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113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-358
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TAXPAYER TRANSPARENCY ACT OF 2014
_______
February 25, 2014.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Issa, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 3308]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 3308) to require a Federal agency
to include language in certain educational and advertising
materials indicating that such materials are produced and
disseminated at taxpayer expense, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Committee Statement and Views.................................... 3
Section-by-Section............................................... 4
Explanation of Amendments........................................ 5
Committee Consideration.......................................... 5
Application of Law to the Legislative Branch..................... 5
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 5
Statement of General Performance Goals and Objectives............ 5
Duplication of Federal Programs.................................. 5
Disclosure of Directed Rule Makings.............................. 6
Federal Advisory Committee Act................................... 6
Unfunded Mandate Statement....................................... 6
Earmark Identification........................................... 6
Committee Estimate............................................... 6
Budget Authority and Congressional Budget Office Cost Estimate... 6
Additional Views................................................. 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taxpayer Transparency Act of 2014''.
SEC. 2. REQUIREMENTS FOR PRINTED MATERIALS AND ADVERTISEMENTS BY
FEDERAL AGENCIES.
(a) Requirement to Identify Funding Source for Communication Funded
by Federal Agency.--Each communication funded by a Federal agency that
is an advertisement, or that provides information about any Federal
Government program, benefit, or service, shall clearly state--
(1) in the case of a printed communication, including mass
mailings, signs, and billboards, that the communication is
printed or published at taxpayer expense; and
(2) in the case of a communication transmitted through radio,
television, the Internet, or any means other than the means
referred to in paragraph (1), that the communication is
produced or disseminated at taxpayer expense.
(b) Additional Requirements.--
(1) Printed communication.--Any printed communication
described in subsection (a)(1) shall--
(A) be of sufficient type size to be clearly readable
by the recipient of the communication;
(B) to the extent feasible, be contained in a printed
box set apart from the other contents of the
communication; and
(C) to the extent feasible, be printed with a
reasonable degree of color contrast between the
background and the printed statement.
(2) Radio, television, and internet communication.--
(A) Audio communication.--Any audio communication
described in subsection (a)(2) shall include an audio
statement that communicates the information required
under that subsection in a clearly spoken manner.
(B) Video communication.--Any video communication
described in subsection (a)(2) shall include a
statement with the information referred to under that
subsection--
(i) that is conveyed in a clearly spoken
manner;
(ii) that is conveyed by a voice-over or
screen view of the person making the statement;
and
(iii) to the extent feasible, that also
appears in writing at the end of the
communication in a clearly readable manner with
a reasonable degree of color contrast between
the background and the printed statement, for a
period of at least 4 seconds.
(C) E-mail communication.--Any e-mail communication
described in subsection (a)(2) shall include the
information required under that subsection, displayed
in a manner that--
(i) is of sufficient type size to be clearly
readable by the recipient of the communication;
(ii) is set apart from the other contents of
the communication; and
(iii) includes a reasonable degree of color
contrast between the background and the printed
statement.
(c) Identification of Other Funding Source for Certain
Communications.--In the case of a communication funded entirely by user
fees, by any other source that does not include Federal funds, or by a
combination of such fees or other source, a Federal agency may apply
the requirements of subsections (a) and (b) by substituting ``by the
United States Government'' for ``at taxpayer expense''.
(d) Definitions.--In this Act:
(1) Federal agency.--The term ``Federal agency'' has the
meaning given the term ``Executive agency'' in section 133 of
title 41, United States Code.
(2) Mass mailing.--The term ``mass mailing'' means any
mailing or distribution of 499 or more newsletters, pamphlets,
or other printed matter with substantially identical content,
whether such matter is deposited singly or in bulk, or at the
same time or different times, except that such term does not
include any mailing--
(A) in direct response to a communication from a
person to whom the matter is mailed; or
(B) of a news release to the communications media.
(e) Source of Funds.--The funds used by a Federal agency to carry out
this Act shall be derived from amounts made available to the agency for
advertising, or for providing information about any Federal Government
program, benefit, or service.
(f) Effective Date.--This section shall apply only to communications
printed or otherwise produced after the date of the enactment of this
Act.
SEC. 3. GUIDANCE FOR IMPLEMENTATION.
Not later than 6 months after the date of the enactment of this Act,
the Director of the Office of Management and Budget shall develop and
issue guidance on implementing the requirements of this Act.
SEC. 4. JUDICIAL REVIEW AND ENFORCEABILITY.
(a) Judicial Review.--There shall be no judicial review of compliance
or noncompliance with any provision of this Act.
(b) Enforceability.--No provision of this Act shall be construed to
create any right or benefit, substantive or procedural, enforceable by
any administrative or judicial action.
Committee Statement and Views
PURPOSE AND SUMMARY
The Taxpayer Transparency Act of 2014 requires the federal
government to disclose that advertisements or materials
providing information on a program, benefit or service are paid
for by the taxpayer. Under the bill, agencies would include a
disclaimer of reasonable size and clarity on communication
pieces in print, online, on radio, or on television. Any cost
associated with compliance would come from existing funds. H.R.
3308 adds needed transparency to the business of government by
requiring disclosure when taxpayer dollars are spent on
advertising and educational materials.
BACKGROUND AND NEED FOR LEGISLATION
The federal government's expenditures on advertising are
difficult to ascertain, for two reasons: (1) there is no
government-wide definition of what constitutes advertising; and
(2) there is no central authority to which agencies are
required to report advertising-related expenditures.\1\
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\1\Congressional Research Service, ``Advertising by the Federal
Government: An Overview,'' R41681, April 6, 2012, p. 2.
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Advertisements provide information, but in many instances
are designed to induce people to buy or use a product or
service. In 2013, the administration launched a $684 million
advertising campaign to gain support for the Affordable Care
Act prior to open enrollment for the health care exchanges.\2\
In 2003, the Department of Education initiated work on a No
Child Left Behind outreach campaign because management believed
details regarding the NCLB programs were not being conveyed to
those who could most benefit from them.\3\
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\2\Obamacare' National Marketing Campaign To Cost Nearly $700
Million, Associated Press, Jul. 24, 2013, at http://
washington.cbslocal.com/2013/07/24/obamacare-national-marketing-
campaign-to-cost-nearly-700-million/.
\3\Government Accountability Office, ``Department of Education--
Contract to Obtain Services of Armstrong Williams,'' B-305368,
September 30, 2005, p. 1.
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While these ad buys are of concern, advertising is hardly a
new practice by the federal government. While one can debate
whether individual federal advertising campaigns are overly
promotional, the public should know they themselves are
sponsoring a government marketing piece. The statement ``This
mailing was prepared, published, and mailed at taxpayer
expense'' must appear on mass mailings by Members of
Congress.\4\ Requiring a similar disclosure to the
communications materials produced by the Executive Branch will
help ensure the public is better informed about the services
provided by the federal government and how the federal
government is promoting the use of those services.
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\4\P.L. 104-197.
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LEGISLATIVE HISTORY
H.R. 3308 was introduced by Representative Billy Long on
October 22, 2013, and referred to the Committee on Oversight
and Government Reform. Similar legislation, S. 1921, was
introduced on January 14, 2014, by Senator Roy Blunt, and
referred to the Senate Committee on Homeland Security and
Governmental Affairs.
Section-by-Section
Section 1. Short title
The short title of the bill is the ``Taxpayer Transparency
Act of 2014''.
Section 2. Requirements for printed materials and advertisements by
federal agencies
Communications funded by a federal agency to advertise or
provide information on a federal government program, benefit,
or service must clearly indicate the piece was developed and
distributed at taxpayer expense. For communications funded
entirely by user fees--or by any other source that does not
include federal funds--agencies may indicate the communication
is funded by the United States Government.
Section 3. Guidance for implementation
Requires the Director of the Office of Management and
Budget to develop and issue guidance within six months of
enactment on implementing the bill.
Section 4. Judicial review and enforceability
Clarifies that the bill does not provide for judicial
review of compliance or noncompliance with any provision in the
bill. Provides that no provision of the bill shall be construed
to create a right or benefit.
DIRECTED RULEMAKINGS
H.R. 3308 requires the Director of the Office of Management
and Budget to develop and issue guidance within six months of
enactment on implementing the bill.
DUPLICATIVE PROGRAMS
No provision of H.R. 3308 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Explanation of Amendments
Mr. Farenthold offered an amendment in nature of a
substitute to H.R. 3308. The amendment: (1) makes clear the
bill applies to communications printed or otherwise produced
after the date of enactment; (2) allows agencies to substitute
the term `funded by the United States Government' for products
funded entirely by user fees or other sources that do not
include federal funds; (3) clarifies application of the bill to
communications that provide information on a federal program,
benefit, or service; (4) eliminates the exceptions to the
policy provided in the introduced bill; (5) clarifies that the
bill does not provide for judicial review of compliance or
noncompliance with any provision in the bill; and (6) requires
the Director of the Office of Management and Budget to provide
implementing guidance within six months of enactment.
The amendment was agreed to by voice vote.
Committee Consideration
On February 11, 2014, the Committee met in open session and
ordered reported favorably the bill, H.R. 3308, as amended, by
voice vote, a quorum being present.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill requires the federal government to disclose that
advertisements or materials providing information on a program,
benefit or service are paid for by the taxpayer. As such this
bill does not relate to employment or access to public services
and accommodations.
Legislative branch employees and their families, to the
extent that they are otherwise eligible for the benefits
provided by this legislation, have equal access to its
benefits.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Duplication of Federal Programs
No provision of H.R. 3308 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
H.R. 3308 requires the Director of the Office of Management
and Budget to develop and issue guidance within six months of
enactment on implementing the bill.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
H.R. 3308 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 3308. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 3308 from the Director of
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 14, 2014.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3308, the Taxpayer
Transparency Act of 2014.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 3308--Taxpayer Transparency Act of 2014
H.R. 3308 would require that communications from federal
agencies to the public clearly state that the communication is
composed and disseminated at taxpayer expense. Agency
communications that are funded with user fees or nonfederal
funds would need to clearly state that the communication is
funded by the United States government. The bill would cover
any type of advertisement or communication transmitted by any
means that provides information about any government program,
benefit, or service.
Because the legislation would apply only to communications
produced after enactment, CBO estimates that this requirement
on future agency communications with the public would have no
significant impact on the budget. The legislation could affect
direct spending by agencies not funded through annual
appropriations; therefore, pay-as-you-go procedures apply. CBO
estimates, however, that any net increase in spending by those
agencies would not be significant. Enacting the bill would not
affect revenues.
H.R. 3308 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by Theresa Gullo, Deputy
Assistant Director for Budget Analysis.
ADDITIONAL VIEWS
H.R. 3308 would require agencies to print at the bottom of
advertisements and educational communications that they are
``printed or published at taxpayer expense.'' The bill would
change existing requirements for many government agencies,
including the Department of Defense. The Army, for example,
currently prints on its recruitment materials: ``Paid for by
the United States Army.'' The Committee has identified no
legitimate reason to change these requirements for the
military, and the Committee has held no hearings on the topic
of this legislation.
Representative Duckworth also raised a concern during the
Committee's consideration of this bill that certain agency
materials, such as mental health outreach materials issued by
the Department of Veterans Affairs, should include the name of
the agency rather than ``printed or published at taxpayer
expense.'' This practice would be consistent with that of
military agencies and would encourage veterans and
servicemembers to seek out and obtain all services and benefits
to which they are entitled.
Chairman Issa and Chairman Farenthold, the sponsor of the
substitute amendment, committed to work with Representative
Duckworth to address these concerns. Chairman Issa said:
I would join with my colleague from Texas in saying we
would enjoy working with you to make sure that we make it very
clear so as not to discriminate or cause veterans or military
not to be involved. So I think we can find the best language
together.
These concerns should be fully addressed before any further
consideration of this legislation.
Elijah E. Cummings.
Tammy Duckworth.
