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1974/08/14 HR15074 District of Columbia Campaign Finance Reform (2)
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1974/08/14 HR15074 District of Columbia Campaign Finance Reform (2)
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The original documents are located in Box 2, folder "1974/08/14 HR15074 District of
Columbia Campaign Finance Reform (2) of the White House Records Office: Legislation
Case Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 2 of the White House Records Office Legislation Case Files
at the Gerald R. Ford Presidential Library
93D CONGRESS
2d Session
}
HOUSE OF REPRESENTATIVES
{
REPORT
No. 93-1080
DISTRICT OF COLUMBIA CAMPAIGN
FINANCE REFORM ACT
REPORT
BY THE
COMMITTEE ON THE
DISTRICT OF COLUMBIA
TOGETHER WITH ADDITIONAL VIEWS
[To accompany H.R. 15074]
FORD & LIBRARY GERALD
JUNE 4, 1974.-Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
I
U.S. GOVERNMENT PRINTING OFFICE
99-006
WASHINGTON : 1974
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1080
DISTRICT OF COLUMBIA CAMPAIGN FINANCE REFORM
ACT
COMMITTEE ON THE DISTRICT OF COLUMBIA
CHARLES C. DIGGS, JR., Michigan, Chairman
JUNE 4, 1974.-Committed to the Committee of the Whole House on the State of
DONALD M. FRASER, Minnesota
ANCHER NELSEN, Minnesota
the Union and ordered to be printed
W. S. (BILL) STUCKEY, JR., Georgia
WILLIAM H. HARSHA, Ohio
RONALD V. DELLUMS, California
JOEL T. BROYHILL, Virginia
THOMAS M. REES, California
GILBERT GUDE, Maryland
BROCK ADAMS, Washington
HENRY P. SMITH III, New York
WALTER E. FAUNTROY,
EARL F. LANDGREBE, Indiana
Mr. DIGGS, from the Committee on District of Columbia,
District of Columbia
STEWART B. McKINNEY, Connecticut
E. G. SHUSTER, Pennsylvania
submitted the following
JAMES J. HOWARD, New Jersey
JAMES R. MANN, South Carolina
ROBIN L. BEARD, Tennessee
ROMANO L. MAZZOLI, Kentucky
CLAIR W. BURGENER, California
REPORT
LES ASPIN, Wisconsin
CHARLES B. RANGEL, New York
JOHN BRECKINRIDGE, Kentucky
together with
FORTNEY H. (PETE) STARK, California
ROBERT B. WASHINGTON, Jr., Chief Counsel
ADDITIONAL VIEWS
JAMES T. CLARK, Legislative Counsel
DOROTHY E. QUARKER, Senior Consultant
RUBY G. MARTIN, Associate Counsel
DR. ALVIN D. LOVING, Sr., Special Consultant
[To accompany H.R. 15074]
DALE MACIVER, Assistant Counsel
DANIEL M. FREEMAN, Assistant Counsel
The Committee on District of Columbia, to whom was referred the
YVONNE CHAPPELL, Professional Staff
WILBUR HUGHES, Professional Staff
bill H.R. 15074 to regulate certain political campaign finance prac-
LINDA L. SMITH, Professional Staff
JOHN E. HOGAN, Minority Counsel
tices in the District of Columbia, and for other purposes, having con-
JACQUELINE WELLS, Professional Staff
LEONARD O. HILDER, Professional Staff
sidered the same, report favorably thereon with amendments and rec-
MARIA L. OTERO, Office Administrator
RALPH E. ULMER, Professional Staff
ommend that the bill as amended do pass.
The amendments are as follows:
On page 18, beginning in line 24, strike out "(c), (d), and (f) of
SUBCOMMITTEE ON GOVERNMENT OPERATIONS
information pamphlets." and renumber items 605, 606, 607, 608, and
BROCK ADAMS, Washington, Chairman
609, as 604, 605, 606, 607, and 608, respectively.
DONALD M. FRASER, Minnesota
EARL F. LANDGREBE, Indiana
On page 18, beginning in line 24, strike out "(c), (d), and (f) of
WALTER E. FAUNTROY,
JOEL T. BROYHILL, Virginia
section 202" and insert in lieu thereof "(c) and (d) of section 201".
District of Columbia
On page 32, line, 1, strike out "District of Columbia Council" and
JAMES J. HOWARD, New Jersey
insert in lieu thereof "Council of the District of Columbia".
JOHN BRECKINRIDGE, Kentucky
JACQUES DEPUY, Subcommittee Counsel
On page 32, line 3, strike out "District of Columbia Council" and
insert in lieu thereof "Council of the District of Columbia".
(II)
On page 35, line 16, strike out "District of Columbia Council" and
insert in lieu thereof "Council of the District of Columbia".
On page 35, beginning on line 18, strike out "District of Columbia
Council" and insert in lieu thereof "Council of the District of
Columbia".
On page 35, line 25, strike out "District of Columbia Council" and
insert in lieu thereof "Council of the District of Columbia".
On page 36, line 19, strike out "District of Columbia Council" and
insert in lieu thereof "Council of the District of Columbia".
(1)
2
3
On page 37, beginning on line 5, strike out "District of Columbia
The large majority of the witnesses and the preponderance of the
Council" and insert in lieu thereof "Council of the District of
testimony, including the General Accounting Office of the United
Columbia".
States, favored the second approach adopted in the reported bill.
On page 38, line 3, strike out "District of Columbia Council" and
For these reasons, the Committee rejected proposals to—
insert in lieu thereof "Council of the District of Columbia".
(1) enlarge the membership of the Board of Elections;
On page 38, line 11, insert "ELECTION" immediately after "1974".
(2) create a new and independent Election Commission;
On page 40, strike out line 19 and all that follows down through line
(3) turn the monitoring of the campaign finance and disclosure
3 on page 43.
provisions over to the General Accounting Office of the United
On page 43, strike out line 5 and insert in lieu thereof "Sec. 604. (a)
States;
The Council of the District of Columbia shall,".
(4) create a new and entirely independent Division on Cam-
On page 44, line 24, strike out "606" and insert in lieu thereof
paign Finance within the Board of Elections.
"605".
The Committee found merit in all of these proposals. However, in
On page 45, line 13, strike out "607" and insert in lieu thereof
the interests of expediting action on this necessary legislation and in
"606".
order to benefit and protect the candidates (over 120 of whom have
On page 45, line 24, strike out "members" and insert in lieu thereof
announced their candidacies to date), the Committee adopted what it
"member".
believes to be the only reasonable approach to the elections taking place
On page 45, insert a comma immediately following "day".
in September and November of this year. This approach is also
One page 46, line 14, strike out "608" and insert in lieu thereof
strongly supported by the General Accounting Office of the United
"607".
States government as the best possible way of achieving the objectives
On page 46, line 22, strike out "609" and insert in lieu thereof
of the Committee in expediting consideration of this legislation.
"608".
PURPOSE OF BILL
NEED FOR LEGISLATION
The purpose of the reported bill (H.R. 15074) is to require full and
The elections next September and November for Mayor and City
complete disclosure of contributions and expenditures made by and on
Council will be watched closely as the vital beginning of local Home
behalf of candidates engaged in local political campaigns in the Dis-
Rule for the Nation's Capital. Action by this Congress is needed to
trict. The legislation would also establish reasonable and realistic
insure that these elections are free from secret financing and free
limitations on the amounts that may be contributed and expended in
from the heavy hand of overly-large contributions, slush funds, and
connection with a candidacy for elective office. In the latter regard,
bundles of cash. If these practices can be prevented, it will mean a
the bill would establish, for the first time, limits on unauthorized ex-
great boost in public confidence in the newly-elected officials. If we
penditures made to advance or oppose a candidate for such elective
fail to act, Home Rule in the District may be launched in a sea of dis-
office.
trust and recrimination.
The citizens of the District, on May 7, 1974, approved the new
It is imperative, therefore, that the voters of Washington, D.C., in
Charter established in the District of Columbia Self-Determination
these coming elections, be afforded the fullest practicable opportunity
and Governmental Reorganization Act (P.L. 93-198) by an over-
to know the candidates for whom they are asked to vote, and where
whelming vote of 85,530 to 18,037 (40% of the registered voters
such candidates stand on the vitally-important issues confronting our
voting).
City today. To assure this result, ample funds must be provided to
The powers and responsibilities granted by the proposed charter to
the competing candidates to furnish them with the wherewithal requi-
locally-elected public officials will affect numerous aspects of the lives
site to an open and full public discussion of the pertinent issues, and
of the citizens of the District of Columbia. These elected officials will
the voters with a free choice among competing candidates. (See ap-
shape vast areas of public policy-for example, systems of transpor-
pendix.)
tation, housing, education, delivery of public services, delivery of
Hence, in the judgment of the Committee, any new election legis-
social services, maintenance of penal systems, consumer protection, the
lation adopted should not be SO restrictive dollarwise, nor so restrain-
environment, taxation, budgeting and spending, land use, zoning and
ing campaignwise, as to impede the holding of a vigorous and unim-
urban renewal.
paired election procedure, in the best of the American tradition;
The Committee gave considerable thought as to whether it should
and due care, in any proposed election legislation, should be exercised
(1) legislate some kind of comprehensive and long-range election re-
to see to it that the regulatory controls imposed on the electoral
form, which would require substantial redrafting of existing law, or
process are not more restrictive in nature and scope than is actually
(2) draft the necessary provisions to meet the needs of the upcoming
required to assure the achievement of a fair and proper election.
1974 local elections and defer long-range plans and revisions to the
newly-elected local government taking office in January, 1975.
4
5
SUMMARY OF MAJOR PROVISIONS OF THE BILL
and financial management under one campaign entity, the administer-
ing-enforcing agency can better perform its responsibility. In the
TITLE I-SHORT TITLE, DEFINITIONS
words of one witness, the "audit trail" will be clearer if the majority
of contributions and expenditures are funneled through one principal
This title contains the short title of the bill, the "District of Co-
committee. In addition, candidates should be able to more effectively
lumbia Campaign Finance Reform Act," and definitions.
manage their own campaigns through this mechanism.
The bill, by its definitions, is intended to apply campaign finance
Another proposal which received unanimous approval by all wit-
regulations to the offices of Mayor and members of the D.C. Council
nesses who discussed the issue was that calling for a campaign deposi-
as established by the District of Columbia Self-Government and Gov-
tory. By the terms of Section 203, each political committee and each
ernmental Reorganization Act. The provisions of this bill do not apply
candidate must designate one national bank in the District of Colum-
to the office of Delegate to the House of Representatives, since that
bia as the campaign depository of that political committee or candi-
office is a Federal one governed by Federal, rather than local, statute.
date. Checking accounts must be maintained at such depository, and
The provisions of this Act remain in force and effect unless later
all expenditures must be by check drawn from that account. Again,
amended by the Congress, or by the D.C. Council under powers
the audit trail is easier to follow and enforcement of the law made
granted to the local government by the Self-Government Act. The
simpler and less costly.
City Council, however, by the specific terms of Section 605 of this
Act, is required to conduct hearings and investigations on the opera-
TITLE III-DIRECTOR OF CAMPAIGN FINANCE
tion and effect of this Act and to issue a public report on its findings
and recommendations.
To administer the program of reporting and enforcement of limita-
tions, the bill creates the Office of Director of Campaign Finance. This
TITLE II-FINANCIAL DISCLOSURES
is a suggestion from the Office of Federal Elections within the General
Accounting Office. They administer the present federal law and urge
Title II requires candidates and committees to keep certain financial
that a single Director be given the responsibility for the day-to-day
information, to report to the Board of Elections and to the public
filing and enforcement.
specified information regarding contributions and expenditures; to
Rule-making power stays with the Board of Elections, as under
designate one principal campaign committee and one campaign de-
present law.
pository; to file registration or organization statements with the
The Director will provide the forms, develop a filing system, make
Board; and to limit expenditures from petty cash funds to a speci-
reports available for public inspection and copying, compile a current
fied amount per person per transaction.
list of all statements on file, make audits and field investigations. The
Title II also requires persons making contributions or expenditures,
Director will issue subpenas upon the approval of the Board.
other than to a political committee or candidate, in an aggregate
The Board may appoint a General Counsel who may initiate civil
amount of $50 or more, to file financial reports. It specifies that all
actions, including petitioning the courts for injunctive relief to en-
campaign literature be identified by the words "paid for by", fol-
force the law.
lowed by the name and address of the payer. Finally, it exempts
These broad new powers to act quickly to enforce the reporting and
from specified provisions of the title candidates who anticipate spend-
expenditure requirements-by petitioning the court immediately for
ing or who spend less than $250 in any one election.
injunctive relief if necessary-are a vital part of this bill.
The majority of financial reporting and disclosure requirements
contained in this title have been taken or modified from the Federal
TITLE IV-FINANCE LIMITATIONS
Election Election Campaign Act of 1971 (Public Law 92-225,
approved February 7, 1972; 86 Stat. 3), or prior existing District
CONTRIBUTIONS TO A CANDIDATE
of Columbia law. Newer ideas or concepts, not incorporated into prior
statutes, were adopted from pending national legislative proposals,
The bill provides in Sec. 401 that an individual may contribute up to
bills before the committee, or recommendations made by agencies with
$1,000 to a candidate for Mayor during the entire campaign, which
enforcement experience, such as the General Accounting Office.
includes the primary and general election.
The overwhelming majority of witnesses before the committee sup-
Lower dollar limits are set for contributions to other candidates.
ported or recommended strict financial disclosure requirements, cam-
Organizations and groups-in contrast to individuals-may make
paign organization monitoring and effective recordkeeping and other
contributions totaling $2,000 for the Mayor's campaign and lessor
aids to full auditing.
amounts for other candidates. These limits are twice the amounts set
The requirement that candidates designate a single, principal cam-
for contributions by individuals.
paign committee (Section 202) is one strongly recommended by the
Individuals are also limited to a maximum of $2,000 in contribu-
the General Accounting Office and supported by every witness who
tions for all the campaigns for office. Organizations and groups do not
commented on the proposal. By centralizing bookkeeping, accounting
have an aggregate ceiling, but are limited by the ceiling set for each
6
7
candidate. Thus if a group donated the maximum to a candidate in
States which do not prohibit labor union campaign contributions
each of the 14 election contests, it would contribute $10,700.
Alabama
Louisiana
Ohio
Alaska
Maine
Oklahoma
INDEPENDENT EXPENDITURE NOT AUTHORIZED BY CANDIDATE
Arkansas
Massachusetts
Oregon
An individual or group which wishes to make direct expenditures
California
Michigan
Rhode Island
(rather than contributions through a Committee) and does not consult
Colorado
Minnesota
South Carolina
the candidate or his representatives, may spend no more than $1,000 in
Connecticut
Mississippi
South Dakota
a year to support or oppose a candidate. This provision is necessary
Delaware
Missouri
Tennessee
to prevent unlimited spending outside a candidate's campaign. Inde-
Florida
Montana
Texas
pendent expenditures cannot be prohibited altogether because the First
Georgia
Nebraska
Utah
Amendment permits free expression of a person's views. However, this
Hawaii
Nevada
Vermont
section of the bill (401(d)) sets a reasonable limit of $1,000 on that
Idaho
New Jersey
Virginia
expression.
Illinois
New Mexico
Washington
No abuse of this section is likely because a candidate is responsible
Iowa
New York
Wisconsin
for keeping expenditures "by or on behalf of the candidate" and his
Kansas
North Carolina
West Virginia
agents within the ceilings on expenditures set in the bill. Only
Kentucky
North Dakota
Wyoming
genuinely independent expenditures in no way authorized or sug-
gested or requested by the candidate, his committees or agents, are
EARMARKED FUNDS AND CONTRIBUTIONS THROUGH A CONDUIT ARE
permitted under the $1,000 limitation of Sec. (d).
IDENTIFIED
A provision of the bill prevents a loss of identification of the source
CASH CONTRIBUTIONS NO LARGER THAN $50
or intended recipient of contributions. The actual contributor and the
Contributions "in legal tender" are limited to $50 or less.
candidate for whom the contribution is intended must be identified.
NO CONTRIBUTIONS IN THE NAME OF ANOTHER PERSON
LIMITATIONS ON EXPENDITURES
To make certain that identification of contributors is not avoided,
Ceilings are placed on the amounts that can be spent in a primary
the bill prohibits a person from making a contribution in the name of
campaign and the same amount is the expenditure limit for a general
another.
campaign.
In the Mayors' race, a candidate's committee and all other commit-
CORPORATIONS AND LABOR ORGANIZATIONS PROHIBITED FROM CONTRIBUTING
tees supporting him and reporting to him, may spend no more than
DIRECTLY
$150,000 in the primary and $150,000 in the general election. Lessor
limits are set for other offices.
The same type of limitation, as exists in Federal elections, is set up
in the bill for District of Columbia elections.
TITLE V. LOBBYING
Corporations and labor organization may establish segregated funds
for voluntary contributions. They may also conduct non-partisan reg-
This title deals with the subject of the regulation of lobbying, which
istration and get-out-the-vote campaigns aimed at their own stock-
is deemed needed in the District of Columbia in view of the delegation
holders and members.
of legislative authority provided in the District of Columbia Self-
Several states have this prohibition of treasury funds of labor unions
Government and Governmental Reorganization Act, Public Law 93-
being used in local and state elections, and all states (except 19) pro-
198 (see D.C. Code Supp. I, 1974), to the Council of the District of
hibit corporate contributions.
Columbia (hereinafter referred to as the Council) established as of
January 2, 1975.
States which do not prohibit corporate campaign contributions
The effective date of this title is January 2, 1975, the date the mem-
Alaska
Idaho
Utah
bers of the elected Council will take office.
Arkansas
Illinois
Vermont
The inclusion of this title is not intended to express or imply criti-
California
Maine
Virginia
cism of lobbying activities per se any more than did the Federal Regu-
Colorado
Nevada
Washington
lation of Lobbying Act (60 Stat. 839, 1946) upon which it is modeled.
Delaware
New Mexico
Wyoming
It is merely a logical extension of regulation under which Congress
Florida
Rhode Island
itself operates to the entity-the Council of the District of Columbia-
Georgia
South Carolina
to which certain legislative authority has been delegated in the Self-
H. Rept. 93-1080-2
8
9
Determination Act. This title will hopefully insure that information,
Fourth. It does not apply in any manner to persons who appear
research, positions, etc., presented to the local Council are full and
voluntarily without compensation.
complete and uphold the integrity of the highest standards of govern-
Fifth. It does not apply to organizations formed for other purposes
mental conduct.
whose effort to influence legislation are merely incidental to the pur-
Title V together with Section 742, the so-called Sunshine Amend-
poses for which formed.
ment (because it is modeled on the Florida law) to the D.C. Self-
Sixth. It does not (as is true with the Federal Regulation of Lobby-
Government and Governmental Reorganization Act, which provides
ing Act) apply to practices or activities regulated by the Federal
for open meetings, will, it is believed, serve the public interest in in-
Corrupt Practices Act nor does it repeal in any way any provision
suring open and non-collusive action by the local Council and the local
of the latter Act.
boards and agencies. This lobbying provision will itself insure regis-
What the title does do:
tration and full and complete disclosure of lobbying activities, which
First. It applies to those who do not visit the Council or its members
was the main thrust of its Federal counterpart, the Federal Regula-
but may initiate propaganda from all over the District in the form
tion of Lobbying Act. (See also 2 USC § 261 et. seq.)
of letters and telegrams, many of which have been based entirely
Section 501 (c) of title V "tracks" or follows the Federal enactment,
upon misinformation as to facts. This class of persons and organiza-
except that it also accommodates the delegation of legislative author-
tions will be required under the title, not to cease or curtail their ac-
ity as contained in the D.C. Self-Government Act. In addition, Section
tivities in any respect, but merely to disclose the sources of their col-
502 sets the standard of $200 or more (rather than $500 or more as set
lections and the methods in which they are disbursed.
in the Federal legislation) for maintaining a detailed account of the
Second. It applies to the second class of lobbyists who may be em-
names and addresses of persons making contributions and including
ployed to lobby the Council under the false impression that they exert
such information in a report to the Director of Campaign Finance of
some powerful influence over its members. These individuals may spend
the District of Columbia Board of Elections. Inasmuch as many state
their time presumably exerting some influence with respect to the legis-
statutes treat lobbying activity legislation as a part of campaign fi-
lation in which their employers are interested, but carefully conceal
nance legislation, it was considered that the lobbying activity should
from the Council members whom they happen to contact the purpose
be regulated and controlled by the D.C. Board of Elections and that
of their presence. The title in no wise prohibits or curtails their ac-
the Director of Campaign Finance serving the Board should receive
tivities. It merely requires that they shall register and disclose the
reports and generally administer the program of regulating lobbying
sources and purposes of their employment and the amount of their
activities. It may be that the Board will, and should, require that copies
compensation.
of filings and reports also be filed with the Secretary of the Council.
Third. It applies to a third class of entirely honest and respectable
The Committee has followed the phraseology and wording of the
representatives of business, professional, and philanthropic organiza-
Federal Regulation of Lobbying Act SO that there will not be imposed
tions who openly and frankly express their views for or against legis-
on those whose activities are regulated a proliferation of differing
lation, many of whom serve a useful and perfectly legitimate purpose
requirements and reports when the same person or persons may be
in expressing the views and interpretations of their employers with
appearing before the Council and the Congress with respect to the
respect to legislation which concerns them. They will likewise be re-
same legislation, because of the legislative oversight retained by Con-
quired to register and state their compensation and the sources of
gress in the D.C. Self-Government Act. Moreover, it should be help-
their employment.
ful to those required to register and report under this title that the
It is the intention of the Committee that the newly-elected Council
interpretations of the Federal law be available to guide them as to
be authorized to change, modify or repeal this title if in its wisdom
the provisions of this title.
such a course is appropriate. Nothing contained in Title V should be
Since title V is patterned after the Federal Regulation of Lobbying
viewed as affecting the authority under Public Law 93-198 to amend
Act, a listing of what this title does and does not do (largely follow-
this title as any other title of this bill.
ing the language of the Senate Report accompanying the 1946 Federal
Act) is provided—
TITLE VI
What the title does not do:
First. It does not curtail the right of free speech or freedom of the
TAX INCENTIVE FOR CAMPAIGN CONTRIBUTIONS
press or the right of petition.
Second. It has no application to the publishers of newspapers, mag-
In the D.C. individual income tax law, there is no allowance for
azines, or other publications, acting in the regular course of business.
itemized deductions or tax credit for political contributions. The Fed-
Third. It has no application to persons who appear openly and
eral law permits both. H.R. 14754 (Sec. 602) provides a $12.50 credit
frankly before the Council or committees of the Council and engage
per person on the individual income tax,
in no other activities to influence legislation.
10
11
thorization of $750,000 therefor. It is understood that the Board of
HISTORY
Elections is presently hiring additional personnel, pursuant thereto, to
Hearings on earlier proposed legislation (H.R. 13539 and H.R.
assist in the conduct of these 1974 elections.
12038) were held by the Subcommittee on Government Operations on
April 3 and 4, 1974, which reported a clean bill, H.R. 14754, embody-
ing amendments to the foregoing bills. The Full Committee held fur-
BOARD OF ELECTIONS,
ther hearings on May 20 and 21, 1974.
Testimony in support of various aspects of campaign financing legis-
GOVERNMENT OF THE DISTRICT OF COLUMBIA,
lation was presented by representatives on behalf of the D.C. Govern-
Washington, D.C., April 9, 1974.
Hon. BROCK ADAMS,
ment Executive and Legislative Branches. Numerous public witnesses,
many of them declared candidates for this Fall's elections in the Dis-
Chairman, Government Operations Subcommittee of the House Dis-
trict, urged the enactment of such legislation in some form, from few
trict Committee, Washington, D.C.
limitations and restrictions on contributions and expenditures to very
DEAR CHAIRMAN ADAMS: In response to your request for the esti-
rigid prohibitions on fund raising, spending and disclosure.
mated costs of campaign financing measures, the Board of Elections
The reported bill (H.R. 15074). is a composite of the varying views
for the District of Columbia submits the following information.
and represents the unanimous judgment of the Committee Members
1. The projected cost of implementing the Campaign Financing Act
who heard the evidence and voted to report the bill.
using the present Board of Elections as the administering agency is
based on the following personnel and office management considera-
tions.
VOTE
As suggested in the Board of Elections testimony before the Gov-
The bill, H.R. 15074, as amended, was ordered reported to the House
ernment Operations Subcommittee, there should be two additional
on May 30, 1974 by a Committee vote of 15 ayes, 0 nays.
Board members, serving part-time, who would be exclusively engaged
in administering the regulations in the Campaign Financing Act, and a
CONCLUSION
staff of four. The staff should consist of a general counsel, an account-
ant, and two clerical persons, a GS-7 secretary who can take short-
By this legislation, the Committee has endeavored to rectify the
hand and a GS-5 clerk-typist.
major inadequacies of the existing D.C. Election Law and thus assure
its adequate workability insofar as the first local elections in 100 years
Grade
Amount
for Mayor and Council are concerned:
The Committee believes the provisions of H.R. 15074 will assure
2 Board members (part time)
$11,250 per year
$22,500
fair play and as full disclosure of contributions and expenditures in
1 General Counsel (part time)
GS-14 (base pay)
24,247
1 Accountant (part time)
GS-12 (base pay)
17,497
the election procedures as is possible in such legislation. For the rea-
1 Secretary
GS-7
9,969
1 Clerk-typist
GS-5
8,055
sons indicated in the "Purpose Section," the Committee has adopted
proposals to assure fair and clean elections in these first elections. The
Subtotal
82,263
Office management: Supplies, telephones, transportation, etc
10,000
new Council may make such changes to achieve long-range reform in
Total
92,268
our electoral process.
COST
It should be noted that the Board highly recommends making at
Following is an estimate of costs of the proposed legislation, as cal-
least one member, the Chairman, full time with commensurate benefits
culated by the Board of Elections for the District.
and pay. If this request is given affirmative action, then, of course, the
The first estimate ($92,268) assumes the addition of 2 other Board
cost estimate must be adjusted accordingly.
members to the present Board, which the Committee did not approve.
2. The estimated cost of administering the Act by establishing a new
However, the Committee added a Director of Campaign Finance, as
commission is as follows:
a full-time employee, SO his salary would almost approximate that of
H.R. 12638 calls for the 5 commission members to be paid at the
the 2 part-time Board members not included in H.R. 15074 but shown
rate of $125 per day. In the first year of operation, with the large
below.
number of candidates expected (there were 68 for the first School
The second estimate ($203,715) was predicated upon the Commit-
Board election), the Commission might be sitting for about ½ to 3/4
tee's establishment of a new commission, which the Committee
of the year which would amount to about $15,000 to $20,000 per mem-
disapproved.
ber or $75,000 to $100,000.
Of course, the major expenditures presently faced by the District
Staff should include a general counsel, an accountant, and at least
Government are occasioned by the elections themselves for the posi-
5 clerical persons.
tions provided in the Home Rule Act, which itself included an au-
12
13
$100, 000
5 Commissioners
rendered without charge or for less than reasonable value) ; "expendi-
24,247
1 General Counsel, GS-14
17, 497
ture," "person," "Director," "political party;" and "Board."
1 Accountant, GS-12
9, 969
1 Secretary, GS-7
21,594
TITLE II-FINANCIAL DISCLOSURES
3 Clerk-Typists, GS-4 at $7,198
6, 408
1 Messenger, GS-3
Section 201. Organizations of Political Committees.
179, 715
Total
Section 201 (a). Every political Committee is required to have a
chairman and a treasurer. No contribution and no expenditure shall
Office Management
5, 000
Supplies
be accepted or made when there is a vacancy in the office of treasurer,
000
Telephones
and no one has been designated and has agreed to perform the func-
Rent (if not in D.C. facilities)
12,000
Miscellaneous
5, 000
tions of the treasurer. Expenditures must be authorized by the chair-
man or treasurer or designated agents.
Total
24, 000
Section 201 (b). Every person who receives a contribution of $10
or more for or on behalf of a political committee shall submit to the
Grand total
203, 715
committee a detailed account thereof, including the amount, the name
These estimates are based on a projected work load and past expe-
and address (including occupation and business address) of the con-
rience in staffing.
tributor and the date it was received.
We would like to take this opportunity to call to the attention of
Section 201 (c). Except for expenditures made out of the permitted
the Committee that with the passage of Public Law 93-198 additional
petty cash fund, the treasurer of a political committee and each can-
responsibilities have required Board members to serve on almost a
didate shall keep a detailed and exact account of (1) all contributions;
daily basis. This is especially the case with the Chairman.
(2) the identification of all contributors of $10 or more; (3) all ex-
The D.C. Board of Elections proposes that the ceiling on compen-
penditures made on the behalf of the Committee or candidate; and
sation to Election Board Members be removed in view of their addi-
(4) the identification of every person to whom an expenditure is made.
tional duties and responsibilities required as a result of enactment of
Section 201 (d). The treasurer or candidate shall obtain such re-
Public Law 93-198. The Board recommends that this proposed legis-
ceipted bills and records as may be required by the Director.
lation be limited to FY 75 and be retroactive for Board Members who
Section 201 (e). Each political committee and each candidate shall
have reached the current limitation of $11,250 by the date of
indicate on the face of all fund-raising literature that a copy of it
:
enactment.
report is on file with the Director.
On behalf of the Board, I wish to thank you for giving us this
opportunity to express our views on the vital subject of campaign
Section 202. Principal Campaign Committee
financing legislation. If we can be of further assistance, please feel
Section 202 (a) (b) (c). Each candidate shall designate one political
free to contact us.
committee as his principal campaign committee. The principal cam-
Sincerely,
paign committee shall receive all reports made by any other political
CHARLES B. FISHER,
committee supporting that candidate. No political committee may be
Chairman.
designated as the principal campaign committee of more than one
candidate (except for political party office). The treasurer of each prin-
cipal campaign committee and each candidate shall receive all re-
SECTION-BY-SECTION ANALYSIS
ports furnished by other political committees and shall consolidate
TITLE I-SHORT TITLE, DEFINITIONS
and furnish reports and statements to the Director of Campaign
Finance of the D.C. Board of Elections, in accordance with the regula-
Section 101. Short Title.
tions of the Board.
This section contains the short title, "District of Columbia Cam-
Section 203. Designation of Campaign Depository
paign Finance Reform Act".
Section 102. Definitions.
Section 203 (a). Each political committee and each candidate accept-
This section includes "election" (each primary, runoff, general or
ing contributions or making expenditures shall designate one na-
special election) ; "candidate," "office," "official of political party,"
tional bank located in D.C. as the campaign depository. All expendi-
"political committee" (any committee, club, association, organization
tures are to be made by check from the account at such depository.
Section 203 (b). A political committee or candidate may maintain a
or other group of individuals organized for the purpose of, or engaged
petty cash fund out of which may be made expenditures not in excess
in, promoting or opposing a political party or the nomination OF elec-
tion of an individual to office) ; "contribution" (a gift, subscription,
of $50 to any person in connection with a single purchase or trans-
action. A record of petty cash receipts and disbursements shall be
loan, advance or deposit of money or anything of value; a contract,
furnished to the Director.
promise or agreement to make a contribution; a transfer of funds; the
payment of compensation for the personal services of another person
14
15
Section 204. Registration of Political Committees; Statements
5. Identification of persons who make loans to committees or
Section 204 (a). Each committee shall file with the Division a state-
candidates in aggregate of $50 or more;
ment of organization at such time as the Director may prescribe.
6. The net amounts of proceeds from fundraising events;
Section 204 (b). The statement of organization shall include:
7. All receipts of $50 or more not listed in (2) through (6);
1. The name and address of the political committee;
8. The total sum of all receipts during the reporting period;
2. The names, addresses, and relationships of affiliated or con-
9. Identification of each person to whom expenditures have
nected organizations;
been made in aggregate of $10 or more;
3. The area, scope, or jurisdiction of the political committee;
10. The total sum of expenditures during the calendar year;
4. The name, address, and position of the custodian of books
11. The amount and nature of debts and obligations, including
and accounts;
post-election reporting of such debts and obligations;
5. The name, address, and position of other principal officers,
12. Such other information as may be required by the Director.
including officers and members of the finance committee if any;
Section 207. Reports by others than political committees.
6. The name, address, office sought, and party affiliation of (A)
each candidate whom the committee is supporting, and (B) any
Every person (other than a candidate or a political committee)
other individual, if any, whom the committee is supporting; or
who makes contributions or expenditures other than by contribution
if the committee is supporting the entire ticket of any party, the
to a political committee or a candidate in the aggregate amount of $50
or more per year shall file with the Director a statement containing
name of the party.
7. A statement whether the political committee is a continuing
information required by Sec. 206.
one;
Section 208. Formal requirements respecting reports and statements.
8. The disposition of residual funds which will be made in the
Reports required by this Act shall be verified by oath or affirma-
event of dissolution;
tion by the person filing same. The Board shall, by published regula-
9. The name and address of the depository used by the com-
tions, prescribe the manner in which contributions and expenditures
mittee, together with the title and number of each account and
in the nature of debts, contracts and agreements shall be reported.
safety deposit box used by that committee at the depository, and
the identification of each individual authorized to make with-
Section 209. Exemption for candidates who anticipate spending less
than $250.
drawals or payments out of each such account or box.
10. Such other information as may be required by the Director.
Except for other provisions noted, the provisions of this title shall
not apply to any candidate who spends less than or anticipates spend-
Section 205. Registration of Candidates
ing less than $250 in any one election and who has not designated a
Each individual shall, within 5 days after becoming a candidate (or
principal campaign committee. On the 15th day prior to the election
receiving contributions or making expenditures), file a registration
and the 30th day after the election date, such a candidate shall certify
statement with the Director. The statement shall include the identifi-
to the Director that he has not spent more than $250.
cation of the campaign depository, safety deposit boxes and individ-
uals authorized to make withdrawals and payments from the account.
Section 210. Identification of Campaign Literature
All advertising, posters and the letter enumerated herein and con-
Section 206. Reports by Political Committees and Candidates
stituting campaign literature must be identified as "paid for by" the
Section 206 (a). The treasurer of each committee and each candi-
payer thereof named.
date required to register shall file with the Division and the principal
campaign committee reports on receipts and expenditures (on forms
TITLE III-DIRECTOR OF CAMPAIGN FINANCE
to be prescribed or approved by the Director). Such reports shall be
made 21 days after the enactment of the Act, and on January 31,
Section 301. Establishment of the Office of Director
March 10, June 10, August 10, and the 15th and 5th days before an
Section 301 (a). There is established within the Board of Elections
election. Contributions made within 5 days before the election shall be
the Office of Director of Campaign Finance, who shall be appointed
disclosed within 24 hours after its receipt.
by the Board. The Director shall be responsible for the administrative
Section 206 (b). Included in each report shall be:
operations of the Board pertaining to this Act.
1. Amount of cash on hand at the beginning of the reporting
Section 301 (b). The Board may appoint a General Counsel who
period;
shall perform such duties as may be delegated or assigned by the
2. Identification of all contributors who have contributed in
Board.
aggregate of $50 or more within the calendar year;
Section 301 (c). The Board shall refer apparent criminal viola-
3. The total sum of all contributions received during year not
tions to the U.S. Attorney for prosecution and shall make public the
reported in (2).
fact of such referral. The Board shall initiate, maintain, defend or
4. The identifications of any entity from or to which the com-
appeal any civil action relating to the enforcement of the provisions
mittee or candidate made a transfer of funds;
of this Act.
H. Rept. 93-1080-3
16
17
Section 302. Powers of the Director
Section 402. Limitation on Expenditures
Section 302 (a). The Director shall have the power to require any as
Expenditure ceilings per single campaign are as follows:
person he may prescribe to require by subpoena the attendance and
to submit in writing such reports and answers to questions testimony
1. Mayor-$150,000.
2. Chairman of City Council-$100,000.
of witnesses and to take other (specified) actions.
3. Member of the City Council, at large-$75,000.
Section 303. Duties of the Director
4. Member of the School Board at large and City Council
This section sets forth in detail the administrative duties of the
Ward-$20,000.
Director; making, filing and preserving various reports, statements Board
5. Member of the School Board Ward and party office, $10,000.
and other materials; and performing such other duties as the
TITLE V-Lobbying
may require.
Section 304. General Accounting Office to Assist Board and Director
Section 501. Definitions
The Board and the Director may request the assistance of the Comp-
For convenience of reference, the definitions of "contribution," "ex-
troller General of the United States in the performance of the Board's
penditure," and "legislation" in this section are as follows:
functions.
(a) The term "contribution" includes a gift, subscription, loan, ad-
TITLE IV. FINANCE LIMITATIONS
vance, or deposit of money or anything of value and includes a con-
tract, promise, or agreement, whether or not legally enforceable, to
Section 401. General Limitations
make a contribution.
Section 401 (a). For individual contríbutions for campaign for
(b) The term "expenditure" includes a payment, distribution, loan,
elections (primary, general or special), the limits are:
advance, deposit, or gift of money or anything of value, and includes
1. Mayor: $1,000.
a contract, promise, or agreement, whether or not legally enforceable,
2. Chairman of City Council $750.
to make an expenditure.
3. Member of Council, at Large: $500. Member from Ward:
(c) The term "legislation" means bills, resolutions, amendments,
$200. 4. Member of Board of Education: at Large: $200; From
nominations, rules, and other matters pending or proposed in the
Council of the District of Columbia Council, and includes any other
Ward $100.
matter which may be the subject of action by the Council of the Dis-
Section 401 (b). Limits for contributions by a "person" (associa-
trict of Columbia Council.
tion, corporation, labor organization, etc.) in an-election campaign
Section 502. Detailed Accounts of Contributions; Retention of Re-
(primary, general or special) are:
ceipted Bills of Expenditure
1. Mayor: $2,000.
2. Chairman of Council $1,500.
Subsection (a) of this section states that it shall be the duty of any
3. Member of the City Council at large $1,000.
person soliciting or receiving contributions (as defined above) to any
4. Member of the City Council Ward, or School Board at Large:
organization or fund for the purpose designated in this title to keep a
detailed and exact account of (1) all such contributions; (2) the name
$400. 5. Member of the School Board Ward or party office $200.
and address of every person making a contribution of $200 or more
Section 401 (c). No "individual" shall make contributions or expen-
and the date thereof; (3) all expenditures made by or on behalf of the
ditures in any one election to all candidates in an excess of $2,000
organization or fund; (4) the name and address of every person to
whom the expenditure is made, and the date thereof.
(aggregate) ;
Section 401 (d). Any expenditure for or against a candidate not
Subsection (b) provides that it shall be the duty of such a person to
made at his request or suggestion is not a contribution to or an expen-
keep detailed, receipted bills for expenditures in excess of $10, and to
diture by him. A person making such unauthorized expenditures may
preserve all receipted bills and accounts for at least two years from
the data of filing of the statement containing such items.
expend in excess of $1,000 per year.
Section 401 (e). No person shall make a cash contribution in excess
Section 503. Receipts for Contributions
of $50.
This section requires every individual who receives a contribution
Section 401 (f). No person shall make a contribution in the name
of $200 or more for any purpose designated in this title, within five
of another.
days after receipt, to render to the person or organization for which
from making any contributions or expenditures for a candidate
Section 401 (g). Labor organizations and corporations are prohibited for
it was received a detailed account thereof, including the name and ad-
dress of the contributor and the date on which it was received.
office in the District of Columbia.
Section 401 (h). Earmarked contributions are attributed to their
Section 504. Statements of Accounts Filed with Director
Subsection (a) of this section requires every person receiving any
source.
contribution or expending any money for the purposes designated in
18
19
this title to file with the Director, between the first and tenth day of
each calendar quarter, a statement showing (1) the name and address
to his pay for such services. It is further provided that such person SO
of each person contributing $200 or more not listed in the previous re-
registered shall report to the Director each calendar quarter details
port, except that the first such report shall contain the name and ad-
concerning money received and expended by him during the preceding
dress of each person making such a contribution since January 2, 1975;
calendar quarter in connection with his work. The provisions of this
(2) the total sum of the contributions made to or for such person
section shall not apply, however, to any person who merely appears
during the calendar year and not stated under the foregoing require-
before a committee of the Council of the District of Columbia in sup-
ment; (3) the total sum of all contributions made to or for such person
port of or in opposition to legislation, but who engages in no further
during the calendar year; (4) the name and address of each person
activities in connection with the passage or defeat of legislation; a
to whom an expenditure of $10 or more has been made within the
odical acting in the normal course of its business.
public official acting in his official capacity; and a newspaper or peri-
calendar year by or on behalf of such person and the amount, date and
purpose of such expenditure; (5) the total sum of all expenditures
Subsection (b) requires all information filed under the provisions of
made by or on behalf of such person during the calendar year and not
this section with the Director to be compiled by the Director and to
stated under the foregoing requirement; and (6) the total sum of ex-
be printed in the District of Columbia Register.
penditures made by or on behalf of such person during the calendar
Section 508. Reports and Statements Under Oath
year.
Subsection (b) provides that the statements required to be filed
title to be made under oath.
This section requires all statements and reports required under this
under this section shall be cumulative during the calendar year to
Section 509. Penalties and Prohibitions
which they relate.
Section 505. Preservation of Statements
Subsection (a) of this section states that a violation of any provision
of this title shall be a misdemeanor, punishable by a fine of not more
Subsection (a) of this section provides that statements required
under this title to be filed with the Director shall be deemed properly
both. than $5,000 or imprisonment for not more than twelve months, or
filed when deposited in a post office within the required time, duly
Subsection (b) provides, in addition to the penalties provided in
stamped, registered, and addressed to the Director; but in the event
it is not received, a duplicate statement shall be filed promptly upon
subsection (a), that any person convicted of the misdemeanor speci-
fied in subsection (a) is prohibited for a period of three years from
notice by the Director of its non-receipt.
Subsection (b) requires that such statements shall be preserved by
indirectly, the passage or defeat of any proposed legislation or from
the date of such conviction from attempting to influence, directly or
the Director for a period of at least two years from the date of filing,
shall constitute part of the public records of his office, and shall be
appearing before a committee of the D.C. Council in support of or
opposition to any proposed legislation. Further, any person who vio-
open to public inspection.
by a fine of not more than $10,000, or imprisonment for not more than
lates this provision shall be guilty of a felony and shall be punished
Section 506. Persons to Whom Title is Applicable
This section defines the application of this title to include any per-
five years, or both.
son (except a political committee) who, by himself or through an agent
or employee or other person in any manner whatsoever, directly or in-
TITLE VI-PENALTIES AND ENFORCEMENT Tax CREDITS, USE OF SUR-
directly, solicits, collects, or receives money or any other thing of value
PLUS CAMPAIGN FUNDS, VOTERS' INFORMATION PAMPHLETS, STUDY
to be used principally to aid, or the principal purpose of which person
is to aid, in the accomplishment of any of the following purposes:
IZATION. AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION Act, AND AUTHOR-
OF ELECTIONS OF 1974 AND REPORT BY COUNCIL, EFFECTIVE DATES,
(a) The passage or defeat of any legislation (as defined in section
501 (c) of this title) by the Council of the District of Columbia
Section 601. Penalties
(b) To influence, directly or indirectly, the passage or defeat of any
legislation by the Council of the District of Columbia.
fine, 6 month imprisonment, or both.
Violators of any provision in this Act will be subject to a $5,000
Section 507. Registration of Lobbyists with Director; Compilation
Section 602. Tax Credit
of Information
Subsection (a) of this section provides that any person who shall
There shall be allowed to an individual a credit against his income
engage himself, for pay or for any consideration, for the purpose of
tax in an amount equal to 50% of his campaign contribution, but in
attempting to influence the passage or defeat of legislation by the
joint return.
no event shall such credit exceed $12.50, or $25.00 in the case of a
Council of the District of Columbia shall register with the Director,
giving him in writing and under oath full details of his employment in
Section 603. Use of Surplus Campaign Funds
such capacity. This information shall include his name and business
Surplus campaign funds may be contributed to educational
address, the name and address of the person by whom he is employed
in this capacity, the duration of such employment, and all details as
charitable organizations, used to retire the political committee's or
proper debts, or preserved for the future campaigns of the candidate.
20
21
Section 604. A study of the 1974 Elections and a Report by the City
mits an additional $750,000 for the expenses of the Board of Elections
Council
This section requires the Council to study the 1974 elections and the
and for use "in carrying into effect the provisions of this Act."
Many of the proposals made at the hearings or included in various
Campaign Finance and Elections Acts to determine the necessity and
bills before our committee seem to be already within the competence
desirability of amending the acts.
of the District Government and Board of Elections to put into effect
Section 605. Effective Dates
immediately. Is there any legal restriction preventing the Board from
Section 605 (a). Title II (Financial Disclosures) and Title IV
doing any or all of the following:
(Finance Limitations) take effect on date of enactment of this Act, ex-
1. Increase the staff of the Board of Elections to handle the greatly
cept that report of any individual or political committee of contribu-
increased number of registrations of political committees that will
tions and expenditures, must include contributions and expenditures
occur starting May 8 if the new charter is approved on May 7, and
made after June 1, 1974 and before the date of enactment.
to help committees keep records and file reports which will be due
Section 605 (b) Titles I (Short title and Definitions), III (Director
within 4 months under existing law.
of Campaign Finance) and VI (Penalties, etc.) take effect on date of
2. When political committees register under present law, have them
enactment of this Act.
use a more detailed form such as suggested by Sec. 8 (d) of H.R. 13914.
Section 605 (c) Title V (Lobbying) takes effect on January 2, 1975.
3. When candidates and political committees report their contri-
butions and expenditures under present law, have them use the detailed
Section 606. Amendments to District of Columbia Election Act
form outlined by Sec. 10 of H.R. 13914 or use reporting forms already
Section (a). Authorizes appropriations to carry out the Act.
designed by the Comptroller General of the U.S. in administering the
Section 606(b). Increases compensation for Members of Board to
Federal Election Campaign Act of 1971, as suggested in Sec. 203 of
$75 per day with limit of $11,250 per annum except during 1974.
H.R. 13539.
Section 606(c). Provides that the Chairman of the Board "shall
4. Get immediate advice and assistance from the GAO on other pro-
serve in a full-time capacity."
cedures and forms, as suggested in Sec. 5(f) of H.R. 13914.
Section 607. Authority of Council
5. Appoint a General Counsel to be chief legal officer of the Board,
This section makes it explicitly clear that the Act does not limit the
as suggested in Sec. 5 (b) of H.R. 13914.
authority of the District of Columbia Council, after January 2, 1975,
6. Advise candidates and committees that present D.C. law requires
to legislate respecting any matter covered by this Act.
a judge to "void an election" for "making of expenditures by a candi-
date in violation of this chapter," in serious cases.
Section 608. Authorization of Appropriation
7. Make the reports and statements filed with it available for copy-
This section provides that the $750,000 authorized by the District of
ing by hand or duplicating machine, as suggested in Sec. 6(f) of
Columbia Self-Government and Governmental Reorganization Act
H.R. 13914.
(Public Law 93-198), may be used to carry out the purposes of this
8. Compile and maintain current lists of all statements on file per-
Act.
taining to each candidate, as suggested by Sec. 6(f) of H.R. 13914.
APPENDIX
9. Make audits and field investigations with respect to reports and
statements filed and with respect to alleged failures to file any report
U.S. HOUSE OF REPRESENTATIVES,
or statement, as suggested in Sec. 6(f) of H.R. 13914.
COMMITTEE ON THE DISTRICT OF COLUMBIA,
10. Adopt definitions for "election," "candidate," "political com-
Washington, D.C., May 3, 1974.
mittee," "contribution," "expenditure," and "political party," simi-
Hon. WALTER E. WASHINGTON,
lar to definitions in various bills.
Mayor-Commissioner, District of Columbia, District Building, Wash-
11. Set a requirement for a central campaign committee for a candi-
ington, D.C.
date, filing reports with a candidate by other committees using his
DEAR MR. MAYOR: When Corporation Counsel, C. Francis Murphy,
name, use of campaign depositories, limitations on use of cash, prohi-
represented the District Government at hearings April 3, he agreed
bition on conversion of political contributions for personal use, simi-
with other witnesses on the need for "machinery for an open electoral
lar to Sec. 8(c), Sec. 12(d) of H.R. 13914, and Sec. 201 (d) and Title
process" for the coming elections.
VI of H.R. 13539.
As you know, Congress amended the D.C. Election Act in 1971 to
12. Establish a Commission on Elections on an advisory basis with
require detailed recordkeeping and filing of financial reports by candi-
some members recommended by the Comptroller General of the U.S.
dates and poltical committees. In addition, the D.C. Code authorizes
and by the Chairman of the Council, as suggested in H.R. 13914, or
the Board of Elections to "prescribe such regulations as it considers
courts. by the political parties as in Kentucky and Florida or by the D.C.
necessary in order to carry out the purposes of the Act," and states
that "The District government shall furnish to the Board
serv-
If the District Government and Board of Elections put into opera-
ices, personnel, offices, and equipment
The Home Rule Act per-
tion immediately these elements of "machinery for an open electoral
process", it would make for an easy transition to any additional cam-
22
23
paign requirements Congress may enact and the President approve.
expenditures. I am further advised that the D.C. Board of Elections
This is especially true if the Board later turns these functions over
will look favorably upon the adoption of the forms prepared by the
to a new Commission or Division as suggested by some of the bills and
Comptroller General of the United States in administering the Fed-
bill drafts.
eral Election Campaign Act of 1971.
Sincerely,
Answer to Question 4: The D.C. Board of Elections is authorized
CHARLES C. DIGGS, JR., Chairman.
to seek the advice of the General Accounting Office and has already
done SO. The General Accounting Office has made available to the
Board copies of its forms and regulations and will make available
information about its procedures. In addition, the General Accounting
THE DISTRICT OF COLUMBIA,
Office can offer assistance in developing new regulations which will
Washington, D.C., May 8, 1974.
be needed for the forthcoming elections.
Hon. CHARLES C. DIGGS, Jr.,
Answer to Question 5: There is no legal restriction which would
Chairman, Committee on the District of Columbia, U.S. House of
prevent the Board of Elections from appointing a General Counsel
Representatives, Longworth Office Building, Washington, D.C.
to render such services as the Board may desire. If a position of Gen-
DEAR MR. CHAIRMAN: This is in response to your letter of May 3,
eral Counsel is needed immediately, interim provision can be made
1974, in which you have asked whether there are any legal restrictions
through the temporary position authority of the District Government.
to prevent the D.C. Board of Elections from taking certain actions
The authority for a permanent position for a General Counsel would
to put into operation immediately, machinery for an open electoral
have to be requested through the normal budget process. The Corpora-
process for the elections this fall under Public Law 93-198. I share
tion Counsel is of the opinion that the Board of Elections should be
your concern for the need for machinery for an open electoral process
supported by separate counsel in connection with any investigative
and welcome this opportunity to inform you of what the city govern-
functions relating to campaign contributions and expenditures. The
ment is prepared to do within existing law to insure an open process.
Board will take this opinion into consideration when it decides what
As a preliminary to preparing a response to your letter, I asked
action to take on this suggestion.
members of my staff to meet Monday with members of the D.C. Board
Answer to Question 6: It is within the authority of the Board of
of Elections and its staff and representatives from the General Ac-
Elections to advise candidates and political committees that present
counting Office and the D.C. Council. Since the D.C. Board of Elec-
D.C. law empowers a judge to "void an election" for "making of ex-
tions is an independent agency, my responses to your specific ques-
penditures by a candidate in violation of this chapter" in serious cases.
tions are limited insofar as we find there is no legal obstacle to the
The Members of the Board of Elections have advised that they intend
Board of Elections taking certain actions. Although it is for the Board
to do this in the forthcoming elections.
alone to decide, and my letter does not presume to prejudge what
Answer to Question 7: The Board of Elections has the authority
actions the Board may take, we have been assured that the Board
to allow any financial reports and statement filed with it to be avail-
would like to do as much as can be done under current law to carry
able for copying by hand or duplicating by machine at cost. The Board
out the purposes of the home rule act.
of Elections has allowed such copying in past elections and the Board
Responding to your questions seriatum, the D.C. Corporation Coun-
intends to continue to do SO.
sel has advised me that in his opinion:
Answer to Question 8: It is within the authority of the Board of
Answer to Question 1: There is no legal restriction to prevent an
Elections to compile and maintain current lists of all statements
increase in the staff of the D.C. Board of Elections.
on file with it pertaining to each candidate. It is not clear whether
With respect to this question and questions numbered 5 and 9, it
the question also related to the type of full publication required by
is our position that the Executive Branch has been and will continue
section 6(f) (4) et seq. of H.R. 13914. The cost of such publication
to be responsive to the requirements of the Board of Elections to carry
would be prohibitive and beyond the capability of the Board's staff
out its responsibilities. This, of course, is contingent upon appropriate
and fiscal resources.
justifications and funding availability. Moreover, the District Gov-
Answer to Question 9: Under existing law, the Board of Elections
ernment has requested funding in Fiscal Year 1975 for added resources
would be authorized to conduct audits and field investigations with
for the Board of Elections to enable it to carry out increased respon-
respect to reports and statements filed with the Board and with respect
sibilities under home rule. A potential resource to assist the Board
to alleged failures to file any report or statement. The Board of Elec-
of Elections in meeting the costs not fully anticipated in the Fiscal
tions has advised that it will consider how it can best perform such
Year 1975 budget request is an advance provided for in section 722
audits and investigations. It will. specifically consider asking the
of Public Law 93-198. A part of this can be made available to the
Comptroller General of the United States to assist in the formula-
Board of Elections for carrying out the provisions of that Act.
tion of a task force to do the job in the local elections this fall. Addi-
Answers to Questions 2 and 3: It is within the regulatory power of
tional statutory authority would be needed to enable the General
the Board of Elections to specify the forms which are to be used by
Accounting Office to participate directly in audits and investigations.
political committees for registration and to report contributions and
H. Rept. 93-1080-4
24
25
Answer to Question 10: The Board of Elections has authority to
Bill, I have just been informed that even though the record will not be
promulgate regulations which define terms such as "election," "candi-
closed for several more days the Subcommitte has reported a bill and
date," "political committee," "contribution," "expenditure," and
the full Committee will consider same tomorrow morning. Accord-
"political party." The Board of Elections has advised that it is
ingly, even though a good part of what I plan to furnish by letter is not
prepared to consider adopting the definitions contained in the
yet ready for transmittal, I feel that what I have ready to offer on one
various campaign financing bills pending before the House District
aspect of the bill necessitates providing the information contained in
Committee.
this letter immediately.
Answer to Question 11: The Board of Elections has sufficient reg-
I refer specifically to the sample campaign budget prepared by the
ulatory authority to set a requirement for a central campaign com-
Subcommittee staff reflecting a total of $185,800 for both primary and
mittee for a candidate, filing reports with a candidate by other com-
general elections and my own testimony at the hearing on April 3, 1974,
mittees using his name, use of campaign depositories, and limitations
with attachment suggesting a total of $180,000 for same in the contest
on use of cash. The District of Columbia Government is without legal
for Mayor. By coincidence, both that staff and I independently arrived
authority to prescribe crimes or offenses except where such authority
at virtually the same estimate in good faith. However, careful analysis
is granted by Congress or where unspecified crimes or offenses are re-
today of the staff breakdown in arriving at this level of budget leaves
garded as usual and reasonable police regulations which may be neces-
me to believe that our figures are completely unrealistic.
sary for the protection of life, health, and safety of all persons. Act of
For example, in the sample budget the estimated pay for clerks
February 26, 1892 (D.C. Code, sec. 1-226). The District of Columbia
annualizes at $3,900, which is poverty-level income in this geographical
Election Act, as amended (69 Stat. 699; D.C. Code, sec. 1-1101 et
area, and it works out to $1.875 per hour, whereas the minimum legal
seq.) does not authorize the District of Columbia to prescribe the
wage rate in the District is now $2.25 per hour. Similarly, suggested
criminal conversion of political contributions for personal use, as pro-
compensation for the lone advance man and the accountant works out
posed in H.R. 13914 and H.R. 13539, 93d Congress 2d Sess. (1974).
to $5,200 per year. Such a price tag for those kinds of talent is at most
Under the terms of sec. 13 of the District of Columbia Election Act,
only half that of a realistic estimate, and maybe closer to one-third. I
however, a candidate for public office must report campaign contribu-
don't know what news reporter would work as press secretary at the
tions and expenditures (69 Stat. 704; D.C. Code, sec. 1-1113), and his
rate of $7,800 a year as suggested. After three years' experience a
failure to do SO may be punishable as a crime, under the terms of that
reporter at the Star now receives $20,384 per year, and those at the
Act. Moreover, any political worker who converts campaign funds to
Post a little more. Moreover, the premium for short-term employment
his own personal use may be charged under the general criminal laws
must be considered. Finally, no qualified campaign manager would
with embezzlement. Any more stringent campaign or elections laws
work at an annualized rate of $18,200 as suggested. An experienced
must be prescribed by Congress.
professional would charge at least twice the $18,200 per year rate sug-
Answer to Question 12: In view of the expanded responsibilities of
gested, considering the sporadic nature of such employment. My own
the Board under Home Rule, I will recommend to the Board that a
experience indicates that a good campaign manager would require at
broadly representative committee be appointed to advise and consult
least $20,000 for six months.
with the Board.
For another example, the headquarters office rental also seems
In summary, with respect to the-specific questions raised in your
vastly underestimated at going market rates locally. At $6 per foot per
letter, the city is prepared to draw fully on its existing powers to put
year, $600 per month for the "central" office would rent one room 30
into operation the machinery desired to insure an open electoral process
by 40 feet. With the suggested 10 employees in such a room, that
for the first elections under the D.C. Self-government and Govern-
works out to a rectangle 10 feet by 12 feet for each person and desk,
mental Reorganization Act.
without allowance for interior partitions or passageways between
If I can be of further assistance, please let me know.
workers; and it leaves no room at all for reception area, work tables
Sincerely yours,
or volunteers to work in the office. Again, doubling this estimate would
WALTER E. WASHINGTON,
be necessary if we are to be realistic.
Mayor-Commissioner.
While I have no information on radio advertising, the estimates
given for television and newspaper advertising seem way low when
compared with actual costs such as $1500 for a 30 second "spot" or
GOVERNMENT OF THE DISTRICT OF COLUMBIA, CITY COUNCIL,
$3800 for a full page ad which I quoted in testifying at the hearing
Hon. CHARLES C. DIGGS, Jr.,
Washington, D.C., May 29, 1974.
on April 3, 1974. Moreover, the agency fee for all such advertising is
omitted altogether.
Chairman, Committee on the District of Columbia, U.S. House of
Representatives, Washington, D.C.
Finally, the Staff's sample budget omits any fee at all for a cam-
paign consultant. Mine cost $15,000 in the first Delegate campaign
DEAR. MR. CHAIRMAN: While engaged in research this afternoon for
and would have been over twice that but for advertising commissions
preparation of the letter supplementing my testimony on May 20th
to the same firm.
which was requested for the record in the D.C. Financial Disclosure
26
27
and general elections for Mayor at today's costs in the District could
From the above, I believe a realistic total budget for both primary
ALLEN/HAMELTON/PARTNERS,
easily be double the $185,800 figure suggested in the Staff's sample in
Washington, D.C., M ay 20, 1974.
use by this Committee. Accordingly, after analyzing the Staff's com-
To: Bill Welsh
ponents and current costs, I now feel that the $90,000 expenditure ceil-
From: AHP
ings for Mayor and Chairman, representing $180,000 for six months,
The following schedule will give you an idea of what a minimal
to which I testified before this Committee on April third should be
broadcast buy for a Washington, D.C. campaign might look like.
just about doubled if the new law is to be at all realistic for the pres-
Rates based on a recent buy, not necessarily taking into account the
inflation. ent, let alone for any appreciable time in the future considering
lowest unit rate applicable to political races.
Radio-6 stations, 18 spots a' week-ROS
I appreciate this opportunity to revise my earlier testimony on this
TV-4 stations, 9 spots a week
most important aspect of the bill before you. A further letter will be
RADIO
forthcoming, Respectfully, as requested for the record, in a couple more days.
Average
Times per
JOHN A. NEVIUS,
Station
spot rate
week
Total
Chairman, City Council.
"A"
$115
12
$1,380
"B"
80
Estimated District of Columbia election costs
12
960
"C"
45
12
540
"D"
12
12
144
[Excerpts from testimony of William B. Welsh, American Federation of State, County, and
"E"
17
12
204
Municipal Employees, AFL-CIO]
"F"
30
12
360
Registered voters, as of May 3, 1974
Cost per week
3, 568
Total
Democrats
257, 986
195,904
TELEVISION, PER WEEK
Office rent:
Main office, 5 mo. at $500 per mo
Total per
$2,500.00
Station
Prime rate
8 ward offices, 5 mo. at $200 per mo. per office
Frequency
Fringe rate
Frequency
Day rate
Frequency
week
Office staff
8,000.00
Campaign manager, 5 mo. at $2,000 per mo
"A"
$1,400
3
$250
3
$75
3
$5,175
10,000.00
"B"
1, 400
3
350
3
100
3
5,550
Press director, 5 mo. at $1,500 per mo
"C"
1,000
3
300
3
100
3
4, 200
Field director, 5 mo. at $850 per mo
7,500.00
"D"
600
3
300
3
150
3
3,150
Office manager, 5 mo. at $850 per mo
4,250.00
Secretary, 5 mo. at $600 per mo
4,250.00
Total per week
18,075
Advance person, 5 mo. at $600 per mo
3,000.00
Volunteer coordinator, 5 mo. at $800 per mo
3,000.00
Office supplies:
8 ward coordinators, 5 mo. at $800 per mo. per person
4,000.00
RECAP FOR 3-WEEK CAMPAIGN
4,000.00
Main office, 5 mo. at $1,000 per mo
Spots
Amount
8 ward offices, 5 mo. at $500 per mo
5,000.00
Office phones:
2,500.00
Radio
216
$10,704
Prime TV
36
Main office, 5 mo. at $700 per mo
39,600
3,500.00
Fringe TV
36
10,800
8 ward offices, 5 mo. at $175 per mo. per office
Day TV
36
3,825
Deposits, 100 per line
7,000.00
Literature:
2,400.00
Total, 3-week campaign
64,929
175,000 bumper stickers, 1 color reverse
25,000 posters, 2 colors
5,500.00
50,000 buttons, 2 colors
1,600.00
U.S. CIVIL SERVICE COMMISSION
200,000 brochures, 2 colors
2,125.00
Phone bank (30 phones, working 28 hr. per week for 8 weeks, reaching
8,000.00
The U.S. Civil Service Commission today announced that the Dis-
25 percent of the registered voters) :
trict of Columbia has been added to the list of municipalities and
Phones, 2 mo
Operators, 8 weeks at $3 per hr
11,000.00
political subdivisions in which employees subject to the Hatch Act
Media (newspaper advertising) :
20,460.00
may be candidates and otherwise campaign for local office.
Post, full page, $5,042.88 (daily), $5,512.56 (Sunday)
21,110.88
The Commission's action permits Federal and District of Columbia
Star-News, $3,534.96
7,069.92
government employees to take an active part in campaigns and elec-
Total estimated cost
tions for the offices of Mayor, Chairman of the Council, and Member
147, 765. 80
28
29
of the Council of the District of Columbia, subject to the following
VOICE OF INFORMED COMMUNITY EXPRESSION,
restrictions:
Washington, D.C., May 29, 1974.
1. Federal and D.C. officers and employees subject to the Hatch Act
Hon. CHARLES C. DIGGS, Jr.,
must not neglect their official duties, and must not engage in non-local
Chairman, Committee on the District of Columbia, U.S. House of
partisan political activities (e.g., campaign or election of the non-vot-
Representatives, Washington, D.C.
ing Delegate to the House of Representatives).
2. The Home Rule bill provides that for the first election, which
Att: Robert W. Washington, Jr., Esq. Chief Counsel
will be this November, District and Federal employees who reside
Re: Campaign Financing for the District of Columbia
in the District may be partisan candidates for the office of Mayor and
My DEAR CHAIRMAN DIGGS: By letter dated April 4, 1974, VOICE
Member of the Council, notwithstanding the provisions of the Hatch
conveyed its recommendations as to pending legislative proposals on
Act. Subsequent to these first elections, employees may only be in-
the subject to Congressman Brock Adams, Chairman of your Govern-
dependent candidates for those offices, and may not be candidates rep-
ment Operations Sub-Committee.
resenting partisan political parties.
In view of the fact that recent hearings have been held thereon by
3. Employees may not campaign for or against partisan candidates
the full District of Columbia Committee, we respectfully request that
for the above offices, even in the first elections to be held. However,
the following comments be included in the record of such hearings,
they may campaign on behalf of, or in opposition to, independent
which we trust will be of some assistance to your deliberations upon
candidates-both in the first elections and in subsequent elections.
and drafting of the final bill with respect to this most important
4. The Commission may withdraw or suspend permission granted
to a community when in the Commission's opinion the activities re-
matter. As previously stated to the Government Operations Sub-Committee,
sulting from the exception are found to be detrimental to the public
our organization is firmly convinced that this first election of District
interest or inimical to proper enforcement of the political activity
officials in a hundred years should be the culmination of an active and
law and rules.
stimulating campaign among the competing candidates, which will
Communities granted exception by the Commission are now as
arouse the interest of the electorate, and inform it fully and effectively
follows:
as to the various issues and the positions thereon of the opposing
Maryland: Anapolis; Anne Arundel County; Berwyn Heights;
candidates.
Bethesda; Bladensburg; Bowie; Brentwood; Capitol Heights; Chev-
To achieve such a high level of campaign activity, it is essential
erly; Chevy Chase, sections 1, 2, 3, and 4; Martin's additions 1, 2, 3,
that the raising and expending of ample funds be legally permitted
and 4 to Chevy Chase; Chevy Chase View; College Park; Cottage
in order to provide the necessary wherewithal to defray the rising
City; District Heights; Edmonston; Fairmont Heights; Forest
costs of media communication and political activity.
Heights; Garrett Park; Glenarden; Glen Echo; Greenbelt; Howard
While VOICE, of course, does not advocate gimmickry or condone
ounty; Hyattsville; Kensington; Landover Hills; Montgomery
extravagance in the conduct of the prospective campaign, our organi-
County; Morningside; Mount Rainier; North Beach; North Brent-
zation does feel, most strongly, that this first experience in local self-
wood; North Chevy Chase; Northwest Park; Prince Georges County;
determination should be allowed to be conducted in such a manner as
Riverdale; Rockville; Seat Pleasant; Somerset; Takoma Park; Uni-
will assure a maximum of citizen interest and participation.
versity Park; and Washington Grove.
Recognizing that to achieve this costs money, VOICE would recom-
Virginia: Alexandria; Arlington County; Clifton; Fairfax Coun-
mend to the District Committee that it give favorable consideration
ty; Town of Fairfax; Falls Church; Herndon; Loudoun County;
to adopting a limitation upon campaign expenditures somewhere
Portsmouth; Prince William County; and Vienna.
within the following dollar range, viz.:
Other municipalities: Anchorage, Alaska; Benicia, Calif; Bremer-
Mayor, $300,000-$400,000.
ton, Wash.; Centerville, Ga.; Crane, Ind.; District of Columbia; El-
Council Chairman, $200,000-$300,000.
mer City, Wash.; Huachuca City, Ariz.; New Johnsonville, Tenn.;
At Large Council, $100,000-$150,000.
Norris, Tenn.; Port Orchard, Wash.; Shrewsbury Township, N.J.;
Ward Council, $50,000-$75,000.
Sierra Vista, Ariz.; and Warner Robins, Ga.
At Large School Board, $75,000-$100,000.
Ward School Board, $25,000-$50,000.
30
31
It is our further recommendation, the importance of which cannot
Apparently it is thought that these problems are met by having two
be overemphasized, that such aggregate limitations on campaign ex-
of the three Division members selected by the Executive Committee
penditures may be divided between the primary and general elections
of the District of Columbia Unified Bar, a group which is elected by
in such proportions as each candidate may determine, in his or her per-
members of the District of Columbia Bar. But we question whether
sonal discretion, in order to run a successful political campaign.
attorneys in general are necessarily representative of the people of the
In submitting the foregoing recommendations as to appropriate
city, any more than any other special interest group. We feel that the
limitations upon campaign expenditures, VOICE is keenly mindful
more pertinent provision might be a requirement that the members of
of its established role in the District of Columbia as a broad-based,
the Division be representative of different political parties.
bi-partisan, inter-racial, inter-religious, group of civic leaders, ap-
We also feel that the limitations on campaign expenditures as set
proximating 150 in number, who are dedicated to the goal of making
forth in Title IV are too low in view of the very high expenses which
this a model urban community in which to live.
will be incurred in conducting a campaign to reach all of the people in
To achieve such a goal for the Nation's Capital City, it is, in our
the city. Without experience in this area for any local election, we
opinion, imperative not only that top Governmental officials be elected
suggest that the funding limitations be placed at a higher level than
to office, but also that the electorate that chooses them be extensively
those proposed by the subject Bill.
involved in the democratic elective process which brings about their
As we testified in earlier hearings on campaign funding, we believe
election.
that a limitation for both the primary election and the general elec-
To this end, we urge your Committee to report out a campaign fi-
tion for a candidate for Mayor or a candidate for Delegate should be
nancing bill which will make it financially, legally, and procedurally
$300,000 and that the amount expended for either the primary or gen-
possible to achieve a fair, clean, and vigorously viable first election for
eral election be left to the discretion of the candidate and/or his polit-
the too-long disenfranchised citizens of the District of Columbia.
ical committee, but in any event do not exceed $300,000 for both
We thank you, Mr. Chairman, for the opportunity of expressing our
elections.
additional views on the subject, which, together with our previous
Continuing the same discretionary authority for a division of ex-
comments of April 4th, we ask be incorporated in and made a part of
penditures of campaign funds for both primary and general elections,
the hearing record, as previously stated.
we recommend that the permitted funding for the Chairman of the
With most cordial regards and esteem, I remain,
City Council be placed at $200,000; that campaigns for at-large posi-
Very sincerely yours,
tions on the City Council be placed at $150,000; and that a $60,000 lim-
JOHN B. DUNCAN, President.
itation be placed on campaign spending for ward representatives on
the City Council.
If these higher amounts are incorporated in the Bill, the provisions
of Title IV, Sec. 401 (a) and Sec. 401 (b) should be revised upward to
THE METROPOLITAN WASHINGTON BOARD OF TRADE,
reflect the higher campaign fund amounts available to the candidates.
Washington, D.C., May 23, 1974.
We also have difficulty with the restrictions on contributions by
Hon. CHARLES C. DIGGS, Jr.,
labor and corporations. We have been advised that only six states im-
Chairman, Committee on the District of Columbia, U.S. House of
pose restrictions similar to those proposed in this Bill. It would seem
Representatives, Washington, D.C.
more appropriate that the District of Columbia law on this matter
DEAR MR. CHAIRMAN We appreciate your courtesy in permitting us
should conform to the legislation in effect in the great majority of
the opportunity to comment on the provisions of H.R. 14754.
states.
Not having received the actual Bill until late on last Friday, we
Further, we feel that the provisions of 401 (c) limiting "individual"
were unable to have our comments prepared in time to appear per-
contributions to an aggregate of $2,000 and contributions of "persons"
sonally before your Committee on either Monday or Tuesday of this
to an aggregate of $4,000 are also much too restrictve.
week. We hope, therefore, that this statement may be considered by
Again, as we testified earlier, these limitations can be increased or
you and your Committee before mark-up time.
decreased by the duly authorized and elected representatives of the
We strongly support most of the concepts of H.R. 14754. We con-
people of this city after the elected officials take office in 1975.
sider essential to fair campaign practices and an informed electorate
In addition to the suggestions for changes in the Bill which we have
that there be full disclosure of the sources of funding of each candi-
already addressed, we would suggest that the entire Bill be reviewed.
date for political office in the District of Columbia. These disclosure
There is nothing more frustrating to an individual, committee, or can-
provisions as set forth in Title II of the Bill closely parallel the pro-
didate than to operate under a law which is ambiguous. The proposed
visions of the Federal Elections Campaign Act of 1971.
Bill presents a number of problems. I will mention only a few.
However, the provisions of Title III, establishing a Division of
1. There should be procedures established for timely interpretation
Campaign Finances, are of some concern. In this Title there is great
of the election law by the Division of Campaign Finance, and, if
latitude for abuse of investigative powers through the broad subpoena
necessary, by a court of law.
power given the Division. Nowhere does the Bill require expressly that
2. We do not believe a distinction should be made between the con-
the Division exercise its powers without regard to political affiliation;
tribution of money and material and the contribution of services with-
nowhere is the Division required to apply the law uniformly.
32
33
out compensation, as is done in the definition Sec. 102 (a) (5). Such a
distinction may encourage the development of political "machines"
THE LIBRARY OF CONGRESS,
which we consider as undersirable as excessive financial expenditure.
CONGRESSIONAL RESEARCH SERVICE,
3. We have serious question about the constitutionality of requiring
Washington, D.C., February 15, 1974.
an organization which makes political contributions to divulge the
To: The Honorable Walter Fauntroy
names of its membership, as required by the Bill, as a precondition to
From Sandra S. Osbourn, Analyst, Government and General Re-
its participation in the political processes of the District of Columbia.
search Division (Kenneth E. Gray, Division Chief).
The identification provisions of Sec. 210 also suggest constitutional
Subject Expenditures by Candidates for municipal office.
problems.
This memorandum is being provided to you you in response to
4. The use of the word "person" in Sec. 401 (b) would appear to pro-
your request for data on campaign expenditures by candidates for the
hibit contributions to a candidate by a political committee in excess of
mayor or the city council in eight cities. There is no national collection
the limitations set forth in that subsection. A comparable problem ex-
of such data, SO it was necessary to call each of the cities. Because of
ists with respect to the use of the word "person" throughout Title IV.
the variations in local reporting requirements, the data is more com-
5. Sec. 402 establishes limitations with respect to a "single campaign,"
plete for some cities than others, and was not available at all in three
a term which is not defined and which may reasonably be construed
of the cities. Atlanta has no reporting requirements, SO no official
as limiting total expenditures in either (1) a campaign for both a pri-
figures are available. Baltimore and Newark require the candidates
mary and general election or (2) a campaign for a primary election or
to report their expenditures to the Clerk of the Circuit Court and the
for a general election but not both.
City Clerk respectively, but the figures are not compiled in a readily
6. The provisions of Sec. 402 would appear to impose an unjustifi-
useable manner, and are not totalled. Spokesmen for both cities said
able restriction on a candidate's principal campaign committee where
that the only way to get the data that you requested would be an on-
committees independent of, and without the consent of, the principal
site visit nd analaysis of the reports. The following table provides
committee, expend funds in support of a candidate.
expenditure data for the remaining five cities Boston, Houston, Pitts-
7. We can also envision serious problems arising in administration
burgh, Seattle, and St. Louis.
of the law where a committee purportedly supporting a candidate or
BOSTON
candidates is arguably injuring rather than, as asserted, assisting a
1971 Mayoral Election
candidate.
Primary
White
$294, 094
8. Title IV should expressly set forth limitation problems con-
Hicks
40,523
fronted by a political committee which supports more than one candi-
Timilty
30,999
date, or a slate of candidates, in a political election.
Atkins
53,458
9. The provisions of Sec. 501 (b) appear to impose a very severe and
General :
Hicks
82,493
perhaps unconstitutional restriction-non-participation in 1974 elec-
White
251,063
tions-upon those who are politically active prior to enactment of this
1973 City Council Election :
Bill.
Primary :
10. Sec. 506 does not, and should, specify whether expenditures made
O'Neill
3,180
prior to the enactment of the Bill are to be included in the limitation
McDonough
1,230
Tannella
3, 924
amounts of Title IV.
Hicks
4,954
Until the points made in this letter are adquately dealt with, we feel
Tierney
4, 213
that the ambiquities of the proposed election law would have a dis-
Langone
4, 793
Di Cara
astrous effect, with a widespread uncertainty as to its application on
20,747
Connoly
the election process in Washington, D.C.
2, 637
General :
We will be glad to discuss our suggestions with you or with your
Tannella
9, 396
staff at your convenience.
O'Leary
7, 100
Sincerely,
McDonough
7, 755
O'Neill
CLARENCE A. ARATA.
3, 414
Di Cara
14,629
Connoly
7, 980
Hicks
4,054
EXPENDITURES BY CANDIDATES FOR MUNICIPAL OFFICES IN CITIES
Langone
8, 759
COMPARABLE TO WASHINGTON
Tierney
7, 222
Following is a Memorandum prepared by the Library of Congress,
Total
868, 618
showing recent campaign expenditures of candidates for municipal
Source : Reports to the City Clerk.
offices, in select cities of comparable size to Washington.
34
35
1973 Elections (Combined Total for Primary and General Elections) :
ST. LOUIS
HOUSTON
Mayor :
1973 Mayoral Election (Primary, General Election Totals Not Avail-
Hofheinz
able) :
712, 068
Gottlieb
Badaracco
14, 701
714, 135
City Council :
Cervantes
74, 597
District A
17, 216
Conway
566
District B
Polker
4, 595
5, 345
District C.
1973 Board of Alderman Election (Primary) :
14, 631
Ward 3
390
District D
22, 672
District E
Ward 5
595
10, 869
City Council :
Ward 7
732
Ward 9
520
At Large 1
$41, 051
At Large 2
Ward 11
200
29, 718
At Large 3
Ward 1
1, 382
17, 549
Ward 13
930
Total
Ward 15
1, 256
1, 585,254
Ward 17
550
Source Reports to the city Secretary.
Ward 21
275
Ward 23
2, 626
PITTSBURGH
Ward 25
747
1973 General Election :
Ward 27
1, 728
Mayor Flaherty (less than $150)
City Council :
Total
117, 390
Ballinger
$575
Zoller
326
Source : Reports to the Clerk of the Circuit Court.
Coyne
581
In most cases, the actual expenditures were probably higher than the
Lucchino
3, 127
figures listed above, since the totals did not reflect committee contribu-
Lagora
380
Lynch
3, 781
tions, or outstanding debts. Therefore, these figures are not definitive,
Price
1, 646
and should be used with some caution.
Stutler
169
I hope that this information will be helpful to you. If I can be of
Wach
252
any further assistance, please feel free to call me at 426-5826.
Wolfe
240
1970 population figures of cities cited
Total
11, 177
Source : Reports to Allegheny County Board of Elections.
Atlanta
496, 973
Baltimore
905, 759
Boston
641,071
SEATTLE
1973 General Election :
Houston
1, 232, 802
Mayor :
Pittsburgh
520, 117
Uhlman
St. Louis
$91, 249
622, 236
Tuai
Seattle
89, 212
530, 831
City Council :
Washington, D.C.
756, 510
No. 1 Ravel
31, 333
Board of Elections (Mrs. Rogers).
Cooley
31, 321
Mailing information.
No. 2 Larkin
16, 149
1. A brochure was sent to all D.C. residents (no envelopes).
Behrend
7, 041
Breakdown of costs for brochure
City Council :
Printing
$5, 500
No. 3 Williams
17, 693
Postage (bulk rate)
16, 000
Pritchard
791
Processing (processing was done by a mailing firm because Board of
No. 4 Benson
23, 404
Elections did not have listing of all residents)
3, 000
Ross
24, 361
Total
24, 500
Total
332, 554
Source Reports to the Fair Campaign Practices Commission.
36
37
2. A sample ballot will be sent to every registered voter next week. The ballot
is required by law and will give the precinct, ward, location of precinct, and
and that portion of the entire net income of every nonresident which
voting hours.
is subject to tax under title VIII of this article.
Breakdown of costs for ballot (no envelopes) :
*
*
*
Printing
$14,000
Postage (approximation-Board of Elections will not have exact
SEC. 6. CREDITS FOR SALES TAX PAID.-
figures until final count of registered voters)
(a) (1)
*
*
26,500
*
Total
40, 500
3. The Board of Elections has never used straight mailing in the past. Post-
SEC. 7. (a) CREDIT FOR CAMPAIGN CONTRIBUTIONS.-For the pur-
cards have been used instead.
pose of encouraging residents of the District to participate in the elec-
tion process in the District, there shall be allowed to an individual a
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
credit against the tax (if any) imposed by this article in an amount
equal to 50 per centum of any campaign contribution made to any
In compliance with clause 3 of Rule XIII of the Rules of the House
candidate for election to any office referred to in the first section of the
of Representatives, changes in existing law made by the bill, as re-
District of Columbia Election Act, but in no event shall such credit
ported, are shown as follows (existing law proposed to be omitted is
exceed the amount of $12.50, or $25 in the case of married persons
enclosed in black brackets, new matter is printed in italics, existing
filing a joint return.
law in which no change is proposed is shown in roman) :
(b) (1) A husband and wife filing separate returns for a taxable year
DISTRICT OF COLUMBIA INCOME AND FRANCHISE TAX ACT OF 1947
for which a joint return could have been made by them may claim be-
tween them only the total credit (or refund) to which they would
have been entitled under this section had a joint return been filed.
ARTICLE I
(2) No individual for whom a personal exemption was allowed on
another individual's return shall be entitled to a credit (or refund)
TABLE OF CONTENTS
under this section.
ARTICLE I -INCOME AND FRANCHISE TAX ACT
DISTRICT OF COLUMBIA ELECTION ACT
TITLE I-REPEAL OF PRIOR INCOME TAX AcT AND APPLICABILITY OF THIS ARTICLE;
GENERAL DEFINITIONS
(D.C. Code, secs. 1-1100-1-1115)
*
CREATION OF BOARD OF ELECTIONS
TITLE VI-TAX ON RESIDENTS AND NONRESIDENTS
SEC. 3: There is hereby created a Board of Elections for the District
Sec. 1. Definitions.
of Columbia, to be composed of three members appointed by the Com-
Sec. 2. Personal exemptions and credit for dependents.
missioners of the District of Columbia. The first terms of offices on
Sec. 3. Imposition and rates of tax.
Sec. 4. Optional method of computation.
the Board shall expire, as designated by the Commissioners, one at
Sec. 5. Credits against tax allowed residents.
the close of December 31 of each of the first three years which begin
Sec. 6. Credit for sales tax paid.
after the date of enactment of this Act. Subsequent terms of each
Sec. 7. Credit for campaign contributions.
such office shall be three years beginning January 1 following the ex-
*
*
*
piration of the preceding term of such office. Any person appointed
to fill a vacant office shall be appointed only for the unexpired term
ARTICLE I-INCOME AND FRANCHISE TAX ACT
of such office. Until his successor is appointed and has qualified, a
member may continue to serve even though the term of the office to
TITLE I-REPEAL OF PRIOR INCOME TAX ACT AND APPLICABILITY OF THIS
which he was appointed has expired. The said Commissioners shall
ARTICLE; GENERAL DEFINITIONS
from time to time designate the Chairman of the Board, who shall
serve in a full-time capacity.
*
*
*
*
*
TITLE VI-TAX ON RESIDENTS AND NONRESIDENTS
QUALIFICATIONS AND COMPENSATION OF MEMBERS
SEC. 1. DEFINITION.-For the purposes of this article, and unless
otherwise required by the context, the words "taxable income" mean
SEC. 4. (a) No person shall be a member of the Board unless he
the entire net income of every resident, in excess of the personal ex-
qualifies as an elector and resides in the District. No person may be
appointed to the Board unless he has resided in the District continu-
emptions and credits for dependents allowed by section 2 of this title
ously since the beginning of the three-year period ending on the day
38
39
he is appointed. Members of the Board shall hold no other paid
[(A) The name and address of each person who has made a
office or employment in the District government and shall hold no
contribution to or for such committee in one or more items of the
active office, position or employment in the Federal Government. Not
aggregate amount or value, within the calendar year, of $100 or
more than two members shall be members of the same political party.
more, together with the amount and date of such contribtuion;
(b) Each member of the Board shall be paid compensation at the
[(B) The total sum of the contributions made to or for such
rate of $75 per day, with a limit of $11,250 per annum, while perform-
committee during the calendar year and not stated under sub-
ing duties under this Act, except during 1974 such compensation shall
paragraph (A)
be paid without regard to such annual limitation. Except as provided
[(C) The total sum of all contributions made to or for such
in subsection (a) no person shall be ineligible to serve or to receive
committee during the calendar year;
compensation as a member of the Board because he occupies another
[(D) The name and address of each person to whom an expend-
office or position or because he receives compensation (including retire-
iture in one or more items of the aggregate amount or value,
ment compensation) from another source. The right to compensation
within the calendar year, of $10 or more has been made by or on
from another source otherwise secured to such a person under the laws
behalf of such committee, and the amount, date, and purpose of
of the United States shall not be abridged by the fact of his service or
such expenditure;
receipt of compensation as a member of the Board, or an employee
[(E) The total sum of all expenditures made by or on behalf
of the Board.
of such committee during the calendar year and not stated under
subparagraph (D)
[(F) The total sum of expenditures made by or on behalf of
[EXPENDITURES
such committee during the calendar year.
[(3) The statements required to be filed by paragraph (2) of this
[SEC. 13. (a) There are hereby authorized to be appropriated, out
subsection shall be cumulative during the calendar year to which they
of any money in the Treasury to the credit of the District of Columbia
relate, but where there has been no change in an item reported in a
not otherwise appropriated, such amounts as may be necessary to carry
previous statement only the amount need be carried forward.
out the purposes of this Act.
[(4) Every person (other than a political committee) who makes
(b) Subject to the penalties provided in this Act, a candidate for
an expenditure in one or more items, other than by contribution to a
elector of President and Vice President, Delegate, national commit-
political committee, aggregating $50 or more within a calendar year
teeman, national committeewoman, delegate, or alternate, in his cam-
for the purpose of influencing any general or primary election held
paign for election, shall not make expenditures in excess of $2,500.
under this Act, shall file with the Board an itemized detailed state-
[(c) No independent committee or party committee shall receive
ment of such expenditure in the same manner as required of the
contributions aggregating more than $100,000, or make expenditures
treasurer of a political committee by paragraph (2) of this subsection.
aggregating more than $100,000 for any campaign covered by this Act.
[(5) It shall be the duty of the treasurer of a political committee
[(d) No person shall, directly or indirectly, make contribution in an
to keep a detailed and exact account of-
aggregate amount in excess of $5,000 in connection with any campaign
[(1) All contributions made to or for such committee;
for election of any elector, Delegate, national committeeman, national
[(2) The name and address of every person making any such
committeewoman, delegate, or alternate.
contribution, and the date thereof;
(e) (1) Every independent committee or party committee which
[(3) All expenditures made by or on behalf of such committee;
receives or expends funds on behalf of any candidate or group of can-
and
didates in an election for any office referred to in the first section of
(4) The name and address of every person to whom any such
this Act, or in a primary election held under section 5 (b) of this Act,
expenditure is made, and the date thereof.
shall have a chairman and a treasurer and shall maintain an address in
[(6) It shall be the duty of the treasurer to obtain and keep a
the District of Columbia where notices may be sent. Each such com-
receipted bill, stating the particulars, for every expenditure by or on
mittee shall register with the Board of Elections as soon as its receipts
behalf of a political committee exceeding $10 in amount. The treasurer
or expenditures, or the sum of its receipts and expenditures total $100.
shall preserve all receipted bills and accounts required to be kept by
or within ten days after its organization, whichever first occurs.
this section for a period of at least two years from the date of the
[(2) In any election held in the District of Columbia with respect
filing of the statement containing such items.
to any office referred to in the first section of this Act, or with respect
[(7) Every person who receives a contribution for a political com-
to a primary election held under section 5(b) of this Act, each can-
mittee shall, on demand of the treasurer, and in any event within five
didate for election, and the treasurer of each independent or party
days after the receipt of such contribution, render to the treasurer a
committee, shall file with the Board of Elections on the fifth calendar
detailed account thereof, including the name and address of the person
day before, and also within thirty days after, the date on which such
making such contribution, and the date on which received.
primary or general election was held, an itemized statement, complete
[(8) Any candidate, treasurer of any independent committee, or
as of the day next preceding the date of filing, setting forth-
party committee, or other person who willfully violates this subsection
40
41
shall be fined not more than $5,000 or imprisoned for not more than
such legislation was lacking at that time. The home rule bill when it
30 days, or both.
was presented on the Floor by the Committee did not contain provi-
[(f) (1) Subsection (e) of this section shall not require-
ions for partisan elections in the District. It was only in the House-
[(A) registration under subsection (e) (1) of any independent
Senate Conference where that particular provision was reversed SO
committee or party committee which is registered as a political
that partisan elections were provided for in the bill's final enactment.
committee under section 303 of the Federal Election Campaign
I refused to sign the Conference Report on that bill because the Re-
Act of 1971,
port provided for partisan elections in the District. Because a large
[(B) filing of any statement under paragraph (2) of such sub-
number of Federal and local employees who are voters are covered
section (e) with respect to an election for Federal office by a can-
by the Hatch Act in the District, I viewed partisan elections as a de-
didate or committee required to file a report with respect to such
nial of true home rule and self-government as it had been traditionally
election under section 304 of the Federal Election Campaign Act
discussed in the Committee and debated on the Floor of the House.
of 1971, or
Moreover, this is the second time we come to the House Floor with a
[(C) the filing of any statement under paragraph (4) of such
bill that is the result of the D.C. Self-Government Act calling for par-
subsection (e) with respect to any election for Federal office by any
tisan elections. The first instance had to do with an amendment to a
person required to file a report with respect to such election under
relatively simple insurance bill that provided that the mayor and the
section 305 of the Federal Election Campaign Act of 1971.
members of the City Council be permitted to run for election without
[(2) Paragraph (5), (6), and (7) of subsection (e) of this section
having mass resignations because they were covered by the Hatch
shall not apply to any committee which is not required to register
Act. This bill in turn, largely, stems from the partisan election pro-
under subsection (e) (1) of this section.
visions in the Home Rule Act. It is true that there perhaps would be
(3) For purposes of this subsection, the terms "election" and "Fed-
some need for future regulation of campaign financing practices in
eral office" have the same meaning as such terms have under section 301
the District, even with non-partisan elections. However, the partisan
of the Federal Election Campaign Act of 1971.
election aspects of home rule, in my opinion, greatly accentuate the
[(4) This subsection shall take effect on the date on which title III
need for this type of bill, and the seriousness of certain practices which
of the Federal Election Campaign Act of 1971 takes effect.]
could occur during the forthcoming election in the District of Colum-
bia if there are not certain amendments to the existing campaign fi-
AUTHORIZATION
nance practices.
SEC. 13. There are hereby authorized to be appropriated, out of any
money in the Treasury to the credit of the District of Columbia not
PENDING FEDERAL LEGISLATION
otherwise appropriated, such sums as are necessary to carry out the
purposes of this Act.
I am mindful that the House Administration Committee is cur-
JUNE 4, 1974.
rently working on a bill that would regulate certain political cam-
paign finance practices in Federal elections. However, I believe that
ADDITIONAL VIEWS OF CONGRESSMAN ANCHER NELSEN
time and circumstances dictate that we move on this local election
bill at this time. Differing circumstances, views and facts and dif-
INTRODUCTION
ferent conclusions based thereon, as they relate to any Federal legis-
lation which may be submitted to this Body, may result in different
I generally support this bill, because there is a definite need for the
positions being taken on a bill that will apply nationwide in contrast
regulation of certain poltical campaign finance practices in the Dis-
to one that will apply within the relatively small geographic area
trict during the first elections this fall. Indeed, there is a need for
of the District of Columbia with some 250,000 registered voters.
prompt action on this bill now, inasmuch as the primary filing date
has passed, and over 120 candidates for local office are scheduled to be
LOBBYING
on the primary ballot.
I introduced an amendment before the Full Committee that now
DOES NOT SUPPORT PARTISAN ELECTIONS
comprises Title 5 of this bill. It regulates lobbying in the District of
Columbia as it may be conducted before or with the District of Colum-
I wish to make clear that while I generally support this bill, I do
bia Council. It tracks very closely with the Federal lobbying law with
not wish to have my support construed in any way as supportive of
some minor adjustments that recognize the local aspects of this bill.
partisan elections in the District of Columbia. I am not a co-sponsor
Under the Home Rule Act all acts passed by the District of Columbia
of this bill.
Council will lay over in one fashion or another to the Congress before
There are those who may say that this should have been part of
becoming law. It appears to me to be entirely rational and consistent
the home rule bill, which was brought to the Floor by the Committee
that individuals who lobby the local Council should be identified in
last fall in the First Session. However, the urgency of the need for
the same way as they are in the Congress. The same rationale for the
42
43
need for a Federal lobbying act can be said to exist for the local lobby-
the family in some instances) to the government, both Federal and
ing provisions now that the Congress has delegated certain legislative
local. Public financing of political campaigns is yet another step in
authority to the Council.
this same direction, a step which I feel would be a mistake and do not
endorse. It is particularly unwarranted, in my opinion, as it relates to
NOT IN FAVOR OF PUBLIC FINANCING OF POLITICAL CAMPAIGNS
public financings of political campaigns, because other alternatives for
fuller participation on the part of the voters and the citizens have not
I opposed the public financing of local election provisions (either
nearly begun to be fully explored or utilized.
partial or complete) contained in the bills considered in the Full
I fear that under public financing of political campaigns the un-
Committee. However, the thrust of this bill. It is my understanding,
qualified. the insincere and non-serious seeker of public office will be
is to give broader participation in the form of contributions by the
treated the same as the individual who is highly qualified, hard work-
general public to the political campaigns of individuals seeking elec-
ing, and very serious. Yet, the taxpayers would have to bear the cost
tive office. It seems to me that every effort should be made to broaden
of non-serious candidates who may only seek personal publicity. It is
this voluntary citizen participation. A provision in the bill giving a
my opinion that in the course of a general campaign as it is now, the
tax credit under the D.C. income tax laws for campaign contributions
voter-contributor makes his own decision as to which candidate he pre-
moves in this direction.
fers and which one he will support, nt only with his vote but with his
Certainly other avenues to increase the citizens' participation in
contribution. Under public financing, some committee, some bureau
political campaigns by way of financial contributions, including serv-
will be making these decisions in a manner which could very well be
ices in kind, can and should be encouraged. There is considerable effort
substantially adverse to the public good.
that can be taken along these lines that have not yet, in my opinion,
I wish to make it very plain and clear that the inclusion of Section
been fully explored. A major effort along these lines is much pref-
erable, in my opinion, than abruptly turning to public financing of
605 (a) (A) calling for the Council to study public financing of elec-
local elections. For instance, if the airwaves are considered to be in
tions is in no way an expression of my approval or endorsement of that
the public domain, as evidenced by the Federal regulation of radio
method. On the contrary, I disapprove of that method of financing
and television, then certainly some additional exploration of public
political campaigns.
ANCHER NELSEN.
service announcements urging broader public participation in elections
and some consideration of free or low cost time on radio and television
to air the political views of candidates should be closely examined in
the interest of serving the public as far as political campaigns are
concerned.
Direct public financing of elections, in my opinion, would bureauc-
ratize and institutionalize the financing of elections. They would in-
stitutionalize the financing and participation in elections by inserting
a third party-in this case the government-between the voter-
contributor and his candidate. The voter-contributor would tend to
be isolated from the decisions made with respect to those programs or
tasks undertaken by the government bureau assigned the function of
regulating and financing political campaigns. During my service with
the government in elective office, I have seen a tremendous growth in
the burdens of the government that have been shifted from the private
sector to the government. Inevitably, when those shifts have occurred,
that burden or function assumed by the government has been swal-
lowed up and in some cases smothered by policymakers and govern-
ment functionaires, who eagerly embrace procrastination, appraisal
and reappraisal, compromise, and unending legalistic rules and regu-
lations. In my opinion, public financing will lead to countless Constitu-
tional issues involving an individual's right to support a particular
candidate, as well as those involving the governmental selection, reg-
ulation, and financing of particular candidates to the possible detri-
ment of (or involving discrimination with respect to) other candidates.
My experience has led me to conclude that that government governs
best which governs least, and I deplore the rate and extent to which
we have transferred responsibility from the private sector (and even
Calendar No. 935
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-967
DISTRICT OF COLUMBIA CAMPAIGN FINANCE
REFORM ACT
JUNE 26, 1974.-Ordered to be printed
Mr. EAGLETON, from the Committee on the District of Columbia,
submitted the following
REPORT
[To accompany H.R. 15074]
The Committee on the District of Columbia, to which was referred
the bill (H.R. 15074) having considered the same, reports favorably
thereon with an amendment in the nature of a substitute and recom-
mends that the bill (as amended) do pass.
PURPOSE OF THE LEGISLATION
The purpose of this legislation (H.R. 15074) is to regulate the
conduct of campaigns within the District of Columbia for nomination
or election to the offices of Mayor, member of City Council, member of
the School Board, and member of Neighborhood Advisory Councils,
by establishing contribution and expenditure limitations applicable
to such campaigns, by establishing requirements for full reporting and
disclosure of the financing of such campaigns, by strengthening and
supplementing the capacity of the D.C. Board of Elections to admin-
ister election laws generally, and by establishing financial disclosure
requirements for candidates and public officials.
NEED FOR AND SCOPE OF LEGISLATION
On May 7, 1974, the citizens of the District of Columbia, by voting
their acceptance of the charter contained in the District of Columbia
Self-Determination and Governmental Reorganization Act (P.L. 93-
198), clearly expressed their desire to exercise a substantial measure of
self-government over their own affairs. With the acceptance of the
charter, the Congress will be relieved of a direct responsibility for the
day-to-day government of the District of Columbia.
More significantly, however, the acceptance of the charter ushers in
a new era of political reform within the District of Columbia. Un-
99-010
3
2
fortunately, self-government will not commence in the Nation's takes Capital office.
participation in the political system by citizens. Fourth, to remove a
until January 2, 1975, when the newly elected government of
large part of the corrosive influence of big money and the abuses
Currently, political campaigns are underway to elect the members
rooted in secrecy from the political campaigns and the new governing
the new Mayor-Council Form of Government. It is the impending of this
process. And fifth, to provide for disclosure of financial interests by
electoral process which gives rise to the urgent need
candidates, elected officials, and certain other officials of the District
government as a means for lessening public distrust and improving
legislation. The current District of Columbia Election Act (D.C. Code, sec. the
the political process.
1-1101 et seq.) is dangerously weak or silent when it comes under to the
The committee is well aware that there may be some who feel that
regulation of political campaigns for offices established
this bill is too stringent and that others may contend that it does not go
District of Columbia Self-Government and Governmental Reorgan-
far enough. What we are seeking through this legislation, however, is
a standard which will make democracy in the District of Columbia
ization Act.
Under the District of Columbia Elections Act, for example, (1)
more representative. This committee does not believe that Congress
there is no limit on the number of political committees which may op-
can legislate the integrity of those who seek to gain public office in the
erate in support of a candidate; (2) a political committee may re- to
District, nor should we attempt to do SO. Nonetheless, this committee
ceive contributions up to $100,000 and may make expenditures up
does seek to create laws for this first election which will more fully ex-
$100,000; (3) There is no limitation on an individual contribution to a
pose those who would attempt to abuse the electoral process and their
campaign for Mayor or Council; (4) Candidates and political com-
public trust.
mittees are required only to file financial reports once and then only of
five days before the election. Moreover, neither the D.C. Board author-
PRINCIPLE PROVISIONS OF THE BILL
Elections nor the District of Columbia government has legal
ity to establish more stringent campaign or election laws.
Title I-Short Title, Definitions:
The committee believes that regulation of the upcoming election that
This title cites the bill as the "District of Columbia Campaign Fi-
campaigns is a task of the Congress that cannot be left undone; and
nance Reform and Conflict of Interest Act" and gives new and specific
the Nation to have the integrity of the first election in the be
it is in the interest of all the citizens of the District of Columbia Nation's
definitions to candidates, political committees, contributions, expendi-
tures, and related terms.
Capital insured and that not only must this new election system
Title II-Financial Disclosures:
fair, honest, and open, but it also must be believed to be SO.
Title II of the bill is concerned with the registration of candidates
One of the greatest problems facing our Nation today is the eroding cannot
and committees and the reporting and disclosure of campaign funds.
confidence of the American people in our political system. We
The principle objective of this title is to bring forth the fullest pos-
ignore the fact that our current political campaign process tends be to
sible disclosure of campaign contributions and expenditures with em-
corrupt our principles, our leaders, and ourselves. Neither can we be-
phasis on detailed and accurate reporting on the receipt and outflow of
blind to the fact that too many of our citizens across this Nation
money, periodic and timely publication of reports before and immedi-
lieve, rightly or wrongly, that government at all levels is operated
ately after elections, and easy public access to campaign reports sub-
mainly for the benefit of big money interests who contribute enormous
mitted by candidates and committees. It is the committee's view that
sums to political campaigns.
timely and complete disclosure of contributions and expenditures will
Having taken the step toward providing a substantial delegation and of
result in prudence by candidates and political committees. The title
administrative and legislative authority to an elected Mayor the
is patterned after S. 372 which passed the Senate on July 30, 1973.
Council, the Congress now has an obligation to make certain and that
progression from a government appointed by the President con- the
Title III-Director of Campaign Finance:
firmed by the Senate to one selected by the people and responsible to
The primary purpose of this title is to guarantee vigorous non-
lic confidence in the new government. The committee hopes ex- in
people of the District is not marred by abuses which could shake and pub-
partisan and independent administration and enforcement of the D.C.
Elections Act as amended by this bill by vesting such responsibilities
pects, office they would promptly review campaign financing laws we which
However, that after the new Mayor and Council members are shall
in a director of campaign finance. In 1974, the Director shall be ap-
pointed by the Commissioner of the District with the advice and con-
enact this year and initiate, where appropriate, any changes
sent of the Senate. After the new government takes office, appointment
find necessary or desirable based on their experience in this year's
will be made by the Mayor with the approval of the Council.
campaigns. they But in 1974, the Congress must take on this responsibility.
The committee concluded, with great reluctance, that the procedures
The objectives of this bill are very simple. First, to establish cam- Dis-
contained in S. 3264 which establishes a D.C. Elections and Ethics
paign financing practices which will generate confidence among them.
Commission to administer and enforce the laws regulating this year's
trict citizens in the integrity of the officials they select to govern
elections would delay the creation of an independent enforcement unit
Second, to insure that qualified candidates will not find their access to
to effectively handle the campaigns now underway. Faced with the
the political arena seriously conditioned by their financial resources. active
urgent need to enact statutory guidelines, the committee has decided
Third, to create an electoral process which promotes broad and
S.R. 967
S.R. 967
5
4
tion in support of a candidate for member of the Board of Education
to continue the present Board of Elections with expanded functions
elected from a ward, $100, and in case of a runoff election, an addi-
and create a new office called the Director of Campaign Finance. It
tional $100; and in the case of a contribution in support of a candidate
should be noted that this office will administer the reporting and
for member of an Advisory Neighborhood Council, $25.
enforcement provisions contained in this bill. Moreover, the com-
The bill also prohibits candidates from making contributions or
mittee expects the Board to draw upon the advice and assistance of
expenditures in connection with their own campaigns from personal
the General Accounting Office in carrying out the provisions of this
funds or the personal funds of their immediate families which exceeds
bill. In this connection, the bill directs the Comptroller General to
25 percent of the total amount permitted to be spent under this bill.
temporarily assign a person to fulfill the responsibilities of the Direc-
Individuals are also limited to a maximum of $1,000 in contribu-
tor until such time as the Senate confirms the Commissioner's appoint-
tions for all the campaigns for office.
ment. Additionally, the committee believes that the procedures for es-
The bill retains the limits on independent expenditures contained in
tablishing an independent enforcement agency are too important to the
S. 3264. It is the committee's view that these limits are both necessary
electoral process to abandon completely. Consequently, the committee
and constitutional. This provision refers to money expended by a
has included a provision in this title which creates and assigns specific
person advocating the election or defeat of a candidate which is not
authority and tasks to the District of Columbia Board of Elections
inade at the request or suggestion of the candidate, his or her agent, or
and Ethics. Beginning January 2, 1975, unless otherwise amended or
committee. This provision takes into account the constitutional right of
modified by the D.C. City Council, members of the Board will be
individuals and organizations to express themselves about candidates
appointed by the Mayor with the approval of the Council. The Mayor's
separate and apart from the formal organizations prescribed by this
appointments to the Board, however, shall be made from a list of
bill. The committee has adopted the view however that unlimited
nominations furnished to him by a nominating committee established
spending by individuals and organizations will circumvent contribu-
by this bill.
tion limitations, frustrate authorized expenditure limits, and endanger
The committee wishes to assure the Senate that it will closely scru-
the integrity of the election process. In establishing the limits on un-
tinize the background and qualifications of the person appointed by
authorized expenditures as contained in this bill, the Committee be-
the Commissioner to occupy the Office of Director of Campaign Fi-
lieves it has struck a balance between the constitutional protections of
nance to insure the principle of nonpartisan independence is not
free speech and expression and the compelling government interest in
breeched.
safeguarding elections from undue influence by monied groups or in-
Title IV-Financial Limitations:
dividuals. See ACLU V. Jennings, 366 F. Supp. 1041 (1973) presently
on review by the United States Supreme Court.
It is the strong belief of the committee that the D.C. Self-Determina-
The Committee has decided to limit contributions in cash to $50 or
tion and Governmental Reorganization Act should open the door for
less. We strongly agree with the provision in S. 3264 requiring candi-
elected officials who are perceived by the majority of the citizens as
dates and political committees to report cash contributions weekly. If
accountable and responsible to them. In considering the overall ques-
secrecy is an anathema to clean politics, uncontrolled and unreported
tion of contribution and expenditure limitations, the committee was
cash contributions must be its rival.
guided by three principal concerns: (1) the need to establish a rational
This title contains a provision to prevent the laundering of cam-
relationship between thé need to discourage excessive campaign ex-
paign contributions to evade disclosure or contribution limitations by
penditures and the desire to allow enough spending SO that healthy
and open adversary campaigns can be conducted; (2) to curb the in-
other person.
prohibiting a person from making a contribution in the name of any
fluence of special interests and big spenders, and encourage the candi-
In establishing limitations on the amounts that a candidate's com-
dates and committees to seek broad public participation in financing
mittee and political committees supporting the candidate may spend
campaigns. (It is the committee's view that the contribution limita-
in an election, the committee was guided by the belief that spending
tions contained in this bill will promote the belief among District
limitations must be set high enough to allow candidates a fair chance
voters that big money is not allowed and that their contributions are
not only important, but necessary) ; and (3) to insure that the limita-
opponents. to present their views to the public and their case against their
tions established in this title are constitutional.
In the case of the candidate for Mayor, the candidate's committee,
This bill provides that an individual may contribute up to $500.00
to a candidate for Mayor during the entire campaign, which includes
him or her may not spend more than $150,000 in the aggregate for any
and all other committees supporting the candidate and reporting to
the primary and general election. In the case of a candidate for Chair-
man of the Council, the individual contribution limitation is $400; in
exceed $90,000 for one of the elections.
primary and general election. In no event, however, may the spending
the case of a contribution in support of a candidate for member of the
Similarly, in the case of a candidate for Chairman of the Council,
Council elected at Large, $400; in the case of a contribution in support
no more than $115,000 may be spent and in no event shall more than
of a candidate for member of the Board of Education elected at large
other offices.
$70,000 be spent for one of the elections. Lesser amounts are set for
or for member of the Council elected from a ward, $200, and in the case
of a runoff election, an additional $200; and in the case of a contribu-
S.R. 967
S.R. 967
6
7
Title V-Conflict of Interest:
lic witnesses and D.C. government officials, the overwhelming majority
This title declares that elective and public office is a public trust and
of whom expressed support for the objectives of S. 3264 and H.R.
that any effort to realize personal gain through official conduct is a
15074, the "District of Coltumbia Campaign Finance Reform Act"
violation of that trust.
which was passed by the House of Representatives on June 10, 1974.
It is the view of the committee that one principal means by which we
The committee decided, after a careful review of both bills and the
may prevent public distrust of those who are chosen to conduct the
testimony of witnesses, to report out H.R. 15074 with the principle pro-
affairs of the District government is to provide for disclosure of per-
visions of S. 3264 embodied in H.R. 15074 in the nature of a substitute.
sonal financial interests by candidates, elected officials, and high-rank-
ing appointees of the District government. Not only should public
COST
officials be free from the undue influence of special interest groups
and powerful favor-seeking individuals, but also the people must be-
H.R. 15074 authorizes the $750,000 authorization contained in the
lieve this to be SO. This title, in addition to requiring the disclosure
District of Columbia Self-Government and Government Reorganiza-
and reporting of financial interests, also sets forth certain procedures
tion Act to be used to carry out the provisions of this act.
to be followed by public officials in potential conflict-of-interest situ-
ations, similar to those adopted by the Senate for its own members
VOTE
and employees.
Title VI-Penalties and Enforcement. Tax Credits, Use of Surplus
H.R. 15074, as amended, was approved and ordered reported by
Campaign Funds. Study of 1974 and Report by Council, Effec-
unanimous consent of the Senate committee on June 26, 1974.
tive Dates, Amendments to District of Columbia Election Act,
CHANGES MADE IN EXISTING LAW RY THE BILL AS REPORTED
and Authorization:
This title contains provisions which: (1) establish a fine of up to
In compliance with subsection 4 of rule XXIX of the Standing
$5,000, or six month imprisonment, or both for violation of any provi-
Rules of the Senate, changes in existing law made by the bill as re-
sion in this act: (2) allow to an individual a credit against his or her
ported are shown as follows (existing law proposed to be omitted is en-
income tax in an amount equal to 50% of his or her campaign contri-
closed in black brackets; new matter is printed in italic; existing law
bution, but limits the credit to $12.50 or $25.00 in the case of a joint
in which no change is proposed is shown in roman) :
return; (3) direct that surplus or unexpended campaign funds shall
be contributed to a political party for political purposes, or used to
DISTRICT OF COLUMBIA INCOME AND FRANCHISE TAX ACT OF 1947
retire the debts of the political committee, or returned to the donors;
(4) require the Council to conduct a public review of this year's elec-
ARTICLE I
tions and the Campaign Finance Reform and Conflict of Interest Act
with a view toward making any changes in this act which they find
TABLE OF CONTENTS
necessary or desirable; (5) establish the effective date of this act as
the date of enactment; however, sets January 1, 1974 as the earliest
ARTICLE I-INCOME AND FRANCHISE TAX ACT
date from which reports of any individual or political committee of
contributions and expenditures must be made; (6) authorize appro-
TITLE I-REPEAL OF PRIOR INCOME TAX ACT AND APPLICABILITY OF THIS ARTICLE;
priations to carry out the act, increase compensation for members of
GENERAL DEFINITIONS
*
the Board to $150 per day during 1974 without regard to annual
*
*
*
limitation; (7) affirm the authority of the District of Columbia Coun-
TITLE VI-TAx ON RESIDENTS AND NONRESIDENTS
cil to legislate with respect to this act; and (8) provide that the
amounts authorized by the District of Columbia Self-Government and
Sec. 1. Definitions.
Government Reorganization Act may be used to carry out the pur-
Sec. 2. Personal exemptions and credit for dependents.
Sec. 3. Imposition and rates of tax.
poses of this act.
Sec. 4. Optional method of computation.
Sec. 5. Credits against tax allowed residents.
LEGISLATIVE BACKGROUND
Sec. 6. Credit for sales tax paid.
Sec. 7. Credit for campaign contributions.
On March 28, 1974, S. 3264, the "District of Columbia Election Fi-
*
*
*
*
*
*
*
nance and Conflict of Interest Act" was introduced by Senator Charles
McC. Mathias, of Maryland, for himself and every member of the
ARTICLE I-INCOME AND FRANCHISE Tax AcT
committee, including the chairman, Senator Eagleton, Senator Bart-
lett, Senator Domenici, Senator Inouye, Senator Stevenson, and Sen-
TITLE I-REPEAL OF PRIOR INCOME TAX ACT AND APPLICABILITY OF THIS
ator Tunney. The committee held hearings on June 13, 1974, chaired
ARTICLE; GENERAL DEFINITIONS
by Senator Mathias. Written and oral testimony was taken from pub-
*
S.R. 967
S.R. 967
8
9
TITLE VI-TAX ON RESIDENTS AND NONRESIDENTS
cept as provided in subsection (a) no person shall be ineligible to serve
SEC. 1. DEFINITION.-For the purposes of this article, and unless
or to receive compensation as a member of the Board because he oc-
otherwise required by the context, the words "taxable income" mean
cupies another office or position or because he receives compensation
the entire net income of every resident, in excess of the personal
(including retirement compensation) from another source. The right
exemptions and credits for dependents allowed by section 2 of this which title
to compensation from another source otherwise secured to such a
and that portion of the entire net income of every nonresident
person under the laws of the United States shall not be abridged by
the fact of his service or receipt of compensation as a member of
is subject to tax under title VIII of this article.
the Board, or an employee of the Board.
*
SEC. 6. CREDITS FOR SALES TAX PAID.-
(a)
(1)
*
[EXPENDITURES
*
SEC. 7. (a) CREDIT FOR CAMPAIGN CONTRIBUTIONS.-For the pur-
[SEC. 13. (a) There are hereby authorized to be appropriated, out
pose of encouraging residents of the District to participate in the elec-
of any money in the Treasury to the credit of the District of Co-
tion process in the District, there shall be allowed to an individual a
lumbia not otherwise appropriated, such amounts as may be necessary
credit against the tax (if any) imposed by this article in an amount
to carry out the purposes of this Act.
equal to 50 per centrum of any campaign contribution made to any
[(b) Subject to the penalties provided in this Act, a candidate for
candidate for election to any office referred to in the first section of the
elector of President and Vice President, Delegate, national commit-
District of Columbia Election Act, but in no event shall such credit
teeman, national committeewoman, delegate, or alternate, in his cam-
exceed the amount of $12.50, or $25 in the case of married persons
paign for election, shall not make expenditures in excess of $2,500.
[(c) No independent committee or party committee shall receive
filing a joint return.
(b) (1), A husband and wife filing separate returns for a taxable year
contributions aggregating more than $100,000, or make expenditures
for which a joint return could have been made by them may claim be-
aggregating more than $100,000 for any campaign covered by this Act.
tween them only the total credit (or refund) to which they would
[(d) No person shall, directly or indirectly, make contribution in an
have been entitled under this section had a joint return been filed.
aggregate amount in excess of $5,000 in connection with any campaign
for election of any elector, Delegate, national committeeman, national
another individual's return shall be entitled to a credit (or refund)
(2) No individual for whom a personal exemption was allowed on
committeewoman, delegate, or alternate.
[(e) (1) Every independent committee or party committee which
under this section.
receives or expends funds on behalf of any candidate or group of can-
didates in an election for any office referred to in the first section of
DISTRICT OF COLUMBIA ELECTION AcT
this Act, or in a primary election held under section 5(b) of this Act,
shall have a chairman and a treasurer and shall maintain an address in
(D.C. Code, secs. 1-1100-11115)
the District of Columbia where notices may be sent. Each such com-
mittee shall register with the Board of Elections as soon as its receipts
or expenditures, or the sum of its receipts and expenditures total $100,
QUALIFICATIONS AND COMPENSATION OF MEMBERS
or within ten days after its organization, whichever first occurs.
[(2) In any election held in the District of Columbia with respect
SEC. 4. (a) No person shall be a member of the Board unless he
to any office referred to in the first section of this Act, or with respect
qualifies as an elector and resides in the District. No person may be
to a primary election held under section 5 (b) of this Act, each can-
appointed to the Board unless he has resided in the District continu-
didate for election, and the treasurer of each independent or party
ously since the beginning of the three-year period ending on the day
committee, shall file with the Board of Elections on the fifth calendar
he is appointed. Members of the Board shall hold no other paid
day before, and also within thirty days after, the date on which such
office or employment in the District government and shall hold no
primary or general election was held, an itemized statement, complete
active office, position or employment in the Federal Government. Not
as of the day next preceding the date of filing, setting forth—
more than two members shall be members of the same political party.
[(A) The name and address of each person who has made a
Act and prior to January 1, 1975, each member of the Board,
(b) For duty performed after the date of the enactment of this
contribution to or for such committee in one or more items of the
aggregate amount or value, within the calendar year, of $100 or
for each day of duty 80 performed, shall be paid compensation at
more, together with the amount and date of such contribution;
the rate of $150 for each such day. Such compensation shall be paid
[(B) The total sum of the contributions made to or for such
without regard to any annual limitation. Each member of the Board
committee during the calendar year and not stated under sub-
shall be paid compensation at the rate of $75 per day, with a limit
paragraph (A)
of $11,250 per annum, while performing duties under this Act.' Ex-
[(C) The total sum of all contributions made to or for such
committee during the calendar year;
S.R. 967
S.R. 967
10
11
[(D) The name and address of each person to whom an expend-
didate or committee required to file a report with respect to such
iture in one or more items of the aggregate amount or value,
election under section 304 of the Federal Election Campaign Act
within the calendar year, of $10 or more has been made by or on
of 1971, or
behalf of such committee, and the amount, date, and purpose of
[(C) the filing of any statement under paragraph (4) of such
such expenditure;
subsection (e) with respect to any election for Federal office by any
[(E) The total sum of all expenditures made by or on behalf
person required to file a report with respect to such election under
of such committee during the calendar year and not stated under
section 305 of the Federal Election Campaign Act of 1971.
subparagraph (D)
((2) Paragraph (5), (6), and (7) of subsection (e) of this section
[(F) The total sum of expenditures made by or on behalf of
shall not apply to any committee which is not required to register
such committee during the calendar year.
under subsection (e) (1) of this section.
(3) The statements required to be filed by paragraph (2) of this
[(3) For purposes of this subsection, the terms "election" and "Fed-
subsection shall be cumulative during the calendar year to which they
eral office" have the same meaning as such terms have under section 301
relate, but where there has been no change in an item reported in a
of the Federal Election Campaign Act of 1971.
previous statement only the amount need be carried forward.
[(4) This subsection shall take effect on the date on which title III
[(4) Every person (other than a political committee) who makes
of the Federal Election Campaign Act of 1971 takes effect.]
an expenditure in one or more items, other than by contribution to a
political committee, aggregating $50 or more within a calendar year
AUTHORIZATION
for the purpose of influencing any general or primary election held
under this Act, shall file with the Board an itemized detailed state-
SEC. 13. There are hereby authorized to be appropriated, out of any
ment of such expenditure in the same manner as required of the
money in the Treasury to the credit of the District of Columbia not
treasurer of a political committee by paragraph (2) of this subsection.
otherwise appropriated, such sums as are necessary to carry out the
[(5) It shall be the duty of the treasurer of a political committee
purposes of this Act.
to keep a detailed and exact account of-
[(1) All contributions made to or for such committee;
((2) The name and address of every person making any such
contribution, and the date thereof;
(3) All expenditures made by or on behalf of such committee;
and
[(4) The name and address of every person to whom any such
expenditure is made, and the date thereof.
[(6) It shall be the duty of the treasurer to obtain and keep a
receipted bill, stating the particulars, for every expenditure by or on
behalf of a political committee exceeding $10 in amount. The treasurer
shall preserve all receipted bills and accounts required to be kept by
this section for a period of at least two years from the date of the
filing of the statement containing such items.
[(7) Every person who receives a contribution for a political com-
mittee shall, on demand of the treasurer, and in any event within five
days after the receipt of such contribution, render to the treasurer a
detailed account thereof, including the name and address of the person
making such contribution, and the date on which received.
[(8) Any candidate, treasurer of any independent committee, or
party committee, or other person who willfully violates this subsection
shall be fined not more than $5,000 or imprisoned for not more than
30 days, or both.
[(f) (1) Subsection (e) of this section shall not require-
[(A) registration under subsection (e) (1) of any independent
committee or party committee which is registered as a political
committee under section 303 of the Federal Election Campaign
Act of 1971.
[(B) filing of any statement under paragraph (2) of such sub-
section (e) with respect to an election for Federal office by a can-
S.R. 967
S.R. 967
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1225
DISTRICT OF COLUMBIA CAMPAIGN FINANCE REFORM
AND CONFLICT OF INTEREST ACT
JULY 25, 1974.-Ordered to be printed
Mr. DIGGS, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 15074]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 15074) to
regulate certain political campaign finance practices in the District
of Columbia, and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the amendment of
the Senate and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following:
TITLE I-SHORT TITLE, DEFINITIONS
Sec. 101. Short title.
FORD
Sec. 102 Definitions.
TITLE II-FINANCIAL DISCLOSURES
LIBRARY
Sec. 201. Organization of political committees.
Sec. 202. Principal campaign committee.
Sec. 203. Designation of campaign depository.
Sec. 204. Registration of political committees; statements.
Sec. 205. Registration of candidates.
Sec. 206. Reports by political committees and candidates.
Sec. 207. Reports by others than political committees.
Sec. 208. Formal requirements respecting reports and statements.
Sec. 209. Exemption for candidates who anticipate spending less than $250.
Sec. 210. Identification of campaign literature.
Sec. 211. Effect on liability.
TITLE III-DIRECTOR OF CAMPAIGN FINANCE
Sec. 301. Establishment of the Office of Director.
Sec. 302. Powers of the Director.
Sec. 303. Duties of the Director.
Sec. 304 General Accounting Office to assist Board and Director.
Sec. 305. Nominating committee.
Sec. 306. District of Columbia Board of Elections and Ethics.
(1)
3
2
election, or election, to office, or (3) reason to know, or knows, that any
TITLE IV-FINANCE LIMITATIONS
other person has received contributions or made expenditures for that
Sec. 401. General limitations.
purpose, and has not notified that person in writing to cease receiving
Sec. 402. Limitation on expenditures.
contributions or making expenditures for that purpose. A person who
TITLE V-LOBBYING
is deemed to be a candidate for the purposes of this Act shall not
be deemed, solely by reason of that status, to be a candidate for the
Sec. 501. Definitions.
Sec. 502. Detailed accounts of contributions; retention of recepited bills of
purposes of any other Federal Law.
expenditures.
(c) The term "office" means the office of Mayor of the District of
Sec. 503. Receipts for contributions.
Columbia, Chairman or member of the Council of the District of Co-
Sec. 504. Statements of accounts filed with Director.
lumbia, member of the Board of Education of the District of Colum-
Sec. 505. Preservation of statements.
bia, or an official of a political party.
Sec. 506. Persons to whom title is applicable.
Sec. 507. Registration of lobbyists with Director; compilation of information.
(d) The term "official of a political party" means-
Sec. 508. Reports and statements under oath.
(1) national committeemen and national committeewomen;
Sec. 509. Penalties and prohibitions.
(2) delegates to conventions of political parties nominating can-
Sec. 510. Exemptions.
didates for the Presidency and Vice Presidency of the United
TITLE VI-CONFLICT OF INTEREST AND DISCLOSURE
States;
(3) alternates to the officials referred to in clauses (1) and (2)
Sec. 601. Conflict of interest.
above, where permitted by political party rules; and
Sec. 602. Disclosure of financial interest.
(4) such members and officials of local committees of political
TITLE VII-PENALTIES AND ENFORCEMENT TAX CREDITS, USE OF
parties as may be designated by the duly authorized local com-
SURPLUS CAMPAIGN FUNDS, VOTERS' INFORMATION PAMPHLETS,
mittes of such parties for election, by public ballot, at large or by
STUDY OF 1974 AND REPORT BY COUNCIL, EFFECTIVE DATES,
ward in the District of Columbia.
AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT, AND
(e) The term "political committee" means any committee (includ-
AUTHORIZATION
ing a principal campaign committee), club, association, organization.
or other group of individuals organized for the purpose of, or engaged
Sec. 701. Penalties and enforcement.
Sec. 702. Tax credit for campaign contributions.
in, promoting or opposing a political party or the nomination or elec-
Sec. 703. Use of surplus campaign funds.
tion of an individual to office.
Sec. 704. A study of 1974 election and report by Council.
(f) The term "contribution" means-
Sec. 705. Effective dates.
(1) a gift, subscription (including any assessment, fee, or mem-
Sec. 706. Amendments to District of Columbia Election Act.
Sec. 707. Authority of Council.
bership dues), loan, advance, or deposit of money or anything
Sec. 708. Authorization of appropriation.
of value, made for the purpose of financing, directly or indirectly,
the election campaign of a candidate or any operations of a politi-
TITLE I-SHORT TITLE. DEFINITIONS
cal committee;
SHORT TITLE
(2) a contract, promise, or agreement, whether or not legally
enforceable, to make a contribution for any such purpose;
SEC. 101. This Act may be cited as the "District of Columbia Cam-
(3) a transfer of funds between political committees; or
paign Finance Reform and Conflict of Interest Act."
(4) the payment, by any person other than a candidate or politi-
cal committee, of compensation for the personal services of an-
DEFINITIONS
other person which are rendered to such candidate or committee
SEC. 102. When used in this Act, unless otherwise provided-
without charge, or for less than reasonable value, for any such
(a) The term "election" means a primary, runoff, general, or special
purpose or the furnishing of goods, advertising, or services to a
election held in the District of Columbia for the purpose of nominating
candidate's campaign without charge, or at a rate which is less
an individual to be a candidate for election to office or for the purpose
than the rate normally charged for such services.
of electing a candidate to office, and includes a convention or caucus of
Notwithstanding the foregoing, such term shall not be construed to
a political party held for the purpose of nominating such a candidate.
include (A) services provided without compensation, by individuals
(b) The term "candidate" means an individual who seeks nomina-
volunteering a portion or all of their time on behalf of a candidate or
tion for election, or election, to office, whether or not such individual
political committee, (B) personal services provided without compen-
is nominated or elected, and, for purposes of this paragraph, an indi-
sation by individuals volunteering a portion or all of their time to
vidual shall be deemed to seek nomination for election, or election, if
a candidate or political committee, (C) communications by an organ-
he has (1) obtained or authorized any other person to obtain nominat-
ization, other than a political party, solely to its members and their
ing petitions to qualify himself for nomination for election, or elec-
families on any subject, (D) communications (including advertise-
tion, to office, (2) received contributions or made expenditures, or has
ments) to any person on any subject by any organization which is
given his consent for any other person to receive contributions or
organized solely as an issue-oriented organization, which communica-
make expenditures, with a view to bringing about his nomination for
4
5
tions neither endorse nor oppose any candidate for office, or (E) nor-
(c) Except for accounts of expenditures made out of the petty cash
mal billing credit for a period not exceeding thirty days.
fund provided for under section 201 (b), the treasurer of a political
(g) The term "expenditure" means-
committee, and each candidate, shall keep a detailed and exact account
(1) a purchase, payment, distribution, loan, advance, deposit,
of-
or gift of money or anything of value, made for the purpose of
(1) all contributions made to or for such political committee or
financing, directly or indirectly, the election campaign of a can-
candidate;
didate or any operations of a political committee;
(2) the full name and mailing address (including the occupa-
(2) a contract, promise, or agreement, whether or not legally
tion and the principal place of business, if any) of every person
enforceable, to make an expenditure;
making a contribution of $10 or more, and the date and amount
(3) a transfer of funds between political committees; and
thereof;
(4) notwithstanding the foregoing provisions of this para-
(3) all expenditures made by or on behalf of such committee or
graph, such term shall not be construed to include the incidental
candidate; and
expenses (as defined by the Board) made by or on behalf of in-
(4) the full name and mailing address (including the occupa-
dividuals in the course of volunteering their time on behalf of a
tion and the principal place of business, if any) of every person to
candidate or political committee.
whom any expenditure is made, the date and amount thereof and
(h) The term "person" means an individual, partnership, com-
the name and address of, and office sought by, each candidate on
mittee, association, corporation, labor organization, and any other
whose behalf such expenditure was made.
organization or group of persons.
(d) the treasurer or candidate shall obtain and preserve such
(i) The term "Director" means the Director of Campaign Finance
receipted bills and records as may be required by the Board.
of the District of Columbia Board of Elections and Ethics created by
(e) Each political committee and candidate shall include on the
title III.
face or front page of all literature and advertisements soliciting funds
(j) The term "political party" means an association, committee, or
the following notice: "A copy of our report is filed with the Director
organization which nominates a candidate for election to any office and
of Campaign Finance of the District of Columbia Board of Elections
qualifies under the District of Columbia Election Act (D.C. Code,
and Ethics.".
sec. 1-1101 et seq.), to have the names of its nominees appear on the
PRINCIPAL CAMPAIGN COMMITTEE
election ballot as the candidate of that association, committee, or
SEC. 202. (a) Each candidate for office shall designate in writing
organization.
one political committee as his principal campaign committee. The prin-
(k) The term "Board" means the District of Columbia Board of
cipal campaign committee shall receive all reports made by any other
Elections and Ethics established under the District of Columbia Elec-
tion Act (D.C. Code, sec. 1-1101 et seq.) and redesignated by sec-
political committee accepting contributions or making expenditures
tion 306.
for the purpose of influencing the nomination for election, or election,
of the candidate who designated it as his principal campaign commit-
TITLE II-FINANCIAL DISCLOSURES
tee. The principal committee may require additional reports to be
made to it by any such political committee and may designate the
ORGANIZATION OF POLITICAL COMMITTEES
time and number of all reports. No political committee may be desig-
nated as the principal campaign committee of more than one candi-
SEC. 201. (a) Every political committee shall have a chairman and
date, except a principal campaign committee supporting the nomina-
a treasurer. No contribution and no expenditure shall be accepted or
tion or election of a candidate as an official of a political party may
made by or on behalf of a political committee at a time when there is
support the nomination or election of more than one such candidate,
a vacancy in the office of treasurer thereof and no other person has been
but may not support the nomination or election of a candidate for any
designated and has agreed to perform the functions of treasurer. No
public office.
expenditure shall be made for or on behalf of a political committee
(b) Each statement (including the statement of organization re-
without the authorization of its chairman or treasurer, or their desig-
quired under section 204) or report that a political committee is re-
nated agents.
quired to file with or furnish to the Director under the provisions of
(b) Every person who receives a contribution of $10 or more for or
this Act shall also be furnished, if that political committee is not a
on behalf of a political committee shall, on demand of the treasurer,
principal campaign committee, to the campaign committee for the can-
and in any event within five days after receipt of such contribution,
didate on whose behalf that political committee is accepting or mak-
submit to the treasurer of such committee a detailed account thereof,
ing, or intends to accept or make, contributions or expenditures.
including the amount, the name and address (including the occupation
(c) The treasurer of each political committee which is a principal
and the principal place of business, if any) of the person making such
campaign committee, and each candidate, shall receive all reports and
contribution, and the date on which such contribution was received.
statements filed with or furnished to it or him by other political com-
All funds of a political committee shall be segregated from, and may
mittees, consolidate, and furnish the reports and statements to the Di-
not be commingled with, any personal funds of officers, members, or
rector, together with the reports and statements of the principal cam-
associates of such committee.
6
7
paign committee of which he is treasurer or which was designated by
number of each account and safety deposit box used by that com-
him, in accordance with the provisions of this title and regulations
mittee at the depository, and the identification of each individual
prescribed by the Board.
authorized to make withdrawals or payments out of each such
account or box; and
DESIGNATION OF CAMPAIGN DEPOSITORY
(10) such other information as shall be required by the Director.
SEC. 203. (a) Each political committee, and each candidate accept-
(c) Any change in information previously submitted in a statement
ing contributions or making expenditures, shall designate, in the
of organization shall be reported to the Director within the ten-day
registration statement required under section 204 or 205, one national
period following the change.
bank located in the District of Columbia as the campaign depository
(d) Any political committee which, after having filed one or more
of that political committee or candidate. Each such committee or can-
statements of organization, disbands or determines it will no longer
didate shall maintain a checking account at such depository and shall
receive contributions or make expenditures during the calendar year
deposit any contributions received by the committee or candidate into
shall 80 notify the Director.
that account. No expenditures may be made by such committee or
candidate except by check drawn payable to the person to whom the
REGISTRATION OF CANDIDATES
expenditure is being made on that account, other than petty cash ex-
SEC. 205. (a) Each individual shall, within five days of becoming
penditures as provided in subsection (b).
a candidate, or within five days of the day on which he, or any person
(b) A political committee or candidate may maintain a petty cash
authorized by him (pursuant to section 401 (d)) to do so, has received
fund out of which may be made expenditures not in excess of $50 to
a contribution or made an expenditure in connection with his campaign
any person in connection with a single purchase or transaction. A rec-
or for the purposes of preparing to undertake his campaign, file with
ord of petty cash recipts and disbursements shall be kept in accordance
the Director a registration statement in such form as the Director may
with requirements established by the Board and such statements and
prescribe.
reports thereof shall be furnished to the Director as it may require.
(b) In addition, candidates shall provide the Director the name and
Payments may be made into the petty cash fund only by check drawn
address of the campaign depository designated by that candidate, to-
on the checking account maintained at the campaign depository of
gether with the title and number of each account and safety deposit
such political committee or candidate.
box used by that candidate at the depository, and the identification of
each individual authorized to make withdrawals or payments out of
REGISTRATION OF POLITICAL COMMITTEES; STATEMENTS
such account or box, and such other information as shall be required
SEC. 204. (α) Each political committee shall file with the Director
by the Director.
a statement of organization within ten days after its organization. Each
such committee in existence at the date of enactment of this Act shall
REPORTS BY POLITICAL COMMITTEES AND CANDIDATES
file a statement of organization with the Director at such time as the
SEC. 206. (a) The treasurer of each political committee supporting
Director may prescribe-
a candidate, and each candidate. required to register under this Act,
(b) The statement of organization shall include-
shall file with the Director, and with the applicable principal cam-
(1) the name and address of the political committee;
paign committee, reports of receipts and expenditures on forms to be
(2) the names, addresses, and relationships of affiliated or con-
prescribed or approved by the Director. Except for the first such
nected organizations;
report which shall be filed on the twenty-first day after the date
(3) the area, scope, or jurisdiction of the political committee;
of enactment of this Act, such reports shall be filed on the 10th
(4) the name, address, and position of the custodian of books
day of March, June, August, October, and December in each year dur-
and accounts;
ing which there is held an election for the office such candidate is seek-
(5) the name, address, and position of other principal officers,
ing, and on the fifteenth and fifth days next preceding the date on
including officers and members of the finance committee, if any;
which such election is held, and also by the 31st day of January of each
(6) the name. address, office sought, and party affiliation of
year. In addition such reports shall be filed on the 31st day of July of
(A) each candidate whom the committee is supporting, and (B)
each year in which there is no such election. Such reports shall be com-
any other individual, if any, whom the committee is supporting
plete as of such date as the Director may prescribe, which shall not be
for nomination for election or election, to any public office what-
more than five days before the date of filing, except that any contribu-
ever; or, if the committee is supporting the entire ticket of any
tion of $200 or more received after the closing date prescribed by the
party, the name of the party;
Director for the last report required to be filed prior to the election shall
(7) a statement whether the political committee is a continuing
be reported within twenty-four hours after its receipt.
one;
(b) Each report under this section shall disclose-
(8) the disposition of residual funds which will be made in the
(1) the amount of cash on hand at the beginning of the report-
event of dissolution;
ing period;
(9) the name and address of the bank designated by the com-
(2) the full name and mailing address (including the occupation
mittee as the campaign depository, together with the title and
and the principal place of business, if any) of each person who
8
9
has made one or more contributions to or for such committee or
(d) Each treasurer of a political committee, each candidate for
candidate (including the purchase of tickets for events such as
election to office, and each treasurer appointed by a candidate, shall file
dinners, luncheons, rallies, and similar fundraising events) within
with the Director weekly reports of cash contributions on forms to be
the calendar year in an aggregate amount or value in excess of
prescribed or approved by the Director.
$50 or more, together with the amount and date of such contribu-
tions;
REPORTS BY OTHERS THAN POLITICAL COMMITTEES
(3) the total sum of individual contributions made to or for
Sec. 207. Every person (other than a political committee or candi-
such committee or candidate during the reporting period and not
didate) who makes contributions or expenditures, other than by con-
reported under paragraph (2) ;
tribution to a political committee or candidate, in an aggregate amount
(4) the name and address of each political committee or candi-
of $50 or more within a calendar year shall file with the Director a
date from which the reporting committee or the candidate re-
statement containing the information required by section 206. State-
ceived, or to which that committee or candidate made, any trans-
ments required by this section shall be filed on the dates on which
fer of funds, together with the amounts and dates of all transfers;
reports by political committees are filed, but need not be cumulative.
(5) each loan to or from any person within the calendar year
in an aggregate amount or values of $50 or more, together with
FORMAL REQUIREMENTS RESPECTING REPORTS AND STATEMENTS
the full names and mailing addresses (including the occupation
and the principal place of business, if any) of the lender and
SEC. 208. (a) A report or statement required by this title to be filed
endorsers, if any, and the date and amount of such loans;
by a treasurer of a political committee, a candidate, or by any other
(6) the net amount of proceeds from (A) the sale of tickets
person, shall be verified by the oath or affirmation of the person filing
to each dinner, luncheon, rally, and other fundraising events
such report or statement, taken before any officer authorized to admin-
ister oaths.
organized by such committee; (B) mass collections made at such
events; and (σ) sales by such committee of items such as political
(b) A copy of a report or statement shall be preserved by the person
campaign pins, buttons, badges, flags, emblems, hats, banners,
filing it for a period to be designated by the Board in a published
literature, and similar materials;
regulation.
(7) each contribution, rebate, refund, or other receipt of $50
(c) The Board shall, by published regulations of general applicabil-
or more not otherwise listed under paragraphs (2) through (6),
ity, prescribe the manner in which contributions and expenditures in
(8) the total sum of all receipts by or for such committee or
the nature of debts and other contracts, agreements, and promises to
candidate during the reporting period;
make contributions or expenditures shall be reported. Such regulations
(9) the full name and mailing address (including the occupation
shall provide that they be reported in separate schedules. In determin-
and the principal place of business, if any) of each person to
ing aggregate amounts of contributions and expenditures, amounts
whom expenditures have been made by such committee or on
reported as provided in such regulations shall not be considered until
behalf of such committee or candidate within the calendar year
actual payment is made.
in an aggregate amount or value of $10 or more, the amount,
EXEMPTION FOR CANDIDATES WHO ANTICIPATE SPENDING LESS THAN $250
date, and purpose of each such expenditure and the name and
address of, and office sought by, each candidate on whose behalf
SEC. 209. Except for the provisions of subsections (c) and (d) of
such expenditure was made;
section 201, and subsection (a) of section 205, the provisions of this
(10) the total sum of expenditures made by such committee
title shall not apply to any candidate who anticipates spending or
or candidate during the calendar year;
spends less than $250 in any one election and who has not designated a
(11) the amount and nature of debts and obligations owed by
principal campaign committee. On the fifteenth day prior to the date
or to the committee, in such form as the Director may prescribe
of the election in which such candidate is entered, and on the thirtieth
and a continuous reporting of its debts and obligations after the
day after the date of such election, such candidate shall certify to the
election at such periods as the Director may require until such
Director that he has not spent more than $250 in such election.
debts and obligations are extinguished; and
(12) such other information as may be required by the
IDENTIFICATION OF CAMPAIGN LITERATURE
Director.
SEC. 210. All newspaper or magazine advertising, posters, circulars,
(c) The reports to be filed under subsection (a) shall be cumulative
billboards, handbills, bumper stickers, sample ballots, and other
during the calendar year to which they relate, but where there has been
printed matter with reference to or intended for the support or defeat
no change in an item reported in a previous report during such year,
of a candidate or group of candidates for nomination or election to any
only the unchanged amount need be carried forward. If no con-
public office shall be identified by the words "paid for by" followed
tributions or expenditures have been accepted or expended during a
by the name and address of the payer or the committee or other person
calendar year, the treasurer of the political committee or candidate
and its treasurer on whose behalf the material appears.
shall file a statement to that effect.
10
11
EFFECT ON LIABILITY
the administration and enforcement of this Act; and such sub-
mission shall be made within such reasonable period and under
SEC. 211. Nothing in this title shall be construed as creating or
oath or otherwise as the Director may determine;
limiting in any way the liability of any person under existing law for
(2) to administer oaths;
any financial obligation incurred by a political committee or
candidate.
(3) to require by subpena the attendance and testimony of
witnesses and the production of all documentary evidence relating
TITLE III-DIRECTOR OF CAMPAIGN FINANCE
to the execution of its duties;
(4) in any proceeding or investigation to order testimony to
ESTABLISHMENT OF THE OFFICE OF DIRECTOR
be taken by deposition before any person who is designated by
the Director and has the power to administer oaths and, in such
SEC. 301. (a) There is established within the District of Columbia
instances, to compel testimony and the production of evidence in
Board of Elections and Ethics the office of Director of Campaign
the same manner as authorized under paragraph (3) of this
Finance (hereinafter in this Act referred to as the "Director"). The
subsection;
Commissioner of the District of Columbia shall appoint, by and with
(5) to pay witnesses the same fees and mileage as are paid in
the advice and consent of the Senate, the Director, except that on and
like circumstances in the Superior Court of the District of Co-
after January 2, 1975, any vacancy in the office of Director shall be
lumbia; and
filled by appointment by the Mayor, with the advice and consent of
(6) to accept gifts and voluntary and uncompensated services.
the Council. Such appointments shall be made without regard to the
Subpenas issued under this section shall be issued by the Director upon
provisions of title 5 of the United States Code, governing appoint-
the approval of the Board.
ments in the competitive service. The Director shall be entitled to
(b) The Superior Court of the District of Columbia may, upon peti-
receive compensation at the maximum rate as may be established from
tion by the Board, in case of refusal to obey a subpena or order of the
time to time for grade 16 of the General Schedule in section 5332 of
Board issued under subsection (a) of this section, issue an order re-
title 5 of the United States Code, and shall be responsible for the ad-
quiring compliance therewith; and any failure to obey the order of
ministrative operations of the Board pertaining to this Act and shall
the court may be punished by the court as a contempt thereof.
perform such other duties as may be delegated or assigned to him from
time to time by regulations or orders of the Board. However, the
DUTIES OF THE DIRECTOR
Board shall not delegate to the Director the making of regulations
SEC. 303. The Director shall—
regarding elections.
(b) The Board may appoint a General Counsel without regard to
(1) develop and furnish (upon request) prescribed forms for
the provisions of title 5 of the United States Code, governing appoint-
the making of the reports and statements required to be filed with
him under this Act;
ments in the competitive service, to serve at the pleasure of the Board.
The General Counsel shall be entitled to receive compensation at the
(2) develop a filing, coding, and cross-indewing system con-
sonant with the purposes of this Act;
same rate as the Director of the Board and shall be responsible solely
(3) make the reports and statements filed with him available
to the Board. The General Counsel shall perform such duties as may
for public inspection and copying, commencing as soon as prac-
be delegated or assigned to him from time to time by regulation or
ticable but not later than the end of the second day following the
order of the Board.
day during which it was received, and to permit and facilitate
(c) In any appropriate case where the Board upon its own motion
copying of any such report or statement by hand and by duplicat-
or upon recommendation of the Director makes a finding of an appar-
ing machine, as requested by any person, at reasonable cost to
ent violation of this Act, it shall refer such case to the United States
such person, except any information copied from such reports and
Attorney for the District of Columbia for prosecution, and shall make
statements shall not be sold or utilized by any person for the pur-
public the fact of such referral and the basis for such finding. In
pose of soliciting contributions or for any commercial purpose;
addition, the Board, through its General Counsel, shall initiate, main-
(4) preserve such reports and statements for a period of ten
tain, defend, or appeal any civil action (in the name of the Board)
years from date of receipt;
relating to the enforcement of the provisions of this Act. The Board
(5) compile and maintain a current list of all statements or
may, through its General Counsel, petition the courts of the District of
parts of statements on file pertaining to each candidate;
Columbia for declaratory or injunctive relief concerning any action
(6) prepare and publish such other reports as he may deem ap-
covered by the provisions of this Act.
propriate;
POWERS OF THE DIRECTOR
(7) assure dissemination of statistics, summaries, and reports
prepared under this title;
SEC. 302. (a) The Director, under regulations of general applica-
(8) make from time to time audits and field investigations with
bility approved by the Board, shall have the power-
respect to reports and statements filed under the provisions of
(1) to require any person to submit in writing such reports and
this title, and with respect to alleged failures to file any report or
answers to questions as the Director may prescribe relating to
statement required under the provisions of this title; and
(9) perform such other duties as the Board may require.
12
13
GENERAL ACCOUNTING OFFICE TO ASSIST BOARD AND DIRECTOR
17 of the General Schedule under section 5332 of title 5, United States
Code.
SEC. 304. The Board and Director may, in the performance of its
(f) (1) Except as otherwise provided in subsection (a) of this sec-
functions under this Act, request the assistance of the Comptroller
tion, the Committee shall act only at meetings called by the Chairman
General of the United States, including such investigations and audits
or a majority of the members thereof and only after notice has been
as the Board and Director may determine necessary, and the Comp-
given of such meeting to all members of the Committee.
troller General shall provide such assistance with or without reim-
(2) The Committee shall choose annually from among its members
bursement, as the Board and Director and the Comptroller General
a Chairman and such other officers as it deems necessary. The Commit-
shall agree.
tee may adopt such rules of procedure as may be necessary to govern
NOMINATING COMMITTEE
the business of the Committee.
SEC. 305. (a) Effective January 2, 1975, there is established within
(3) Each agency of the government of the District of Columbia shall
the Government of the District of Columbia a committee to be known
furnish to the Committee, upon request, such records, information,
as the "District of Columbia Board of Elections and Ethics Nominat-
services, and such other assistance and facilities as may be necessary to
ing Committee" (hereinafter in this Act referred to as the "Com-
enable the Committee to perform its function properly. Any informa-
mittee"). The Committee shall have the function of nominating in-
tion furnished to the Committee designated "confidential" by the per-
dividuals for appointment as members of the District of Columbia
son furnishing it to the Committee shall be treated by the Committee
Board of Elections and Ethics for any and all vacancies occurring
as privileged and confidential.
on such Board on or after the date on which a majority of the mem-
(g) (1) In the event of any such vacancy in the District of Columbia
bers first appointed pursuant to this section hold their first meeting
Board of Elections and Ethics, the Committee shall, within thirty
as members of the Committee. Such nominations shall be made by the
days after such vacancy occurs, submit a list of three persons as nomi-
Committee in accordance with the provisions of this section. The Com-
nees for appointment by the ayor to fill the vacancy. If more than one
mittee shall consist of five members. Within ten days following the
such vacancy exists at the same time, the Committee shall submit a
date on which a majority of the members are first appointed pursuant
separate list of nominees for appointment to fill each such vacancy,
to this section, such members 80 appointed shall hold their first meet-
and no individual's name shall appear on more than one such list.
ing as members of the Committee.
In filling such vacancy, the Mayor may appoint more than one indi-
(b) (1) Two members of the Committee shall be appointed by the
vidual from any list currently before the Mayor. In any case in which,
Mayor, at least one of whom shall be a lawyer.
after the expiration of the thirty-day period following the date on
(2) Three members of the Committee shall be appointed by the
which a majority of the members of the Committee first meet as pro-
Chairman of the Council of the District of Columbia, with the ap-
vided in subsection (a), a vacancy is scheduled to occur, by reason
proval of the Council.
of the expiration of a term of office, the Committee's list of nominees
(c) embers of the Committee shall serve for terms of five years,
for appointment to fill that vacancy shall be submitted to the Mayor
except that of the members first appointed pursuant to subsection (b)
not less than thirty days prior to the expiration of that term.
(1), one shall serve for one year and one for five years, as designated
(2) If the Mayor fails to submit for Council approval the name
at the time of appointment, and members appointed pursuant to sub-
of one of the individuals on a list submitted to the M ayor under this
section (b) (2), one shall serve for two years, one for three years, and
section within thirty days after receiving such list, the Committee shall
one for four years, as designated at the time of appointment.
appoint, with the approval of the Council, an individual named on the
(d) (1) No individual may be appointed as a member of the Commit-
list to fill the vacancy for which such list of nominees was prepared.
tee unless he or she-
(3) Any individual whose name is submitted by the Committee as
(A) is a citizen of the United States, and
a nominee for appointment to the District of Columbia Board of
(B) is a resident of the District of Columbia and has maintained
Elections and Ethics may request that the nomination of such indi-
his or her domicile within the District for at least one year imme-
vidual be withdrawn. If any such individual requests that his or her
diately preceding the date of his or her appointment, and
nomination be withdrawn, dies, or becomes disqualified to serve as a
(C) is not a member of the Council of the District of Columbia
member of the Board, the Committee shall promptly nominate an in-
or an officer or employee of the Government of the District of
dividual to replace the individual originally nominated on the list
Columbia (including the judicial branch).
submitted to the Mayor.
(2) Any vacancy in the membership of the Committee shall be filled
(h) Members of the Committee shall be appointed as soon as prac-
in the same manner in which the original appointment was made. Any
ticable, but in no event later than June 30, 1975.
individual appointed to fill a vacancy, occurring other than upon the
expiration of a term, shall serve only for the remainder of the term
DISTRICT OF COLUMBIA BOARD OF ELECTIONS AND ETHICS
of such individual's predecessor.
(e) Members of the Committee shall be paid for each day spent
Sec. 306. (a) On and after the date of the enactment of this Act, the
performing their duties as members of the Committee at a rate which
Board of Elections of the District of Columbia established under the
is equal to the daily equivalent of the rate provided by step 1 of grade
District of Columbia Election Act (D.C. Code, sec. 1-1101 et seq.),
shall be known as the "District of Columbia Board of Elections and
14
15
Ethics" and shall have the powers, duties, and functions as provided
election to public office, including both the primary and general or
in such Act, in any other law in effect on the date immediately pre-
special elections, exceeds-
ceding the date of the enactment of this Act, and in this Act. Any
(1) in the case of a contribution in support of a candidate for
reference in any law or regulation to the Board of Elections for the
Mayor, $1,000;
District of Columbia or the District of Columbia Board of Elections
(2) in the case of a contribution in support of a candidate for
shall, on and after the date of the enactment of this Act, be held and
Chairman of the Council, $750;
considered to refer to the District of Columbia Board of Elections
(3) in the case of a contribution in support of a candidate for
and Ethics.
member of the Council elected at large, $500;
(b) (1) Any person who violates any provision of this Act or of
(4) in the case of a contribution in support of a candidate for
the District of Columbia Election Act may be assessed a civil penalty
member of the Board of Education elected at large or for mem-
by the District of Columbia Board of Elections and Ethics under para-
ber of the Council elected from a ward, $200, and in the case of
graph (2) of this subsection of not more than $50 for each such viola-
a runoff election, an additional $200;
tion. Each occurrence of a violation of this Act and each day of non-
(5) in the case of a contribution in support of a candidate for
compliance with a disclosure requirement of this Act or an order of
member of the Board of Education elected from a ward or for
the Board shall constitute a separate offense.
official of a political party, $100, and in case of a runoff election,
(2) A civil penalty shall be assessed by the Board by order only
an additional $100; and
after the person charged with a violation has been given an oppor-
(6) in the case of a contribution in support of a candidate for
tunity for a hearing, and the Board has determined, by decision
a member of an Advisory Neighborhood Council, $25.
incorporating its findings of facts therein, that a violation did occur,
(b) No person (other than an individual with respect to whom sub-
and the amount of the penalty. Any hearing under this section shall
section (a) applies) shall make any contribution which, and no person
be of record and shall be held in accordance with chapter 5 of title 5,
shall receive any contribution from any person (other than such an in-
United States Code.
dividual) which when aggregated with all other contributions received
(3) If the person against whom a civil penalty is assessed fails to
from that person, relating to a campaign for nomination as a candidate
pay the penalty, the Board shall file a petition for enforcement of
or election to public office, including both the primary and general or
its order assessing the penalty in the Superior Court of the District
special elections, exceeds-
of Columbia. The petition shall designate the person against whom
(1) in the case of a contribution in support of a candidate for
the order is sought to be enforced as the respondent. A copy of the
Mayor, $2,000;
petition shall be forthwith sent by registered or certified mail to the
(2) in the case of a contribution in support of a candidate for
respondent and his attorney of record, and if the respondent is a politi-
Chairman of the Council, $1,500;
cal committee, to the Chairman thereof, and thereupon the Board
(3) in the case of a contribution in support of a candidate for
shall certify and file in such court the record upon which such order
member of the Council elected at large, $1,000;
sought to be enforced was issued. The court shall have jurisdiction to
(4) in the case of a contribution in support of a candidate for
enter a judgment enforcing, modifying, and enforcing as 80 modified,
member of the Board of Education elected at large or for mem-
or setting aside in whole or in part the order and the decision of the
ber of the Council elected from a ward $400, and in the case of a
Board or it may remand the proceedings to the Board for such further
runoff election, an additional $400;
action as it may direct. The court may determine de novo all issues
(5) in the case of a contribution in support of a candidate for
of law but the Board's findings of fact, if supported by substantial
member of the Board of Education elected from a ward or for
evidence, shall be conclusive.
official of a political party, $200, and in the case of a runoff elec-
(c) Upon application made by any individual holding public office,
tion, an additional $200; and
any candidate, or any political committee, the Board, through its
(6) in the case of a contribution in support of a candidate for
General Counsel, shall provide within a reasonable period of time
a member of an Advisory Neighborhood Council, $25.
an advisory opinion, with respect to any specific transaction or activ-
For the purposes of this subsection, the term "person" shall include
ity inquired of, as to whether such transaction or activity would con-
a candidate making contributions relating to his candidacy for nomi-
stitute a violation of any provision of this Act or of any provision of
nation for election, or election, to office. Notwithstanding the preceding
the District of Columbia Election Act over which the Board has
provisions of this subsection, a candidate for member of the Council
primary jurisdiction.
elected from a ward may contribute $1,000 to his own campaign. The
provisions of this subsection to the extent that such provisions are
TITLE IV-FINANCE LIMITATIONS
applicable to corporations and unions shall. to that extent, expire as
of July 1, 1975, unless the Council of the District of Columbia on or
GENERAL LIMITATIONS
before such date enacts legislation repealing or modifying such pro-
SEC. 401. (a) No individual shall make any contribution which, and
visions or extending such provisions as to corporations and unions on
no person shall receive any contribution from any individual which
and after that date. In the event that the Council fails to 80 repeal,
when aggregated with all other contributions received from that in-
modify, or extend such provisions as to corporations and labor unions,
fax momination as a candidate for
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17
the Council shall report its reasons therefor to the Committees on the
connection with a campaign of that candidate for nomination for elec-
District of Columbia of the Senate and the House of Representatives
tion, or for election, to public office unless that loan or advance is
prior to August 1, 1975.
evidenced by a written instrument fully disclosing the terms, condi-
(c) No individual shall make any contribution in any one election
tions, and parts to the loan or advance. The amount of any such loan
which when aggregated with all other contributions made by that
or advance shall be included in computing and applying the limita-
individual in that election exceeds $2,000.
tions contained in this section only to extent of the balance of the loan
(d) (1) Any expenditure made by any person advocating the election
or advance which is unpaid at the time of determination.
or defeat of any candidate for office which is not made at the request
(2) For purposes of this subsection, the term "immediate family"
or suggestion of the candidate, any agent of the candidate, or any
means the candidate's spouse and any parent, brother, or sister, or
political committee authorized by the candidate to make expenditures
child of the candidate, and the spouse of any such parent, brother,
or to receive contributions for the candidate is not considered a con-
sister, or child.
tribution to or an expenditure by or on behalf of the candidate for
LIMITATION OF EXPENDITURES
the purposes of the limitations specified in this Act.
SEC. 402. (a) (1) No principal campaign committee shall expand
(2) No person may make any unauthorized expenditure advocating
any funds which when aggregated with funds expended by it, all other
the election or defeat of a clearly identified candidate during a calendar
committees required to report to it, and by a candidate supported by
year which, when added to all other unauthorized expenditures made
such committee shall exceed (1) in the case of a candidate for Mayor,
by that person during the year advocating the election or defeat of
$200,000 in the aggregate for any primary and general election in
that candidate, exceeds $1,000.
connection therewith, but in no event in excess of $120,000 for one of
(3) For purposes of paragraph (2)
such elections and $80,000 for the other of such elections; (2) in the
(A) "clearly identified" means-
case of a candidate for Chairman of the Council, $150,000 in the aggre-
(i) the candidate's name appears,
gate for any primary and general election in connection therewith,
(ii) a photograph or drawing of the candidate appears, or
but in no event in excess of $90,000 for one of such elections and $60,000
(iii) the identity of the candidate is apparent by unam-
for the other of such elections; (3) in the case of a candidate for mem-
biguous reference,
ber of the Council elected at large, $100,000 in the aggregate for any
(B) "person" does not include the central committee of a politi-
primary and general election in connection therewith, but in no event
cal party, and
in excess of $60,000 for one of such elections and $40,000 for the other
(σ) "expenditure" does not include any payment made or in-
of such elections; (4) in the case of a candidate for member of the
curred by a corporation or labor organization which, under the
Board of Education elected at large or member of the Council elected
provisions of section 610 of title 18 of the United States Code
from a ward, $20,000 in the aggregate for any primary and general
would not constitute an expenditure by that corporation or labor
election in connection therewith, but in no event in excess of $12,000
organization.
for one of such elections and $8,000 for the other of such elections;
(4) Every candidate shall file a statement with the Board, in such
(5) in the case of a candidate for member of the Board of Education
manner and form and at such times as the Board may prescribe, are-
elected from a ward, or in support of any candidate for office of a
thorizing any person or any political committee organized primarily
political party, $10,000 in the aggregate for any primary and general
to support the candidacy of such candidate to either directly or in-
election in connection therewith, but in no event in excess of $6,000 for
directly, receive contributions, or make expenditures in behalf of,
one of such elections and $4,000 for the other of such elections; and
such candidate. No person and no committee organized primarily to
(6) in the case of a candidate for member of an Advisory Neighbor-
support a single candidate may, either directly or indirectly, receive
hood Council, $500.
contributions or make expenditures in behalf of, such candidate with-
out the written authorization of such candidate as required by this
(2) At the beginning of each calendar year (commencing in 1976),
as there become available necessary data from the Bureau of Labor
paragraph.
Statistics of the Department of Labor, the Secretary of Labor shall
(e) In no case shall any person receive or make any contribution
certify to the Board and the Board shall publish in the District of
in legal tender in an amount of $50 or more.
(f) No person shall make a contribution in the name of another
Columbia Register the per centum difference between the price index
person, and no person shall knowingly accept a contribution made by
for the twelve months preceding the beginning of such calendar year
and the price index for 1974. Each amount determined under para-
one person in the name of another person.
(g) For purposes of the limitations contained in this section all
graph (1) shall be changed by such per centum difference. Each
contributions made by any person directly or indirectly to or for the
amount 80 changed shall be the amount in effect for such calendar year.
benefit of a particular candidate, including contributions which are
(3) No political committee or candidate shall knowingly expend any
funds at a time when the principal campaign committee to which it
in any way earmarked. encumbered, or otherwise directed through an
shall report, or which has been designated by him, is precluded by sub-
intermediary or conduit to that candidate, shall be treated as con-
tributions from that person to that candidate.
section (a) from expending funds or which would cause such principal
(h) (1) No candidate or member of the immediate family of a candi-
committee to be precluded from further expenditures. Any principal
date may make a loan or advance from his personal funds for use in
campaign committee of a candidate having reasonable knowledge to
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19
believe that further expenditures by a political committee registered
STATEMENTS OF ACCOUNTS FILED WITH DIRECTOR
in support of such candidate, or by the candidate it supports, will ex-
SEC. 504. (a) Every person receiving any contributions or expend-
ceed the expenditure limitations specified in subsection (a) shall im-
ing any money for the purposes designated in subparagraph (a) or
mediately notify, in writing, such political committee or candidate of
(b) of section 506 of this title shall file with the Director between the
that fact.
first and tenth day of each calendar quarter, a statement containing
(c) Any expenditure made in connection with a campaign in a
complete as of the day next preceding the date of filing-
calendar year other than the calendar year in which the election is held
(1) the name and address of each person who has made a con-
to which that campaign relates is, for the purposes of this section, con-
tribution of $200 or more not mentioned in the preceding report;
sidered to be made during the calendar year in which that election is
held.
except that the first report filed pursuant to this title shall contain
TITLE V-LOBBYING
the name and address of each person who has made any contribu-
tion of $200 or more to such person since January 2, 1975;
DEFINITIONS
(2) the total sum of the contributions made to or for such per-
son during the calendar year and not stated under paragraph (1)
SEC. 501. When used in this title-
of this subsection;
(a) The term "contribution" includes a gift, subscription, loan, ad-
(3) the total sum of all contributions made to or for such per-
vance, or deposit of money or anything of value and includes a con-
son during the calendar year;
tract, promise, or agreement, whether or not legally enforceable, to
(4) the name and address of each person to whom an expendi-
make a contribution.
ture in one or more items of the aggregate amount or value, within
(b) The term "expenditure" includes a payment, distribution, loan,
the calendar year, of $10 or more has been made by or on behalf
advance, deposit, or gift of money or anything of value, and includes
of such person, and the amount, date, and purpose of such ex-
a contract, promise, or agreement, whether or not legally enforceable,
penditure;
to make an expenditure.
(5) the total sum of all expenditures made by or on behalf of
(c) The term "legislation" means bills, resolutions, amendments,
such person during the calendar year and not stated under para-
nominations, rules, and other matters pending or proposed in the
graph (4) of this subsection;
Council of the District of Columbia, and includes any other matter
(6) the total sum of expenditures made by or on behalf of such
which may be the subject of action by the Council of the District of
person during the calendar year.
Columbia.
(b) The statements required to be filed by subsection (a) of this
section shall be cumulative during the calendar year to which they re-
DETAILED ACCOUNTS OF CONTRIBUTIONS; RETENTION OF RECEIPTED BILLS
OF EXPENDITURES
late, but where there has been no change in an item reported in a pre-
vious statement only the amount need be carried forward.
SEC. 502. (a) It shall be the duty of every person who shall in any
manner solicit or receive a contribution to any organization or fund
PRESERVATION OF STATEMENTS
for the purposes hereinafter designated to keep a detailed and exact
SEC. 505. A statement required by this title to be filed with the
account of-
Director-
(1) all contributions of any amount or of any value whatsoever;
(a) shall be deemed properly filed when deposited in an estab-
(2) the name and address of every person making any such
lished post office within the prescribed time, duly stamped, reg-
contribution of $200 or more and the date thereof;
(3) all expenditures made by or on behalf of such organization
istered, and directed to the Director, Washington, District of
Columbia, but in the event it is not received, a duplicate of such
or fund; and
(4) the name and address of every person to whom any such
statement shall be promptly filed upon notice by the Director of
its nonreceipt;
expenditure is made and the date thereof.
(b) It shall be the duty of such person to obtain and keep a receipted
(b) shall be preserved by the Director for a period of two years
bill, stating the particulars, for every expenditure of such funds ex-
from the date of filing, shall constitute part of the public records
ceeding $10 in amount, and to preserve all receipted bills and accounts
of his office, and shall be open to public inspection.
required to be kept by this section for a period of at least two years
PERSONS TO WHOM TITLE IS APPLICABLE
from the date of the filing of the statement containing such items.
SEC. 506. The provisions of this title shall apply to any person (ex-
RECEIPTS FOR CONTRIBUTORS
cept a political committee) who, by himself, or through any agent or
SEC. 503. Every individual who receives a contribution of $200 or
employee or other persons in any manner whatsoever, directly or in-
more for any of the purposes hereinafter designated shall within five
directly, solicits, collects, or receives money or any other thing of value
days after receipt thereof render to the person or organization for
to be used principally to aid, or the principal purpose of which person
which such contribution was received a detailed account thereof, in-
is to aid, in the accomplishment of any of the following purposes:
cluding the name and address of the person making such contribution
(a) The passage or defeat of any legislation by the Council of
the District of Columbia.
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21
(b) To influence, directly or indirectly, the passage or defeat
of any legislation by the Council of the District of Columbia.
(b) In addition to the penalties provided for in subsection (a) of
this section, any person convicted of the misdemeanor specified there-
REGISTRATION OF LOBBYISTS WITH DIRECTOR; COMPILATION OF
in is prohibited, for a period of three years from the date of such con-
INFORMATION
viction, from attempting to. influence, directly or indirectly, the pas-
SEC. 507. (a) Any person who shall engage himself for pay or for
sage or defeat of any proposed legislation or from appearing before
any consideration for the purpose of attempting to influence the pas-
a committee of the Council of the District of Columbia in support of
sage or defeat of any legislation by the Council of the District of
or opposition to proposed legislation; and any person who violates any
Columbia shall, before doing anything in furtherance of such object,
provision of this subsection shall be guilty of a felony, and shall be
register with the Director and shall give to him in writing and under
punished by a fine of not more than $10,000, or imprisonment for not
oath, his name and business address, the name and address of the
more than five years, or both.
person by whom he is employed, and in whose interest he appears or
EXEMPTION
works, the duration of such employment, how much he is paid and is
to receive, by whom he is paid or is to be paid, how much he is to be
SEC. 510. The provisions of this title shall not apply to-
paid for expenses, and what expenses are to be included. Each such
(1) any Member of the United States House of Representatives
person so registering shall, between the first and tenth day of each
or any Senator;
calendar quarter, 80 long as his activity continues, file with the Director
(2) any member of a staff of any person specified in para-
à detailed report under oath of all money received and extended by him
graph (1) while operating within the scope of his employment;
during the preceding calendar quarter in carrying on his work; to
(3) any member of an Advisory Neighborhood Council;
whom paid; for what purposes; and the names of any papers, periodi-
(4) any person who receives less than $500 during the calendar
cals, magazines, or other publications in which he has caused to be
year as compensation for performing services relating to the in-
published any articles or editorials; and the proposed legislation he
fluencing of legislation; or
is employed to support or oppose. The provisions of this section shall
(5) any entity specified in section 1(d) of title II of the Dis-
not apply to any person who merely appears before the Council of the
triot of Columbia Income and Franchise Tax Act of 1947 (D.C.
District of Columbia, or a committee thereof, in support of or opposi-
Code, sec. 47-1554(o no substantial part of the activities of
tion to legislation; nor to any public official acting in his official cα-
which is carrying on propaganda, or otherwise attempting to in-
pacity; nor in the case of any newspaper or other regularly published
fluence legislation.
periodical (including any individual who owns, publishes, or is em-
ployed by any such newspaper or periodical) which in the ordinary
TITLE VI-CONFLICT OF INTEREST AND DISCLOSURE
course of business publishes news items, editorials, or other comments,
CONFLICT OF INTEREST
or paid advertisements, which directly or indirectly urge the passage or
defeat of legislation, if such newspaper, periodical, or individual, en-
SEC. 601. (a) The Congress declares that elective and public office
gages in no further or other activities in connection with the passage
is a public trust, and any eff to realize personal gain through official
or defeat of such legislation, other than to appear before a committee
conduct is a violation of that trust.
of the Council of the District of Columbia in support of or in opposi-
(b) No public official shall use his official position or office to obtain
tion to such legislation.
financial gain for himself, any member of his household, or any busi-
(b) All information required to be filed under the provisions of
ness with which he or a member of his household is associated, other
this section with the Director shall be compiled by the Director as soon
than that compensation provided by law for said public official.
as practicable after the close of the calendar quarter with respect to
(c) No person shall offer or give to a public official or a member of a
which such information is filed and shall be printed in the District
public official's household, and no public official shall solicit or receive
of Columbia Register.
anything of value, including a gift, favor, service, loan gratuity, dis-
count, hospitality, political contribution, or promise of future employ-
REPORTS AND STATEMENTS UNDER OATH
ment, based on any understanding that such public official's official
Sec. 508. All reports and statements required under this title shall
actions or judgment or vote would be influenced thereby, or where it
be made under oath, before an officer authorized by law to administer
could reasonably be inferred that the thing of value would influence
oaths.
the public official in the discharge of his duties, or as a reward, or which
would cause the total value of such things received from the same per-
PENALTIES AND PROHIBITIONS
son not a member of such public official's household to exceed $100
during any single calendar year.
SEC. 509. (a) Any person who violates any of the provisions of this
title, shall be guilty of a misdemeanor, and shall be punished by a fine
(d) No person shall offer or pay to a public official, and no public
of not more than $5,000 or imprisonment for not more than twelve
official shall solicit or receive any money, in addition to that tawfully
months, or both.
received by the public official in his official capacity, for advice or
assistance given in the course of the public official's employment or
relating to his employment.
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23
(e) No public official shall use or disclose confidential information
or Chairman or member of the Board of Education of the District
given in the course of or by reason of his official position or activities
of Columbia, or each officer or employee of the District of Colum-
in any way that could result in financial gain for himself or for any
bia government who performs duties of the type generally per-
other person.
formed by an individual occupying grade GS-15 of the General
(f) No member or employee of the Council of the District of Colum-
Schedule or any higher grade or position (as determined by the
bia or Board of Education of the District of Columbia shall accept
Board regardless of the rate of compensation of such individual),
assignment to serve on a committee the jurisdiction of which consists
(2) "business" means any corporation, partnership, sole pro-
of matters (other than of a de minimis nature) in which he or a mem-
prietorship, firm, enterprise, franchise, association, organization,
ber of his family or a business with which he is associated, has financial
self-employed individual, holding company, joint stock, trust, and
interest.
any legal entity through which business 28 conducted for profit;
(g) Any public official who, in the discharge of his official duties,
(3) "business with which he is associated" means any business
would be required to take an action or make a decision that would affect
of which the person or member of his household is a director,
directly or indirectly his financial interests or those of a member of
officer, owner, employee, or older of stock worth $1,000 or more at
his household, or a business with which he is associated, or must take
fair market value, and any business which is a client of that
an official action on a matter as to which he has a conflict situation
person;
created by a personal, family, or client interest, shall-
(4) "household" means the public official and his immediate
(1) prepare a written statement describing the matter requiring
family; and
action or decision, and the nature of his potential conflict of
(5) "immediate family" means the public official's spouse and
interest with respect to such action or decision;
any parent, brother, or sister, or child of the public official, and
(2) cause copies of such statement to be delivered to the District
the spouse of any such parent, brother, sister, or child.
of Columbia Board of Elections and Ethics (referred to in this
title as the "Board"), and to his immediate superior, if any;
DISCLOSURE OF FINANCIAL INTEREST
(3) if he is a member of the Council of the District of Columbia
SEC. 602. Any candidate for nomination for election, or election, to
or member of the Board of Education of the District of Columbia,
public office who at the time he becomes a candidate, does not occupy
or employee of either, delivery a copy of such statement to the
any such office, shall file within one month after he becomes a candi-
Chairman thereof, who shall cause such statement to be printed in
date for such office, and the Mayor, and the Chairman and each mem-
the record of proceedings, and, upon request of said member or
ber of the Council of the District of Columbia holding office under the
employee, shall excuse the member from votes, deliberations, and
District of Columbia Self-Government and Governmental Reorga-
other action on the matter on which a potential conflict exists;
nization Act, and the Chairman and each member of the Board of
(4) if he is not a member of the Council of the District of
Education, shall file annually, with the Board a report containing a
Columbia, his superior, if any, shall assign the matter to another
full and complete statement of-
employee who does not have a potential conflict of interest, or, if
(1) the amount and source of each item of income, each item
he has no immediate superior, he shall take such steps as the
of reimbursement for any expenditure, and each gift or aggregate
Board prescribes through rules and regulations to remove him-
of gifts from one source (other than gifts received by him or by
self from influence over actions and decisions on the matter on
him and his spouse jointly during the preceding calendar year)
which potential conflict exists; and
which exceeds $100 in amount or value, including any fee or other
(5) during a period when a change of conflict of interest is
honorarium received by him for or in connection with 'the
under investigation by the Board, if he is not a member of the
preparation or delivery of any speech or address, attendance at
Council of the District of Columbia or a member of the Board of
any convention or other assembly of individuals, or the prepara-
Education, his superior, if any, shall have the arbitrary power to
tion of any article or other composition for publication, and the
assign the matter to another employee who does not have a poten-
monetary value of subsistence, entertainment, travel, and other
tial conflict of interest, or if he has no immediate superior, he
facilities received by him in kind;
shall take such steps as the Board shall prescribe through rules
(2) the identity of each asset held by him, or by him and
and regulations to remove himself from influence over actions and
his spouse jointly which has a value in excess of $1,000, and the
decisions on the matter on which there is a conflict of interest.
identity and amount of each liability owned by him, or by him
(h) Neither the Mayor nor any member of the Council of the Dis-
and his spouse jointly, which is in excess of $1,000 as of the close
trict of Columbia may represent another person before any regulatory
of the preceding calendar year;
agency or court of the District of Columbia while serving in such
(3) any transactions in securities of any business entity by
office. The preceding sentence does not apply to an appearance by such
him, or by him and his spouse jointly, or by any person acting
an official before any such agency or court in his official capacity.
on his behalf or pursuant to his direction during the preceding
(i) As used in this section, the term-
calendar year if the aggregate amount involved in transactions
(1) "public official" means the office of the Mayor of the Dis-
in the securities of such business entity exceeds $5,000 during such
trict of Columbia, Chairman of the Council of the District of
year;
the Council of the District of Columbia,
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25
(4) all transactions in commodities by him, or by him and his
examination and audit of any of the reports filed by any individual
spouse jointly, or by any person acting on his behalf, or pursuant
under section (b) of this title, the Director shall transmit to the Board
to his direction during the preceding calendar year if the
the envelopes containing such reports. Within a reasonable time after
aggregate amount involved in such transactions exceeds
such recorded vote has been taken, the individual concerned shall be
$5,000;
informed of the vote to examine and audit, and shall be advised of the
(5) any purchase or sale, other than the purchase or sale of
nature and scope of such examination. When any sealed envelope con-
his personal residence, or real property or any interest therein
taining any such report is received by the Director, such envelope may
by him, or by him and his spouse jointly, or by any person
be opened and the contents thereof may be examined only by members
acting on his behalf or pursuant to his direction, during the
of the Board in executive session. If, upon such examination, the Board
preceding calendar year if the value of property involved in
determines that further consideration by the Board is warranted and
such purchase or sale exceeds $5,000; and
within the jurisdiction of the Board, it may make the contents of any
(6) the amount of each tax paid by the individual, or by the
such envelope available for any use by any member of the Board, or
individual and the individual's spouse filing jointly, for the
the Director or General Counsel of the Board which is required for
preceding calendar year, except in the case of candidates filing
the discharge of his official duties. The Board may receive the papers
reports during calendar year 1974, who shall file reports for the
as evidence, after giving to the individual concerned due notice and
preceding three calendar years.
opportunity for hearing in a closed session. The Board shall publicly
(b) Any candidate for nomination for, or election to, office who at the
disclose not later than the first day of June each year the names of
time he becomes a candidate, does not occupy any such office, shall file
the candidates, officers, and employees who have filed a report. Any
within one month after he becomes a candidate for such office, and
paper which has been filed with the Board for longer than seven years,
the Chairman and each member of the Council and the Mayor holding
in accordance with the provisions of this section, shall be returned to
mental Reorganization Act, and the Chairman and each member of the
the individual concerned or his legal representative. In the event of
Board of Education, and each officer and employee of the District of
the death or termination of the service of the Mayor or Chairman
Columbia government who performs duties of the type generally
or member of the Council of the District of Columbia or Chairman or
performed by an individual occupying grade GS-15 of the General
member of the Board of Education, or officer or employee of the Dis-
Schedule under section 5332 of title 5, United States Code, or any
trict of Columbia, such papers shall be returned unopened to such
higher grade or position (as determined by the Board regardless of
individual, or to the surviving spouse or legal representative of such
the rate of compensation of such individual), shall file with the
individual within one year of such date or termination of service.
Board in a sealed envelope marked "Confidential Personal Financial
(d) Reports required by this section (other than reports 80 required
Discloure of (name)" before the fifteenth day of May in each year,
by candidates) shall be filed not later than sixty days following the
the following reports of his personal financial interests:
enactment of this Act, and not later than May 15 of each succeeding
(1) a copy of the returns of taxes, declarations, statements, or
year. In the case of any person who ceases, prior to such date in any
other documents which he, or he and his spouse jointly, made for
year, to occupy the office or position the occupancy of which imposes
the preceding year in compliance with the income tax provisions
upon him the reporting requirements contained in subsection (a)
of the Internal Revenue Code of 1954;
shall file such report on the last day he occupies such office or position,
(2) the name and address of each business or professional cor-
or on such later date, not more than three months after such last day,
poration, firm, or enterprise in which he was an officer, direc-
as the Board may prescribe.
tor, partner, proprietor, or employee who received compensation
(e) Reports required by this section shall be in such form and detail
during the preceding year and the amount of such compensation;
as the Board may prescribe. The Board may provide for the grouping
(3) the identity of each trust or other fiduciary relation in which
of items of income, sources of income, assets, liabilities, dealings in
he held a beneficial interest having a value of $10,000 or more,
securities or commodities, and purchases and sales of real property,
and the identity, if known, of each interst of the other fiduciary
when separate itemization is not feasible or is not necessary for an ac-
relation in real or personal property in which the candidate, officer,
curate disclosure of the income, net worth, dealing in securities and
or employee held α beneficial interest having a value of $10,000 or
more, at any time during the preceding year. If he cannot obtain
individual. commodities or purchases, and sales of rental property of any
the identity of the fiduciary interests, the candidate, officer, or em-
(f) All public reports filed under this section shall be maintained
ployee shall request the fiduciary to report that information to
by the Board as public records which, under such reasonable regula-
the Board in the same manner that reports are filed under this
tions as it shall prescribe, shall be available for inspection by mem-
rule.
bers of the public.
(c) Except as otherwise provided by this section, all papers filed
(g) For the purposes of any report required by this section, any
under this section shall be kept by the Board in the custody of the
individual shall be considered to have been ayor, Chairman, or mem-
Director for not less than seven years, and while so kept shall re-
ber of the Council of the District of Columbia, or Chairman or mem-
main sealed. Upon receipt of a request by any member of the Board
ber of the Board of Education, or officer or employee of the District of
adopted by a recorded majority vote of the full Board requesting the
Columbia during any calendar year of such individual served in any
such position for more than six months during such calendar year.
27
26
of encouraging residents of the District to participate in the election
(h) For purposes of this section, the term-
(1) "income" means gross income as defined in section 61 of the
process in the District, there shall be allowed to an individual a credit
against the tax (if any) imposed by this article in an amount equal
Internal Revenue Code of 1954;
(2) "security" means security as defined in section 2 of the
to 50 per centum of any campaign contribution made to any candidate
Securities Act of 1933, as amended (15 U.S.C.77b);
for election to any office referred to in the first section of the District
(3) "commodity" means commodity as defined in section 2 of
of Columbia Election Act, but in no event shall such credit exceed the
the Commodities Exchange Act, as amended (7 U.S.C.2)
amount of $12.50, or $25 in the case of married persons filing a joint
return.
(4) "transactions in securities or commodities" means any
acquisition, holding, withholding, use, transfer, or other dis-
(b) (1) A husband and wife filing separate returns for a taxable
year for which a joint return could have been made by them may claim
position involving any security or commodity;
(5) "immediate family" means the child, parent, grandparent,
between them only the total credit (or refund) to which they would
brother, or sister of an individual, and the spouse of such person;
have been entitled under this section had a joint return been filed.
"(2) No individual for whom a personal exemption was allowed on
and
(6) "tax" means the taxes imposed under chapter 1 of the In-
another individual's return shall be entitled to a credit (or refund)
under this section.".
ternal Revenue Code of 1954, under the District of Columbia
Revenue Act of 1947, and under the District of Columbia Public
"Sec. 7. Credit for campaign contributions.".
Works Act of 1954 and any other provision of law relating to the
USE OF SURPLUS CAMPAIGN FUNDS
taxation of property within the District of Columbia.
SEC. 703. Within the limitations specified in this Act, any surplus,
TITLE VII-PENALTIES AND ENFORCEMENT TAX
residual, or unexpended campaign funds received by or on behalf of
CREDITS, USE OF SURPLUS CAMPAIGN FUNDS, VOT-
an individual who seeks nomination for election, or election to office
ERS' INFORMATION PAMPHLETS, STUDY OF 1974
shall be contributed to a political party for political purposes, used to
ELECTION AND REPORT BY COUNCIL, EFFECTIVE
retire the proper debts of his political committee which received such
funds, or returned to the donors as follows:
DATES, AMENDMENTS TO DISTRICT OF COLUMBIA
(1) in the case of an individual defeated in an election, within
ELECTION act, AND AUTHORIZATION
six months following such election;
(2) in the case of an individual elected to office, within six
PENALTIES AND ENFORCEMENT
months following such election; and
SEC. 701. (a) Except as provided in subsection (b), any person or
(3) in the case of an individual ceasing to be a candidate, within
political committee who violates any of the provisions of this Act shall
six months thereafter.
be fined not more than $5,000, or shall be imprisoned for not longer
A STUDY OF 1974 ELECTION AND REPORT BY COUNCIL
than six months, or both.
(b) Any person who knowingly files any false or misleading state-
SEC. 704. (a) The Council of the District of Columbia shall, during
ment, report, voucher, or other paper, or makes any false or misleading
calendar year 1975, conduct public hearings and other appropriate
statement to the Board, shall be fined not more than $10,000, or shall
investigations on (1) the operation and effect of the District of Co-
be imprisoned for not longer than five years, or both.
lumbia Campaign Finance Reform Act and the District of Columbia
(c) The penalties provided in this section shall not apply to any
Election Act on the elections held in the District of Columbia during
person or political committee who, before the date of enactment of
1974; and (2) the necessity and desirability of modifying either or
this Act during calendar year 1974, makes political contributions or
both of those Acts 80 as to improve electoral machinery and to insure
receives political contributions or makes any political campaign ex-
open fair, and effective election campaigns in the District of Columbia.
penditures, in excess of any limitation placed on such contributions or
(b) Upon the conclusion of its hearings and investigations the
expenditures by this Act, except such person or political committee
Council shall issue a public report on its findings and recommenda-
shall not make any further such contributions or expenditures during
tions. Nothing in this section shall be construed as limiting the legisla-
the remainder of calendar year 1974.
tive authority over elections in the District of Columbia vested in the
(d) Prosecutions of violations of this Act shall be brought by the
Council by the District of Columbia Self-Government and Govern-
United States Attorney for the District of Columbia in the name of
mental Reorganization Act.
the United States.
EFFECTIVE DATES
TAX CREDIT FOR CAMPAIGN CONTRIBUTIONS
Sec. 702. (a) Title VI of article I of the District of Columbia In-
SEC. 705. (a) Titles II and IV of this Act shall take effect on the
come and Franchise Tax Act of 1947 (D.C. Code, secs. 47-1567-47-
date of enactment of this Act, except the first report or statement
1567e) is amended by adding at the end of that title the following:
required to be filed by any individual or political committee under the
"SEC. 7. (a) Credit for Campaign Contributions.-For the purpose
provisions of such titles shall include that information required under
28
section 13(e) of the District of Columbia Election Act (D.C. Code,
sec. 1-1113(e)) with respect to contributions and expenditures made
before the date of enactment of this Act, but after January 1, 1974.
(b) Titles, I, III, VI and VII of this Act shall take effect on the
date of enactment of this Act.
(c) Title V of this Act shall take effect January 2, 1975.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE
AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT
OF CONFERENCE
SEC. 706. (a) Section 13 of the District of Columbia Election Act
The managers on the part of the House and the Senate at the con-
(D.C. Code, sec 1-1113) is amended to read as follows:
ference on the disagreeing votes of the two Houses on the amendment
"AUTHORIZATION
of the Senate to the bill (H.R. 15074) to regulate certain political cam-
paign finance practices in the District of Columbia, and for other
SEC. 13. There are hereby authorized to be appropriated, out of any
purposes, submit the following joint statement to the House and the
money in the Treasury to the credit of the District of Columbia not
Senate in explanation of the effect of the action agreed upon by the
otherwise appropriated, such sums as are necessary to carry out the
managers and recommended in the accompanying conference report:
purposes of this Act.".
The Senate amendment struck out all the House bill after the en-
(b) The first sentence of subsection (b) of section 4 of such Act
acting clause, inserted a substitute text and provided a new title for
(D.C. Code, sec. 1-1104) is amended to read as follows:
the House bill.
"(b) Each member of the Board shall be paid compensation at the
The Committee of Conference has agreed to a substitute for both
rate of $100 for each eight hour period with a limit of $12,500 per
the House bill and the Senate amendment to the text of the bill. Ex-
annum, while performing duties under this Act, except during 1974
cept for clarifying, clerical, and conforming changes, the major dif-
such compensation shall be paid without regard to such annual
ferences are noted below:
limitation.".
(c) The amendment made by subsection (a) shall not affect the
AGENCY TO ADMINISTER THE ACT
liability of any person arising out of any violation of section 13 of the
District of Columbia Election Act committed before the date of en-
The House bill continued the existing Board of Elections to ad-
actment of this title, and any action commenced with respect to such
minister this act.
a violation shall not abate.
The Senate amendment replaced the present Board of Elections
with the Board of Elections and Ethics to assume the duties of the
AUTHORITY OF COUNCIL
previous Board. The new Board was given compliance authority, in-
SEC. 707. Notwithstanding any other provision of law, or any rule
cluding civil penalties and general procedures for conduct of the
of law, nothing in this Act shall be construed as limiting the authority
Board's business.
of the District of Columbia Council to enact any act or resolution,
The Conference substitute conforms to the Senate amendment.
after January 2, 1975, pursuant to the District of Columbia Self-Gov-
ernment and Governmental Reorganization Act with respect to any
APPOINTMENT OF DIRECTOR OF CAMPAIGN FINANCE
matter covered by this Act.
The House bill provided for appointment of the Director by the
AUTHORIZATION OF APPROPRIATION
Board of Elections at a salary of GS-10 level.
SEC. 708. Amounts authorized under section 722 of the District of
The Senate amendment provided for appointment of the Director
Columbia Self-Government and Governmental Reorganization Act
by the Mayor with Senate confirmation until January 2, 1975, and
may be used to carry out the purposes of this Act.
Council confirmation thereafter. The salary of the Director was set
And the Senate agrees to the same.
at GS-16 ($36,000).
The Conference substitute conforms to the Senate amendment.
CHARLES C. DIGGS, Jr.,
BROCK ADAMS,
CHAIRMAN OF THE BOARD OF ELECTIONS
DONALD FRASER,
W. S. (BILL) STUCKEY, Jr.,
The House bill made the position of Board Chairman full-time and
THOMAS M. REES,
retained the present $75 per day reimbursement for Board members,
ANCHER NELSEN,
not to exceed $11,250 per annum.
GILBERT GUDE,
The Senate amendment left the Board Chairman as a part-time
Managers on the Part of the House.
position and raised the compensation of Board members to $150 per
THOMAS F. EAGLETON,
day without annual limitation.
DANIEL K. INOUYE,
The Conference substitute leaves the Chairman as a part-time posi-
CHARLES McC. MATHIAS, Jr.,
(29)
Managers on the Part of the Senate.
30
31
tion and raises the pay of each member of the Board to $100 for each
MAXIMUM EXPENDITURES IN A CANDIDATE'S CAMPAIGN
8-hour period worked, with an annual limitation of $12,500.
The House bill limited total expenditures in any candidate's cam-
CONTRIBUTION LIMITATIONS-INDIVIDUALS
paign for both primary and general elections and limited the expendi-
ture to 50% in the primary and 50% in the general elections as follows:
The House bill set maximum contributions as follows: to a candi-
the Mayor, $200,000; the Chairman, $150,000; Council at-Large,
date for Mayor, $1,000; to a candidate for Chairman of the City
$100,000; Board of Education at-Large, $40,000; Member of the Coun-
Council, $750; to a candidate for Council-at-Large, $500; to a candi-
cil from a ward, $40,000; Board of Education from a ward, $20,000;
date for official of a political party, $100, with an additional $100
official of political party, $20,000.
contribution permitted in case of a run-off.
The Senate amendment lowered those figures and permitted 60%
The Senate amendment lowered the ceiling for contributions to
to be spent in the general or primary election at the candidate's dis-
Mayoral candidates to $500; candidates for Chairman to $400, and
cretion in the races for Mayor, $150,000; Chairman, $115,000; Council
candidates for Council-at-Large to $400. The Senate amendment had
at-Large, $90,000; Board of Education at-Large, $20,000; Member of
no provision for contributions to candidates for official of a political
the Council from a ward, $20,000; Board of Education from a ward,
party or in case of a run-off. The Senate amendment limited contri-
$10,000.
butions to candidates for Advisory Neighborhood Councils to $25.
The Conference substitute adopts the total dollar expenditure limi-
The Conference substitute conforms to the House bill but accepts
tations contained in the House bill, with the Senate provision which
the Senate limitation for Advisory Neighborhood Councils.
permits 60% of the funds to be expended in either the general or pri-
mary election at the candidate's discretion, with the other 40% to be
CONTRIBUTION LIMITATIONS-PERSONS OTHER THAN INDIVIDUALS
the limitation on expenditures for the other election.
The House bill limited contributions by persons other than individ-
USE OF UNEXPENDED CAMPAIGN FUNDS
uals to a single candidate as follows: the Mayor, $2,000; the Chair-
man, $1,500; the Council Member-at-Large, $1,000; and Council Mem-
The House bill permits use of surplus campaign funds for political
ber from a ward, $400; for Board of Education from a ward, $200;
purposes of a political party; retiring proper debts of a political com-
for official of a political party, $200; and provided an additional $200
mittee; contribution to educational organizations; contributions to
in case of a run-off.
charitable organizations; and use in future campaigns of same
The Senate amendment had no such provision.
candidate.
The Conference substitute conforms to the House provision with
The Senate amendment provided that surplus funds shall be used
the addition that these limitations as they apply to corporations and
for political purposes of a political party; retiring proper debts of a
labor unions expire on July 1, 1975, unless reenacted or modified by
political committee; or be returned to donors on a pro rata basis.
the City Council. If the Council fails to act, it shall by August 1,
The Conference substitute provides that surplus funds shall be used
1975 report the reasons for its failure to act to the Senate and House
for political purposes of a political party, for retiring proper debts
Committees on the District of Columbia.
of the candidate's political committee which received the funds, or be
returned to donors within six months after the election.
AGGREGATE CONTRIBUTIONS BY AN INDIVIDUAL
LOBBYING
The House bill limited an individual to contributions to all candi-
dates totaling $2,000.
The House bill provided for registration and reporting by persons
The Senate amendment provided a limitation of $1,000.
engaging for pay in lobbying for passage or defeat of legislation by
The Conference substitute conforms to the House bill.
the Council of the District of Columbia. The Director of Campaign
Finance administered this provision.
CONTRIBUTIONS BY A CANDIDATE AND HIS FAMILY TO HIS CAMPAIGN
The Senate amendment had no such provision.
The Conference substitute conforms with the House bill but makes
The House bill contained individual limitations that may be spent by
certain exceptions and limits its operation to lobbyists being paid
a candidate and his family in different amounts for each office, start-
over $500 per year for this purpose.
ing with $2,000 for the Mayor and ranging down.
The Senate amendment permitted contributions by a candidate and
CONFLICT OF INTEREST
his immediate family to aggregate 25% of the total expenditures per-
mitted in his campaign.
The Senate amendment prohibited a public official of the District
The Conference substitute conforms to the House provision.
from using his office to obtain financial gain, accepting gifts for taking
official action, disclosing confidential information resulting in finan-
cial gain. No official could accept membership on a committee or an
assignment of responsibility which created a conflict of interest.
8/17
H.R. 15074
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
LIBRARY
FORD
An Act
GERALD
To regulate certain political campaign finance practices in the District of
Columbia, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I-SHORT TITLE, DEFINITIONS
Sec. 101. Short title.
Sec. 102. Definitions.
TITLE I1-FINANCIAL DISCLOSURES
Sec. 201. Organization of political committees.
Sec. 202. Principal campaign committee.
Sec. 203. Designation of campaign depository.
Sec. 204. Registration of political committees; statements.
Sec. 205. Registration of candidates.
Sec. 206. Reports by political committees and candidates.
Sec. 207. Reports by others than political committees.
Sec. 208. Formal requirements respecting reports and statements.
Sec. 209. Exemption for candidates who anticipate spending less than $250.
Sec. 210. Identification of campaign literature.
Sec. 211. Effect on liability.
TITLE IHI-DIRECTOR OF CAMPAIGN FINANCE
Sec. 301. Establishment of the Office of Director.
Sec. 302. Powers of the Director.
Sec. 303. Duties of the Director.
Sec. 304. General Accounting Office to assist Board and Director.
Sec. 305. Nominating committee.
Sec. 306. District of Columbia Board of Elections and Ethics.
TITLE IV-FINANCE LIMITATIONS
Sec. 401. General limitations.
Sec. 402. Limitation on expenditures.
TITLE V-LOBBYING
Sec. 501. Definitions.
Sec. 502. Detailed accounts of contributions: retention of receipted bills of
expenditures.
Sec. 503. Receipts for contributions.
Sec. 504. Statements of accounts filed with Director.
Sec. 505. Preservation of statements.
Sec. 506. Persons to whom title is applicable.
Sec. 507. Registration of lobbyists with Director; compilation of information.
Sec. 508. Reports and statements under oath.
Sec. 509. Penalties and prohibitions.
Sec. 510. Exemptions.
TITLE VI-CONFLICT OF INTEREST AND DISCLOSURE
Sec. 601. Conflict of interest.
Sec. 602. Disclosure of financial interest.
TITLE VII-PENALTIES AND ENFORCEMENT TAX CREDITS, USE OF
SURPLUS CAMPAIGN FUNDS, VOTERS' INFORMATION PAMPHLETS,
STUDY OF 1974 AND REPORT BY COUNCIL, EFFECTIVE DATES,
AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT, AND
AUTHORIZATION
Sec. 701. Penalties and enforcement.
Sec. 702. Tax credit for campaign contributions.
Sec. 703. Use of surplus campaign funds.
Sec. 704. A study of 1974 election and report by Council.
Sec. 705. Effective dates.
Sec. 706. Amendments to District of Columbia Election Act.
Sec. 707. Authority of Council.
Sec. 708. Authorization of appropriation.
H. R. 15074-2
TITLE I-SHORT TITLE, DEFINITIONS
SHORT TITLE
SEC. 101. This Act may be cited as the "District of Columbia Cam-
paign Finance Reform and Conflict of Interest Act."
DEFINITIONS
SEC. 102. When used in this Act, unless otherwise provided-
(a) The term "election" means a primary, runoff, general, or special
election held in the District of Columbia for the purpose of nominating
an individual to be a candidate for election to office or for the purpose
of electing a candidate to office, and includes a convention or caucus of
a political party held for the purpose of nominating such a candidate.
(b) The term "candidate" means an individual who seeks nomina-
tion for election, or election, to office, whether or not such individual
is nominated or elected, and, for purposes of this paragraph, an indi-
vidual shall be deemed to seek nomination for election, or election, if
he has (1) obtained or authorized any other person to obtain nominat-
ing petitions to qualify himself for nomination for election, or elec-
tion, to office, (2) received contributions or made expenditures, or has
given his consent for any other person to receive contributions or
make expenditures, with a view to bringing about his nomination for
election, or election, to office, or (3) reason to know, or knows, that any
other person has received contributions or made expenditures for that
purpose, and has not notified that person in writing to cease receiving
contributions or making expenditures for that purpose. A person who
is deemed to be a candidate for the purposes of this Act shall not
be deemed, solely by reason of that status, to be a candidate for the
purposes of any other Federal law.
(c) The term "office" means the office of Mayor of the District of
Columbia, Chairman or member of the Council of the District of
Columbia, member of the Board of Education of the District of
Columbia, or an official of a political party.
(d) The term "official of a political party" means-
(1) national committeemen and national committeewomen;
(2) delegates to conventions of political parties nominating can-
didates States; for the Presidency and Vice Presidency of the United
above, where permitted by political party rules; and
(3) alternates to the officials referred to in clauses (1) and (2)
(4) such members and officials of local committees of political
parties as may be designated by the duly authorized local com-
mittees of such parties for election, by public ballot, at large or by
ward in the District of Columbia.
(e) The term "political committee" means any committee (includ-
ing a principal campaign committee), club, association, organization,
or other group of individuals organized for the purpose of, or engaged
in, promoting or opposing a political party or the nomination or elec-
tion of an individual to office.
(f) The term "contribution" means-
(1) a gift, subscription (including any assessment, fee, or mem-
bership dues), loan, advance, or deposit of money or anything
of value, made for the purpose of financing, directly or indirectly,
cal committee;
the election campaign of a candidate or any operations of a politi-
(2) a contract, promise, or agreement, whether or not legally
enforceable, to make a contribution for any such purpose;
(3) a transfer of funds between political committees; or
H. R. 15074-3
(4) the payment, by any person other than a candidate or politi-
cal committee, of compensation for the personal services of
another person which are rendered to such candidate or committee
without charge, or for less than reasonable value, for any such
purpose or the furnishing of goods, advertising, or services to a
candidate's campaign without charge, or at a rate which is less
than the rate normally charged for such services.
Notwithstanding the foregoing, such term shall not be construed to
include (A) services provided without compensation, by individuals
volunteering a portion or all of their time on behalf of a candidate or
political committee, (B) personal services provided without compen-
sation by individuals volunteering a portion or all of their time to
a candidate or political committee, (C) communications by an orga-
nization, other than a political party, solely to its members and their
families on any subject, (D) communications (including advertise-
ments) to any person on any subject by any organization which is
organized solely as an issue-oriented organization, which communica-
tions neither endorse nor oppose any candidate for office, or (E) nor-
mal billing credit for a period not exceeding thirty days.
(g) The term "expenditure" means--
(1) a purchase, payment, distribution, loan, advance, deposit,
or gift of money or anything of value, made for the purpose of
financing, directly or indirectly, the election campaign of a can-
didate or any operations of a political committee;
(2) a contract, promise, or agreement, whether or not legally
iforceable, to make an expenditure:
(3) a transfer of funds between political committees: and
(4) notwithstanding the foregoing provisions of this para-
graph, such term shall not be construed to include the incidental
expenses (as defined by the Board) made by or on behalf of
individuals in the course of volunteering their time on behalf of a
candidate or political committee.
(h) The term "person" means an individual, partnership, com-
mittee, association, corporation, labor organization, and any other
organization or group of persons.
(i) The term "Director" means the Director of Campaign Finance
of the District of Columbia Board of Elections and Ethics created by
title III.
(j) The term "political party" means an association, committee, or
organization which nominates a candidate for election to any office and
qualifies under the District of Columbia Election Act (D.C. Code,
sec. 1-1101 et seq.), to have the names of its nominees appear on the
election ballot as the candidate of that association, committee, or
organization.
(k) The term "Board" means the District of Columbia Board of
Elections and Ethics established under the District of Columbia Elec-
tion Act (D.C. Code, sec. 1-1101 et seq.) and redesignated by sec-
tion 306.
TITLE II-FINANCIAL DISCLOSURES
ORGANIZATION OF POLITICAL COMMITTEES
SEC. 201. (a) Every political committee shall have a chairman and
a treasurer. No contribution and no expenditure shall be accepted or
made by or on behalf of a political committee at a time when there is
a vacancy in the office of treasurer thereof and no other person has been
designated and has agreed to perform the functions of treasurer. No
expenditure shall be made for or on behalf of a political committee
without the authorization of its chairman or treasurer, or their desig-
nated agents.
H. R. 15074-4
(b) Every person who receives a contribution of $10 or more for or
on behalf of a political committee shall, on demand of the treasurer,
and in any event within five days after receipt of such contribution,
submit to the treasurer of such committee a detailed account thereof,
including the amount, the name and address (including the occupation
and the principal place of business, if any) of the person making such
contribution, and the date on which such contribution was received.
All funds of a political committee shall be segregated from, and may
not be commingled with, any personal funds of officers, members, or
associates of such committee.
(c) Except for accounts of expenditures made out of the petty cash
fund provided for under section 201 (b), the treasurer of a political
committee, and each candidate, shall keep a detailed and exact account
of-
(1) all contributions made to or for such political committee or
candidate;
(2) the full name and mailing address (including the occupa-
tion and the principal place of business, if any) of every person
making a contribution of $10 or more, and the date and amount
thereof;
(3) all expenditures made by or on behalf of such committee or
candidate; and
(4) the full name and mailing address (including the occupa-
tion and the principal place of business, if any) of every person to
whom any expenditure is made, the date and amount thereof and
the name and address of, and office sought by, each candidate on
whose behalf such expenditure was made.
(d) The treasurer or candidate shall obtain and preserve such
receipted bills and records as may be required by the Board.
(e) Each political committee and candidate shall include on the
face or front page of all literature and advertisements soliciting funds
the following notice "A copy of our report is filed with the Director
of Campaign Finance of the District of Columbia Board of Elections
and Ethics.".
PRINCIPAL CAMPAIGN COMMITTEE
SEC. 202. (a) Each candidate for office shall designate in writing
one political committee as his principal campaign committee. The prin-
cipal campaign committee shall receive all reports made by any other
political committee accepting contributions or making expenditures
for the purpose of influencing the nomination for election, or election,
of the candidate who designated it as his principal campaign commit-
tee. The principal committee may require additional reports to be
made to it by any such political committee and may designate the
time and number of all reports. No political committee may be
designated as the principal campaign committee of more than one
candidate, except a principal campaign committee supporting the
nomination or election of a candidate as an official of a political party
may support the nomination or election of more than one such candi-
date, but may not support the nomination or election of a candidate
for any public office.
(b) Each statement (including the statement of organization
required under section 204) or report that a political committee is
required to file with or furnish to the Director under the provisions of
this Act shall also be furnished, if that political committee is not a
principal campaign committee, to the campaign committee for the
candidate on whose behalf that political committee is accepting or
making, or intends to accept or make, contributions or expenditures.
(c) The treasurer of each political committee which is a principal
campaign committee, and each candidate, shall receive all reports and
H. R. 15074-5
statements filed with or furnished to it or him by other political
committees, consolidate, and furnish the reports and statements to
the Director, together with the reports and statements of the principal
campaign committee of which he is treasurer or which was designated
by him, in accordance with the provisions of this title and regulations
prescribed by the Board.
DESIGNATION OF CAMPAIGN DEPOSITORY
SEC. 203. (a) Each political committee, and each candidate accept-
ing contributions or making expenditures, shall designate, in the
registration statement required under section 204 or 205, one national
bank located in the District of Columbia as the campaign depository
of that political committee or candidate. Each such committee or can-
didate shall maintain a checking account at such depository and shall
deposit any contributions received by the committee or candidate into
that account. No expenditures may be made by such committee or
candidate except by check drawn payable to the person to whom the
expenditure is being made on that account, other than petty cash
expenditures as provided in subsection (b).
(b) A political committee or candidate may maintain a petty cash
fund out of which may be made expenditures not in excess of $50 to
any person in connection with a single purchase or transaction. A rec-
ord of petty cash receipts and disbursements shall be kept in accordance
with requirements established by the Board and such statements and
reports thereof shall be furnished to the Director as it may require.
Payments may be made into the petty cash fund only by check drawn
on the checking account maintained at the campaign depository of
such political committee or candidate.
REGISTRATION OF POLITICAL COMMITTEES STATEMENTS
SEC. 204. (a) Each political committee shall file with the Director
a statement of organization within ten days after its organization. Each
such committee in existence at the date of enactment of this Act shall
file a statement of organization with the Director at such time as the
Director may prescribe-
(b) The statement of organization shall include-
(1) the name and address of the political committee;
(2) the names, addresses, and relationships of affiliated or con-
nected organizations;
(3) the area, scope, or jurisdiction of the political committee;
(4) the name, address, and position of the custodian of books
and accounts;
(5) the name, address, and position of other principal officers,
including officers and members of the finance committee, if any;
(6) the name, address, office sought, and party affiliation of
(A) each candidate whom the committee is supporting, and (B)
any other individual, if any, whom the committee is supporting
for nomination for election or election, to any public office what-
ever; or, if the committee is supporting the entire ticket of any
party, the name of the party;
(7) a statement whether the political committee is a continuing
one;
(8) the disposition of residual funds which will be made in the
event of dissolution;
(9) the name and address of the bank designated by the com-
mittee as the campaign depository, together with the title and
number of each account and safety deposit box used by that com-
H. R. 15074-6
mittee at the depository, and the identification of each individual
authorized to make withdrawals or payments out of each such
account or box and
(10) such other information as shall be required by the Director.
(c) Any change in information previously submitted in a statement
of organization shall be reported to the Director within the ten-day
period following the change.
(d) Any political committee which, after having filed one or more
statements of organization, disbands or determines it will no longer
receive contributions or make expenditures during the calendar year
shall SO notify the Director.
REGISTRATION OF CANDIDATES
SEC. 205. (a) Each individual shall, within five days of becoming
a candidate, or within five days of the day on which he, or any person
authorized by him (pursuant to section 401 (d)) to do SO, has received
a contribution or made an expenditure in connection with his campaign
or for the purposes of preparing to undertake his campaign, file with
the Director a registration statement in such form as the Director may
prescribe.
(b) In addition, candidates shall provide the Director the name and
address of the campaign depository designated by that candidate,
together with the title and number of each account and safety deposit
box used by that candidate at the depository, and the identification of
each individual authorized to make withdrawals or payments out of
such account or box, and such other information as shall be required
by the Director.
REPORTS BY POLITICAL COMMITTEES AND CANDIDATES
SEC. 206. (a) The treasurer of each political committee supporting
a candidate, and each candidate, required to register under this Act,
shall file with the Director, and with the applicable principal cam-
paign committee, reports of receipts and expenditures on forms to be
prescribed or approved by the Director. Except for the first such
report which shall be filed on the twenty-first day after the date
of enactment of this Act, such reports shall be filed on the 10th
day of March, June, August, October, and December in each year dur-
ing which there is held an election for the office such candidate is seek-
ing, and on the fifteenth and fifth days next preceding the date on
which such election is held, and also by the 31st day of January of each
year. In addition such reports shall be filed on the 31st day of July of
each year in which there is no such election. Such reports shall be com-
plete as of such date as the Director may prescribe, which shall not be
more than five days before the date of filing, except that any contribu-
tion of $200 or more received after the closing date prescribed by the
Director for the last report required to be filed prior to the election
shall be reported within twenty-four hours after its receipt.
(b) Each report under this section shall disclose—
(1) the amount of cash on hand at the beginning of the report-
ing period;
(2) the full name and mailing address (including the occupa-
tion and the principal place of business, if any) of each person
who has made one or more contributions to or for such committee
or candidate (including the purchase of tickets for events such as
dinners, luncheons, rallies, and similar fundraising events) within
the calendar year in an aggregate amount or value in excess
of $50 or more, together with the amount and date of such
contributions;
H. R. 15074-7
(3) the total sum of individual contributions made to or for such
committee or candidate during the reporting period and not
reported under paragraph (2);
(4) the name and address of each political committee or candi-
date from which the reporting committee or the candidate
received, or to which that committee or candidate made, any trans-
fer of funds, together with the amounts and dates of all transfers;
(5) each loan to or from any person within the calendar year
in an aggregate amount or values of $50 or more, together with
the full names and mailing addresses (including the occupation
and the principal place of business, if any) of the lender and
endorsers, if any, and the date and amount of such loans;
(6) the net amount of proceeds from (A) the sale of tickets
to each dinner, luncheon, rally, and other fundraising events
organized by such committee; (B) mass collections made at such
events; and (C) sales by such committee of items such as political
campaign pins, buttons, badges, flags, emblems, hats, banners,
literature, and similar materials;
(7) each contribution, rebate, refund, or other receipt of $50
or more not otherwise listed under paragraphs (2) through (6)
(8) the total sum of all receipts by or for such committee or
candidate during the reporting period;
(9) the full name and mailing address (including the occupa-
tion and the principal place of business, if any) of each person
to whom expenditures have been made by such committee or on
behalf of such committee or candidate within the calendar year
in an aggregate amount or value of $10 or more, the amount,
date, and purpose of each such expenditure and the name and
address of, and office sought by, each candidate on whose behalf
such expenditure was made;
(10) the total sum of expenditures made by such committee
or candidate during the calendar year;
(11) the amount and nature of debts and obligations owed by
or to the committee, in such form as the Director may prescribe
and a continuous reporting of its debts and obligations fter the
election at such periods as the Director may require until such
debts and obligations are extinguished; and
(12) such other information as may be required by the
Director.
(c) The reports to be filed under subsection (a) shall be cumulative
during the calendar year to which they relate, but where there has been
no change in an item reported in a previous report during such year,
only the unchanged amount need be carried forward. If no con-
tributions or expenditures have been accepted or expended during a
calendar year, the treasurer of the political committee or candidate
shall file a statement to that effect.
(d) Each treasurer of a political committee, each candidate for
election to office, and each treasurer appointed by a candidate, shall file
with the Director weekly reports of cash contributions on forms to be
prescribed or approved by the Director.
REPORTS BY OTHERS THAN POLITICAL COMMITTEES
SEC. 207. Every person (other than a political committee or candi-
date) who makes contributions or expenditures, other than by con-
tribution to a political committee or candidate, in an aggregate amount
of $50 or more within a calendar year shall file with the Director a
statement containing the information required by section 206. State-
ments required by this section shall be filed on the dates on which
reports by political committees are filed, but need not be cumulative.
H. R. 15074-8
FORMAL REQUIREMENTS RESPECTING REPORTS AND STATEMENTS
SEC. 208. (a) A report or statement required by this title to be filed
by a treasurer of a political committee, a candidate, or by any other
person, shall be verified by the oath or affirmation of the person filing
such report or statement, taken before any officer authorized to admin-
ister oaths.
(b) A copy of a report or statement shall be preserved by the person
filing it for a period to be designated by the Board in a published
regulation.
(c) The Board, shall, by published regulations of general applicabil-
ity, prescribe the manner in which contributions and expenditures in
the nature of debts and other contracts, agreements, and promises to
make contributions or expenditures shall be reported. Such regulations
shall provide that they be reported in separate schedules. In determin-
ing aggregate amounts of contributions and expenditures, amounts
reported as provided in such regulations shall not be considered until
actual payment is made.
EXEMPTION FOR CANDIDATES WHO ANTICIPATE SPENDING LESS THAN $250
SEC. 209. Except for the provisions of subsections (c) and (d) of
section 201, and subsection (a) of section 205, the provisions of this
title shall not apply to any candidate who anticipates spending or
spends less than $250 in any one election and who has not designated a
principal campaign committee. On the fifteenth day prior to the date
of the election in which such candidate is entered, and on the thirtieth
day after the date of such election, such candidate shall certify to the
Director that he has not spent more than $250 in such election.
IDENTIFICATION OF CAMPAIGN LITERATURE
SEC. 210. All newspaper or magazine advertising, posters, circulars,
billboards, handbills, bumper stickers, sample ballots, and other
printed matter with reference to or intended for the support or defeat
of a candidate or group of candidates for nomination or election to any
public office shall be identified by the words "paid for by" followed
by the name and address of the payer or the committee or other person
and its treasurer on whose behalf the material appears.
EFFECT ON LIABILITY
SEC. 211. Nothing in this title shall be construed as creating or
limiting in any way the liability of any person under existing law for
any financial obligation incurred by a political committee or
candidate.
TITLE III-DIRECTOR OF CAMPAIGN FINANCE
ESTABLISHMENT OF THE OFFICE OF DIRECTOR
SEC. 301. (a) There is established within the District of Columbia
Board of Elections and Ethics the office of Director of Campaign
Finance (hereinafter in this Act referred to as the "Director"). The
Commissioner of the District of Columbia shall appoint, by and with
the advice and consent of the Senate, the Director, except that on and
after January 2, 1975, any vacancy in the office of Director shall be
filled by appointment by the Mayor, with the advice and consent of
the Council. Such appointments shall be made without regard to the
provisions of title 5 of the United States Code, governing appoint-
H. R. 15074-9
ments in the competitive service. The Director shall be entitled to
receive compensation at the maximum rate as may be established from
time to time for grade 16 of the General Schedule in section 5332 of
title 5 of the United States Code, and shall be responsible for the
administrative operations of the Board pertaining to this Act and shall
perform such other duties as may be delegated or assigned to him from
time to time by regulations or orders of the Board. However, the
Board shall not delegate to the Director the making of regulations
regarding elections.
(b) The Board may appoint a General Counsel without regard to
the provisions of title 5 of the United States Code, governing appoint-
ments in the competitive service, to serve at the pleasure of the Board.
The General Counsel shall be entitled to receive compensation at the
same rate as the Director of the Board and shall be responsible solely
to the Board. The General Counsel shall perform such duties as may
be delegated or assigned to him from time to time by regulation or
order of the Board.
(c) In any appropriate case where the Board upon its own motion
or upon recommendation of the Director makes a finding of an appar-
ent violation of this Act, it shall refer such case to the United States
Attorney for the District of Columbia for prosecution, and shall make
public the fact of such referral and the basis for such finding. In
addition, the Board, through its General Counsel, shall initiate, main-
tain, defend, or appeal any civil action (in the name of the Board)
relating to the enforcement of the provisions of this Act. The Board
may, through its General Counsel, petition the courts of the District of
Columbia for declaratory or injunctive relief concerning any action
covered by the provisions of this Act.
POWERS OF THE DIRECTOR
SEC. 302. (a) The Director, under regulations of general applica-
bility approved by the Board, shall have the power-
(1) to require any person to submit in writing such reports and
answers to questions as the Director may prescribe relating to
the administration and enforcement of this Act; and such sub-
mission shall be made within such reasonable period and under
oath or otherwise as the Director may determine;
(2) to administer oaths;
(3) to require by subpena the attendance and testimony of
witnesses and the production of all documentary evidence relating
to the execution of its duties;
(4) in any proceeding or investigation to order testimony to
be taken by deposition before any person who is designated by
the Director and has the power to administer oaths and, in such
instances, to compel testimony and the production of evidence in
the same manner as authorized under paragraph (3) of this
subsection;
(5) to pay witnesses the same fees and mileage as are paid in
like circumstances in the Superior Court of the District of
Columbia; and
(6) to accept gifts and voluntary and uncompensated services.
Subpenas issued under this section shall be issued by the Director upon
the approval of the Board.
(b) The Superior Court of the District of Columbia may, upon peti-
tion by the Board, in case of refusal to obey a subpena or order of the
Board issued under subsection (a) of this section, issue an order
requiring compliance therewith; and any failure to obey the order of
the court may be punished by the court as a contempt thereof.
H. R. 15074-10
DUTIES OF THE DIRECTOR
SEC. 303. The Director shall-
(1) develop and furnish (upon request) prescribed forms for
the making of the reports and statements required to be filed with
him under this Act;
(2) develop a filing, coding, and cross-indexing system con-
sonant with the purposes of this Act;
(3) make the reports and statements filed with him available
for public inspection and copying, commencing as soon as prac-
ticable but not later than the end of the second day following the
day during which it was received, and to permit and facilitate
copying of any such report or statement by hand and by duplicat-
ing machine, as requested by any person, at reasonable cost to
such person, except any information copied from such reports and
statements shall not be sold or utilized by any person for the pur-
pose of soliciting contributions or for any commercial purpose;
(4) preserve such reports and statements for a period of ten
years from date of receipt;
(5) compile and maintain a current list of all statements or
parts of statements on file pertaining to each candidate;
(6) prepare and publish such other reports as he may deem
appropriate;
(7) assure dissemination of statistics, summaries, and reports
prepared under this title;
(8) make from time to time audits and field investigations with
respect to reports and statements filed under the provisions of
this title, and with respect to alleged failures to file any report or
statement required under the provisions of this title; and
(9) perform such other duties as the Board may require.
GENERAL ACCOUNTING OFFICE TO ASSIST BOARD AND DIRECTOR
SEC. 304. The Board and Director may, in the performance of its
functions under this Act, request the assistance of the Comptroller
General of the United States, including such investigations and audits
as the Board and Director may determine necessary, and the Comp-
troller General shall provide such assistance with or without reim-
bursement, as the Board and Director and the Comptroller General
shall agree.
NOMINATING COMMITTEE
SEC. 305. (a) Effective January 2, 1975, there is established within
the Government of the District of Columbia a committee to be known
as the "District of Columbia Board of Elections and Ethics Nominat-
ing Committee" (hereinafter in this Act referred to as the "Com-
mittee"). The Committee shall have the function of nominating
individuals for appointment as members of the District of Columbia
Board of Elections and Ethics for any and all vacancies occurring
on such Board on or after the date on which a majority of the mem-
bers first appointed pursuant to this section hold their first meeting
as members of the Committee. Such nominations shall be made by the
Committee in accordance with the provisions of this section. The Com-
mittee shall consist of five members. Within ten days following the
date on which a majority of the members are first appointed pursuant
to this section, such members SO appointed shall hold their first meet-
ing as members of the Committee.
(b) (1) Two members of the Committee shall be appointed by the
Mayor, at least one of whom shall be a lawyer.
H. R. 15074-11
(2) Three members of the Committee shall be appointed by the
Chairman of the Council of the District of Columbia, with the
approval of the Council.
(c) Members of the Committee shall serve for terms of five years,
except that of the members first appointed pursuant to subsection (b)
(1), one shall serve for one year and one for five years, as designated
at the time of appointment, and members appointed pursuant to sub-
section (b) (2), one shall serve for two years, one for three years, and
one for four years, as designated at the time of appointment.
(d) (1) No individual may be appointed as a member of the Commit-
tee unless he or she-
(A) is a citizen of the United States, and
(B) is a resident of the District of Columbia and has maintained
his or her domicile within the District for at least one year imme-
diately preceding the date of his or her appointment, and
(C) is not a member of the Council of the District of Columbia
or an officer or employee of the Government of the District of
Columbia (including the judicial branch).
(2) Any vacancy in the membership of the Committee shall be filled
in the same manner in which the original appointment was made. Any
individual appointed to fill a vacancy, occurring other than upon the
expiration of a term, shall serve only for the remainder of the term
of such individual's predecessor.
(e) Members of the Committee shall be paid for each day spent
performing their duties as members of the Committee at a rate which
is equal to the daily equivalent of the rate provided by step 1 of grade
17 of the General Schedule under section 5332 of title 5, United States
Code.
(f) (1) Except as otherwise provided in subsection (a) of this sec-
tion, the Committee shall act only at meetings called by the Chairman
or a majority of the members thereof and only after notice has been
given of such meeting to all members of the Committee.
(2) The Committee shall choose annually from among its members
a Chairman and such other officers as it deems necessary. The Commit-
tee may adopt such rules of procedure as may be necessary to govern
the business of the Committee.
(3) Each agency of the government of the District of Columbia shall
furnish to the Committee, upon request, such records, information,
services, and such other assistance and facilities as may be necessary to
enable the Committee to perform its function properly. Any informa-
tion furnished to the Committee designated "confidential" by the per-
son furnishing it to the Committee shall be treated by the Committee
as privileged and confidential.
(g) (1) In the event of any such vacancy in the District of Columbia
Board of Elections and Ethics, the Committee shall, within thirty
days after such vacancy occurs, submit a list of three persons as nomi-
nees for appointment by the Mayor to fill the vacancy. If more than one
such vacancy exists at the same time, the Committee shall submit a
separate list of nominees for appointment to fill each such vacancy,
and no individual's name shall appear on more than one such list.
In filling such vacancy, the Mayor may appoint more than one indi-
vidual from any list currently before the Mayor. In any case in which,
after the expiration of the thirty-day period following the date on
which a majority of the members of the Committee first meet as pro-
vided in subsection (a), a vacancy is scheduled to occur, by reason
of the expiration of a term of office, the Committee's list of nominees
for appointment to fill that vacancy shall be submitted to the Mayor
not less than thirty days prior to the expiration of that term.
H. R. 15074-12
(2) If the Mayor fails to submit for Council approval the name
of one of the individuals on a list submitted to the Mayor under this
section within thirty days after receiving such list, the Committee shall
appoint, with the approval of the Council, an individual named on the
list to fill the vacancy for which such list of nominees was prepared.
(3) Any individual whose name is submitted by the Committee as
a nominee for appointment to the District of Columbia Board of
Elections and Ethics may request that the nomination of such indi-
vidual be withdrawn. If any such individual requests that his or her
nomination be withdrawn, dies, or becomes disqualified to serve as a
member of the Board, the Committee shall promptly nominate an
individual to replace the individual originally nominated on the list
submitted to the Mayor.
(h) Members of the Committee shall be appointed as soon as prac-
ticable, but in no event later than June 30, 1975.
DISTRICT OF COLUMBIA BOARD OF ELECTIONS AND ETHICS
SEC. 306. (a) On and after the date of the enactment of this Act,
the Board of Elections of the District of Columbia established
under the District of Columbia Election Act (D.C. Code, sec. 1-1101
et seq.), shall be known as the "District of Columbia Board of Elec-
tions and Ethics" and shall have the powers, duties, and functions as
provided in such Act, in any other law in effect on the date immediately
preceding the date of the enactment of this Act, and in this Act.
Any reference in any law or regulation to the Board of Elections for
the District of Columbia or the District of Columbia Board of Elec-
tions shall, on and after the date of the enactment of this Act, be held
and considered to refer to the District of Columbia Board of Elec-
tions and Ethics.
(b) (1) Any person who violates any provision of this Act or of
the District of Columbia Election Act may be assessed a civil penalty
by the District of Columbia Board of Elections and Ethics under
paragraph (2) of this subsection of not more than $50 for each such
violation. Each occurrence of a violation of this Act and each day of
noncompliance with a disclosure requirement of this Act or an order
of the Board shall constitute a separate offense.
(2) A civil penalty shall be assessed by the Board by order only
after the person charged with a violation has been given an oppor-
tunity for a hearing, and the Board has determined, by decision
incorporating its findings of facts therein, that a violation did occur,
and the amount of the penalty. Any hearing under this section shall
be of record and shall be held in accordance with chapter 5 of title 5,
United States Code.
(3) If the person against whom a civil penalty is assessed fails
to pay the penalty, the Board shall file a petition for enforcement of
its order assessing the penalty in the Superior Court of the District
of Columbia. The petition shall designate the person against whom
the order is sought to be enforced as the respondent. A copy of the
petition shall be forthwith sent by registered or certified mail to the
respondent and his attorney of record, and if the respondent is a
political committee, to the Chairman thereof, and thereupon the Board
shall certify and file in such court the record upon which such order
sought to be enforced was issued. The court shall have jurisdiction to
enter a judgment enforcing, modifying, and enforcing as SO modified,
or setting aside in whole or in part the order and the decision of the
Board or it may remand the proceedings to the Board for such further
action as it may direct. The court may determine de novo all issues
of law but the Board's findings of fact, if supported by substantial
evidence, shall be conclusive.
H. R. 15074-13
(c) Upon application made by any individual holding public office,
any candidate, or any political committee, the Board, through its
General Counsel, shall provide within a reasonable period of time an
advisory opinion, with respect to any specific transaction or activity
inquired of, as to whether such transaction or activity would con-
stitute a violation of any provision of this Act or of any provision of
the District of Columbia Election Act over which the Board has pri-
mary jurisdiction.
TITLE IV-FINANCE LIMITATIONS
GENERAL LIMITATIONS
SEC. 401. (a) No individual shall make any contribution which, and
no person shall receive any contribution from any individual which
when aggregated with all other contributions received from that
individual, relating to a campaign for nomination as a candidate for
election to public office, including both the primary and general or
special elections, exceeds-
(1) in the case of a contribution in support of a candidate for
Mayor, $1,000;
(2) in the case of a contribution in support of a candidate for
Chairman of the Council, $750;
(3) in the case of a contribution in support of a candidate for
member of the Council elected at large, $500;
(4) in the case of a contribution in support of a candidate for
member of the Board of Education elected at large or for mem-
ber of the Council elected from a ward, $200, and in the case of
a runoff election, an additional $200;
(5) in the case of a contribution in support of a candidate for
member of the Board of Education elected from a ward or for
official of a political party, $100, and in case of a runoff election,
an additional $100; and
(6) in the case of a contribution in support of a candidate for
a member of an Advisory Neighborhood Council, $25.
(b) No person (other than an individual with respect to whom sub-
section (a) applies) shall make any contribution which, and no person
shall receive any contribution from any person (other than such an
individual) which when aggregated with all other contributions
received from that person, relating to a campaign for nomination as a
candidate or election to public office, including both the primary and
general or special elections, exceeds-
(1) in the case of a contribution in support of a candidate for
Mayor, $2,000;
(2) in the case of a contribution in support of a candidate for
Chairman of the Council, $1,500;
(3) in the case of a contribution in support of a candidate for
member of the Council elected at large, $1,000;
(4) in the case of a contribution in support of a candidate for
member of the Board of Education elected at large or for mem-
ber of the Council elected from a ward $400, and in the case of a
runoff election, an additional $400;
(5) in the case of a contribution in support of a candidate for
member of the Board of Education elected from a ward or for
official of a political party, $200, and in the case of a runoff elec-
tion, an additional $200; and
(6) in the case of a contribution in support of a candidate for
a member of an Advisory Neighborhood Council, $25.
H. R. 15074-14
For the purposes of this subsection, the term "person" shall include
a candidate making contributions relating to his candidacy for nomi-
nation for election, or election, to office. Notwithstanding the preceding
provisions of this subsection, a candidate for member of the Council
elected from a ward may contribute $1,000 to his own campaign. The
provisions of this subsection to the extent that such provisions are
applicable to corporations and unions shall, to that extent, expire as
of July 1, 1975, unless the Council of the District of Columbia on or
before such date enacts legislation repealing or modifying such pro-
visions or extending such provisions as to corporations and unions on
and after that date. In the event that the Council fails to so repeal,
modify, or extend such provisions as to corporations and labor unions,
the Council shall report its reasons therefor to the Committees on the
District of Columbia of the Senate and the House of Representatives
prior to August 1, 1975.
(c) No individual shall make any contribution in any one election
which when aggregated with all other contributions made by that
individual in that election exceeds $2,000.
(d) (1) Any expenditure made by any person advocating the elec-
tion or defeat of any candidate for office which is not made at the
request or suggestion of the candidate, any agent of the candidate,
or any political committee authorized by the candidate to make expen-
ditures or to receive contributions for the candidate is not considered
a contribution to or an expenditure by or on behalf of the candidate
for the purposes of the limitations specified in this Act.
(2) No person may make any unauthorized expenditure advocating
the election or defeat of a clearly identified candidate during a calen-
dar year which, when added to all other unauthorized expenditures
made by that person during the year advocating the election or
defeat of that candidate, exceeds $1,000.
(3) For purposes of paragraph (2)-
(A) "clearly identified" means—
(i) the candidate's name appears,
(ii) a photograph or drawing of the candidate appears, or
(iii) the identity of the candidate is apparent by unam-
biguous reference,
(B) "person" does not include the central committee of a politi-
cal party, and
(C) "expenditure" does not include any payment made or
incurred by a corporation or labor organization which, under the
provisions of section 610 of title 18 of the United States Code
would not constitute an expenditure by that corporation or labor
organization.
(4) Every candidate shall file a statement with the Board, in such
manner and form and at such times as the Board may prescribe,
authorizing any person or any political committee organized pri-
marily to support the candidacy of such candidate to either directly or
indirectly, receive contributions, or make expenditures in behalf of,
such candidate. No person and no committee organized primarily to
support a single candidate may, either directly or indirectly, receive
contributions or make expenditures in behalf of, such candidate with-
out the written authorization of such candidate as required by this
paragraph.
(e) In no case shall any person receive or make any contribution
in legal tender in an amount of $50 or more.
(f) No person shall make a contribution in the name of another
person, and no person shall knowingly accept a contribution made by
one person in the name of another person.
H. R. 15074-15
(g) For purposes of the limitations contained in this section all
contributions made by any person directly or indirectly to or for the
benefit of a particular candidate, including contributions which are
in any way earmarked, encumbered, or otherwise directed through an
intermediary or conduit to that candidate, shall be treated as con-
tributions from that person to that candidate.
(h) (1) No candidate or member of the immediate family of a can-
didate may make a loan or advance from his personal funds for use in
connection with a campaign of that candidate for nomination for elec-
tion, or for election, to public office unless that loan or advance is
evidenced by a written instrument fully disclosing the terms, condi-
tions, and parts to the loan or advance. The amount of any such loan
or advance shall be included in computing and applying the limita-
tions contained in this section only to extent of the balance of the loan
or advance which is unpaid at the time of determination.
(2) For purposes of this subsection, the term "immediate family"
means the candidate's spouse and any parent, brother, or sister, or
child of the candidate, and the spouse of any such parent, brother,
sister, or child.
LIMITATION OF EXPENDITURES
SEC. 402. (a) (1) No principal campaign committee shall expand
any funds which when aggregated with funds expended by it, all other
committees required to report to it, and by a candidate supported by
such committee shall exceed (1) in the case of a candidate for Mayor,
$200,000 in the aggregate for any primary and general election in
connection therewith, but in no event in excess of $120,000 for one of
such elections and $80,000 for the other of such elections; (2) in the
case of a candidate for Chairman of the Council, $150,000 in the aggre-
gate for any primary and general election in connection therewith,
but in no event in excess of $90,000 for one of such elections and $60,000
for the other of such elections; (3) in the case of a candidate for mem-
ber of the Council elected at large, $100,000 in the aggregate for any
primary and general election in connection therewith, but in no event
in excess of $60,000 for one of such elections and $40,000 for the other
of such elections; (4) in the case of a candidate for member of the
Board of Education elected at large or member of the Council elected
from a ward, $20,000 in the aggregate for any primary and general
election in connection therewith, but in no event in excess of $12,000
for one of such elections and $8,000 for the other of such elections;
(5) in the case of a candidate for member of the Board of Education
elected from a ward, or in support of any candidate for office of a
political party, $10,000 in the aggregate for any primary and general
election in connection therewith, but in no event in excess of $6,000 for
one of such elections and $4,000 for the other of such elections; and
(6) in the case of a candidate for member of an Advisory Neighbor-
hood Council, $500.
(2) At the beginning of each calendar year (commencing in 1976),
as there become available necessary data from the Bureau of Labor
Statistics of the Department of Labor, the Secretary of Labor shall
certify to the Board and the Board shall publish in the District of
Columbia Register the per centum difference between the price index
for the twelve months preceding the beginning of such calendar year
and the price index for 1974. Each amount determined under para-
graph (1) shall be changed by such per centum difference. Each
amount SO changed shall be the amount in effect for such calendar year.
(b) No political committee or candidate shall knowingly expend any
funds at a time when the principal campaign committee to which it
shall report, or which has been designated by him, is precluded by sub-
H. R. 15074-16
section (a) from expending funds or which would cause such principal
committee to be precluded from further expenditures. Any principal
campaign committee of a candidate having reasonable knowledge to
believe that further expenditures by a political committee registered
in support of such candidate, or by the candidate it supports, will
exceed the expenditure limitations specified in subsection (a) shall
immediately notify, in writing, such political committee or candidate
of that fact.
(c) Any expenditure made in connection with a campaign in a
calendar year other than the calendar year in which the election is held
to which that campaign relates is, for the purposes of this section, con-
sidered to be made during the calendar year in which that election is
held.
TITLE V-LOBBYING
DEFINITIONS
SEC. 501. When used in this title-
(a) The term "contribution" includes a gift, subscription, loan,
advance, or deposit of money or anything of value and includes a
contract, promise, or agreement, whether or not legally enforceable, to
make a contribution.
(b) The term "expenditure" includes a payment, distribution, loan,
advance, deposit, or gift of money or anything of value, and includes
a contract, promise, or agreement, whether or not legally enforceable,
to make an expenditure.
(c) The term "legislation" means bills, resolutions, amendments,
nominations, rules, and other matters pending or proposed in the
Council of the District of Columbia, and includes any other matter
which may be the subject of action by the Council of the District of
Columbia.
DETAILED ACCOUNTS OF CONTRIBUTIONS; RETENTION OF RECEIPTED BILLS
OF EXPENDITURES
SEC. 502. (a) It shall be the duty of every person who shall in any
manner solicit or receive a contribution to any organization or fund
for the purposes hereinafter designated to keep a detailed and exact
account of-
(1) all contributions of any amount or of any value whatsoever;
(2) the name and address of every person making any such
contribution of $200 or more and the date thereof;
(3) all expenditures made by or on behalf of such organization
or fund; and
(4) the name and address of every person to whom any such
expenditure is made and the date thereof.
(b) It shall be the duty of such person to obtain and keep a receipted
bill, stating the particulars, for every expenditure of such funds
exceeding $10 in amount, and to preserve all receipted bills and
accounts required to be kept by this section for a period of at least
two years from the date of the filing of the statement containing such
items.
RECEIPTS FOR CONTRIBUTORS
SEC. 503. Every individual who receives a contribution of $200 or
more for any of the purposes hereinafter designated shall within five
days after receipt thereof render to the person or organization for
which such contribution was received a detailed account thereof,
H. R. 15074-17
including the name and address of the person making such contribution
and the date on which received.
STATEMENTS OF ACCOUNTS FILED WITH DIRECTOR
SEC. 504. (a) Every person receiving any contributions or expend-
ing any money for the purposes designated in subparagraph (a) or
(b) of section 506 of this title shall file with the Director between the
first and tenth day of each calendar quarter, a statement containing
complete as of the day next preceding the date of filing-
(1) the name and address of each person who has made a con-
tribution of $200 or more not mentioned in the preceding report;
except that the first report filed pursuant to this title shall contain
the name and address of each person who has made any contribu-
tion of $200 or more to such person since January 2, 1975;
(2) the total sum of the contributions made to or for such per-
son during the calendar year and not stated under paragraph (1)
of this subsection;
(3) the total sum of all contributions made to or for such per-
son during the calendar year;
(4) the name and address of each person to whom an expendi-
ture in one or more items of the aggregate amount or value, within
the calendar year, of $10 or more has been made by or on behalf
of such person, and the amount, date, and purpose of such
expenditure;
(5) the total sum of all expenditures made by or on behalf of
such person during the calendar year and not stated under para-
graph (4) of this subsection;
(6) the total sum of expenditures made by or on behalf of such
person during the calendar year.
(b) The statements required to be filed by subsection (a) of this
section shall be cumulative during the calendar year to which they
relate, but where there has been no change in an item reported in a pre-
vious statement only the amount need be carried forward.
PRESERVATION OF STATEMENTS
SEC. 505. A statement required by this title to be filed with the
Director-
(a) shall be deemed properly filed when deposited in an estab-
lished post office within the prescribed time, duly stamped, reg-
istered, and directed to the Director, Washington, District of
Columbia, but in the event it is not received, a duplicate of such
statement shall be promptly filed upon notice by the Director of
its nonreceipt;
(b) shall be preserved by the Director for a period of two years
from the date of filing, shall constitute part of the public records
of his office, and shall be open to public inspection.
PERSONS TO WHOM TITLE IS APPLICABLE
SEC. 506. The provisions of this title shall apply to any person
(except a political committee) who, by himself, or through any agent
or employee or other persons in any manner whatsoever, directly or
indirectly, solicits, collects, or receives money or any other thing of
value to be used principally to aid, or the principal purpose of which
person is to aid, in the accomplishment of any of the following pur-
poses:
H. R. 15074-18
(a) The passage or defeat of any legislation by the Council of
the District of Columbia.
(b) To influence, directly or indirectly, the passage or defeat
of any legislation by the Council of the District of Columbia.
REGISTRATION OF LOBBYISTS WITH DIRECTOR; COMPILATION OF
INFORMATION
SEC. 507. (a) Any person who shall engage himself for pay or for
any consideration for the purpose of attempting to influence the pas-
sage or defeat of any legislation by the Council of the District of
Columbia shall, before doing anything in furtherance of such object,
register with the Director and shall give to him in writing and under
oath, his name and business address, the name and address of the
person by whom he is employed, and in whose interest he appears or
works, the duration of such employment, how much he is paid and is
to receive, by whom he is paid or is to be paid, how much he is to be
paid for expenses, and what expenses are to be included. Each such
person SO registering shall, between the first and tenth day of each
calendar quarter, SO long as his activity continues, file with the Direc-
tor a detailed report under oath of all money received and expended by
him during the preceding calendar quarter in carrying on his work; to
whom paid; for what purposes; and the names of any papers, periodi-
cals, magazines, or other publications in which he has caused to be
published any articles or editorials; and the proposed legislation he
is employed to support or oppose. The provisions of this section shall
not apply to any person who merely appears before the Council of the
District of Columbia, or a committee thereof, in support of or opposi-
tion to legislation; nor to any public official acting in his official capac-
ity nor in the case of any newspaper or other regularly published
periodical (including any individual who owns, publishes, or is
employed by any such newspaper or periodical) which in the ordinary
course of business publishes news items, editorials, or other comments,
or paid advertisements, which directly or indirectly urge the passage
or defeat of legislation, if such newspaper, periodical, or individual,
engages in no further or other activities in connection with the passage
or defeat of such legislation, other than to appear before a committee
of the Council of the District of Columbia in support of or in opposi-
tion to such legislation.
(b) All information required to be filed under the provisions of
this section with the Director shall be compiled by the Director as soon
as practicable after the close of the calendar quarter with respect to
which such information is filed and shall be printed in the District
of Columbia Register.
REPORTS AND STATEMENTS UNDER OATH
SEC. 508. All reports and statements required under this title shall
be made under oath, before an officer authorized by law to administer
oaths.
PENALTIES AND PROHIBITIONS
SEC. 509. (a) Any person who violates any of the provisions of this
title, shall be guilty of a misdemeanor, and shall be punished by a fine
of not more than $5,000 or imprisonment for not more than twelve
months, or both.
(b) In addition to the penalties provided for in subsection (a) of
this section, any person convicted of the misdemeanor specified
H. R. 15074-19
therein is prohibited, for a period of three years from the date of such
conviction, from attempting to influence, directly or indirectly, the
passage or defeat of any proposed legislation or from appearing before
a committee of the Council of the District of Columbia in support of
or opposition to proposed legislation; and any person who violates any
provision of this subsection shall be guilty of a felony, and shall be
punished by a fine of not more than $10,000, or imprisonment for not
more than five years, or both.
EXEMPTION
SEC. 510. The provisions of this title shall not apply to-
(1) any Member of the United States House of Representatives
or any Senator;
(2) any member of a staff of any person specified in para-
graph (1) while operating within the scope of his employment;
(3) any member of an Advisory Neighborhood Council;
(4) any person who receives less than $500 during the calendar
year as compensation for performing services relating to the
influencing of legislation; or
(5) any entity specified in section 1(d) of title II of the Dis-
trict of Columbia Income and Franchise Tax Act of 1947 (D.C.
Code, sec. 47-1554(d)), no substantial part of the activities of
which is carrying on propaganda, or otherwise attempting to
influence legislation.
TITLE VI-CONFLICT OF INTEREST AND DISCLOSURE
CONFLICT OF INTEREST
SEC. 601. (a) The Congress declares that elective and public office
is a public trust, and any effort to realize personal gain through official
conduct is a violation of that trust.
(b) No public official shall use his official position or office to obtain
financial gain for himself, any member of his household, or any busi-
ness with which he or a member of his household is associated, other
than that compensation provided by law for said public official.
(c) No person shall offer or give to a public official or a member of a
public official's household, and no public official shall solicit or receive
anything of value, including a gift, favor, service, loan gratuity, dis-
count, hospitality, political contribution, or promise of future employ-
ment, based on any understanding that such public official's official
actions or judgment or vote would be influenced thereby, or where it
could reasonably be inferred that the thing of value would influence
the public official in the discharge of his duties, or as a reward, or which
would cause the total value of such things received from the same per-
son not a member of such public official's household to exceed $100
during any single calendar year.
(d) No person shall offer or pay to a public official, and no public
official shall solicit or receive any money, in addition to that lawfully
received by the public official in his official capacity, for advice or
assistance given in the course of the public official's employment or
relating to his employment.
(e) No public official shall use or disclose confidential information
given in the course of or by reason of his official position or activities
in any way that could result in financial gain for himself or for any
other person.
H. R. 15074-20
(f) No member or employee of the Council of the District of Colum-
bia or Board of Education of the District of Columbia shall accept
assignment to serve on a committee the jurisdiction of which consists
of matters (other than of a de minimis nature) in which he or a mem-
ber of his family or a business with which he is associated, has financial
interest.
(g) Any public official who, in the discharge of his official duties,
would be required to take an action or make a decision that would affect
directly or indirectly his financial interests or those of a member of
his household, or a business with which he is associated, or must take
an official action on a matter as to which he has a conflict situation
created by a personal, family, or client interest, shall-
(1) prepare a written statement describing the matter requir-
ing action or decision, and the nature of his potential conflict of
interest with respect to such action or decision;
(2) cause copies of such statement to be delivered to the District
of Columbia Board of Elections and Ethics (referred to in this
title as the "Board"), and to his immediate superior, if any;
(3) if he is a member of the Council of the District of Columbia
or member of the Board of Education of the District of Columbia,
or employee of either, deliver a copy of such statement to the
Chairman thereof, who shall cause such statement to be printed in
the record of proceedings, and, upon request of said member or
employee, shall excuse the member from votes, deliberations, and
other action on the matter on which a potential conflict exists;
(4) if he is not a member of the Council of the District of
Columbia, his superior, if any, shall assign the matter to another
employee who does not have a potential conflict of interest, or, if
he has no immediate superior, he shall take such steps as the
Board prescribes through rules and regulations to remove him-
self from influence over actions and decisions on the matter on
which potential conflict exists; and
(5) during a period when a charge of conflict of interest is
under investigation by the Board, if he is not a member of the
Council of the District of Columbia or a member of the Board of
Education, his superior, if any, shall have the arbitrary power to
assign the matter to another employee who does not have a poten-
tial conflict of interest, or if he has no immediate superior, he
shall take such steps as the Board shall prescribe through rules
and regulations to remove himself from influence over actions and
decisions on the matter on which there is a conflict of interest.
(h) Neither the Mayor nor any member of the Council of the Dis-
trict of Columbia may represent another person before any regulatory
agency or court of the District of Columbia while serving in such
office. The preceding sentence does not apply to an appearance by such
an official before any such agency or court in his official capacity.
(i) As used in this section, the term-
(1) "public official" means the office of the Mayor of the Dis-
trict of Columbia, Chairman of the Council of the District of
Columbia, or member of the Council of the District of Columbia,
or Chairman or member of the Board of Education of the District
of Columbia, or each officer or employee of the District of Colum-
bia government who performs duties of the type generally per-
formed by an individual occupying grade GS-15 of the General
Schedule or any higher grade or position (as determined by the
Board regardless of the rate of compensation of such individual) ;
(2) "business" means any corporation, partnership, sole pro-
H. R. 15074-21
prietorship, firm, enterprise, franchise, association, organization,
self-employed individual, holding company, joint stock, trust, and
any legal entity through which business is conducted for profit;
(3) "business with which he is associated" means any business
of which the person or member of his household is a director,
officer, owner, employee, or holder of stock worth $1,000 or more at
fair market value, and any business which is a client of that
person;
(4) "household" means the public official and his immediate
family; and
(5) "immediate family" means the public official's spouse and
any parent, brother, or sister, or child of the public official, and
the spouse of any such parent, brother, sister, or child.
DISCLOSURE OF FINANCIAL INTEREST
SEC. 602. (a) Any candidate for nomination for election, or election,
to public office who at the time he becomes a candidate, does not occupy
any such office, shall file within one month after he becomes a candi-
date for such office, and the Mayor, and the Chairman and each mem-
ber of the Council of the District of Columbia holding office under the
District of Columbia Self-Government and Governmental Reorgani-
zation Act, and the Chairman and each member of the Board of
Education, shall file annually, with the Board a report containing a
full and complete statement of-
(1) the amount and source of each item of income, each item
of reimbursement for any expenditure, and each gift or aggregate
of gifts from one source (other than gifts received by him or by
him and his spouse jointly during the preceding calendar year)
which exceeds $100 in amount or value, including any fee or other
honorarium received by him for or in connection with the
preparation or delivery of any speech or address, attendance at
any convention or other assembly of individuals, or the prepara-
tion of any article or other composition for publication, and the
monetary value of subsistence, entertainment, travel, and other
facilities received by him in kind;
(2) the identity of each asset held by him, or by him and
his spouse jointly which has a value in excess of $1,000, and the
identity and amount of each liability owned by him, or by him
and his spouse jointly, which is in excess of $1,000 as of the close
of the preceding calendar year;
(3) any transactions in securities of any business entity by
him, or by him and his spouse jointly, or by any person acting
on his behalf or pursuant to his direction during the preceding
calendar year if the aggregate amount involved in transactions
in the securities of such business entity exceeds $5,000 during such
year;
(4) all transactions in commodities by him, or by him and his
spouse jointly, or by any person acting on his behalf, or pursuant
to his direction during the preceding calendar year if the aggre-
gate amount involved in such transactions exceeds $5,000;
(5) any purchase or sale, other than the purchase or sale of
his personal residence, of real property or any interest therein
by him, or by him and his spouse jointly, or by any person acting
on his behalf or pursuant to his direction, during the preceding
calendar year if the value of property involved in such purchase
or sale exceeds $5,000; and
H. R. 15074-22
(6) the amount of each tax paid by the individual, or by the
individual and the individual's spouse filing jointly, for the pre-
ceding calendar year, except in the case of candidates filing
reports during calendar year 1974, who shall file reports for the
preceding three calendar years.
(b) Any candidate for nomination for, or election to, office who at
the time he becomes a candidate, does not occupy any such office, shall
file within one month after he becomes a candidate for such office, and
the Mayor, and the Chairman and each member of the Council of the
District of Columbia holding office under the District of Columbia
Self-Government and Governmental Reorganization Act, and the
Chairman and each member of the Board of Education, and each officer
and employee of the District of Columbia government who performs
duties of the type generally performed by an individual occupying
grade GS-15 of the General Schedule under section 5332 of title 5,
United States Code, or any higher grade or position (as determined
by the Board regardless of the rate of compensation of such indi-
vidual), shall file with the Board in a sealed envelope marked "Confi-
dential Personal Financial Disclosure of (name)", before the fifteenth
day of May in each year, the following reports of his personal financial
interests:
(1) a copy of the returns of taxes, declarations, statements, or
other documents which he, or he and his spouse jointly, made for
the preceding year in compliance with the income tax provisions
of the Internal Revenue Code of 1954;
(2) the name and address of each business or professional cor-
poration, firm, or enterprise in which he was an officer, direc-
tor, partner, proprietor, or employee who received compensation
during the preceding year and the amount of such compensation;
(3) the identity of each trust or other fiduciary relation in which
he held a beneficial interest having a value of $10,000 or more,
and the identity, if known, of each interest of the other fiduciary
relation in real or personal property in which the candidate,
officer, or employee held a beneficial interest having a value of
$10,000 or more, at any time during the preceding year. If he can-
not obtain the identity of the fiduciary interests, the candidate,
officer, or employee shall request the fiduciary to report that infor-
mation to the Board in the same manner that reports are filed
under this rule.
(c) Except as otherwise provided by this section, all papers filed
under this section shall be kept by the Board in the custody of the
Director for not less than seven years, and while SO kept shall remain
sealed. Upon receipt of a request by any member of the Board
adopted by a recorded majority vote of the full Board requesting the
examination and audit of any of the reports filed by any individual
under section (b) of this title, the Director shall transmit to the Board
the envelopes containing such reports. Within a reasonable time after
such recorded vote has been taken, the individual concerned shall be
informed of the vote to examine and audit, and shall be advised of the
nature and scope of such examination. When any sealed envelope con-
taining any such report is received by the Director, such envelope may
be opened and the contents thereof may be examined only by members
of the Board in executive session. If, upon such examination, the Board
determines that further consideration by the Board is warranted and
within the jurisdiction of the Board, it may make the contents of any
such envelope available for any use by any member of the Board, or
the Director or General Counsel of the Board which is required for
the discharge of his official duties. The Board may receive the papers
as evidence, after giving to the individual concerned due notice and
H. R. 15074-23
opportunity for hearing in a closed session. The Board shall publicly
disclose not later than the first day of June each year the names of
the candidates, officers, and employees who have filed a report. Any
paper which has been filed with the Board for longer than seven years,
in accordance with the provisions of this section, shall be returned to
the individual concerned or his legal representative. In the event of
the death or termination of the service of the Mayor or Chairman
or member of the Council of the District of Columbia or Chairman
or member of the Board of Education, or officer or employee of the Dis-
trict of Columbia, such papers shall be returned unopened to such
individual, or to the surviving spouse or legal representative of such
individual within one year of such date or termination of service.
(d) Reports required by this section (other than reports SO required
by candidates) shall be filed not later than sixty days following the
enactment of this Act, and not later than May 15 of each succeeding
year. In the case of any person who ceases, prior to such date in any
year, to occupy the office or position the occupancy of which imposes
upon him the reporting requirements contained in subsection (a)
shall file such report on the last day he occupies such office or position,
or on such later date, not more than three months fter such last day,
as the Board may prescribe.
(e) Reports required by this section shall be in such form and detail
as the Board may prescribe. The Board may provide for the grouping
of items of income, sources of income, assets, liabilities, dealings in
securities or commodities, and purchases and sales of real property,
when separate itemization is not feasible or is not necessary for an
accurate disclosure of the income, net worth, dealing in securities and
commodities or purchases, and sales of rental property of any
individual.
(f) All public reports filed under this section shall be maintained
by the Board as public records which, under such reasonable regula-
tions as it shall prescribe, shall be available for inspection by mem-
bers of the public.
(g) For the purposes of any report required bv this section, any
individual shall be considered to have been Mayor, Chairman, or mem-
ber of the Council of the District of Columbia, or Chairman or mem-
ber of the Board of Education, or officer or employee of the District of
Columbia during any calendar year if such individual served in any
such position for more than six months during such calendar year.
(h) For purposes of this section, the term-
(1) "income" means gross income as defined in section 61 of the
Internal Revenue Code of 1954;
(2) "security" means security as defined in section 2 of the
Securities Act of 1933, as amended (15 U.S.C. 77b)
(3) "commodity" means commodity as defined in section 2 of
the Commodities Exchange Act, as amended (7 U.S.C. 2) ;
(4) "transactions in securities or commodities" means any
acquisition, holding, withholding, use, transfer, or other dis-
position involving any security or commodity;
(5) "immediate family" means the child, parent, grandparent,
brother, or sister of an individual, and the spouse of such person;
and
(6) "tax" means the taxes imposed under chapter 1 of the
Internal Revenue Code of 1954, under the District of Columbia
Revenue Act of 1947, and under the District of Columbia Public
Works Act of 1954 and any other provision of law relating to the
taxation of property within the District of Columbia.
H. R. 15074-24
TITLE VII-PENALTIES AND ENFORCEMENT TAX
CREDITS, USE OF SURPLUS CAMPAIGN FUNDS, VOT-
ERS' INFORMATION PAMPHLETS, STUDY OF 1974
ELECTION AND REPORT BY COUNCIL, EFFECTIVE
DATES, AMENDMENTS TO DISTRICT OF COLUMBIA
ELECTION ACT, AND AUTHORIZATION
PENALTIES AND ENFORCEMENT
SEC. 701. (a) Except as provided in subsection (b), any person or
political committee who violates any of the provisions of this Act shall
be fined not more than $5,000, or shall be imprisoned for not longer
than six months, or both.
(b) Any person who knowingly files any false or misleading state-
ment, report, voucher, or other paper, or makes any false or misleading
statement to the Board, shall be fined not more than $10,000, or shall
be imprisoned for not longer than five years, or both.
(c) The penalties provided in this section shall not apply to any
person or political committee who, before the date of enactment of
this Act during calendar year 1974, makes political contributions or
receives political contributions or makes any political campaign
expenditures, in excess of any limitation placed on such contributions
or expenditures by this Act, except such person or political committee
shall not make any further such contributions or expenditures during
the remainder of calendar year 1974.
(d) Prosecutions of violations of this Act shall be brought by the
United States Attorney for the District of Columbia in the name of
the United States.
TAX CREDIT FOR CAMPAIGN CONTRIBUTIONS
SEC. 702. (a) Title VI of article I of the District of Columbia
Income and Franchise Tax Act of 1947 (D.C. Code, secs. 47-1567-
47-1567e) is amended by adding at the end of that title the following:
"SEC. 7. (a) Credit for Campaign Contributions.-For the purpose
of encouraging residents of the District to participate in the election
process in the District, there shall be allowed to an individual a credit
against the tax (if any) imposed by this article in an amount equal
to 50 per centum of any campaign contribution made to any candidate
for election to any office referred to in the first section of the District
of Columbia Election Act, but in no event shall such credit exceed the
amount of $12.50, or $25 in the case of married persons filing a joint
return.
"(b) (1) A husband and wife filing separate returns for a taxable
year for which a joint return could have been made by them may claim
between them only the total credit (or refund) to which they would
have been entitled under this section had a joint return been filed.
"(2) No individual for whom a personal exemption was allowed on
another individual's return shall be entitled to a credit (or refund)
under this section.".
(b) The table of contents of such article is amended by adding at
the end of the part of such table relating to title VI the following:
"Sec. 7. Credit for campaign contributions.".
USE OF SURPLUS CAMPAIGN FUNDS
SEC. 703. Within the limitations specified in this Act, any surplus,
residual, or unexpended campaign funds received by or on behalf of
an individual who seeks nomination for election, or election to office
shall be contributed to a political party for political purposes, used to
retire the proper debts of his political committee which received such
funds, or returned to the donors as follows:
H. R. 15074-25
(1) in the case of an individual defeated in an election, within
six months following such election;
(2) in the case of an individual elected to office, within six
months following such election; and
(3) in the case of an individual ceasing to be a candidate, within
six months thereafter.
A STUDY OF 1974 ELECTION AND REPORT BY COUNCIL
SEC. 704. (a) The Council of the District of Columbia shall, during
calendar year 1975, conduct public hearings and other appropriate
investigations on (1) the operation and effect of the District of Colum-
bia Campaign Finance Reform Act and the District of Columbia
Election Act on the elections held in the District of Columbia during
1974; and (2) the necessity and desirability of modifying either or
both of those Acts SO as to improve electoral machinery and to insure
open fair, and effective election campaigns in the District of Columbia.
(b) Upon the conclusion of its hearings and investigations the
Council shall issue a public report on its findings and recommenda-
tions. Nothing in this section shall be construed as limiting the legisla-
tive authority over elections in the District of Columbia vested in the
Council by the District of Columbia Self-Government and Govern-
mental Reorganization Act.
EFFECTIVE DATES
SEC. 705. (a) Titles II and IV of this Act shall take effect on the
date of enactment of this Act, except the first report or statement
required to be filed by any individual or political committee under the
provisions of such titles shall include that information required under
section 13(e) of the District of Columbia Election Act (D.C. Code,
sec. 1-1113(e)) with respect to contributions and expenditures made
before the date of enactment of this Act, but after January 1, 1974.
(b) Titles I, III, VI and VII of this Act shall take effect on the
date of enactment of this Act.
(c) Title V of this Act shall take effect January 2, 1975.
AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT
SEC. 706. (a) Section 13 of the District of Columbia Election Act
(D.C. Code, sec. 1-1113) is amended to read as follows:
"AUTHORIZATION
"SEC. 13. There are hereby authorized to be appropriated, out of any
money in the Treasury to the credit of the District of Columbia not
otherwise appropriated, such sums as are necessary to carry out the
purposes of this Act.".
(b) The first sentence of subsection (b) of section 4 of such Act
(D.C. Code, sec. 1-1104) is amended to read as follows:
"(b) Each member of the Board shall be paid compensation at the
rate of $100 for each eight hour period with a limit of $12,500 per
annum, while performing duties under this Act, except during 1974
such compensation shall be paid without regard to such annual
limitation.".
(c) The amendment made by subsection (a) shall not affect the
liability of any person arising out of any violation of section 13 of the
District of Columbia Election Act committed before the date of enact-
ment of this title, and any action commenced with respect to such a
violation shall not abate.
H. R. 15074-26
AUTHORITY OF COUNCIL
SEC. 707. Notwithstanding any other provision of law, or any rule
of law, nothing in this Act shall be construed as limiting the authority
of the District of Columbia Council to enact any act or resolution,
after January 2, 1975, pursuant to the District of Columbia Self-Gov-
ernment and Governmental Reorganization Act with respect to any
matter covered by this Act.
AUTHORIZATION OF APPROPRIATION
SEC. 708. Amounts authorized under section 722 of the District of
Columbia Self-Government and Governmental Reorganization Act
may be used to carry out the purposes of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
H.R. 15074
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
LIBRARY
FORD
An Act
GERALD
To regulate certain political campaign finance practices in the District of
Columbia, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I-SHORT TITLE, DEFINITIONS
Sec. 101. Short title.
Sec. 102. Definitions.
TITLE II-FINANCIAL DISCLOSURES
Sec. 201. Organization of political committees.
Sec. 202. Principal campaign committee.
Sec. 203. Designation of campaign depository.
Sec. 204. Registration of political committees; statements.
Sec. 205. Registration of candidates.
Sec. 206. Reports by political committees and candidates.
Sec. 207. Reports by others than political committees.
Sec. 208. Formal requirements respecting reports and statements.
Sec. 209. Exemption for candidates who anticipate spending less than $250.
Sec. 210. Identification of campaign literature.
Sec. 211. Effect on liability.
TITLE III-DIRECTOR OF CAMPAIGN FINANCE
Sec. 301. Establishment of the Office of Director.
Sec. 302. Powers of the Director.
Sec. 303. Duties of the Director.
Sec. 304. General Accounting Office to assist Board and Director.
Sec. 305. Nominating committee.
Sec. 306. District of Columbia Board of Elections and Ethics.
TITLE IV-FINANCE LIMITATIONS
Sec. 401. General limitations.
Sec. 402. Limitation on expenditures.
TITLE V-LOBBYING
Sec. 501. Definitions.
Sec. 502. Detailed accounts of contributions; retention of receipted bills of
expenditures.
Sec. 503. Receipts for contributions.
Sec. 504. Statements of accounts filed with Director.
Sec. 505. Preservation of statements.
Sec. 506. Persons to whom title is applicable.
Sec. 507. Registration of lobbyists with Director; compilation of information.
Sec. 508. Reports and statements under oath.
Sec. 509. Penalties and prohibitions.
Sec. 510. Exemptions.
TITLE VI-CONFLICT OF INTEREST AND DISCLOSURE
Sec. 601. Conflict of interest.
Sec. 602. Disclosure of financial interest.
TITLE VII-PENALTIES AND ENFORCEMENT TAX CREDITS, USE OF
SURPLUS CAMPAIGN FUNDS, VOTERS' INFORMATION PAMPHLETS,
STUDY OF 1974 AND REPORT BY COUNCIL, EFFECTIVE DATES,
AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT, AND
AUTHORIZATION
Sec. 701. Penalties and enforcement.
Sec. 702. Tax credit for campaign contributions.
Sec. 703. Use of surplus campaign funds.
Sec. 704. A study of 1974 election and report by Council.
Sec. 705. Effective dates.
Sec. 706. Amendments to District of Columbia Election Act.
Sec. 707. Authority of Council.
Sec. 708. Authorization of appropriation.
August 6, 1974
Dear Mr. Director:
The following bills were received at the White
House on August 6th:
S.J. Res. 228
S. 2296
S. 3669
H.R. 14012
H.R. 15074
Please let the President have reports and
recommendations as to the approval of these
bills as soon as possible.
Sincerely,
FORD LTBRARY & GERALD
Robert D. Linder
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.