[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[House]
[Pages 12623-12630]
[From the U.S. Government Publishing Office, www.gpo.gov]



AMENDING INTERNAL REVENUE CODE TO REQUIRE 527 ORGANIZATIONS TO DISCLOSE 
                          POLITICAL ACTIVITIES

  Mr. HOUGHTON. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4762) to amend the Internal Revenue Code of 1986 to require 
527 organizations to disclose their political activities.
  The Clerk read as follows:

                               H.R. 4762

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

     SECTION 1. REQUIRED NOTIFICATION OF SECTION 527 STATUS.

       (a) In General.--Section 527 of the Internal Revenue Code 
     of 1986 (relating to political organizations) is amended by 
     adding at the end the following new subsection:
       ``(i) Organizations Must Notify Secretary That They Are 
     Section 527 Organizations.--
       ``(1) In general.--Except as provided in paragraph (5), an 
     organization shall not be treated as an organization 
     described in this section--
       ``(A) unless it has given notice to the Secretary, 
     electronically and in writing, that it is to be so treated, 
     or
       ``(B) if the notice is given after the time required under 
     paragraph (2), the organization shall not be so treated for 
     any period before such notice is given.
       ``(2) Time to give notice.--The notice required under 
     paragraph (1) shall be transmitted not later than 24 hours 
     after the date on which the organization is established.
       ``(3) Contents of notice.--The notice required under 
     paragraph (1) shall include information regarding--
       ``(A) the name and address of the organization (including 
     any business address, if different) and its electronic 
     mailing address,
       ``(B) the purpose of the organization,
       ``(C) the names and addresses of its officers, highly 
     compensated employees, contact person, custodian of records, 
     and members of its Board of Directors,
       ``(D) the name and address of, and relationship to, any 
     related entities (within the meaning of section 168(h)(4)), 
     and
       ``(E) such other information as the Secretary may require 
     to carry out the internal revenue laws.
       ``(4) Effect of failure.--In the case of an organization 
     failing to meet the requirements of paragraph (1) for any 
     period, the taxable income of such organization shall be 
     computed by taking into account any exempt function income 
     (and any deductions directly connected with the production of 
     such income).
       ``(5) Exceptions.--This subsection shall not apply to any 
     organization--
       ``(A) to which this section applies solely by reason of 
     subsection (f)(1), or
       ``(B) which reasonably anticipates that it will not have 
     gross receipts of $25,000 or more for any taxable year.
       ``(6) Coordination with other requirements.--This 
     subsection shall not apply to any person required (without 
     regard to this subsection) to report under the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431 et seq.) as a 
     political committee.''.
       (b) Disclosure Requirements.--
       (1) Inspection at internal revenue service offices.--
       (A) In general.--Section 6104(a)(1)(A) of the Internal 
     Revenue Code of 1986 (relating to public inspection of 
     applications) is amended--
       (i) by inserting ``or a political organization is exempt 
     from taxation under section 527 for any taxable year'' after 
     ``taxable year'',
       (ii) by inserting ``or notice of status filed by the 
     organization under section 527(i)'' before ``, together'',
       (iii) by inserting ``or notice'' after ``such application'' 
     each place it appears,
       (iv) by inserting ``or notice'' after ``any application'',
       (v) by inserting ``for exemption from taxation under 
     section 501(a)'' after ``any organization'' in the last 
     sentence, and
       (vi) by inserting ``or 527'' after ``section 501'' in the 
     heading.
       (B) Conforming amendment.--The heading for section 6104(a) 
     of such Code is amended by inserting ``or notice of status'' 
     before the period.
       (2) Inspection of notice on internet and in person.--
     Section 6104(a) of such Code is amended by adding at the end 
     the following new paragraph:
       ``(3) Information available on internet and in person.--
       ``(A) In general.--The Secretary shall make publicly 
     available, on the Internet and at the offices of the Internal 
     Revenue Service--
       ``(i) a list of all political organizations which file a 
     notice with the Secretary under section 527(i), and
       ``(ii) the name, address, electronic mailing address, 
     custodian of records, and contact person for such 
     organization.
       ``(B) Time to make information available.--The Secretary 
     shall make available the information required under 
     subparagraph (A) not later than 5 business days after the 
     Secretary receives a notice from a political organization 
     under section 527(i).''.
       (3) Inspection by committee of congress.--Section 
     6104(a)(2) of such Code is amended by inserting ``or notice 
     of status of any political organization which is exempt from 
     taxation under section 527 for any taxable year'' after 
     ``taxable year''.
       (4) Public inspection made available by organization.--
     Section 6104(d) of such Code (relating to public inspection 
     of certain annual returns and applications for exemption) is 
     amended--
       (A) by striking ``and Applications for Exemption'' and 
     inserting ``, Applications for Exemption, and Notices of 
     Status'' in the heading,
       (B) by inserting ``or notice of status under section 
     527(i)'' after ``section 501'' and by inserting ``or any 
     notice materials'' after ``materials'' in paragraph 
     (1)(A)(ii),
       (C) by inserting or ``or such notice materials'' after 
     ``materials'' in paragraph (1)(B), and
       (D) by adding at the end the following new paragraph:
       ``(6) Notice materials.--For purposes of paragraph (1), the 
     term `notice materials' means the notice of status filed 
     under section 527(i) and any papers submitted in support of 
     such notice and any letter or other document issued by the 
     Internal Revenue Service with respect to such notice.''.
       (c) Failure To Make Public.--Section 6652(c)(1)(D) of the 
     Internal Revenue Code of 1986 (relating to public inspection 
     of applications for exemption) is amended--
       (1) by inserting ``or notice materials (as defined in such 
     section)'' after ``section)'', and
       (2) by inserting ``and notice of status'' after 
     ``exemption'' in the heading.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made

[[Page 12624]]

     by this section shall take effect on the date of the 
     enactment of this section.
       (2) Organizations already in existence.--In the case of an 
     organization established before the date of the enactment of 
     this section, the time to file the notice under section 
     527(i)(2) of the Internal Revenue Code of 1986, as added by 
     this section, shall be 30 days after the date of the 
     enactment of this section.
       (3) Information availability.--The amendment made by 
     subsection (b)(2) shall take effect on the date that is 45 
     days after the date of the enactment of this section.

     SEC. 2. DISCLOSURES BY POLITICAL ORGANIZATIONS.

       (a) Required Disclosure of 527 Organizations.--Section 527 
     of the Internal Revenue Code of 1986 (relating to political 
     organizations), as amended by section 1(a), is amended by 
     adding at the end the following new section:
       ``(j) Required Disclosure of Expenditures and 
     Contributions.--
       ``(1) Penalty for failure.--In the case of--
       ``(A) a failure to make the required disclosures under 
     paragraph (2) at the time and in the manner prescribed 
     therefor, or
       ``(B) a failure to include any of the information required 
     to be shown by such disclosures or to show the correct 
     information,
     there shall be paid by the organization an amount equal to 
     the rate of tax specified in subsection (b)(1) multiplied by 
     the amount to which the failure relates.
       ``(2) Required disclosure.--A political organization which 
     accepts a contribution, or makes an expenditure, for an 
     exempt function during any calendar year shall file with the 
     Secretary either--
       ``(A)(i) in the case of a calendar year in which a 
     regularly scheduled election is held--
       ``(I) quarterly reports, beginning with the first quarter 
     of the calendar year in which a contribution is accepted or 
     expenditure is made, which shall be filed not later than the 
     15th day after the last day of each calendar quarter, except 
     that the report for the quarter ending on December 31 of such 
     calendar year shall be filed not later than January 31 of the 
     following calendar year,
       ``(II) a pre-election report, which shall be filed not 
     later than the 12th day before (or posted by registered or 
     certified mail not later than the 15th day before) any 
     election with respect to which the organization makes a 
     contribution or expenditure, and which shall be complete as 
     of the 20th day before the election, and
       ``(III) a post-general election report, which shall be 
     filed not later than the 30th day after the general election 
     and which shall be complete as of the 20th day after such 
     general election, and
       ``(ii) in the case of any other calendar year, a report 
     covering the period beginning January 1 and ending June 30, 
     which shall be filed no later than July 31 and a report 
     covering the period beginning July 1 and ending December 31, 
     which shall be filed no later than January 31 of the 
     following calendar year, or
       ``(B) monthly reports for the calendar year, beginning with 
     the first month of the calendar year in which a contribution 
     is accepted or expenditure is made, which shall be filed not 
     later than the 20th day after the last day of the month and 
     shall be complete as if the last day of the month, except 
     that, in lieu of filing the reports otherwise due in November 
     and December of any year in which a regularly scheduled 
     general election is held, a pre-general election report shall 
     be filed in accordance with subparagraph (A)(i)(II), a post-
     general election report shall be filed in accordance with 
     subparagraph (A)(i)(III), and a year end report shall be 
     filed not later than January 31 of the following calendar 
     year.
       ``(3) Contents of report.--A report required under 
     paragraph (2) shall contain the following information:
       ``(A) The amount of each expenditure made to a person if 
     the aggregate amount of expenditures to such person during 
     the calendar year equals or exceeds $500 and the name and 
     address of the person (in the case of an individual, 
     including the occupation and name of employer of such 
     individual).
       ``(B) The name and address (in the case of an individual, 
     including the occupation and name of employer of such 
     individual) of all contributors which contributed an 
     aggregate amount of $200 or more to the organization during 
     the calendar year and the amount of the contribution.
     Any expenditure or contribution disclosed in a previous 
     reporting period is not required to be included in the 
     current reporting period.
       ``(4) Contracts to spend or contribute.--For purposes of 
     this subsection, a person shall be treated as having made an 
     expenditure or contribution if the person has contracted or 
     is otherwise obligated to make the expenditure or 
     contribution.
       ``(5) Coordination with other requirements.--This 
     subsection shall not apply--
       ``(A) to any person required (without regard to this 
     subsection) to report under the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 431 et seq.) as a political committee,
       ``(B) to any State or local committee of a political party 
     or political committee of a State or local candidate,
       ``(C) to any organization which reasonably anticipates that 
     it will not have gross receipts of $25,000 or more for any 
     taxable year,
       ``(D) to any organization to which this section applies 
     solely by reason of subsection (f)(1), or
       ``(E) with respect to any expenditure which is an 
     independent expenditure (as defined in section 301 of such 
     Act).
       ``(6) Election.--For purposes of this subsection, the term 
     `election' means--
       ``(A) a general, special, primary, or runoff election for a 
     Federal office,
       ``(B) a convention or caucus of a political party which has 
     authority to nominate a candidate for Federal office,
       ``(C) a primary election held for the selection of 
     delegates to a national nominating convention of a political 
     party, or
       ``(D) a primary election held for the expression of a 
     preference for the nomination of individuals for election to 
     the office of President.''.
       (b) Public Disclosure of Reports.--
       (1) In general.--Section 6104(d) of the Internal Revenue 
     Code of 1986 (relating to public inspection of certain annual 
     returns and applications for exemption), as amended by 
     section 1(b)(4), is amended--
       (A) by inserting ``Reports,'' after ``Returns,'' in the 
     heading,
       (B) in paragraph (1)(A), by striking ``and'' at the end of 
     clause (i), by inserting ``and'' at the end of clause (ii), 
     and by inserting after clause (ii) the following new clause:
       ``(iii) the reports filed under section 527(j) (relating to 
     required disclosure of expenditures and contributions) by 
     such organization,'', and
       (C) in paragraph (1)(B), by inserting ``, reports,'' after 
     ``return''.
       (2) Disclosure of contributors allowed.--Section 
     6104(d)(3)(A) of such Code (relating to nondisclosure of 
     contributors, etc.) is amended by inserting ``or a political 
     organization exempt from taxation under section 527'' after 
     ``509(a))''.
       (3) Disclosure by internal revenue service.--Section 
     6104(d) of such Code is amended by adding at the end the 
     following new paragraph:
       ``(6) Disclosure of reports by internal revenue service.--
     Any report filed by an organization under section 527(j) 
     (relating to required disclosure of expenditures and 
     contributions) shall be made available to the public at such 
     times and in such places as the Secretary may prescribe.''.
       (c) Failure To Make Public.--Section 6652(c)(1)(C) of the 
     Internal Revenue Code of 1986 (relating to public inspection 
     of annual returns) is amended--
       (1) by inserting ``or report required under section 
     527(j)'' after ``filing)'',
       (2) by inserting ``or report'' after ``1 return'', and
       (3) by inserting ``and reports'' after ``returns'' in the 
     heading.
       (d) Effective Date.--The amendment made by subsection (a) 
     shall apply to expenditures made and contributions received 
     after the date of enactment of this Act, except that such 
     amendment shall not apply to expenditures made, or 
     contributions received, after such date pursuant to a 
     contract entered into on or before such date.

     SEC. 3. RETURN REQUIREMENTS RELATING TO SECTION 527 
                   ORGANIZATIONS.

       (a) Return Requirements.--
       (1) Organizations required to file.--Section 6012(a)(6) of 
     the Internal Revenue Code of 1986 (relating to political 
     organizations required to make returns of income) is amended 
     by inserting ``or which has gross receipts of $25,000 or more 
     for the taxable year (other than an organization to which 
     section 527 applies solely by reason of subsection (f)(1) of 
     such section)'' after ``taxable year''.
       (2) Information required to be included on return.--Section 
     6033 of such Code (relating to returns by exempt 
     organizations) is amended by redesignating subsection (g) as 
     subsection (h) and inserting after subsection (f) the 
     following new subsection:
       ``(g) Returns Required by Political Organizations.--In the 
     case of a political organization required to file a return 
     under section 6012(a)(6)--
       ``(1) such organization shall file a return--
       ``(A) containing the information required, and complying 
     with the other requirements, under subsection (a)(1) for 
     organizations exempt from taxation under section 501(a), and
       ``(B) containing such other information as the Secretary 
     deems necessary to carry out the provisions of this 
     subsection, and
       ``(2) subsection (a)(2)(B) (relating to discretionary 
     exceptions) shall apply with respect to such return.''.
       (b) Public Disclosure of Returns.--
       (1) Returns made available by secretary.--
       (A) In general.--Section 6104(b) of the Internal Revenue 
     Code of 1986 (relating to inspection of annual information 
     returns) is amended by inserting ``6012(a)(6),'' before 
     ``6033''.
       (B) Contributor information.--Section 6104(b) of such Code 
     is amended by inserting ``or a political organization exempt 
     from taxation under section 527'' after ``509(a)''.
       (2) Returns made available by organizations.--
       (A) In general.--Paragraph (1)(A)(i) of section 6104(d) of 
     such Code (relating to public inspection of certain annual 
     returns, reports, applications for exemption, and notices of

[[Page 12625]]

     status) is amended by inserting ``or section 6012(a)(6) 
     (relating to returns by political organizations)'' after 
     ``organizations)''.
       (B) Conforming amendments.--
       (i) Section 6104(d)(1) of such Code is amended in the 
     matter preceding subparagraph (A) by inserting ``or an 
     organization exempt from taxation under section 527(a)'' 
     after ``501(a)''.
       (ii) Section 6104(d)(2) of such Code is amended by 
     inserting ``or section 6012(a)(6)'' after ``section 6033''.
       (c) Failure To File Return.--Section 6652(c)(1) of the 
     Internal Revenue Code of 1986 (relating to annual returns 
     under section 6033) is amended--
       (1) by inserting ``or section 6012(a)(6) (relating to 
     returns by political organizations)'' after 
     ``organizations)'' in subparagraph (A)(i),
       (2) by inserting ``or section 6012(a)(6)'' after ``section 
     6033'' in subparagraph (A)(ii),
       (3) by inserting ``or section 6012(a)(6)'' after ``section 
     6033'' in the third sentence of subparagraph (A), and
       (4) by inserting ``or 6012(a)(6)'' after ``section 6033'' 
     in the heading.
       (d) Effective Date.--The amendments made by this section 
     shall apply to returns for taxable years beginning after June 
     30, 2000.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Houghton) and the gentleman from New York (Mr. Rangel) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York (Mr. Houghton).


                             General Leave

  Mr. HOUGHTON. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on H.R. 4762.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. HOUGHTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the hour is late and it has been a long day, but I 
frankly thought I would be here tonight talking about another bill, 
H.R. 4717. It has a long title, the Full and Fair Political Activity 
Disclosure Act of 2000, but this is not the case.
  As it turned out, it was not the right time, either. This is a fact, 
and we now move on to H.R. 4762, an entirely different bill.
  Furthermore, it is the way our democratic process works. One shoots 
as high as they possibly can and ends up with something the majority 
feels is the best practical solution at the time.
  Personally, I wanted to do two things. One is to get something done, 
which means produce the first piece of campaign reform legislation that 
will pass not only this House but also the Senate in years.
  Secondly, to make it bipartisan this bill, 4762, is the base McCain-
Feingold-Lieberman bill with strong inputs from the gentleman from 
Massachusetts (Mr. Meehan) and the gentleman from Texas (Mr. Doggett) 
and the gentleman from Connecticut (Mr. Shays) and the gentleman from 
Delaware (Mr. Castle).
  We changed the Senate sanction provision to apply 35 percent tax rate 
against nondisclosed amounts, and that is all. So I just have to feel 
that passing this bill on suspension will send a signal that, yes, that 
we can do something on campaign finance reform, just as the Senate did.
  This is not the end. It is the first step and a big one; and we still 
need to move forward on better disclosure, but that will come. First, 
we must pass this legislation.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  2320

  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I know we all are anxious to vote, but this is such a 
great victory for Republicans and Democrats to do the right thing.
  I would like to believe that many on the other side would really want 
to join with us, because I think that the voters are very concerned 
about how we got to where we are this evening.
  Mr. Speaker, I want to compliment my friend, the gentleman from New 
York (Mr. Houghton) and the gentleman from Connecticut (Mr. Shays), but 
I am afraid that I do them more harm than good by doing that, but it 
does show what happens when good people decide that they are going to 
do the right thing. We do not care what we will call the bill, but we 
are concerned that we do have a bill that we can move forward on a 
bipartisan basis.
  Mr. Speaker, I would like to congratulate the gentleman from Texas 
(Mr. Doggett) for doggedly following through.
  Mr. Speaker, in view of the overwhelming support on this side of the 
aisle, we can see whether the gentleman from Texas (Mr. Doggett) has 
earned it on the other side.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. 
Doggett).
  Mr. DOGGETT. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, since March, we have called on the House to come 
together to support in a bipartisan fashion a cleanup of some of the 
worst excesses in our campaign finance system, what one expert referred 
to as the most dangerous loophole that has ever come along, period, 
what Senator McCain has rightly called this 527 political loophole, an 
egregious and obscene distortion of everything the American people 
believe in.
  I think it is unfortunate that we have this sudden switch to the 
suspension calender at this late hour, which will deny Members, both 
Republicans and Democrats, an opportunity to offer amendments to 
perfect the reform that has been advanced and to broaden it to be more 
comprehensive reform, and certainly its passage is imperiled by the 
two-thirds requirement.
  Mr. Speaker, I did not pick the procedure. We have it, I think we 
should utilize it now to try to move forward in the most constructive 
way possible to approve a reform that will be significant, though 
modest, in addressing this abuse.
  Mr. HOUGHTON. Mr. Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Archer), the chairman of the Committee on Ways and Means.
  Mr. ARCHER. Mr. Speaker, I thank the gentleman for yielding me the 
time, and I particularly appreciate his efforts to put together a 
bipartisan bill. This is one of the most contentious issues for all of 
us, because the Democrats say we have to have an advantage and the 
Republicans say we have to have an advantage. When we get into campaign 
finance reform, it is highly charged politically.
  The gentleman from New York (Mr. Houghton), I think, has done a 
tremendous job in trying to work through that; and I applaud him for 
that.
  First, this bill does nothing but require disclosure. It does not 
change anything as to how much money can be given or how it can be 
used, any of those other substantive things in the law.
  I am sad that we could not broaden it more. I think any tax exempt 
entity that is excused from paying any income tax under our law and 
engages in significant political activity should have to disclose and 
report. It should not be simply limited to one group, but, 
unfortunately, that was not going to be accepted on a bipartisan basis.
  We are back now on what has been agreed to basically on the Senate 
side and by a large number of Members of the House of Representatives, 
and it is a disclosure bill.
  Mr. Speaker, I support it, but I wish we had more significant 
campaign finance reform that was much broader in nature. I, again, 
applaud the gentleman from New York (Mr. Houghton) for his work, and I 
do urge the passage of this bill.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would like to congratulate my distinguished chairman, 
the gentleman from Texas (Mr. Archer), for the leadership that he has 
displayed on this most important piece of legislation.
  Mr. Speaker, I yield 2 minutes to the gentleman from Kansas (Mr. 
Moore).
  Mr. MOORE. Mr. Speaker, I would like to congratulate the gentleman 
from New York (Mr. Houghton), the gentleman from Texas (Mr. Doggett), 
the gentleman from Connecticut (Mr. Shays), and the gentleman from 
Massachusetts (Mr. Meehan) for their excellent work on this bill.

[[Page 12626]]

  Back in February, I filed the Campaign Integrity Act of 2000 which is 
required as to 527s only disclosure, I think that should be the bottom 
line, and that is where we are now. I am proud, even though this is not 
my bill, to support this bill, because it is what the American people 
demand, it is what the American people deserve. When I go home, I hear 
from my constituents, and I think a lot of my colleagues do, too, we 
are so tired of all the partisan bickering, the Democrats did this and 
the Republicans did that; what they wanted it us to do is come up here 
and do the people's agenda.
  That is what we are doing tonight by just campaign finance reform 
bill is disclosure so people will know who is trying to influence their 
vote and who is trying to influence Federal elections. That is the 
bottom line. I invite all people of good will to vote for this bill 
tonight.
  Mr. HOUGHTON. Mr. Speaker, I yield 3 minutes to the gentleman from 
Delaware (Mr. Castle).
  Mr. CASTLE. Mr. Speaker, I thank the distinguished gentleman from New 
York (Mr. Houghton) for yielding to me.
  Mr. Speaker, I also credit the gentleman from New York (Mr. Rangel) 
for the tremendous work which he did, along with other Members in the 
House of Representatives and in the United States Senate who have been 
involved with this.
  Tonight the House of Representatives has the opportunity to ensure 
that meaningful campaign finance reform is passed in time for this 
year's election. H.R. 4762 is the campaign finance bill with the best 
chance to pass both Chambers and be signed into law that has reached 
the floor of this House in years.
  Mr. Speaker, last week when I testified before the Committee on Ways 
and Means, I said that I would help lead the fight to pass legislation 
that would reign in the section 527 groups if the House could not pass 
more comprehensive disclosure legislation. I will do that tonight.
  In this case, we cannot afford to make the perfect, the enemy of the 
good. Section 527 organizations set up under section 527 of the Tax 
Code are established to engage in political activities which influence 
our political process by funding an election-related communications 
without having to disclose their donors.
  H.R. 4762 is needed because current campaign laws are wholly unable 
to adequately regulate the torrent of political advising by groups 
exploiting this loophole in both our taxation and election laws.
  Huge sums of money are being spent to influence the election system. 
This is a troubling new trend in campaign-finance spending by groups 
operating under unique designations in our Tax Code such as section 
527.
  Mr. Speaker, while I would have liked to cover more groups engaging 
in electioneering communications, I am pleased that we will pass 
significant legislation that will tackle the 527 stealth political 
organization problem.
  We explored many possible alternatives, and I believe we have laid 
the groundwork for further legislation in this area. Tonight we will 
vote on H.R. 4762 language taken from Senator John McCain's legislation 
which has already passed the Senate.
  This legislation requires section 527 organizations that have gross 
receipts of more than $25,000 to disclose their donors. Whether or not 
we agree with the message of any advertisement campaign, I hope we can 
agree that voters have the right to know who is paying for any 
campaign-related ad and who is trying to influence their vote.
  The 2000 general election cycle is fast approaching, and section 527 
political groups are expanding at a rapid pace that will be a dominant 
force in the 2000 election.
  Mr. Speaker, I am convinced this bill will curb some of the most 
blatant abuses and will allow the public to know who is supporting 
these groups that are now operating behind a veil of secrecy.
  I urge my colleagues to join us in supporting H.R. 4762 in an effort 
to restore integrity to our election process and return the election 
process to the American people. It is a real step forward, and we 
should take it.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Meehan).
  Mr. MEEHAN. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, let me thank the Republican Members, the gentleman from 
New York (Mr. Houghton), who worked so hard to bring this here and the 
gentleman from Delaware (Mr. Castle), the gentleman from Connecticut 
(Mr. Shays), as well as Democratic Members.

                              {time}  2330

  Can any of us forget over the period of the last several months the 
efforts of the gentleman from Kansas (Mr. Moore) and the gentleman from 
Texas (Mr. Doggett) to bring us to this point in time? And I 
congratulate both of them for that.
  This is an important step, but it is a step. Let none of us forget 
the fact that this House passed a campaign finance reform bill by a 
wide bipartisan margin that would have dealt with the problems in this 
bill. The problem is the bill went over to the United States Senate 
with 53 Members of that body, the majority of the Members, all of the 
Democrats and several Republicans, a majority of that body voted to 
pass that bill; and it could have gone to the President's desk for 
signature, but 60 Members of that other body were required to break a 
filibuster.
  So let no Member in this body or no one in this country make the 
mistake of thinking this is comprehensive campaign finance reform, 
because it is not. We still have our work cut out for us, and we are 
going to try to push our colleagues in the other body to break that 
filibuster, and we are going to be back at it. If we cannot get this 
done before this session, then next session. It is an important step, 
and I congratulate my colleagues.
  Mr. Speaker, it is very important that we reduce the influence of 
money in American politics. At every turn we have met with obstacles, 
but we will continue in this effort; we will push this effort until we 
break the filibuster in the other body and send a real campaign finance 
reform bill for the President's signature, because he is waiting to 
sign it.
  Mr. HOUGHTON. Mr. Speaker, I yield 1 minute to the gentleman from 
Virginia (Mr. Bateman).
  Mr. BATEMAN. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  I ask the indulgence of the House. This will not be a 1-minute 
filibuster, I assure my colleagues.
  I am concerned about the process and how we got to where we are, as 
much as I congratulate my good friend, the gentleman from New York (Mr. 
Houghton), and those who have labored with him.
  I stand here with a perception that there are many, many Members of 
this body who would not like to have any form of campaign finance 
reform. I think there are many, many Members of this body who would buy 
into any form of campaign finance reform. I am not sure what we are 
buying into, because I know so little of what we are doing. But I do 
know that when we start limiting what people can do with their money to 
influence the outcome of the political process, we are treading on very 
serious constitutional ground. I choose not to tread there without 
knowing much more about where I tread.
  Mr. RANGEL. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from 
Georgia (Mr. Lewis), a member of the Committee on Ways and Means.
  Mr. LEWIS of Georgia. Mr. Speaker, I rise to support this bill, H.R. 
4762. I want to commend the gentleman from Texas (Mr. Doggett) and the 
gentleman from New York (Mr. Houghton), my good friends and colleagues, 
for their work on this important issue. We all know that it is time to 
fix our broken system of financing elections, and this bill is a good 
and necessary first step.
  Mr. Speaker, H.R. 4762 would close a huge loophole by requiring 
simple disclosure by these secret political organizations and groups. 
The American

[[Page 12627]]

people have a right to know. They have a right to know who is funding 
political campaigns in this country. They have a right to know who is 
trying to influence their votes. The American people have a right to a 
free and open election process.
  It is time to close this loophole. It is time to get rid of the 
secrecy; it is time to fix this mess. So tonight, I urge all of my 
colleagues to support this bill. It is the right thing to do. The time 
is always right to do right. Tonight is the first step down a long road 
toward political campaign finance reform.
  Mr. HOUGHTON. Mr. Speaker, I yield 3 minutes to the gentleman from 
Ohio (Mr. Kasich).
  Mr. KASICH. Mr. Speaker, I would like to say to the House that of 
course, 527 should have to disclose. But in the name of disclosure, it 
just should not be the political organizations that have to disclose; 
it should be any of the other organizations in this country, whether it 
be business organizations like the Chamber of Commerce, or whether it 
be labor organizations, whether it be the Christian right. It does not 
matter who it is, if they are engaging in blatant political activity, 
they ought to have to be forced to disclose so that the American people 
can understand where they get their money from. To limit this just to 
political organizations is worse than even half a loaf. Frankly, it 
does not matter which organization is electioneering. If they are 
electioneering, make them all report. Do my colleagues know why? 
Because with disclosure comes power to the ordinary citizen.
  The fact is, some in this House believe that the way we fix election 
law and we give power to ordinary people is to restrict access to the 
political process, to shut them down. I despise that idea. But I will 
tell my colleagues what I do believe in. Give the ordinary citizen the 
right and the power to know who is behind all of these political 
organizations, all of them, and they will make the smart decision and 
they will use the real power in America, which is the power of the 
ballot box.
  This is a debate tonight about one big thing. Do we want to restrict 
Americans and their ability to communicate, or do we want to let the 
sun shine in and let Americans decide for themselves who is behind 
these political activities.
  Mr. Speaker, I vote for openness. Let the sun shine in. Freedom. And 
at the end of the day, the people will have their way, and they will 
make a decision.
  Mr. Speaker, this bill is a sham when it comes to real campaign 
finance reform. We should have gone the whole way and forced anybody, 
from the right and the business community, to the left and the labor 
community, to have to square with the American people about where they 
get their money and let the American people decide, and this will be a 
long ongoing fight.
  Tonight, I am going to vote for 527, but I want to tell my 
colleagues, it is such a fig leaf, it is a shame. The House had a real 
chance at reform. We blew it.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  I want to thank the gentleman in the well for his vote for 527, and I 
hope we will see who is not voting for 527. But that was an eloquent 
statement against the bill; but I guess in the final analysis, it is 
the vote that really counts.
  Mr. Speaker, I yield 2 minutes to the gentleman from Washington, a 
member of the committee (Mr. McDermott).
  Mr. McDERMOTT. Mr. Speaker, I agree with the gentleman from Virginia 
(Mr. Bateman), I dislike the process by which we got here. We voted 
this bill down twice on this floor, and now suddenly we went to 
committee, and we passed a bill out of that committee, which is not the 
bill which we are voting on here on the floor. The gentleman from New 
York (Mr. Houghton), my good friend, has worked hard to work this 
problem; but it is pretty clear that this is being put out at 20 
minutes to 12:00 so that disclosure is done in the middle of the night. 
It is kind of an irony, if one has that kind of mind, to look at the 
fact that we are bringing out a bill that nobody in a committee has 
actually looked at the words.
  We passed another bill out of our committee, and obviously, we could 
not get the votes on the floor for that, so suddenly, miraculously, we 
have a bill at 12 minutes to 12:00. I understand all the rules and the 
way things work, but this process is not a good one.
  I think the importance of campaign finance reform is very clear. It 
is not a Democrat issue, it is not a Republican issue, it is an issue 
about whether people are willing to participate in the elections.

                              {time}  2340

  It is expected that this election will be the least participation 
since 1924 because people are turned off, and they are turned off by 
all the money in the election. It is our job to clean that up and get 
the American people back involved. This is a very small step forward.
  Mr. Speaker, I include for the Record the following statement:

       [From the Office of Congressman Tom DeLay, June 27, 2000]

                      DeLay To Oppose McCain Bill


                an attack on our first amendment rights

       Washington, DC: Tom Delay (R-TX), the House Majority Whip, 
     issued the following statement tonight on the vote in the 
     House on the campaign finance reform.
       Majority Whip Tom DeLay stated: ``I am first and foremost a 
     constitutionalist, and this bill is a clear violation of the 
     First Amendment. Again and again, the courts have upheld the 
     right of groups to participate in the political process while 
     retaining privacy for their members. I am therefore confident 
     that the courts will quickly and decisively strike down this 
     legislation. How will the Democrats explain to their 
     constituents that any American who supports these issue 
     advocacy groups could find his or her names on a government 
     list? This lack of privacy and free speech is chilling.
       ``This so-called `reform' bill is in reality nothing more 
     than a last ditch effort by the Democrats to protect their 
     vulnerable incumbent Members from valid attacks on their 
     positions and beliefs. The Left is trying to stamp out our 
     right to free speech for their own political purposes while 
     protecting their big labor friends and political 
     contributors. The Democrats are the ultimate hypocrites and 
     they must explain their double standard to the American 
     people.''

  Mr. HOUGHTON. Mr. Speaker, I yield 1 minute to the gentlewoman from 
New Jersey (Mrs. Roukema).
  Mrs. ROUKEMA. Mr. Speaker, I rise in strong support of this 
legislation. These are stealth PACs. That is exactly what they are. 
They are completely operating in secret, and it is a dangerous loophole 
in the law that we have to close. We can close it tonight.
  It is not everything we would like to do, but we cannot let the 
perfect be the enemy of the good. Let us deal with these stealth PACs, 
close this loophole, and restore democracy to our electoral process.
  Mr. RANGEL. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Wisconsin (Mr. Barrett).
  Mr. BARRETT of Wisconsin. Mr. Speaker, I rise in strong support of 
this bill. I thank the gentleman from Kansas (Mr. Moore) for bringing 
it to my attention.
  Mr. Speaker, I rise this evening in support of the measure before us.
  Sincere advocates of campaign finance reform have named 527 
organizations Public Enemy number One--and with good reason. 527s 
illustrate everything that has gone wrong in America's political 
campaign financing system.
  We have all heard from our constituents how much they hate big money 
in politics. But the one thing that undermines public confidence in our 
electoral process more than the obvious influence of big monied special 
interests is the hidden, disingenuous influence of the big monied 
special interests. That, as we all know, is what 527s represent. The 
widely applied term ``Stealth PAC'' aptly describes these groups, 
because they operate `under the radar' of public scrutiny and cloaked 
in a veil of secrecy.
  527s wield vast power over American elections. They are authorized 
under present law to raise unlimited sums of money, and they do. They 
can spend their vast warchests to buy elections for favored candidates 
or ruin opponents--and they do. The time has come to make 527 Stealth 
organizations accountable to the American people.
  That is what the legislation before us would do. This bill would 
level the playing field, by applying the same public disclosure 
requirements to 527s as are applied to PACs under

[[Page 12628]]

current law. It would give you and me a way to find out just who is 
running those ads encouraging everyone in a media market to `Call For 
More Information About Congressman Whomever's Bad Record on Clean Air'. 
Most importantly, it would allow our constituents to find out just 
exactly which big monied special interest is trying to tell them what 
to think and how to vote.
  This bill is not perfect. Some would prefer to apply similar 
disclosure requirements to labor unions and social welfare 
organizations, when they spend money to influence elections. Others 
would like to require corporations to do the same. These are both 
important points and deserve serious debate.
  But the bill before us allows us take an important first step. It 
allows us to build on the momentum generated in the Senate, and it has 
been freed of poison pill provisions force-fed by opponents who sought 
to scuttle this important reform effort. This clean, consensus bill 
gives us a chance to restore a measure of fairness, candor, and 
accountability to America's political system.
  I disagree with those opponents of reform who argue that, if we 
cannot do everything, we should do nothing. I encourage my colleagues 
to join me in voting to ground the Stealth campaign and in launching a 
new strike against secrecy and corruption in American electoral 
politics.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Frank).
  Mr. FRANK of Massachusetts. Mr. Speaker, I feel that I may be 
betraying the Constitution. The Supreme Court just decided that a party 
has a right to settle its own disputes and non-members should not 
interfere. I find myself in the midst of an internal Republican dispute 
here tonight, but I have no choice, because that is the way the 
majority chose to bring it up.
  I congratulate my Republican friends who have brought this bill 
forward. For those who think it is being brought up without adequate 
notice, they should know that it is essentially the bill they voted 
down when we had a motion to recommit a while ago, so this is not the 
first time Members are seeing this bill.
  It does, I think, give some confidence in the political process 
because there has been a great transmogrification on the other side 
from people who did not like this bill a couple of weeks ago who have 
now found some merit in it. I think it is a good idea. I am delighted 
to see the wheel reinvented and campaign finance reform passed.
  I would agree with the gentlemen who have complained about the 
procedure. We of course had no say in this procedure: bringing this 
bill up in a fashion that it cannot be amended, it has not had a chance 
to be studied, and at midnight, that was their choice.
  I do think that the debate has been a little one-sided. For people 
who think I may be being too partisan, I would say that we on our side 
deserve a lot of credit for the bill.
  Let me quote a congressional leader: ``This bill is in reality 
nothing more than a last-ditch effort by the Democrats,'' and I am 
quoting the majority whip, the gentleman from Texas (Mr. DeLay), who 
put out a statement giving us credit for the bill, although not too 
cheerfully.
  Under the general leave, I do think that in the interests of full 
disclosure and full debate, and I do not see the majority Whip, he was 
apparently tied up somewhere, I knew he was eager to be here, but under 
the general leave that was gotten by the gentleman from New York, I 
include the majority whip's statement into the Congressional Record.
  The material referred to is as follows:

       [From the Office of Congressman Tom DeLay, June 27, 2000]

                         DeLay To Oppose McCain


                an attack on our first amendment rights

       Washington, DC: Tom DeLay (R-TX), the House Majority Whip, 
     issued the following statement tonight on the vote in the 
     House on the campaign finance reform.
       Majority Whip Tom DeLay stated: ``I am first and foremost a 
     constitutionalist, and this bill is a clear violation of the 
     First Amendment. Again and again, the courts have upheld the 
     right of groups to participate in the political process while 
     retaining privacy for their members. I am therefore confident 
     that the courts will quickly and decisively strike down this 
     legislation. How will the Democrats explain to their 
     constituents that any American who supports these issue 
     advocacy groups could find his or her names on a government 
     list? This lack of privacy and free speech is chilling.
       ``This so-called `reform' bill is in reality nothing more 
     than a last ditch effort by the Democrats to protect their 
     vulnerable incumbent Members from valid attacks on their 
     positions and beliefs. The Left is trying to stamp out our 
     right to free speech for their own political purposes while 
     protecting their big labor friends and political 
     contributors. The Democrats are the ultimate hypocrites and 
     they must explain their double standard to the American 
     people.''

  Mr. HOUGHTON. Mr. Speaker, I yield 1 minute to the gentleman from 
Georgia (Mr. Linder).
  Mr. LINDER. I thank the gentleman for yielding time to me, Mr. 
Speaker.
  There is a gentleman at Rutgers University named Dr. Troy who has 
been studying spending in campaigns for 20 years. What he said is that 
in the last two cycles, 1996 and 1998, labor unions spent between $400 
million and $600 million. If they are in our neighborhoods knocking on 
doors, they were paid by labor unions.
  This bill does not touch that. This bill yields them all they want. 
They totally cover all that the Republican committees do combined, and 
there was an original bill that covered all the spending by all the 
groups, labor unions, right-to-life, political parties, and it was 
determined by a variety of folks, including our friend Senator McCain, 
that this is a poison pill.
  If we include labor unions, Democrats cannot vote for it, and 
therefore, it is not bipartisan and we cannot pass that. Excuse me. If 
Members want to have disclosure, I think we should have total 
disclosure, including all that the unions spend all the rest spend.
  I want to notify my friends, this is a suspension. One-third of the 
votes will kill this bill. We ought to do it.
  Mr. RANGEL. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Texas (Mr. Doggett), the primary sponsor of this bill.
  Mr. DOGGETT. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, briefly, this is in no way a substitute for 
comprehensive campaign finance reform of the type that the gentleman 
from Connecticut (Mr. Shays) and the gentleman from Massachusetts (Mr. 
Meehan) have so admirably led this House in pursuing.
  But to those who have said they wanted a much broader bill, the first 
thing to point out is that 527s can be used by a union, they can be 
used by the trial lawyers, they can be used by right-to-life, by 
Planned Parenthood. This treats everyone who chooses to use a 527 in 
exactly the same way. It discriminates neither for nor in favor of 
anyone.
  The second thing, however, is that in the committee, seven 
Republicans, led by the gentleman from Delaware (Mr. Castle), and six 
Democrats came to the committee and they said, why do we not take a 
Republican idea advanced by Senator Snow and Senator Jeffords and add 
that onto the bill so we will cover more people.
  And we Democrats on the committee said, yes, that is a good idea. We 
will do that. Republicans on the committee raised numerous objections 
that that just was not broad enough, so we said, well, we will do more 
than that. We will extend this. We will do more to be sure we are 
covering and ensuring fairness and equity. We will cover unions and 
their activities, we will cover business organizations and their 
activities. We will try to treat everyone fairly and comprehensively.
  And both privately in our discussions with Members on the other side 
and publicly in the committee we sought to pursue this in a bipartisan 
way. Not one change, not the slightest change, were our Republican 
colleagues willing to even contemplate.
  So what they produced was a bill that all Members have heard about. 
They have heard from right-to-life, they have heard, I believe, from at 
least 30 organizations, saying that it is blatantly unconstitutional, 
and they are absolutely right. The bill that came out of that committee 
was blatantly unconstitutional, and the woman that wrote it admitted 
she could not find the lawyer that would say it was constitutional.
  It is unfortunate that such a bill should come out of the committee. 
I am very proud I voted against it, and

[[Page 12629]]

so did every other Democrat, in urging a constructive alternative, in 
trying to negotiate a way to deal fairly with all these problems.
  The problem all along has been that we are attacked from both 
directions. The bill is either too narrow or it is too broad. It is 
either too deep or it is too shallow. So it has been impossible to meet 
all of the conflicting objections that have been raised.
  So we find ourselves back tonight where we started in March 
essentially, as my colleague, the gentleman from Massachusetts, said, 
voting on the same issue that the House has already voted on twice, but 
hopefully with a better outcome. I think we are moving forward with 
what is an important but obviously a small step to open up the secret 
organizations to sunshine.
  For months while we have waited for this coming together on this 
approach there have been those who have obstructed reform that have 
been working as hard as they can to raise as much secret money as they 
can to fill our air waves with hate in the fall and our mailboxes with 
misinformation.
  We are going to get a very narrow window now, a too narrow window, I 
must say, because of the way the effective date is constructed in this 
legislation, but a very narrow window to look at those stealth 
organizations with their secret stash. As they plan for the fall, we 
will at least be able to know who is launching the attack and identify 
the attackers.
  Tonight I believe we must take a firm stance on the only action we 
can on this very constricted midnight debate that denies an opportunity 
for Republicans or Democrats to add and strengthen and expand and 
perfect this bill, but we should take the action that we are permitted 
to take because it is aimed directly at corruption in the American 
political system, where someone can come in and ask for a favor one day 
and deliver a contribution that is never disclosed on the next day.
  Disclosure by the secret 527 political funds is the one modest reform 
that we can still put in place to affect a little bit of this year's 
election, and we ought to do it without any more delay. I believe that 
this represents one small triumph for democracy over secrecy.

                              {time}  2350

  Mr. HOUGHTON. Mr. Speaker, I yield 1\1/2\ minute to the gentlewoman 
from Maryland (Mrs. Morella).
  Mrs. MORELLA. Mr. Speaker, all is well that ends well; and at least 
we are moving forward in the right direction. I am in very strong 
support, and I hope this body is, of H.R. 4762. Again, I applaud the 
very hard work and dedication of my friends, particularly the gentleman 
from New York (Mr. Houghton), the gentleman from Connecticut (Mr. 
Shays), and the gentleman from Delaware (Mr. Castle) and others on both 
sides of the aisle who have, indeed as we know, worked tirelessly 
around the clock to craft a meaningful, bipartisan and genuine step 
forward in campaign finance disclosure legislation, legislation that 
can and should become law.
  The growing abuse of anonymous political advertising has reached such 
extremes that many of us in Congress who are strong supporters of 
campaign finance reform feel that at least disclosure of 527 
organizations is something to which every voter is entitled. Our 
American principles stress the importance and the value of transparency 
in government; and this legislation, a small step, but a step forward, 
this legislation demonstrates that this Congress is sincere.
  Mr. Speaker, I would like to stress sincerity. It is, in fact, a step 
that demonstrates that we do care, that we are sincere in our belief 
that we can restore the public's voice and the public's confidence in 
the Federal election system. This bill, H.R. 4762, moves us in that 
direction.
  Mr. Speaker, I certainly urge this entire body's support of this 
legislation, and I thank the author for working so hard on it.
  Mr. RANGEL. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. HOUGHTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I urge my colleagues to vote for this bill. I would just 
like to say one other thing. I am proud to be a Member here, and I am 
proud to have friends such as everyone. The Chamber badly needs to pull 
itself together, to work together, to craft legislation together and 
finally feel good about something they have done together.
  So through this bill, H.R. 4762, I would like to feel we can 
reinforce that process.
  If I believed half of what I have heard about the Full and Fair 
Political Activity Disclosure Act of 2000, I would have to vote against 
my own bill.
  Some have said that the bill requires disclosure by too many 
organizations. Some say it should be expanded. Others have said that 
the bill is too narrow. Some say it is unfair to labor; others that it 
lets labor off the hook. Still others claim the bill is 
unconstitutional, but somehow would pass muster if its provisions 
applies 30 days before a primary and 60 days before a general election. 
Or 60 to 90 days. Take your pick.
  It becomes difficult to separate the fact from fiction.
  Fiction: This issue is so politically charged that Congress should 
simply require disclosure by Sec. 527 organizations, period.
  Fact: Some of us feel we need the ``disinfectant of sunshine'' 
regardless of the specific section of the Internal Revenue Code that 
confers tax-exempt status on a group trying to influence an election. 
If we limit disclosure to Sec. 527 groups alone, the money will 
certainly flow to other tax-exempt groups. Section 501(c) organizations 
will become the new haven for those who wish to avoid scrutiny. Our 
approach is fairly straightforward: if you are tax-exempt and intervene 
meaningfully in an election, you disclose.
  Fiction: The Houghton bill applies to lobbying.
  Fact: This is a real red herring. The bill does not impact lobbying 
by anyone--unless an ``issue ad'' identifies a candidate for office, or 
otherwise tries to influence the election of a person. The right to 
know your accuser is a basic element of American fairness. If your ad 
attacks a candidate, the public should know who's paying for it.
  Fiction: The bill is too vague. It isn't clear what must be 
disclosed.
  Fact: For 25 years, Sec. 527 of the Internal Revenue Code has 
provided the definition of political activity for tax law purposes. 
That's the same definition in our bill as well as the Doggett bill. 
Tax-exempt social welfare organizations (sec. 501(c)(4)), labor unions 
and agricultural organizations (sec. 501(c)(5)) trade associations, and 
chambers of commerce (sec. 501(c)(6)) have been interpreting and 
complying with this law for 25 years.
  Fiction: The bill's disclosure requirements are overly broad. Less 
disclosure should be required of 501(c) organizations.
  Fact: Our basic approach here is what's good for the goose . . . . If 
we have a strict set of rules for Sec. 527 organizations and a 
loophole-ridden set of rules for other tax-exempt organizations, it 
isn't too hard to figure out where the money and the activity will go.
  Fiction: The bill is unconstitutional.
  Fact: Because we have no way of knowing how the courts will rule on 
any legislation we consider in Congress, this is always the perfect 
excuse for doing nothing. Some of the bill's critics believe its 
provisions are constitutional on some days, but not on others, 
depending on proximity to an election. I'm not a lawyer but it is clear 
that no group has a constitutional right to tax-exempt status. There is 
no question that Congress has the right to impose conditions on such 
privileged status. And our bill is severable; if one part is found 
unconstitutional, the rest will stand. It's that simple.
  Fiction: (1) The bill is unfair to organized labor. (2) The bill 
gives labor an unfair advantage.
  Fact: Presumably, these claims are mutually exclusive. Apparently, 
some would prefer to shield a number of labor's political activities 
from sunshine while others would like to impose unreasonable disclosure 
requirements on unions. Let me be clear: the bill imposes exactly the 
same disclosure requirements on organized labor as it does on Sec. 527 
political organizations, social welfare organizations, and chambers of 
commerce and trade associations.
  Fiction: The bill will have a chilling effect on participation in the 
political process.
  Fact: The bill simply requires disclosure, nothing more, by tax-
exempt organizations which attempt to influence the outcome of an 
election. The bill should not have a chilling effect unless someone has 
something to hide. Public Citizen, Common Cause, the League of Women 
Voters, Public Campaign and PIRG

[[Page 12630]]

have lobbied Congress to pass Sec. 527 disclosure. If disclosure is 
good for one group, why not all?
  Fact: This is not a perfect bill. There is no perfect bill. But this 
bill, I hope, strikes a difficult balance of promoting meaningful 
disclosure without creating unwarranted burdens for people who want to 
participate in the political process. Senator John McCain is absolutely 
right. We cannot let the perfect be the enemy of the good.
  Mr. SMITH of Michigan. Mr. Speaker, I support this legislation to 
require disclosure of political activities by section 527 
organizations.
  The legislation is identical to the McCain amendment which passed the 
Senate.
  This is an excellent step forward in campaign finance reform.
  The bill will require section 527 organizations to disclose their 
contributions and expenditures on political campaigns.
  While the bill does not address the campaign activities of other 501 
 organizations, coverage of the 527s will address the fastest growing 
problem in campaign advertising--independent groups that can spend 
millions of dollars to influence a campaign--without disclosing their 
contributors.
  Eventually we must have total disclosure of all groups that try to 
influence voting. If the American people know where the money is coming 
from and can measure the significance of the special interest bias they 
will ultimately make the best decision.
  Mr. COYNE. Mr. Speaker, I rise in support of campaign finance 
reform--and in particular the elimination of secret political slush 
funds. With that in mind, I am pleased to support this legislation, and 
I want to commend Chairman Houghton for his leadership and his earnest 
efforts at bipartisanship.
  Legislation addressing the abuse of section 527's operate in total 
secrecy outside the view of the public. These organizations do not 
apply for tax-exempt status with the Internal Revenue Service nor file 
annual returns with the IRS describing their activities and 
contributors.
  This bill is essentially identical to the legislation introduced by 
Representative Lloyd Doggett. It is very similar to the legislation 
that House Democrats have been trying to pass for several months now. 
But this is not some bill designed to score partisan points. Rather, it 
reflects the priorities identified by a bipartisan group of witnesses 
who testified before the Oversight Subcommittee last week in advance of 
the full Committee markup--witnesses like Senators McCain and Lieberman 
and Representatives Castle and Doggett.
  I urge my colleagues to support this important legislation. If we 
can't pass comprehensive campaign finance legislation this year, let's 
at least subject the activities of these organizations to public 
scrutiny. It is essential in a democracy that the voters know who is 
spending money to influence elections.
  Mr. HOUGHTON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Houghton) that the House suspend the rules 
and pass the bill, H.R. 4762.
  The question was taken.


                             Recorded Vote

  Mr. RANGEL. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 385, 
noes 39, not voting 11, as follows:

                             [Roll No. 341]

                               AYES--385

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Andrews
     Archer
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Bass
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
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     Wolf
     Woolsey
     Wu
     Wynn
     Young (FL)

                                NOES--39

     Barr
     Barton
     Bateman
     Bonilla
     Burton
     Canady
     Chenoweth-Hage
     Coburn
     Combest
     Cooksey
     Crane
     DeLay
     Dickey
     Doolittle
     Hayworth
     Hefley
     Herger
     Hostettler
     Jenkins
     Johnson, Sam
     Kingston
     Lewis (CA)
     Linder
     Manzullo
     Mica
     Myrick
     Oxley
     Paul
     Peterson (PA)
     Pitts
     Pombo
     Radanovich
     Ryun (KS)
     Souder
     Stump
     Tancredo
     Thomas
     Thornberry
     Tiahrt

                             NOT VOTING--11

     Cook
     Markey
     Martinez
     McCarthy (MO)
     McIntosh
     Northup
     Oberstar
     Schaffer
     Vento
     Waters
     Young (AK)

                              {time}  0007

  So (two-thirds having voted to favor thereof) the rules were 
suspended and the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mrs. NORTHRUP. Mr. Speaker, on rollcall No. 341, I was inadvertently 
detained. Had I been present, I would have voted ``aye.''
  Ms. McCARTHY of Missouri. Mr. Speaker, on rollcall No. 341, had I 
been present, I would have voted ``aye''.
  Ms. WATERS. Mr. Speaker, on rollcall No. 341, I was detained on an 
emergency call in my office and was not present on the floor when 
rollcall 341 was voted.
  Had I been present, I would have voted ``aye.''




                          ____________________


  Mr. OBERSTAR. Mr. Speaker, during the consideration of H.R. 4762, 
legislation to require Section 527 disclosure, my vote was not recorded 
on final passage.
  Had I been present, I would have voted ``aye'' on Rollcall 341.

                          ____________________