[Congressional Record Volume 165, Number 166 (Monday, October 21, 2019)]
[Extensions of Remarks]
[Page E1316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       COST ESTIMATE TO H.R. 4617

                                 ______
                                 

                            HON. ZOE LOFGREN

                             of california

                    in the house of representatives

                        Monday, October 21, 2019

  Ms. LOFGREN. Madam Speaker, I include in the Record the cost estimate 
for H.R. 4617 from the Congressional Budget Office. The cost estimate 
was not available at the time of the filing of the Committee report.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                 Washington, DC, October 21, 2019.
     Hon. Zoe Lofgren,
     Chairperson, Committee on House Administration, House of 
         Representatives, Washington, DC.
       Dear Madam Chairperson: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 4617, the SHIELD 
     Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Matthew 
     Pickford.
           Sincerely,
                                                    Mark P. Hadley
                                (For Phillip L. Swagel, Director).
       Enclosure.

              H.R. 4617, the SHIELD Act--October 16, 2019

                  [By fiscal year, millions of dollars]
------------------------------------------------------------------------
                                         2020      2020-2024   2020-2029
------------------------------------------------------------------------
Direct Spending (Outlays)...........          *           *           *
Revenues............................          *           *           *
Increase or Decrease (-) in the               *           *           *
 Deficit............................
Spending Subject to Appropriation             *           2          **
 (Outlays)..........................
------------------------------------------------------------------------
* = between -$500,000 and $500,000.
** = not estimated.

       Statutory pay-as-you-go procedures apply? Yes.
       Increases on-budget deficits in any of the four consecutive 
     10-year periods beginning in 2030? No.
       Mandate Effects:
       Contains intergovernmental mandate? No.
       Contains private-sector mandate? Yes, Under Threshold.
       H.R. 4617 would amend the Federal Election Campaign Act of 
     1971. Most provisions in the bill are related to prohibiting 
     the participation of foreign nationals in election-related 
     activities, and making additional campaign expenditures and 
     advertising purchases subject to public disclosure.
       CBO estimates that implementing H.R. 4617 would cost $2 
     million over the 2020-2024 period, subject to the 
     availability of appropriated funds. Those amounts would cover 
     additional administrative costs for the Federal Election 
     Commission (FEC) to ensure compliance with the bill. In 2019, 
     the FEC received an appropriation of $71 million.
       Violators of the bill's reporting requirements could be 
     subject to civil and criminal penalties, so enacting H.R. 
     4617 could increase collections of fines. Civil fines are 
     recorded in the budget as revenues. Criminal fines are 
     recorded as revenues, deposited in the Crime Victims Fund, 
     and subsequently spent without further appropriation. CBO 
     estimates that any additional collections would not be 
     significant in any year and over the 2020-2029 period because 
     of the relatively small number of additional cases likely to 
     be affected.
       H.R. 4617 would impose private-sector mandates as defined 
     in the Unfunded Mandates Reform Act (UMRA) on candidates for 
     federal office, campaign committees, political entities, and 
     advertising platforms, among other entities. CBO expects that 
     the aggregate cost of the mandates would be small because 
     compliance with some of the mandates would not impose costs 
     or because the affected entities already perform similar 
     disclosure and reporting activities. For such entities, the 
     new duties would impose only small incremental costs. 
     Therefore, CBO estimates that the cost of the mandates would 
     not exceed the private-sector threshold established in UMRA 
     ($164 million in 2019, adjusted annually for inflation).
       Title I would:
       Require political campaigns to report contacts by foreign 
     entities offering contributions or election coordination to 
     the Federal Bureau of Investigation and the FEC and to 
     establish a policy requiring staff to report such contacts 
     and to notify staff of that policy.
       Expand the types of communication subject to existing 
     disclosure rules under the Federal Election Campaign Act and 
     require disclaimers on internet and digital communications.
       Require online platforms that sell political advertisements 
     and meet minimum traffic thresholds to maintain a public 
     database of qualified political advertisements.
       Require television and radio broadcasters and online 
     platforms to make reasonable efforts to ensure that campaign 
     communications are not purchased by a foreign national.
       Title II would prohibit foreign nationals from:
       Participating in the decision making process of any 
     election-related activity.
       Contributing to super political action committees (PACs) or 
     campaigns concerning a state or local ballot initiative or 
     referendum.
       Making campaign or advocacy expenditures for digital, 
     broadcast, and internet communications.
       Title II would impose additional private-sector mandates by 
     requiring corporations and labor organizations that make 
     campaign contributions to certify that no foreign nationals 
     participated in the decision making process related to those 
     contributions and by requiring corporate PACs to certify that 
     they are not under foreign control.
       H.R. 4617 would impose no intergovernmental mandates as 
     defined in UMRA.
       The CBO staff contacts for this estimate are Matthew 
     Pickford (for federal costs) and Andrew Laughlin (for 
     mandates), The estimate was reviewed by H. Samuel Papenfuss, 
     Deputy Assistant Director for Budget Analysis.

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