With respect to this question and questions numbered 5 and 9, it is our position that the Executive Branch has been and will continue to be responsive to the requirements of the Board of Elections to carry out its responsibilities. This, of course, is contingent upon appropriate justifications and funding availability. Moreover, the District Government has requested funding in Fiscal Year 1975 for added resources for the Board of Elections to enable it to carry out increased responsibilities under home rule. A potential resource to assist the Board of Elections in meeting the costs not fully anticipated in the Fiscal Year 1975 budget request is an advance provided for in section 722 of Public Law 93–198. A part of this can be made available to the Board of Elections for carrying out the provisions of that Act. Answers to Questions 2 and 3: It is within the regulatory power of the Board of Elections to specify the forms which are to be used by political committees for registration and to report contributions and expenditures. I am further advised that the D.C. Board of Elections will look favorably upon the adoption of the forms prepared by the Comptroller General of the United States in administering the Federal Election Campaign Act of 1971. Answer to Question 4: The D.C. Board of Elections is authorized 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 Office can offer assistance in developing new regulations which will be needed for the forthcoming elections. Answer to Question 5: There is no legal restriction which would prevent the Board of Elections from appointing a General Counsel to render such services as the Board may desire. If a position of General Counsel is needed immediately, interim provision can be made through the temporary position authority of the District Government. The authority for a permanent position for a General Counsel would have to be requested through the normal budget process. The Corporation Counsel is of the opinion that the Board of Elections should be supported by separate counsel in connection with any investigative functions relating to campaign contributions and expenditures. The Board will take this opinion into consideration when it decides what action to take on this suggestion. Answer to Question 6: It is within the authority of the Board of Elections to advise candidates and political committees that present D.C. law empowers a judge to "void an election" for "making of expenditures by a candidate in violation of this chapter" in serious cases. The Members of the Board of Elections have advised that they intend to do this in the forthcoming elections. Answer to Question 7: The Board of Elections has the authority to allow any financial reports and statement filed with it to be available for copying by hand or duplicating by machine at cost. The Board of Elections has allowed such copying in past elections and the Board intends to continue to do so. Answer to Question 8: It is within the authority of the Board of Elections to compile and maintain current lists of all statements on file with it pertaining to each candidate. It is not clear whether the question also related to the type of full publication required by section 6(f) (4) et seq. of H.R. 13914. The cost of such publication would be prohibitive and beyond the capability of the Board's staff and fiscal resources. Answer to Question 9: Under existing law, the Board of Elections would be authorized to conduct audits and field investigations with respect to reports and statements filed with the Board and with respect to alleged failures to file any report or statement. The Board of Elections has advised that it will consider how it can best perform such audits and investigations. It will specifically consider asking the Comptroller General of the United States to assist in the formulation of a task force to do the job in the local elections this fall. Additional statutory authority would be needed to enable the General Accounting Office to participate directly in audits and investigations. Answer to Question 10: The Board of Elections has authority to promulgate regulations which define terms such as "election," "candidate," "political committee," "contribution," "expenditure," and "political party." The Board of Elections has advised that it is prepared to consider adopting the definitions contained in the various campaign financing bills pending before the House District Committee. Answer to Question 11: The Board of Elections has sufficient regulatory authority to set a requirement for a central campaign committee for a candidate, filing reports with a candidate by other committees using his name, use of campaign depositories, and limitations on use of cash. The District of Columbia Government is without legal authority to prescribe crimes or offenses except where such authority is granted by Congress or where unspecified crimes or offenses are regarded as usual and reasonable police regulations which may be necessary for the protection of life, health, and safety of all persons. Act of February 26, 1892 (D.C. Code, sec. 1-226). The District of Columbia Election Act, as amended (69 Stat. 699; D.C. Code, sec. 1-1101 et seq.) does not authorize the District of Columbia to prescribe the criminal conversion of political contributions for personal use, as proposed in H.R. 13914 and H.R. 13539, 93d Congress 2d Sess. (1974). Under the terms of sec. 13 of the District of Columbia Election Act, however, a candidate for public office must report campaign contributions and expenditures (69 Stat. 704; D.C. Code, sec. 1-1113), and his failure to do so may be punishable as a crime, under the terms of that Act. Moreover, any political worker who converts campaign funds to his own personal use may be charged under the general criminal laws with embezzlement. Any more stringent campaign or election laws must be prescribed by Congress. Answer to Question 12: In view of the expanded responsibilities of the Board under Home Rule, I will recommend to the Board that a broadly representative committee be appointed to advise and consult with the Board. In summary, with respect to the specific questions raised in your letter, the city is prepared to draw fully on its existing powers to put into operation the machinery desired to insure an open electoral process for the first elections under the D.C. Self-government and Governmental Reorganization Act. If I can be of further assistance, please let me know. Sincerely yours, WALTER E. WASHINGTON, GOVERNMENT OF THE DISTRICT OF COLUMBIA, CITY COUNCIL, Hon. CHARLES DIGGS, Washington, D.C., May 28, 1974. Chairman, Committee on the District of Columbia, DEAR MR. CHAIRMAN: I am writing in regard to two sections of H.R. 14754, a bill to regulate certain political campaign finance practices in the District of Columbia. Section 502 of H.R. 14754 would amend existing D.C. income tax law to permit a tax credit for campaign contributions. I think this is a highly desirable amendment in order to encourage people of moderate means to contribute to the financing of campaigns. I am troubled, however, that the bill would conform to only half the existing Federal income tax provisions in this regard. Presently Federal law permits either a tax credit of $12.50 or a tax deduction up to $50 for political contributions. I would urge your Committee to amend Section 502 (a) to conform District income tax laws to the Federal by allowing the deduction as well as the credit. Second. I note Section 504(b), relating to voter information pamphlets, would prohibit any person who is the sole candidate for election for any office from being included in the pamphlet. I believe such exclusions could prove very confusing to the voter. He will be faced with a ballot showing names and offices not appearing in the pamphlet. I would urge that such exclusion should be at least at the option of the unopposed candidate. I applaud the purpose of this legislation and your Committee's commitment to moving it through the Congress in time for our upcoming elections. Sincerely, TEDSON J. MEYERS, Council Member. GOVERNMENT OF THE DISTRICT OF COLUMBIA, CITY COUNCIL, Hon. CHARLES C. DIGGS, Jr., Chairman, Committee on the District of Columbia, U.S. House of Representatives, DEAR MR. CHAIRMAN: While engaged in research this afternoon for preparation of the letter supplementing my testimony on May 20th which was requested for the record in the D.C. Financial Disclosure Bill, I have just been informed that even though the record will not be closed for several more days the Subcommittee has reported a bill and the full Committee will consider same tomorrow morning. Accordingly, even though a good part of what I plan to furnish by letter is not yet ready for transmittal, I feel that what I have ready to offer on one aspect of the bill necessitates providing the information contained in this letter immediately. I refer specifically to the sample campaign budget prepared by the Subcommittee staff reflecting a total of $185,800 for both primary and general elections and my own testimony at the hearing on April 3, 1974, with attachment suggesting a total of $180,000 for same in the contest for Mayor. By coincidence, both that staff and I independently arrived at virtually the same estimate in good faith. However, careful analysis today of the staff breakdown in arriving at this level of budget leaves me to believe that our figures are completely unrealistic. For example, in the same budget the estimated pay for clerks annualizes at $3,900, which is poverty-level income in this geographical area, and it works out to $1.875 per hour, whereas the minimum legal wage rate in the District is now $2.25 per hour. Similarly, suggested compensation for the lone advance man and the accountant works out to $5,200 per year. Such a price tag for those kinds of talent is at most only half that of a realistic estimate, and maybe closer to one-third. I don't know what news reporter would work as press secretary at the rate of $7,800 a year as suggested. After three years' experience a reporter at the Star now receives $20.384 per year, and those at the Post a little more. Moreover, the premium for short-term employment must be considered. Finally no qualified campaign manager would work at an annualized rate of $18,200. as suggested. An experienced professional would charge at least twice the $18.200 per year rate suggested, considering the sporadic nature of such employment. My own experience indicates that a good campaign manager would require at least $20,000 for six months. For another example, the headquarters office rental also seems vastly underestimated at going market rates locally. At $6 per foot per year, $600 per month for the "central" office would rent one room 30 by 40 feet. With the suggested 10 employees in such a room, that works out to a rectangle 10 feet by 12 feet for each person and desk, without allowance for interior portions or passageways between workers; and it leaves no room at all for reception area, work tables or volunteers to work in the office. Again, doubling this estimate would be necessary if we are to be realistic. 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 $3800 for a full page ad which I quoted in testifying at the hearing on April 3, 1974. Moreover, the agency fee for all such advertising is omitted altogether. Finally, the Staff's sample budget omits any fee at all for a campaign consultant. Mine cost $15,000 in the first Delegate campaign and would have been over twice that but for advertising commissions to the same firm. From the above, I believe a realistic total budget for both primary and general elections for Mayor at today's costs in the District could easily be double the $185,800 figure suggested in the Staff's sample in use by this Committee. Accordingly, after analyzing the Staff's components and current costs, I now feel that the $90,000 expenditure ceilings for Mayor and Chairman, representing $180,000 for six months, to which I testified before this Committee on April third should be just about doubled if the new law is to be at all realistic for the present, let alone for any appreciable time in the future considering inflation. I appreciate this opportunity to revise my earlier testimony on this most important aspect of the bill before you. A further letter will be forthcoming, as re.quested for the record, in a couple more days. Respectfully, JOHN A. NEVIUS, Chairman, City Council. GOVERNMENT OF THE DISTRICT OF COLUMBIA, BOARD OF ELECTIONS, NOTICE OF EMERGENCY RULE-MAKING The Board finds that in order to carry out the provisions of sec. 15(b) of the D.C. Election Act, as amended, it is necessary to adopt the following amendments to Title 22, D.C. Rules and Regulations: Subsection (e) of sec. 2.1, subsection (k) of sec. 2.2, subsection (e) of sec. 4.1, and subsection (k) of sec. 4.2, are each amended by inserting at the end of each subsection the following: "(4) He is not ineligible as a candidate under the provisions of sec. 15(b) of the D.C. Election Act, as amended." NORVAL E. PERKINS, Executive Secretary. GOVERNMENT OF THE DISTRICT OF COLUMBIA, BOARD OF ELECTIONS, NOTICE OF EMERGENCY RULE-MAKING The Board finds that in order to insure an open electoral process in the forthcoming elections under P.L. 93-198, it is necessary to adopt the following amendments to Chapter 13 of Title 22, D.C. Rules and Regulations: Sec. 13.2 is amended by striking out "in writing" and inserting in lieu thereof the following: "on a form prescribed by the Board". Secs. 13.1, 13.2, 13.3, 13.4, and 13.5 are redesignated secs. 13.2, 13.3, 13.6, 13.7, and 13.8 respectively. In addition, new secs. 13.1, 13.4, 13.5, and 13.9, here attached, are adopted. NORVAL E. PERKINS, Executive Secretary. DISTRICT OF COLUMBIA CODE, TITLE 22 Sec. 13.1. Definitions. For the purposes of this Chapter: (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 a candidate. (b) The term "candidate" means an individual who seeks nomination for election, or election, to office, whether or not he is elected, and, for purposes of this Chapter an individual shall be deemed to seek nomination for election, or election, if he has (1) solicited or authorized any other person to solicit signatures on nominating petitions to qualify himself for nomination for election, or election, to office, or (2) received and accepted contributions or made expenditures, or has given his consent for any other person to receive contributions or make expenditures, for the purpose of bringing about his nomination for election, or election, to office. (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 paragraphs (1) and (2) above, where permitted by political party rules; and (4) members and officials of local committees of political parties as may be designated by the duly authorized local committees of those parties for election at large or by ward in the District of Columbia. (e) The term "political committee" means 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. (f) The term "contribution" means: (1) a gift, subscription (including any assessment, fee, or membership dues), loan, advance, deposit of money, services, or anything of value, made for the purpose of assisting in 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 a candidate or committee without charge for any such purpose; and (5) notwithstanding the foregoing provisions of this subsection, 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, gift of money, services, 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; and (3) a transfer of funds between political committees. (h) The term "person" means an individual, partnership, committee, association, corporation, labor organization, and any other organization or group of persons. (i) The term "political party" means an association, committee, or organization which nominates a candidate for election to any office which appears on the election ballot. Sec. 13.4. Designation of Central Campaign Committee. (a) Each candidate for office shall designate in writing one political committee as his central campaign committee. The central 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 so designated it. The central campaign committee may require additional reports to be made to it by any political committee and may designate the time and number of all reports. No political committee may be designated as the central campaign committee of more than one candidate, except in the case of a political committee supporting the nomination or election of a candidate as an official of a political party. (b) Notwithstanding any other provision of this Chapter, each statement (including the statement of organization required under sec. 13.3) or report that a political committee is required to file with or furnish to the Board under the provisions of this Chapter, shall also be furnished, if that political committee is not a central campaign committee, to the central 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 central campaign committee shall receive all reports and statements filed with or furnished to it by other political committees, consolidate and furnish the reports and statements to the Board, together with the reports and statements of the central campaign committee, in accordance with the provisions of this chapter. |