[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3688 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3688

To amend the Internal Revenue Code of 1986 to require certain political 
  organizations under such Code to report information to the Federal 
              Election Commission, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 2000

Mr. Moore (for himself, Mr. Hoyer, Mrs. Thurman, Mr. Waxman, Mr. Davis 
of Florida, Mrs. Mink of Hawaii, Mr. Frank of Massachusetts, Mr. Evans, 
 Ms. Pelosi, Mr. Peterson of Minnesota, Mr. Barrett of Wisconsin, Mr. 
  Green of Texas, Mr. Hastings of Florida, Mr. Minge, Mr. Nadler, Ms. 
Woolsey, Mr. Farr of California, Ms. McCarthy of Missouri, Ms. Rivers, 
 Mr. Boswell, Mr. Boyd, Mr. Ford, Ms. Hooley of Oregon, Mr. Pascrell, 
 Mr. Sandlin, Ms. Baldwin, Mr. Capuano, Mr. Crowley, Mr. Gonzalez, Mr. 
Hill of Indiana, Mr. Hoeffel, Mr. Larson, Mrs. Napolitano, Mr. Phelps, 
Ms. Schakowsky, Mr. Shows, Mr. Thompson of California, Mr. Udall of New 
 Mexico, and Mr. Wu) introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee on 
House Administration, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to require certain political 
  organizations under such Code to report information to the Federal 
              Election Commission, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Integrity Act of 2000''.

SEC. 2. REQUIREMENTS APPLICABLE TO POLITICAL ORGANIZATIONS UNDER 
              INTERNAL REVENUE CODE OF 1986.

    (a) In General.--Paragraph (1) of section 527(e) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) Political organization.--
                    ``(A) In general.--The term `political 
                organization' means a party, committee, association, 
                fund, or other organization (whether or not 
                incorporated)--
                            ``(i) organized and operated primarily for 
                        the purpose of directly or indirectly accepting 
                        contributions or making expenditures, or both, 
                        for an exempt function; and
                            ``(ii) except as provided in subparagraph 
                        (B), which files an annual statement with the 
                        Secretary under which it certifies that it is 
                        in compliance with subsections (a) and (b) of 
                        section 304A of the Federal Election Campaign 
                        Act of 1971.
                    ``(B) Exception for certain organizations.--
                Subparagraph (A)(ii) does not apply with respect to any 
                of the following:
                            ``(i) Subject to subparagraph (C), any 
                        organization which exists for the exclusive 
                        purpose of influencing or attempting to 
                        influence--
                                    ``(I) the selection, nomination, 
                                election, or appointment of any 
                                individual to any State or local public 
                                office or office in a State or local 
                                political organization;
                                    ``(II) the appointment of any 
                                individual to any Federal public 
                                office; or
                                    ``(III) the selection, nomination, 
                                election, or appointment of any 
                                individual to any office in a political 
                                organization.
                            ``(ii) Any committee, club, association, or 
                        other group of persons (other than a separate 
                        segregated fund established under section 316 
                        of the Federal Election Campaign Act of 1971 (2 
                        U.S.C. 441b)) which accepts contributions or 
                        makes expenditures (as defined in this 
                        subsection) during a calendar year in an 
                        aggregate amount of less than $5,000.
                            ``(iii) Any political committee described 
                        in section 301(4) of the Federal Election 
                        Campaign Act of 1971.
                    ``(C) Treatment of certain communications.--
                            ``(i) In general.--No organization may be 
                        treated as an organization described in 
                        subparagraph (B)(i) if it makes payments 
                        described in clause (ii) during an election 
                        cycle.
                            ``(ii) Communications described.--A payment 
                        described in this clause is a payment for any 
                        communication which mentions a clearly 
                        identified candidate for election for Federal 
                        office or which contains the likeness of such a 
                        candidate, other than a payment for a 
                        communication described in clause (i) of 
                        section 301(9)(B) of the Federal Election 
                        Campaign Act of 1971 (2 U.S.C. 431(9)(B)) or a 
                        payment described in clause (v) of such 
                        section.
                            ``(iii) Election cycle defined.--In this 
                        subparagraph, the term `election cycle' means, 
                        with respect to a candidate for election for 
                        Federal office, the period beginning on the 
                        first day following the date of the last 
                        general election for such office and ending on 
                        the date of the next general election for such 
                        office.
                    ``(D) Timing of statement of compliance.--The 
                annual statement of compliance required under 
                subparagraph (A)(ii) shall be filed not later than the 
                time for filing an annual return under section 
                6012(a)(6) (whether or not the organization is required 
                to file a return under such section for such year).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 2000.

SEC. 3. REPORTING REQUIREMENTS UNDER FEDERAL ELECTION CAMPAIGN ACT OF 
              1971 DESCRIBED.

    Title III of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431 et seq.) is amended by inserting after section 304 the following 
new section:

          ``reporting requirements for political organizations

    ``Sec. 304A. (a) Statement of Organization.--
            ``(1) In general.--For purposes of section 527(e)(1)(A)(ii) 
        of the Internal Revenue Code of 1986, a political organization 
        described in section 527(e)(1) of such Code is in compliance 
with this subsection with respect to a calendar year if it files with 
the Commission a statement of organization (containing the information 
described in paragraph (2)) not later than 10 days after the 
organization first receives or spends an aggregate amount equal to or 
greater than $5,000 during the year for an exempt function described in 
section 527(e)(2) of such Code.
            ``(2) Contents of statement.--The statement of organization 
        filed by a political organization under paragraph (1) shall 
        contain--
                    ``(A) the name, address, and type of organization;
                    ``(B) the name, address, relationship, and type of 
                connected or affiliated organization;
                    ``(C) the name, address, and position of the 
                custodian of books and accounts of the organization; 
                and
                    ``(D) the name, address, and position of the 
                president, chief executive officer, or similar 
                authority of the organization.
    ``(b) Report of Receipts and Disbursements.--
            ``(1) In general.--For purposes of section 527(e)(1)(A)(ii) 
        of the Internal Revenue Code of 1986, a political organization 
        described in section 527(e)(1) of such Code is in compliance 
        with this subsection if it files with the Commission reports of 
        its receipts and disbursements (containing the information 
        described in paragraph (2)) at the same time and in the same 
        manner as a political committee which files reports under 
        section 304(a)(4).
            ``(2) Contents of reports.--Each report filed by a 
        political organization under paragraph (1) shall include the 
        following information:
                    ``(A) The amount of cash on hand at the beginning 
                of the reporting period.
                    ``(B) For the reporting period and the calendar 
                year, the total amount of all receipts, and the total 
                amount of all receipts in the following categories:
                            ``(i) Receipts from persons other than 
                        political committees.
                            ``(ii) Receipts from political party 
                        committees.
                            ``(iii) Receipts from other political 
                        committees.
                            ``(iv) All loans (other than loans made by 
                        or guaranteed by a candidate).
                            ``(v) Dividends, interest, and other forms 
                        of receipts.
                    ``(C) The identification of each--
                            ``(i) person (other than a political 
                        committee) who makes a disbursement to the 
                        organization during the reporting period, whose 
                        disbursements have an aggregate amount or value 
                        in excess of $200 within the calendar year, or 
                        in any lesser amount if the organization should 
                        so elect, together with the date and amount of 
                        any such disbursement;
                            ``(ii) political committee which makes a 
                        disbursement to the organization during the 
                        reporting period, together with the date and 
                        amount of any such disbursement;
                            ``(iii) person who makes a loan to the 
                        organization during the reporting period, 
                        together with the identification of any 
                        endorser or guarantor of such loan, and the 
                        date and amount or value of such loan;
                            ``(iv) person who provides a rebate, 
                        refund, or other offset to operating 
                        expenditures to the organization in an 
                        aggregate amount or value in excess of $200 
                        within the calendar year, together with the 
                        date and amount of such receipt; and
                            ``(v) person who provides any dividend, 
                        interest, or other receipt to the organization 
                        in an aggregate value or amount in excess of 
                        $200 within the calendar year, together with 
                        the date and amount of any such receipt.
                    ``(D) For the reporting period and the calendar 
                year, the total amount of all disbursements, and all 
                disbursements in the following categories:
                            ``(i) Disbursements to persons other than 
                        political committees.
                            ``(ii) Disbursements to political party 
                        committees.
                            ``(iii) Disbursements to other political 
                        committees.
                            ``(iv) The repayment of all loans (other 
                        than loans made by or guaranteed by a 
                        candidate).
                            ``(v) Any other disbursements.
                    ``(E) The name and address of each--
                            ``(i) person to whom a disbursement in an 
                        aggregate amount or value in excess of $200 
                        within the calendar year is made by the 
                        organization to meet a candidate or 
                        organization operating expense, together with 
                        the date, amount, and purpose of such operating 
                        expenditure;
                            ``(ii) person who receives a loan repayment 
                        from the organization during the reporting 
                        period, together with the date and amount of 
                        such loan repayment; and
                            ``(iii) person who receives a refund or 
                        other offset to receipts from the organization 
                        where such receipt was reported under 
                        subparagraph (C)(i), together with the date and 
                        amount of such disbursement.''.
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