I
105TH CONGRESS
1ST SESSION
H. R. 243
To amend the Federal Election Campaign Act of 1971 to provide for expendi-
ture limitations and public financing for House of Representatives general
elections, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mr. OBEY introduced the following bill; which was referred to the Committee
on House Oversight, and in addition to the Committees on Ways and
Means, and Rules, 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 Federal Election Campaign Act of 1971 to
provide for expenditure limitations and public financing
for House of Representatives general elections, 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. SHORT TITLE; FINDING.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Let the Public Decide Campaign Finance Reform Act’’.
(b) FINDING.—The Congress finds that the existing
system of private political contributions has become a fun-
damental threat to the national election process and that
the provisions contained in this Act are necessary to pre-
vent the corruption of the public’s faith in the Nation’s
system of governance.
TITLE I—EXPENDITURE LIMITA-
TIONS AND PUBLIC FINANC-
ING 
FOR 
HOUSE 
OF 
REP-
RESENTATIVES 
GENERAL
ELECTIONS
SEC. 101. NEW TITLE OF FEDERAL ELECTION CAMPAIGN
ACT OF 1971.
The Federal Election Campaign Act of 1971 (2
U.S.C. 431 et seq.) is amended by adding at the end the
following new title:
‘‘TITLE V—EXPENDITURE LIMI-
TATIONS 
AND 
PUBLIC 
FI-
NANCING 
FOR 
HOUSE 
OF
REPRESENTATIVES GENERAL
ELECTIONS
‘‘SEC. 501. LIMITATION ON EXPENDITURES IN HOUSE OF
REPRESENTATIVES GENERAL ELECTIONS.
‘‘A candidate in a House of Representatives general
election may not make expenditures other than as pro-
vided in this title.
‘‘SEC. 502. SOURCES OF AMOUNTS FOR EXPENDITURES BY
CANDIDATES IN HOUSE OF REPRESENTA-
TIVES GENERAL ELECTIONS.
‘‘The only sources of amounts for expenditures by
candidates in House of Representatives general elections
shall be—
‘‘(1) the Grassroots Good Citizenship Fund,
under section 506; and
‘‘(2) additional amounts from State and na-
tional party committees under section 507.
‘‘SEC. 503. DISTRICT LIMITATION ON EXPENDITURES BY
MAJOR PARTY CANDIDATES.
‘‘(a) IN GENERAL.—Except as provided in section
507, the maximum amounts of expenditures by major
party candidates in House of Representatives general elec-
tions shall be based on the median household income of
the districts involved, as provided for in subsections (b)
and (c).
‘‘(b) MAXIMUM FOR WEALTHIEST DISTRICT.—In the
congressional district with the highest median household
income, maximum expenditures for all major party can-
didates with respect to a House of Representatives general
election shall be a total of $1,000,000.
‘‘(c) MAXIMUM
FOR OTHER DISTRICTS.—In each
congressional district, other than the district referred to
in subsection (b), the maximum expenditures for all major
party candidates with respect to a House of Representa-
tives general election shall be an amount equal to—
‘‘(1) the maximum amount referred to in sub-
section (b), less
‘‘(2) the amount equal to—
‘‘(A) 2⁄3 of the percentage difference be-
tween the median household income of the dis-
trict involved and the median household income
of the district referred to in subsection (b),
times
‘‘(B) the maximum amount referred to in
subsection (b).
‘‘(d) ALLOCATION.—The maximum expenditure for a
major party candidate in a congressional district shall
bear the same ratio to the maximum amount under sub-
section (b) or (c), as applicable, as the total popular vote
in the district in the five preceding general elections for
candidates of the party involved bears to the total popular
vote in the district for candidates of all major parties.
‘‘SEC. 504. DISTRICT LIMITATION ON EXPENDITURES BY
THIRD PARTY CANDIDATES.
‘‘(a) IN GENERAL.—Except as provided in section
507, the maximum amounts of expenditures by third party
candidates in House of Representatives general elections
shall be based on the median household income of the dis-
tricts involved, as provided for in subsection (b).
‘‘(b) ALLOCATION.—The maximum expenditure for a
third party candidate in a congressional district shall be,
as designated by the candidate, one of the following:
‘‘(1) The amount that bears the same ratio to
the maximum amount under subsection (b) or (c) of
section 503, as applicable, as the total popular vote
in the district for candidates of the third party bears
to the total popular vote for all candidates in the
five preceding general elections.
‘‘(2) The amount that bears the same ratio to
the maximum amount under subsection (b) or (c) of
section 503, as applicable, as the total popular vote,
in the State in which the election is held, for House
of Representatives candidates of the third party
bears to the total popular vote for all candidates in
the State in the five preceding general elections.
‘‘(3) The amount corresponding to the number
of signatures presented to and verified by the Com-
mission according to the following table:
‘‘20,000 signatures ................................................
$75,000
30,000 signatures ..................................................
100,000
40,000 signatures ..................................................
150,000
50,000 signatures ..................................................
200,000
‘‘SEC. 505. DISTRICT LIMITATION ON EXPENDITURES BY
INDEPENDENT CANDIDATES.
‘‘(a) IN GENERAL.—The maximum expenditure for
independent candidates in House of Representatives gen-
eral elections shall be based on the median household in-
come of the districts involved, as provided for in subsection
(b).
‘‘(b) ALLOCATION.—The maximum expenditure for
an independent candidate in a congressional district shall
be, as designated by the candidate, one of the following:
‘‘(1) The amount that bears the same ratio to
the maximum amount under subsection (b) or (c) of
section 503, as applicable, as the total popular vote
in the district for all independent candidates bears
to the total popular vote for all candidates in the
district in the five preceding general elections.
‘‘(2) The amount that bears the same ratio to
the maximum amount under subsection (b) or (c) of
section 503, as applicable, as the total popular vote,
in the State in which the election is held, for inde-
pendent House of Representatives candidates bears
to the total popular vote for all candidates in the
State in the five preceding general elections.
‘‘SEC. 506. GRASSROOTS GOOD CITIZENSHIP FUND.
‘‘(a) CREATION OF FUND.—There is established in
the Treasury a trust fund to be known as the ‘Grassroots
Good Citizenship Fund’, consisting of such amounts as
may be credited to such fund as provided in this section.
‘‘(b) DISTRICT ACCOUNTS.—There shall be estab-
lished within the Grassroots Good Citizenship Fund an ac-
count for each congressional district. The accounts so es-
tablished shall be administered by the Commission for the
purpose of distributing amounts under this title.
‘‘(c) PAYMENTS TO CANDIDATES.—Subject to sub-
section (d), the Commission shall pay to each candidate
from the Grassroots Good Citizenship Fund the maximum
amount calculated for such candidate under section 503,
504, or 505.
‘‘(d) INSUFFICIENT AMOUNTS.—If, as determined by
the Commission, there are insufficient amounts in the
Grassroots Good Citizenship Fund for payments under
subsection (c), the Commission may reduce payments to
candidates so that each candidate receives a pro rata por-
tion of the amounts that are available.
‘‘(e) TRANSFERS TO FUND.—There are hereby cred-
ited to the Grassroots Good Citizenship Fund amounts
equivalent to the amounts designated under sections 6097
and 6098 of the Internal Revenue Code of 1986.
‘‘(f) EXPENDITURES.—Amounts in the Grassroots
Good Citizenship Fund shall be available for the purpose
of providing amounts for expenditure by candidates in
House of Representatives general elections in accordance
with this title.
‘‘SEC. 507. ADDITIONAL AMOUNTS FROM STATE AND NA-
TIONAL PARTY COMMITTEES.
‘‘(a) CONTRIBUTIONS.—In addition to amounts made
available under section 503 or 504, in the case of a can-
didate in a House of Representatives general election who
is the candidate of a political party, the State and national
committees of that political party may make contributions
to the candidate totaling not more than 5 percent of the
maximum expenditure applicable to the candidate under
section 503 or section 504.
‘‘(b) EXPENDITURES.—A House of Representatives
candidate who is the candidate of a political party may
make expenditures of the amounts received under sub-
section (a).
‘‘SEC. 508. PUBLIC SERVICE ANNOUNCEMENTS.
‘‘(a) IN GENERAL.—Beginning on January 15, and
continuing through April 15 of each year, the Commission
shall carry out a program, utilizing broadcast announce-
ments and other appropriate means, to inform the public
of the existence and purpose of the Grassroots Good Citi-
zenship Fund and the role that individual citizens can play
in the election process by voluntarily contributing to the
fund. The announcements shall be broadcast during prime
time viewing hours in 30-second advertising segments
equivalent to 200 gross rating points per network per
week. The Commission shall ensure that the maximum
number of taxpayers shall be exposed to these announce-
ments. Television networks, as defined by the Federal
Communications Commission, shall provide the broadcast
time under this section as part of their obligations in the
public interest under the Communications Act of 1934.
The Federal Election Commission shall encourage broad-
cast outlets other than the above mentioned television net-
works including radio to provide similar announcements.
‘‘(b) GROSS RATING POINT.—The term ‘gross rating
point’ is a measure of the total gross weight delivered. It
is the sum of the ratings for individual programs. Since
a household rating period is 1 percent of the coverage
base, 200 gross rating points means 2 messages a week
per average household.
‘‘SEC. 509. DEFINITIONS.
‘‘As used in this title—
‘‘(1) the term ‘House of Representatives can-
didate’ means a candidate for the office of Rep-
resentative in, or Delegate or Resident Commis-
sioner to, the Congress;
‘‘(2) the term ‘median household income’
means, with respect to a congressional district, the
median household income of that district, as deter-
mined by the Commission, using the most current
data from the Bureau of the Census;
‘‘(3) the term ‘major party’ means, with respect
to a House of Representatives general election, a po-
litical party whose candidate for the office of Rep-
resentative in, or Delegate or Resident Commis-
sioner to, the Congress in the preceding general elec-
tion received, as the candidate of such party, 25 per-
cent or more of the total number of popular votes
received by all candidates for such office;
‘‘(4) the term ‘third party’ means with respect
to a House of Representatives general election, a po-
litical party whose candidate for the office of Rep-
resentative in, or Delegate or Resident Commis-
sioner to, the Congress in the preceding general elec-
tion received, as the candidate of such party, 5 per-
cent or more but less than 25 percent of the total
number of popular votes received by all candidates
for such office;
‘‘(5) the term ‘independent candidate’ means,
with respect to a House of Representatives general
election, a candidate for the office of Representative
in, or Delegate or Resident Commissioner to, the
Congress who is not the candidate of a major party
or a third party; and
‘‘(6) the term ‘House of Representatives gen-
eral election’ means a general election for the office
of Representative in, or Delegate or Resident Com-
missioner to, the Congress.’’.
SEC. 102. EFFECT OF INVALIDITY OF MANDATORY EXPEND-
ITURE LIMITATIONS.
If any mandatory limitation on expenditures con-
tained in title V of the Federal Election Campaign Act
of 1971, as enacted by section 101, is held invalid—
(1) any House of Representatives candidate, as
defined in section 509 of the Federal Election Cam-
paign Act of 1971, who, in a general election volun-
tarily complies with such limitations shall receive
amounts for expenditures in the same manner and
to the same extent as provided for in that title; and
(2) any House of Representatives candidate, as
defined in section 509 of the Federal Election Cam-
paign Act of 1971, who, in a general election does
not voluntarily comply with such limitations shall be
subject to the limitation on contributions from large
donor multicandidate political committees under sec-
tion 315(l) of the Federal Election Campaign Act of
1971 in the same manner and to the same extent as
if that section were applicable to general elections.
TITLE II—AMENDMENTS TO IN-
TERNAL REVENUE CODE OF
1986
SEC. 201. DESIGNATION OF OVERPAYMENTS AND CON-
TRIBUTIONS FOR GRASSROOTS GOOD CITI-
ZENSHIP FUND.
(a) IN GENERAL.—Subchapter A of chapter 61 of the
Internal Revenue Code of 1986 (relating to returns and
records) is amended by adding at the end the following:
‘‘PART 
IX—DESIGNATION 
OF 
OVERPAYMENTS
AND 
CONTRIBUTIONS 
FOR 
GRASSROOTS
GOOD CITIZENSHIP FUND
‘‘Sec. 6097. Designation of overpayments for Grassroots Good
Citizenship Fund.
‘‘SEC. 6097. DESIGNATION OF OVERPAYMENTS FOR GRASS-
ROOTS GOOD CITIZENSHIP FUND.
‘‘(a) IN GENERAL.—With respect to each taxpayer’s
return for the taxable year of the tax imposed by chapter
1, such taxpayer may designate that—
‘‘(1) a specified portion (not less than $1 or
more than $10,000, and not less than $1 or more
than $20,000 in the case of a joint return) of any
overpayment of tax for such taxable year, and
‘‘(2) any contribution which the taxpayer in-
cludes with such return,
shall be paid over to the Grassroots Good Citizenship
Fund under section 506 of the Federal Election Campaign
Act of 1971.
‘‘(b) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year only at the time of filing the return
of tax imposed by chapter 1 for such taxable year. Such
designation shall be made on the 1st page of the return.
‘‘(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
such subchapter A is amended by adding at the end there-
of the following new item:
‘‘Part IX. Designation of overpayments and contributions for cer-
tain purposes relating to House of Representatives
elections.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
SEC. 202. DESIGNATION OF OVERPAYMENTS AND CON-
TRIBUTIONS FOR DISTRIBUTION TO HOUSE
OF REPRESENTATIVES CANDIDATES.
(a) IN GENERAL.—Part IX of subchapter A of chap-
ter 61 of the Internal Revenue Code of 1986 (relating to
returns and records), as added by section 201, is amended
by adding at the end the following:
‘‘SEC. 6098. DESIGNATION OF OVERPAYMENTS FOR DIS-
TRIBUTION TO HOUSE OF REPRESENTATIVES
CANDIDATES.
‘‘(a) IN GENERAL.—With respect to each taxpayer’s
return for the taxable year of the tax imposed by chapter
1, such taxpayer may designate that—
‘‘(1) a specified portion (not less than $1 or
more than $1,000, and not less than $1 or more
than $2,000 in the case of a joint return) of any
overpayment of tax for such taxable year, and
‘‘(2) any contribution which the taxpayer in-
cludes with such return,
shall be paid to State or national committees of political
parties, as designated by the taxpayer, to be used exclu-
sively for contributions to House of Representatives can-
didates under section 507 of the Federal Election Cam-
paign Act of 1971.
‘‘(b) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year only at the time of filing the return
of tax imposed by chapter 1 for such taxable year. Such
designation shall be made on the 1st page of the return.
‘‘(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 sections
for such subchapter A is amended by inserting after the
item relating to section 6097 the following new item:
‘‘Sec. 6098. Designation of overpayments for distribution to
House of Representatives candidates.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
SEC. 203. INCREASE IN CORPORATE INCOME TAX ON TAX-
ABLE INCOME ABOVE $10,000,000.
(a) IN GENERAL.—Paragraph (4) of subsection (b)
of section 11 of the Internal Revenue Code of 1986 is
amended by striking ‘‘35 percent’’ and inserting ‘‘35.1
percent’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
the date of the enactment of this Act.
(c) USE OF AMOUNTS RECEIVED.—Amounts received
by reason of the amendment made by subsection (a) shall
be paid over to the Grassroots Good Citizenship Fund
under section 506 of the Federal Election Campaign Act
of 1971.
‘‘(i) No person may make any independent expendi-
ture with respect to an election for the office of Represent-
ative in, or Delegate or Resident Commissioner to, the
Congress.’’.
SEC. 402. CLARIFICATION OF DEFINITIONS RELATING TO
INDEPENDENT EXPENDITURES.
(a) 
INDEPENDENT
EXPENDITURE
DEFINITION
AMENDMENT.—Section 301 of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431) is amended by striking
out paragraphs (17) and (18) and inserting the following
new paragraphs:
‘‘(17)(A) The term ‘independent expenditure’ means
an expenditure for an advertisement or other communica-
tion that—
‘‘(i) contains express advocacy; and
‘‘(ii) is made without the participation or co-
operation of, or consultation with, a candidate or a
candidate’s representative.
‘‘(B) The following shall not be considered an inde-
pendent expenditure:
‘‘(i) An expenditure made by an authorized
committee of a candidate for Federal office or a po-
litical committee of a political party.
‘‘(ii) An expenditure made by a person who,
during the election cycle, has made a contribution to
a candidate, where the expenditure is in support of
that candidate or in opposition to another candidate
for the same office.
‘‘(iii) An expenditure made by a person, or a
political committee established, maintained or con-
trolled by such person, who is required to register,
under section 308 of the Federal Regulation of Lob-
bying Act (2 U.S.C. 267) or the Foreign Agents
Registration Act (22 U.S.C. 611) or any successor
Federal law requiring a person who is a lobbyist or
foreign agent to register.
‘‘(iv) An expenditure made by a person who,
during the election cycle, has communicated with or
received information from a candidate or a rep-
resentative of that candidate regarding activities
that have the purpose of influencing that candidate’s
election to Federal office, where the expenditure is
in support of that candidate or in opposition to an-
other candidate for that office.
‘‘(v) An expenditure if, in the same election
cycle, the person making the expenditure is or has
been—
‘‘(I) authorized to raise or expend funds on
behalf of the candidate or the candidate’s au-
thorized committees; or
‘‘(II) serving as a member, employee, or
agent of the candidate’s authorized committees
in an executive or policymaking position.
‘‘(18) The term ‘express advocacy’ means, when a
communication is taken as a whole and with limited ref-
erence to external events, an expression of support for or
opposition to a specific candidate, to a specific group of
candidates, or to candidates of a particular political party,
or a suggestion to take action with respect to an election,
such as to vote for or against, make contributions to, or
participate in campaign activity.’’.
(b) CONTRIBUTION DEFINITION AMENDMENT.—Sec-
tion 301(8)(A) of the Federal Election Campaign Act of
1971 (2 U.S.C. 431(8)(A)) is amended—
(1) in clause (i), by striking ‘‘or’’ after the
semicolon at the end;
(2) in clause (ii), by striking the period at the
end and inserting ‘‘; or’’; and
(3) by adding at the end the following new
clause:
‘‘(iii) any payment or other transaction referred
to in paragraph (17)(A)(i) that does not qualify as
an 
independent 
expenditure 
under 
paragraph
(17)(A)(ii).’’.
TITLE 
V—PROVISIONS 
RELAT-
ING 
TO 
HOUSE 
OF 
REP-
RESENTATIVES 
PRIMARY
ELECTIONS
SEC. 501. LIMITATION ON EXPENDITURES IN HOUSE OF
REPRESENTATIVES ELECTIONS OTHER THAN
GENERAL ELECTIONS.
Section 315 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 441a), as amended by section 401, is
further amended by adding at the end the following new
subsection:
‘‘(j)(1) The maximum expenditures for a candidate
for the office of Representative in, or Delegate or Resident
Commissioner to, the Congress in any election other than
a general election may not exceed 1⁄3 of the maximum ap-
plicable to the candidate in a general election under title
V.
‘‘(2) For purposes of limitations under this Act, any
expenditure by a candidate referred to in paragraph (1),
including an expenditure for the preparation, production,
or presentation of communications through electronic
media or in written form, shall, regardless of when the
expenditure is made, be attributed to the appropriate gen-
eral election, unless such expenditure is made solely for
an election other than a general election.’’.
SEC. 502. LIMITATIONS APPLICABLE TO SMALL DONOR
MULTICANDIDATE POLITICAL COMMITTEES.
(a) IN GENERAL.—Section 315(a) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441a(a)) is
amended by adding at the end the following new para-
graph:
‘‘(9) A small donor multicandidate political commit-
tee may make contributions to any candidate for the office
of Representative in, or Delegate or Resident Commis-
sioner to, the Congress and the authorized committees of
such candidate with respect to an election (other than a
general election) which, in the aggregate, do not exceed
$5,000.’’.
(b) DEFINITIONS.—Section 301 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 431) is amended
by adding at the end the following new paragraphs:
‘‘(21) The term ‘small donor multicandidate political
committee’ means a multicandidate political committee
that does not accept contributions totaling more than
$200 from any single source in a calendar year.
‘‘(22) The term ‘large donor multicandidate political
committee’ means a multicandidate political committee
that accepts contributions totaling more than $200 from
any single source in a calendar year.’’.