Campaign Practices

Gilbert, Ben W., Director, District of Columbia Executive Office..
Myers, Tedson J., Member, District of Columbia City Council..
Nevius, John A., Chairman, District of Columbia City Council
Perkins, Norval E., Executive Secretary, District of Columbia Board
of Elections_

Staff report, District of Columbia government, campaign expenditures
(Apr. 19, 1974) -

367

CAMPAIGN FINANCE PRACTICES

MONDAY, MAY 20, 1974

HOUSE OF REPRESENTATIVES,

COMMITTEE ON THE DISTRICT OF COLUMBIA,

Washington, D.C.

The full committee met, pursuant to notice, at 10:35 a.m., in room 1310, Longworth House Office Building, The Honorable Donald M. Fraser, presiding.

Present: Representatives Fraser (presiding), Adams, Fauntroy, Breckinridge and Gude.

Also present: Robert B. Washington, Jr., Chief Counsel; James T. Clark, Legislative Counsel; John Hogan, Minority Counsel; Leonard O. Hilder and Ralph Ulmer, Professional Staff Members.

Mr. FRASER. The Committee will come to order.

The bill we are considering today (H.R. 14754) has far-reaching importance for self-government in the Nation's capital. We hope to enact a law that will make the first municipal elections in 100 years free from domination by large contributors and open to scrutiny by the public.

I am pleased that the District Government has already taken action. to strengthen the Board of Elections, and that the Board, acting under the 1971 law passed by Congress, is adopting regulations putting into effect immediately many of the definitions and policies included in the bill H.R. 14754. The Board has new forms to be filed by candidates and by committees patterned after the GAO forms used for elections for Federal offices.

The testimony we hops to hear today falls in several categories. First, the city officials Corporation Counsel Frank Murphy and Chairman Fisher and others from the Board of Elections-have been asked to comment on two new features in the bill.

First is Title III which turns the job of administering the law during the next year and a half over to two people appointed by the Unified Bar of D.C. who, together with the Board of Elections Chairman would be an independent division within the Board of Elections with their own General Counsel and Executive Director.

Second is a new provision for a voters information pamphlet to be mailed to all registered voters before the primary next September and again before the General Election in November. The pamphlet would contain a picture of every candidate and a statement provided by the candidate. I trust that the city witnesses will comment on the potential cost and feasibility of that idea.

Among our witnesses today and tomorrow are a number of candidates for city council and mayor-the people most directly regulated by this proposed law. They will tell us how various sections of this

(243)

bill will affect them and their campaign plans. Early in April when hearings were first held, there were no official candidates because the Home Rule Charter was not approved by the voters until a month later. We think we have drafted a good bill, but it needs close scrutiny by the candidates who will have the day to day task of informing the public on the issues, of collecting the contributions to make the campaign possible, and of keeping records and reporting to the public where the contributions came from and where they were spent.

On other portions of the bill, statements are being filed from business groups and a witness representing organized labor will comment on the limitations in the bill on the way union members can contribute to candidates.

In addition there are proposed amendments to the bill which will have to be considered at full committee mark-up. These cover registration of lobbyists, financial disclosure by candidates and city employees, and conflict of interest by city officials. I hope witnesses will deal with these matters as an aid to members who will have to vote on these issues later.

[The bill, H.R. 14754, as reported by the Subcommittee on Government Operations, follows:]

H.R. 14754, 93d CONG., 2d Sess,

By Mr. Adams (for himself, Mr. Diggs, Mr. Fraser, Mr. Breckinridge, Mr. Fauntry, and Mr. Howard on May 14, 1974.)

A BILL 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 in Congress assembled,

TITLE I-SHORT TITLE, DEFINITIONS

SHORT TITLE

SEC. 101. This Act may be cited as the "District of Columbia Campaign Finance Reform Act".

DEFINITIONS

SEC. 102. When used in this Act

(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 nomination for election, or election, to office, whether or not such individual is elected, and, for purposes of this paragraph, an individual shall be deemed to seek nomination for election, or election, if he has (1) obtained or authorized any other person to obtain nominating petitions to qualify himself for nomination for election, or election, to office, or (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. 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 Delegate to the House of Representatives from the District of Columbia, 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 committee women;

(2) delegates to conventions of political parties nominating candidates for the Presidency and Vice Presidency of the United States;

(3) alternates to the officials referred to in clauses (1) and (2) above, where permitted by political party rules; and

(4) such members and officials of local committees of political parties as may be designated by the duly authorized local committees 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 (including 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 election of an individual to office. Such term shall include any committee, association, political fund, or other organization sponsored by or affiliated with a corporation or labor organization that is engaged in permissible activities under section 401 (f) of this Act. (f) The term "contribution" means

(1) a gift, subscription (including any assessment, fee, or membership dues), loan, advance, or deposit of money or anything of value, made for the purpose of financing, directly or indirectly, the election campaign of a candidate or any operations of a political committee;

(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;

(4) the payment, by any person other than a candidate or political 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; and

(5) notwithstanding the foregoing provisions of this paragraph, such term shall not be construed to include services provided without compensation, by individuals volunteering a portion or all of their time on behalf of a candidate or political committee.

(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 candidate or any operations of a political committee;

(2) a contract, promise, or agreement, whether or not legally enforceable, to make an expenditure;

(3) a transfer of funds between political committees; and

(4) notwithstanding the foregoing provisions of this paragraph, such term shall not be construed to include the incidental expenses (as defined by the Division) 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, committee, association, corporation, labor organization, and any other organization or group of persons.

(i) The term "Division" means the Division of Campaign Finance of the District of Columbia Board of Elections created by title III.

(j) The definitions of "contribution" and "expenditure" (provided in subsections (f) and (g) of this section) shall not be construed to include any payment made or incurred by a corporation or a labor organization which, under the provisions of the last paragraph of section 401 (f), would not constitute a contribution or a contribution by that corporation or labor organization.

(k) 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 Colunmbia 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.

(1) The term "Board" means the District of Columbia Board of Elections established under the District of Columbia Election Act (D.C. Code, sec. 1-1101 et seq).

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 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 designated agents.

(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 occupation 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 occupation 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 reserve such receipted bills and records as may be required by the Division.

(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 Division of Campaign Finance of the District of Columbia Board of Elections.".

PRINCIPAL CAMPAIGN COMMITTEE

SEC. 202. (a) Each candidate for office shall designate in writing one political committee as his principal campaign committee. The principal 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 committee. 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 candidate, 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 Division 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 statements filed with or furnished to it or him by other political committees, consolidate, and furnish the reports and statements to the Division, together with the reports and statements of the central 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 Division.

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