FEC Urged to Exempt Nonpartisan Voter Education in Soft Money Rulemaking

Public comments have been filed and hearings held in the Federal Election Commission’s (FEC) first rulemaking to implement the Bipartisan Campaign Reform Act of 2002, focusing on rules relating to soft money contributions to political parties and fundraising by federal candidates and their agents. Both the Republican and Democratic parties urged a narrow interpretation of the rules, while BCRA Congressional sponsors and reform groups urged a more aggressive approach. Nonprofit advocacy groups OMB Watch and the Alliance for Justice both filed comments urging the FEC to avoid unnecessary regulation of nonpartisan voter education, get out the vote efforts of 501(c) organizations. OMB Watch’s comments recommended that “the regulations contain a presumption that voter education and turnout activity by organizations exempt under IRC 501(c)(3) are nonpartisan and do not promote or attack candidates” in order to “diminish the chilling effect these regulations could have on nonpartisan voter education efforts. Since these efforts help diminish the influence of money in politics, the presumption would further the purpose of BCRA.” The comments also strongly recommended that the FEC drop the terms “federal and non-federal accounts”, noting “Members of Congress, the press, the regulated community and public have all referred to “federal accounts” as hard money accounts, and “non-federal accounts” as soft money accounts. This terminology does a better job of informing the public of the kinds of activities that are covered by the proposed rules.” The Alliance for Justice comments urged the Commission to “omit nonpartisan voter registration, voter identification and GOTV activities” from the definition of regulated federal election activity. The Alliance recommended that the FEC create safe harbors for federal candidates and others involved in nonpartisan fundraising for 501(c) organizations. The next step in the FEC’s implementation of the new campaign finance reform law will be publish the final soft money rule on June 25. It will take effect on November 6, 2002. The previous schedule for subsequent rulemakings has been modified, due the FEC’s heavy workload. The next set of proposed rules, on “electioneering communications”, will be published on July 31, with comments due on August 30 and a public hearing held on September 24-25. See the FEC’s new rulemaking calendar.
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