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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 296 Introduced in House (IH)]

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.

    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 ``House of Representatives Election 
Campaign Reform Act of 1995''.

SEC. 2. LIMITATION ON CONTRIBUTIONS TO HOUSE OF REPRESENTATIVES 
              CANDIDATES BY POLITICAL ACTION COMMITTEES.

    Section 315(a)(2)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(2)(A)) is amended by striking out ``$5,000'' and 
inserting in lieu thereof ``$2,000''.

SEC. 3. CREDIT FOR CONTRIBUTIONS TO CONGRESSIONAL CAMPAIGNS.

    (a) General Rule.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting a new section 24 
as follows:

``SEC. 24. CONTRIBUTIONS TO CONGRESSIONAL CAMPAIGNS.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed, subject to the limitations of subsection (b), as a credit 
against the tax imposed by this chapter, an amount equal to 100 percent 
of any congressional contribution which is made by such individual 
within the taxable year, as defined in subsection (c)(1).
    ``(b) Limitations.--
            ``(1) The credit allowed by subsection (a) for a taxable 
        year shall not exceed an aggregate of $200 ($400 in the case of 
        a joint return) for all congressional contributions by an 
        individual in said year.
            ``(2) The credit under subsection (a) shall not be allowed 
        with respect to a congressional contribution, if the 
        contribution is transmitted to the candidate or a campaign 
        committee of the candidate through an intermediary group, 
        organization, or committee.
    ``(c) Definitions.--For purposes of this subsection:
            ``(1) The term `congressional contribution' means a 
        contribution or gift of money, payment of which is made during 
        the taxable year, to an individual who is a candidate for 
        nomination or election to the office of Representative in, or 
        Delegate or Resident Commissioner to, the Congress of the 
        United States in any primary, general, or special election, and 
        which--
                    ``(A) is from a taxpayer (or either spouse in the 
                case of a joint return) who is a resident of the State 
                in which the election is held; and
                    ``(B) is solely for the use by the recipient to 
                further his candidacy for nomination or election to 
                such office.
            ``(2) The term `candidate' means an individual who--
                    ``(A) publicly announces before the close of the 
                calendar year in which the contribution or gift is made 
                that he is a candidate for nomination or election to 
                one of the offices specified in paragraph (1); and
                    ``(B) meets the qualifications prescribed by law to 
                hold such office.''.
    (b) Clerical Amendment.--The table of sections for part IV of 
subchapter A of chapter 1 of such code is amended by inserting after 
the item relating to section 23 the following new item:

                              ``Sec. 24. Contributions to Congressional 
                                        Campaigns.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 1995, in taxable years 
ending after that date.
    (d) The Federal Election Commission shall issue regulations 
providing for the biennial indexing of the tax credit established under 
this section.

SEC. 4. DESIGNATION OF INCOME TAX PAYMENTS TO THE HOUSE OF 
              REPRESENTATIVES CAMPAIGN 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 CAMPAIGN 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 $2 or more may designate that $2 
shall be paid over to the House of Representatives Campaign Trust Fund.
    ``(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 Presidential 
Election Campaign Fund) for such taxable year.
    ``(c) Joint Returns.--In the case of a joint return showing 
adjusted income tax liability of $2 or more, each spouse may designate 
that $2 shall be paid over to the House of Representatives Campaign 
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 
                                        Campaign Trust Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 5. ESTABLISHMENT OF THE HOUSE OF REPRESENTATIVES CAMPAIGN 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. HOUSE OF REPRESENTATIVES CAMPAIGN 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 Campaign 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) Transfer to Fund of Amounts Designated by Individuals.--There 
is hereby appropriated to the House of Representatives Campaign Trust 
Fund amounts equivalent to the amounts designated under section 6097.
    ``(c) Expenditure From Fund.--Amounts in the House of 
Representatives Campaign Trust Fund shall be available to provide 
matching payments in accordance with section 325 of the Federal 
Election Campaign Act of 1971. Expenditures from the Fund shall be 
made, in such manner as the Federal Election Commission may prescribe 
by regulation, to each candidate who certifies to the Commission that 
the candidate and the authorized committees of the candidate have 
received contributions totaling not less than $25,000, in contributions 
of $200 or less from individual contributors who are residents of the 
State from which the candidate is running for nomination or election to 
the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress of the United States.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end the following new item:

                              ``Sec. 9511. House of Representatives 
                                        Campaign Trust Fund.''.

SEC. 6. AMENDMENT TO THE FEDERAL ELECTION CAMPAIGN ACT OF 1971 RELATING 
              TO REPORTING OF INDIVIDUAL RESIDENT CONTRIBUTIONS IN 
              ELECTIONS FOR THE OFFICE OF REPRESENTATIVE.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.) is amended by adding at the end the 
following new section:

 ``reporting of individual resident contributions in elections for the 
                        office of representative

    ``Sec. 324. (a) Each primary election or general election candidate 
for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress of the United States who desires to 
receive matching payments under section 325 shall report to the 
Commission all contributions received by the candidate and the 
authorized committees of the candidate totaling not less than $25,000, 
in contributions of $200 or less from individual contributors who are 
residents of the State from which the candidate is running for 
nomination or election to the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress of the United States.
    ``(b) For purposes of making matching payments from the House of 
Representatives Campaign Trust Fund, the Commission shall certify to 
the Secretary of the Treasury the amounts reported under subsection 
(a).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to elections taking place after December 31, 1994.

SEC. 7. AMENDMENT TO THE FEDERAL ELECTION CAMPAIGN ACT OF 1971 RELATING 
              TO MATCHING PAYMENTS FROM THE HOUSE OF REPRESENTATIVES 
              CAMPAIGN TRUST FUND.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 301 et seq.), as amended by section 6, is further 
amended by adding at the end the following new section:

 ``matching payments from the house of representatives campaign trust 
                                  fund

    ``Sec. 325. (a) Eligibility for Matching Funds.--A primary election 
or general election candidate for the office of Representative who, 
under section 324, reports to the Commission that the candidate and the 
authorized committees of the candidate have received contributions 
totaling at least $25,000, in contributions of $200 or less from 
individual contributors who are residents of the State from which the 
candidate is running, shall be entitled to matching payments from the 
House of Representatives Campaign Trust Fund under section 9511 of the 
Internal Revenue Code of 1986 in an amount equal to the aggregate total 
of the first $200 in contributions from individuals who are residents 
of the State from which the candidate is running.
    ``(b) Maximum Matching Benefit.--The aggregate total of matching 
payments a primary election or general election candidate may receive 
as provided under subsection (a) shall not exceed $300,000 in any 
election.
    ``(c) Restriction on Eligibility for Matching Funds.--
            ``(1) A primary election or general election candidate for 
        the office of Representative who, under subsection (a) would 
        qualify for matching funds must certify to the Commission, 
        under penalty of perjury, that neither the candidate nor any 
        members of the candidate's family, will furnish (by 
        contribution, loan, or otherwise) from the personal funds of 
        the candidate or the candidate's family an aggregate amount 
        exceeding $100,000 with respect to the election.
            ``(2) Any person who violates the provisions of paragraph 
        (1) shall be fined not more than $25,000, or imprisoned not 
        more than five years, or both. Any officer, employee, or agent 
        of any political committee who knowingly consents to any 
        expenditure in violation of the provisions of paragraph (1) 
        shall be fined not more than $25,000, or imprisoned not more 
        than five years, or both.
            ``(3) For the purposes of paragraph (1), the term 
        `candidate's family' means an individual who is related to the 
        candidate as father, mother, son, daughter, brother, sister, 
        grandfather, grandmother, grandson, granddaughter, uncle, aunt, 
        first cousin, nephew, niece, husband, wife, father-in-law, 
        mother-in-law, son-in-law, daughter-in-law, brother-in-law, 
        sister-in-law, grandfather-in-law, grandmother-in-law, 
        stepfather, stepmother, stepson, stepdaughter, stepbrother, 
        stepsister, half brother, or half sister.
    ``(d) Additional Matching Funds.--If a candidate refuses to make 
the certification required under subsection (c), all other candidates 
eligible under subsection (a), with respect to that primary or general 
election, shall be entitled to matching payments from the House of 
Representatives Campaign Trust Fund under section 9511 of the Internal 
Revenue Code of 1986 in an amount equal to the total of all 
contributions they receive from individuals regardless of State of 
residence of the contributors and for amounts up to $1,000.
    ``(e) Compensation to Opponents of Candidates Who Violate the 
Personal Funds Limitation Certification.--If a candidate is found under 
subsection (c)(2) to have violated the provisions of subsection (c)(1), 
all other candidates eligible under subsection (a), with respect to 
that primary or general election, shall be entitled to payments from 
the House of Representatives Campaign Trust Fund under section 9511 of 
the Internal Revenue Code of 1986 in an amount equal to the amount in 
excess of $100,000 as provided under subsection (c)(1).
    ``(f) Independent Expenditures Offset.--
            ``(1) If a candidate certified under subsection (c) is 
        notified by the Commission, as provided under section 304 (d) 
        or (e) of the Federal Election Campaign Act (2 U.S.C. 434) that 
        independent expenditures are made during an election cycle by 
        one or more person or entity aggregating an amount in excess of 
        $10,000 in opposition to such certified candidate or for an 
        opponent of such candidate, the notified candidate shall be 
        entitled to payments from the House of Representatives Campaign 
        Trust Fund under section 9511 of the Internal Revenue Code of 
        1986 in an amount equal to 300 percent of the amount of such 
        independent expenditures.
            ``(2) Any person or entity found by the Commission to have 
        willfully or intentionally sought to subvert the intent of this 
        subsection shall be fined not more than $25,000, or imprisoned 
        not more than five years, or both.
    ``(g) Repayment of Trust Fund From Excess Funds.--
            ``(1) If at the conclusion of a primary election or general 
        election in which a candidate who has received payments from 
        the House of Representatives Campaign Trust Fund under section 
        9511 of the Internal Revenue Code of 1986 has excess campaign 
        funds attributable to that election, such candidate shall 
        within thirty days refund to the trust fund the amount of the 
        excess campaign funds which equals the pro rata share that 
        payments provided to such candidate from the trust fund 
        accounted for of such candidate's total aggregated receipts 
        from all sources with respect to such election.
            ``(2) In no case shall the amount of refund required under 
        paragraph (1) exceed the total aggregated payments provided to 
        such candidate from the trust fund with respect to that 
        election.
    ``(h) Indexing Regulation.--The Federal Election Commission shall 
issue regulations providing for the biennial indexing of the provisions 
of subsections (a) and (b).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to elections taking place after December 31, 1994.

SEC. 8. AMENDMENTS TO SECTION 304 OF THE FEDERAL ELECTION CAMPAIGN ACT 
              OF 1971 WITH RESPECT TO INDEPENDENT EXPENDITURES.

    Section 304 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
434) is amended by adding at the end the following:
    ``(d)(1) Any independent expenditures made, or obligated to be 
made, by any person or entity in an election for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress which in the aggregate total more than $10,000 shall be 
reported by such person or entity to the Commission within twenty-four 
hours after such independent expenditures are made. Thereafter, any 
independent expenditures by such person or entity in the same election 
cycle shall be reported by such person or entity to the Commission 
within twenty-four hours after such expenditures are made or obligated.
    ``(2) Such statements shall be filed with the Commission and the 
Secretary of State for the State involved and shall contain a statement 
under penalty of perjury by the person or entity making the independent 
expenditures, or by the person or entity incurring the obligation to 
make such expenditures, as the case may be, indicating whom the 
independent expenditures are actually intended to help elect or defeat. 
The Commission shall notify each candidate in the election of each such 
report within twenty-four hours after the report is made.
    ``(3) Notwithstanding the reporting requirements established in 
this paragraph, the Commission may make its own determination that a 
person or entity has made, or has incurred obligations to make, 
independent expenditures with respect to any election for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress which in the aggregate totals more than $10,000.
    ``(4) The Commission shall notify each candidate in the election 
about each such determination within twenty-four hours after each such 
determination is made.
    ``(5) For purposes of this section, an expenditure will be deemed 
to be made when it is incurred.
    ``(e) When two or more persons or entities, in cooperation, 
consultation, or concert with each other, make, or obligate to make, 
independent expenditures during any general, primary, or runoff 
election period for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress each such person or entity shall 
report to the Commission, under subsection (d), the amount of such 
expenditure or expenditures made by each such person or entity in 
coordination, consultation, or concert with such other person, persons, 
entity, or entities when the total amount of all expenditures made by 
such persons or entities in coordination, consultation, or concert with 
each other exceeds the applicable amount provided in such 
subsection.''.

SEC. 9. AMENDMENTS RELATING TO BROADCAST MEDIA RATES AND DISCLOSURES.

    (a) Section 315(b) of the Communications Act of 1934 (47 U.S.C. 
315(b)) is amended by inserting at the end thereof the following: 
``Provided, however, That in the case of a candidate who has made the 
certification required under section 325(c) of the Federal Election 
Campaign Act of 1971, paragraph (1)(A) shall be applied without regard 
to the phrase `class and' if the unit is at least one but not more than 
five minutes in length''.
    (b) Section 318(a) of the Federal Election Campaign Act of 1971 (2 
U.S.C. 441d(a)), is amended by--
            (1) striking out the period at the end of paragraph 3 and 
        inserting in lieu thereof; ``;''; and
            (2) adding at the end thereof the following:
            ``(4) if paid for or authorized by a candidate in an 
        election for the office of Representative in, or Delegate or 
        Resident Commissioner to, the Congress who is a candidate, or 
        the authorized committee of such candidate, who has not made 
        the certification required under section 325(c) of the Federal 
        Election Campaign Act of 1971, such communication shall also 
        contain--
                    ``(A) in the case of a radio broadcast station the 
                following oral, or
                    ``(B) in the case of a television broadcast state 
                the following oral and printed, or
                    ``(C) in the case of a newspaper, magazine, outdoor 
                advertising facility, direct mailing, or any other type 
                of general public political advertising the following 
                printed
        sentence: `This candidate has not agreed to abide by the 
        spending limits for this congressional election campaign set 
        forth in the Federal Campaign Act.'.''.

SEC. 10. PENALTIES.

    (a) It is unlawful for any person knowingly and willfully--
            (1) to furnish any false, fictitious, or fraudulent 
        evidence, books, or information (including any certification, 
        verification, notice, or report) to the Commission under this 
        Act, or to include in any evidence, books, or information so 
        furnished any misrepresentation of a material fact, or to 
        falsify or conceal any evidence, books, or information relevant 
        to a certification by the Commission under this Act; or,
            (2) to fail to furnish to the Commission any records, 
        books, or information requested by it for purposes of this Act.
    (b) Any person who violates the provisions of paragraph (a)(1) 
shall be fined not more than $10,000, or imprisoned not more than five 
years, or both.

SEC. 11. RESTRICTIONS ON CONTROL OF CERTAIN TYPES OF POLITICAL 
              COMMITTEES BY CANDIDATES.

    Section 303 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
432) is amended by adding at the end the following:
    ``(j) A candidate for the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress of the United States may not 
establish, maintain, or control a political committee, other than an 
authorized committee of the candidate or a committee of a political 
party.''.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums 
as may be necessary for the purpose of carrying out its functions under 
this Act.

SEC. 13. EFFECIVE DATE.

    Except as otherwise provided in this Act, this Act shall take 
effect after December 31, 1994.

SEC. 14. SEVERABILITY.

    If any provision of this Act or any amendment made to this Act, or 
the application of any such provision to any person or circumstances is 
held invalid, the validity of any other such provision, and the 
application of such provision to other persons and circumstances shall 
not be affected thereby.
                                 <all>
HR 296 IH----2
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