To amend the Internal Revenue Code of 1986 to provide that the graduated income tax rates that apply to principal campaign committees of candidates for Congress shall apply to all comparable committees of candidates for State and local offices.

May 16, 2001

Mr. SENSENBRENNER introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide that the graduated income tax rates that apply to principal campaign committees of candidates for Congress shall apply to all comparable committees of candidates for State and local offices.

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 `State and Local Candidate Fairness Act of 2001'.

SEC. 2. GRADUATED RATES TO APPLY TO PRINCIPAL CAMPAIGN COMMITTEES OF CANDIDATES FOR STATE AND LOCAL OFFICES.

(a) IN GENERAL- Subparagraph (A) of section 527(h)(2) of the Internal Revenue Code of 1986 (defining principal campaign committee) is amended to read as follows:

`(A) IN GENERAL- For purposes of this subsection, the term `principal campaign committee' means the political committee designated by a candidate for Congress or for State or local public office as his principal campaign committee for purposes of this subsection. A candidate for Congress may designate under the preceding sentence only a committee designated by such candidate as his principal campaign committee for purposes of section 302(e) of the Federal Election Campaign Act of 1971 (2 U.S.C. 432(e)).'

(b) CONFORMING AMENDMENT- Subparagraph (B) of section 527(h)(2) of such Code is amended by striking `subparagraph (A)(ii)' and inserting `the first sentence of subparagraph (A)'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

END