I 

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.

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. TABLE OF CONTENTS. 

2 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.
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1 TITLE I—PUBLIC FUNDING PRO2 GRAM FOR CONGRESSIONAL 

3 CANDIDATES 

4 SEC. 101. ESTABLISHMENT OF PUBLIC FUNDING PROGRAM 

5 FOR CONGRESSIONAL CANDIDATES. 

6 The Federal Election Campaign Act of 1971 is 

7 amended by adding at the end the following new title: 

8 ‘‘TITLE V—PUBLIC FUNDING 

9 PROGRAM FOR CONGRES10 SIONAL CANDIDATES 

11 ‘‘Subtitle A—Program 

12 Requirements 

13 ‘‘SEC. 501. ESTABLISHMENT OF PROGRAM. 

14 ‘‘There is established a program under which the 

15 Commission shall certify candidates for election for Fed16 eral office as certified public subsidy candidates in accord17 ance with this subtitle and make payments to such can18 didates in accordance with subtitle B. 

19 ‘‘SEC. 502. REQUIREMENTS FOR ELIGIBILITY OF CERTIFIED 

20 PUBLIC SUBSIDY CANDIDATES. 

21 ‘‘(a) IN GENERAL.—In this title, a ‘certified public 

22 subsidy candidate’ is a candidate for election for the office 

23 of Senator or Representative in, or Delegate or Resident 

24 Commissioner to, the Congress, who is certified by the 
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1 Commission as meeting the requirements of this title with 

2 respect to the election. 

3 ‘‘(b) PROCEDURE FOR CERTIFICATION.—The Com4 mission shall certify that a candidate meets the require5 ments for a certified public subsidy candidate under this 

6 title if the candidate submits an application to the Com7 mission which contains the following information and as8 surances: 

9 ‘‘(1) A certification that the candidate has met 

10 the requirements of section 503 regarding contribu11 tions from in-State individual residents. 

12 ‘‘(2) Assurances that the candidate will meet 

13 the applicable spending limits and fundraising re14 quirements of subtitle B. 

15 ‘‘(3) Assurances that the candidate will meet 

16 the requirements of subtitle C regarding the fur17 nishing of rebate certificates to individuals making 

18 contributions to the principal campaign committee of 

19 the candidate. 

20 ‘‘(4) Assurances that the candidate will provide 

21 the Commission with ongoing information (at such 

22 times and in such form as the Commission may re23 quire) to enable the Commission to determine wheth24 er the candidate is in compliance with the applicable 

25 requirements of this title.
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1 ‘‘(5) Such other information and assurances as 

2 the Commission may require. 

3 ‘‘(c) DEADLINE FOR APPLICATION.—

4 ‘‘(1) IN GENERAL.—A candidate who seeks to 

5 be certified as a certified public subsidy candidate 

6 shall submit the application described in subsection 

7 (b) to the Commission at the same time that the 

8 principal campaign committee of the candidate files 

9 its statement of organization with the Commission 

10 under section 303. 

11 ‘‘(2) SPECIAL RULE FOR GENERAL ELEC12 TIONS.—If a candidate who is a certified public sub13 sidy candidate with respect to a primary election (or 

14 convention or caucus of a political party which has 

15 authority to nominate a candidate) wins the election 

16 or is otherwise nominated to serve as the candidate 

17 of the party in the general election, the candidate 

18 shall be deemed to have submitted the application 

19 described in subsection (b) with respect to the suc20 ceeding general election. 

21 ‘‘SEC. 503. REQUIRING CANDIDATES TO RAISE MINIMUM 

22 AMOUNT OF FUNDS FROM IN-STATE INDI23 VIDUAL CONTRIBUTORS. 

24 ‘‘(a) IN GENERAL.—A candidate may not be certified 

25 as a certified public subsidy candidate under this title until 
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1 the candidate has received contributions from in-State in2 dividual residents in an aggregate amount equal to or 

3 greater than 2.5 percent of the maximum amount of ex4 penditures the candidate may make with respect to the 

5 election, as determined under section 521. 

6 ‘‘(b) LIMIT ON MAXIMUM AMOUNT TAKEN INTO AC7 COUNT.—In determining whether a candidate has received 

8 the minimum amount of contributions required under sub9 section (a), there shall not be taken into account any 

10 amounts provided in excess of $100 by the same indi11 vidual. 

12 ‘‘(c) IN-STATE INDIVIDUAL RESIDENT DEFINED.—

13 In this section, an ‘in-State individual resident’ is an indi14 vidual who resides in the State the candidate seeks to rep15 resent (in the case of a candidate for election for the office 

16 of Senator) or the State in which the Congressional dis17 trict the candidate seeks to represent is located (in the 

18 case of a candidate for election for the office of Represent19 ative in, or Delegate or Resident Commissioner to, the 

20 Congress). 
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1 ‘‘Subtitle B—General Election Pay2 ments for Certified Public Sub3 sidy Candidates 

4 ‘‘SEC. 511. OPTION TO RECEIVE PUBLIC SUBSIDY PAY5 MENTS. 

6 ‘‘The Commission shall make payments in accordance 

7 with this subtitle with respect to a general election to each 

8 certified public subsidy candidate who notifies the Com9 mission that the candidate seeks such payments with re10 spect to the election. 

11 ‘‘SEC. 512. AMOUNT OF PAYMENT; TIMING. 

12 ‘‘Not later than 10 days after receiving notice under 

13 section 511, the Commission shall make a payment to the 

14 candidate in an amount equal to one-third of the max15 imum amount of expenditures the candidate may make 

16 with respect to the election, as determined under section 

17 521. 

18 ‘‘SEC. 513. TREATMENT OF MINOR PARTIES. 

19 ‘‘Notwithstanding any other provision of this title, a 

20 candidate is not eligible to receive a payment under section 

21 512 with respect to an election unless the candidate of 

22 the candidate’s political party received 5 percent or more 

23 of the total number of votes received by all candidates for 

24 the office involved in the preceding general election. 
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1 ‘‘Subtitle C—Spending Limits and 

2 Fundraising Requirements for 

3 Certified Candidates 

4 ‘‘SEC. 521. LIMIT ON EXPENDITURES BY CERTIFIED CAN5 DIDATES. 

6 ‘‘(a) GENERAL ELECTION.—The amount of expendi7 tures made with respect to a general election by the prin8 cipal campaign committee of a certified public subsidy 

9 candidate may not exceed an amount equal to the product 

10 of $1 and—

11 ‘‘(1) in the case of a candidate for the office of 

12 Representative in, or Delegate or Resident Commis13 sioner to, the Congress, the population of the district 

14 the candidate seeks to represent; or 

15 ‘‘(2) in the case of a candidate for the office of 

16 Senator, the population of the State the candidate 

17 seeks to represent. 

18 ‘‘(b) PRIMARY ELECTION.—The amount of expendi19 tures made with respect to an election other than a general 

20 election by the principal campaign committee of a certified 

21 public subsidy candidate may not exceed 50 percent of the 

22 limit established under subsection (a) for expenditures 

23 with respect to a general election. 

24 ‘‘(c) INCREASE IN LIMIT FOR CANDIDATES FACING

25 NONPARTICIPATING OPPONENTS.—
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1 ‘‘(1) IN GENERAL.—The amount of the limit es2 tablished under subsection (a) or subsection (b) with 

3 respect to a candidate in an election shall be in4 creased by an amount equal to the product of—

5 ‘‘(A) the limit established under such sub6 section; and 

7 ‘‘(B) the number of candidates seeking the 

8 same office in the election who are not certified 

9 public subsidy candidates under this title with 

10 respect to the election. 

11 ‘‘(2) TREATMENT OF CANDIDATES OF MINOR

12 PARTIES.—In determining the number of candidates 

13 under paragraph (1)(B), there shall not be taken 

14 into account any candidate who is ineligible to re15 ceive a payment under this title pursuant to section 

16 513. 

17 ‘‘SEC. 522. SOURCE OF FUNDS USED FOR EXPENDITURES. 

18 ‘‘(a) IN GENERAL.—The funds used by the principal 

19 campaign committee of a certified public subsidy can20 didate for making expenditures with respect to an election 

21 shall be derived as follows: 

22 ‘‘(1) Not more than one-third of the funds shall 

23 be derived from contributions made to the committee 

24 by other political committees, except that not more 

25 than 10 percent of the funds may be derived from 
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1 contributions made by political committees of polit2 ical parties. 

3 ‘‘(2) Except as provided in subsection (b), the 

4 remainder of the funds shall be derived from con5 tributions made to the committee by individuals. 

6 ‘‘(b) TREATMENT OF CANDIDATES RECEIVING PUB7 LIC SUBSIDY PAYMENTS FOR GENERAL ELECTION.—In 

8 the case of the principal campaign committee of a certified 

9 public subsidy candidate receiving public subsidy pay10 ments for a general election under subtitle B, one-third 

11 of the funds used for such election by the committee shall 

12 be provided by the Commission as a payment under sec13 tion 512. 

14 ‘‘Subtitle D—Tax Rebate Certifi15 cates for Individual Contribu16 tors 

17 ‘‘SEC. 531. TAX REBATE CERTIFICATES FOR INDIVIDUALS 

18 MAKING CONTRIBUTIONS TO CANDIDATE. 

19 ‘‘Each certified public subsidy candidate shall provide 

20 a tax rebate certificate to each individual who makes a 

21 contribution to the candidate’s principal campaign com22 mittee after the candidate is certified under section 502, 

23 for purposes of enabling the individual to receive the re24 fundable credit provided under section 36 of the Internal 

25 Revenue Code of 1986. 
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1 ‘‘SEC. 532. COORDINATION WITH SECRETARY OF THE 

2 TREASURY. 

3 ‘‘In issuing regulations to carry out this subtitle, the 

4 Commission shall consult with the Secretary of the Treas5 ury. 

6 ‘‘Subtitle E—Enforcement 

7 ‘‘SEC. 541. WITHDRAWAL OF CERTIFICATION. 

8 ‘‘If the Commission determines that a certified public 

9 subsidy candidate has made expenditures in excess of the 

10 applicable limits under section 521, has failed to meet any 

11 other requirement of this title, or otherwise no longer 

12 meets the requirements for certification under subtitle A, 

13 the Commission shall revoke the candidate’s certification. 

14 ‘‘SEC. 542. PENALTIES FOR SPENDING IN EXCESS OF LIM15 ITS. 

16 ‘‘(a) NOTIFICATION OF EXCESS EXPENDITURES.—If 

17 the Commission determines that a certified public subsidy 

18 candidate with respect to an election has made expendi19 tures for the election in excess of the applicable limit 

20 under section 521, the Commission shall notify the can21 didate. 

22 ‘‘(b) ASSESSMENT OF PENALTY.—Any certified pub23 lic subsidy candidate with respect to an election who 

24 makes expenditures for the election in excess of the appli25 cable limit under section 521 shall pay a civil money pen-
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1 alty to the Commission in an amount determined as fol2 lows: 

3 ‘‘(1) In the case of a candidate who makes ex4 penditures which exceed the limit by 2.5 percent or 

5 less, an amount equal to the amount of the excess 

6 expenditures. 

7 ‘‘(2) In the case of a candidate who makes ex8 penditures which exceed the limit by more than 2.5 

9 percent and less than 5 percent, an amount equal to 

10 three times the amount of the excess expenditures. 

11 ‘‘(3) In the case of a candidate who makes ex12 penditures which exceed the limit by more than 5 

13 percent, an amount equal to three times the amount 

14 of the excess expenditures plus (if the Commission 

15 determines that the candidate knowingly and will16 fully made such excess expenditures) an additional 

17 civil money penalty in an amount determined by the 

18 Commission.’’. 

19 SEC. 102. EFFECTIVE DATE. 

20 The amendments made by section 101 shall apply 

21 with respect to elections occurring after December 2004. 
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1 TITLE II—INCOME TAX CHECK2 OFF FOR FUNDING FOR CER3 TIFIED PUBLIC SUBSIDY CAN4 DIDATES 

5 SEC. 201. DESIGNATION OF INCOME TAX PAYMENTS FOR 

6 FUND FOR CERTIFIED PUBLIC SUBSIDY CAN7 DIDATES. 

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

9 Internal Revenue Code of 1986 (relating to information 

10 and returns) is amended by adding at the end the fol11 lowing new part: 

12 ‘‘PART IX—DESIGNATION OF INCOME TAX PAY13 MENTS TO CERTIFIED PUBLIC SUBSIDY CAN14 DIDATE FUND

‘‘Sec. 6098. Designation to Certified Public Subsidy Candidate 

Fund.

15 ‘‘SEC. 6098. DESIGNATION TO CERTIFIED PUBLIC SUBSIDY 

16 CANDIDATE FUND. 

17 ‘‘(a) IN GENERAL.—Every individual (other than a 

18 nonresident alien) whose adjusted income tax liability for 

19 the taxable year is $1 or more may designate that $1 shall 

20 be paid over to the Certified Public Subsidy Candidate 

21 Fund in accordance with the provisions of section 9511. 

22 In the case of a joint return of husband and wife having 

23 an adjusted income tax liability of $2 or more, each spouse 

24 may designate that $1 shall be paid to the fund. 
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1 ‘‘(b) ADJUSTED INCOME TAX LIABILITY.—For pur2 poses of subsection (a), the term ‘adjusted income tax li3 ability’ means, for any individual for any taxable year, the 

4 excess (if any) of—

5 ‘‘(1) the income tax liability (as defined in sec6 tion 6096(b)) of the individual for the taxable year, 

7 over 

8 ‘‘(2) any amount designated by the individual 

9 (and, in the case of a joint return, any amount des10 ignated by the individual’s spouse) under section 

11 6096(a) for such taxable year. 

12 ‘‘(c) MANNER AND TIME OF DESIGNATION.—A des13 ignation under subsection (a) may be made with respect 

14 to any taxable year—

15 ‘‘(1) at the time of filing the return of the tax 

16 imposed by chapter 1 for such taxable year, or 

17 ‘‘(2) at any other time (after the time of filing 

18 the return of the tax imposed by chapter 1 for such 

19 taxable year) specified in regulations prescribed by 

20 the Secretary. 

21 Such designation shall be made in such manner as the 

22 Secretary prescribes by regulations except that, if such 

23 designation is made at the time of filing the return of the 

24 tax imposed by chapter 1 for such taxable year, such des-
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1 ignation shall be made either on the first page of the re2 turn or on the page bearing the taxpayer’s signature.’’

3 (b) CERTIFIED PUBLIC SUBSIDY CANDIDATE

4 FUND.—Subchapter A of chapter 98 of such Code (relat5 ing to establishment of trust funds) is amended by adding 

6 at the end the following new section: 

7 ‘‘SEC. 9511. CERTIFIED PUBLIC SUBSIDY CANDIDATE FUND. 

8 ‘‘(a) CREATION OF TRUST FUND.—There is estab9 lished in the Treasury of the United States a trust fund 

10 to be known as the ‘Certified Public Subsidy Candidate 

11 Fund’, consisting of such amounts as may be appropriated 

12 or credited to such fund as provided in this section or sec13 tion 9602(b). 

14 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here15 by appropriated to the Certified Public Subsidy Candidate 

16 Fund amounts equivalent to the amounts designated 

17 under section 6098. 

18 ‘‘(c) EXPENDITURES.—Amounts in the Certified 

19 Public Subsidy Candidate Fund shall be available, as pro20 vided in appropriation Acts, for purposes of making pay21 ments to certified public subsidy candidates under title V 

22 of the Federal Election Campaign Act of 1971, to the ex23 tent that such amounts exceed the aggregate of all Federal 

24 administrative costs attributable to the implementation of 
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1 section 6098, subsections (a) and (b) of this section, and 

2 (with respect to such fund) section 9602.’’

3 (c) CLERICAL AMENDMENTS.—

4 (1) The table of parts for subchapter A of chap5 ter 61 of such Code is amended by adding at the 

6 end the following new item:

‘‘Part IX. Designation of income tax payments to Certified Public 

Subsidy Candidate Fund.’’ 

7 (2) The table of sections for subchapter A of 

8 chapter 98 of such Code is amended by adding at 

9 the end the following new item:

‘‘Sec. 9511. Certified Public Subsidy Candidate Fund.’’

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2003. 

13 TITLE III—TAX CREDIT FOR 

14 CONTRIBUTIONS TO PARTICI15 PATING CANDIDATES 

16 SEC. 301. REFUNDABLE CREDIT FOR CONTRIBUTIONS TO 

17 CERTIFIED PUBLIC SUBSIDY CANDIDATES. 

18 (a) IN GENERAL.—Subpart C of part IV of sub19 chapter A of chapter 1 of the Internal Revenue Code of 

20 1986 (relating to refundable credits) is amended by redes21 ignating section 36 as section 37 and by inserting after 

22 section 35 the following new section: 
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1 ‘‘SEC. 36. CREDIT FOR CONTRIBUTIONS TO CERTIFIED PUB2 LIC SUBSIDY CANDIDATES. 

3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in4 dividual, there shall be allowed as a credit against the tax 

5 imposed by this subtitle for the taxable year an amount 

6 equal to the aggregate amount of contributions to certified 

7 public subsidy candidates made by such individual during 

8 such taxable year. 

9 ‘‘(b) LIMITATION.—The amount of the credit allowed 

10 under subsection (a) for a taxable year shall not exceed 

11 $100. 

12 ‘‘(c) CONTRIBUTIONS TO CERTIFIED PUBLIC SUB13 SIDY CANDIDATES.—For purposes of subsection (a), the 

14 term ‘contributions to certified public subsidy candidates’ 

15 means the amount of a contribution for which a tax rebate 

16 certificate is issued under section 531 of the Federal Elec17 tion Campaign Act of 1971.’’. 

18 (b) TECHNICAL AMENDMENTS.—

19 (1) Paragraph (2) of section 1324(b) of title 

20 31, United States Code, is amended by inserting ‘‘or 

21 from section 36 of such Code’’ before the period at 

22 the end. 

23 (2) The table of sections for such subpart C of 

24 the Internal Revenue Code of 1986 is amended by 

25 striking the item relating to section 36 and inserting 

26 the following new items:
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‘‘Sec. 36. Credit for contributions to certified public subsidy candidates. 

‘‘Sec. 37. Overpayment of taxes.’’.

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

2 this section shall apply to contributions made with respect 

3 to elections occurring after December 31, 2004, in taxable 

4 years beginning after such date.

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