2002 REPORTING REQUIREMENTS FOR CANDIDATES AND POLITICAL COMMITTEES

The District of Columbia Campaign Finance Reform and Conflict of Interest Act of 1974, as amended, D.C. Official Code, Sections 1-1101.01 et seq. (2001 Edition), requires full and complete disclosures by and on behalf of local candidates and political committees engaged in local political campaigns.

REGISTRATION REQUIREMENTS

STATEMENT OF CANDIDACY -  An individual must register as a candidate with the Office of  Campaign Finance within five (5) days of receiving a contribution, making an expenditure, obtaining nominating petitions, or authorizing another person to so act on their behalf.  This requirement does not apply to candidates for Member of an Advisory Neighborhood Commission.

STATEMENT OF ORGANIZATION – Each political committee must file a Statement of Organization within ten (10) days of organizing.  The ten (10) day period will commence upon designation by the candidate of a principal campaign committee on the Statement of Candidacy Form if the committee has not previously organized.

REPORTING REQUIREMENTS

FINANCIAL DISCLOSURE STATEMENT – Each candidate must file a personal Financial Disclosure Statement with the Director of Campaign Finance within thirty (30) days of becoming a candidate.

REPORT OF RECEIPTS AND EXPENDITURES – Reports of Receipts and Expenditures must be filed by all candidates and the treasurers of all political committees. This requirement does not apply to candidates who designated a principal campaign committee, and have been granted a waiver from filing separate reports from their committee; and to candidates who anticipate spending less than $500 in any one election and have not designated a principal campaign committee.  Candidates who anticipate spending less than $500 must file a $500 exemption form upon registration.  Candidates for Member of an Advisory Neighborhood Commission must file an ANC Financial Summary Statement no later than thirty (30) days after the General Election.

NON-SUPPORT REPORTING – Principal Campaign Committees of candidates for office in a prior election year maintaining debts and obligations, and Political Action Committees electing not to support candidates during this election cycle, must continue to file Reports of Receipts and Expenditures during the 2002 election year, on January 31st and July 31st 2002.

ELECTION YEAR REPORTING – The following reporting deadlines are applicable to all candidates and political committees participating in the 2002 elections.
January 31st and the 10th day of March, June, August, October, December and the 8th day next preceding the date of any election in which the candidate seeks office.

Each person (other than a political committee or candidate) who makes contributions or expenditures, other than by contribution to a political committee or candidate, in an aggregate amount of $50 or more within a calendar year must file a Report of Receipts and Expenditures with the Director of Campaign Finance (D.C. Official Code §1-1102.06).

NOTE:   All Reports of Receipts and Expenditures and Financial Disclosure Statements are available for public inspection, and subject to desk review, full field audit, and investigation.

All candidates and political committees must adhere to the contribution limitations of  D.C. Official Code §1-1131.01, and comply with the requirements of D.C. Official Code §1-1102.10, pertaining to the identification of campaign literature.

TERMINATION – Candidates and political committees have a continuing responsibility to file campaign reports until a Termination Report is filed and approved by the Director.  For example, neither withdrawal of candidacy nor an unsuccessful bid for office will relieve registered filers from the responsibility of filing Reports of Receipts and Expenditures.  A Termination Report can only be filed when the political committee has satisfied all debts and sustains a zero balance.

IF YOU NEED ADDITIONAL INFORMATION, YOU MAY CONTACT THE OFFICE OF CAMPAIGN FINANCE. THE PUBLIC INFORMATION AND RECORDS MANAGEMENT DIVISION IS OPEN FOR WALK-IN SERVICE FROM 9:00 AM TO 4:30 PM MONDAY THRU FRIDAY.  THE OFFICE OF CAMPAIGN FINANCE PROVIDES INFORMATION KITS FOR CANDIDATES AND POLITICAL COMMITTEES THAT CONTAIN THE AFOREMENTIONED FORMS, THE SPECIFIC REPORTING REQUIREMENTS UNDER THE ACT, AND SECTIONS OF PERTINENT OCF REGULATIONS. 

FOR IMMEDIATE RELEASE

FROM: The Director of the D. C. Office of Campaign Finance

DATE: November 7, 2001

Today, the Office of Campaign Finance (OCF) concluded its investigation into the alleged misuse by Mark Jones, former Deputy Chief of Staff to Dr. Abdusalam Omer, of his government position.  As a result of a series of contemporaneous media reports regarding Mark Jones’ fundraising activities for various Mayoral sponsored events, OCF launched an internal inquiry into this matter in February 2001.

That inquiry quickly ballooned into a preliminary investigation when OCF became aware, initially from WRC News4 television, that then Deputy Chief of Staff Mark Jones was using his government position and office to solicit funds for Urban Assistance Fund and For the Kids Foundation, two private non-profit corporations, for two Mayoral events:  a Presidential Inaugural reception, held in January 2001, and an adult Christmas Party, held in December 2000.

Upon evaluation of the data in this matter, OCF determined that the parameters of this inquiry into Mark Jones’ fundraising activities presented issues under the D.C. personnel regulations at Chapter 18, “Employee Conduct”, of the District Personnel Manual (DPM), also known as the Standards of Conduct (Standards).  OCF did not find any indication from Mr. Jones’ fundraising activities that he committed any violations of the D.C. Campaign Finance Act.

OCF queried as to whether Mr. Jones violated the Standards when he allegedly used government time and resources to make telephone calls or issue correspondence, from his D.C. government office, to solicit contributions for the Urban Assistance Fund and the For the Kids Foundation, private non-profit corporations, to fund certain public events.

OCF also queried as to whether Mr. Jones violated the Standards when he allegedly solicited, personally or through his assistant, contributions for private non-profit organizations to support certain public events from individuals and businesses whose operations or activities are regulated by the D.C. government.

OCF determined that, although Mark Jones believed that it was within his authority to do so, Mark Jones violated the Standards when he used District government employees, supplies and time to solicit contributions for private non-profit corporations to fund the Mayor’s holiday party in December 2000 and a Presidential Inaugural Reception in January 2001 because soliciting funds for a private non-profit organization is not government business.

OCF also determined that, although Mark Jones believed that it was within his authority to do so, Mark Jones violated the Standards when he solicited funds directly and through non-profit corporations from persons and businesses conducting operations or activities which are regulated by the District government because that is prohibitive conduct.

Additionally, OCF found that Mr. Jones’ superiors, Dr. Abdusalam Omer, former Chief of Staff, and Mayor Anthony Williams, had knowledge of Mr. Jones’ responsibility to coordinate the funding of these events.  OCF did not find that either authorized Mr. Jones to coordinate the funding in the manner found violative of the Standards.  Mr. Jones was expected to perform his responsibilities independently and with little supervision, such that he was entrusted and charged to develop a program to coordinate the funding of these events, consistent with the Standards.

After a thorough examination of all relevant documents, a decision issued today finding Mr. Jones guilty of misconduct in violation of the Standards.  In light of the fact that Mark Jones is no longer a District government employee, OCF is limited with respect to any disciplinary action which might otherwise be ordered.  In her Order, Cecily E. Collier-Montgomery, OCF Director, stated:  “[w]here a violation of the Standards has occurred, disciplinary action may be taken.  This includes changes in assigned duties, divestment of any conflicting interest, corrective or adverse action, or disqualification for a particular assignment.”

The Director further stated:  “[h]owever, the circumstances surrounding the misconduct herein warrant further comment.  Specifically, Mark Jones believed that his conduct was within the parameters of his job description.  This reinforces that each member of the Office of the Mayor of the District of Columbia must be responsible for knowing and adhering to the Standards.”

OFFICE OF CAMPAIGN FINANCE
DISTRICT OF COLUMBIA BOARD OF ELECTIONS AND ETHICS

 SUMMARY OF REGISTERED LOBBYISTS INFORMATION

The Director of Campaign Finance herewith posts a summary of registered lobbyists information submitted to the Office of Campaign Finance on or before February 15, 2001 by persons registered as lobbyists with the Director pursuant to the District of Columbia Campaign Finance Reform and Conflict of Interest Act of 1974, as amended, D.C. Code Section 1-1454.

A person is required to register as a lobbyist with the Director of Campaign Finance on or before January 15th of each year, or not later than 15 days after becoming a lobbyist, if such person receives compensation or expends funds in an amount of $250 or more in any three (3) consecutive calendar month period for communicating directly with any official in the legislative or executive branch of the District of Columbia government with the purpose of influencing any legislative action or an administrative decision, D.C. Code Sections 1-1452 and 1-1454(a).

Thereafter, each lobbying registrant is required, pursuant to D.C. Code Section 1-1455 (a), to file activity reports between the lst and 10th day of July and January of each year concerning their lobbying activities during the previous six (6) month period.

Office of Campaign Finance
Bulletin

The D.C. Office of Campaign Finance (OCF) reminds all District of Columbia Elected Officials (except ANC members), Board and Commission members, Excepted Service employees paid at DS-13 and above, and Subordinate Agency Heads, to file the OCF Financial Disclosure Statement (FDS) by May 15, 2001.

Mail or bring your completed FDS to the Office of Campaign Finance, Frank D. Reeves Municipal Building, 2000 14th Street, NW, Suite 433, Washington, D.C. 20009.  If mailed,  your FDS must be received by OCF no later than May 15, 2001.

The Office of Campaign Finance will conduct informal training seminars for those D.C. Public Officials and employees who are required to file  Financial Disclosure Statements with the Director of the Office of Campaign Finance.

The seminars are designed to assist participants in understanding and complying with certain provisions of the D.C. Campaign Finance Reform and Conflict of Interest Act of 1974, as amended.

These seminars will commence on Thursday, April 12, 2001, and will be held every Thursday thereafter, through May 10, 2001.  The training seminars will start promptly at 12:30 p.m., and will end at 1:30 p.m.  Participants are encouraged to bring lunch to these “ brown bag”  sessions.

D.C. Law 13-163, the “Campaign Finance Disclosure and Enforcement Amendment Act of 2000″, requires the Office of Campaign Finance to provide a biennial report describing receipts and expenditures of candidates for Mayor, the Chairman, and members of the Council, the President and members of the Board of Education, shadow Senators, and shadow Representative.

The report, covering the period  January 1999 to December 2000 is available at the Office of Campaign Finance, Public Information and Records Division, 2000-14th Street, NW, Suite 433, Washington, DC 20009.

The Office of Campaign Finance (OCF) will be conducting an informal training seminar for persons who are required to file with the OCF as lobbyists in the District of Columbia.

The seminar is designed to assist participants in complying specifically with Subchapter 5, “Lobbying,” of the D.C. Campaign Finance Reform and Conflict of Interest Act, as amended, and the Campaign Finance Amendment Act of 1999.

The seminar will be held on Thursday, December 21, 2000 from 11:30 a.m. to 1:00 p.m.  Participants are encouraged to bring lunch to this “brown bag” session.

Effective August 14, 2000, D.C. Act 13-416, the “Board of Education Campaign Contribution Clarification Emergency Amendment Act of 2000”, amended D.C. Code, Sections 1-1441(a)(4) and (5), to clarify the campaign contribution limit for a candidate for President of the Board of Education, who is to be elected at-large, and to raise the campaign contribution limit for a candidate for member of the Board of Education elected from a school district.

As amended by D.C. Act 13-416, D.C. Code, Section 1-1441(a)(4) prohibits any person from making any contribution in support of a candidate for President of the Board of Education which exceeds $500; and Section 1-1441(a)(5) prohibits any person from making a contribution in support of a candidate for member of the Board of Education elected from a school district which exceeds $300.

Prior to these changes in the law, D.C. Code, Section 1-1441(a)(4) imposed the contribution limitation on a candidate for member of the Board of Education elected at-large, and Section 1-1441(a)(5) restricted the contribution amount for a candidate for member of the Board of Education elected from a ward to $200.

These changes in the law were prompted by Proposed Charter Amendment III, “The School Governance Charter Amendment Act of 2000”, approved by the electorate at the June 27th 2000 Special Election.

This is to bring to your immediate attention, the enactment of Public Law No. 106-230, which was approved by the Congress and signed by the President of the United States on July 1, 2000. Public Law No. 106-230 creates new reporting responsibilities for political committees covered by the District of Columbia Campaign Finance Act.

Public Law 106-230 amends the Internal Revenue Code (IRC) of 1986 to impose three distinct filing requirements on political organizations who perform exempt functions, as both terms are defined by IRC Section 527(e). The term “political organization” means “a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function”. The term “exempt function” means the function of influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any Federal, State, or local public office or office in a political organization, or the election of Presidential or Vice-Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed. Such term includes the making of expenditures relating to an office described in the preceding sentence which, if incurred by the individual, would be allowable as a deduction under section 162 (a)”.

Political committees organized and registered with the District of Columbia Office of Campaign Finance, in accordance with the provisions of D.C. Code, Section 1-1414 (1999 Repl. Vol.), are included within the meaning of the fore-going terms, and should be aware of the new reporting requirements. This includes the principal campaign committee and any authorized committees of a candidate, as well as political action committees which make contributions or expenditures for the purpose of influencing the selection of an individual for election to local office.

Further, it would appear that Citizen Service Funds, as authorized by D.C. Code, Section 1-1443, are not affected by the requirements of Public Law No. 106-230.  Exempt organizations as enumerated in IRC Section 501(c) are not considered a “political organization” as defined by IRC Section 527(e). IRC Section 527(f) does require exempt organizations to report certain amounts as gross income where expenditures are made for an “exempt function” within the meaning of IRC Section 527(e)(2). Notwithstanding, Sections 527(i)(5) and (j)(5)(D), expressly exempt organizations subject to the requirements of Section 527(f)(1), from the July 31st notification requirement as a Section 527 Organization, and the periodic financial disclosure requirements.

It should be noted that funds established by an individual holding office for the sole purpose of preparing and circulating a newsletter, are treated under IRC Section 527(g) as a “political organization”, and subject to the requirements of Section 527. The preparation and circulation of the newsletter is recognized as an “exempt function” within the meaning of Section 527(g)(2).

In general, Public Law No. 106- 230 imposes the following new reporting requirements on local political committees.

REGISTRATION REQUIREMENT

Section 527 of the Internal Revenue Code is amended to add a new subsection “(i)”, which will require new and existing political committees to register with the Internal Revenue Service as a Section 527 “political organization”. This must be accomplished both electronically and in writing within 24 hours after the date on which the organization is established. Political committees in existence as of June 30, 2000 must register within (30) thirty days of the enactment of the legislation. The new subsection (i) does not apply to (1) certain organizations exempt under IRC Section 501(c) which make political contributions from their general revenue and are subject to the requirements of Section 527(f)(1); (2) political committees subject to the reporting requirements of the Federal Election Campaign Act of 1971; and (3) political committees which anticipate that they will not have gross receipts of $25,000 or more for any taxable year.

DISCLOSURE REQUIREMENTS

Section 527 of the Internal Revenue Code is amended to add a new subsection “(j)”, to require political committees who accept contributions or make expenditures for an exempt function during any calendar year to file periodic disclosure reports with the Internal Revenue Service. The filing schedule varies depending on whether the year is an election year. The amendment does not apply to (1) political committees subject to the reporting requirements of the Federal Election Campaign Act of 1971; (2) the local committee of a political party or political committee of a local candidate; (3) organizations which anticipate that they will not have gross receipts of $25,000 or more for any taxable year; and (4) certain organizations exempt under IRC Section 501(c) which make political contributions from their general revenue and are subject to the requirements of Section 527(f)(1).

ANNUAL REPORTING REQUIREMENT

Section 6012(a)(6) of the Internal Revenue Code has been amended to require political committees which have gross receipts of $25,000 or more for the taxable year to file an income tax return.

Effective April 5, 2000, D.C. Law 13-79, the “Campaign Finance Amendment Act of 1999”, amended D.C. Code §1-1419 to exempt from the filing of Reports of Receipts and Expenditures, candidates who anticipate spending less than “$500” in any one election, and who have not designated a principal campaign committee.

D.C. Law 13-79 also amends D.C. Code §1-1462 (a)(1)(C) to require the additional disclosure on the Financial Disclosure Statement Form of each business entity (including sole proprietorships, partnerships, and corporations) transacting any business with the District of Columbia Government in which the filer (or their spouse, if property is jointly titled) has served as a “…consultant, contractor or in any other formal capacity or affiliation”.

Prior to these changes in the law, the amount of the reporting exemption was $250, and the disclosure of business relationships was more limited.