under subsection (b) shall be used to defray the expenses of any candidate or delegate who is participating in any presidential nominating convention. Such payments shall be used only— “(1) to defray expenses incurred with respect to a presidential nominating convention (including the payment of deposits) by or on behalf of the national committee receiving such payments; or “(2) to repay loans the proceeds of which were used to defray such expenses, or otherwise to restore funds (other than contributions to defray such expenses received by such committee) used to defray such expenses. “(d) Limitation of Expenditures.— “(1) Major parties.— Except as provided by paragraph (3), the national committee of a major party may not make expenditures with respect to a presidential nominating convention which, in the aggregate, exceed the amount of payments to which such committee is entitled under subsection (b)(1). “(2) Minor parties.— Except as provided by paragraph (3), the national committee of a minor party may not make expenditures with respect to a presidential nominating convention which, in the aggregate, exceed the amount of the entitlement of the national committee of a major party under subsection (b) (1). “(3) Exception.— The Commission may authorize the national committee of a major party or minor party to make expenditures which, in the aggregate, exceed the limitation established by paragraph (1) or paragraph (2) of this subsection. Such authorization shall be based upon a determination by the Commission that, due to extraordinary and unforeseen circumstances, such expenditures are necessary to assure the effective operation of the presidential nominating convention by such committee. “(e) Availability of Payments.— The national committee of a major party or minor party may receive payments under subsection (b) (3) beginning on July 1 of the calendar year immediately preceding the calendar year in which a presidential nominating convention of the political party involved is held. “(f) Transfer to the Fund.— If, after the close of a presidential nominating convention and after the national committee of the political party involved has been paid the amount which it is entitled to receive under this section, there are moneys remaining in the account of such national committee, the Secretary shall transfer the moneys so remaining to the fund. “(g) Certification by Commission.— Any major party or minor party may file a statement with the Commission in such form and manner and at such times as it may require, designating the national committee of such party. Such statement shall include the information required by section 303(b) of the Federal Election Campaign Act of 1971, together with such additional information as the Commission may require. Upon receipt of a statement filed under the preceding sentences, the Commission promptly shall verify such statement according to such procedures and criteria as it may establish and shall certify to the Secretary for payment in full to any such committee of amounts to which such committee may be entitled under subsection (b). Such certifications shall be subject to an examination and audit which the Commission shall conduct no later than December 31 of the calen-88 Stat. 1296dar year in which the presidential nominating convention involved is held. “(h) Repayments.— The Commission shall have the same authority to require repayments from the national committee of a major party or a minor party as it has with respect to repayments from any eligible candidate under section 9007(b). The provisions of section 9007(c) and section 9007(d) shall apply with respect to any repayment required by the Commission under this subsection.”. (b) (1) Section 9009(a) of such Code (relating to reports) is amended by striking out “and” in paragraph (2) thereof; by striking out the period at the end of paragraph (3) thereof and inserting in lieu thereof “ ; and”; and by adding at the end thereof the following new paragraphs: “(4) the expenses incurred by the national committee of a major party or minor party with respect to a presidential nominating convention; “(5) the amounts certified by it under section 9008(g) for payment to each such committee; and “(6) the amount of payments, if any, required from such committees under section 9008(h), and the reasons for each such payment.”. (2) The heading for section 9012(a) of such Code (relating to excess campaign expenses) is amended by striking out “Campaign”. (3) Section 9012(a) (1) by such Code (relating to excess expenses) is amended by adding at the end thereof the following new sentence: “It shall be unlawful for the national committee of a major party or minor party knowingly and willfully to incur expenses with respect to a presidential nominating convention in excess of the expenditure limitation applicable with respect to such committee under section 9008(d), unless the incurring of such expenses is authorized by the Commission under section 9008 (d) (3).”. (4) Section 9012(c) of such Code (relating to unlawful use of payments) is amended by redesignating paragraph (2) as paragraph (3) and by inserting immediately after paragraph (1) the following new paragraph: “(2) It shall be unlawful for the national committee of a major party or minor party which receives any payment under section 9008(b) (3) to use, or authorize the use of, such payment for any purpose other than a purpose authorized by section 9008(c).”. (5) Section 9012(e)(1) of such Code (relating to kickbacks and illegal payments) is amended by adding at the end thereof the following new sentence: “It shall be unlawful for the national committee of a major party or minor party knowingly and willfully to give or accept any kickback or any illegal payment in connection with any expense incurred by such committee with respect to a presidential nominating convention.”. (6) Section 9012(e)(3) of such Code (relating to kickbacks and illegal payments) is amended by inserting immediately after “their authorized committees” the following: “, or in connection with any expense incurred by the national committee of a major party or minor party with respect to a presidential nominating convention.”. (c) The table of sections for chapter 95 of subtitle H of such Code (relating to the presidential election campaign fund) is amended by striking out the item relating to section 9008 and inserting in lieu thereof the following new item: “Sec. 9008. Payments for presidential nominating conventions.”. (d) Section 276 of such Code (relating to certain indirect contributions to political parties) is amended by striking out subsection (c) and by redesignating subsection (d) as subsection (c).