While it could be perceived as a gaping loophole to the FECA, which,
arguably it has been forever, it cannot be said to be one with respect
to national party committees.  See the Explanation and Justification of
the Soft Money Regulations at 67 FR 49089 where the FEC rejects an
exception for soft money for national committees for redistricting,
legal defense funds and civil penalties.


-----Original Message-----
From: owner-election-law_gl@majordomo.lls.edu
[mailto:owner-election-law_gl@majordomo.lls.edu] On Behalf Of
ban@richardwinger.com
Sent: Wednesday, January 07, 2004 4:32 PM
To: election-law@majordomo.lls.edu
Subject: A big BCRA loophole regarding fines?

A friend of mine sent me this e-mail.  Can anyone
confirm that "contributions" to a candidate or a
political committee, in the form of payment of a fine,
can be made by anyone in any amount??

------------
I confirmed the following with the FEC by phone.   I
spoke to a number of 
people at the  information division and the
administrative fines division.

It seems that the FEC does not require the
administrative or civil fines to 
be paid out of committee funds so that anyone can
pay the fine for a 
committee AND that a payment of a fine to the FEC is
not considered a 
"contribution" to the committee.  Neither the
offending committee nor the 
FEC has to  report who paid the fine.

Entities who are otherwise restricted from donating
money to a federal 
political committee may pay the fines of a political
committee.  This would 
include corporations, non-profits, unions, foreign
nationals, and foreign 
governments.   George Soros could tell the
Democratic National Committee or 
any other anti-Bush committee to do whatever it
wanted, whenever it wanted 
and that he would pick up the tab after the fact if
they were fined.   The 
NRA could do the same thing on the other side.

The FEC confirms my analysis verbally but says that
there is no 
documentation that spells it out.  There just is no
law or FEC procedure 
that covers limitations on who can pay a fine or how
much they can 
pay.     I guess the Commission could schedule
hearings and propose 
new  regulations that would restrict such activity
but as yet they 
haven't.  It is hard to believe that I'm the only
one who has noticed this 
loophole in the BCRA.  I'm not sure how to get this
confirmed or denied in 
writing by the FEC.

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