I
106TH CONGRESS
1ST SESSION
H. R. 2053
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
JUNE 8, 1999
Mr. ENGEL (for himself and Mr. BOEHLERT) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Commerce, for a period to be subsequently de-
termined 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Checkoff for Charity
Act of 1999’’.
TITLE I—CHECKOFF FOR
CHARITY
SEC. 101. DESIGNATION OF OVERPAYMENTS AND CON-
TRIBUTIONS FOR CHARITY.
(a) IN GENERAL.—Subchapter A of chapter 61 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new part:
‘‘PART IX—DESIGNATION OF OVERPAYMENTS
AND CONTRIBUTIONS FOR CHARITY
‘‘Sec. 6097. Designation.
‘‘SEC. 6097. DESIGNATION.
‘‘(a) IN GENERAL.—In the case of an individual, with
respect to each taxpayer’s return for the taxable year of
the tax imposed by chapter 1, such taxpayer may des-
ignate that—
‘‘(1) a specified portion (but not less than $1)
of any overpayment of tax for such taxable year, and
‘‘(2) any cash contribution which the taxpayer
includes with such return,
shall be paid to an eligible organization, or for such use
as is otherwise provided, under title II of the Checkoff for
Charity Act of 1999.
‘‘(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 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, 1999.
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.—
(1) RATES
OF
PAY.—Except as provided in
paragraph (2), members shall serve without pay.
(2) PROHIBITION OF COMPENSATION OF FED-
ERAL
EMPLOYEES.—Members of the Commission
who are full-time officers or employees of the United
States may not receive additional pay, allowances, or
benefits by reason of their service on the Commis-
sion.
(f) TRAVEL EXPENSES.—Each member shall receive
travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5,
United States Code.
(g) QUORUM.—Eight members of the Commission
shall constitute a quorum but a lesser number may hold
hearings.
(h) CHAIRMAN; VICE CHAIRMAN.—The Chairman
and Vice Chairman of the Commission shall be designated
by the President at the time of the appointment. The term
of office of the Chairman shall be three years.
(i) MEETINGS.—The Commission shall meet at the
call of the Chairman or a majority of its members.
SEC. 204. DIRECTOR AND STAFF OF COMMISSION; EXPERTS
AND CONSULTANTS.
(a) DIRECTOR.—The Commission shall, without re-
gard to section 5311(b) of title 5, United States Code,
have a Director who shall be appointed by Commission.
The Director shall be paid at a rate not to exceed the rate
of basic pay payable for level V of the Executive Schedule.
(b) STAFF.—Subject to rules prescribed by the Com-
mission, and without regard to section 5311(b) of title 5,
United States Code, the Director may appoint additional
personnel as the Director considers appropriate.
(c) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Commission shall
be appointed subject to the provisions of title 5, United
States Code, governing appointments in the competitive
service, and shall be paid in accordance with the provisions
of chapter 51 and subchapter III of chapter 53 of that
title relating to classification and General Schedule pay
rates.
(d) EXPERTS AND CONSULTANTS.—Subject to rules
prescribed by the Commission, the Director may procure
temporary and intermittent services under section 3109(b)
of title 5, United States Code, but at rates for individuals
not to exceed the daily equivalent of the rate of basic pay
payable for level V of the Executive Schedule.
(e) STAFF OF FEDERAL AGENCIES.—Upon request
of the Director, the head of any Federal department or
agency may detail, on a reimbursable basis, any of the
personnel of that department or agency to the Commission
to assist it in carrying out its duties under this Act.
SEC. 205. POWERS OF COMMISSION.
(a) HEARINGS
AND SESSIONS.—The Commission
may, for the purpose of carrying out this Act, hold hear-
ings, sit and act at times and places, take testimony, and
receive evidence as the Commission considers appropriate.
The Commission may administer oaths or affirmations to
witnesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Commission may, if authorized by the
Commission, take any action which the Commission is au-
thorized to take by this section.
(c) OBTAINING OFFICIAL DATA.—The Commission
may secure directly from any department or agency of the
United States information necessary to enable it to carry
out this Act. Upon request of the Chairman or Vice Chair-
man of the Commission, the head of that department or
agency shall furnish that information to the Commission.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Chairman.
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other departments and agencies of the United
States.
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Commission, the Administrator of General
Services shall provide to the Commission, on a reimburs-
able basis, the administrative support services necessary
for the Commission to carry out its responsibilities under
this Act.
(g) SUBPOENA POWER.—
(1) IN GENERAL.—The Commission may issue
subpoenas requiring the attendance and testimony of
witnesses and the production of any evidence relat-
ing to any matter under investigation by the Com-
mission. The attendance of witnesses and the pro-
duction of evidence may be required from any place
within the United States at any designated place of
hearing within the United States.
(2) FAILURE TO OBEY A SUBPOENA.—If a per-
son refuses to obey a subpoena issued under para-
graph (1), the Commission may apply to a United
States district court for an order requiring that per-
son to appear before the Commission to give testi-
mony, produce evidence, or both, relating to the
matter under investigation. The application may be
made within the judicial district where the hearing
is conducted or where that person is found, resides,
or transacts business. Any failure to obey the order
of the court may be punished by the court as civil
contempt.
(3) SERVICE OF SUBPOENAS.—The subpoenas
of the Commission shall be served in the manner
provided for subpoenas issued by a United States
district court under the Federal Rules of Civil Pro-
cedure for the United States district courts.
(4) SERVICE OF PROCESS.—All process of any
court to which application is be made under para-
graph (2) may be served in the judicial district in
which the person required to be served resides or
may be found.
(h) IMMUNITY.—Except as provided in this sub-
section, a person may not be excused from testifying or
from producing evidence pursuant to a subpoena on the
ground that the testimony or evidence required by the sub-
poena may tend to incriminate or subject that person to
criminal prosecution. A person, after having claimed the
privilege against self-incrimination, may not be criminally
prosecuted by reason of any transaction, matter, or thing
about which that person is compelled to testify or relating
to which that person is compelled to produce evidence, ex-
cept that the person may be prosecuted for perjury com-
mitted during the testimony or made in the evidence.
(i) CONTRACT AUTHORITY.—The Commission may
contract with and compensate government and private
agencies or persons for property and services, without re-
gard to section 3709 of the Revised Statutes (41 U.S.C.
5).
SEC. 206. ANNUAL REPORTS.
The Commission shall transmit an annual report to
the Secretary of Commerce and the Congress not later
than December 31 of each year. Each such report shall
contain a detailed statement of activities of the Commis-
sion during the fiscal year ending in the year in which
such report is required to be submitted.
SEC. 207. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for each of
the first two fiscal years beginning after the date of the
enactment of this Act such sums as may be necessary for
startup costs for the Commission to carry out this Act.
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