(1) in the case of a contribution in support of a candidate for Mayor or Delegate, $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 member of the Council elected from a ward, $200; and

(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.

(b) No person (other than an individual with respect to whom subsection (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 single election, exceeds

(1) in the case of a contribution in support of a candidate for Mayor or Delegate, $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 a member of the Council elected from a ward, $400; and

(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.

For the purposes of this subsection, the term "person" shall include a candidate making contributions relating to his candidacy for nomination for election, or election, to office.

(c) Except (1) a principal campaign committee making expenditures within the limitations specified in section 402, (2) a political party, and (3) any political committee which receives funds solely from a principal campaign committee, no individual shall make any contribution or expenditure in any one election which when aggregated with all other contributions and expenditures made by that individual in that election exceeds $2,000, and no person (other than an individual) shall make any such contribution or expenditure in excess of $4,000.

(d) In no case shall any person receive or make any contribution in legal tender in an amount of $50 or more.

(e) 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.

(f) No corporation or labor organization may make any contribution or expenditure for the purpose of promoting or opposing any political party, political committee, or candidate for nomination or election to office in the District of Columbia. No person may accept from a corporation, bank, or labor organization any contribution for an election in the District of Columbia. This section does not prohibit communications by a corporation to its stockholders and their families or by a labor organization to its members and their families on any subject; nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its stockholders and their families, or by a labor organization aimed at its members and their families; the establishment, administration, and solicitation of contributions to a separate segregated fund to be utilized for political purposes by a corporation or labor organization. In addition, the provisions of this subsection shall not apply to any principal campaign committee or political party which is incorporated.

(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 contributions from that person to that candidate.

LIMITATION ON EXPENDITURES

SEC. 402. (a) (1) No principal campaign committee shall expend 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 in any single campaign $100,000 for a candidate for Mayor or Delegate, $75,000 for a candidate for Chairman of the Council, $50,000 for a candidate for member of the Council elected at large, or $20,000 for a candidate for member of the Board of Education elected at large or member of the Council elected from a ward, or $10,000 for a candidate for member of the Board of Education elected from a ward, or in support of any candidate for officer of a political party.

(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 Division and 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 paragraph (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 subsection (a) from expending funds or which would cause such principal campaign 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. TITLE V-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

PENALTIES AND ENFORCEMENT

SEC. 501. (a) 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) The penalties provided in subsection (a) 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.

(c) 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. 502. (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 an 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. 503. Within the limitation specified in this Act, any surplus or unexpended campaign funds may be contributed to a political party for political purposes, or may be used to retire the proper debts of the political committee which received such funds. In addition, such funds may be contributed to educational or charitable organizations, or may be preserved for use in future campaigns of that candidate for whom the funds were contributed for the same office.

VOTER'S INFORMATION PAMPHLETS

SEC. 504. (a) Not sooner than thirty-five days nor later than twenty days prior to each election (except a runoff election), the Board shall mail to each registered qualified elector a voters' information pamphlet containing campaign statements and photographs of candidates in that election who submit such information, as provided in this section.

(b) Not later than forty-five days before each election, any qualified candidate (as determined by the Board) seeking nomination or election in that election may file with the Board a photograph of the candidate and a typewritten statement (which shall include no drawings or other illustrate material) setting forth the(1) full name of the candidate, the office sought, and his party affiliation, if any; and include

(2) reasons why the candidate believes he should be nominated or elected to office.

No such statement or photograph of any person who is the sole candidate for election for any office shall be included in the pamphlet.

(c) Each candidate for nomination or election to an office elected at-large may submit statements not to exceed two hundred fifty words and such a candidate for office elected from a ward may submit statements not to exceed one hundred fifty words.

(d) Each candidate for nomination or election to an office elected at-large shall be allowed no more than one-half of a page of space, and each candidate for nomination or election to any other office shall be allowed no more than onequarter of a page of space, in the voters' pamphlet.

(e) Each candidate who submits a statement and portrait cut for inclusion in the voters' information pamphlet shall pay to the Board a fee as follows:

(1) Candidates for an office elected at-large shall pay a fee of $100. (2) Candidates for office elected from a ward shall pay a fee of $75. (f) No statement submitted by any candidate shall contain any obscene, profane, libelous or defamatory matter, as determined by the Board. The Board shall, within three days after receipt, notify a candidate that a statement or portion of such statement contains such matter. Within five days after a candidate has been so notified by the Board, he may request and shall be granted a hearing by the Board. A decision by the Board shall be final upon the acceptance or rejection of the matter in controversy.

(g) The Board may include in the voters' information pamphlets information regarding voter registration, polling places, election districts, and other similar matter.

(h) For the purposes of this section, the term "photograph" means a conventional photograph, not more than three years old, of the face or face and bust of a candidate (which shall not include more than the head, neck and shoulders of the candidate), and not a cartoon, caricature or similar representation, suitably prepared and processed for printing as prescribed by the Board. A portrait cut shall not show the candidate wearing a military, police or other uniform, or a judicial robe. The background shown in the portrait cut shall be plain.

A STUDY OF 1974 ELECTION AND REPORT BY COUNCIL

SEC. 505. (a) The District of Columbia Council shall, during calendar year 1975, conduct public hearings and other appropriate investigations on (1) the operation and effect of the District of Columbia 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. Such hearings and investigations shall consider, but not be limited to, the following: (A) The provision of partial or complete public financing of elections in the District of Columbia.

(B) The assurance of fair and impartial administration and enforcement of campaign finance laws in the District of Columbia, through the creation of an independent commission, the restructuring of the Board of Elections, or other appropriate means.

(C) The modification of the election laws in the District of Columbia to require comparative signature books at voting places, voting machines, frequent purging of ineligible voters, and other means to prevent voting fraud. (D) The regulation of lobbying activities.

(E) The modification of expenditure and contribution limitations specified in this Act in order that campaign costs can be maintained at the lowest level at which full and fair election campaigns can be waged.

(F) The advisability of an act for the District of Columbia relating to the question of conflict of interest, and requiring the disclosure of the financial interests of candidates for public office, public officials, and of certain government employees.

(G) The regulation of campaign practices (including campaign finance matters) of political party officials and political parties.

(b) Upon the conclusion of its hearings and investigations the Council shall issue a public report on its findings and recommendations. Nothing in this section shall be construed as limiting the legislative authority over elections in the District of Columbia vested in the Council by the District of Columbia SelfGovernment and Governmental Reorganization Act.

EFFECTIVE DATES

SEC. 506. (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, and V of this Act shall take effect on the date of enactment of this Act.

AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT

SEC. 507. (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 $75 per day with a limit of $11.250 per annum, while performing duties under this Act, except during 1974 such compensation shall be paid without regard to such annual limitation.".

(c) The last sentence of section 3 of such Act (D.C. Code, sec. 1-1103) is amended by inserting ", who shall serve in a full-time capacity" immediately after "Board".

(d) 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 enactment of this title, and any action commenced with respect to such a violation shall not abate.

AUTHORIZATION OF APPROPRIATION

Sec. 508. 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.

STAFF SUMMARY OF PROVISIONS, "DISTRICT OF COLUMBIA CAMPAIGN FINANCE 1 REFORM ACT"

As Reported from the Government Operations Subcommittee, Committee on the District of Columbia, U.S. House of Representatives

INTRODUCTORY NOTE

This bill seeks to regulate the campaign finance practice of candidates for D.C. Delegate, Mayor, Chairman of the Council, at-large and ward Members of the Council, at-large and ward Members of the Board of Education and political party officials.

Hearings were held before the Subcommittee on April 3 and 4 on HR 12638 (Fauntroy), HR 13539 (Diggs) and HR 13539 and HR 13914 (Fraser) and "mark-up" sessions on May 8 and 9 on these three bills and a Subcommittee draft.

The bill was unanimously reported from Subcommittee on May 9, 1974.

SUMMARY OF PROVISIONS

The summary (below) describes the bill as reported, including amendments adopted by the Subcommittee.

TITLE I-SHORT TITLE, DEFINITIONS

SEC. 101. Short title.

SEC. 102. Definitions. Includes "election" (each primary, runoff, general or special election), “candidate," "office," "official of a political party,” “political committee" (any 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), "contribution" (a gift, subscription, loan, advance or deposit of money or anything of value; a contract, promise or agreement to make a contribution; a transfer of funds: the payment of compensation for the personal services of another person rendered without charge or for less than reasonable value), "expenditure," "person," "Division," "political party," and "Board."

TITLE II-FINANCIAL DISCLOSURES

SEC. 201(a). Organizations of Political Committees. Every political Committee shall have a chairman and a treasurer. No contribution and no expenditure shall be accepted or made when there is a vacancy in the office of treasurer and no one has been designated and has agreed to perform the functions of the treasurer. (b) Every person who receives a contribution of $10 or more for or on behalf of a political committee shall submit to the committee a detailed account thereof, including the amount, the name and address (including occupation and business address) of the contributor and the date it was received.

(c) Except for expenditures made out of the permitted petty cash fund, the treasurer of a political committee and each candidate shall keep a detailed and exact account of (1) all contributions, (2) the identification of all contributors of $10 or more; (3) all expenditures made on the behalf of the Committee or candidate and (4) the identification of every person to whom an expenditure is

made.

(d) The treasurer or candidate shall obtain such receipted bills and records as may be required by the Division.

(e) Each candidate shall designate one political committee as his principle campaign committee. The principle campaign committee shall receive all reports made by any other political committee supporting that candidate. No political committee may be designated as the principle campaign committee of more than one candidate (except for political party office). The treasurer of each principal

1 This bill was subsequently introduced as H.R. 14754.