Mr. Potter states below that the Commission "deadlocked today". I would like to note for the record that the Commission did not deadlock. The bipartisan majority voted 2-4 (Toner and Thomas - McDonald, Weintraub, Smith, Mason) not to adopt the proposed regulations.
Victoria Wu
Office of Chairman Smith
Federal Election Commission
202-694-1012
In a message dated 5/13/2004 3:53:41 PM Eastern Daylight Time, TP@capdale.com writes:
I agree with Mike Forsythe that the RNC statement today on 527s (below)
IS strongly worded-but I also think it is partially incorrect.
The FEC deadlocked today and did not adopt new regulations. It did not,
however, vote to revoke the existing regulations --and it does not have
the power to rewrite the statute. Groups whose major purpose is to elect
or defeat federal candidates are still covered by the law. If GOP groups
take the approach Democratic groups have done, they also will have FEC
enforcement complaints filed against them. If the FEC fails to act
against either DEM or GOP groups, that failure to act is reviewable by
the federal courts.
The RNC's statements that these 527s are "clearly illegal" will be used
in court against GOP groups just as well as against Democratic groups.
No one should think the FEC's failure to pass a regulation today settles
the matter for the 2004 cycle, or disposes of the enforcement complaints
already before the FEC's General Counsel on the Democratic groups (and
ready to be filed against any new GOP groups). Further, the fact that
the FEC did not approve a regulation that would clarify the major
purpose test still allows the FEC (or a reviewing Court, if necessary)
to find that some groups are violating the law and existing regulations
even without new regulations clarifying supposed gray areas.
In sum, the battle over 527s is not over--it enters a new phase. Anyone
who thinks the FEC's inaction today settles the matter legally and opens
the door to more 527 activity will be in for an unpleasant surprise.
Trevor Potter
President and General Counsel, Campaign Legal Center
-----Original Message-----
From: MICHAEL FORSYTHE, BLOOMBERG/ WASHINGTO
[mailto:MFORSYTHE@bloomberg.net]
Sent: Thursday, May 13, 2004 3:30 PM
Subject: Fwd: FW: Statement on Today's FEC Decision
Wow. What a strongly worded statement. Mike Forsythe
----- Original Message -----
From: Christine Iverson - Communications
At: 5/13 15:11
-----Original Message-----
From: Christine Iverson - Communications
Sent: Thursday, May 13, 2004 3:04 PM
To: Christine Iverson - Communications
Subject: Statement on Today's FEC Decision
FOR IMMEDIATE RELEASE CONTACT: Christine
Iverson
Thursday, May 13, 2004
202-863-8614
Joint Statement by Bush-Cheney Campaign Chairman Marc Racicot and RNC
Chairman Ed Gillespie on Today's FEC Ruling on 527 Groups
"The FEC's decision today to do nothing to stop the massive spending of
soft money "527" committees to influence the 2004 elections is
unfortunate, but provides clarity.
"It has always been clear to us that the Bipartisan Campaign Reform Act
("BCRA") and its subsequent affirmation by the Supreme Court would limit
the role of political parties in the political process and allow special
interest "527" groups to proliferate. We had always assumed however,
that the provisions of the Federal Election Campaign Act that have
existed since the 1970's and were not changed by BCRA would require the
527s to follow the basic tenants underlying federal campaign finance
law.
"We erroneously thought "527" groups would be regulated by their status
and their activities. We expected that when one of these "527" groups
raised and spent more than $1,000 for the specific purpose of defeating
or electing federal candidates such as President Bush or John Kerry,
that particular "527" group would fall under the Federal Election
Commission's umbrella as a federal political committee. In other words,
the "527" would have to spend and raise federally regulated money, "hard
dollars." No corporate money could be raised nor spent and individual
contributions would be limited to $5,000 per year.
"Today's decision to delay addressing fundamental questions regarding
the regulation of "527's" is irresponsible. It also sets the stage for a
total meltdown of federal campaign finance regulation in 2004 - the
first election after BCRA supposedly banned soft money from influencing
federal candidates and elections.
"The Commission by its own action, or more precisely inaction, today has
given the "green light" to all non-federal "527's" to forge full steam
ahead in their efforts to affect the outcome of this year's Federal
elections and, in particular, the presidential race. "Conservative
groups now have the go-ahead they were waiting for as the commission has
now made clear that these "527"groups will not be affected by the
federal campaign finance rules, at least in 2004.
"As FEC Commissioner Michael Toner said, "Delaying a decision is making
a decision-namely, that we are not going to issue any regulations for
the 2004 elections. We are going to see a new 'soft money' arms race
for the 2004 election." (Delay Urged for FEC Action on Pro-Democratic
Groups, Washington Post, 5/12/04)
"Look at the blatant anti-President Bush and pro-Kerry activity by
MoveOn.org, The Media Fund, ACT and others. Add in their uninhibited
coordination with agents of the Kerry campaign and the Democratic Party
at the national and state levels. Remember that all of this information
was known to the FEC during its "527" rulemaking deliberations.
"By today's action, the FEC has sanctioned the activities of these
groups. Its decision sends a very clear signal to the political
community -- let the "527" battle begin.
"The 2004 elections will now be a free-for-all. Thanks to the
deliberate inaction by the Federal Election Commission, the battle of
the 527's is likely to escalate to a full scale, two-sided war.
"Groups like the Leadership Forum, Progress for America, The Republican
Governor's Association, GOPAC and others now know that they can legally
engage in the same way Democrat leaning groups like ACT, the Media Fund,
MoveOn and Moving America Forward have been engaging.
"Now that the Commission has spoken, or not spoken, it is all but
certain that those groups that would like to see the President
re-elected and the U.S. House and Senate remain in Republican control
will begin raising and spending money in the same manner as those groups
that would like to see the President defeated and the U.S. House and
Senate in Democratic control have already been doing. Thanks to the
Federal Election Commission, the "527" battle will now rage unabated
through Election Day."
###
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