I
104TH CONGRESS
1ST SESSION
H. R. 296
To reform campaign practices for elections to the House of Representatives
by limiting contributions from political action committees, establishing
tax credits for individual campaign contributions, providing matching
funds for individual small contributions, limiting the use of personal
funds in a campaign, offsetting independent expenditures, encouraging
the use of longer campaign commercials, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. KANJORSKI introduced the following bill; which was referred to the Com-
mittee on House Oversight and, in addition, to the Committees on Ways
and Means and Commerce, 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 reform campaign practices for elections to the House
of Representatives by limiting contributions from political
action committees, establishing tax credits for individual
campaign contributions, providing matching funds for
individual small contributions, limiting the use of per-
sonal funds in a campaign, offsetting independent ex-
penditures, encouraging the use of longer campaign com-
mercials, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘House of Representa-
tives Election Campaign Reform Act of 1995’’.
SEC. 2. LIMITATION ON CONTRIBUTIONS TO HOUSE OF
REPRESENTATIVES CANDIDATES BY POLITI-
CAL ACTION COMMITTEES.
Section 315(a)(2)(A) of the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 441a(a)(2)(A)) is amended
by striking out ‘‘$5,000’’ and inserting in lieu thereof
‘‘$2,000’’.
SEC. 3. CREDIT FOR CONTRIBUTIONS TO CONGRESSIONAL
CAMPAIGNS.
(a) GENERAL RULE.—Part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amend-
ed by inserting a new section 24 as follows:
‘‘SEC. 
24. 
CONTRIBUTIONS 
TO 
CONGRESSIONAL 
CAM-
PAIGNS.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed, subject to the limitations of sub-
section (b), as a credit against the tax imposed by this
chapter, an amount equal to 100 percent of any congres-
sional contribution which is made by such individual with-
in the taxable year, as defined in subsection (c)(1).
‘‘(b) LIMITATIONS.—
‘‘(1) The credit allowed by subsection (a) for a
taxable year shall not exceed an aggregate of $200
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($400 in the case of a joint return) for all congres-
sional contributions by an individual in said year.
‘‘(2) The credit under subsection (a) shall not
be allowed with respect to a congressional contribu-
tion, if the contribution is transmitted to the can-
didate or a campaign committee of the candidate
through an intermediary group, organization, or
committee.
‘‘(c) DEFINITIONS.—For purposes of this subsection:
‘‘(1) The term ‘congressional contribution’
means a contribution or gift of money, payment of
which is made during the taxable year, to an individ-
ual who is a candidate for nomination or election to
the office of Representative in, or Delegate or Resi-
dent Commissioner to, the Congress of the United
States in any primary, general, or special election,
and which—
‘‘(A) is from a taxpayer (or either spouse
in the case of a joint return) who is a resident
of the State in which the election is held; and
‘‘(B) is solely for the use by the recipient
to further his candidacy for nomination or elec-
tion to such office.
‘‘(2) The term ‘candidate’ means an individual
who—
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‘‘(A) publicly announces before the close of
the calendar year in which the contribution or
gift is made that he is a candidate for nomina-
tion or election to one of the offices specified in
paragraph (1); and
‘‘(B) meets the qualifications prescribed by
law to hold such office.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for part IV of subchapter A of chapter 1 of such code
is amended by inserting after the item relating to section
23 the following new item:
‘‘Sec. 24. Contributions to Congressional Campaigns.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions made after De-
cember 31, 1995, in taxable years ending after that date.
(d) The Federal Election Commission shall issue reg-
ulations providing for the biennial indexing of the tax
credit established under this section.
SEC. 4. DESIGNATION OF INCOME TAX PAYMENTS TO THE
HOUSE 
OF 
REPRESENTATIVES 
CAMPAIGN
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:
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‘‘PART IX—DESIGNATION OF INCOME TAX PAY-
MENTS TO BE USED FOR THE HOUSE OF
REPRESENTATIVES CAMPAIGN 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 $2 or more may
designate that $2 shall be paid over to the House of Rep-
resentatives Campaign Trust Fund.
‘‘(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
Presidential Election Campaign Fund) for such taxable
year.
‘‘(c) JOINT RETURNS.—In the case of a joint return
showing adjusted income tax liability of $2 or more, each
spouse may designate that $2 shall be paid over to the
House of Representatives Campaign 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.’’.
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(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 Campaign Trust Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section
shall
apply
to
taxable
years
beginning
after December 31, 1995.
SEC. 5. ESTABLISHMENT OF THE HOUSE OF REPRESENTA-
TIVES CAMPAIGN 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. HOUSE OF REPRESENTATIVES CAMPAIGN
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 Campaign
Trust Fund’, consisting of such amounts as may be appro-
priated or credited to such trust fund as provided in this
section or section 9602(b).
‘‘(b) TRANSFER TO FUND OF AMOUNTS DESIGNATED
BY INDIVIDUALS.—There is hereby appropriated to the
House of Representatives Campaign Trust Fund amounts
equivalent to the amounts designated under section 6097.
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‘‘(c) EXPENDITURE FROM FUND.—Amounts in the
House of Representatives Campaign Trust Fund shall be
available to provide matching payments in accordance with
section 325 of the Federal Election Campaign Act of
1971. Expenditures from the Fund shall be made, in such
manner as the Federal Election Commission may pre-
scribe by regulation, to each candidate who certifies to the
Commission that the candidate and the authorized com-
mittees of the candidate have received contributions total-
ing not less than $25,000, in contributions of $200 or less
from individual contributors who are residents of the State
from which the candidate is running for nomination or
election to the office of Representative in, or Delegate or
Resident Commissioner to, the Congress of the United
States.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for such subchapter A is amended by adding at the end
the following new item:
‘‘Sec. 9511. House of Representatives Campaign Trust Fund.’’.
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SEC. 6. AMENDMENT TO THE FEDERAL ELECTION CAM-
PAIGN ACT OF 1971 RELATING TO REPORTING
OF INDIVIDUAL RESIDENT CONTRIBUTIONS
IN 
ELECTIONS 
FOR 
THE 
OFFICE 
OF
REPRESENTATIVE.
(a) IN GENERAL.—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:
‘‘REPORTING OF INDIVIDUAL RESIDENT CONTRIBUTIONS
IN ELECTIONS FOR THE OFFICE OF REPRESENTATIVE
‘‘SEC. 324. (a) Each primary election or general elec-
tion candidate for the office of Representative in, or Dele-
gate or Resident Commissioner to, the Congress of the
United States who desires to receive matching payments
under section 325 shall report to the Commission all con-
tributions received by the candidate and the authorized
committees of the candidate totaling not less than
$25,000, in contributions of $200 or less from individual
contributors who are residents of the State from which
the candidate is running for nomination or election to the
office of Representative in, or Delegate or Resident Com-
missioner to, the Congress of the United States.
‘‘(b) For purposes of making matching payments
from the House of Representatives Campaign Trust Fund,
the Commission shall certify to the Secretary of the Treas-
ury the amounts reported under subsection (a).’’.
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(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to elections taking place after
December 31, 1994.
SEC. 7. AMENDMENT TO THE FEDERAL ELECTION CAM-
PAIGN ACT OF 1971 RELATING TO MATCHING
PAYMENTS 
FROM 
THE 
HOUSE 
OF 
REP-
RESENTATIVES CAMPAIGN TRUST FUND.
(a) IN GENERAL.—Title III of the Federal Election
Campaign Act of 1971 (2 U.S.C. 301 et seq.), as amended
by section 6, is further amended by adding at the end the
following new section:
‘‘MATCHING PAYMENTS FROM THE HOUSE OF
REPRESENTATIVES CAMPAIGN TRUST FUND
‘‘SEC. 325. (a) ELIGIBILITY
FOR
MATCHING
FUNDS.—A primary election or general election candidate
for the office of Representative who, under section 324,
reports to the Commission that the candidate and the au-
thorized committees of the candidate have received con-
tributions totaling at least $25,000, in contributions of
$200 or less from individual contributors who are resi-
dents of the State from which the candidate is running,
shall be entitled to matching payments from the House
of Representatives Campaign Trust Fund under section
9511 of the Internal Revenue Code of 1986 in an amount
equal to the aggregate total of the first $200 in contribu-
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tions from individuals who are residents of the State from
which the candidate is running.
‘‘(b) MAXIMUM MATCHING BENEFIT.—The aggre-
gate total of matching payments a primary election or gen-
eral election candidate may receive as provided under sub-
section (a) shall not exceed $300,000 in any election.
‘‘(c) RESTRICTION ON ELIGIBILITY FOR MATCHING
FUNDS.—
‘‘(1) A primary election or general election can-
didate for the office of Representative who, under
subsection (a) would qualify for matching funds
must certify to the Commission, under penalty of
perjury, that neither the candidate nor any members
of the candidate’s family, will furnish (by contribu-
tion, loan, or otherwise) from the personal funds of
the candidate or the candidate’s family an aggregate
amount exceeding $100,000 with respect to the elec-
tion.
‘‘(2) Any person who violates the provisions of
paragraph (1) shall be fined not more than $25,000,
or imprisoned not more than five years, or both. Any
officer, employee, or agent of any political committee
who knowingly consents to any expenditure in viola-
tion of the provisions of paragraph (1) shall be fined
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not more than $25,000, or imprisoned not more
than five years, or both.
‘‘(3) For the purposes of paragraph (1), the
term ‘candidate’s family’ means an individual who is
related to the candidate as father, mother, son,
daughter, brother, sister, grandfather, grandmother,
grandson, granddaughter, uncle, aunt, first cousin,
nephew, niece, husband, wife, father-in-law, mother-
in-law, son-in-law, daughter-in-law, brother-in-law,
sister-in-law, 
grandfather-in-law, 
grandmother-in-
law, stepfather, stepmother, stepson, stepdaughter,
stepbrother, stepsister, half brother, or half sister.
‘‘(d) ADDITIONAL MATCHING FUNDS.—If a can-
didate refuses to make the certification required under
subsection (c), all other candidates eligible under sub-
section (a), with respect to that primary or general elec-
tion, shall be entitled to matching payments from the
House of Representatives Campaign Trust Fund under
section 9511 of the Internal Revenue Code of 1986 in an
amount equal to the total of all contributions they receive
from individuals regardless of State of residence of the
contributors and for amounts up to $1,000.
‘‘(e) COMPENSATION
TO
OPPONENTS
OF
CAN-
DIDATES WHO VIOLATE THE PERSONAL FUNDS LIMITA-
TION CERTIFICATION.—If a candidate is found under sub-
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section (c)(2) to have violated the provisions of subsection
(c)(1), all other candidates eligible under subsection (a),
with respect to that primary or general election, shall be
entitled to payments from the House of Representatives
Campaign Trust Fund under section 9511 of the Internal
Revenue Code of 1986 in an amount equal to the amount
in excess of $100,000 as provided under subsection (c)(1).
‘‘(f) INDEPENDENT EXPENDITURES OFFSET.—
‘‘(1) If a candidate certified under subsection
(c) is notified by the Commission, as provided under
section 304 (d) or (e) of the Federal Election Cam-
paign Act (2 U.S.C. 434) that independent expendi-
tures are made during an election cycle by one or
more person or entity aggregating an amount in ex-
cess of $10,000 in opposition to such certified can-
didate or for an opponent of such candidate, the no-
tified candidate shall be entitled to payments from
the House of Representatives Campaign Trust Fund
under section 9511 of the Internal Revenue Code of
1986 in an amount equal to 300 percent of the
amount of such independent expenditures.
‘‘(2) Any person or entity found by the Com-
mission to have willfully or intentionally sought to
subvert the intent of this subsection shall be fined
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not more than $25,000, or imprisoned not more
than five years, or both.
‘‘(g) REPAYMENT OF TRUST FUND FROM EXCESS
FUNDS.—
‘‘(1) If at the conclusion of a primary election
or general election in which a candidate who has re-
ceived payments from the House of Representatives
Campaign Trust Fund under section 9511 of the In-
ternal Revenue Code of 1986 has excess campaign
funds attributable to that election, such candidate
shall within thirty days refund to the trust fund the
amount of the excess campaign funds which equals
the pro rata share that payments provided to such
candidate from the trust fund accounted for of such
candidate’s total aggregated receipts from all
sources with respect to such election.
‘‘(2) In no case shall the amount of refund re-
quired under paragraph (1) exceed the total aggre-
gated payments provided to such candidate from the
trust fund with respect to that election.
‘‘(h) INDEXING REGULATION.—The Federal Election
Commission shall issue regulations providing for the bien-
nial indexing of the provisions of subsections (a) and (b).’’.
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(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to elections taking place after
December 31, 1994.
SEC. 8. AMENDMENTS TO SECTION 304 OF THE FEDERAL
ELECTION CAMPAIGN ACT OF 1971 WITH RE-
SPECT TO INDEPENDENT EXPENDITURES.
Section 304 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 434) is amended by adding at the end
the following:
‘‘(d)(1) Any independent expenditures made, or obli-
gated to be made, by any person or entity in an election
for the office of Representative in, or Delegate or Resident
Commissioner to, the Congress which in the aggregate
total more than $10,000 shall be reported by such person
or entity to the Commission within twenty-four hours after
such independent expenditures are made. Thereafter, any
independent expenditures by such person or entity in the
same election cycle shall be reported by such person or
entity to the Commission within twenty-four hours after
such expenditures are made or obligated.
‘‘(2) Such statements shall be filed with the Commis-
sion and the Secretary of State for the State involved and
shall contain a statement under penalty of perjury by the
person or entity making the independent expenditures, or
by the person or entity incurring the obligation to make
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amount of such expenditure or expenditures made by each
such person or entity in coordination, consultation, or con-
cert with such other person, persons, entity, or entities
when the total amount of all expenditures made by such
persons or entities in coordination, consultation, or concert
with each other exceeds the applicable amount provided
in such subsection.’’.
SEC. 9. AMENDMENTS RELATING TO BROADCAST MEDIA
RATES AND DISCLOSURES.
(a) Section 315(b) of the Communications Act of
1934 (47 U.S.C. 315(b)) is amended by inserting at the
end thereof the following: ‘‘Provided, however, That in the
case of a candidate who has made the certification re-
quired under section 325(c) of the Federal Election Cam-
paign Act of 1971, paragraph (1)(A) shall be applied with-
out regard to the phrase ‘class and’ if the unit is at least
one but not more than five minutes in length’’.
(b) Section 318(a) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 441d(a)), is amended by—
(1) striking out the period at the end of para-
graph 3 and inserting in lieu thereof; ‘‘;’’; and
(2) adding at the end thereof the following:
‘‘(4) if paid for or authorized by a candidate in
an election for the office of Representative in, or
Delegate or Resident Commissioner to, the Congress
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who is a candidate, or the authorized committee of
such candidate, who has not made the certification
required under section 325(c) of the Federal Elec-
tion Campaign Act of 1971, such communication
shall also contain—
‘‘(A) in the case of a radio broadcast sta-
tion the following oral, or
‘‘(B) in the case of a television broadcast
state the following oral and printed, or
‘‘(C) in the case of a newspaper, magazine,
outdoor advertising facility, direct mailing, or
any other type of general public political adver-
tising the following printed
sentence: ‘This candidate has not agreed to abide by
the spending limits for this congressional election
campaign set forth in the Federal Campaign Act.’.’’.
SEC. 10. PENALTIES.
(a) It is unlawful for any person knowingly and will-
fully—
(1) to furnish any false, fictitious, or fraudulent
evidence, books, or information (including any cer-
tification, verification, notice, or report) to the Com-
mission under this Act, or to include in any evi-
dence, books, or information so furnished any mis-
representation of a material fact, or to falsify or
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conceal any evidence, books, or information relevant
to a certification by the Commission under this Act;
or,
(2) to fail to furnish to the Commission any
records, books, or information requested by it for
purposes of this Act.
(b) Any person who violates the provisions of para-
graph (a)(1) shall be fined not more than $10,000, or im-
prisoned not more than five years, or both.
SEC. 11. RESTRICTIONS ON CONTROL OF CERTAIN TYPES
OF POLITICAL COMMITTEES BY CANDIDATES.
Section 303 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 432) is amended by adding at the end
the following:
‘‘(j) A candidate for the office of Representative in,
or Delegate or Resident Commissioner to, the Congress
of the United States may not establish, maintain, or con-
trol a political committee, other than an authorized com-
mittee of the candidate or a committee of a political
party.’’.
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Com-
mission such sums as may be necessary for the purpose
of carrying out its functions under this Act.
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SEC. 13. EFFECIVE DATE.
Except as otherwise provided in this Act, this Act
shall take effect after December 31, 1994.
SEC. 14. SEVERABILITY.
If any provision of this Act or any amendment made
to this Act, or the application of any such provision to
any person or circumstances is held invalid, the validity
of any other such provision, and the application of such
provision to other persons and circumstances shall not be
affected thereby.
Æ
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