BWM H.B. 3569 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
H.B. 3569
By: Madden
4-19-97
Committee Report (Unamended)



BACKGROUND 

During the 1996 election cycle a candidate for state-wide office 
found that fervent 
supporters around the state had opened campaign bank accounts 
without his knowledge. 
The candidate's financial reports were inaccurate to the extent 
that the transactions taking 
place in these accounts were not included because their very 
existence was unknown. 
Election law does not address this circumstance.  The Ethics 
Commission is unaware of 
any other reference in law to this problem.  The possibility of 
this happening to other 
candidates exists until a remedy for the situation is found.

PURPOSE

HB 3569 makes it impossible for a campaign account to be opened 
for a candidate 
without that candidate's knowledge.  Passage will insure that the 
candidate has access to 
information regarding all financial transactions so that the 
reporting which is required by 
law can be accurate.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly 
grant any additional rulemaking 
authority to a state officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1:  Title 16, Revised Statutes is amended by adding 
Article 360. BANK 
ACCOUNTS FOR CANDIDATES FOR PUBLIC OFFICE.

 Section 1. Provides definitions of "candidate" and "financial 
institution."
 
 Section 2. Requires the consent and signature of a candidate for 
a financial  
 institution to open an account in a candidate's name.

 Section 3. Clarifies that the candidate need not be a signatory 
to the account.

SECTION 2:  Effective date.

SECTION 3:  Emergency clause.