OMB Watch Urges Senate Rules Committee 'Oppose 527 Reform Act'

WASHINGTON, DC -- Concerned that the 527 Reform Act of 2005 is overbroad and will hinder nonprofits' speech and advocacy rights, the watchdog group OMB Watch is urging the Senate Rules Committee not to act on the bill (S. 271) set for markup Wednesday April 27. A draft substitute amendment to S. 271 by sponsors Sens. John McCain (R-AZ) and Russell Feingold (D-WI) removes some problems with the original bill. For instance, the substitute bill would ensure 501(c) organizations would not be adversely impacted, as many experts feared (including a member of the Federal Election Commission). Nevertheless, "The bill unfairly treats independent groups the same as parties, candidates, and groups with close ties to candidates," according to Kay Guinane, Counsel for OMB Watch's Nonprofit Advocacy Project. "The Supreme Court has said political speech can only be regulated if there is a threat of corruption. Independent 527s have not been shown to corrupt the system. To the contrary, they brought out record numbers of voters to the polls in 2004." In addition, the exemptions provided in the bill will be lost if a group "promotes, supports, attacks or opposes" a federal candidate -- a condition the bill does not define. Simple criticism of the president or a member of Congress could trigger the same level of regulation that applies to campaigns and political parties. It would drive partisan activity to 501(c) groups in order to avoid FEC regulation, losing the public disclosure required of all 527s. "The Rules Committee must pause to study this bill carefully, reconsider whether it is needed, and make absolutely sure nonprofits' full rights to speak out and be involved in political discourse are protected," said Guinane. ### Read more. OMB Watch is a nonprofit research and advocacy center located in Washington, DC, which promotes an open, accountable government responsive to community needs. Founded in 1983 to lift the veil of secrecy from the White House’s powerful Office of Management and Budget, OMB Watch has since expanded its focus to address institutional responsiveness to public needs.
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