II

103D CONGRESS

1ST SESSION S. 1095

To amend the Internal Revenue Code of 1986 to allow individuals to direct

that part or all of their income tax refunds be contributed to a trust

fund established for the relief of domestic and international hunger,

and to establish a commission to oversee the distribution of such

contributions.

IN THE SENATE OF THE UNITED STATES

JUNE 10, 1993

Mr. DASCHLE introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow individuals to direct that part or all of their income tax

refunds be contributed to a trust fund established for

the relief of domestic and international hunger, and to

establish a commission to oversee the distribution of

such contributions.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Hunger Emergency

5 Assistance and Relief Trust Act of 1993’’.
2

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1 SEC. 2. ELECTION OF TAXPAYERS TO DIRECT INCOME TAX

2 REFUNDS TO HUNGER EMERGENCY ASSIST3 ANCE AND RELIEF TRUST.

4 (a) IN GENERAL.—Section 6402 of the Internal Rev5 enue Code of 1986 (relating to authority to make credits

6 or refunds) is amended by redesignating subsections (e),

7 (f), (g), (h), and (i) as subsections (g), (h), (i), (j), and

8 (k), respectively, and by inserting after subsection (d) the

9 following new subsections:

10 ‘‘(e) OFFSET OF AMOUNT OF INCOME TAX REFUND

11 DESIGNATED TO BE PAID OVER TO HUNGER EMER12 GENCY ASSISTANCE AND RELIEF TRUST.—

13 ‘‘(1) IN GENERAL.—The amount of any over14 payment of income tax to be refunded to the person

15 making the overpayment shall be reduced by the

16 sum designated by the person on the person’s return

17 of tax to be paid over to the Hunger Emergency As18 sistance and Relief Trust.

19 ‘‘(2) NOTICE OF REDUCTION PROVIDED ON RE20 QUEST.—The Secretary shall, on request of any per21 son who designates an amount to be paid over under

22 paragraph (1), notify the person that such amount

23 has been paid over to the Hunger Emergency Assist24 ance and Relief Trust.

25 ‘‘(f) PRIORITIES FOR OFFSET.—Any overpayment by

26 a person shall be reduced pursuant to subsections (c), (d),
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1 and (e), and in that order, before such overpayment is

2 credited to the future liability for tax of such person pur3 suant to subsection (b).’’.

4 (b) CONFORMING AMENDMENTS.—

5 (1) Subsection (a) of section 6402 of the Inter6 nal Revenue Code of 1986 is amended by striking

7 ‘‘(c) and (d),’’ and inserting ‘‘(c), (d), and (e),’’.

8 (2) Subsection (c) of such section is amended

9 by striking the last sentence.

10 (3) Paragraph (2) of subsection (d) of such sec11 tion is amended—

12 (A) by striking the first sentence, and

13 (B) by amending the heading of such para14 graph to read as follows:

15 ‘‘(2) APPLICATION OF OVERPAYMENT AGAINST

16 MULTIPLE DEBTS.—’’.

17 SEC. 3. ESTABLISHMENT OF HUNGER EMERGENCY ASSIST18 ANCE AND RELIEF TRUST.

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

20 Internal Revenue Code of 1986 (relating to establishment

21 of trust funds) is amended by adding at the end the follow22 ing new section:
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1 ‘‘SEC. 9512. HUNGER EMERGENCY ASSISTANCE AND RELIEF

2 TRUST.

3 ‘‘(a) IN GENERAL.—There is established in the

4 Treasury of the United States a trust fund to be known

5 as the ‘Hunger Emergency Assistance and Relief Trust’,

6 consisting of such amounts as may be transferred or cred7 ited to the Hunger Emergency Assistance and Relief

8 Trust as provided in this section or section 9602(b).

9 ‘‘(b) TRANSFERS TO HUNGER EMERGENCY ASSIST10 ANCE AND RELIEF TRUST OF AMOUNTS DESIGNATED TO

11 THE TRUST BY TAXPAYERS.—The Secretary shall, from

12 time to time, transfer to the trust an amount equal to

13 the sum of the amounts by which overpayments of tax are

14 reduced under section 6402(e).

15 ‘‘(c) EXPENDITURES FROM HUNGER EMERGENCY

16 ASSISTANCE AND RELIEF TRUST.—Amounts in the Hun17 ger Emergency Assistance and Relief Trust shall be made

18 available to qualified hunger relief services organizations

19 (as defined in section 9052(a)) as provided in section

20 9051.’’.

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

22 for subchapter A of chapter 98 of such Code is amended

23 by adding at the end the following new item:

‘‘Sec. 9512. Hunger Emergency Assistance and Relief Trust.’’.
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1 SEC. 4. DISTRIBUTION OF HUNGER RELIEF FUNDS.

2 (a) IN GENERAL.—Subtitle H of the Internal Reve3 nue Code of 1986 (relating to financing of presidential

4 election campaigns) is amended by adding at the end the

5 following new chapter:

6 ‘‘CHAPTER 97—DISTRIBUTION OF HUNGER

7 RELIEF FUNDS

‘‘SUBCHAPTER A. Distribution of funds.

‘‘SUBCHAPTER B. Hunger Commission.

8 ‘‘Subchapter A—Distribution of Funds

‘‘Sec. 9051. Payments to hunger relief services organizations.

‘‘Sec. 9052. Definitions.

‘‘Sec. 9053. Repayments.

‘‘Sec. 9054. Prohibited acts.

‘‘Sec. 9055. Authority of Hunger Commission to inform State attorney general of possible State law violations.

‘‘Sec. 9056. Reports to Congress; regulations.

9 ‘‘SEC. 9051. PAYMENTS TO HUNGER RELIEF SERVICES OR10 GANIZATIONS.

11 ‘‘(a) AUTHORIZED BY HUNGER COMMISSION.—On

12 receipt of an authorization from the Hunger Commission

13 under section 9062(a) for payment to a qualified hunger

14 relief services organization, the Secretary shall pay to the

15 organization out of the Hunger Emergency Assistance and

16 Relief Trust established by section 9512 the amount au17 thorized by the Commission to be paid.

18 ‘‘(b) USE OF PAYMENTS.—

19 ‘‘(1) UNDER CONTROL OF PAYEE.—Amounts

20 paid to any qualified hunger relief services organiza-
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1 tion under section 9512(c) (relating to expenditures

2 from Hunger Emergency Assistance and Relief

3 Trust) shall, subject to paragraph (2), be under the

4 control of the organization.

5 ‘‘(2) LIMITATION ON ADMINISTRATIVE EX6 PENSES.—An organization shall not use more than

7 10 percent of the sum of any amount paid to it

8 under section 9512(c) and any contribution made by

9 it to match such paid amount, for administrative

10 expenses.

11 ‘‘(c) NO ENTITLEMENT CREATED BY THIS CHAP12 TER.—Nothing in this chapter shall be construed to create

13 any entitlement to any payment under this chapter.

14 ‘‘SEC. 9052. DEFINITIONS.

15 ‘‘(a) QUALIFIED HUNGER RELIEF SERVICES ORGA16 NIZATION.—For purposes of this chapter, the term ‘quali17 fied hunger relief services organization’ means any organi18 zation which—

19 ‘‘(1) is described in section 501(c)(3),

20 ‘‘(2) is exempt from Federal income taxation

21 under section 501(a),

22 ‘‘(3) is recognized under the laws of the State

23 in which it is organized and the laws of the State

24 in which it maintains its principal place of business,
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1 as a charitable organization which has as its prin2 cipal purpose the relief of hunger,

3 ‘‘(4) has been in existence for at least 2 years,

4 ‘‘(5) uses not more than 22 percent of its an5 nual budget for administrative costs and evidences

6 such use in its annual report,

7 ‘‘(6) satisfies the Commission that the organi8 zation has developed, and is able to implement, a

9 hunger relief plan,

10 ‘‘(7) agrees in writing to obtain and furnish to

11 the Commission such information or evidence as the

12 Commission may request concerning the operations

13 of the organization,

14 ‘‘(8) agrees in writing to keep and furnish to

15 the Commission such records, books, and other in16 formation as the Commission may request, and

17 ‘‘(9) agrees, on request of the Commission, to

18 be audited and examined by the Commission, and to

19 pay any amounts required to be paid under section

20 9053.

21 ‘‘(b) HUNGER RELIEF PLAN.—For purposes of this

22 chapter, the term ‘hunger relief plan’ means a plan for

23 the amelioration or alleviation of actual or threatened star24 vation or severe malnutrition of individuals.
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1 ‘‘(c) COMMISSION.—For purposes of this chapter, the

2 term ‘Commission’ means the Hunger Commission estab3 lished by section 9061.

4 ‘‘SEC. 9053. REPAYMENTS.

5 ‘‘(a) IN GENERAL.—If the Commission determines

6 that any organization receiving any amount under section

7 9512(c) has engaged in any prohibited act described in

8 section 9054—

9 ‘‘(1) the Commission shall notify the organiza10 tion of the act and the amounts (if any) involved,

11 ‘‘(2) the organization shall pay to the Secretary

12 of the Treasury an amount equal to the amounts (if

13 any) involved, and

14 ‘‘(3) the Commission may direct the Secretary

15 of the Treasury to deny the organization exemption

16 from taxation under section 501(a) only for taxable

17 years after the taxable year during which the prohib18 ited act occurred.

19 ‘‘(b) DEPOSIT OF REPAYMENTS.—Any payment re20 ceived by the Secretary of the Treasury under subsection

21 (a)(2) shall be deposited in the Hunger Emergency Assist22 ance and Relief Trust.
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1 ‘‘SEC. 9054. PROHIBITED ACTS.

2 ‘‘It shall be unlawful for any organization which is

3 paid any amount under section 9512(c) in respect of a

4 hunger relief plan to do any of the following acts:

5 ‘‘(1) FAIL TO MATCH PAYMENT.—Fail to make

6 a matching contribution to the hunger relief plan in

7 an amount equal to such paid amount.

8 ‘‘(2) FAIL TO PROPERLY USE PAYMENT.—Fail

9 to use such paid amount and the matching contribu10 tion in connection with the hunger relief plan in re11 spect of which such amount is paid.

12 ‘‘(3) INCUR EXCESSIVE ADMINISTRATIVE EX13 PENSES.—Use more than 10 percent of any such

14 paid amount or more than 10 percent of any match15 ing contribution during any calendar year for admin16 istrative expenses.

17 ‘‘(4) NOT COMPLY WITH CERTAIN COMMISSION

18 REQUESTS.—Fail to comply with any request by the

19 Commission described in paragraph (7), (8), or (9)

20 of section 9052(a).

21 ‘‘SEC. 9055. AUTHORITY OF HUNGER COMMISSION TO IN22 FORM STATE ATTORNEY GENERAL OF POS23 SIBLE STATE LAW VIOLATIONS.

24 ‘‘The Commission may furnish the Attorney General

25 of the State in which any organization receiving amounts

26 under this chapter is organized or maintains its principal
10

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1 place of business any information received by the Commis2 sion indicating that the organization may be in violation

3 of State law.

4 ‘‘SEC. 9056. REPORTS TO CONGRESS; REGULATIONS.

5 ‘‘(a) REPORTS.—On or before June 1, 1994, and an6 nually thereafter, the Commission shall submit to the

7 Committee on Appropriations of the House of Representa8 tives and the Committee on Appropriations of the Senate,

9 a report containing a detailed accounting of funds author10 ized to be paid from the Hunger Emergency Assistance

11 and Relief Trust.

12 ‘‘(b) REGULATIONS.—The Commission may prescribe

13 such regulations concerning the conduct of examinations

14 and audits, and the keeping and submission of records,

15 books, and other information, as it deems necessary to

16 carry out the functions and duties imposed on it by this

17 Chapter.

18 ‘‘Subchapter B—Hunger Commission

‘‘Sec. 9061. Establishment.

‘‘Sec. 9062. Duties.

‘‘Sec. 9063. Membership.

‘‘Sec. 9064. Term of office.

‘‘Sec. 9065. Compensation of Commission members.

‘‘Sec. 9066. Powers.

‘‘Sec. 9067. Director and staff of Commission.

‘‘Sec. 9068. Rules governing Commission meetings.

‘‘Sec. 9069. Authorization of appropriations.

19 ‘‘SEC. 9061. ESTABLISHMENT.

20 ‘‘There is established a commission to be known as

21 the Hunger Commission.
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1 ‘‘SEC. 9062. DUTIES.

2 ‘‘(a) DISTRIBUTION OF FUNDS TO QUALIFIED HUN3 GER RELIEF SERVICES ORGANIZATIONS.—

4 ‘‘(1) MATCHING GRANTS.—The Commission

5 shall direct the Secretary of the Treasury to pay

6 from the Hunger Emergency Assistance and Relief

7 Trust any amount the Commission deems appro8 priate, to any qualified hunger relief services organi9 zation for the purpose of providing hunger relief

10 services under a hunger relief plan, if the organiza11 tion agrees to, and demonstrates to the Commission

12 the capacity to, contribute an amount for such pur13 pose equal to the amount to be paid to the organiza14 tion.

15 ‘‘(2) LIMITATION.—The Commission may not

16 direct under subsection (a) the payment of more

17 than $100,000 to a single organization in a single

18 fiscal year.

19 ‘‘(b) FUNDS TO BE DISTRIBUTED WITHIN 180

20 DAYS.—Within 180 days after the date any amount is re21 ceived in the Hunger Emergency Assistance and Relief

22 Trust, the Commission shall authorize the payment of

23 such amount to 1 or more qualified hunger relief services

24 organizations.

25 ‘‘(c) AT LEAST 50 PERCENT OF FUNDS TO BE USED

26 FOR DOMESTIC HUNGER RELIEF.—At least 50 percent of
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1 amounts received into the Hunger Emergency Assistance

2 and Relief Trust during any calendar year shall be paid

3 to qualified hunger relief services organizations for the

4 purpose of providing hunger relief services in the United

5 States (or bearing administrative expenses associated with

6 the provision of such services). To the extent practical,

7 the Commission shall assure that both rural and urban

8 areas of the United States receive a fair proportion of the

9 hunger relief services provided in the United States under

10 this chapter.

11 ‘‘SEC. 9063. MEMBERSHIP.

12 ‘‘(a) 5 MEMBERS.—The Commission shall consist of

13 5 members.

14 ‘‘(b) APPOINTMENT.—

15 ‘‘(1) PRESIDENT APPOINTS 4.—During January

16 1994, the President shall appoint 4 Commission

17 members. 2 appointees shall be from the Democratic

18 Party and the other 2 appointees shall be from the

19 Republican Party.

20 ‘‘(2) PRESIDENTIAL APPOINTEES APPOINT

21 CHAIR.—The 4 Commission members appointed

22 under paragraph (1) shall appoint another individual

23 to be the Chair of the Commission.
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1 ‘‘(c) VACANCIES.—A vacancy in the Commission shall

2 be filled in the manner in which the original appointment

3 was made.

4 ‘‘SEC. 9064. TERM OF OFFICE.

5 ‘‘(a) 3 YEARS.—Appointment to the Commission

6 shall be for a term of 3 years to begin on January 1, 1994,

7 and every 3rd year thereafter.

8 ‘‘(b) EXCEPTIONS.—

9 ‘‘(1) FILLING OF VACANCY.—Any member ap10 pointed to fill a vacancy occurring before the expira11 tion of the term for which the predecessor for such

12 member was appointed shall be appointed only for

13 the remainder of such term.

14 ‘‘(2) SUCCESSION.—A member may serve after

15 the expiration of the term of office of such member

16 until his successor has taken office.

17 ‘‘SEC. 9065. COMPENSATION OF COMMISSION MEMBERS.

18 ‘‘Commission members shall not receive pay, allow19 ances, or benefits by reason of their service on the Com20 mission.

21 ‘‘SEC. 9066. POWERS.

22 ‘‘(a) HEARINGS.—The Commission, may, in the

23 United States, for the purpose of performing its duties

24 under this chapter, hold such hearings, sit and act at such

25 times and places, take such testimony, receive such evi-
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1 dence, and conduct such audits of organizations request2 ing or receiving funds from the Commission, as the Com3 mission considers appropriate. The Commission may ad4 minister oaths or affirmations to witnesses appearing be5 fore it.

6 ‘‘(b) OBTAINING OFFICIAL DATA.—The Commission

7 may secure directly from any department or agency of the

8 United States information necessary to enable it to per9 form duties of the Commission under this chapter. On re10 quest of the Chair of the Commission, the head of such

11 department or agency shall furnish such information to

12 the Commission.

13 ‘‘(c) SUBPOENAS.—

14 ‘‘(1) AUTHORITY TO ISSUE SUBPOENAS.—The

15 Commission may issue subpoenas requiring wit16 nesses to attend and testify and to produce evidence

17 relating to any matter under investigation by the

18 Commission. Such witness attendance and produc19 tion of evidence may be required from any place

20 within or without the United States at any des21 ignated place of hearing in the United States.

22 ‘‘(2) GRANT OF IMMUNITY.—An individual may

23 not be prosecuted or subjected to any penalty or for24 feiture by reason of any transaction, matter, or

25 thing concerning which such individual is compelled
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1 to testify or produce evidence, after having claimed

2 the privilege against self-incrimination, except such

3 individual shall not be exempt from prosecution and

4 punishment for perjury committed in so testifying.

5 Excuse from attending and testifying or from pro6 ducing books, records, correspondence, documents,

7 or other evidence in obedience to a subpoena, on the

8 ground that the testimony or evidence required of an

9 individual may tend to incriminate or subject such

10 individual to a penalty or forfeiture shall not be

11 granted to any such individual.

12 ‘‘(3) CONSEQUENCES OF REFUSAL TO OBEY

13 SUBPOENA.—Any individual issued a subpoena

14 under this subsection who refuses to obey such sub15 poena or is guilty of contumacy, may, on application

16 by the Commission, be ordered by any court of the

17 United States in the judicial district in which the

18 hearing is conducted or within which such individual

19 if found, resides, or transacts business, to appear be20 fore the Commission to produce evidence or give tes21 timony relating to any matter under investigation.

22 Such court may punish any failure to obey such

23 order as a contempt of such court.

24 ‘‘(4) SERVICE OF SUBPOENA.—Any subpoena

25 by the Commission shall be served in the manner
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1 provided for the service of subpoenas issued by a

2 United States district court under the Federal Rules

3 of Civil Procedure for the United States district

4 courts.

5 ‘‘(5) SERVICE OF OTHER PROCESS.—Any other

6 process of any court to which application may be

7 made under this subsection shall be served in the ju8 dicial district in which the person required to be

9 served resides or is found.

10 ‘‘(d) GIFTS.—The Commission may accept, use, and

11 dispose of gifts of money, services, or property.

12 ‘‘(e) MAILS.—The Commission may use the United

13 States mails in the same manner and under the same con14 ditions as other departments and agencies of the United

15 States.

16 ‘‘(f) STAFF OF FEDERAL AGENCIES.—On request of

17 the Chair of the Commission, the head of any Federal

18 agency is authorized to detail, on a reimbursable basis,

19 any personnel of such agency to the Commission to assist

20 the Commission in carrying out its duties under this chap21 ter.

22 ‘‘(g) ADMINISTRATIVE SUPPORT SERVICES.—The

23 Administrator of General Services shall provide to the

24 Commission, on a reimbursable basis, such administrative
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1 support services as the Chair of the Commission may re2 quest.

3 ‘‘(h) DELEGATION OF AUTHORITY TO MEMBERS AND

4 AGENTS.—The Commission may delegate to any of its

5 members or agents its authority to take any action author6 ized by this section.

7 ‘‘SEC. 9067. DIRECTOR AND STAFF OF COMMISSION.

8 ‘‘(a) DIRECTOR.—The Commission may appoint a

9 Director to be paid at a rate not to exceed the maximum

10 rate of basic pay payable for GS–14 of the General Sched11 ule.

12 ‘‘(b) STAFF.—With the approval of the Commission,

13 the Director may appoint additional personnel subject to

14 the provisions of title 5, United States Code, governing

15 appointments in the competitive service, and such person16 nel shall be paid in accordance with the provisions of chap17 ter 51 and subchapter III of chapter 53 of such title relat18 ing to classification and General Schedule pay rates.

19 ‘‘(c) EXPERTS AND CONSULTANTS.— Subject to such

20 rules as may be prescribed by the Commission, the Direc21 tor may procure temporary and intermittent services

22 under section 3109(b) of title 5, United States Code.

23 ‘‘SEC. 9068. RULES GOVERNING COMMISSION MEETINGS.

24 ‘‘(a) QUORUM.—The Chair of the Commission and 2

25 other Commission members shall constitute a quorum.
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1 ‘‘(b) MEETINGS.—The Commission shall meet not

2 less frequently than quarterly, at the call of a majority

3 of its members, in sessions open to the public.

4 ‘‘(c) VOTING.—The Chair of the Commission shall

5 not have the power to vote at any Commission meeting,

6 except to break a tie.

7 ‘‘SEC. 9069. AUTHORIZATION OF APPROPRIATIONS.

8 ‘‘For administrative expenses, there are authorized to

9 be appropriated to the Commission an amount not to ex10 ceed $150,000 for each fiscal year beginning after Sep11 tember 30, 1993.’’.

12 (b) CLERICAL AMENDMENTS.—

13 (1) Subtitle H of the Internal Revenue Code of

14 1986 is amended by amending the heading for such

15 subtitle to read as follows:

16 ‘‘Subtitle H—Financing of Presidential Elec17 tion Campaigns; Distribution of Hunger

18 Relief Funds’’

19 (2) The table of chapters for such subtitle is

20 amended by adding at the end the following new

21 item:

‘‘CHAPTER 97. Distribution of hunger relief funds.’’.

22 (3) The table of subtitles for such Code is

23 amended by amending the item relating to subtitle

24 H by striking ‘‘campaigns.’’ and inserting ‘‘cam25 paigns; distribution of hunger relief funds.’’.
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1 SEC. 5. EFFECTIVE DATES.

2 (a) ELECTION OF TAXPAYERS TO DIRECT INCOME

3 TAX REFUNDS TO HUNGER EMERGENCY ASSISTANCE

4 AND RELIEF TRUST.— The amendments made by section

5 2 shall apply to taxable years beginning after Decem6 ber 31, 1993.

7 (b) ESTABLISHMENT OF HUNGER EMERGENCY AS8 SISTANCE AND RELIEF TRUST.—The amendments made

9 by section 3 shall apply to the amounts received after De10 cember 31, 1993.

11 (c) DISTRIBUTION OF HUNGER RELIEF FUNDS.—

12 The amendments made by section 4 shall take effect on

13 January 1, 1994.

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