[Congressional Record Volume 141, Number 179 (Monday, November 13, 1995)]
[House]
[Pages H12139-H12142]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1430
   ELECTRONIC FILING AND PRESERVATION OF FEDERAL ELECTION COMMISSION 
                                REPORTS

  Mr. THOMAS, Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2527), to amend the Federal Election Campaign Act of 1971 to 
improve the electoral process by permitting electronic filing and 
preservation of Federal Election Commission reports, and for other 
purposes, as amended.
  The Clerk read as follows:

                               H.R. 2527

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

     SECTION 1. ELECTRONIC FILING AND PRESERVATION OF FEDERAL 
                   ELECTION COMMISSION REPORTS.

       (a) Section 304 Amendment.--Subsection (a) of section 304 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     434(a)) is amended by adding at the end the following new 
     paragraph:
       ``(11)(A) The Commission shall permit reports required by 
     this Act to be filed and preserved by means of computer disk 
     or any other appropriate electronic format or method, as 
     determined by the Commission.
       ``(B) In carrying out subparagraph (A) with respect to 
     filing of reports, the Commission shall provide for one or 
     more methods (other than requiring a signature on the report 
     being filed) for verifying reports filed by means of computer 
     disk or other electronic format or method. Any verification 
     under the preceding sentence shall be treated for all 
     purposes (including penalties for perjury) in the same manner 
     as a verification by signature.
       ``(C) As used in this paragraph, the term `report' means, 
     with respect to the Commission, a report, designation, or 
     statement required by this Act to be filed with the 
     Commission.''.
       (b) Section 302 Amendment.--Subsection (d) of section 302 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     432(d)) is amended by adding at the end the following new 
     sentence: ``for any report filed in electronic format under 
     section 304(a)(11), the treasurer shall retain a machine-
     readable copy of the report as the copy preserved under the 
     preceding sentence.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     and subsection (b) shall apply with respect to reports for 
     periods beginning after December 31, 1996.

     SEC. 2 WAIVER OF DUPLICATE FILING REQUIREMENT FOR STATES WITH 
                   ELECTRONIC ACCESS TO FEDERAL ELECTION 
                   COMMISSION REPORTS AND STATEMENTS.

       Section 312 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 439) is amended by adding at the end the following new 
     subsection:
       ``(c) Subsections (a) and (b) shall not apply with respect 
     to any State that, as determined by the Commission, has a 
     system that permits electronic access to, and duplication of, 
     reports and statements that are filed with the Commission.''.

     SEC. 3. FILING OF HOUSE OF REPRESENTATIVES ELECTION REPORTS 
                   WITH THE FEDERAL ELECTION COMMISSION, RATHER 
                   THAN WITH THE CLERK OF THE HOUSE OF 
                   REPRESENTATIVES.

       (a) Section 302 Amendments.--Subection (g) of section 302 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     432(g)) is amended--
       (1 by striking out paragraph (1);
       (2) by redesignating paragraphs (2) through (5) as 
     paragraphs (1) through (4), respectively;
       (3) in paragraph (2), as so redesignated by paragraph (2) 
     of this subsection--
       (A) by striking out ``Clerk of the House of Representatives 
     and the''; and
       (B) by striking out ``them'' and inserting in lieu thereof 
     ``the Secretary'';
       (4) in paragraph (3), as so redesignated by paragraph (2) 
     of this subsection, by striking out ``paragraphs (1) and 
     (2)'' and inserting in lieu thereof ``Paragraph (1)''; and
       (5) in paragraph (4), as so redesignated by paragraph (2) 
     of this subsection, by striking out ``Clerk of the House of 
     Representatives and the''.
       (b) Section 304 Amendments.--Section 304 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 434) is amended)
       (1) in the first sentence of subsection (a)(6), by striking 
     out ``Clerk, the Secretary,'' and inserting in lieu thereof 
     ``Secretary''; and

[[Page H 12140]]

       (2) in the third sentence of subsection (c)(2), by striking 
     out ``Clerk, the Secretary,'' and inserting in lieu thereof 
     ``Secretary''.
       (c) Section 311 Amendment.--Section 311(a)(4) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 438(a)(4)) is 
     amended by striking out ``Clerk, Secretary,'' and inserting 
     in lieu thereof ``Secretary''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to reports, designations, and 
     statements required to be filed after December 31, 1995.

  The SPEAKER pro tempore (Mr. McInnis). Pursuant to the rule, the 
gentleman from California [Mr. Thomas] will be recognized for 20 
minutes and the gentleman from Maryland [Mr. Hoyer] will be recognized 
for 20 minutes.
  The Chair recognizes the gentleman from California [Mr. Thomas].
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 2527 changes both the way in which candidate 
committees and other committees can file with the Federal Election 
Commission and it removes an impediment to the public's right to know 
as soon as possible the information surrounding a candidate in that 
candidate's report if the candidate is running for the House of 
Representatives.
  H.R. 2527 passed the Committee on House Oversight unanimously. What 
we did was to examine the current way in which candidates and incumbent 
Members of the House file their campaign reports with the FEC.
  First of all, they do not file the reports with the FEC, they file 
them with the Clerk of the House. The Clerk of the House then forwards 
the reports of all of the candidates, incumbents as well as 
challengers, to the FEC. What occurs is a delay of up to 3 days where 
the public does not know what is in those reports.
  H.R. 2527 does away with the requirement that candidates for 
Congress, both incumbents and challengers, file with the Clerk of the 
House. Under H.R. 2527, candidates will file directly with the FEC as 
other committees are required to file.
  In addition to that, it seems to me that campaigns are now run 
sufficiently using electronic technology that candidates who so 
choose--there is no requirement--but if candidates choose to file with 
the FEC, the FEC should accept those filings electronically, beginning 
in 1997. This reform continues to update the capabilities of the FEC so 
that as more and more campaign information is stored electronically and 
reported electronically, the information in those candidates' reports 
can be turned over to the public more quickly. It seems to me that the 
FEC should be, first of all, given the opportunity to allow people to 
file electronically and the Committee on House Oversight will then 
review how successful that procedure has been.
  Since we are allowing the FEC to require candidates to file records 
with the FEC electronically, we also then waive the requirement that 
committees file with a State that also files electronically, since that 
would duplicate materials.
  So H.R. 2527, although not a comprehensive piece of legislation, I 
think nevertheless begins the 104th Congress as the new majority's 
examination of the way in which we run campaigns.
  Although the committee is continuing to hold hearings on a larger 
issue of candidates and their running for office, in this particular 
area, with the ability to file electronically, to waive duplication 
where filing electronically is involved, and to remove an impediment to 
the public's right to know, it seems to me that we have taken a modest, 
but positive, step forward, and I would urge my colleagues to support 
H.R. 2527.
  Mr. Speaker, I reserve the balance of my time.
  (Mr. HOYER asked and was given permission to revise and extend his 
remarks.)
  Mr. HOYER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to join the distinguished gentleman from 
California in supporting H.R. 2527.
  This is a measure which allows more efficient and cost-effective 
procedures and which will substantially benefit both the public and 
congressional candidates.
  H.R. 2527 would require House candidate committees to file directly 
with the Federal Election Commission, thus eliminating the current 
procedure of filing first with the Clerk of the House. This 
would become effective December 31 of this year and will speed up the 
FEC's ability to receive, process, and disclose campaign committee 
information. Members would continue to have immediate access to filing 
data. The media and the public will be able to retrieve candidate 
committee information in a more timely fashion.

  The bill also allows the Commission to receive electronically filed 
campaign reports from candidates and political committees. At the 
moment this is not a requirement, strictly a voluntary procedure which 
will go into effect December 31, 1996.
  Finally, as States obtain the necessary retrieval equipment, 
candidates and committees will no longer have to duplicate all their 
filings within their respective States. This burdensome redundancy will 
be eliminated without any loss of information, as all candidate and 
committee data will be immediately available from the FEC.
  There are a number of benefits associated with this legislation. The 
Clerk's Office has estimated saving some $500,000. States, candidates, 
and committees will all save money.
  But the biggest winner will be the public's more rapid access to 
campaign reports.
  Now there will be some costs to the Federal Election Commission, 
particularly in the startup and staffing of the point of entry section 
of the bill.
  At our committee hearing on October 25, Chairman Thomas noted that 
both the authorizing and appropriating committees had set aside $1.5 
million in fiscal year 1996 for the FEC to update its internal computer 
capabilities. The Commission has indicated that it can handle whatever 
additional costs are required for implementing H.R. 2527 if it has 
access to this $1.5 million, although, obviously, its internal 
modernization program will be slowed to the extent these funds are used 
for other purposes.
  There has been some confusion in the various exchanges that have 
taken place between the Oversight and the Appropriations Committees in 
order to bring about agreement on this legislation, but I believe we 
have now reached an understanding.
  The minority has made it clear from the beginning that our support 
for this bill, whose concepts we strongly endorse, is predicated on 
full funding. No matter how desirable single point of entry is, we are 
not going to be party to any attempt to further weaken the FEC in 
carrying out its mandated duties.
  We have worked hard to move this legislation forward and we do not 
want any misunderstandings. The Federal Election Commission has already 
taken two deep budget cuts--a $1.4 million rescission out of its fiscal 
year 1995 budget, and over another million cut from its fiscal year 
1996 authorization--which was $1.5 million below the Commission's 
bottom-line request.
  Mr. Speaker, last week Chairman Thomas initiated a series of hearings 
on campaign finance reform legislation. Our first witnesses included 
the Speaker, the minority leader, and more than a dozen Members. It was 
an excellent hearing, and there will be more and Chairman Thomas is to 
be commended.

  This bill is a small part of campaign finance reform, but it is a 
step forward. The ability of the Federal Election Commission to fully 
carry out its responsibilities of disclosure, audit, and enforcement is 
a big part of campaign finance reform. The FEC is the public's 
policeman for campaign contributions and spending. There is no intent 
that this legislation should in anyway interfere with the Commission's 
ability to fully perform its duties during the crucial upcoming 
election year, or to use any funds other than the fenced-off $1.5 
million for purposes of implementing this legislation.
  At this time, Mr. Speaker, I submit for the Record a statement by the 
ranking member, the gentleman from California [Mr. Fazio], and a copy 
of a letter dated November 9, 1995, from the gentleman from Louisiana 
[Mr. Livingston], chairman of the Committee on Appropriations, to Mr. 
Danny McDonald, Chairman of the Federal Election Commission.
  Mr. FAZIO of California. Mr. Speaker, I am pleased to join the 
distinguished gentleman from California in supporting H.R. 2527.

[[Page H 12141]]

  This is a measure which allows more efficient and cost-effective 
procedures and which will substantially benefit both the public and 
congressional candidates.
  H.R. 2527 would require House candidate committees to file directly 
with the Federal Election Commission, thus eliminating the current 
procedure of filing first with the Clerk of the House. This would 
become effective December 31 of this year and will speed up the FEC's 
ability to receive, process, and disclose campaign committee 
information. Members would continue to have immediate access to filing 
data. The media and the public will be able to retrieve candidate 
committee information in a more timely fashion.
  The bill also allows the Commission to receive electronically filed 
campaign reports from candidates and political committees. At the 
moment this is not a requirement, strictly a voluntary procedure which 
will go into effect December 31, 1996.
  Finally, as States obtain the necessary retrieval equipment, 
candidates and committees will no longer have to duplicate all their 
filings within their respective States. This burdensome redundancy will 
be eliminated without any loss of information, as all candidate and 
committee data will be immediately available from the FEC.
  There are a number of benefits associated with this legislation. The 
Clerk's Office has estimated saving some $500,000. States, candidates, 
and committees will all save money.
  But the biggest winner will be the public's more rapid access to 
campaign reports.
  Now there will be some costs to the Federal Election Commission, 
particularly in the startup and staffing of the point of entry section 
of the bill.
  At our committee hearing on October 25, Chairman Thomas noted that 
both the authorizing and appropriating committees had set aside $1.5 
million in fiscal year 1996 for the FEC to update its internal computer 
capabilities. The Commission has indicated that it can handle whatever 
additional costs are required for implementing H.R. 2527 if it has 
access to this $1.5 million, although, obviously, its internal 
modernization program will be slowed to the extent these funds are used 
for other purposes.
  There has been some confusion in the various exchanges that have 
taken place between the Oversight and the Appropriations Committees in 
order to bring about agreement on this legislation, but I believe we 
have now reached an understanding.

  I want to thank Mr. Livingston, chairman of the Appropriations 
Committee, for his cooperation, and I want to give special recognition 
to my colleague, Steny Hoyer.
  Mr. Hoyer, who is ranking member on the Appropriations' Treasury and 
Postal Affairs Subcommittee, has always been a strong supporter of the 
Federal Election Commission and of campaign reform. He has played a key 
role in working out the details on the funding for this legislation.
  The minority has made it clear from the beginning that our support 
for this bill, whose concepts we strongly endorse, is predicated on 
full funding. No matter how desirable single point of entry is, we are 
not going to be party to any attempt to further weaken the FEC in 
carrying out its mandated duties.
  We have worked hard to move this legislation forward and we do not 
want any misunderstandings. The Federal Election Commission has already 
taken two deep budget cuts--a $1.4 million recission out of its fiscal 
year 1995 budget, and over another million cut from its fiscal year 
1996 authorization--which was $1.5 million below the Commission's 
bottom-line request.
  Mr. Speaker, last week Chairman Thomas initiated a series of hearings 
on campaign finance reform legislation. Our first witnesses included 
the Speaker, the minority leader, and more than a dozen Members. It was 
an excellent hearing, and there will be more and Chairman Thomas is to 
be commended.
  This bill is a small part of campaign finance reform, but it is a 
step forward. The ability of the Federal Election Commission to fully 
carry out its responsibilities of disclosure, audit, and enforcement is 
a big part of campaign finance reform. The FEC is the public's 
policeman for campaign contributions and spending. There is no intent 
that this legislation should in anyway interfere with the Commission's 
ability to fully perform its duties during the crucial upcoming 
election year, or to use any funds other than the fenced-off $1.5 
million for purposes of implementing this legislation.

                                         House of Representatives,


                                  Committee on Appropriations,

                                 Washington, DC, November 9, 1995.
     Mr. Danny L. McDonald,
     Chairman, Federal Election Commission, Washington, DC.
       Dear Mr. Chairman: Following up on my letter of November 2, 
     1995, I am pleased to learn the FEC can assume single point 
     of entry without adding to current full time employment 
     levels. Based on staff conversations, it is my understanding 
     that FEC will accomplish single point of entry by reassigning 
     employees and contracting out work, if necessary. I also 
     understand that FEC is not able to provide the Committee with 
     a cost estimate for contracting out this work at this time 
     but would appreciate the FEC forwarding such an estimate, 
     when available.
       Again, let me state that I support using a portion of the 
     $1.5 million fenced in FY 1996 for internal ADP modernization 
     on electronic filing initiatives such as those authorized in 
     H.R. 2527. I am confident that single point of entry can be 
     achieved within the CBO cost estimate of less than $500,000 
     in FY 1996 and FEC cost estimates of $400,000-$500,000. I 
     encourage you to keep the Committee informed of any deviation 
     from these estimates.
           Sincerely,
                                                   Bob Livingston,
                                                         Chairman.

  Mr. HOYER. Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the gentleman from Maryland [Mr. Hoyer] indicated that 
perhaps there had been some difficulty in communication between the 
policy committee, which is the Committee on House Oversight, and the 
Committee on Appropriations.
  I would say to the gentleman that perhaps the confusion was more in 
the eye of the beholder, and in listening to various dollar amounts 
that we are discussing vis-a-vis the FEC, I do think we would be remiss 
if we do not put on the record that by closing down the House Clerk 
operation for review of all of those campaign reports, we are going to 
be saving more than half a million dollars a year. Although we 
certainly do want to look at savings in any particular one area, we 
also have to look at the larger picture.
  Mr. Speaker, I believe practice that cost the Clerk's Office a half a 
million dollars per year for a needless and unnecessary slowdown in the 
public's access to the information that is in campaign reports is a 
practice that needed to be ended for a long time. With this new 
majority, we are ending that practice.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Louisiana [Mr. Livingston], chairman of the Committee on 
Appropriations.
  (Mr. LIVINGSTON asked and was given permission to revise and extend 
his remarks.)
  Mr. LIVINGSTON. Mr. Speaker, I thank my friend for yielding, and I 
rise in support of H.R. 2527, which will allow candidates' campaign 
committees to electronically file campaign reports with the Federal 
Election Commission. This is an issue that I have supported for many 
years, and I believe that it is a good thing that it is coming before 
the House at this time.
  The bill also requires House candidates to file reports directly with 
the FEC instead of with the Clerk of the House.
  I want to commend my friend Mr. Thomas, for bringing this commonsense 
bill to the House floor and thank the ranking minority member, Mr. 
Fazio, and in his absence the gentleman from Maryland, Mr. Hoyer, both 
of whom have been very cooperative with this timely issue.
  The bill allows the FEC to move into the computer age by accepting 
the electronic transmission of campaign reports. Candidates will be 
allowed to cut down on the paper shuffling if they choose to use the 
electronic system. This process will also speed the reporting of 
campaign contributions to enhance the voters' access to the disclosure 
of campaign contributions.
  It is important to note that this is a voluntary system. It will not 
burden campaign committees with mandates if they are not computerized, 
but it will allow committees to file electronically if it eases their 
operation.
  This bill will also require candidates to file reports directly with 
the FEC, and this provision will end the absurd system that requires 
candidates to file campaign reports with the Clerk of the House, and 
then force the Clerk to keep copies of the reports and make microfilmed 
copies to send to the FEC, and then the FEC would print hard copies of 
the reports from the Clerk's microfilm.
  The current system is a case study in unnecessary bureaucratic paper 
shuffling and obviously creates unwanted extra cost. Requiring 
candidates to file directly with the FEC will end the confusion and the 
outrageous duplication of the effort.
  The FEC will work with original filings instead of the blurred copies 
which 

[[Page H 12142]]
make it more difficult for the FEC to electronically scan the 
information. It will also save thousands of dollars in the Clerk's 
office.
  This bill may have prompted some confusion, as has been alleged 
earlier, on how the FEC would implement the bill, but I am pleased that 
the FEC now has clarified their earlier request and that they are not 
pushing for more employees to accomplish this single point of entry.
  I want to reiterate that I support using a portion of the $1.5 
million fenced in fiscal year 1996 for the computer modernization on 
electronic filing initiatives such as those authorized in H.R. 2527. I 
am confident that single point of entry can be achieved for less than 
the CBO cost estimate of a half a million dollars, and the FEC's 
estimate of between $400,000 to $500,000 makes sense.
  This bill will speed disclosure, reduce duplication and move the FEC 
toward computer modernization. I encourage my colleagues to give it 
their full support.
  Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the 
gentleman from Michigan [Mr. Ehlers], a valued member of the Committee 
on House Oversight.
  Mr. EHLERS. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, I am very pleased to rise in strong support of H.R. 
2527. Just 2 years ago I ran for Congress for the first time. I was 
very surprised when the time came to file the first campaign finance 
report and discovered that I had to file a copy with the secretary of 
state in the State of Michigan and a copy with the Clerk of the House. 
I just assumed that the report would go to the FEC. I did not realize 
it would take a few days for them to get it.
  What amazed me even more is that when the news media wanted to find 
out what we had expended on the campaign, they did not go to the 
secretary of state of Michigan, they did not go to the Clerk of the 
House, and of course they could not get it from the FEC; they came to 
our campaign office and we had to run off multiple copies for the 
media.

                              {time}  1445

  This bill will cure those problems. The report will be filed with the 
agency that is responsible of reviewing it, the FEC. That is where it 
appropriately belongs. Even more importantly, we can file by electronic 
means. I certainly will take advantage of that. It will save a lot of 
work, it will save a lot of postage, and it will certainly speed up the 
time that the press will have to spend scanning these particular 
reports.
  Once again Mr. Speaker, I believe it is an excellent bill and I rise 
in strong support of this bill. I encourage its passage.
  Mr. THOMAS. Mr. Speaker, I reserve the balance of my time.
  Mr. HOYER. Mr. Speaker, I yield myself the balance of my time.
  In closing, we are pleased to support this, but I would reiterate my 
personal concern, and I believe the concern of our side of the aisle, 
that as we save, as the gentleman from California [Mr. Thomas] has 
pointed out, $500,000, or thereabouts, from the Clerk's office, and we 
transfer the responsibility of unified point of entry and first entry 
into the FEC, it is, I think, agreed on both sides that there will be 
an additional cost to the FEC.
  We have provided, by correspondence more than legislation, that of 
the $1.5 million for computerization, a portion of that can be used for 
the purposes of carrying out this additional responsibility that we 
transfer from the Clerk's office to the FEC.
  We have no opposition to that, but I would like to observe that we 
must carefully review the capacity of the FEC to do those things which 
the public expects it to do. This will be a step in the right 
direction. But it will only be a step in the right direction if they 
have the capacity to do the job from an administrative standpoint, 
enter the data properly, have it accessible easily, and be able to 
respond to the public's questions.
  I will be looking as a member of both the authorizing and the 
appropriating subcommittees that have responsibility to oversee FEC at 
the impact that this additional responsibility has on them with a view 
next year to make sure that they have sufficient funds to carry out 
what the American public believe to be an absolutely essential task of 
knowing where money comes from, where it goes, and what relationship, 
if any, it has to policy.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I know the gentleman from Maryland did not mean to 
misspeak in his concluding comments, but this is not an additional 
responsibility for the FEC. The FEC now has the responsibility to 
receive and record all campaign reports.
  This is a timing question. Because, notwithstanding current 
procedure, where the campaign reports are filed with the clerk of the 
House first, they are nevertheless still eventually transferred to the 
FEC. So this is not, I repeat, not an additional responsibility for the 
FEC. It is merely a question of timing.
  The FEC enjoyed, as we say, the float. The fact that the clerk was 
the one who received at the appropriate deadline the reports, enabled 
the FEC to buy some time to do other work that was required under the 
law by the deadline and then begin to receive, 1 to 3 days after the 
deadline, the materials from the clerk.
  This procedure could have been changed in any previous Congress. But 
it was convenient for folk. It was useful to have a system for holding 
reports in an area where that report could be retrieved by candidates, 
to be changed, to be reviewed, and then submitted to the FEC.
  It seems to me the fundamental responsibility is the deadline and the 
public's right to know. The practice that H.R. 2527 eliminates is that 
float time. It does away with the convenience that the FEC had for a 
number of years of not having to deal with its responsibilities at the 
given deadline.
  So when we talk about costs to the FEC, quite frankly this is 
something that should have been corrected a long time ago.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. McInnis). The question is on the motion 
offered by the gentleman from California [Mr. Thomas] that the House 
suspend the rules and pass the bill, H.R. 2527, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________