Text: H.R.81 — 101st Congress (1989-1990)All Information (Except Text)

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HR 81 IH
101st CONGRESS
1st Session
 H. R. 81
To amend the Internal Revenue Code of 1986 to allow individuals to direct
that part or all of their income tax refunds be contributed to a trust fund
established for the relief of domestic and international hunger, and to
establish a commission to oversee the distribution of such contributions.
IN THE HOUSE OF REPRESENTATIVES
January 3, 1989
Mr. CARR introduced the following bill; which was referred jointly to the
Committees on Ways and Means and Education and Labor
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals to direct
that part or all of their income tax refunds be contributed to a trust fund
established for the relief of domestic and international hunger, and to
establish a commission to oversee the distribution of such contributions.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Hunger Emergency Assistance and Relief Trust
  Act of 1989'.
SEC. 2. ELECTION OF TAXPAYERS TO DIRECT INCOME TAX REFUNDS TO HUNGER EMERGENCY
ASSISTANCE AND RELIEF TRUST.
  (a) IN GENERAL- Section 6402 of the Internal Revenue Code of 1986 (relating
  to authority to make credits or refunds) is amended by redesignating
  subsections (e), (f), (g), (h), and (i) as subsections (g), (h), (i),
  (j), and (k), respectively, and by inserting after subsection (d) the
  following new subsections:
  `(e) Offset of Amount of Income Tax Refund Designated to be Paid Over to
  Hunger Emergency Assistance and Relief Trust-
  `(1) IN GENERAL- The amount of any overpayment of income tax to be refunded
  to the person making the overpayment shall be reduced by the sum designated
  by the person on the person's return of tax to be paid over to the Hunger
  Emergency Assistance and Relief Trust.
  `(2) NOTICE OF REDUCTION PROVIDED ON REQUEST- The Secretary shall, on
  request of any person who designates an amount to be paid over under
  paragraph (1), notify the person that such amount has been paid over to
  the Hunger Emergency Assistance and Relief Trust.
  `(f) PRIORITIES FOR OFFSET- Any overpayment by a person shall be reduced
  pursuant to subsections (c), (d), and (e), and in that order, before such
  overpayment is credited to the future liability for tax of such person
  pursuant to subsection (b).'
  (b) Conforming Amendments-
  (1) Subsection (a) of section 6402 of the Internal Revenue Code of 1986
  is amended by striking `(c) and (d),' and inserting `(c), (d), and (e),'.
  (2) Subsection (c) of such section is amended by striking the last sentence.
  (3) Paragraph (2) of subsection (d) of such section is amended--
  (A) by striking the first sentence, and
  (B) by amending the heading of such paragraph to read as follows:
  `(2) Application of overpayment against multiple debts- '.
SEC. 3. ESTABLISHMENT OF HUNGER EMERGENCY ASSISTANCE AND RELIEF TRUST.
  (a) IN GENERAL- Subchapter A of chapter 98 of the Internal Revenue Code
  of 1986 (relating to establishment of trust funds) is amended by adding
  at the end the following new section:
`SEC. 9511. HUNGER EMERGENCY ASSISTANCE AND RELIEF TRUST.
  `(a) IN GENERAL- There is established in the Treasury of the United States
  a trust fund to be known as the `Hunger Emergency Assistance and Relief
  Trust', consisting of such amounts as may be transferred or credited to the
  Hunger Emergency Assistance and Relief Trust as provided in this section
  or section 9602(b).
  `(b) TRANSFERS TO HUNGER EMERGENCY ASSISTANCE AND RELIEF TRUST OF AMOUNTS
  DESIGNATED TO THE TRUST BY TAXPAYERS- The Secretary shall, from time to
  time, transfer to the trust an amount equal to the sum of the amounts by
  which overpayments of tax are reduced under section 6402(e).
  `(c) EXPENDITURES FROM HUNGER EMERGENCY ASSISTANCE AND RELIEF TRUST-
  Amounts in the Hunger Emergency Assistance and Relief Trust shall be made
  available to qualified hunger relief services organizations (as defined
  in section 9052(a)) as provided in section 9051.'
  (b) CLERICAL AMENDMENT- The table of sections for subchapter A of chapter
  98 of such Code is amended by adding at the end the following new item:
`Sec. 9511. Hunger Emergency Assistance and Relief Trust.'
SEC. 4. DISTRIBUTION OF HUNGER RELIEF FUNDS.
  (a) IN GENERAL- Subtitle H of the Internal Revenue Code of 1986 (relating
  to financing of presidential election campaigns) is amended by adding at
  the end the following new chapter:
CHAPTER 97--DISTRIBUTION OF HUNGER RELIEF FUNDS
`SUBCHAPTER A. Distribution of funds.
`SUBCHAPTER B. Hunger Commission.
`Subchapter A--Distribution of Funds
`Sec. 9051. Payments to hunger relief services organizations.
`Sec. 9052. Definitions.
`Sec. 9053. Repayments.
`Sec. 9054. Prohibited acts.
`Sec. 9055. Authority of Hunger Commission to inform State attorney general
of possible State law violations.
`Sec. 9056. Reports to Congress; regulations.
`SEC. 9051. PAYMENTS TO HUNGER RELIEF SERVICES ORGANIZATIONS.
  `(a) AUTHORIZED BY HUNGER COMMISSION- On receipt of an authorization from the
  Hunger Commission under section 9062(a) for payment to a qualified hunger
  relief services organization, the Secretary shall pay to the organization
  out of the Hunger Emergency Assistance and Relief Trust established by
  section 9511 the amount authorized by the Commission to be paid.
  `(b) Use of Payments-
  `(1) UNDER CONTROL OF PAYEE- Amounts paid to any qualified hunger relief
  services organization under section 9511(c) (relating to expenditures from
  Hunger Emergency Assistance and Relief Trust) shall, subject to paragraph
  (2), be under the control of the organization.
  `(2) LIMITATION ON ADMINISTRATIVE EXPENSES- An organization shall not use
  more than 10 percent of the sum of any amount paid to it under section
  9511(c) and any contribution made by it to match such paid amount, for
  administrative expenses.
  `(c) NO ENTITLEMENT CREATED BY THIS CHAPTER- Nothing in this chapter shall
  be construed to create any entitlement to any payment under this chapter.
`SEC. 9052. DEFINITIONS.
  `(a) QUALIFIED HUNGER RELIEF SERVICES ORGANIZATION- For purposes of this
  chapter, the term `qualified hunger relief services organization' means
  any organization which--
  `(1) is described in section 501(c)(3),
  `(2) is exempt from Federal income taxation under section 501(a),
  `(3) is recognized under the laws of the State in which it is organized
  and the laws of the State in which it maintains its principal place of
  business, as a charitable organization which has as its principal purpose
  the relief of hunger,
  `(4) has been in existence for at least 2 years,
  `(5) uses not more than 22 percent of its annual budget for administrative
  costs and evidences such use in its annual report,
  `(6) satisfies the Commission that the organization has developed, and is
  able to implement, a hunger relief plan,
  `(7) agrees in writing to obtain and furnish to the Commission such
  information or evidence as the Commission may request concerning the
  operations of the organization,
  `(8) agrees in writing to keep and furnish to the Commission such records,
  books, and other information as the Commission may request, and
  `(9) agrees, on request of the Commission, to be audited and examined by the
  Commission, and to pay any amounts required to be paid under section 9053.
  `(b) HUNGER RELIEF PLAN- For purposes of this chapter, the term `hunger
  relief plan' means a plan for the amelioration or alleviation of actual
  or threatened starvation or severe malnutrition of individuals.
  `(c) COMMISSION- For purposes of this chapter, the term `Commission'
  means the Hunger Commission established by section 9061.
`SEC. 9053. REPAYMENTS.
  `(a) IN GENERAL- If the Commission determines that any organization
  receiving any amount under section 9511(c) has engaged in any prohibited
  act described in section 9054--
  `(1) the Commission shall notify the organization of the act and the amounts
  (if any) involved,
  `(2) the organization shall pay to the Secretary of the Treasury an amount
  equal to the amounts (if any) involved, and
  `(3) the Commission may direct the Secretary of the Treasury to deny the
  organization exemption from taxation under section 501(a) only for taxable
  years after the taxable year during which the prohibited act occurred.
  `(b) DEPOSIT OF REPAYMENTS- Any payment received by the Secretary of the
  Treasury under subsection (a)(2) shall be deposited in the Hunger Emergency
  Assistance and Relief Trust.
`SEC. 9054. PROHIBITED ACTS.
  `It shall be unlawful for any organization which is paid any amount
  under section 9511(c) in respect of a hunger relief plan to do any of the
  following acts:
  `(1) FAIL TO MATCH PAYMENT- Fail to make a matching contribution to the
  hunger relief plan in an amount equal to such paid amount.
  `(2) FAIL TO PROPERLY USE PAYMENT- Fail to use such paid amount and the
  matching contribution in connection with the hunger relief plan in respect
  of which such amount is paid.
  `(3) INCUR EXCESSIVE ADMINISTRATIVE EXPENSES- Use more than 10 percent of
  any such paid amount or more than 10 percent of any matching contribution
  during any calendar year for administrative expenses.
  `(4) NOT COMPLY WITH CERTAIN COMMISSION REQUESTS- Fail to comply with
  any request by the Commission described in paragraph (7), (8), or (9)
  of section 9052(a).
`SEC. 9055. AUTHORITY OF HUNGER COMMISSION TO INFORM STATE ATTORNEY GENERAL
OF POSSIBLE STATE LAW VIOLATIONS.
  `The Commission may furnish the Attorney General of the State in which any
  organization receiving amounts under this chapter is organized or maintains
  its principal place of business any information received by the Commission
  indicating that the organization may be in violation of State law.
`SEC. 9056. REPORTS TO CONGRESS; REGULATIONS.
  `(a) REPORTS- On or before June 1, 1989, and annually thereafter,
  the Commission shall submit to the Select Committee on Hunger of the
  House of Representatives, the Committee on Appropriations of the House
  of Representatives, and the Committee on Appropriations of the Senate,
  a report containing a detailed accounting of funds authorized to be paid
  from the Hunger Emergency Assistance and Relief Trust.
  `(b) REGULATIONS- The Commission may prescribe such regulations concerning
  the conduct of examinations and audits, and the keeping and submission of
  records, books, and other information, as it deems necessary to carry out
  the functions and duties imposed on it by this Chapter.
`Subchapter B--Hunger Commission
`Sec. 9061. Establishment.
`Sec. 9062. Duties.
`Sec. 9063. Membership.
`Sec. 9064. Term of office.
`Sec. 9065. Compensation of Commission members.
`Sec. 9066. Powers.
`Sec. 9067. Director and staff of Commission.
`Sec. 9068. Rules governing Commission meetings.
`Sec. 9069. Authorization of appropriations.
`SEC. 9061. ESTABLISHSMENT.
  `There is established a commission to be known as the Hunger Commission.
`SEC. 9062. DUTIES.
  `(a) Distribution of Funds to Qualified Hunger Relief Services Organizations-
  `(1) MATCHING GRANTS- The Commission shall direct the Secretary of the
  Treasury to pay from the Hunger Emergency Assistance and Relief Trust any
  amount the Commission deems appropriate, to any qualified hunger relief
  services organization for the purpose of providing hunger relief services
  under a hunger relief plan, if the organization agrees to, and demonstrates
  to the Commission the capacity to, contribute an amount for such purpose
  equal to the amount to be paid to the organization.
  `(2) LIMITATION- The Commission may not direct under subsection (a)
  the payment of more than $100,000 to a single organization in a single
  fiscal year.
  `(b) FUNDS TO BE DISTRIBUTED WITHIN 180 DAYS- Within 180 days after the
  date any amount is received in the Hunger Emergency Assistance and Relief
  Trust, the Commission shall authorize the payment of such amount to 1 or
  more qualified hunger relief services organizations.
  `(c) AT LEAST 50 PERCENT OF FUNDS TO BE USED FOR DOMESTIC HUNGER RELIEF- At
  least 50 percent of amounts received into the Hunger Emergency Assistance
  and Relief Trust during any calendar year shall be paid to qualified
  hunger relief services organizations for the purpose of providing hunger
  relief services in the United States (or bearing administrative expenses
  associated with the provision of such services). To the extent practical,
  the Commission shall assure that both rural and urban areas of the United
  States receive a fair proportion of the hunger relief services provided
  in the United States under this chapter.
`SEC. 9063. MEMBERSHIP.
  `(a) 5 MEMBERS- The Commission shall consist of 5 members.
  `(b) Appointment-
  `(1) PRESIDENT APPOINTS 4- During January 1989, the President shall appoint
  4 Commission members. 2 appointees shall be from the Democratic Party and
  the other 2 appointees shall be from the Republican Party.
  `(2) PRESIDENTIAL APPOINTEES APPOINT CHAIR- The 4 Commission members
  appointed under paragraph (1) shall appoint another individual to be the
  Chair of the Commission.
  `(c) VACANCIES- A vacancy in the Commission shall be filled in the manner
  in which the original appointment was made.
`SEC. 9064. TERM OF OFFICE.
  `(a) 3. YEARS- Appointment to the Commission shall be for a term of 3
  years to begin on January 1, 1989, and every 3rd year thereafter.
  `(b) EXCEPTIONS-
  `(1) FILLING OF VACANCY- Any member appointed to fill a vacancy occurring
  before the expiration of the term for which the predecessor for such member
  was appointed shall be appointed only for the remainder of such term.
  `(2) SUCCESSION- A member may serve after the expiration of the term of
  office of such member until his successor has taken office.
`SEC. 9065. COMPENSATION OF COMMISSION MEMBERS.
  `Commission members shall not receive pay, allowances, or benefits by
  reason of their service on the Commission.
`SEC. 9066. POWERS.
  `(a) HEARINGS- The Commission, may, in the United States, for the purpose
  of performing its duties under this chapter, hold such hearings, sit and
  act at such times and places, take such testimony, receive such evidence,
  and conduct such audits of organizations requesting or receiving funds from
  the Commission, as the Commission considers appropriate. The Commission
  may administer oaths or affirmations to witnesses appearing before it.
  `(b) OBTAINING OFFICIAL DATA- The Commission may secure directly from any
  department or agency of the United States information necessary to enable
  it to perform duties of the Commission under this chapter. On request of
  the Chair of the Commission, the head of such department or agency shall
  furnish such information to the Commission.
  `(c) SUBPOENAS-
  `(1) AUTHORITY TO ISSUE SUBPOENAS- The Commission may issue subpoenas
  requiring witnesses to attend and testify and to produce evidence relating
  to any matter under investigation by the Commission. Such witness attendance
  and production of evidence may be required from any place within or without
  the United States at any designated place of hearing in the United States.
  `(2) GRANT OF IMMUNITY- An individual may not be prosecuted or subjected
  to any penalty or forfeiture by reason of any transaction, matter, or thing
  concerning which such individual is compelled to testify or produce evidence,
  after having claimed the privilege against self-incrimination, except such
  individual shall not be exempt from prosecution and punishment for perjury
  committed in so testifying. Excuse from attending and testifying or from
  producing books, records, correspondence, documents, or other evidence
  in obedience to a subpoena, on the ground that the testimony or evidence
  required of an individual may tend to incriminate or subject such individual
  to a penalty or forfeiture shall not be granted to any such individual.
  `(3) CONSEQUENCES OF REFUSAL TO OBEY SUBPOENA- Any individual issued a
  subpoena under this subsection who refuses to obey such subpoena or is
  guilty of contumacy, may, on application by the Commission, be ordered
  by any court of the United States in the judicial district in which the
  hearing is conducted or within which such individual if found, resides,
  or transacts business, to appear before the Commission to produce evidence
  or give testimony relating to any matter under investigation. Such court
  may punish any failure to obey such order as a contempt of such court.
  `(4) SERVICE OF SUBPOENA- Any subpoena by the Commission shall be served
  in the manner provided for the service of subpoenas issued by a United
  States district court under the Federal Rules of Civil Procedure for the
  United States district courts.
  `(5) SERVICE OF OTHER PROCESS- Any other process of any court to which
  application may be made under this subsection shall be served in the judicial
  district in which the person required to be served resides or is found.
   `(d) GIFTS- The Commission may accept, use, and dispose of gifts of money,
   services, or property.
   `(e) MAILS- The Commission may use the United States mails in the same
   manner and under the same conditions as other departments and agencies
   of the United States.
   `(f) STAFF OF FEDERAL AGENCIES- On request of the Chair of the Commission,
   the head of any Federal agency is authorized to detail, on a reimbursable
   basis, any personnel of such agency to the Commission to assist the
   Commission in carrying out its duties under this chapter.
   `(g) ADMINISTRATIVE SUPPORT SERVICES- The Administrator of General
   Services shall provide to the Commission, on a reimbursable basis, such
   administrative support services as the Chair of the Commission may request.
   `(h) DELEGATION OF AUTHORITY TO MEMBERS AND AGENTS- The Commission may
   delegate to any of its members or agents its authority to take any action
   authorized by this section.
`SEC. 9067. DIRECTOR AND STAFF OF COMMISSION.
   `(a) DIRECTOR- The Commission may appoint a Director to be paid at a
   rate not to exceed the maximum rate of basic pay payable for GS-14 of
   the General Schedule.
   `(b) STAFF- With the approval of the Commission, the Director may
   appoint additional personnel subject to the provisions of title 5,
   United States Code, governing appointments in the competitive service,
   and such personnel shall be paid in accordance with the provisions of
   chapter 51 and subchapter III of chapter 53 of such title relating to
   classification and General Schedule pay rates.
   `(c) EXPERTS AND CONSULTANTS-  Subject to such rules as may be prescribed
   by the Commission, the Director may procure temporary and intermittent
   services under section 3109(b) of title 5, United States Code.
`SEC. 9068. RULES GOVERNING COMMISSION MEETINGS.
   `(a) QUORUM- The Chair of the Commission and 2 other Commission members
   shall constitute a quorum.
   `(b) MEETINGS- The Commission shall meet not less frequently than quarterly,
   at the call of a majority of its members, in sessions open to the public.
   `(c) VOTING- The Chair of the Commission shall not have the power to vote
   at any Commission meeting, except to break a tie.
`SEC. 9069. AUTHORIZATION OF APPROPRIATIONS.
   `For administrative expenses, there are authorized to be appropriated
   to the Commission an amount not to exceed $150,000 for each fiscal year
   beginning after September 30, 1988.'
   (b) Clerical Amendments-
   (1) Subtitle H of the Internal Revenue Code of 1986 is amended by amending
   the heading for such subtitle to read as follows:
`Subtitle H--Financing of Presidential Election Campaigns; Distribution of
Hunger Relief Funds'
   (2) The table of chapters for such subtitle is amended by adding at the
   end the following new item:
` CHAPTER 97. Distribution of hunger relief funds.'
   (3) The table of subtitles for such Code is amended by amending the item
   relating to subtitle H by striking `campaigns.' and inserting `campaigns;
   distribution of hunger relief funds.'.
SEC. 5. EFFECTIVE DATES.
  (a) ELECTION OF TAXPAYERS TO DIRECT INCOME TAX REFUNDS TO HUNGER EMERGENCY
  ASSISTANCE AND RELIEF TRUST-  The amendments made by section 2 shall apply
  to taxable years beginning after December 31, 1988.
   (b)  ESTABLISHMENT OF HUNGER EMERGENCY ASSISTANCE AND RELIEF TRUST- The
   amendments made by section 3 shall apply to the amounts received after
   December 31, 1988.
   (c)  DISTRIBUTION OF HUNGER RELIEF FUNDS- The amendments made by section
   4 shall take effect on January 1, 1989.