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[Extensions of Remarks]
[Page E1316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COST ESTIMATE TO H.R. 4617
______
HON. ZOE LOFGREN
of california
in the house of representatives
Monday, October 21, 2019
Ms. LOFGREN. Madam Speaker, I include in the Record the cost estimate
for H.R. 4617 from the Congressional Budget Office. The cost estimate
was not available at the time of the filing of the Committee report.
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 21, 2019.
Hon. Zoe Lofgren,
Chairperson, Committee on House Administration, House of
Representatives, Washington, DC.
Dear Madam Chairperson: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4617, the SHIELD
Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Mark P. Hadley
(For Phillip L. Swagel, Director).
Enclosure.
H.R. 4617, the SHIELD Act--October 16, 2019
[By fiscal year, millions of dollars]
------------------------------------------------------------------------
2020 2020-2024 2020-2029
------------------------------------------------------------------------
Direct Spending (Outlays)........... * * *
Revenues............................ * * *
Increase or Decrease (-) in the * * *
Deficit............................
Spending Subject to Appropriation * 2 **
(Outlays)..........................
------------------------------------------------------------------------
* = between -$500,000 and $500,000.
** = not estimated.
Statutory pay-as-you-go procedures apply? Yes.
Increases on-budget deficits in any of the four consecutive
10-year periods beginning in 2030? No.
Mandate Effects:
Contains intergovernmental mandate? No.
Contains private-sector mandate? Yes, Under Threshold.
H.R. 4617 would amend the Federal Election Campaign Act of
1971. Most provisions in the bill are related to prohibiting
the participation of foreign nationals in election-related
activities, and making additional campaign expenditures and
advertising purchases subject to public disclosure.
CBO estimates that implementing H.R. 4617 would cost $2
million over the 2020-2024 period, subject to the
availability of appropriated funds. Those amounts would cover
additional administrative costs for the Federal Election
Commission (FEC) to ensure compliance with the bill. In 2019,
the FEC received an appropriation of $71 million.
Violators of the bill's reporting requirements could be
subject to civil and criminal penalties, so enacting H.R.
4617 could increase collections of fines. Civil fines are
recorded in the budget as revenues. Criminal fines are
recorded as revenues, deposited in the Crime Victims Fund,
and subsequently spent without further appropriation. CBO
estimates that any additional collections would not be
significant in any year and over the 2020-2029 period because
of the relatively small number of additional cases likely to
be affected.
H.R. 4617 would impose private-sector mandates as defined
in the Unfunded Mandates Reform Act (UMRA) on candidates for
federal office, campaign committees, political entities, and
advertising platforms, among other entities. CBO expects that
the aggregate cost of the mandates would be small because
compliance with some of the mandates would not impose costs
or because the affected entities already perform similar
disclosure and reporting activities. For such entities, the
new duties would impose only small incremental costs.
Therefore, CBO estimates that the cost of the mandates would
not exceed the private-sector threshold established in UMRA
($164 million in 2019, adjusted annually for inflation).
Title I would:
Require political campaigns to report contacts by foreign
entities offering contributions or election coordination to
the Federal Bureau of Investigation and the FEC and to
establish a policy requiring staff to report such contacts
and to notify staff of that policy.
Expand the types of communication subject to existing
disclosure rules under the Federal Election Campaign Act and
require disclaimers on internet and digital communications.
Require online platforms that sell political advertisements
and meet minimum traffic thresholds to maintain a public
database of qualified political advertisements.
Require television and radio broadcasters and online
platforms to make reasonable efforts to ensure that campaign
communications are not purchased by a foreign national.
Title II would prohibit foreign nationals from:
Participating in the decision making process of any
election-related activity.
Contributing to super political action committees (PACs) or
campaigns concerning a state or local ballot initiative or
referendum.
Making campaign or advocacy expenditures for digital,
broadcast, and internet communications.
Title II would impose additional private-sector mandates by
requiring corporations and labor organizations that make
campaign contributions to certify that no foreign nationals
participated in the decision making process related to those
contributions and by requiring corporate PACs to certify that
they are not under foreign control.
H.R. 4617 would impose no intergovernmental mandates as
defined in UMRA.
The CBO staff contacts for this estimate are Matthew
Pickford (for federal costs) and Andrew Laughlin (for
mandates), The estimate was reviewed by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
____________________
