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.