Citizens' Choice Act

Summary: Citizens' Choice Act - Amends the Internal Revenue Code to:  (1) allow an individual to designate five dollars for payment to the House of Representatives General Election Trust Fund (the Fund); (2) permit the individual to direct such payment to any political party; and (3) establish such Fund in the Treasury. 
Amends the Federal Election Campaign Act of 1971 to:  (1) set forth requirements for House of Representatives candidates who accept amounts from such Fund; and (2) prohibit any House of Representatives candidate from making loans totaling more than $50,000 to any campaign committee of the candidate.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Citizens' Choice Act''.

SEC. 2. DESIGNATION OF INCOME TAX PAYMENTS TO THE HOUSE OF 
              REPRESENTATIVES GENERAL ELECTION TRUST FUND.

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

``PART IX--DESIGNATION OF INCOME TAX PAYMENTS TO BE USED FOR THE HOUSE 
            OF REPRESENTATIVES GENERAL ELECTION TRUST FUND.

                              ``Sec. 6097. Designation by individuals.

``SEC. 6097. DESIGNATION BY INDIVIDUALS.

    ``(a) In General.--Every individual whose adjusted income tax 
liability for the taxable year is $5 or more may designate that $5 
shall be paid over to the House of Representatives General Election 
Trust Fund. The first page of the return of the taxpayer, or the page 
bearing the taxpayer's signature, shall include a place for designating 
the Democratic Party, the Republican Party, or, as written in by the 
taxpayer, any other political party as recipient of the amount 
designated.
    ``(b) Adjusted Income Tax Liability.--For purposes of this section, 
the adjusted income tax liability of an individual is the tax liability 
of such individual (as determined under subsection (b) of section 6096) 
for the taxable year reduced by the amount designated under section 
6096 (relating to designation of income tax payments to the 
Presidential Election Campaign Fund) for such taxable year.
    ``(c) Joint Returns.--In the case of a joint return showing an 
adjusted income tax liability of $10 or more, each spouse may designate 
that $5 shall be paid over to the House of Representatives General 
Election Trust Fund.
    ``(d) Manner and Time of Designation.--Subsection (c) of section 
6096 shall apply to the manner and time of the designation under this 
section.''.
    (b) Clerical Amendment.--The table of parts for such subchapter A 
is amended by adding at the end the following new item:

                              ``Part IX. Designation of income tax 
                                        payments to be used for the 
                                        House of Representatives 
                                        General Election Trust Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

SEC. 3. ESTABLISHMENT OF THE HOUSE OF REPRESENTATIVES GENERAL ELECTION 
              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. 9512. HOUSE OF REPRESENTATIVES GENERAL ELECTION 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 `House of 
Representatives General Election Trust Fund', consisting of such 
amounts as may be appropriated or credited to such trust fund as 
provided in this section or section 9602(b).
    ``(b) Accounts.--The trust fund shall consist of one account for 
each political party in each congressional district. The amounts 
designated under section 6097 (relating to designation by individuals) 
shall be deposited in the appropriate accounts and shall be paid to 
certified House candidates (as defined in subsection (d)) at such time 
and in such manner as the Secretary may prescribe (in consultation with 
the Federal Election Commission) for the political parties and 
congressional districts of residence of the individuals making the 
designation.
    ``(c) Transfer to Fund of Amounts Designated by Individuals.--There 
is hereby appropriated to the House of Representatives General Election 
Trust Fund amounts equivalent to the amounts designated under section 
6097.
    ``(d) Certified House Candidates Defined.--In this section, a 
`certified House candidate' means a candidate in a general election for 
the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress who is certified by the Federal Election Commission 
under section 323 of the Federal Election Campaign Act of 1971 as 
eligible to accept payments under this section.
    ``(e) Treatment of Amounts Remaining After Election.--Any amount 
remaining in an account after all expenditures are made with respect to 
an election (including any runoff election subsequent to a general 
election) shall be deposited in the general fund of the Treasury.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end the following new item:

                              ``Sec. 9512. House of Representatives 
                                        General Election Trust Fund.''.

SEC. 4. REQUIREMENTS FOR HOUSE OF REPRESENTATIVES CANDIDATES WHO ACCEPT 
              AMOUNTS FROM HOUSE OF REPRESENTATIVES GENERAL ELECTION 
              TRUST FUND.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 301 et seq.) is amended by adding at the end the 
following new section:

``requirements for house general election candidates who accept amounts 
   from house of representatives general election campaign trust fund

    ``Sec. 323. (a) In General.--
            ``(1) Certification.--The Commission shall certify that a 
        candidate for the office of Representative in, or Delegate or 
        Resident Commissioner to, the Congress in a general election is 
        eligible to accept payments from the appropriate account of the 
        House of Representatives General Election Trust Fund under 
        section 9512 of the Internal Revenue Code of 1986 if the 
        candidate certifies the following (at such time and in such 
        form and manner as the Commission may require):
                    ``(A) The candidate has received contributions 
                totaling not less than $60,000 (of which not more than 
                $1,000 may be from the personal funds of the candidate) 
                with respect to the election.
                    ``(B) The candidate will not furnish (by 
                contribution, loan, or otherwise) more than $20,000 
                with respect to the election from the personal funds of 
                the candidate.
                    ``(C) Subject to paragraph (2), the candidate will 
                not make expenditures (including funds from the House 
                of Representatives General Election Trust Fund) with 
                respect to the election totaling more than $600,000.
            ``(2) Waiver of expenditure limits for certain 
        candidates.--The Commission shall waive the application of 
        paragraph (1)(C) to a candidate if the candidate's opponent in 
        the general election--
                    ``(A) is not certified with respect to the election 
                under this section; and
                    ``(B) has accepted contributions with respect to 
                the election totaling not less than $100,000 or has 
                made expenditures with respect to the election totaling 
                not less than $100,000.
    ``(b) Enforcement.--
            ``(1) Audit of reports.--The Commission may audit campaign 
        reports submitted under this Act to assure compliance with the 
        requirements of this section.
            ``(2) Penalty for excess expenditures.--In the case of a 
        violation of the expenditure limit provided under subsection 
        (a)(1)(C), the Commission shall impose a civil penalty in an 
        amount equal to not less than the amount of the excess 
        expenditure and not more than four times the amount of the 
        excess expenditure, except that, in the case of an inadvertent 
        violation, the Commission shall impose a civil penalty in an 
        amount equal to the amount of the excess expenditure.
    ``(c) Coordination With Secretary of the Treasury.--The Commission 
shall transmit to the Secretary of the Treasury the names of candidates 
certified under this section, together with such other information as 
may be required to enable the Secretary to carry out section 9512 of 
the Internal Revenue Code of 1986.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to elections occurring after December 31, 1996.

SEC. 5. LIMITATION ON CERTAIN LOANS BY HOUSE OF REPRESENTATIVES GENERAL 
              ELECTION CANDIDATES.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 301 et seq.), as amended by section 4, is further 
amended by adding at the end the following new section:

   ``limitation on certain loans by house of representatives general 
                          election candidates

    ``Sec. 324. A general election candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress may not make loans totaling more than $50,000 to any campaign 
committee of the candidate with respect to the election.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to elections occurring after December 31, 1996.