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