SENATE BILL REPORT

SB 5780

BYSenators Bottiger and Hayner

Authorizing diversified investment of campaign funds.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 24, 1987

Majority Report:  Do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Pullen, Talmadge.

Senate Staff:Barbara Howard (786-7410); Walt Corneille (786-7452)  March 17, 1987

AS PASSED SENATE, MARCH 16, 1987

BACKGROUND:

Until 1977, monetary contributions to campaign funds were required to be maintained in depository accounts.  In that year, the statute was amended to allow investment of funds on hand in bonds, certificates, savings accounts or other similar instruments in financial institutions.  The interest on all of these is subject to federal income tax.  It has been suggested that the investment authority be expanded further, to include tax-exempt accounts.

SUMMARY:

Tax-exempt securities and mutual funds are added to the types of investments allowed for funds on hand for campaigns of candidates or political committees.

Fiscal Note:      none requested

Senate Committee - Testified: No one