By Madden, Swinford, Walker, Homer, Uher, et al. H.C.R. No. 77
77R3990 SMC-D
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.