A look at what's happening with the new campaign finance law
June 22, 2002
By SHARON THEIMER
Associated Press Writer
WASHINGTON (AP) - In a few short days, the Federal Election Commission has created numerous exemptions to the new law meant to reduce the influence of huge "soft money" donations on political campaigns.
The decisions have startled the sponsors of the law - and even the FEC's own chief lawyer. Here are some answers to questions about what the agency has done and what it will mean for political fund raising when the new law takes effect in November:
Q: What is the law intended to do?
A: Its sponsors say it was meant to end the flow of soft money - unlimited campaign contributions from corporations, unions and others that often reach six figures. Under the old rules, the political parties can spend soft money on get-out-the-vote drives, generic TV ads and other party-building activities, but aren't supposed to use it to help a specific candidate. Members of Congress can raise it for political action committees that fund a wide array of political activities, as long as they do not use it directly for their own campaigns.
The national parties and congressional and presidential candidates will be barred from spending soft money after this fall's election.
Q: If they can't take soft money, how can they pay for their campaigns?
A: They can still raise limited contributions from individuals and special-interest groups. This kind of campaign cash, prized because the parties and candidates can spend it however they wish, is known as hard money. President Bush raised more than $100 million of it for the 2000 primary. The new law lets political parties and federal candidates raise more hard money than ever, doubling the amount an individual can give to a congressional or presidential candidate to $2,000 per election, for example.
Q: How about big companies and unions?
A: They can't contribute hard money directly, but their employees can set up political action committees to donate it to national parties and candidates.
Q: What's wrong with soft money, anyway?
A: Critics say it's gotten out of hand. Republicans and Democrats are raising millions from special interests, many with business before Congress and the government. The Democratic National Committee received a $7 million check from a Hollywood executive earlier this year. The law's sponsors also say parties and politicians are pushing the envelope too far in spending soft money, finding tricky ways to use it to affect individual candidates and races.
Q: If Congress banned them from raising it, how can the FEC allow it?
A: It's the commission's job to enforce the new law. The first step is interpreting what the law does and writing rules spelling that out for donors, political parties and candidates. The commission has wide latitude.
Q: What has the FEC done so far?
A: The commission decided this week that the law doesn't entirely ban members of Congress or the president from soliciting soft money. It says they can still speak at state and local party events where soft money is raised. The FEC says the only way they can violate the ban anywhere else is by explicitly asking someone to donate soft money.
Q: Why are critics unhappy with that?
A: The law's sponsors and even the commission's chief lawyer say there are plenty of ways to get somebody to give soft money without explicitly asking for it. They wanted a broader rule that would penalize lawmakers or national party officials who suggest in any way that a donor give soft money. The commission says it has no business regulating private conversations.
Q: If soft money is so bad, why can state and local parties keep raising it?
A: Congress says it doesn't want to tell states how to regulate their campaigns. Still, the law limits how much soft money state and local parties can raise and how they can spend it, to try to keep it from sneaking into congressional and presidential races.
Q: What's next?
A: After the FEC finishes the soft money rule, expected by Tuesday, it will look at other parts of the law, including restrictions on special-interest group ads and coordination between national and state parties. The law's sponsors are watching closely and may take action in Congress or go to court if they think the commission isn't enforcing the new law. Meanwhile, several groups are suing to overturn the law, arguing it violates free-speech and other constitutional rights.
