[Congressional Record (Bound Edition), Volume 150 (2004), Part 13]
[Extensions of Remarks]
[Pages 18073-18074]
[From the U.S. Government Publishing Office, www.gpo.gov]




    PROPOSED CHANGES IN FINANCIAL DISCLOSURE LAW FOR 527 POLITICAL 
                             ORGANIZATIONS

                                 ______
                                 

                          HON. JOHN B. LARSON

                             of connecticut

                    in the house of representatives

                      Thursday, September 9, 2004

  Mr. LARSON of Connecticut. Mr. Speaker, today I rise to draw my 
colleagues' attention to a bill I have introduced to address concerns 
that have been expressed about political organizations referred to as 
``527's''. This bill, H.R.

[[Page 18074]]

5013, would give the Department of the Treasury, the Federal Election 
Commission, and the American people a better understanding of 527 
organizations by attempting to subject them to the same type of 
reporting requirements as PAC's and other political organizations.
  This bill would make 527's, which is the section of the Internal 
Revenue Code under which they are registered, more transparent through 
the four main components of this bill.
  First, any political organization that meets defined minimum 
financial requirements must disclose this information to the Department 
of the Treasury. Second, political organizations that raise, spend or 
intend to raise and spend over $25,000 in an election year will have to 
file disclosure reports with the IRS monthly. Previously, organizations 
in this category were only required to file quarterly. Third, 
organizations that have less than $25,000 in receipts must file 
quarterly. Fourth, the Department of the Treasury and the Federal 
Election Commission must work together to improve the database 
disclosure system.
  This bill will provide the American people with more information 
about who is donating to the political process and how that money is 
being spent. If we want to inspire and encourage more Americans to 
participate in the political process, we must make all aspects of the 
process accessible to them.
  The guidelines in my bill will expose political organizations' donors 
and demonstrate they have nothing to hide. Moreover, this information 
will help Americans to make more informed choices.
  I believe that efforts to restrict 527 organizations could raise 
First Amendment concerns and may merely result in their reconstitution 
as 501(c)4, 501(c)5 and 501(c)6 organizations, which have virtually no 
public disclosure requirements. I believe that it would be more 
beneficial to our political process to mandate greater transparency of 
527's rather than attempting to shut them down or otherwise curtail 
their participation in the political process. Therefore, Mr. Speaker, I 
urge my colleagues to support this bill.

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