HOUSE CONCURRENT RESOLUTION
 1-1           WHEREAS, In an attempt to enact meaningful campaign finance
 1-2     reform legislation, the 106th Congress of the United States passed
 1-3     the Full and Fair Political Activities Disclosure Act (Public Law
 1-4     106-230), which imposed notification and reporting requirements on
 1-5     political organizations claiming tax-exempt status under Section
 1-6     527 of the Internal Revenue Code; and
 1-7           WHEREAS, Public Law 106-230 took effect July 1, 2000, four
 1-8     days after its introduction; the rapidity of its passage through
 1-9     congress reflected the lawmakers' sense of urgency to act, but it
1-10     also suggests that adequate time was not provided for deliberation
1-11     of the full ramifications of certain provisions; and
1-12           WHEREAS, The goal of this legislation was to respond to
1-13     certain political organizations, known as "stealth PACs," that were
1-14     able to raise and spend unlimited amounts of money for political
1-15     advocacy without having to disclose the sources and amounts of
1-16     donations, all while enjoying tax-exempt status; and
1-17           WHEREAS, While the Texas Legislature supports the laudable
1-18     goal of holding all participants in the political process
1-19     accountable to the public, the members of this body believe that
1-20     this well-intentioned Act has had unintended consequences and has
1-21     adversely affected individuals and organizations beyond its
1-22     original intent; and
1-23           WHEREAS, Public Law 106-230 imposes duplicative and
1-24     burdensome federal reporting and disclosure requirements on local
 2-1     and state candidates, their campaign committees, and local and
 2-2     state political parties that already are required to file detailed
 2-3     reports with their respective state election officials; and
 2-4           WHEREAS, These requirements have created a paperwork
 2-5     nightmare for entities that are clearly outside the intended scope
 2-6     of PL 106-230 without significantly adding to the body of
 2-7     information available to the public; and
 2-8           WHEREAS, A remedy in the form of an exemption for those
 2-9     entities or an exception for information reported and filed
2-10     elsewhere with state officials would not violate the intention of
2-11     enforcing public accountability, since the individuals and
2-12     organizations affected already are required to report and disclose
2-13     to the state the same information that PL 106-230 now requires them
2-14     to report to the Internal Revenue Service; nor would it be
2-15     unprecedented, since a similar exemption already exists for
2-16     candidates, campaign committees, and party organizations engaged in
2-17     federal elections, who are required by FECA to report that
2-18     information to the Federal Election Commission; now, therefore, be
2-19     it
2-20           RESOLVED, That the 77th Legislature of the State of Texas
2-21     hereby respectfully urge the Congress of the United States to amend
2-22     provisions of the Internal Revenue Code of 1986, as added by PL
2-23     106-230, to exempt state and local political committees that are
2-24     required to report to their respective states from notification and
2-25     reporting requirements imposed by PL 106-230; and, be it further
2-26           RESOLVED, That the Texas secretary of state forward official
2-27     copies of this resolution to the president of the United States, to
 3-1     the speaker of the house of representatives and the president of
 3-2     the senate of the United States Congress, and to all the members of
 3-3     the Texas delegation to the congress with the request that this
 3-4     resolution be officially entered in the Congressional Record as a
 3-5     memorial to the Congress of the United States of America.
         Madden                  Ehrhardt                 Kuempel
         Swinford                Elkins                   Lewis of Tarrant
         Walker                  Ellis                    Lewis of Orange
         Homer                   Farabee                  Luna
         Uher                    Flores                   Maxey
         Alexander               Gallego                  McCall
         Allen                   George                   Menendez
         Averitt                 Geren                    Miller
         Bailey                  Giddings                 Morrison
         Berman                  Green                    Naishtat
         Bonnen                  Grusendorf               Najera
         Brown of Kaufman        Gutierrez                Noriega
         Brown of Brazos         Haggerty                 Olivo
         Burnam                  Hamric                   Pickett
         Callegari               Hardcastle               Pitts
         Capelo                  Hartnett                 Puente
         Carter                  Hawley                   Ramsay
         Chavez                  Heflin                   Raymond
         Chisum                  Hilderbran               Reyna of Dallas
         Christian               Hill                     Seaman
         Clark                   Hinojosa                 Shields
         Cook                    Hodge                    Smith
         Corte                   Hope                     Smithee
         Counts                  Hopson                   Solis
         Crabb                   Howard                   Solomons
         Craddick                Hunter                   Talton
         Crownover               Hupp                     Telford
         Danburg                 Isett                    Tillery
         Davis of Harris         Jones of Lubbock         Truitt
         Delisi                  Jones of Bexar           Turner of Coleman
         Denny                   Jones of Dallas          West
         Deshotel                Keel                     Wise
         Driver                  Keffer                   Wohlgemuth
         Dukes                   King of Parker           Woolley
         Dunnam                  Kitchen                  Yarbrough
         Dutton                  Kolkhorst                Zbranek
         Edwards                 Krusee
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.C.R. No. 77 was adopted by the House on
         March 21, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.C.R. No. 77 was adopted by the Senate on May
         15, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor