I

105TH CONGRESS

2D SESSION H. R. 4865

To allow taxpayers to designate contributions to charity on their return

of tax and to establish the Checkoff for Charity Commission to ensure

that such contributions are paid to the designated charities.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 20, 1998

Mr. ENGEL (for himself, Mr. HALL of Texas, Mr. MANTON, Mr. TOWNS, Ms.

FURSE, Mr. RODRIGUEZ, and Mr. LEWIS of Georgia) introduced the following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committee on 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 allow taxpayers to designate contributions to charity on

their return of tax and to establish the Checkoff for

Charity Commission to ensure that such contributions

are paid to the designated charities.

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 ‘‘Checkoff for Charity

5 Act of 1998’’.
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1 TITLE I—CHECKOFF FOR

2 CHARITY

3 SEC. 101. DESIGNATION OF OVERPAYMENTS AND CON4 TRIBUTIONS FOR CHARITY.

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

6 Internal Revenue Code of 1986 is amended by adding at

7 the end the following new part:

8 ‘‘PART IX—DESIGNATION OF OVERPAYMENTS

9 AND CONTRIBUTIONS FOR CHARITY

‘‘Sec. 6097. Designation.

10 ‘‘SEC. 6097. DESIGNATION.

11 ‘‘(a) IN GENERAL.—In the case of an individual, with

12 respect to each taxpayer’s return for the taxable year of

13 the tax imposed by chapter 1, such taxpayer may des14 ignate that—

15 ‘‘(1) a specified portion (but not less than $1)

16 of any overpayment of tax for such taxable year, and

17 ‘‘(2) any cash contribution which the taxpayer

18 includes with such return,

19 shall be paid to an eligible organization, or for such use

20 as is otherwise provided, under title II of the Checkoff for

21 Charity Act of 1998.

22 ‘‘(b) MANNER AND TIME OF DESIGNATION.—A des23 ignation under subsection (a) may be made with respect

24 to any taxable year only at the time of filing the return
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1 of the tax imposed by chapter 1 for such taxable year.

2 Such designation shall be made in such manner as the

3 Secretary prescribes by regulations except that such des4 ignation shall be made either on the first page of the re5 turn or on the page bearing the taxpayer’s signature.

6 ‘‘(c) OVERPAYMENTS TREATED AS REFUNDED.—For

7 purposes of this title, any portion of an overpayment of

8 tax designated under subsection (a) shall be treated as

9 being refunded to the taxpayer as of the last date pre10 scribed for filing the return of tax imposed by chapter 1

11 (determined without regard to extensions) or, if later, the

12 date the return is filed.’’.

13 (b) CLERICAL AMENDMENT.—The table of parts for

14 subchapter A of chapter 61 of such Code is amended by

15 adding at the end thereof the following new item:

‘‘Part IX. Designation of overpayments and contributions for

charity.’’.

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

17 this section shall apply to taxable years beginning after

18 December 31, 1998.

19 SEC. 102. CHECKOFF FOR CHARITIES TRUST FUND.

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

21 Internal Revenue Code of 1986 (relating to trust fund

22 code) is amended by adding at the end the following new

23 section:
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1 ‘‘SEC. 9511. CHECKOFF FOR CHARITIES TRUST FUND.

2 ‘‘(a) CREATION OF TRUST FUND.—There is estab3 lished in the Treasury of the United States a trust fund

4 to be known as the ‘Checkoff for Charities Trust Fund’,

5 consisting of such amounts as may be appropriated or

6 credited to the Checkoff for Charities Trust Fund as pro7 vided in this section or section 9602(b).

8 ‘‘(b) TRANSFER TO CHECKOFF FOR CHARITIES

9 TRUST FUND OF AMOUNTS DESIGNATED.—There is here10 by appropriated to the Checkoff for Charities Trust Fund

11 amounts equivalent to the amounts designated under sec12 tion 6097 and received in the Treasury.

13 ‘‘(c) EXPENDITURES FROM TRUST FUND.—

14 ‘‘(1) IN GENERAL.—The Secretary shall pay,

15 not less often than quarterly, to the Checkoff for

16 Charities Commission from the Checkoff for Char17 ities Trust Fund an amount equal to the amount in

18 such Fund as of the time of such payment less any

19 administrative expenses of the Secretary which may

20 be paid under paragraph (2). Amounts paid under

21 this subsection shall be available only as provided in

22 section 202 of the Checkoff for Charity Act of 1998.

23 ‘‘(2) ADMINISTRATIVE EXPENSES.—Amounts in

24 the Checkoff for Charities Trust Fund shall be avail25 able to pay the administrative expenses of the Sec26 retary of the Treasury directly allocable to—
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1 ‘‘(A) modifying the individual income tax

2 return forms to carry out section 6097,

3 ‘‘(B) carrying out this chapter with respect

4 to such Fund, and

5 ‘‘(C) processing amounts received under

6 section 6097 and transferring such amounts to

7 such Fund.’’.

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

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

10 the following new item:

‘‘Sec. 9511. Checkoff for Charities Trust Fund.’’.

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

12 this section shall apply to taxable years beginning after

13 the date of enactment of this Act.

14 TITLE II—CHECKOFF FOR

15 CHARITY COMMISSION

16 SEC. 201. ESTABLISHMENT.

17 There is established in the Department of Commerce

18 a commission to be known as the ‘‘Checkoff for Charity

19 Commission’’ (hereafter in this title referred to as the

20 ‘‘Commission’’).

21 SEC. 202. DUTIES.

22 (a) IN GENERAL.—The Commission, in consultation

23 with the Secretary of the Treasury, shall make arrange24 ments for voluntary charitable, health, and welfare agen25 cies that provide or support direct health and welfare serv-
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1 ices to individuals or their families to solicit contributions

2 through designations made on returns of individual in3 come tax. Such arrangements shall—

4 (1) to the extent practicable, be similar to ar5 rangements made by the Office of Personnel Man6 agement with respect to the annual Combined Fed7 eral Campaign; and

8 (2) be limited to the types of organizations

9 specified in Executive Order 12353 (March 23,

10 1982), as amended by Executive Order 12404 (Feb11 ruary 10, 1983).

12 (b) AMOUNTS DESIGNATED FOR SPECIFIC ORGANI13 ZATIONS.—The Commission shall ensure that amounts

14 designated on a return of tax for a specific organization

15 are paid to that organization not later than 90 days after

16 the date on which the Commission receives such designa17 tion.

18 (c) AMOUNTS NOT DESIGNATED FOR SPECIFIC OR19 GANIZATIONS.—

20 (1) IN GENERAL.—In the case of amounts des21 ignated as a contribution on a return of tax but not

22 designated for a specific organization the

23 Commission—
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1 (A) may retain and use not more than one

2 percent of such amounts to carry out this Act,

3 and

4 (B) from the excess of the aggregate of

5 such amounts for a year over the amount re6 tained under paragraph (1), shall determine

7 which of the organizations eligible to receive

8 designations for a year under subsection (a) will

9 receive all or a portion of such contribution.

10 (2) CRITERIA FOR SELECTING ORGANIZA11 TIONS.—In carrying out paragraph (1)(B), the Com12 mission shall use the criteria set forth in Executive

13 Order 12353 (March 23, 1982), as amended by Ex14 ecutive Order 12404 (February 10, 1983).

15 SEC. 203. MEMBERSHIP.

16 (a) NUMBER AND APPOINTMENT.—The Commission

17 shall be composed of 15 members appointed by the Presi18 dent from individuals who are not officers or employees

19 of any organization that receives funding pursuant to this

20 Act. Members on the Commission shall be broadly rep21 resentative of the ethnic, religious, majority, and minority

22 groups comprising the United States.

23 (b) WAIVER OF LIMITATION ON EXECUTIVE SCHED24 ULE POSITIONS.—Appointments may be made under this
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1 section without regard to section 5311(b) of title 5, United

2 States Code.

3 (c) POLITICAL AFFILIATION.—Not more than 8

4 members appointed may be of the same political party.

5 (d) TERMS.—

6 (1) IN GENERAL.—Each member shall be ap7 pointed for a term of six years, except as provided

8 in paragraphs (2) and (3).

9 (2) TERMS OF INITIAL APPOINTEES.—As des10 ignated by the President at the time of appointment,

11 of the members first appointed—

12 (A) five shall be appointed for terms of two

13 years;

14 (B) five shall be appointed for terms of

15 four years; and

16 (C) five shall be appointed for terms of six

17 years.

18 (3) VACANCIES.—Any member appointed to fill

19 a vacancy occurring before the expiration of the

20 term for which the member’s predecessor was ap21 pointed shall be appointed only for the remainder of

22 that term. A member may serve after the expiration

23 of that member’s term until a successor has taken

24 office.

25 (e) BASIC PAY.—
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1 (1) RATES OF PAY.—Except as provided in

2 paragraph (2), members shall serve without pay.

3 (2) PROHIBITION OF COMPENSATION OF FED4 ERAL EMPLOYEES.—Members of the Commission

5 who are full-time officers or employees of the United

6 States may not receive additional pay, allowances, or

7 benefits by reason of their service on the Commis8 sion.

9 (f) TRAVEL EXPENSES.—Each member shall receive

10 travel expenses, including per diem in lieu of subsistence,

11 in accordance with sections 5702 and 5703 of title 5,

12 United States Code.

13 (g) QUORUM.—Eight members of the Commission

14 shall constitute a quorum but a lesser number may hold

15 hearings.

16 (h) CHAIRMAN; VICE CHAIRMAN.—The Chairman

17 and Vice Chairman of the Commission shall be designated

18 by the President at the time of the appointment. The term

19 of office of the Chairman shall be three years.

20 (i) MEETINGS.—The Commission shall meet at the

21 call of the Chairman or a majority of its members.

22 SEC. 204. DIRECTOR AND STAFF OF COMMISSION; EXPERTS

23 AND CONSULTANTS.

24 (a) DIRECTOR.—The Commission shall, without re25 gard to section 5311(b) of title 5, United States Code,
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1 have a Director who shall be appointed by Commission.

2 The Director shall be paid at a rate not to exceed the rate

3 of basic pay payable for level V of the Executive Schedule.

4 (b) STAFF.—Subject to rules prescribed by the Com5 mission, and without regard to section 5311(b) of title 5,

6 United States Code, the Director may appoint additional

7 personnel as the Director considers appropriate.

8 (c) APPLICABILITY OF CERTAIN CIVIL SERVICE

9 LAWS.—The Director and staff of the Commission shall

10 be appointed subject to the provisions of title 5, United

11 States Code, governing appointments in the competitive

12 service, and shall be paid in accordance with the provisions

13 of chapter 51 and subchapter III of chapter 53 of that

14 title relating to classification and General Schedule pay

15 rates.

16 (d) EXPERTS AND CONSULTANTS.—Subject to rules

17 prescribed by the Commission, the Director may procure

18 temporary and intermittent services under section 3109(b)

19 of title 5, United States Code, but at rates for individuals

20 not to exceed the daily equivalent of the rate of basic pay

21 payable for level V of the Executive Schedule.

22 (e) STAFF OF FEDERAL AGENCIES.—Upon request

23 of the Director, the head of any Federal department or

24 agency may detail, on a reimbursable basis, any of the
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1 personnel of that department or agency to the Commission

2 to assist it in carrying out its duties under this Act.

3 SEC. 205. POWERS OF COMMISSION.

4 (a) HEARINGS AND SESSIONS.—The Commission

5 may, for the purpose of carrying out this Act, hold hear6 ings, sit and act at times and places, take testimony, and

7 receive evidence as the Commission considers appropriate.

8 The Commission may administer oaths or affirmations to

9 witnesses appearing before it.

10 (b) POWERS OF MEMBERS AND AGENTS.—Any mem11 ber or agent of the Commission may, if authorized by the

12 Commission, take any action which the Commission is au13 thorized to take by this section.

14 (c) OBTAINING OFFICIAL DATA.—The Commission

15 may secure directly from any department or agency of the

16 United States information necessary to enable it to carry

17 out this Act. Upon request of the Chairman or Vice Chair18 man of the Commission, the head of that department or

19 agency shall furnish that information to the Commission.

20 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis21 sion may accept, use, and dispose of gifts, bequests, or

22 devises of services or property, both real and personal, for

23 the purpose of aiding or facilitating the work of the Com24 mission. Gifts, bequests, or devises of money and proceeds

25 from sales of other property received as gifts, bequests,
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1 or devises shall be deposited in the Treasury and shall be

2 available for disbursement upon order of the Chairman.

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

4 States mails in the same manner and under the same con5 ditions as other departments and agencies of the United

6 States.

7 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

8 request of the Commission, the Administrator of General

9 Services shall provide to the Commission, on a reimburs10 able basis, the administrative support services necessary

11 for the Commission to carry out its responsibilities under

12 this Act.

13 (g) SUBPOENA POWER.—

14 (1) IN GENERAL.—The Commission may issue

15 subpoenas requiring the attendance and testimony of

16 witnesses and the production of any evidence relat17 ing to any matter under investigation by the Com18 mission. The attendance of witnesses and the pro19 duction of evidence may be required from any place

20 within the United States at any designated place of

21 hearing within the United States.

22 (2) FAILURE TO OBEY A SUBPOENA.—If a per23 son refuses to obey a subpoena issued under para24 graph (1), the Commission may apply to a United

25 States district court for an order requiring that per-
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1 son to appear before the Commission to give testi2 mony, produce evidence, or both, relating to the

3 matter under investigation. The application may be

4 made within the judicial district where the hearing

5 is conducted or where that person is found, resides,

6 or transacts business. Any failure to obey the order

7 of the court may be punished by the court as civil

8 contempt.

9 (3) SERVICE OF SUBPOENAS.—The subpoenas

10 of the Commission shall be served in the manner

11 provided for subpoenas issued by a United States

12 district court under the Federal Rules of Civil Pro13 cedure for the United States district courts.

14 (4) SERVICE OF PROCESS.—All process of any

15 court to which application is be made under para16 graph (2) may be served in the judicial district in

17 which the person required to be served resides or

18 may be found.

19 (h) IMMUNITY.—Except as provided in this sub20 section, a person may not be excused from testifying or

21 from producing evidence pursuant to a subpoena on the

22 ground that the testimony or evidence required by the sub23 poena may tend to incriminate or subject that person to

24 criminal prosecution. A person, after having claimed the

25 privilege against self-incrimination, may not be criminally
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1 prosecuted by reason of any transaction, matter, or thing

2 about which that person is compelled to testify or relating

3 to which that person is compelled to produce evidence, ex4 cept that the person may be prosecuted for perjury com5 mitted during the testimony or made in the evidence.

6 (i) CONTRACT AUTHORITY.—The Commission may

7 contract with and compensate government and private

8 agencies or persons for property and services, without re9 gard to section 3709 of the Revised Statutes (41 U.S.C.

10 5).

11 SEC. 206. ANNUAL REPORTS.

12 The Commission shall transmit an annual report to

13 the Secretary of Commerce and the Congress not later

14 than December 31 of each year. Each such report shall

15 contain a detailed statement of activities of the Commis16 sion during the fiscal year ending in the year in which

17 such report is required to be submitted.

18 SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

19 There are authorized to be appropriated for each of

20 the first two fiscal years beginning after the date of the

21 enactment of this Act such sums as may be necessary for

22 startup costs for the Commission to carry out this Act.

Æ