campaign committee and each candidate shall receive all reports furnished by other political committees and shall consolidate and furnish reports and statements to the Division, in accordance with the regulations of the Division, in accordance with the regulations of the Division.

(f) Each political committee and each candidate shall indicate on the face of all fund-raising literature that a copy of its report is on file with the Division. SEC. 202. Designation of Campaign Depository.

(a) Each political committee and each candidate accepting contributions or making expenditures shall designate one national bank located in D.C. as the campaign depository. All expenditures are to be made by check from the account at such depository.

(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 record of petty cash receipts and disbursements shall be furnished to the Division as it may require.

SEC. 203. Registration of Political Committees; Statements.

(a) Each committee shall file with the Division a statement of organization at such time as the Division 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 connected 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, any party affiliation of (A) each candidate whom the committee is supporting, and (B) any other individual, if any, whom the committee is supporting; 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 all depositories used by the committee, together with the title and number of each account and safety deposit box used by that committee at the depository, and the identification of each individual authorized to make withdrawals or payments out of each such account or box.

10. Such other information as may be required by the Division.

(c) Reports required within 10 days.

(d) Disbanding organization report required by Division .

SEC. 204. Registration of candidates. Each individual shall, within 5 days after becoming a candidate (or receiving contributions or making expenditures), file a registration statement with the Division. The statement shall include the identification of the campaign depository, safety deposit boxes and individuals authorized to make withdrawals and payments from the account.

SEC. 205. Reports by Political Committees and Candidates.

(a) The treasurer of each committee and each candidate required to register shall file with the Division and the principle campaign committee reports on receipts and expenditures (on forms to be prescribed or approved by the Division). Such reports shall be made 21 days after the enactment of the Act, Jan. 31, March 10, June 10, August 10 and the 15th and 5th days before an election. Contributions made within 5 days before the election shall be disclosed within 24 hours after its receipt.

(b) Included in each report shall be:

1. Amount of cash on hand at the beginning of the reporting period;

2. Identification of all contributors who have contributed in aggregate of $50 or more within the calendar year:

3. The total sum of all contributions received during year not reported in (2).

4. The identifications of any entity from or to which the committee or candidate made a transfer of funds;

5. Identification of persons who make loans to committees or candidates in aggregate of $50 or more:

6. The net amounts of proceeds from fundraising events:

7. All receipts of $50 or more not listed in (2) through (6);
8. The total sum of all receipts during the reporting period;

9. Identification of each person to whom expenditures have been made in aggregate of $10 or more;

10. The total sum of expenditures during the calendar year;

11. The amount and nature of debts and obligations, including post-election reporting of such debts and obligations;

12. Such other information as may be required by the Division. SEC. 206. Reports by Others than Political Committees. Every person (other than a candidate or a political Committee) who makes contributions or expenditures other than by contribution to a political committee or a candidate in the aggregate amount of $50 or more shall file with the Division a statement containing information required by sec. 205.

SEC. 207(a). Formal Requirements Respecting Reports. Reports required by this Act shall be verified by oath or affirmation by the person filing it.

(b) The Division shall, by published regulations, prescribe the manner in which contributions and expenditures in the nature of debts, contracts and agreements shall be reported.

SEC. 208. Exemption for Candidates Who Anticipate Spending or Who Spend Less than $250. Except for provisions of c, d and f of Sec. 201 and subsection (a) of Sec. 204, the provisions of this title shall not apply to any candidate who spends less than or anticipates spending less than $250 in any one election and who has not designated a principal campaign committee. On the 15th day prior to the election and the 30th day after the election date such a candidate shall certify to the Division that he has not spent more than $250.

TITLE III-DIVISION OF CAMPAIGN FINANCE

SEC. 301. Establishment of Division.

(a) There is established within the Board of Elections a Division of Campaign Finance, composed of three members (one of whom shall be the Chairman of the Board of Elections and two members who shall be appointed by the Unified Bar of the District of Columbia), appointed on a non-partisan basis.

(h) The Division shall appoint an Executive Director who shall be responsible for the administrative operations of the Division.

(j) The Division shall appoint a General Counsel who shall perform such duties as may be delegated or assigned by the Division.

(k) The Division shall refer apparent criminal violations to the U.S. Attorney for prosecution and shall make public the fact of such referral. The Division shall initiate, maintain. defend or appeal any civil action relating to the enforcement of the provisions of this Act.

SEC. 302. Powers of Division.

(a) The Division shall have the power to require any person to submit in writing such reports and answers to questions as it may prescribe, to require by subpoena the attendance and testimony of witnesses and to take other (specified) actions.

SEC. 303. Duties of the Division.

SEC. 304. General Accounting Office (GAO) to assist Division.

TITLE IV-FINANCE LIMITATIONS

SEC. 401. General Limitations.

(a) Limits for contributions by an "individual" in a single election: 1. Mayor or delegate-$1,000.

2. Chairman of City Council-$750.

3. Member of the City Council at Large-$500. Council Ward-$200. 4. Member of the Board of Education in a ward or party office-$100. (b) Limits for contributions by a "person" (association, corporation, labor organization, etc.) in a single election.

1. Mayor and delegate-$2,000.

2. Chairman of Council-$1,500.

3. Member of the City Council at Large-$1,000.

4. Member of the City Council ward or School Board at Large-$400.
5. Member of the School Board ward or party office-$200.

(c) No "individual" shall make contributions or expenditures in any one election to all candidates in an excess of $2,000 (aggregate); no "person" (other than a principal campaign committee, a subsidiary political committee and a political party) more than $4,000.

(d) Maximum cash contribution-$50.

(e) No person shall make a contribution in the name of another.

(f) Labor organizations and corporations are prohibited from making any contributions or expenditures for a D.C. candidate from union treasury or corporation funds.

(g) Earmarked contributions are attributed to their source.

SEC. 402. Limitation on Expenditures. Expenditure Ceilings per single election :

1. Delegate and Mayor-$100,000.

2. Chairman of City Council-$75,000.

3. Member of the City Council at Large-$50,000.

4. Member of the School Board at large and city council ward-$20,000. 5. Member of the School Board ward and party office-$10,000.

TITLE V

SEC. 501. Penalties: Violators of any provision in this Act will be subject to a $5,000 fine, 6 month imprisonment or both.

SEC. 502. Tax Credit: There shall be allowed to an individual a credit against his income tax in an amount equal to 50% of his campaign contribution but in no event shall such credit exceed $12.50 or $25.00 in the case of a joint return. SEC. 503. Surplus campaign funds may be contributed to educational or charitable organizations, used to retire the committee's proper debts or be preserved for the future campaigns of the candidate.

SEC. 504. Voter Information Pamphlets. The Board shall mail all registered voters before each election a pamphlet including the picture and campaign statements (written by the candidate) of all candidates who submit such information. SEC. 505. A Study of the 1974 Election and a Report by the City Council. A study of the Campaign Finance and Elections Acts to determine the necessity and desirability of amending the acts.

SEC. 506. Effective dates: 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 under the provisions of such titles shall be retroactive to January 1, 1974. SEC. 507. Amendments to D.C. Elections Act.

Equipment: Mimeo, duplicating, postage meters, etc. ($700 per month

times 6 mo.) ––.

Supplies: $500 per month times 6 mo..

Phones:

Installation

Service ($400 per month times 6 mo.)‒‒‒‒.

Total

Computers:

Voter registration list with phone numbers---.
Walk list..

Total

Mailing:

1 letter.

1 tabloid..

Brochures and kits..

Graphics

Television:

$4, 200 3,000

500 2,400

2,900

2,700 500

3, 200

25,000. 12,000 5,000 1,500

15, 000

Production

Buy

Total

Radio:

Production

Buy

Total

Advertising:

Production

Buy

Total

Voter contact: Sound trucks, auditorium rental, rallies, bands‒‒‒‒‒
Budget total__.

35,000

50,000

4,000

7,000

11, 000

3,000

5,000

8,000

10,000

185, 000

STAFF BRIEFING ON CAMPAIGN FINANCE BILL, H.R. 14754

I. TWO RESTRICTIONS ON LABOR AND BUSINESS CONTRIBUTIONS ARE IN THE BILL

A. Section 401 (f) on p. 28 prohibits labor organizations and corporations from using union treasury or corporation funds. This is similar to the federal restriction. Only seven states prohibit union funds in state and local campaigns. Thirtyone states prohibit corporate funds.

1. Brock Adams' motion to delete this section lost on a 2 to 2 vote. B. Section 401 (c) on p. 27 puts a ceiling of $8,000 ($4,000 in primary, $4,000 in general) on contributions that any one political committee like COPE or BI-PAC can give to all the candidates in all the municipal races. Thus if they contributed the maximum limit of $4,000 in the mayor's race and the maximum limit of $4,000 in the delegate race, they would be prohibited from contributing to any Council candidate. Political parties are exempt from this provision.

C. The definition of political committee (p. 3) and item (j) (p. 5) refers to labor and corporation funds.

II. THE BILL COVERS THE DELEGATE TO THE U.S. HOUSE, AS WELL AS ALL THE MUNICIPAL OFFICES

On a vote of 2 to 1, the Subcommittee added the Delegate to the bill on motion of Mr. Fauntroy.

A. Present D.C. law exempts the Delegate, who like other members of the House, files his reports with the Clerk of the House under the Federal Campaign Act of 1971.

1. The Mathias bill does not include the Delegate.

2. Main arguments against including the Delegate are the trouble of keeping a second set of books under different record keeping requirements, having restrictions on contributions and expenditures different from Federal law.

III. THE UNIFIED BAR OF D.C. WOULD APPOINT TWO MEMBERS OF A "DIVISION OF CAMPAIGN FINANCE" WITHIN THE 3-MEMBER BOARD OF ELECTIONS

A. This provision is opposed by the Board of Elections and the District Government as difficult to administer. Witnesses from the District and the Board of Elections will give explanations at the hearing on May 20.

IV. REGISTRATION OF LOBBYISTS

Mr. Nelsen distributed to the Subcommittee copies of an amendment to require registration and reporting by lobbyists. A lobbyist is a person seeking to influence legislation before the District Council or the adoption of rules or standards by the Mayor or Departments of the District Government.

Mr. Nelsen did not move the adoption of the amendment in Subcommittee but suggested he would bring it up at full Committee markup.

V. THE MATHIAS-FRASER BILL (H.R. 13914)

It has two sections not included in the Subcommittee bill. Witnesses will comment on these sections at the hearings May 20 and May 21.

A. Financial Disclosure. Candidates, incumbents, and D.C. Employees of GS15 and above would file a statement of personal income, assets, security transactions, real property transfers and taxes paid. Candidates in 1974 file tax reports for preceding 3 years.

B. Conflict of Interest. No official may use his official position for financial gain to himself.

Our first witness this morning is Mr. Frank Murphy, Corporation Counsel, on behalf of the Mayor's office.

STATEMENT OF C. FRANCIS MURPHY, D.C. CORPORATION COUNSEL; ACCOMPANIED BY MRS. JUDITH ROGERS OF THE MAYOR'S LEGISLATIVE UNIT

Mr. MURPHY. Thank you, Mr. Chairman.

Mr. Chairman and Members of the Committee: I am here to express the support of the District of Columbia Government for enactment of legislation which will protect and insure that the first municipal elections under the D.C. Self-Government and Governmental Reorganization Act are open and fair. As I stated in testimony before the Government Operations Subcommittee, the District Government supports legislation which will provide full and complete disclosure of the contributions and expenditures made by and on behalf of candidates engaged in political campaigns and will place reasonable and realistic limitations on the amounts that may be contributed and expended in connection with a candidacy for elective office.