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104TH CONGRESS

1ST SESSION H. R. 296

To reform campaign practices for elections to the House of Representatives

by limiting contributions from political action committees, establishing

tax credits for individual campaign contributions, providing matching

funds for individual small contributions, limiting the use of personal

funds in a campaign, offsetting independent expenditures, encouraging

the use of longer campaign commercials, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. KANJORSKI introduced the following bill; which was referred to the Committee on House Oversight and, in addition, to the Committees on Ways

and Means and 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 reform campaign practices for elections to the House

of Representatives by limiting contributions from political

action committees, establishing tax credits for individual

campaign contributions, providing matching funds for

individual small contributions, limiting the use of personal funds in a campaign, offsetting independent expenditures, encouraging the use of longer campaign commercials, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘House of Representa3 tives Election Campaign Reform Act of 1995’’.

4 SEC. 2. LIMITATION ON CONTRIBUTIONS TO HOUSE OF

5 REPRESENTATIVES CANDIDATES BY POLITI6 CAL ACTION COMMITTEES.

7 Section 315(a)(2)(A) of the Federal Election Cam8 paign Act of 1971 (2 U.S.C. 441a(a)(2)(A)) is amended

9 by striking out ‘‘$5,000’’ and inserting in lieu thereof

10 ‘‘$2,000’’.

11 SEC. 3. CREDIT FOR CONTRIBUTIONS TO CONGRESSIONAL

12 CAMPAIGNS.

13 (a) GENERAL RULE.—Part IV of subchapter A of

14 chapter 1 of the Internal Revenue Code of 1986 is amend15 ed by inserting a new section 24 as follows:

16 ‘‘SEC. 24. CONTRIBUTIONS TO CONGRESSIONAL CAM17 PAIGNS.

18 ‘‘(a) GENERAL RULE.—In the case of an individual,

19 there shall be allowed, subject to the limitations of sub20 section (b), as a credit against the tax imposed by this

21 chapter, an amount equal to 100 percent of any congres22 sional contribution which is made by such individual with23 in the taxable year, as defined in subsection (c)(1).

24 ‘‘(b) LIMITATIONS.—

25 ‘‘(1) The credit allowed by subsection (a) for a

26 taxable year shall not exceed an aggregate of $200
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1 ($400 in the case of a joint return) for all congres2 sional contributions by an individual in said year.

3 ‘‘(2) The credit under subsection (a) shall not

4 be allowed with respect to a congressional contribu5 tion, if the contribution is transmitted to the can6 didate or a campaign committee of the candidate

7 through an intermediary group, organization, or

8 committee.

9 ‘‘(c) DEFINITIONS.—For purposes of this subsection:

10 ‘‘(1) The term ‘congressional contribution’

11 means a contribution or gift of money, payment of

12 which is made during the taxable year, to an individ13 ual who is a candidate for nomination or election to

14 the office of Representative in, or Delegate or Resi15 dent Commissioner to, the Congress of the United

16 States in any primary, general, or special election,

17 and which—

18 ‘‘(A) is from a taxpayer (or either spouse

19 in the case of a joint return) who is a resident

20 of the State in which the election is held; and

21 ‘‘(B) is solely for the use by the recipient

22 to further his candidacy for nomination or elec23 tion to such office.

24 ‘‘(2) The term ‘candidate’ means an individual

25 who—
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1 ‘‘(A) publicly announces before the close of

2 the calendar year in which the contribution or

3 gift is made that he is a candidate for nomina4 tion or election to one of the offices specified in

5 paragraph (1); and

6 ‘‘(B) meets the qualifications prescribed by

7 law to hold such office.’’.

8 (b) CLERICAL AMENDMENT.—The table of sections

9 for part IV of subchapter A of chapter 1 of such code

10 is amended by inserting after the item relating to section

11 23 the following new item:

‘‘Sec. 24. Contributions to Congressional Campaigns.’’.

12 (c) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to contributions made after De14 cember 31, 1995, in taxable years ending after that date.

15 (d) The Federal Election Commission shall issue reg16 ulations providing for the biennial indexing of the tax

17 credit established under this section.

18 SEC. 4. DESIGNATION OF INCOME TAX PAYMENTS TO THE

19 HOUSE OF REPRESENTATIVES CAMPAIGN

20 TRUST FUND.

21 (a) IN GENERAL.—Subchapter A of chapter 61 of the

22 Internal Revenue Code of 1986 (relating to returns and

23 records) is amended by adding at the end the following

24 new part:
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1 ‘‘PART IX—DESIGNATION OF INCOME TAX PAY2 MENTS TO BE USED FOR THE HOUSE OF

3 REPRESENTATIVES CAMPAIGN TRUST FUND

‘‘Sec. 6097. Designation by individuals.

4 ‘‘SEC. 6097. DESIGNATION BY INDIVIDUALS.

5 ‘‘(a) IN GENERAL.—Every individual whose adjusted

6 income tax liability for the taxable year is $2 or more may

7 designate that $2 shall be paid over to the House of Rep8 resentatives Campaign Trust Fund.

9 ‘‘(b) ADJUSTED INCOME TAX LIABILITY.—For pur10 poses of this section, the adjusted income tax liability of

11 an individual is the tax liability of such individual (as de12 termined under subsection (b) of section 6096) for the tax13 able year reduced by the amount designated under section

14 6096 (relating to designation of income tax payments to

15 Presidential Election Campaign Fund) for such taxable

16 year.

17 ‘‘(c) JOINT RETURNS.—In the case of a joint return

18 showing adjusted income tax liability of $2 or more, each

19 spouse may designate that $2 shall be paid over to the

20 House of Representatives Campaign Trust Fund.

21 ‘‘(d) MANNER AND TIME OF DESIGNATION.—Sub22 section (c) of section 6096 shall apply to the manner and

23 time of the designation under this section.’’.
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1 (b) CLERICAL AMENDMENT.—The table of parts for

2 such subchapter A is amended by adding at the end the

3 following new item:

‘‘Part IX. Designation of income tax payments to be used for the

House of Representatives Campaign Trust Fund.’’.

4 (c) EFFECTIVE DATE.—The amendments made by

5 this section shall apply to taxable years beginning

6 after December 31, 1995.

7 SEC. 5. ESTABLISHMENT OF THE HOUSE OF REPRESENTA8 TIVES CAMPAIGN TRUST FUND.

9 (a) IN GENERAL.—Subchapter A of chapter 98 of the

10 Internal Revenue Code of 1986 (relating to Trust Fund

11 Code) is amended by adding at the end the following new

12 section:

13 ‘‘SEC. 9511. HOUSE OF REPRESENTATIVES CAMPAIGN

14 TRUST FUND.

15 ‘‘(a) CREATION OF TRUST FUND.—There is estab16 lished in the Treasury of the United States a trust fund

17 to be known as the ‘House of Representatives Campaign

18 Trust Fund’, consisting of such amounts as may be appro19 priated or credited to such trust fund as provided in this

20 section or section 9602(b).

21 ‘‘(b) TRANSFER TO FUND OF AMOUNTS DESIGNATED

22 BY INDIVIDUALS.—There is hereby appropriated to the

23 House of Representatives Campaign Trust Fund amounts

24 equivalent to the amounts designated under section 6097.
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1 ‘‘(c) EXPENDITURE FROM FUND.—Amounts in the

2 House of Representatives Campaign Trust Fund shall be

3 available to provide matching payments in accordance with

4 section 325 of the Federal Election Campaign Act of

5 1971. Expenditures from the Fund shall be made, in such

6 manner as the Federal Election Commission may pre7 scribe by regulation, to each candidate who certifies to the

8 Commission that the candidate and the authorized com9 mittees of the candidate have received contributions total10 ing not less than $25,000, in contributions of $200 or less

11 from individual contributors who are residents of the State

12 from which the candidate is running for nomination or

13 election to the office of Representative in, or Delegate or

14 Resident Commissioner to, the Congress of the United

15 States.’’.

16 (b) CLERICAL AMENDMENT.—The table of sections

17 for such subchapter A is amended by adding at the end

18 the following new item:

‘‘Sec. 9511. House of Representatives Campaign Trust Fund.’’.
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1 SEC. 6. AMENDMENT TO THE FEDERAL ELECTION CAM2 PAIGN ACT OF 1971 RELATING TO REPORTING

3 OF INDIVIDUAL RESIDENT CONTRIBUTIONS

4 IN ELECTIONS FOR THE OFFICE OF

5 REPRESENTATIVE.

6 (a) IN GENERAL.—Title III of the Federal Election

7 Campaign Act of 1971 (2 U.S.C. 431 et seq.) is amended

8 by adding at the end the following new section:

9 ‘‘REPORTING OF INDIVIDUAL RESIDENT CONTRIBUTIONS

10 IN ELECTIONS FOR THE OFFICE OF REPRESENTATIVE

11 ‘‘SEC. 324. (a) Each primary election or general elec12 tion candidate for the office of Representative in, or Dele13 gate or Resident Commissioner to, the Congress of the

14 United States who desires to receive matching payments

15 under section 325 shall report to the Commission all con16 tributions received by the candidate and the authorized

17 committees of the candidate totaling not less than

18 $25,000, in contributions of $200 or less from individual

19 contributors who are residents of the State from which

20 the candidate is running for nomination or election to the

21 office of Representative in, or Delegate or Resident Com22 missioner to, the Congress of the United States.

23 ‘‘(b) For purposes of making matching payments

24 from the House of Representatives Campaign Trust Fund,

25 the Commission shall certify to the Secretary of the Treas26 ury the amounts reported under subsection (a).’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply to elections taking place after

3 December 31, 1994.

4 SEC. 7. AMENDMENT TO THE FEDERAL ELECTION CAM5 PAIGN ACT OF 1971 RELATING TO MATCHING

6 PAYMENTS FROM THE HOUSE OF REP7 RESENTATIVES CAMPAIGN TRUST FUND.

8 (a) IN GENERAL.—Title III of the Federal Election

9 Campaign Act of 1971 (2 U.S.C. 301 et seq.), as amended

10 by section 6, is further amended by adding at the end the

11 following new section:

12 ‘‘MATCHING PAYMENTS FROM THE HOUSE OF

13 REPRESENTATIVES CAMPAIGN TRUST FUND

14 ‘‘SEC. 325. (a) ELIGIBILITY FOR MATCHING

15 FUNDS.—A primary election or general election candidate

16 for the office of Representative who, under section 324,

17 reports to the Commission that the candidate and the au18 thorized committees of the candidate have received con19 tributions totaling at least $25,000, in contributions of

20 $200 or less from individual contributors who are resi21 dents of the State from which the candidate is running,

22 shall be entitled to matching payments from the House

23 of Representatives Campaign Trust Fund under section

24 9511 of the Internal Revenue Code of 1986 in an amount

25 equal to the aggregate total of the first $200 in contribu-
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1 tions from individuals who are residents of the State from

2 which the candidate is running.

3 ‘‘(b) MAXIMUM MATCHING BENEFIT.—The aggre4 gate total of matching payments a primary election or gen5 eral election candidate may receive as provided under sub6 section (a) shall not exceed $300,000 in any election.

7 ‘‘(c) RESTRICTION ON ELIGIBILITY FOR MATCHING

8 FUNDS.—

9 ‘‘(1) A primary election or general election can10 didate for the office of Representative who, under

11 subsection (a) would qualify for matching funds

12 must certify to the Commission, under penalty of

13 perjury, that neither the candidate nor any members

14 of the candidate’s family, will furnish (by contribu15 tion, loan, or otherwise) from the personal funds of

16 the candidate or the candidate’s family an aggregate

17 amount exceeding $100,000 with respect to the elec18 tion.

19 ‘‘(2) Any person who violates the provisions of

20 paragraph (1) shall be fined not more than $25,000,

21 or imprisoned not more than five years, or both. Any

22 officer, employee, or agent of any political committee

23 who knowingly consents to any expenditure in viola24 tion of the provisions of paragraph (1) shall be fined
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1 not more than $25,000, or imprisoned not more

2 than five years, or both.

3 ‘‘(3) For the purposes of paragraph (1), the

4 term ‘candidate’s family’ means an individual who is

5 related to the candidate as father, mother, son,

6 daughter, brother, sister, grandfather, grandmother,

7 grandson, granddaughter, uncle, aunt, first cousin,

8 nephew, niece, husband, wife, father-in-law, mother9 in-law, son-in-law, daughter-in-law, brother-in-law,

10 sister-in-law, grandfather-in-law, grandmother-in11 law, stepfather, stepmother, stepson, stepdaughter,

12 stepbrother, stepsister, half brother, or half sister.

13 ‘‘(d) ADDITIONAL MATCHING FUNDS.—If a can14 didate refuses to make the certification required under

15 subsection (c), all other candidates eligible under sub16 section (a), with respect to that primary or general elec17 tion, shall be entitled to matching payments from the

18 House of Representatives Campaign Trust Fund under

19 section 9511 of the Internal Revenue Code of 1986 in an

20 amount equal to the total of all contributions they receive

21 from individuals regardless of State of residence of the

22 contributors and for amounts up to $1,000.

23 ‘‘(e) COMPENSATION TO OPPONENTS OF CAN24 DIDATES WHO VIOLATE THE PERSONAL FUNDS LIMITA25 TION CERTIFICATION.—If a candidate is found under sub-
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1 section (c)(2) to have violated the provisions of subsection

2 (c)(1), all other candidates eligible under subsection (a),

3 with respect to that primary or general election, shall be

4 entitled to payments from the House of Representatives

5 Campaign Trust Fund under section 9511 of the Internal

6 Revenue Code of 1986 in an amount equal to the amount

7 in excess of $100,000 as provided under subsection (c)(1).

8 ‘‘(f) INDEPENDENT EXPENDITURES OFFSET.—

9 ‘‘(1) If a candidate certified under subsection

10 (c) is notified by the Commission, as provided under

11 section 304 (d) or (e) of the Federal Election Cam12 paign Act (2 U.S.C. 434) that independent expendi13 tures are made during an election cycle by one or

14 more person or entity aggregating an amount in ex15 cess of $10,000 in opposition to such certified can16 didate or for an opponent of such candidate, the no17 tified candidate shall be entitled to payments from

18 the House of Representatives Campaign Trust Fund

19 under section 9511 of the Internal Revenue Code of

20 1986 in an amount equal to 300 percent of the

21 amount of such independent expenditures.

22 ‘‘(2) Any person or entity found by the Com23 mission to have willfully or intentionally sought to

24 subvert the intent of this subsection shall be fined
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1 not more than $25,000, or imprisoned not more

2 than five years, or both.

3 ‘‘(g) REPAYMENT OF TRUST FUND FROM EXCESS

4 FUNDS.—

5 ‘‘(1) If at the conclusion of a primary election

6 or general election in which a candidate who has re7 ceived payments from the House of Representatives

8 Campaign Trust Fund under section 9511 of the In9 ternal Revenue Code of 1986 has excess campaign

10 funds attributable to that election, such candidate

11 shall within thirty days refund to the trust fund the

12 amount of the excess campaign funds which equals

13 the pro rata share that payments provided to such

14 candidate from the trust fund accounted for of such

15 candidate’s total aggregated receipts from all

16 sources with respect to such election.

17 ‘‘(2) In no case shall the amount of refund re18 quired under paragraph (1) exceed the total aggre19 gated payments provided to such candidate from the

20 trust fund with respect to that election.

21 ‘‘(h) INDEXING REGULATION.—The Federal Election

22 Commission shall issue regulations providing for the bien23 nial indexing of the provisions of subsections (a) and (b).’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply to elections taking place after

3 December 31, 1994.

4 SEC. 8. AMENDMENTS TO SECTION 304 OF THE FEDERAL

5 ELECTION CAMPAIGN ACT OF 1971 WITH RE6 SPECT TO INDEPENDENT EXPENDITURES.

7 Section 304 of the Federal Election Campaign Act

8 of 1971 (2 U.S.C. 434) is amended by adding at the end

9 the following:

10 ‘‘(d)(1) Any independent expenditures made, or obli11 gated to be made, by any person or entity in an election

12 for the office of Representative in, or Delegate or Resident

13 Commissioner to, the Congress which in the aggregate

14 total more than $10,000 shall be reported by such person

15 or entity to the Commission within twenty-four hours after

16 such independent expenditures are made. Thereafter, any

17 independent expenditures by such person or entity in the

18 same election cycle shall be reported by such person or

19 entity to the Commission within twenty-four hours after

20 such expenditures are made or obligated.

21 ‘‘(2) Such statements shall be filed with the Commis22 sion and the Secretary of State for the State involved and

23 shall contain a statement under penalty of perjury by the

24 person or entity making the independent expenditures, or

25 by the person or entity incurring the obligation to make
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1 such expenditures, as the case may be, indicating whom

2 the independent expenditures are actually intended to help

3 elect or defeat. The Commission shall notify each can4 didate in the election of each such report within twenty5 four hours after the report is made.

6 ‘‘(3) Notwithstanding the reporting requirements es7 tablished in this paragraph, the Commission may make

8 its own determination that a person or entity has made,

9 or has incurred obligations to make, independent expendi10 tures with respect to any election for the office of Rep11 resentative in, or Delegate or Resident Commissioner to,

12 the Congress which in the aggregate totals more than

13 $10,000.

14 ‘‘(4) The Commission shall notify each candidate in

15 the election about each such determination within twenty16 four hours after each such determination is made.

17 ‘‘(5) For purposes of this section, an expenditure will

18 be deemed to be made when it is incurred.

19 ‘‘(e) When two or more persons or entities, in co20 operation, consultation, or concert with each other, make,

21 or obligate to make, independent expenditures during any

22 general, primary, or runoff election period for the office

23 of Representative in, or Delegate or Resident Commis24 sioner to, the Congress each such person or entity shall

25 report to the Commission, under subsection (d), the
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1 amount of such expenditure or expenditures made by each

2 such person or entity in coordination, consultation, or con3 cert with such other person, persons, entity, or entities

4 when the total amount of all expenditures made by such

5 persons or entities in coordination, consultation, or concert

6 with each other exceeds the applicable amount provided

7 in such subsection.’’.

8 SEC. 9. AMENDMENTS RELATING TO BROADCAST MEDIA

9 RATES AND DISCLOSURES.

10 (a) Section 315(b) of the Communications Act of

11 1934 (47 U.S.C. 315(b)) is amended by inserting at the

12 end thereof the following: ‘‘Provided, however, That in the

13 case of a candidate who has made the certification re14 quired under section 325(c) of the Federal Election Cam15 paign Act of 1971, paragraph (1)(A) shall be applied with16 out regard to the phrase ‘class and’ if the unit is at least

17 one but not more than five minutes in length’’.

18 (b) Section 318(a) of the Federal Election Campaign

19 Act of 1971 (2 U.S.C. 441d(a)), is amended by—

20 (1) striking out the period at the end of para21 graph 3 and inserting in lieu thereof; ‘‘;’’; and

22 (2) adding at the end thereof the following:

23 ‘‘(4) if paid for or authorized by a candidate in

24 an election for the office of Representative in, or

25 Delegate or Resident Commissioner to, the Congress
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1 who is a candidate, or the authorized committee of

2 such candidate, who has not made the certification

3 required under section 325(c) of the Federal Elec4 tion Campaign Act of 1971, such communication

5 shall also contain—

6 ‘‘(A) in the case of a radio broadcast sta7 tion the following oral, or

8 ‘‘(B) in the case of a television broadcast

9 state the following oral and printed, or

10 ‘‘(C) in the case of a newspaper, magazine,

11 outdoor advertising facility, direct mailing, or

12 any other type of general public political adver13 tising the following printed

14 sentence: ‘This candidate has not agreed to abide by

15 the spending limits for this congressional election

16 campaign set forth in the Federal Campaign Act.’.’’.

17 SEC. 10. PENALTIES.

18 (a) It is unlawful for any person knowingly and will19 fully—

20 (1) to furnish any false, fictitious, or fraudulent

21 evidence, books, or information (including any cer22 tification, verification, notice, or report) to the Com23 mission under this Act, or to include in any evi24 dence, books, or information so furnished any mis25 representation of a material fact, or to falsify or
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1 conceal any evidence, books, or information relevant

2 to a certification by the Commission under this Act;

3 or,

4 (2) to fail to furnish to the Commission any

5 records, books, or information requested by it for

6 purposes of this Act.

7 (b) Any person who violates the provisions of para8 graph (a)(1) shall be fined not more than $10,000, or im9 prisoned not more than five years, or both.

10 SEC. 11. RESTRICTIONS ON CONTROL OF CERTAIN TYPES

11 OF POLITICAL COMMITTEES BY CANDIDATES.

12 Section 303 of the Federal Election Campaign Act

13 of 1971 (2 U.S.C. 432) is amended by adding at the end

14 the following:

15 ‘‘(j) A candidate for the office of Representative in,

16 or Delegate or Resident Commissioner to, the Congress

17 of the United States may not establish, maintain, or con18 trol a political committee, other than an authorized com19 mittee of the candidate or a committee of a political

20 party.’’.

21 SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

22 There are authorized to be appropriated to the Com23 mission such sums as may be necessary for the purpose

24 of carrying out its functions under this Act.
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1 SEC. 13. EFFECIVE DATE.

2 Except as otherwise provided in this Act, this Act

3 shall take effect after December 31, 1994.

4 SEC. 14. SEVERABILITY.

5 If any provision of this Act or any amendment made

6 to this Act, or the application of any such provision to

7 any person or circumstances is held invalid, the validity

8 of any other such provision, and the application of such

9 provision to other persons and circumstances shall not be

10 affected thereby.

Æ

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