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.