Although most 527s would argue the issue is clear, I, and others, have
argued otherwise (see Glenn Moramarco before the House Committee on Ways and
Means (2000)).  It is my view that most federal 527s qualify as political
committees (or at least should be considered a political committee).

In order to qualify as a 527 involved in Federal advocacy, the organization
must claim that it is organized and operated primarily to influence or
attempt to influence the selection, nomination, election or appointment of
any individual to Federal office.

A "political committee" is "any committee, club, association . . . which
receives contributions aggregating in excess of $1,000 during a calendar
year or makes expenditures aggregating in excess of $1,000 during a calendar
year." Contributions and expenditures are defined as anything of value for
the purpose of influencing the nomination or election of a candidate for
federal office.

So on its face a political organization would be a political committee.
But, Buckley limited the definition of political committee, with regard to
the expenditure provision (not necessarily with regard to the contribution
provision).  Buckley limited the definition in the expenditure context to
organizations whose "major purpose" is the "nomination or election of a
candidate."

If a 527 claims that its primary purpose is to influence the selection,
nomination, election or appointment of any individual to federal office
(which it must do to be a 527), why isn't that the same as claiming the
major purpose is the nomination or election of a candidate?"  527s should
not be able to have it both ways.

I understand there are counter-arguments, but I do not think the
express/issue advocacy distinction is the only one that is relevant in this
context. I think 527s that claim their primary purpose is to elect people to
federal office are political committees and thus subject to regulation under
FECA and McCain-Feingold

Donald Tobin
Moritz College of  Law
The Ohio State University

----- Original Message ----- 
From: <WewerLacy@aol.com>
To: <foley.33@osu.edu>; <election-law@majordomo.lls.edu>
Sent: Saturday, December 13, 2003 1:10 PM
Subject: Re: 527s

In a message dated 12/12/03 3:24:48 PM, foley.33@osu.edu writes:

<<  is that a "political committee" is an
organization whose "major purpose" is to influence federal elections. It
seems to me, and I think both Buckley and McConnell support this, that an
organization can have influencing federal elections as its "major purpose"
even if it never engages in express advocacy.  >>

Here is a little clarity.  A Section 527 entity is a "political
organization," which means a party, committee, association, fund, or other

organization,

whether or not incorporated, that is organized and operated primarily for

the

purpose of directly or indirectly accepting contributions or making

expenditures

for an "exempt function."  Exempt function is defined as influencing or
attempting to influence the selection, nomination, election or appointment

of any

individual to Federal, state, or local public office, or office in a

political

organization, or a Presidential elector.

A 527 may certainly seek to influence, directly or indirectly, a Federal
election without engaging in the express advocacy that would require

registration

with the FEC as a "political committee" as defined by FECA and

regulations.

James V. Lacy
Wewer & Lacy, LLP