election-law_gl-digest Thursday, February 21 2002 Volume 01 : Number 145
----------------------------------------------------------------------
Date: Thu, 21 Feb 2002 17:54:49 -0500
From: "Michael Malbin" <mmalbin@cfinst.org>
Subject: Shays-Meehan
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There was a fair amount of discussion on the
listserv last week about the relationship
between the Shays-Meehan bill, the Wellstone
Amendment and MCFL. Several of the
contributions made reference to the Campaign
Finance Institute's eGuide to the bill,
www.CFInst.org/eGuide. The eGuide was
accurate, but far too cryptic on a complicated
and constitutionally central point. We had originally
given readers only two sentences on the effect of the
bill on nonprofits. Those two sentences will be
replaced by about two pages of explanation,
once we can change the website. Until then,
the explanation is below my signature.It was
written by myself and Dan Manatt, an Associate
Director of CFI.
* * * * * * * * * * * * * * * *
Michael J. Malbin
Executive Director
Campaign Finance Institute
1990 M Street NW (Suite 380)
Washington, D.C. 20036
202-969-8890
FAX: 202-969-5612
mmalbin@CFInst.org
* * * * * * * * * * * * * * * *
Electioneering Provisions
Shays-Meehan as passed does the following:
· Definition of Electioneering Communication:
Defines electioneering communication as any broadcast
communication which (1) refers to a clearly identified
candidate for Federal office, (2) is made within 60 days
before a general, special, or runoff election or30 days before a primary
or caucus; and (3) is targeted. Specifically, the bill defines "targeted
electioneering communication" to mean a federal candidate-specific
broadcast communication that can be received by 50,000 or more
persons in the congressional district or state in which a candidate
is running for Congress or Senate, as applicable.
(Section 201, amending 2 USC 434)
· Ban on Corporate/Union Electioneering Communications:
The bill prohibits corporations or unions from making electioneering
communications. It also bans any person or entity from financing
electioneering communications paid from funds that include
contributions from unions or corporations.
(Section 203, amending 2 USC 441b)
· Inoperative Section -- Exception for 501(c)(4)s, 527s:
Immediately after the corporate and labor prohibition,
the bill on its face exempts from the prohibition any 501(c)(4)
nonprofit corporation, or any political committee organized under
section 527 of the tax code - as long as the entity does not take
corporate or union funds. It also exempts any segregated fund
created by a 501(c)(4) or 527 if the segregated fund does not
take corporate or union funds. (Section 203(c)(2), amending 441b).
· Wellstone Amendment - Negates the Exemption:
Notwithstanding the above, the Wellstone Amendment states
that 203(c)(2) does not apply to any 501(c)(4) or 527.
This effectively makes the exemption inoperative. It also raises
many interpretive questions, discussed below. (Section 204).
· Disclosure:
Disclosure provisions apply to any person or entity that makes
electioneering communications of $10,000 or more. Disclosure
of all $1000 contributors is required as follows:
Persons or entities that accept corporate, labor or foreign contributions
would have to create a separate fund that accepts only individual
contributions (assuming they are permitted to make such expenditures
in the bill, as interpreted.)
Persons or entities that do not accept such funds would choose whether
to make electioneering expenditures from their general treasuries or
from a separate fund.
If a permissible electioneering communication uses general treasury
funds, disclosure of all $1000 contributors to the general treasury
would be required.
If the electioneering communication is paid from a separate fund,
the disclosure would be required only for that fund.
(Section 201, amending 2 USC 434.)
Legislative History & Implications
The complexities and contradictions of these provisions stem from
their legislative history. S.27, the original McCain-Feingold, included
the above "electioneering communications" provisions (originally
known as the "Snowe-Jeffords" Amendment) - but did not include
the Wellstone Amendment. The Wellstone Amendment, introduced
as a floor amendment, effectively disabled the original 501(c)(4) and
527 exception. In essence, the Wellstone Amendment says that
the exception provided for by the new electioneering provision,
2 USC 441b(c)(2), does not apply to any 501(c)(4) or 527 organizations -
the very entities (and only entities) covered by the section.
With the exemption removed, the ban on electioneering communications
by corporations and unions would apply to any incorporated 501(c)(4)
or 527 organization. (Most (c)(4)s are incorporated; most 527s are not).
Thus, entities which could make electioneering communications under
the bill as now written, with the Wellstone Amendment, would include
individuals or unincorporated associations, and 501(c)(4)s and 527s
which are not incorporated. Supporters of the bill say they expect
this not to displace MCFL, but that it would be read to permit
electioneering by any 501(c)(4) or 527 that accepts only individual
contributions.
The Wellstone Amendment is especially confusing because it does
not repeal or strike the original exception outright, but maintains both
the operative and inoperative provisions in the final bill. The provisions
are further complicated because multiple terms are used to describe
the same thing i.e. targeted candidate-specific issue ads. Section 201
uses the terms "electioneering communication"; section 203 uses the
term "applicable electioneering communication"; and the Wellstone
Amendment/section 204 uses the term "targeted communication."
They all mean the same thing.
The Wellstone Amendment passed the Senate, ironically, with the support
of Sen.. McConnell and other opponents who termed it unconstitutional.
Some have speculated this multi-layered scheme was devised and left in
place in case the Supreme Court rules the Wellstone Amendment
unconstitutional, with the idea that the statute could then revert to its
original form, with the original Snowe-Jeffords "electioneering" exemption.
If so, it is worth noting that section 203 does not seem to require
501(c)(4)s
or 527s, or their the separate funds, to be political action committees (or
PACs),
with the FECA's $5,000 annual limitation on how much an individual could
give
to a PAC. Such organizations could accept unlimited contributions from
individuals. However, the fund would have to abide by the FECA's source
prohibitions.
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<BODY>
<DIV><FONT face=3DTahoma size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>There was a fair amount =
of discussion=20
on the<BR>listserv last week about the relationship<BR>between the =
Shays-Meehan=20
bill, the Wellstone<BR>Amendment and MCFL. Several of =
the<BR>contributions=20
made reference to the Campaign<BR>Finance Institute's eGuide to the=20
bill,<BR>www.CFInst.org/eGuide. The eGuide was<BR>accurate, but =
far too=20
cryptic on a complicated </FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>and constitutionally =
central=20
point. We had originally </FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>given readers only two =
sentences on=20
the effect of the </FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT color=3D#0000ff>bill on =
nonprofits. =20
Those two sentences will be<BR>replaced by about two pages of=20
explanation,<BR>once we can change the website. Until then,<BR>the =
explanation <SPAN class=3D480204722-21022002> is below my=20
signature.</SPAN>It was <SPAN=20
class=3D480204722-21022002> </SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT color=3D#0000ff><SPAN=20
class=3D480204722-21022002> </SPAN>written by<SPAN=20
class=3D480204722-21022002> </SPAN>myself and Dan Manatt, an=20
Associate <SPAN=20
class=3D480204722-21022002> </SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT color=3D#0000ff><SPAN=20
class=3D480204722-21022002> </SPAN>Director<SPAN=20
class=3D480204722-21022002> </SPAN>of CFI.<BR><BR><BR>* * * * * * * =
* * * * *=20
* * * *<BR><BR>Michael J. Malbin<BR>Executive Director<BR>Campaign =
Finance=20
Institute<BR>1990 M Street NW (Suite 380)<BR>Washington, D.C.=20
20036<BR>202-969-8890<BR>FAX: =
202-969-5612<BR>mmalbin@CFInst.org<BR><BR>* * * *=20
* * * * * * * * * * * *<BR></FONT></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>Electioneering =
Provisions</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial><FONT size=3D2>Shays-Meehan as passed does the =
following:=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial><FONT size=3D2>=B7 Definition of =
Electioneering=20
Communication: </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>Defines electioneering =
</FONT></FONT><FONT=20
face=3DArial><FONT size=3D2>communication as any broadcast =
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>communication which (1) refers to =
a=20
</FONT></FONT><FONT face=3DArial><FONT size=3D2>clearly identified=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>candidate for Federal office, (2) =
is made=20
within 60 days </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>before a general, special, or =
runoff election=20
or30 days before a primary </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>or caucus; and (3) is targeted. =
Specifically,=20
the bill defines "targeted </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>electioneering communication" to =
mean a=20
federal candidate-specific </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>broadcast communication that can =
be received=20
by 50,000 or more </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>persons in the congressional =
district or=20
state in which a candidate </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>is running for Congress or =
Senate, as=20
applicable. </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>(Section 201, amending 2 USC=20
434)</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial><FONT size=3D2>=B7 Ban on Corporate/Union =
Electioneering=20
Communications: </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>The bill </FONT></FONT><FONT =
face=3DArial><FONT size=3D2>prohibits corporations or unions from making =
electioneering </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>communications. =
</FONT></FONT><FONT=20
face=3DArial><FONT size=3D2>It also bans any person or entity from =
financing=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>electioneering communications=20
</FONT></FONT><FONT face=3DArial><FONT size=3D2>paid from funds that =
include=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>contributions from unions or=20
corporations. </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>(Section 203, amending 2 USC=20
441b)</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial><FONT size=3D2>=B7 Inoperative Section -- =
Exception for=20
501(c)(4)s, 527s: </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>Immediately after the =
</FONT></FONT><FONT=20
face=3DArial><FONT size=3D2>corporate and labor prohibition, =
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>the bill on its face exempts from =
the=20
prohibition </FONT></FONT><FONT face=3DArial><FONT size=3D2>any =
501(c)(4)=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>nonprofit corporation, or any =
political=20
committee organized under </FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>section 527 of the tax code - as long =
as the entity=20
does not take <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>corporate or </FONT>union =
funds. It=20
also exempts any segregated fund <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>created by a 501(c)(4) or=20
</FONT></FONT><FONT size=3D2>527 if the segregated fund does =
not <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>take corporate or union =
funds. =20
</FONT></FONT><FONT face=3DArial><FONT size=3D2>(Section 203(c)(2), =
amending=20
441b). </FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial><FONT size=3D2>=B7 Wellstone Amendment - =
Negates the=20
Exemption: </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>Notwithstanding the above,=20
</FONT></FONT><FONT face=3DArial><FONT size=3D2>the Wellstone Amendment =
states=20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>that 203(c)(2) does not apply to =
any=20
501(c)(4) </FONT></FONT><FONT face=3DArial><FONT size=3D2>or 527. =20
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>This effectively makes the =
exemption=20
inoperative. It also raises </FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>many </FONT></FONT><FONT =
face=3DArial><FONT=20
size=3D2>interpretive questions, discussed below. (Section=20
204).</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial><FONT size=3D2>=B7 Disclosure: =
</FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>Disclosure provisions apply to =
any person or=20
entity that makes </FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>electioneering communications of =
$10,000 or=20
more. Disclosure <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>of all $1000 </FONT>contributors =
is=20
required as follows: <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>Persons or entities that accept =
corporate,=20
</FONT></FONT><FONT size=3D2>labor or foreign contributions <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>would have to create a separate =
fund that=20
accepts </FONT></FONT><FONT size=3D2>only individual <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>contributions (assuming they are =
permitted=20
to make such </FONT></FONT><FONT size=3D2>expenditures <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>in the bill, as=20
interpreted.) <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>Persons or entities that do not =
accept=20
</FONT></FONT></FONT><FONT face=3DArial size=3D2>such funds would choose =
whether <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>to make electioneering =
expenditures from=20
</FONT>their general treasuries or <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>from a separate =
fund. <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>If a permissible electioneering=20
</FONT>communication uses general treasury <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>funds, disclosure of all $1000=20
contributors </FONT></FONT></FONT><FONT face=3DArial size=3D2>to the =
general=20
treasury <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>would be =
required. <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2>If the electioneering =
communication=20
</FONT></FONT></FONT><FONT face=3DArial size=3D2>is paid from a separate =
fund, <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial size=3D2><SPAN =
class=3D480204722-21022002> </SPAN>the=20
disclosure would be required only for that fund. =
</FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2>(Section 201, amending 2 USC=20
434.)</FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT color=3D#0000ff></FONT><BR><FONT face=3DArial =
size=3D2>Legislative History=20
& Implications</FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>The complexities and contradictions of =
these=20
provisions stem from </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>their legislative =
history. S.27,=20
the original McCain-Feingold, included <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT>the </FONT>above =
"electioneering=20
communications" provisions (originally <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>known as the </FONT></FONT><FONT =
size=3D2>"Snowe-Jeffords" Amendment) -<SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN>but did not =
include <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>the Wellstone Amendment. =20
</FONT></FONT><FONT size=3D2>The Wellstone Amendment, =
introduced <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>as a floor amendment, =
effectively disabled=20
</FONT></FONT><FONT size=3D2>the original 501(c)(4) and <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>527 exception. In essence, =
the=20
Wellstone Amendment </FONT></FONT><FONT size=3D2>says that <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>the exception provided for by =
the new=20
electioneering provision, <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DI=
V>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002></SPAN></FONT>2 USC 441b(c)(2), does not =
apply to any=20
501(c)(4) or 527 organizations - </FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>the very entities (and only entities) =
covered by=20
the section. <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>With the exemption =
</FONT>removed, the ban=20
on electioneering communications <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>by corporations and unions=20
</FONT></FONT><FONT size=3D2>would apply to any incorporated =
501(c)(4) <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>or 527 organization. (Most =
(c)(4)s=20
</FONT></FONT><FONT size=3D2>are incorporated; most 527s are=20
not). <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>Thus, entities which could make=20
</FONT></FONT><FONT size=3D2>electioneering communications =
under <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>the bill as now written, with =
the=20
</FONT></FONT><FONT size=3D2>Wellstone Amendment, would =
include <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>individuals or unincorporated=20
associations, </FONT></FONT><FONT size=3D2>and 501(c)(4)s and =
527s <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>which are not =
incorporated. =20
Supporters of the bill say </FONT></FONT><FONT size=3D2>they =
expect <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>this not to displace MCFL, but =
that it=20
would be read to permit <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN></FONT>electioneering by any =
501(c)(4) or=20
527 that accepts only individual <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>contributions.</FONT></FONT></FON=
T></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>The Wellstone Amendment is especially =
confusing=20
because it does <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><FONT><SPAN=20
class=3D480204722-21022002> </SPAN>not repeal </FONT>or strike the =
original=20
exception outright, but maintains both <SPAN =
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>the operative and =
</FONT></FONT><FONT=20
size=3D2>inoperative provisions in the final bill. The =
provisions <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>are further complicated=20
</FONT></FONT><FONT size=3D2>because multiple terms are used to=20
describe <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>the same thing i.e. =
targeted=20
</FONT></FONT><FONT size=3D2>candidate-specific issue ads. Section =
201 <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>uses the terms "electioneering=20
</FONT></FONT><FONT size=3D2>communication"; section 203 uses =
the <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>term "applicable electioneering=20
</FONT></FONT><FONT size=3D2>communication"; and the =
Wellstone <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>Amendment/section 204 uses the =
term=20
</FONT></FONT><FONT size=3D2>"targeted =
communication." <SPAN=20
class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN>They all mean the same=20
thing. <SPAN class=3D480204722-21022002><FONT=20
color=3D#0000ff> </FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN=20
class=3D480204722-21022002> </SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>The Wellstone Amendment passed the =
Senate,=20
ironically, with the support </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>of Sen.. McConnell and other opponents =
who termed=20
it unconstitutional. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Some have speculated this multi-layered =
scheme was=20
devised and left in </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>place in case the Supreme Court rules =
the Wellstone=20
Amendment </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>unconstitutional, with the idea that =
the statute=20
could then revert to its </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>original form, with the original =
Snowe-Jeffords=20
"electioneering" exemption. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>If so, it is worth noting that section =
203 does not=20
seem to require 501(c)(4)s </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>or 527s, or their the separate funds, =
to be=20
political action committees (or PACs), </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>with the FECA's $5,000 annual =
limitation on how=20
much an individual could give </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>to a PAC. Such organizations =
could accept=20
unlimited contributions from </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>individuals. However, the fund =
would have to=20
abide by the FECA's source </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>prohibitions. =20
<BR></FONT></DIV></BODY></HTML>
- ------=_NextPart_000_0021_01C1BB00.DB10F400--
------------------------------
Date: Thu, 21 Feb 2002 15:24:30 -0800
From: Rick Hasen <rick.hasen@lls.edu>
Subject: Re: Shays-Meehan
Michael Malbin's post confirms that Shays-Meehan is a "full
employment for election lawyers" bill.
On a more serious note, isn't it true--as Trevor Potter said
in his post last week-- that under section 203 of the bill,
501(c)(4)'s and 527s that don't take labor or union money
can continue to spend unlimited amounts on independent
expenditures (whether constituting express advocacy or not)?
The empirical question seems to be how many of these
organizations don't take such money. Anybody know?
- --
Rick Hasen
Professor of Law and William M. Rains Fellow
Loyola Law School
919 South Albany Street
Los Angeles, CA 90015-1211
(213)736-1466 - voice
(213)380-3769 - fax
rick.hasen@lls.edu
http://www.lls.edu/academics/faculty/hasen.html
------------------------------
End of election-law_gl-digest V1 #145
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