I

103D CONGRESS

1ST SESSION H. R. 1185

To limit contributions by nonparty multicandidate political committees in

House of Representatives elections, to provide an income tax credit

for contributions to nonincumbent candidates in such elections, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1993

Mr. KOPETSKI introduced the following bill; which was referred jointly to the

Committees on House Administration, Ways and Means, and Post Office

and Civil Serivce

A BILL

To limit contributions by nonparty multicandidate political

committees in House of Representatives elections, to provide an income tax credit for contributions to

nonincumbent candidates in such elections, 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. PERCENTAGE LIMITATION ON NONPARTY

2 MULTICANDIDATE POLITICAL COMMITTEE

3 CONTRIBUTIONS ACCEPTED BY HOUSE OF

4 REPRESENTATIVES CANDIDATES.

5 Section 315 of the Federal Election Campaign Act

6 of 1971 (2 U.S.C. 441a) is amended by adding at the end

7 the following new subsection:

8 ‘‘(i) A candidate for the office of Representative in,

9 or Delegate or Resident Commissioner to, the Congress

10 may not, with respect to an election, accept contributions

11 from nonparty multicandidate political committees that, in

12 the aggregate, exceed 40 percent of the total of contribu13 tions accepted from all sources.’’.

14 SEC. 2. INCOME TAX CREDIT FOR CONTRIBUTIONS TO

15 NONINCUMBENT HOUSE OF REPRESENTA16 TIVES CANDIDATES.

17 (a) IN GENERAL.—Subpart A of part IV of sub18 chapter A of chapter 1 of the Internal Revenue Code of

19 1986 (relating to nonrefundable personal credits) is

20 amended by inserting after section 23 the following new

21 section:

22 ‘‘SEC. 24. CONTRIBUTIONS TO NONINCUMBENT HOUSE OF

23 REPRESENTATIVES CANDIDATES.

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

25 there shall be allowed, subject to the limitations of sub26 section (b), as a credit against the tax imposed by this
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1 chapter for the taxable year, an amount equal to one-half

2 of all contributions to candidates for the office of Rep3 resentative in, or Delegate or Resident Commissioner to,

4 the Congress (other than contributions to an incumbent

5 of any such office), payment of which is made by the tax6 payer within the taxable year.

7 ‘‘(b) LIMITATIONS.—

8 ‘‘(1) MAXIMUM CREDIT.—The credit allowed by

9 subsection (a) for a taxable year shall not exceed

10 $50 ($100 in the case of a joint return under section

11 6013).

12 ‘‘(2) VERIFICATION.—The credit allowed by

13 subsection (a) shall be allowed, with respect to any

14 contribution, only if such contribution is verified in

15 such manner as the Secretary shall prescribe by reg16 ulations.

17 ‘‘(c) DEFINITIONS.—For purposes of this section, the

18 terms ‘candidate’ and ‘contribution’ have the meanings

19 given those terms in section 301 of the Federal Election

20 Campaign Act of 1971.

21 ‘‘(d) CROSS REFERENCE.—

‘‘For disallowance of credits to estates and trusts,

see section 642(a)(2).’’.

22 (b) TECHNICAL AMENDMENTS.—

23 (1) Subsection (a) of section 642 of such Code

24 is amended to read as follows:
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1 ‘‘(a) CREDITS AGAINST TAX.—

2 ‘‘(1) FOREIGN TAX CREDIT ALLOWED.—An es3 tate or trust shall be allowed the credit against tax

4 for taxes imposed by foreign countries and posses5 sions of the United States, to the extent allowed by

6 section 901, only in respect of so much of the taxes

7 described in such section as is not properly allocable

8 under such section to the beneficiaries.

9 ‘‘(2) CREDIT FOR CONTRIBUTIONS TO

10 NONINCUMBENT HOUSE OF REPRESENTATIVES CAN11 DIDATES NOT ALLOWED.—An estate or trust shall

12 not be allowed the credit against tax for contribu13 tions to nonincumbent House of Representatives

14 candidates provided by section 24.’’.

15 (2) The table of sections for subpart A of part

16 IV of subchapter A of chapter 1 of such Code is

17 amended by inserting after the item relating to sec18 tion 23 the following new item:

‘‘Sec. 24. Contributions to nonincumbent House of Representatives candidates.’’.

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

20 this section shall apply to taxable years beginning after

21 December 31, 1993.
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1 SEC. 3. NOTIFICATION REQUIREMENTS FOR EXPENDI2 TURES BY CERTAIN POLITICAL COMMITTEES

3 IN HOUSE OF REPRESENTATIVES ELECTIONS.

4 Section 304 of the Federal Election Campaign Act

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

6 the following new subsection:

7 ‘‘(d) In addition to any other reporting requirement

8 provided for by law, each political committee (other than

9 a political committee of a political party or a political com10 mittee of a candidate for the office of Representative in,

11 or Delegate or Resident Commissioner to, the Congress)

12 that makes expenditures with respect to an election for

13 such office shall—

14 ‘‘(1) not later than one week after the date on

15 which such committee makes aggregate expenditures

16 in excess of $50, so notify each candidate in the

17 election;

18 ‘‘(2) in the case of a committee to which para19 graph (1) applies, simultaneously with submission of

20 any report of expenditures to the Commission, notify

21 each candidate in the election of all expenditures in

22 the reporting period; and

23 ‘‘(3) not later than one week after the date on

24 which such committee makes any single expenditure

25 in excess of $50, so notify each candidate in the

26 election.’’.
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1 SEC. 4. PERCENTAGE LIMITATION ON OUT-OF-STATE CON2 TRIBUTIONS ACCEPTABLE BY HOUSE OF REP3 RESENTATIVES CANDIDATES.

4 Section 315 of the Federal Election Campaign Act

5 of 1971 (2 U.S.C. 441a), as amended by section 1 of this

6 Act, is further amended by adding at the end the following

7 new subsection:

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

9 or Delegate or Resident Commissioner to, the Congress

10 may not, with respect to an election, accept contributions

11 from individuals who are not residents of the State in12 volved that, in the aggregate, exceed 25 percent of the

13 total of contributions accepted from all individuals.’’.

14 SEC. 5. REDUCTION IN THRESHOLD AMOUNT FOR REPORT15 ING OF CERTAIN CONTRIBUTIONS AND EX16 PENDITURES.

17 Section 304 of the Federal Election Campaign Act

18 of 1971 (2 U.S.C. 434), as amended by section 3, is fur19 ther amended by striking out ‘‘$200’’ each place it ap20 pears and inserting in lieu thereof ‘‘$50’’.

21 SEC. 6. REDUCED THIRD CLASS MAIL RATE FOR

22 NONINCUMBENTS IN HOUSE OF REPRESENT23 ATIVES ELECTIONS.

24 (a) IN GENERAL.—Chapter 34 of title 39, United

25 States Code, is amended by adding at the end the follow26 ing new section:
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1 § 3407. Reduced third class mail rate for

2 nonincumbents in House of Representa3 tives elections

4 ‘‘(a)(1) A nonincumbent candidate for the office of

5 Representative in, or Delegate or Resident Commissioner

6 to, the Congress shall be entitled to send third class cam7 paign material through the mails at a rate equal to one8 half of the third class bulk mail rate.

9 ‘‘(2) The rate provided for in subsection (a) shall be

10 available—

11 ‘‘(A) for 3 mailings in the congressional district

12 involved; and

13 ‘‘(B) only for material mailed to households

14 with resident registered voters.

15 ‘‘(b) There are authorized to be appropriated such

16 amounts as may be necessary to reimburse the Postal

17 Service for the difference between the revenues received

18 for campaign materials mailed under subsection (a) and

19 the revenues that the Postal Service would have received

20 if such materials had been carried at the regular rate.’’.

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

22 for chapter 34 of title 39, United States Code, is amended

23 by adding at the end the following new item:

‘‘3407. Reduced third class mail rate for nonincumbents in House

of Representatives elections.’’.

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