of the tax imposed by chapter 1 for such taxable year.
Such designation shall be made in such manner as the
Secretary prescribes by regulations except that such des-
ignation shall be made either on the first page of the re-
turn or on the page bearing the taxpayer’s signature.
‘‘(c) OVERPAYMENTS TREATED AS REFUNDED.—For
purposes of this title, any portion of an overpayment of
tax designated under subsection (a) shall be treated as
being refunded to the taxpayer as of the last date pre-
scribed for filing the return of tax imposed by chapter 1
(determined without regard to extensions) or, if later, the
date the return is filed.’’.
(b) CLERICAL AMENDMENT.—The table of parts for
subchapter A of chapter 61 of such Code is amended by
adding at the end thereof the following new item:
‘‘Part IX. Designation of overpayments and contributions for
charity.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1998.
SEC. 102. CHECKOFF FOR CHARITIES TRUST FUND.
(a) IN GENERAL.—Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 (relating to trust fund
code) is amended by adding at the end the following new
section:
‘‘SEC. 9511. CHECKOFF FOR CHARITIES TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Checkoff for Charities Trust Fund’,
consisting of such amounts as may be appropriated or
credited to the Checkoff for Charities Trust Fund as pro-
vided in this section or section 9602(b).
‘‘(b) TRANSFER
TO
CHECKOFF
FOR
CHARITIES
TRUST FUND OF AMOUNTS DESIGNATED.—There is here-
by appropriated to the Checkoff for Charities Trust Fund
amounts equivalent to the amounts designated under sec-
tion 6097 and received in the Treasury.
‘‘(c) EXPENDITURES FROM TRUST FUND.—
‘‘(1) IN GENERAL.—The Secretary shall pay,
not less often than quarterly, to the Checkoff for
Charities Commission from the Checkoff for Char-
ities Trust Fund an amount equal to the amount in
such Fund as of the time of such payment less any
administrative expenses of the Secretary which may
be paid under paragraph (2). Amounts paid under
this subsection shall be available only as provided in
section 202 of the Checkoff for Charity Act of 1998.
‘‘(2) ADMINISTRATIVE EXPENSES.—Amounts in
the Checkoff for Charities Trust Fund shall be avail-
able to pay the administrative expenses of the Sec-
retary of the Treasury directly allocable to—
‘‘(A) modifying the individual income tax
return forms to carry out section 6097,
‘‘(B) carrying out this chapter with respect
to such Fund, and
‘‘(C) processing amounts received under
section 6097 and transferring such amounts to
such Fund.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for such subchapter A is amended by adding at the end
the following new item:
‘‘Sec. 9511. Checkoff for Charities Trust Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of enactment of this Act.
TITLE II—CHECKOFF FOR
CHARITY COMMISSION
SEC. 201. ESTABLISHMENT.
There is established in the Department of Commerce
a commission to be known as the ‘‘Checkoff for Charity
Commission’’ (hereafter in this title referred to as the
‘‘Commission’’).
SEC. 202. DUTIES.
(a) IN GENERAL.—The Commission, in consultation
with the Secretary of the Treasury, shall make arrange-
ments for voluntary charitable, health, and welfare agen-
cies that provide or support direct health and welfare serv-
ices to individuals or their families to solicit contributions
through designations made on returns of individual in-
come tax. Such arrangements shall—
(1) to the extent practicable, be similar to ar-
rangements made by the Office of Personnel Man-
agement with respect to the annual Combined Fed-
eral Campaign; and
(2) be limited to the types of organizations
specified in Executive Order 12353 (March 23,
1982), as amended by Executive Order 12404 (Feb-
ruary 10, 1983).
(b) AMOUNTS DESIGNATED FOR SPECIFIC ORGANI-
ZATIONS.—The Commission shall ensure that amounts
designated on a return of tax for a specific organization
are paid to that organization not later than 90 days after
the date on which the Commission receives such designa-
tion.
(c) AMOUNTS NOT DESIGNATED FOR SPECIFIC OR-
GANIZATIONS.—
(1) IN GENERAL.—In the case of amounts des-
ignated as a contribution on a return of tax but not
designated 
for 
a 
specific 
organization 
the
Commission—
(A) may retain and use not more than one
percent of such amounts to carry out this Act,
and
(B) from the excess of the aggregate of
such amounts for a year over the amount re-
tained under paragraph (1), shall determine
which of the organizations eligible to receive
designations for a year under subsection (a) will
receive all or a portion of such contribution.
(2) CRITERIA
FOR
SELECTING
ORGANIZA-
TIONS.—In carrying out paragraph (1)(B), the Com-
mission shall use the criteria set forth in Executive
Order 12353 (March 23, 1982), as amended by Ex-
ecutive Order 12404 (February 10, 1983).
SEC. 203. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall be composed of 15 members appointed by the Presi-
dent from individuals who are not officers or employees
of any organization that receives funding pursuant to this
Act. Members on the Commission shall be broadly rep-
resentative of the ethnic, religious, majority, and minority
groups comprising the United States.
(b) WAIVER OF LIMITATION ON EXECUTIVE SCHED-
ULE POSITIONS.—Appointments may be made under this
section without regard to section 5311(b) of title 5, United
States Code.
(c) POLITICAL AFFILIATION.—Not more than 8
members appointed may be of the same political party.
(d) TERMS.—
(1) IN GENERAL.—Each member shall be ap-
pointed for a term of six years, except as provided
in paragraphs (2) and (3).
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed—
(A) five shall be appointed for terms of two
years;
(B) five shall be appointed for terms of
four years; and
(C) five shall be appointed for terms of six
years.
(3) VACANCIES.—Any member appointed to fill
a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor has taken
office.
(e) BASIC PAY.—