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105TH CONGRESS

1ST SESSION H. R. 794

To amend the Internal Revenue Code of 1986 and the Federal Election

Campaign Act of 1971 to provide for public financing of House of

Representatives general election campaigns, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 13, 1997

Mr. SABO introduced the following bill; which was referred to the Committee

on House Oversight, and in addition to the Committee on Ways and

Means, 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 Internal Revenue Code of 1986 and the Federal Election Campaign Act of 1971 to provide for public

financing of House of Representatives general election

campaigns, 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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Citizens’ Choice Act’’.
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1 SEC. 2. DESIGNATION OF INCOME TAX PAYMENTS TO THE

2 HOUSE OF REPRESENTATIVES GENERAL

3 ELECTION TRUST FUND.

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

5 Internal Revenue Code of 1986 (relating to returns and

6 records) is amended by adding at the end the following

7 new part:

8 ‘‘PART IX—DESIGNATION OF INCOME TAX

9 PAYMENTS TO BE USED FOR THE

10 HOUSE OF REPRESENTATIVES GEN11 ERAL ELECTION TRUST FUND.

‘‘Sec. 6097. Designation by individuals.

12 ‘‘SEC. 6097. DESIGNATION BY INDIVIDUALS.

13 ‘‘(a) IN GENERAL.—Every individual whose adjusted

14 income tax liability for the taxable year is $5 or more may

15 designate that $5 shall be paid over to the House of Rep16 resentatives General Election Trust Fund. The first page

17 of the return of the taxpayer, or the page bearing the tax18 payer’s signature, shall include a place for designating the

19 Democratic Party, the Republican Party, or, as written

20 in by the taxpayer, any other political party as recipient

21 of the amount designated.

22 ‘‘(b) ADJUSTED INCOME TAX LIABILITY.—For pur23 poses of this section, the adjusted income tax liability of
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1 an individual is the tax liability of such individual (as de2 termined under subsection (b) of section 6096) for the tax3 able year reduced by the amount designated under section

4 6096 (relating to designation of income tax payments to

5 the Presidential Election Campaign Fund) for such tax6 able year.

7 ‘‘(c) JOINT RETURNS.—In the case of a joint return

8 showing an adjusted income tax liability of $10 or more,

9 each spouse may designate that $5 shall be paid over to

10 the House of Representatives General Election Trust

11 Fund.

12 ‘‘(d) MANNER AND TIME OF DESIGNATION.—Sub13 section (c) of section 6096 shall apply to the manner and

14 time of the designation under this section.’’.

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

16 such subchapter A is amended by adding at the end the

17 following new item:

‘‘Part IX. Designation of income tax payments to be used for the

House of Representatives General Election Trust

Fund.’’.

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

19 this section shall apply to taxable years beginning after

20 December 31, 1996.

21 SEC. 3. ESTABLISHMENT OF THE HOUSE OF REPRESENTA22 TIVES GENERAL ELECTION TRUST FUND.

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

24 Internal Revenue Code of 1986 (relating to Trust Fund
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1 Code) is amended by adding at the end the following new

2 section:

3 ‘‘SEC. 9512. HOUSE OF REPRESENTATIVES GENERAL ELEC4 TION TRUST FUND.

5 ‘‘(a) CREATION OF TRUST FUND.—There is estab6 lished in the Treasury of the United States a trust fund

7 to be known as the ‘House of Representatives General

8 Election Trust Fund’, consisting of such amounts as may

9 be appropriated or credited to such trust fund as provided

10 in this section or section 9602(b).

11 ‘‘(b) ACCOUNTS.—The trust fund shall consist of one

12 account for each political party in each congressional dis13 trict. The amounts designated under section 6097 (relat14 ing to designation by individuals) shall be deposited in the

15 appropriate accounts and shall be paid to certified House

16 candidates (as defined in subsection (d)) at such time and

17 in such manner as the Secretary may prescribe (in con18 sultation with the Federal Election Commission) for the

19 political parties and congressional districts of residence of

20 the individuals making the designation.

21 ‘‘(c) TRANSFER TO FUND OF AMOUNTS DESIGNATED

22 BY INDIVIDUALS.—There is hereby appropriated to the

23 House of Representatives General Election Trust Fund

24 amounts equivalent to the amounts designated under sec25 tion 6097.
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1 ‘‘(d) CERTIFIED HOUSE CANDIDATES DEFINED.—In

2 this section, a ‘certified House candidate’ means a can3 didate in a general election for the office of Representative

4 in, or Delegate or Resident Commissioner to, the Congress

5 who is certified by the Federal Election Commission under

6 section 323 of the Federal Election Campaign Act of 1971

7 as eligible to accept payments under this section.

8 ‘‘(e) TREATMENT OF AMOUNTS REMAINING AFTER

9 ELECTION.—Any amount remaining in an account after

10 all expenditures are made with respect to an election (in11 cluding any runoff election subsequent to a general elec12 tion) shall be deposited in the general fund of the Treas13 ury.’’.

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

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

16 the following new item:

‘‘Sec. 9512. House of Representatives General Election Trust

Fund.’’.

17 SEC. 4. REQUIREMENTS FOR HOUSE OF REPRESENTATIVES

18 CANDIDATES WHO ACCEPT AMOUNTS FROM

19 HOUSE OF REPRESENTATIVES GENERAL

20 ELECTION TRUST FUND.

21 (a) IN GENERAL.—Title III of the Federal Election

22 Campaign Act of 1971 (2 U.S.C. 301 et seq.) is amended

23 by adding at the end the following new section:
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1 ‘‘REQUIREMENTS FOR HOUSE GENERAL ELECTION CAN2 DIDATES WHO ACCEPT AMOUNTS FROM HOUSE OF

3 REPRESENTATIVES GENERAL ELECTION CAMPAIGN

4 TRUST FUND

5 ‘‘SEC. 323. (a) IN GENERAL.—

6 ‘‘(1) CERTIFICATION.—The Commission shall

7 certify that a candidate for the office of Representa8 tive in, or Delegate or Resident Commissioner to,

9 the Congress in a general election is eligible to ac10 cept payments from the appropriate account of the

11 House of Representatives General Election Trust

12 Fund under section 9512 of the Internal Revenue

13 Code of 1986 if the candidate certifies the following

14 (at such time and in such form and manner as the

15 Commission may require):

16 ‘‘(A) The candidate has received contribu17 tions totaling not less than $60,000 (of which

18 not more than $1,000 may be from the personal

19 funds of the candidate) with respect to the elec20 tion.

21 ‘‘(B) The candidate will not furnish (by

22 contribution, loan, or otherwise) more than

23 $20,000 with respect to the election from the

24 personal funds of the candidate.
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1 ‘‘(C) Subject to paragraph (2), the can2 didate will not make expenditures (including

3 funds from the House of Representatives Gen4 eral Election Trust Fund) with respect to the

5 election totaling more than $600,000.

6 ‘‘(2) WAIVER OF EXPENDITURE LIMITS FOR

7 CERTAIN CANDIDATES.—The Commission shall

8 waive the application of paragraph (1)(C) to a can9 didate if the candidate’s opponent in the general

10 election—

11 ‘‘(A) is not certified with respect to the

12 election under this section; and

13 ‘‘(B) has accepted contributions with re14 spect to the election totaling not less than

15 $100,000 or has made expenditures with re16 spect to the election totaling not less than

17 $100,000.

18 ‘‘(b) ENFORCEMENT.—

19 ‘‘(1) AUDIT OF REPORTS.—The Commission

20 may audit campaign reports submitted under this

21 Act to assure compliance with the requirements of

22 this section.

23 ‘‘(2) PENALTY FOR EXCESS EXPENDITURES.—

24 In the case of a violation of the expenditure limit

25 provided under subsection (a)(1)(C), the Commission
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1 shall impose a civil penalty in an amount equal to

2 not less than the amount of the excess expenditure

3 and not more than four times the amount of the ex4 cess expenditure, except that, in the case of an inad5 vertent violation, the Commission shall impose a civil

6 penalty in an amount equal to the amount of the ex7 cess expenditure.

8 ‘‘(c) COORDINATION WITH SECRETARY OF THE

9 TREASURY.—The Commission shall transmit to the Sec10 retary of the Treasury the names of candidates certified

11 under this section, together with such other information

12 as may be required to enable the Secretary to carry out

13 section 9512 of the Internal Revenue Code of 1986.’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 this section shall apply to elections occurring after Decem16 ber 31, 1996.

17 SEC. 5. LIMITATION ON CERTAIN LOANS BY HOUSE OF REP18 RESENTATIVES GENERAL ELECTION CAN19 DIDATES.

20 (a) IN GENERAL.—Title III of the Federal Election

21 Campaign Act of 1971 (2 U.S.C. 301 et seq.), as amended

22 by section 4, is further amended by adding at the end the

23 following new section:
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1 ‘‘LIMITATION ON CERTAIN LOANS BY HOUSE OF

2 REPRESENTATIVES GENERAL ELECTION CANDIDATES

3 ‘‘SEC. 324. A general election candidate for the office

4 of Representative in, or Delegate or Resident Commis5 sioner to, the Congress may not make loans totaling more

6 than $50,000 to any campaign committee of the candidate

7 with respect to the election.’’.

8 (b) EFFECTIVE DATE.—The amendment made by

9 this section shall apply to elections occurring after Decem10 ber 31, 1996.

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