HBA-JEK H.C.R. 77 77(R) BILL ANALYSIS Office of House Bill AnalysisH.C.R. 77 By: Madden Elections 2/12/2001 Introduced BACKGROUND AND PURPOSE The United States Congress passed legislation in 2000 (disclosure act) to impose notification and reporting requirements on certain political organizations claiming tax-exempt status. The goal of this legislation was to respond to political organizations, known as "stealth PACs," that were able to raise and spend unlimited amounts of money for political advocacy without disclosure of the sources and amounts of donations. The law has, however, had unintended consequences and has adversely affected individuals and organizations beyond its original intent. The disclosure act has led to duplicative and burdensome federal reporting and disclosure requirements on local and state candidates, their campaign committees, and local and state political parties, all of whom are already required to file detailed reports with their respective state election officials. Exemptions for entities that are clearly outside the intended scope of the disclosure act or an exception for information reported and filed elsewhere with state officials would not violate the intention of the disclosure act. Such an exemption or exception would not be unprecedented, since a similar exemption already exists for candidates, campaign committees, and party organizations engaged in federal elections. House Concurrent Resolution 77 urges the United States Congress to amend the provisions of the Internal Revenue Code of 1986 that were added by the disclosure act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Concurrent Resolution 77 urges the Congress of the United States to amend certain provisions of the Internal Revenue Code of 1986 to exempt state and local political committees that are required to report to their respective states from the notification and reporting requirements set forth by Public Law 106-230.