Lobby Reform Update

Although GOP leaders are promising a final lobby reform package by the July 4 recess, a group of Republican Senators has broken rank and is threatening to filibuster the lobby reform conference report if it includes a provision expanding regulation of independent 527 organizations.

On June 9, a group of seven senators sent a letter to Senate Majority Leader Bill Frist (R-TN) opposing the inclusion of a provision on independent political committees (527s) in the lobby reform bill expected to go to conference in early July. The 527 provision, included in the House version but not in the Senate bill, would subject 527s that work on federal elections to essentially the same contribution limits and reporting requirements as federal candidate campaigns and political parties. Originating out of Sen. George Allen's (R-VA) office, the letter has also been signed by Sens. Sam Brownback (R-KS), Tom Coburn (R-OK), Jim DeMint (R-SC), Mike Enzi (R-WY), John Sununu (R-NH) and David Vitter (R-LA).

The letter defends 527 organizations, calling them "nonprofit advocacy groups" that "pose no threat of corruption as they are required to disclose all donors, barred from urging voters to support or oppose a candidate, and prohibited from coordinating with political parties or elected officials."

Additionally, the letter argues, "Republicans do not need, and should not attempt, to muzzle their opponents. The increase in free speech over the last two decades made possible by the growth of talk radio, cable TV and the Internet has benefited our Party, which allowed us to promote individual freedom and opportunity that has led to unprecedented prosperity for our nation."

While most of the opposition to the 527 provision has come from Democrats, some Republicans and conservative groups have begun to oppose it. In April, members of the House Republican Study Committee, led by Rep. Mike Pence (R-IN), opposed H.R. 513, a stand alone 527 reform bill that has now been married with the lobby reform legislation that passed the House. David Keating, executive director of the Club for Growth, conservative 527, has also come out against expanding 527 regulation, saying last week it would award extra points on its scorecard - annual ratings of lawmakers - to members of Congress that oppose regulating independent 527 groups.

What this means for the lobby reform conference is unclear. Although Frist and House Speaker Dennis Hastert (R-IL) stated on June 9 that they have asked lobby reform conferees to have a final package ready by the July recess, the House still has yet to name conferees to meet with the Senate, which named its conferees last month. Hastert has said that he will name conferees before the July recess. There is speculation that he is avoiding naming conferees until staff behind the scenes come to agreement (called pre-conferencing) on specific provisions of the bill.

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