I
105TH CONGRESS
1ST SESSION
H. R. 794
To amend the Internal Revenue Code of 1986 and the Federal Election
Campaign Act of 1971 to provide for public financing of House of
Representatives general election campaigns, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 13, 1997
Mr. SABO introduced the following bill; which was referred to the Committee
on House Oversight, and in addition to the Committee on Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 and the Fed-
eral Election Campaign Act of 1971 to provide for public
financing of House of Representatives general election
campaigns, 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.
This Act may be cited as the ‘‘Citizens’ Choice Act’’.
SEC. 2. DESIGNATION OF INCOME TAX PAYMENTS TO THE
HOUSE 
OF 
REPRESENTATIVES 
GENERAL
ELECTION TRUST 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
new part:
‘‘PART IX—DESIGNATION OF INCOME TAX
PAYMENTS TO BE USED FOR THE
HOUSE OF REPRESENTATIVES GEN-
ERAL ELECTION TRUST FUND.
‘‘Sec. 6097. Designation by individuals.
‘‘SEC. 6097. DESIGNATION BY INDIVIDUALS.
‘‘(a) IN GENERAL.—Every individual whose adjusted
income tax liability for the taxable year is $5 or more may
designate that $5 shall be paid over to the House of Rep-
resentatives General Election Trust Fund. The first page
of the return of the taxpayer, or the page bearing the tax-
payer’s signature, shall include a place for designating the
Democratic Party, the Republican Party, or, as written
in by the taxpayer, any other political party as recipient
of the amount designated.
‘‘(b) ADJUSTED INCOME TAX LIABILITY.—For pur-
poses of this section, the adjusted income tax liability of
an individual is the tax liability of such individual (as de-
termined under subsection (b) of section 6096) for the tax-
able year reduced by the amount designated under section
6096 (relating to designation of income tax payments to
the Presidential Election Campaign Fund) for such tax-
able year.
‘‘(c) JOINT RETURNS.—In the case of a joint return
showing an adjusted income tax liability of $10 or more,
each spouse may designate that $5 shall be paid over to
the House of Representatives General Election Trust
Fund.
‘‘(d) MANNER AND TIME OF DESIGNATION.—Sub-
section (c) of section 6096 shall apply to the manner and
time of the designation under this section.’’.
(b) CLERICAL AMENDMENT.—The table of parts for
such subchapter A is amended by adding at the end the
following new item:
‘‘Part IX. Designation of income tax payments to be used for the
House of Representatives General Election Trust
Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
SEC. 3. ESTABLISHMENT OF THE HOUSE OF REPRESENTA-
TIVES GENERAL ELECTION 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. 9512. HOUSE OF REPRESENTATIVES GENERAL ELEC-
TION 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 ‘House of Representatives General
Election Trust Fund’, consisting of such amounts as may
be appropriated or credited to such trust fund as provided
in this section or section 9602(b).
‘‘(b) ACCOUNTS.—The trust fund shall consist of one
account for each political party in each congressional dis-
trict. The amounts designated under section 6097 (relat-
ing to designation by individuals) shall be deposited in the
appropriate accounts and shall be paid to certified House
candidates (as defined in subsection (d)) at such time and
in such manner as the Secretary may prescribe (in con-
sultation with the Federal Election Commission) for the
political parties and congressional districts of residence of
the individuals making the designation.
‘‘(c) TRANSFER TO FUND OF AMOUNTS DESIGNATED
BY INDIVIDUALS.—There is hereby appropriated to the
House of Representatives General Election Trust Fund
amounts equivalent to the amounts designated under sec-
tion 6097.
‘‘REQUIREMENTS FOR HOUSE GENERAL ELECTION CAN-
DIDATES WHO ACCEPT AMOUNTS FROM HOUSE OF
REPRESENTATIVES
GENERAL
ELECTION
CAMPAIGN
TRUST FUND
‘‘SEC. 323. (a) IN GENERAL.—
‘‘(1) CERTIFICATION.—The Commission shall
certify that a candidate for the office of Representa-
tive in, or Delegate or Resident Commissioner to,
the Congress in a general election is eligible to ac-
cept payments from the appropriate account of the
House of Representatives General Election Trust
Fund under section 9512 of the Internal Revenue
Code of 1986 if the candidate certifies the following
(at such time and in such form and manner as the
Commission may require):
‘‘(A) The candidate has received contribu-
tions totaling not less than $60,000 (of which
not more than $1,000 may be from the personal
funds of the candidate) with respect to the elec-
tion.
‘‘(B) The candidate will not furnish (by
contribution, loan, or otherwise) more than
$20,000 with respect to the election from the
personal funds of the candidate.
‘‘(C) Subject to paragraph (2), the can-
didate will not make expenditures (including
funds from the House of Representatives Gen-
eral Election Trust Fund) with respect to the
election totaling more than $600,000.
‘‘(2) WAIVER
OF
EXPENDITURE
LIMITS
FOR
CERTAIN
CANDIDATES.—The 
Commission 
shall
waive the application of paragraph (1)(C) to a can-
didate if the candidate’s opponent in the general
election—
‘‘(A) is not certified with respect to the
election under this section; and
‘‘(B) has accepted contributions with re-
spect to the election totaling not less than
$100,000 or has made expenditures with re-
spect to the election totaling not less than
$100,000.
‘‘(b) ENFORCEMENT.—
‘‘(1) AUDIT
OF
REPORTS.—The Commission
may audit campaign reports submitted under this
Act to assure compliance with the requirements of
this section.
‘‘(2) PENALTY FOR EXCESS EXPENDITURES.—
In the case of a violation of the expenditure limit
provided under subsection (a)(1)(C), the Commission
shall impose a civil penalty in an amount equal to
not less than the amount of the excess expenditure
and not more than four times the amount of the ex-
cess expenditure, except that, in the case of an inad-
vertent violation, the Commission shall impose a civil
penalty in an amount equal to the amount of the ex-
cess expenditure.
‘‘(c) COORDINATION WITH SECRETARY
OF
THE
TREASURY.—The Commission shall transmit to the Sec-
retary of the Treasury the names of candidates certified
under this section, together with such other information
as may be required to enable the Secretary to carry out
section 9512 of the Internal Revenue Code of 1986.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to elections occurring after Decem-
ber 31, 1996.
SEC. 5. LIMITATION ON CERTAIN LOANS BY HOUSE OF REP-
RESENTATIVES 
GENERAL 
ELECTION 
CAN-
DIDATES.
(a) IN GENERAL.—Title III of the Federal Election
Campaign Act of 1971 (2 U.S.C. 301 et seq.), as amended
by section 4, is further amended by adding at the end the
following new section:
‘‘LIMITATION ON CERTAIN LOANS BY HOUSE OF
REPRESENTATIVES GENERAL ELECTION CANDIDATES
‘‘SEC. 324. A general election candidate for the office
of Representative in, or Delegate or Resident Commis-
sioner to, the Congress may not make loans totaling more
than $50,000 to any campaign committee of the candidate
with respect to the election.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to elections occurring after Decem-
ber 31, 1996.
Æ