[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3172 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 3172

   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

                           September 24, 2003

 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 36 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 2004.

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, 2003.

  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 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. 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 36 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 36 and inserting the following new items:

                              ``Sec. 36. Credit for contributions to 
                                        certified public subsidy 
                                        candidates.
                              ``Sec. 37. 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, 2004, in taxable years beginning after such date.
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