I
107TH CONGRESS
1ST SESSION
H. R. 151
To amend the Federal Election Campaign Act of 1971 to reform the financing
and conduct of campaigns for elections for Federal office, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 3, 2001
Mr. PETRI introduced the following bill; which was referred to the Committee
on House Administration, and in addition to the Committee on Ways and
Means, for a period to be subsquently 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
reform the financing and conduct of campaigns for elec-
tions for Federal office, 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. DISCLOSURE AND REPORTS RELATING TO
POLLING BY TELEPHONE OR ELECTRONIC
DEVICE.
Title III of the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) is amended by adding at the
end the following new section:
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‘‘DISCLOSURE AND REPORTS RELATING TO POLLING BY
TELEPHONE OR ELECTRONIC DEVICE
‘‘SEC. 323. (a) DISCLOSURE TO RESPONDENTS.—
Any person who conducts a Federal election poll by tele-
phone or electronic device shall disclose to each respondent
the identity of the person paying the expenses of the poll.
The disclosure shall be made at the end of the interview
involved.
‘‘(b) REPORTS TO COMMISSION.—In the case of any
Federal election poll by telephone or electronic device—
‘‘(1) if the results are not to be made public,
the person who conducts the poll shall report to the
Commission the total cost of the poll and all sources
of funds for the poll; and
‘‘(2) the person who conducts the poll shall re-
port to the Commission the total number of house-
holds contacted and include with such report a copy
of the poll questions.
‘‘(c) FEDERAL ELECTION POLL DEFINED.—As used
in this section, the term ‘Federal election poll’ means a
survey—
‘‘(1) in which the respondent is asked to state
opinions or views regarding a future election for
Federal office; and
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‘‘(2) in which more than 1,200 households are
surveyed.’’.
SEC. 2. TAX CREDIT FOR CERTAIN POLITICAL CONTRIBU-
TIONS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section:
‘‘SEC. 25B. CREDIT FOR POLITICAL CONTRIBUTIONS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
one-half of all political contributions, and all newsletter
fund contributions, paid by the taxpayer during the tax-
able year.
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—The credit allowed by
subsection (a) shall not exceed $100 ($200 in the
case of a joint return).
‘‘(2) VERIFICATION.—The credit allowed by
subsection (a) shall be allowed, with respect to any
political contribution or newsletter fund contribution,
only if such contribution is verified in such manner
as the Secretary shall prescribe by regulation.
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‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) POLITICAL
CONTRIBUTION.—The term
‘political contribution’ means a contribution or gift
of money, or the fair market value of a contribution
or gift of property, to—
‘‘(A) an individual who is a candidate for
nomination or election to any Federal, State, or
local elective public office in any primary, gen-
eral, or special election, for use by such indi-
vidual to further the candidacy of the individual
for nomination or election to such office,
‘‘(B) any committee, association, or organi-
zation (whether or not incorporated) organized
and operated exclusively for the purposes of in-
fluencing, or attempting to influence, the nomi-
nation or election of one or more individuals
who are candidates for nomination or election
to any Federal, State, or local elective public of-
fice, for use by such committee, association, or
organization to further the candidacy of such
individual or individuals for nomination or elec-
tion to such office,
‘‘(C) the national committee of a national
political party,
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‘‘(D) the State committee of a national po-
litical party as designated by the national com-
mittee of such party, or
‘‘(E) a local committee of a national polit-
ical party as designated by the State committee
of such party designated under subparagraph
(D).
‘‘(2) NEWSLETTER
FUND.—The term ‘news-
letter fund’ means a fund described in section
527(g)(1).
‘‘(3) 
CANDIDATE.—The 
term 
‘candidate’
means, with respect to any Federal, State, or local
elective public office, an individual who—
‘‘(A) publicly announces before the close of
the calendar year following the calendar year in
which the political contribution is made that the
individual is a candidate for nomination or elec-
tion to such office; and
‘‘(B) meets the qualifications prescribed by
law to hold such office.
‘‘(4) NATIONAL POLITICAL PARTY.—The term
‘national political party’ means—
‘‘(A) in the case of political contributions
made during a taxable year of the taxpayer in
which the electors of President and Vice Presi-
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dent are chosen, a political party presenting
candidates or electors for such offices on the of-
ficial election ballot of ten or more States; or
‘‘(B) in the case of political contributions
made during any other taxable year of the tax-
payer, a political party which met the qualifica-
tions described in subparagraph (A) in the last
preceding election of a President and Vice
President.
‘‘(5) STATE
AND
LOCAL.—The term ‘State’
means the various States and the District of Colum-
bia; and the term ‘local’ means a political subdivi-
sion or part thereof, or two or more political subdivi-
sions or parts thereof, of a State.’’.
‘‘(d) CROSS REFERENCES.—
‘‘For transfer of appreciated property to a polit-
ical organization, see section 84.
‘‘For certain indirect contributions to political
parties, see section 276.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter
1 of such Code (relating to nonrefundable personal cred-
its) is amended by inserting after the item relating to sec-
tion 25A the following new item:
‘‘Sec. 25B. Credit for political contributions.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
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December 31 of the calendar year in which this Act is
enacted.
SEC. 3. PRESIDENTIAL CAMPAIGN FUND.
(a) REPEAL OF PROVISIONS CONCERNING PRESI-
DENTIAL CAMPAIGN FUND.—The following provisions of
the Internal Revenue Code of 1986 are hereby repealed:
(1) Part VIII of subchapter A of chapter 61 of
subtitle F of such Code (relating to designation of
income tax payments to Presidential Election Cam-
paign Fund).
(2) Subtitle H (relating to financing of Presi-
dential election campaigns).
(b) CONFORMING AMENDMENTS.—
(1) TABLE OF PARTS.—The table of parts of
subchapter A of chapter 61 of subtitle F of such
Code is amended by striking the item relating to
part VIII.
(2) TABLE OF SUBTITLES.—The table of sub-
titles of such Code is amended by striking the item
relating to subtitle H.
(c) EFFECTIVE DATES.—
(1) DESIGNATION OF INCOME TAX PAYMENTS
TO
FUND.—The amendment made by subsection
(a)(1) applies to taxable years beginning after De-
cember 31, 1999.
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(2) FINANCING
OF
PRESIDENTIAL
ELECTION
CAMPAIGNS.—The amendment made by subsection
(a)(2) shall take effect on the date that is 2 years
after the date of the enactment of this Act, except
that no payment may be made from the Presidential
Election Campaign Fund or the Presidential Pri-
mary Matching Payment Account with respect to
any Presidential election occurring more than 2
years after the date of the enactment of this Act.
(d) AMOUNTS REMAINING
IN FUNDS.—The Sec-
retary of the Treasury shall deposit into the Treasury of
the United States as miscellaneous receipts any amounts
that remain, on the date that is 2 years after the date
of the enactment of this Act, in the Presidential Election
Campaign Fund or the Presidential Primary Matching
Payment Account.
SEC. 4. REQUIRING MAJORITY OF SENATE AND HOUSE OF
REPRESENTATIVES CANDIDATE FUNDS TO
COME FROM INDIVIDUALS RESIDING IN THE
STATE IN WHICH THE ELECTION IS HELD.
(a) IN GENERAL.—Section 315 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 441a) is amended
by adding at the end the following new subsection:
‘‘(i)(1) A candidate for the office of Senator or Rep-
resentative in, or Delegate or Resident Commissioner to,
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the Congress may not accept contributions with respect
to an election cycle from persons other than local indi-
vidual residents totaling in excess of the total of contribu-
tions accepted from local individual residents (as deter-
mined on the basis of the most recent information included
in reports pursuant to section 304(d).
‘‘(2) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, con-
tributions of the candidate’s personal funds shall be sub-
ject to the following rules:
‘‘(A) To the extent that the amount of the con-
tribution does not exceed the limitation on contribu-
tions made by an individual under subsection
(a)(1)(A), such contribution shall be treated as any
other contribution.
‘‘(B) The portion (if any) of the contribution
which exceeds the limitation on contributions which
may be made by an individual under subsection
(a)(1)(A) shall be allocated in accordance with para-
graph (8).
‘‘(3) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, con-
tributions from a political party or a political party com-
mittee shall be allocated in accordance with paragraph (8).
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‘‘(4) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, any
funds remaining in the candidate’s campaign account
after the filing of the post-general election report under
section 304(a)(2)(A)(ii) for the most recent general elec-
tion shall be allocated in accordance with paragraph (8).
‘‘(5) In determining the amount of contributions ac-
cepted by a candidate for purposes of this subsection, any
contributions accepted pursuant to subsection (j) which
are from persons other than local individual residents shall
be allocated in accordance with paragraph (8).
‘‘(6)(A) Any candidate who accepts contributions that
exceed the limitation under this subsection, as determined
on the basis of information included in reports pursuant
to section 304(d), shall pay to the Commission at the time
of the filing of the report which contains the information,
for deposit in the Treasury, an amount equal to 3 times
the amount of the excess contributions (or, in the case
of a candidate described in subparagraph (C), an amount
equal to 5 times the amount of the excess contributions
plus a civil penalty in an amount determined by the Com-
mission).
‘‘(B) Any amounts paid by a candidate under this
paragraph shall be paid from contributions subject to the
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limitations and prohibitions of this title, including the lim-
itation under this subsection.
‘‘(C) A candidate described in this subparagraph is
a candidate who accepts contributions that exceed the lim-
itation under this subsection as of the last day of the pe-
riod ending on the 20th day before an election or any pe-
riod ending after such 20th day and before or on the 20th
day after such election.
‘‘(7) As used in this subsection, the term ‘local indi-
vidual resident’ means an individual who resides in the
State in which the election involved is held.
‘‘(8) For purposes of this subsection, any amounts
allocated in accordance with this paragraph shall be allo-
cated as follows:
‘‘(A) 50 percent of such amounts shall be
deemed to be contributions from local individual
residents.
‘‘(B) 50 percent of such amounts shall be
deemed to be contributions from persons other than
local individual residents.’’.
(b) REPORTING REQUIREMENTS.—Section 304 of
such Act (2 U.S.C. 434) is amended by adding at the end
the following new subsection:
‘‘(d) Each principal campaign committee of a can-
didate for the Senate or the House of Representatives