[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4865 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4865

   To allow taxpayers to designate contributions to charity on their 
 return of tax and to establish the Checkoff for Charity Commission to 
  ensure that such contributions are paid to the designated charities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 20, 1998

 Mr. Engel (for himself, Mr. Hall of Texas, Mr. Manton, Mr. Towns, Ms. 
    Furse, Mr. Rodriguez, and Mr. Lewis of Georgia) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
   and in addition to the Committee on Commerce, 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

_______________________________________________________________________

                                 A BILL


 
   To allow taxpayers to designate contributions to charity on their 
 return of tax and to establish the Checkoff for Charity Commission to 
  ensure that such contributions are paid to the designated charities.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Checkoff for Charity Act of 1998''.

                     TITLE I--CHECKOFF FOR CHARITY

SEC. 101. DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR CHARITY.

    (a) In General.--Subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

  ``PART IX--DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR CHARITY

                              ``Sec. 6097. Designation.

``SEC. 6097. DESIGNATION.

    ``(a) In General.--In the case of an individual, with respect to 
each taxpayer's return for the taxable year of the tax imposed by 
chapter 1, such taxpayer may designate that--
            ``(1) a specified portion (but not less than $1) of any 
        overpayment of tax for such taxable year, and
            ``(2) any cash contribution which the taxpayer includes 
        with such return,
shall be paid to an eligible organization, or for such use as is 
otherwise provided, under title II of the Checkoff for Charity Act of 
1998.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year only at the 
time of filing the return of the tax imposed by chapter 1 for such 
taxable year. Such designation shall be made in such manner as the 
Secretary prescribes by regulations except that such designation shall 
be made either on the first page of the return or on the page bearing 
the taxpayer's signature.
    ``(c) Overpayments Treated as Refunded.--For purposes of this 
title, any portion of an overpayment of tax designated under subsection 
(a) shall be treated as being refunded to the taxpayer as of the last 
date prescribed for filing the return of tax imposed by chapter 1 
(determined without regard to extensions) or, if later, the date the 
return is filed.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 61 of such Code is amended by adding at the end thereof the 
following new item:

                              ``Part IX. Designation of overpayments 
                                        and contributions for 
                                        charity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SEC. 102. CHECKOFF FOR CHARITIES TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end the following new section:

``SEC. 9511. CHECKOFF FOR CHARITIES TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Checkoff for 
Charities Trust Fund', consisting of such amounts as may be 
appropriated or credited to the Checkoff for Charities Trust Fund as 
provided in this section or section 9602(b).
    ``(b) Transfer to Checkoff for Charities Trust Fund of Amounts 
Designated.--There is hereby appropriated to the Checkoff for Charities 
Trust Fund amounts equivalent to the amounts designated under section 
6097 and received in the Treasury.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--The Secretary shall pay, not less often 
        than quarterly, to the Checkoff for Charities Commission from 
        the Checkoff for Charities Trust Fund an amount equal to the 
        amount in such Fund as of the time of such payment less any 
        administrative expenses of the Secretary which may be paid 
        under paragraph (2). Amounts paid under this subsection shall 
        be available only as provided in section 202 of the Checkoff 
        for Charity Act of 1998.
            ``(2) Administrative expenses.--Amounts in the Checkoff for 
        Charities Trust Fund shall be available to pay the 
        administrative expenses of the Secretary of the Treasury 
        directly allocable to--
                    ``(A) modifying the individual income tax return 
                forms to carry out section 6097,
                    ``(B) carrying out this chapter with respect to 
                such Fund, and
                    ``(C) processing amounts received under section 
                6097 and transferring such amounts to such Fund.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end the following new item:

                              ``Sec. 9511. Checkoff for Charities Trust 
                                        Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

               TITLE II--CHECKOFF FOR CHARITY COMMISSION

SEC. 201. ESTABLISHMENT.

    There is established in the Department of Commerce a commission to 
be known as the ``Checkoff for Charity Commission'' (hereafter in this 
title referred to as the ``Commission'').

SEC. 202. DUTIES.

    (a) In General.--The Commission, in consultation with the Secretary 
of the Treasury, shall make arrangements for voluntary charitable, 
health, and welfare agencies that provide or support direct health and 
welfare services to individuals or their families to solicit 
contributions through designations made on returns of individual income 
tax. Such arrangements shall--
            (1) to the extent practicable, be similar to arrangements 
        made by the Office of Personnel Management with respect to the 
        annual Combined Federal Campaign; and
            (2) be limited to the types of organizations specified in 
        Executive Order 12353 (March 23, 1982), as amended by Executive 
        Order 12404 (February 10, 1983).
    (b) Amounts Designated For Specific Organizations.--The Commission 
shall ensure that amounts designated on a return of tax for a specific 
organization are paid to that organization not later than 90 days after 
the date on which the Commission receives such designation.
    (c) Amounts Not Designated For Specific Organizations.--
            (1) In general.--In the case of amounts designated as a 
        contribution on a return of tax but not designated for a 
        specific organization the Commission--
                    (A) may retain and use not more than one percent of 
                such amounts to carry out this Act, and
                    (B) from the excess of the aggregate of such 
                amounts for a year over the amount retained under 
                paragraph (1), shall determine which of the 
                organizations eligible to receive designations for a 
                year under subsection (a) will receive all or a portion 
                of such contribution.
            (2) Criteria for selecting organizations.--In carrying out 
        paragraph (1)(B), the Commission shall use the criteria set 
        forth in Executive Order 12353 (March 23, 1982), as amended by 
        Executive Order 12404 (February 10, 1983).

SEC. 203. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be composed of 15 
members appointed by the President from individuals who are not 
officers or employees of any organization that receives funding 
pursuant to this Act. Members on the Commission shall be broadly 
representative of the ethnic, religious, majority, and minority groups 
comprising the United States.
    (b) Waiver of Limitation on Executive Schedule Positions.--
Appointments may be made under this section without regard to section 
5311(b) of title 5, United States Code.
    (c) Political Affiliation.--Not more than 8 members appointed may 
be of the same political party.
    (d) Terms.--
            (1) In general.--Each member shall be appointed for a term 
        of six years, except as provided in paragraphs (2) and (3).
            (2) Terms of initial appointees.--As designated by the 
        President at the time of appointment, of the members first 
        appointed--
                    (A) five shall be appointed for terms of two years;
                    (B) five shall be appointed for terms of four 
                years; and
                    (C) five shall be appointed for terms of six years.
            (3) Vacancies.--Any member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of that term. A member may serve after the 
        expiration of that member's term until a successor has taken 
        office.
    (e) Basic Pay.--
            (1) Rates of pay.--Except as provided in paragraph (2), 
        members shall serve without pay.
            (2) Prohibition of compensation of federal employees.--
        Members of the Commission who are full-time officers or 
        employees of the United States may not receive additional pay, 
        allowances, or benefits by reason of their service on the 
        Commission.
    (f) Travel Expenses.--Each member shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with sections 
5702 and 5703 of title 5, United States Code.
    (g) Quorum.--Eight members of the Commission shall constitute a 
quorum but a lesser number may hold hearings.
    (h) Chairman; Vice Chairman.--The Chairman and Vice Chairman of the 
Commission shall be designated by the President at the time of the 
appointment. The term of office of the Chairman shall be three years.
    (i) Meetings.--The Commission shall meet at the call of the 
Chairman or a majority of its members.

SEC. 204. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

    (a) Director.--The Commission shall, without regard to section 
5311(b) of title 5, United States Code, have a Director who shall be 
appointed by Commission. The Director shall be paid at a rate not to 
exceed the rate of basic pay payable for level V of the Executive 
Schedule.
    (b) Staff.--Subject to rules prescribed by the Commission, and 
without regard to section 5311(b) of title 5, United States Code, the 
Director may appoint additional personnel as the Director considers 
appropriate.
    (c) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Commission shall be appointed subject to the provisions of 
title 5, United States Code, governing appointments in the competitive 
service, and shall be paid in accordance with the provisions of chapter 
51 and subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates.
    (d) Experts and Consultants.--Subject to rules prescribed by the 
Commission, the Director may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, but at 
rates for individuals not to exceed the daily equivalent of the rate of 
basic pay payable for level V of the Executive Schedule.
    (e) Staff of Federal Agencies.--Upon request of the Director, the 
head of any Federal department or agency may detail, on a reimbursable 
basis, any of the personnel of that department or agency to the 
Commission to assist it in carrying out its duties under this Act.

SEC. 205. POWERS OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the purpose of 
carrying out this Act, hold hearings, sit and act at times and places, 
take testimony, and receive evidence as the Commission considers 
appropriate. The Commission may administer oaths or affirmations to 
witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized to take by this section.
    (c) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information 
necessary to enable it to carry out this Act. Upon request of the 
Chairman or Vice Chairman of the Commission, the head of that 
department or agency shall furnish that information to the Commission.
    (d) Gifts, Bequests, and Devises.--The Commission may accept, use, 
and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Commission. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in the Treasury and shall be available for 
disbursement upon order of the Chairman.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (f) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out its responsibilities 
under this Act.
    (g) Subpoena Power.--
            (1) In general.--The Commission may issue subpoenas 
        requiring the attendance and testimony of witnesses and the 
        production of any evidence relating to any matter under 
        investigation by the Commission. The attendance of witnesses 
        and the production of evidence may be required from any place 
        within the United States at any designated place of hearing 
        within the United States.
            (2) Failure to obey a subpoena.--If a person refuses to 
        obey a subpoena issued under paragraph (1), the Commission may 
        apply to a United States district court for an order requiring 
        that person to appear before the Commission to give testimony, 
        produce evidence, or both, relating to the matter under 
        investigation. The application may be made within the judicial 
        district where the hearing is conducted or where that person is 
        found, resides, or transacts business. Any failure to obey the 
        order of the court may be punished by the court as civil 
        contempt.
            (3) Service of subpoenas.--The subpoenas of the Commission 
        shall be served in the manner provided for subpoenas issued by 
        a United States district court under the Federal Rules of Civil 
        Procedure for the United States district courts.
            (4) Service of process.--All process of any court to which 
        application is be made under paragraph (2) may be served in the 
        judicial district in which the person required to be served 
        resides or may be found.
    (h) Immunity.--Except as provided in this subsection, a person may 
not be excused from testifying or from producing evidence pursuant to a 
subpoena on the ground that the testimony or evidence required by the 
subpoena may tend to incriminate or subject that person to criminal 
prosecution. A person, after having claimed the privilege against self-
incrimination, may not be criminally prosecuted by reason of any 
transaction, matter, or thing about which that person is compelled to 
testify or relating to which that person is compelled to produce 
evidence, except that the person may be prosecuted for perjury 
committed during the testimony or made in the evidence.
    (i) Contract Authority.--The Commission may contract with and 
compensate government and private agencies or persons for property and 
services, without regard to section 3709 of the Revised Statutes (41 
U.S.C. 5).

SEC. 206. ANNUAL REPORTS.

    The Commission shall transmit an annual report to the Secretary of 
Commerce and the Congress not later than December 31 of each year. Each 
such report shall contain a detailed statement of activities of the 
Commission during the fiscal year ending in the year in which such 
report is required to be submitted.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for each of the first two 
fiscal years beginning after the date of the enactment of this Act such 
sums as may be necessary for startup costs for the Commission to carry 
out this Act.

                                  <all>