article: SECTION 1. DENIAL OF CERTAIN TAX BENEFITS. (a) General Rule.--Section 527 of the Internal Revenue Code of 1986 (relating to political organizations) is amended by adding at the end thereof the following new subsection: ``(i) Special Rules for Certain Campaign Committees.-- ``(1) In general.--In the case of any political organization to which this subsection applies for any taxable year-- ``(A) all excess campaign contributions received by such organization during such taxable year shall be included in gross income and the exemptions provided by subsection (c)(1) for exempt function income shall not apply to such contributions, and ``(B) the provisions of subsection (h) shall not apply to such organization for such taxable year. ``(2) Organizations to which subsection applies.--This subsection shall apply to any political organization for any taxable year if-- ``(A) such organization is a campaign committee of a candidate for election as a Member of the House of Representatives or as a Delegate or Resident Commissioner to the House of Representatives, and ``(B) the contribution limitations of paragraph (3) are not satisfied by such candidate-- ``(i) in the case of the first taxable year beginning in an election cycle, for the portion of such election cycle ending with the close of the taxable year, or ``(ii) in the case of the taxable year in which such election cycle ends, for the entire election cycle. ``(3) Contribution limitations.--The contribution limitations of this paragraph are satisfied by any candidate for any election cycle (or portion thereof) if-- ``(A) the sum of the following amounts does not exceed $600,000: ``(i) the amount of cash and the fair market value of other property held by campaign committees of such candidate as of the beginning of such election cycle, plus ``(ii) the aggregate amount of political contributions accepted by such candidate or by such candidate's campaign committees during such election cycle (or portion thereof), and ``(B) the aggregate amount of political contributions from multicandidate political committees accepted by such candidate or by such candidate's campaign committees during such election cycle (or portion thereof) does not exceed $300,000. ``(4) Excess campaign contributions.-- ``(A) In general.--For purposes of this subsection, the term `excess campaign contributions' means the amount of contributions received by the political organization during the taxable year to the extent such contributions exceed the amount permitted under the contribution limitations of paragraph (3). ``(B) Special rule.--For purposes of this subtitle, contributions received during the portion of any election cycle before the first taxable year beginning in such cycle shall be treated as received in such first taxable year. ``(5) Election cycle.--For purposes of this subsection, the term `election cycle' means the period beginning with the day after the date of a general election for the House of Representatives and ending with the date of the next general election for the House of Representatives. ``(6) Multicandidate political committee.--The term `multicandidate political committee' has the meaning given such term by section 315(a)(4) of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a(a)(4)).'' (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 2. DENIAL OF LOWEST UNIT CHARGE FOR CAMPAIGN ADS. Section 315(b) of the Communications Act of 1934 (47 U.S.C. 315(b)) is amended by adding at the end the following new sentence: ``The limitations on charges contained in this subsection shall not apply in the case of a candidate for election as a Member of, or Delegate or Resident Commissioner to, the United States House of Representatives unless such candidate certifies, at the time of entering into a contract for the use of such broadcasting station, that such candidate has not obtained any excess campaign contributions for the current election cycle, as determined under section 527(i)(4) of the Internal Revenue Code of 1986.''. SEC. 3. REDUCED THIRD-CLASS MAILING RATES. (a) In General.--Section 3626(e) of title 39, United States Code, is amended-- (1) in paragraph (2)(A)-- (A) by striking ``and the National'' and inserting ``the National''; and (B) by striking ``Committee;'' and inserting ``Committee, and, subject to paragraph (3), a campaign committee of a candidate for the House of Representatives;''; (2) in paragraph (2)(B), by striking ``and'' after the semicolon; (3) in paragraph (2)(C), by striking the period and inserting ``; and''; (4) by adding after paragraph (2)(C) the following: ``(D) the term `candidate for the House of Representatives' means a candidate for election as a Member of, or Delegate or Resident Commissioner to, the House of Representatives.''; and (5) by adding after paragraph (2) the following: ``(3) The rates under this subsection shall not be available to a campaign committee of a candidate for the House of Representatives unless such committee certifies, at such time and in such manner as the Postal Service by regulation requires, that such candidate has not obtained any excess campaign contributions for the current election cycle, as determined under section 527(i)(4) of the Internal Revenue Code of 1986.''. (b) Sense of the Congress.--It is the sense of the Congress that any additional costs incurred by the United Postal Service in connection with providing reduced rates of postage pursuant to the amendments made by subsection (a) should be funded out of any revenues attributable to the amendment made by section 1.
summary: Amends the Internal Revenue Code with respect to political organizations to establish a campaign contribution limitation scheme applicable to the campaign committee of a candidate for election to the House of Representatives. Provides that excess campaign contributions received by such an organization shall be included in its gross income. Amends the Communications Act of 1934 and Federal postal service law to condition the lowest unit charge for campaign ads upon a candidate's certification of compliance with such contribution limitation. Expresses the sense of the Congress that additional costs incurred by the United Postal Service in providing reduced rates of postage pursuant to this Act should be funded out of revenues attributable to this Act.