I
107TH CONGRESS
1ST SESSION
H. R. 2780
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
AUGUST 2, 2001
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.—
‘‘(1) IN GENERAL.—The amount of the limit es-
tablished under subsection (a) or subsection (b) with
respect to a candidate in an election shall be in-
creased by an amount equal to the product of—
‘‘(A) the limit established under such sub-
section; and
‘‘(B) the number of candidates seeking the
same office in the election who are not certified
public subsidy candidates under this title with
respect to the election.
‘‘(2) TREATMENT OF CANDIDATES OF MINOR
PARTIES.—In determining the number of candidates
under paragraph (1)(B), there shall not be taken
into account any candidate who is ineligible to re-
ceive a payment under this title pursuant to section
513.
‘‘SEC. 522. SOURCE OF FUNDS USED FOR EXPENDITURES.
‘‘(a) IN GENERAL.—The funds used by the principal
campaign committee of a certified public subsidy can-
didate for making expenditures with respect to an election
shall be derived as follows:
‘‘(1) Not more than one-third of the funds shall
be derived from contributions made to the committee
by other political committees, except that not more
than 10 percent of the funds may be derived from
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 35 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-
‘‘Sec. 35. Credit for contributions to certified public subsidy can-
didates.
‘‘Sec. 36. 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, 2002, in taxable
years beginning after such date.
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