[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2780 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2780
To amend the Federal Election Campaign Act of 1971 to establish a
program under which Congressional candidates may receive public funding
for carrying out campaigns for election for Federal office, to amend
the Internal Revenue Code of 1986 to establish an income tax checkoff
to provide funding for such program and to provide a refundable tax
credit for individuals who make contributions to such candidates, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 2, 2001
Ms. McCollum introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on House
Administration, 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 amend the Federal Election Campaign Act of 1971 to establish a
program under which Congressional candidates may receive public funding
for carrying out campaigns for election for Federal office, to amend
the Internal Revenue Code of 1986 to establish an income tax checkoff
to provide funding for such program and to provide a refundable tax
credit for individuals who make contributions to such candidates, 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. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I--PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL CANDIDATES
Sec. 101. Establishment of public funding program for Congressional
candidates.
``TITLE V--PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL CANDIDATES
``Subtitle A--Program Requirements
``Sec. 501. Establishment of program.
``Sec. 502. Requirements for eligibility of certified public
subsidy candidates.
``Sec. 503. Requiring candidates to raise minimum amount of
funds from in-State individual
contributors.
``Subtitle B--General Election Payments for Certified Public Subsidy
Candidates
``Sec. 511. Option to receive public subsidy payments.
``Sec. 512. Amount of payment; timing.
``Sec. 513. Treatment of minor parties.
``Subtitle C--Spending Limits and Fundraising Requirements for
Certified Candidates
``Sec. 521. Limit on expenditures by certified candidates.
``Sec. 522. Source of funds used for expenditures.
``Subtitle D--Tax Rebate Certificates for Individual Contributors
``Sec. 531. Tax rebate certificates for individuals making
contributions to candidate.
``Sec. 532. Coordination with Secretary of the Treasury.
``Subtitle E--Enforcement
``Sec. 541. Withdrawal of certification.
``Sec. 542. Penalties for spending in excess of limits.
Sec. 102. Effective date.
TITLE II--INCOME TAX CHECKOFF FOR FUNDING FOR CERTIFIED PUBLIC SUBSIDY
CANDIDATES
Sec. 201. Designation of income tax payments for fund for certified
public subsidy candidates.
TITLE III--TAX CREDIT FOR CONTRIBUTIONS TO PARTICIPATING CANDIDATES
Sec. 301. Refundable credit for contributions to certified public
subsidy candidates.
TITLE I--PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL CANDIDATES
SEC. 101. ESTABLISHMENT OF PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL
CANDIDATES.
The Federal Election Campaign Act of 1971 is amended by adding at
the end the following new title:
``TITLE V--PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL CANDIDATES
``Subtitle A--Program Requirements
``SEC. 501. ESTABLISHMENT OF PROGRAM.
``There is established a program under which the Commission shall
certify candidates for election for Federal office as certified public
subsidy candidates in accordance with this subtitle and make payments
to such candidates in accordance with subtitle B.
``SEC. 502. REQUIREMENTS FOR ELIGIBILITY OF CERTIFIED PUBLIC SUBSIDY
CANDIDATES.
``(a) In General.--In this title, a `certified public subsidy
candidate' is a candidate for election for the office of Senator or
Representative in, or Delegate or Resident Commissioner to, the
Congress, who is certified by the Commission as meeting the
requirements of this title with respect to the election.
``(b) Procedure for Certification.--The Commission shall certify
that a candidate meets the requirements for a certified public subsidy
candidate under this title if the candidate submits an application to
the Commission which contains the following information and assurances:
``(1) A certification that the candidate has met the
requirements of section 503 regarding contributions from in-
State individual residents.
``(2) Assurances that the candidate will meet the
applicable spending limits and fundraising requirements of
subtitle B.
``(3) Assurances that the candidate will meet the
requirements of subtitle C regarding the furnishing of rebate
certificates to individuals making contributions to the
principal campaign committee of the candidate.
``(4) Assurances that the candidate will provide the
Commission with ongoing information (at such times and in such
form as the Commission may require) to enable the Commission to
determine whether the candidate is in compliance with the
applicable requirements of this title.
``(5) Such other information and assurances as the
Commission may require.
``(c) Deadline for Application.--
``(1) In general.--A candidate who seeks to be certified as
a certified public subsidy candidate shall submit the
application described in subsection (b) to the Commission at
the same time that the principal campaign committee of the
candidate files its statement of organization with the
Commission under section 303.
``(2) Special rule for general elections.--If a candidate
who is a certified public subsidy candidate with respect to a
primary election (or convention or caucus of a political party
which has authority to nominate a candidate) wins the election
or is otherwise nominated to serve as the candidate of the
party in the general election, the candidate shall be deemed to
have submitted the application described in subsection (b) with
respect to the succeeding general election.
``SEC. 503. REQUIRING CANDIDATES TO RAISE MINIMUM AMOUNT OF FUNDS FROM
IN-STATE INDIVIDUAL CONTRIBUTORS.
``(a) In General.--A candidate may not be certified as a certified
public subsidy candidate under this title until the candidate has
received contributions from in-State individual residents in an
aggregate amount equal to or greater than 2.5 percent of the maximum
amount of expenditures the candidate may make with respect to the
election, as determined under section 521.
``(b) Limit on Maximum Amount Taken Into Account.--In determining
whether a candidate has received the minimum amount of contributions
required under subsection (a), there shall not be taken into account
any amounts provided in excess of $100 by the same individual.
``(c) In-State Individual Resident Defined.--In this section, an
`in-State individual resident' is an individual who resides in the
State the candidate seeks to represent (in the case of a candidate for
election for the office of Senator) or the State in which the
Congressional district the candidate seeks to represent is located (in
the case of a candidate for election for the office of Representative
in, or Delegate or Resident Commissioner to, the Congress).
``Subtitle B--General Election Payments for Certified Public Subsidy
Candidates
``SEC. 511. OPTION TO RECEIVE PUBLIC SUBSIDY PAYMENTS.
``The Commission shall make payments in accordance with this
subtitle with respect to a general election to each certified public
subsidy candidate who notifies the Commission that the candidate seeks
such payments with respect to the election.
``SEC. 512. AMOUNT OF PAYMENT; TIMING.
``Not later than 10 days after receiving notice under section 511,
the Commission shall make a payment to the candidate in an amount equal
to one-third of the maximum amount of expenditures the candidate may
make with respect to the election, as determined under section 521.
``SEC. 513. TREATMENT OF MINOR PARTIES.
``Notwithstanding any other provision of this title, a candidate is
not eligible to receive a payment under section 512 with respect to an
election unless the candidate of the candidate's political party
received 5 percent or more of the total number of votes received by all
candidates for the office involved in the preceding general election.
``Subtitle C--Spending Limits and Fundraising Requirements for
Certified Candidates
``SEC. 521. LIMIT ON EXPENDITURES BY CERTIFIED CANDIDATES.
``(a) General Election.--The amount of expenditures made with
respect to a general election by the principal campaign committee of a
certified public subsidy candidate may not exceed an amount equal to
the product of $1 and--
``(1) in the case of a candidate for the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress, the population of the district the candidate seeks to
represent; or
``(2) in the case of a candidate for the office of Senator,
the population of the State the candidate seeks to represent.
``(b) Primary Election.--The amount of expenditures made with
respect to an election other than a general election by the principal
campaign committee of a certified public subsidy candidate may not
exceed 50 percent of the limit established under subsection (a) for
expenditures with respect to a general election.
``(c) Increase in Limit for Candidates Facing Nonparticipating
Opponents.--
``(1) In general.--The amount of the limit established
under subsection (a) or subsection (b) with respect to a
candidate in an election shall be increased by an amount equal
to the product of--
``(A) the limit established under such subsection;
and
``(B) the number of candidates seeking the same
office in the election who are not certified public
subsidy candidates under this title with respect to the
election.
``(2) Treatment of candidates of minor parties.--In
determining the number of candidates under paragraph (1)(B),
there shall not be taken into account any candidate who is
ineligible to receive a payment under this title pursuant to
section 513.
``SEC. 522. SOURCE OF FUNDS USED FOR EXPENDITURES.
``(a) In General.--The funds used by the principal campaign
committee of a certified public subsidy candidate for making
expenditures with respect to an election shall be derived as follows:
``(1) Not more than one-third of the funds shall be derived
from contributions made to the committee by other political
committees, except that not more than 10 percent of the funds
may be derived from contributions made by political committees
of political parties.
``(2) Except as provided in subsection (b), the remainder
of the funds shall be derived from contributions made to the
committee by individuals.
``(b) Treatment of Candidates Receiving Public Subsidy Payments for
General Election.--In the case of the principal campaign committee of a
certified public subsidy candidate receiving public subsidy payments
for a general election under subtitle B, one-third of the funds used
for such election by the committee shall be provided by the Commission
as a payment under section 512.
``Subtitle D--Tax Rebate Certificates for Individual Contributors
``SEC. 531. TAX REBATE CERTIFICATES FOR INDIVIDUALS MAKING
CONTRIBUTIONS TO CANDIDATE.
``Each certified public subsidy candidate shall provide a tax
rebate certificate to each individual who makes a contribution to the
candidate's principal campaign committee after the candidate is
certified under section 502, for purposes of enabling the individual to
receive the refundable credit provided under section 35 of the Internal
Revenue Code of 1986.
``SEC. 532. COORDINATION WITH SECRETARY OF THE TREASURY.
``In issuing regulations to carry out this subtitle, the Commission
shall consult with the Secretary of the Treasury.
``Subtitle E--Enforcement
``SEC. 541. WITHDRAWAL OF CERTIFICATION.
``If the Commission determines that a certified public subsidy
candidate has made expenditures in excess of the applicable limits
under section 521, has failed to meet any other requirement of this
title, or otherwise no longer meets the requirements for certification
under subtitle A, the Commission shall revoke the candidate's
certification.
``SEC. 542. PENALTIES FOR SPENDING IN EXCESS OF LIMITS.
``(a) Notification of Excess Expenditures.--If the Commission
determines that a certified public subsidy candidate with respect to an
election has made expenditures for the election in excess of the
applicable limit under section 521, the Commission shall notify the
candidate.
``(b) Assessment of Penalty.--Any certified public subsidy
candidate with respect to an election who makes expenditures for the
election in excess of the applicable limit under section 521 shall pay
a civil money penalty to the Commission in an amount determined as
follows:
``(1) In the case of a candidate who makes expenditures
which exceed the limit by 2.5 percent or less, an amount equal
to the amount of the excess expenditures.
``(2) In the case of a candidate who makes expenditures
which exceed the limit by more than 2.5 percent and less than 5
percent, an amount equal to three times the amount of the
excess expenditures.
``(3) In the case of a candidate who makes expenditures
which exceed the limit by more than 5 percent, an amount equal
to three times the amount of the excess expenditures plus (if
the Commission determines that the candidate knowingly and
willfully made such excess expenditures) an additional civil
money penalty in an amount determined by the Commission.''.
SEC. 102. EFFECTIVE DATE.
The amendments made by section 101 shall apply with respect to
elections occurring after December 2002.
TITLE II--INCOME TAX CHECKOFF FOR FUNDING FOR CERTIFIED PUBLIC SUBSIDY
CANDIDATES
SEC. 201. DESIGNATION OF INCOME TAX PAYMENTS FOR FUND FOR CERTIFIED
PUBLIC SUBSIDY CANDIDATES.
(a) In General.--Subchapter A of chapter 61 of the Internal Revenue
Code of 1986 (relating to information and returns) is amended by adding
at the end the following new part:
``PART IX--DESIGNATION OF INCOME TAX PAYMENTS TO CERTIFIED PUBLIC
SUBSIDY CANDIDATE FUND
``Sec. 6098. Designation to Certified
Public Subsidy Candidate Fund.
``SEC. 6098. DESIGNATION TO CERTIFIED PUBLIC SUBSIDY CANDIDATE FUND.
``(a) In General.--Every individual (other than a nonresident
alien) whose adjusted income tax liability for the taxable year is $1
or more may designate that $1 shall be paid over to the Certified
Public Subsidy Candidate Fund in accordance with the provisions of
section 9511. In the case of a joint return of husband and wife having
an adjusted income tax liability of $2 or more, each spouse may
designate that $1 shall be paid to the fund.
``(b) Adjusted Income Tax Liability.--For purposes of subsection
(a), the term `adjusted income tax liability' means, for any individual
for any taxable year, the excess (if any) of--
``(1) the income tax liability (as defined in section
6096(b)) of the individual for the taxable year, over
``(2) any amount designated by the individual (and, in the
case of a joint return, any amount designated by the
individual's spouse) under section 6096(a) for such taxable
year.
``(c) Manner and Time of Designation.--A designation under
subsection (a) may be made with respect to any taxable year--
``(1) at the time of filing the return of the tax imposed
by chapter 1 for such taxable year, or
``(2) at any other time (after the time of filing the
return of the tax imposed by chapter 1 for such taxable year)
specified in regulations prescribed by the Secretary.
Such designation shall be made in such manner as the Secretary
prescribes by regulations except that, if such designation is made at
the time of filing the return of the tax imposed by chapter 1 for such
taxable year, such designation shall be made either on the first page
of the return or on the page bearing the taxpayer's signature.''
(b) Certified Public Subsidy Candidate Fund.--Subchapter A of
chapter 98 of such Code (relating to establishment of trust funds) is
amended by adding at the end the following new section:
``SEC. 9511. CERTIFIED PUBLIC SUBSIDY CANDIDATE FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Certified Public
Subsidy Candidate Fund', consisting of such amounts as may be
appropriated or credited to such fund as provided in this section or
section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Certified Public Subsidy Candidate Fund amounts equivalent to the
amounts designated under section 6098.
``(c) Expenditures.--Amounts in the Certified Public Subsidy
Candidate Fund shall be available, as provided in appropriation Acts,
for purposes of making payments to certified public subsidy candidates
under title V of the Federal Election Campaign Act of 1971, to the
extent that such amounts exceed the aggregate of all Federal
administrative costs attributable to the implementation of section
6098, subsections (a) and (b) of this section, and (with respect to
such fund) section 9602.''
(c) Clerical Amendments.--
(1) The table of parts for subchapter A of chapter 61 of
such Code is amended by adding at the end the following new
item:
``Part IX. Designation of income tax
payments to Certified Public
Subsidy Candidate Fund.''
(2) The table of sections for subchapter A of chapter 98 of
such Code is amended by adding at the end the following new
item:
``Sec. 9511. Certified Public Subsidy
Candidate Fund.''
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
TITLE III--TAX CREDIT FOR CONTRIBUTIONS TO PARTICIPATING CANDIDATES
SEC. 301. REFUNDABLE CREDIT FOR CONTRIBUTIONS TO CERTIFIED PUBLIC
SUBSIDY CANDIDATES.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 35 as section 36 and by inserting
after section 34 the following new section:
``SEC. 35. CREDIT FOR CONTRIBUTIONS TO CERTIFIED PUBLIC SUBSIDY
CANDIDATES.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this subtitle
for the taxable year an amount equal to the aggregate amount of
contributions to certified public subsidy candidates made by such
individual during such taxable year.
``(b) Limitation.--The amount of the credit allowed under
subsection (a) for a taxable year shall not exceed $100.
``(c) Contributions to Certified Public Subsidy Candidates.--For
purposes of subsection (a), the term `contributions to certified public
subsidy candidates' means the amount of a contribution for which a tax
rebate certificate is issued under section 531 of the Federal Election
Campaign Act of 1971.''.
(b) Technical Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or from section 35 of
such Code'' before the period at the end.
(2) The table of sections for such subpart C of the
Internal Revenue Code of 1986 is amended by striking the item
relating to section 35 and inserting the following new items:
``Sec. 35. Credit for contributions to
certified public subsidy
candidates.
``Sec. 36. Overpayment of taxes.''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made with respect to elections occurring after
December 31, 2002, in taxable years beginning after such date.
<all>