I 
108TH CONGRESS 
1ST SESSION H. R. 3172
To amend the Federal Election Campaign Act of 1971 to establish a program 
under which Congressional candidates may receive public funding for 
carrying out campaigns for election for Federal office, to amend the 
Internal Revenue Code of 1986 to establish an income tax checkoff 
to provide funding for such program and to provide a refundable tax 
credit for individuals who make contributions to such candidates, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 24, 2003
Ms. MCCOLLUM introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on House 
Administration, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend the Federal Election Campaign Act of 1971 to 
establish a program under which Congressional can-
didates may receive public funding for carrying out cam-
paigns for election for Federal office, to amend the Inter-
nal Revenue Code of 1986 to establish an income tax 
checkoff to provide funding for such program and to 
provide a refundable tax credit for individuals who make 
contributions to such candidates, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS. 
The table of contents of this Act is as follows:
Sec. 1. Table of contents. 
TITLE I—PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL 
CANDIDATES 
Sec. 101. Establishment of public funding program for Congressional can-
didates. 
‘‘TITLE V—PUBLIC FUNDING PROGRAM FOR CONGRESSIONAL 
CANDIDATES 
‘‘Subtitle A—Program Requirements 
‘‘Sec. 501. Establishment of program. 
‘‘Sec. 502. Requirements for eligibility of certified public subsidy can-
didates. 
‘‘Sec. 503. Requiring candidates to raise minimum amount of funds from 
in-State individual contributors. 
‘‘Subtitle B—General Election Payments for Certified Public Subsidy 
Candidates 
‘‘Sec. 511. Option to receive public subsidy payments. 
‘‘Sec. 512. Amount of payment; timing. 
‘‘Sec. 513. Treatment of minor parties. 
‘‘Subtitle C—Spending Limits and Fundraising Requirements for Certified 
Candidates 
‘‘Sec. 521. Limit on expenditures by certified candidates. 
‘‘Sec. 522. Source of funds used for expenditures. 
‘‘Subtitle D—Tax Rebate Certificates for Individual Contributors 
‘‘Sec. 531. Tax rebate certificates for individuals making contributions to 
candidate. 
‘‘Sec. 532. Coordination with Secretary of the Treasury. 
‘‘Subtitle E—Enforcement 
‘‘Sec. 541. Withdrawal of certification. 
‘‘Sec. 542. Penalties for spending in excess of limits. 
Sec. 102. Effective date. 
TITLE II—INCOME TAX CHECKOFF FOR FUNDING FOR 
CERTIFIED PUBLIC SUBSIDY CANDIDATES 
Sec. 201. Designation of income tax payments for fund for certified public sub-
sidy candidates. 
TITLE III—TAX CREDIT FOR CONTRIBUTIONS TO PARTICIPATING 
CANDIDATES 
Sec. 301. Refundable credit for contributions to certified public subsidy can-
didates.
TITLE I—PUBLIC FUNDING PRO-
GRAM FOR CONGRESSIONAL 
CANDIDATES 
SEC. 101. ESTABLISHMENT OF PUBLIC FUNDING PROGRAM 
FOR CONGRESSIONAL CANDIDATES. 
The Federal Election Campaign Act of 1971 is 
amended by adding at the end the following new title: 
‘‘TITLE 
V—PUBLIC 
FUNDING 
PROGRAM 
FOR 
CONGRES-
SIONAL CANDIDATES 
‘‘Subtitle A—Program 
Requirements 
‘‘SEC. 501. ESTABLISHMENT OF PROGRAM. 
‘‘There is established a program under which the 
Commission shall certify candidates for election for Fed-
eral office as certified public subsidy candidates in accord-
ance with this subtitle and make payments to such can-
didates in accordance with subtitle B. 
‘‘SEC. 502. REQUIREMENTS FOR ELIGIBILITY OF CERTIFIED 
PUBLIC SUBSIDY CANDIDATES. 
‘‘(a) IN GENERAL.—In this title, a ‘certified public 
subsidy candidate’ is a candidate for election for the office 
of Senator or Representative in, or Delegate or Resident 
Commissioner to, the Congress, who is certified by the
Commission as meeting the requirements of this title with 
respect to the election. 
‘‘(b) PROCEDURE FOR CERTIFICATION.—The Com-
mission shall certify that a candidate meets the require-
ments for a certified public subsidy candidate under this 
title if the candidate submits an application to the Com-
mission which contains the following information and as-
surances: 
‘‘(1) A certification that the candidate has met 
the requirements of section 503 regarding contribu-
tions from in-State individual residents. 
‘‘(2) Assurances that the candidate will meet 
the applicable spending limits and fundraising re-
quirements of subtitle B. 
‘‘(3) Assurances that the candidate will meet 
the requirements of subtitle C regarding the fur-
nishing of rebate certificates to individuals making 
contributions to the principal campaign committee of 
the candidate. 
‘‘(4) Assurances that the candidate will provide 
the Commission with ongoing information (at such 
times and in such form as the Commission may re-
quire) to enable the Commission to determine wheth-
er the candidate is in compliance with the applicable 
requirements of this title.
‘‘(5) Such other information and assurances as 
the Commission may require. 
‘‘(c) DEADLINE FOR APPLICATION.—
‘‘(1) IN GENERAL.—A candidate who seeks to 
be certified as a certified public subsidy candidate 
shall submit the application described in subsection 
(b) to the Commission at the same time that the 
principal campaign committee of the candidate files 
its statement of organization with the Commission 
under section 303. 
‘‘(2) SPECIAL
RULE
FOR
GENERAL
ELEC-
TIONS.—If a candidate who is a certified public sub-
sidy candidate with respect to a primary election (or 
convention or caucus of a political party which has 
authority to nominate a candidate) wins the election 
or is otherwise nominated to serve as the candidate 
of the party in the general election, the candidate 
shall be deemed to have submitted the application 
described in subsection (b) with respect to the suc-
ceeding general election. 
‘‘SEC. 503. REQUIRING CANDIDATES TO RAISE MINIMUM 
AMOUNT OF FUNDS FROM IN-STATE INDI-
VIDUAL CONTRIBUTORS. 
‘‘(a) IN GENERAL.—A candidate may not be certified 
as a certified public subsidy candidate under this title until
the candidate has received contributions from in-State in-
dividual residents in an aggregate amount equal to or 
greater than 2.5 percent of the maximum amount of ex-
penditures the candidate may make with respect to the 
election, as determined under section 521. 
‘‘(b) LIMIT ON MAXIMUM AMOUNT TAKEN INTO AC-
COUNT.—In determining whether a candidate has received 
the minimum amount of contributions required under sub-
section (a), there shall not be taken into account any 
amounts provided in excess of $100 by the same indi-
vidual. 
‘‘(c) IN-STATE INDIVIDUAL RESIDENT DEFINED.—
In this section, an ‘in-State individual resident’ is an indi-
vidual who resides in the State the candidate seeks to rep-
resent (in the case of a candidate for election for the office 
of Senator) or the State in which the Congressional dis-
trict the candidate seeks to represent is located (in the 
case of a candidate for election for the office of Represent-
ative in, or Delegate or Resident Commissioner to, the 
Congress).
‘‘Subtitle B—General Election Pay-
ments for Certified Public Sub-
sidy Candidates 
‘‘SEC. 511. OPTION TO RECEIVE PUBLIC SUBSIDY PAY-
MENTS. 
‘‘The Commission shall make payments in accordance 
with this subtitle with respect to a general election to each 
certified public subsidy candidate who notifies the Com-
mission that the candidate seeks such payments with re-
spect to the election. 
‘‘SEC. 512. AMOUNT OF PAYMENT; TIMING. 
‘‘Not later than 10 days after receiving notice under 
section 511, the Commission shall make a payment to the 
candidate in an amount equal to one-third of the max-
imum amount of expenditures the candidate may make 
with respect to the election, as determined under section 
521. 
‘‘SEC. 513. TREATMENT OF MINOR PARTIES. 
‘‘Notwithstanding any other provision of this title, a 
candidate is not eligible to receive a payment under section 
512 with respect to an election unless the candidate of 
the candidate’s political party received 5 percent or more 
of the total number of votes received by all candidates for 
the office involved in the preceding general election.
‘‘Subtitle C—Spending Limits and 
Fundraising Requirements for 
Certified Candidates 
‘‘SEC. 521. LIMIT ON EXPENDITURES BY CERTIFIED CAN-
DIDATES. 
‘‘(a) GENERAL ELECTION.—The amount of expendi-
tures made with respect to a general election by the prin-
cipal campaign committee of a certified public subsidy 
candidate may not exceed an amount equal to the product 
of $1 and—
‘‘(1) in the case of a candidate for the office of 
Representative in, or Delegate or Resident Commis-
sioner to, the Congress, the population of the district 
the candidate seeks to represent; or 
‘‘(2) in the case of a candidate for the office of 
Senator, the population of the State the candidate 
seeks to represent. 
‘‘(b) PRIMARY ELECTION.—The amount of expendi-
tures made with respect to an election other than a general 
election by the principal campaign committee of a certified 
public subsidy candidate may not exceed 50 percent of the 
limit established under subsection (a) for expenditures 
with respect to a general election. 
‘‘(c) INCREASE IN LIMIT FOR CANDIDATES FACING 
NONPARTICIPATING OPPONENTS.—
contributions made by political committees of polit-
ical parties. 
‘‘(2) Except as provided in subsection (b), the 
remainder of the funds shall be derived from con-
tributions made to the committee by individuals. 
‘‘(b) TREATMENT OF CANDIDATES RECEIVING PUB-
LIC SUBSIDY PAYMENTS FOR GENERAL ELECTION.—In 
the case of the principal campaign committee of a certified 
public subsidy candidate receiving public subsidy pay-
ments for a general election under subtitle B, one-third 
of the funds used for such election by the committee shall 
be provided by the Commission as a payment under sec-
tion 512. 
‘‘Subtitle D—Tax Rebate Certifi-
cates for Individual Contribu-
tors 
‘‘SEC. 531. TAX REBATE CERTIFICATES FOR INDIVIDUALS 
MAKING CONTRIBUTIONS TO CANDIDATE. 
‘‘Each certified public subsidy candidate shall provide 
a tax rebate certificate to each individual who makes a 
contribution to the candidate’s principal campaign com-
mittee after the candidate is certified under section 502, 
for purposes of enabling the individual to receive the re-
fundable credit provided under section 36 of the Internal 
Revenue Code of 1986.
‘‘SEC. 532. COORDINATION WITH SECRETARY OF THE 
TREASURY. 
‘‘In issuing regulations to carry out this subtitle, the 
Commission shall consult with the Secretary of the Treas-
ury. 
‘‘Subtitle E—Enforcement 
‘‘SEC. 541. WITHDRAWAL OF CERTIFICATION. 
‘‘If the Commission determines that a certified public 
subsidy candidate has made expenditures in excess of the 
applicable limits under section 521, has failed to meet any 
other requirement of this title, or otherwise no longer 
meets the requirements for certification under subtitle A, 
the Commission shall revoke the candidate’s certification. 
‘‘SEC. 542. PENALTIES FOR SPENDING IN EXCESS OF LIM-
ITS. 
‘‘(a) NOTIFICATION OF EXCESS EXPENDITURES.—If 
the Commission determines that a certified public subsidy 
candidate with respect to an election has made expendi-
tures for the election in excess of the applicable limit 
under section 521, the Commission shall notify the can-
didate. 
‘‘(b) ASSESSMENT OF PENALTY.—Any certified pub-
lic subsidy candidate with respect to an election who 
makes expenditures for the election in excess of the appli-
cable limit under section 521 shall pay a civil money pen-
alty to the Commission in an amount determined as fol-
lows: 
‘‘(1) In the case of a candidate who makes ex-
penditures which exceed the limit by 2.5 percent or 
less, an amount equal to the amount of the excess 
expenditures. 
‘‘(2) In the case of a candidate who makes ex-
penditures which exceed the limit by more than 2.5 
percent and less than 5 percent, an amount equal to 
three times the amount of the excess expenditures. 
‘‘(3) In the case of a candidate who makes ex-
penditures which exceed the limit by more than 5 
percent, an amount equal to three times the amount 
of the excess expenditures plus (if the Commission 
determines that the candidate knowingly and will-
fully made such excess expenditures) an additional 
civil money penalty in an amount determined by the 
Commission.’’. 
SEC. 102. EFFECTIVE DATE. 
The amendments made by section 101 shall apply 
with respect to elections occurring after December 2004.
TITLE II—INCOME TAX CHECK-
OFF FOR FUNDING FOR CER-
TIFIED PUBLIC SUBSIDY CAN-
DIDATES 
SEC. 201. DESIGNATION OF INCOME TAX PAYMENTS FOR 
FUND FOR CERTIFIED PUBLIC SUBSIDY CAN-
DIDATES. 
(a) IN GENERAL.—Subchapter A of chapter 61 of the 
Internal Revenue Code of 1986 (relating to information 
and returns) is amended by adding at the end the fol-
lowing new part: 
‘‘PART IX—DESIGNATION OF INCOME TAX PAY-
MENTS TO CERTIFIED PUBLIC SUBSIDY CAN-
DIDATE FUND
‘‘Sec. 6098. Designation to Certified Public Subsidy Candidate 
Fund.
‘‘SEC. 6098. DESIGNATION TO CERTIFIED PUBLIC SUBSIDY 
CANDIDATE FUND. 
‘‘(a) IN GENERAL.—Every individual (other than a 
nonresident alien) whose adjusted income tax liability for 
the taxable year is $1 or more may designate that $1 shall 
be paid over to the Certified Public Subsidy Candidate 
Fund in accordance with the provisions of section 9511. 
In the case of a joint return of husband and wife having 
an adjusted income tax liability of $2 or more, each spouse 
may designate that $1 shall be paid to the fund.
‘‘(b) ADJUSTED INCOME TAX LIABILITY.—For pur-
poses of subsection (a), the term ‘adjusted income tax li-
ability’ means, for any individual for any taxable year, the 
excess (if any) of—
‘‘(1) the income tax liability (as defined in sec-
tion 6096(b)) of the individual for the taxable year, 
over 
‘‘(2) any amount designated by the individual 
(and, in the case of a joint return, any amount des-
ignated by the individual’s spouse) under section 
6096(a) for such taxable year. 
‘‘(c) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect 
to any taxable year—
‘‘(1) at the time of filing the return of the tax 
imposed by chapter 1 for such taxable year, or 
‘‘(2) at any other time (after the time of filing 
the return of the tax imposed by chapter 1 for such 
taxable year) specified in regulations prescribed by 
the Secretary. 
Such designation shall be made in such manner as the 
Secretary prescribes by regulations except that, if such 
designation is made at the time of filing the return of the 
tax imposed by chapter 1 for such taxable year, such des-
ignation shall be made either on the first page of the re-
turn or on the page bearing the taxpayer’s signature.’’
(b) 
CERTIFIED
PUBLIC
SUBSIDY
CANDIDATE 
FUND.—Subchapter A of chapter 98 of such Code (relat-
ing to establishment of trust funds) is amended by adding 
at the end the following new section: 
‘‘SEC. 9511. CERTIFIED PUBLIC SUBSIDY CANDIDATE 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 ‘Certified Public Subsidy Candidate 
Fund’, consisting of such amounts as may be appropriated 
or credited to such fund as provided in this section or sec-
tion 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Certified Public Subsidy Candidate 
Fund amounts equivalent to the amounts designated 
under section 6098. 
‘‘(c) EXPENDITURES.—Amounts in the Certified 
Public Subsidy Candidate Fund shall be available, as pro-
vided in appropriation Acts, for purposes of making pay-
ments to certified public subsidy candidates under title V 
of the Federal Election Campaign Act of 1971, to the ex-
tent that such amounts exceed the aggregate of all Federal 
administrative costs attributable to the implementation of
‘‘SEC. 36. CREDIT FOR CONTRIBUTIONS TO CERTIFIED PUB-
LIC SUBSIDY CANDIDATES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this subtitle for the taxable year an amount 
equal to the aggregate amount of contributions to certified 
public subsidy candidates made by such individual during 
such taxable year. 
‘‘(b) LIMITATION.—The amount of the credit allowed 
under subsection (a) for a taxable year shall not exceed 
$100. 
‘‘(c) CONTRIBUTIONS TO CERTIFIED PUBLIC SUB-
SIDY CANDIDATES.—For purposes of subsection (a), the 
term ‘contributions to certified public subsidy candidates’ 
means the amount of a contribution for which a tax rebate 
certificate is issued under section 531 of the Federal Elec-
tion Campaign Act of 1971.’’. 
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
from section 36 of such Code’’ before the period at 
the end. 
(2) The table of sections for such subpart C of 
the Internal Revenue Code of 1986 is amended by 
striking the item relating to section 36 and inserting 
the following new items:
‘‘Sec. 36. Credit for contributions to certified public subsidy can-
didates. 
‘‘Sec. 37. Overpayment of taxes.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made with respect 
to elections occurring after December 31, 2004, in taxable 
years beginning after such date.
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