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107TH CONGRESS

1ST SESSION H. R. 1544

To amend the Internal Revenue Code of 1986 to exempt State and local

political committees from duplicative notification and reporting requirements made applicable to political organizations by Public Law 106–

230.

IN THE HOUSE OF REPRESENTATIVES

APRIL 24, 2001

Mr. BRADY of Texas introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to exempt

State and local political committees from duplicative notification and reporting requirements made applicable to

political organizations by Public Law 106–230.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. EXEMPTION FOR STATE AND LOCAL POLITICAL

4 COMMITTEES FROM NOTIFICATION AND RE5 PORTING REQUIREMENTS IMPOSED BY PUB6 LIC LAW 106–230.

7 (a) EXEMPTION FROM NOTIFICATION REQUIRE8 MENTS.—Paragraph (5) of section 527(i) of the Internal
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1 Revenue Code of 1986 (relating to organizations must no2 tify Secretary that they are section 527 organizations) is

3 amended by striking ‘‘or’’ at the end of subparagraph (A),

4 by striking the period at the end of subparagraph (B) and

5 inserting ‘‘, or’’, and by adding at the end the following

6 new subparagraph:

7 ‘‘(C) which—

8 ‘‘(i) engages in exempt function activ9 ity solely in the attempt to influence the

10 selection, nomination, election, or appoint11 ment of any individual to any State or

12 local public office or office in a State or

13 local political organization, and

14 ‘‘(ii) is subject to State or local con15 tribution and expenditure reporting re16 quirements relating to selections, nomina17 tions, elections, and appointments to such

18 offices, and reports under such require19 ments are publicly available.’’.

20 (b) EXEMPTION FROM REPORTING REQUIRE21 MENTS.—Paragraph (5) of section 527(j) of such Code

22 (relating to required disclosures of expenditures and con23 tributions) is amended by striking ‘‘or’’ at the end of sub24 paragraph (D), by striking the period at the end of sub-
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1 paragraph (E) and inserting ‘‘, or’’, and by adding at the

2 end the following new subparagraph:

3 ‘‘(F) to any organization which—

4 ‘‘(i) engages in exempt function activ5 ity solely in the attempt to influence the

6 selection, nomination, election, or appoint7 ment of any individual to any State or

8 local public office or office in a State or

9 local political organization, and

10 ‘‘(ii) is subject to State or local con11 tribution and expenditure reporting re12 quirements relating to selections, nomina13 tions, elections, and appointments to such

14 offices, and reports under such require15 ments are publicly available.’’.

16 (c) EXEMPTION FROM REQUIREMENTS FOR ANNUAL

17 RETURN BASED ON GROSS RECEIPTS.—Paragraph (6) of

18 section 6012(a) of such Code is amended by striking ‘‘sec19 tion)’’ and inserting ‘‘section and an organization de20 scribed in section 527(i)(5)(C)’’.

21 (d) EFFECTIVE DATE.—The amendments made by

22 this section shall take effect as if included in the amend23 ments made by Public Law 106–230.

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