[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5277 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5277

To amend the Internal Revenue Code of 1986 to avoid duplicate reporting 
   of information on political activities of certain State and local 
            political organizations, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2000

Mr. Doggett (for himself, Mr. Stark, Mr. Matsui, Mr. Levin, Mr. Cardin, 
  Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal of Massachusetts, Mr. 
 McNulty, Mr. Moore, Mr. Farr of California, Mr. Tierney, Mr. Lantos, 
 Mrs. Thurman, Mr. Olver, Mr. Nadler, Mr. Green of Texas, Mr. Bentsen, 
 Mr. Crowley, Mr. Weiner, and Ms. Slaughter) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to avoid duplicate reporting 
   of information on political activities of certain State and local 
            political organizations, 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. MODIFICATION OF REPORTING OF POLITICAL ACTIVITIES.

    (a) Required Notification of Status as Section 527 Organization Not 
To Apply to Certain State and Local Political Organizations.--
Subsection (i) of section 527 of the Internal Revenue Code of 1986 
(relating to organizations which must notify Secretary that they are 
section 527 organizations) is amended by adding at the end the 
following new paragraph:
            ``(7) Exception for state and local political 
        organizations.--This subsection shall not apply to any 
        organization if--
                    ``(A) such organization is organized and operated 
                exclusively for the purpose of influencing or 
                attempting to influence the selection, nomination, 
                election, or appointment of any individual to any State 
                or local public office, and
                    ``(B) such organization is required to make a 
                filing, which is publicly available, with a State 
                agency containing substantially the same information as 
                is required under this subsection.''
    (b) Certain State and Local Political Organizations Not Required To 
File Duplicative Reports.--Subsection (j) of section 527 of such Code 
(relating to required disclosure of expenditures and contributions) is 
amended by redesignating paragraph (6) as paragraph (7) and by 
inserting after paragraph (5) the following new paragraph:
            ``(6) Exception for state and local political 
        organizations.--This subsection shall not apply to any 
        organization for any period--
                    ``(A) such organization is organized and operated 
                exclusively for the purpose of influencing or 
                attempting to influence the selection, nomination, 
                election, or appointment of any individual to any State 
                or local public office, and
                    ``(B) such organization is required to make a 
                filing for such period, which is publicly available, 
                with a State agency containing substantially the same 
                information as is required under this subsection.''
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by Public Law 106-230.

SEC. 2. TECHNICAL CORRECTIONS TO SECTION 527 ORGANIZATION DISCLOSURE 
              PROVISIONS.

    (a) Unsegregated Funds Not To Avoid Penalty.--Paragraph (4) of 
section 527(i) of the Internal Revenue Code of 1986 (relating to 
failure to notify) is amended by adding at the end the following new 
sentence: ``For purposes of the preceding sentence, the term `exempt 
function income' means any amount described in a subparagraph of 
subsection (c)(3), whether or not segregated for use for an exempt 
function.''
    (b) Procedures for Assessment and Collection of Penalty.--Paragraph 
(1) of section 527(j) of such Code (relating to required disclosure of 
expenditures and contributions) is amended by adding at the end the 
following new sentence: ``For purposes of subtitle F, the penalty 
imposed by this paragraph shall be assessed and collected in the same 
manner as penalties imposed by section 6652(c).''
    (c) Application of Fraud Penalty.--Section 7207 of such Code 
(relating to fraudulent returns, statements, and other documents) is 
amended by striking ``pursuant to subsection (b) of section 6047 or 
pursuant to subsection (d) of section 6104'' and inserting ``pursuant 
to section 6047(b), section 6104(d), or subsection (i) or (j) of 
section 527''.
    (d) Duplicate Electronic and Written Filings Not Required.--
            (1) Subparagraph (A) of section 527(i)(1) of such Code is 
        amended by striking ``, electronically and in writing,''.
            (2) Subsection (i) of section 527 of such Code is amended 
        by adding at the end the following new paragraph:
            ``(8) Electronic filing.--The Secretary shall develop 
        procedures for submission in electronic form of notices 
        required to be filed under this subsection and reports required 
        to be filed under subsection (j).''
    (e) Modification of Gift Tax Rules.--Paragraph (5) of section 
2501(a) of such Code (relating to transfers to political organizations) 
is amended by adding at the end the following new sentence: ``The 
preceding sentence shall not apply in the case of any such organization 
which is not in substantial compliance with subsections (i) and (j) of 
section 527.''
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect as if 
        included in the amendments made by Public Law 106-230.
            (2) Modification of gift tax rules.--The amendment made by 
        subsection (e) shall apply to gifts made after the date of the 
        enactment of this Act.
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