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Panel Allows Solicitation of Soft Money at Fund-Raisers
New York Times ^ | Friday, June 21, 2002 | By RICHARD A. OPPEL Jr.

Posted on 06/20/2002 10:14:28 PM PDT by JohnHuang2

June 21, 2002

Panel Allows Solicitation of Soft Money at Fund-Raisers

By RICHARD A. OPPEL Jr.

WASHINGTON, June 20 — Angering backers of the new campaign-finance law, federal election regulators approved a rule today that will allow federal candidates speaking at state or local fund-raisers to seek unrestricted soft money contributions, although sponsors of the law say it bans lawmakers from soliciting such money.

The Federal Election Commission also approved a provision that will allow lawmakers to suggest that corporations, labor unions and other groups write big checks to state political parties to pay for party-building activities, as long as they do not specifically ask for a contribution.

The campaign statute, the McCain-Feingold law, was intended to eliminate the influence of soft money — the unlimited and largely unregulated gifts from corporations, unions and others — in federal elections. But the Federal Election Commission, which is writing regulations to put the law into effect, has made rulings over the last two days that critics said would open loopholes, allowing lawmakers and state political parties to be more involved in raising and spending soft money than Congress intended. The commission is expected to formally approve more than 300 pages of rules within days.

Supporters of the law won a big victory on Wednesday when the commission rejected an amendment sponsors of the law said would have destroyed a prohibition on state parties using soft money to pay for "issue advertisements" that are really thinly veiled attacks on candidates for Congress or the White House.

But throughout the two-day meeting, the commission has narrowed the force of the new law in other ways. A number of its rulings track proposals it made last month that had infuriated the four principal sponsors of the law.

In a joint statement tonight, the four — Senators John McCain, Republican of Arizona, and Russell D. Feingold, Democrat of Wisconsin, and Representatives Christopher Shays, Republican of Connecticut, and Martin T. Meehan, Democrat of Massachusetts — attacked what they called the commission's decision to "flout Congressional intent and substitute its own policy preferences."

They cited "overly narrow" definitions that could allow federal lawmakers to suggest donors make soft money contributions. Those rulings, the lawmakers said, could allow candidates and party leaders to raise soft money "using careful language or a `wink and a nod.' "

But Benjamin L. Ginsberg, a lawyer who represents the Republican national political committees, offered a much different view.

"They are being, for better or worse, faithful to the statute and doing a reasonably practical job of interpreting the gray areas," Mr. Ginsberg said. The criticism of the commission, he said, is "overheated rhetoric" that "tells you how far off kilter the debate has gone."

Larry Noble, a former F.E.C. general counsel who is now executive director of the Center for Responsive Politics, a nonpartisan campaign watchdog group in Washington, said the rulings show that the majority of the six-member commission "views this law as problem to be dealt with."

"They are putting in a lot of loopholes," Mr. Noble said.

Karl J. Sandstrom, a Democratic commissioner who joined with the three Republican commissioners to form the bloc that approved many of the provisions, acknowledged that many rulings narrowed the language that the sponsors wanted to see.

But he defended the decisions as necessary to properly implement the law. "It has been narrowed from the most expansive reading of the statute, but it remains a dramatic makeover of our national political system at every level," he said.

But Scott Thomas, a commissioner and Democratic appointee, said, "The bottom line is, this is certainly contrary to the intent of the legislation."

The McCain-Feingold statute prohibits national political parties from raising or spending soft money. But it allows state and local parties to continue the practice — subject to strict limits on how these parties can raise the money and how and when they can spend it. It is in those areas where the election commission most seriously chipped away at the law, said its supporters.

For example, the commission limited the types of party-building activities — related to voter registration, voter identification and get-out-the-vote activities — that state parties must finance without soft money. The commission also exempted the parties' use of the Internet — whether e-mail messages, streaming video or other applications — from many of the soft money provisions.

In one decision, the commission approved a rule that bans federal officeholders from specifically asking for soft money contributions for state parties, but not suggestions that such a donation be made. The ruling came even though the commission's general counsel suggested it could allow lawmakers to evade provisions meant to prohibit them from raising such money.

In a vote this afternoon, the commission approved allowing lawmakers to speak at state or local fund-raisers "without restriction or regulation," freeing them to discuss soft money contributions.

Commissioner Michael E. Toner, a Republican appointee, defended the amendment, saying the commission should not be "parsing over those comments" at party fund-raisers.

But Mr. Thomas said it would allow much more explicit soft money solicitations.


TOPICS: News/Current Events; Politics/Elections
KEYWORDS: cfr; cfrlist; fec; silenceamerica
Friday, June 21, 2002

Quote of the Day by Snuffington

1 posted on 06/20/2002 10:14:30 PM PDT by JohnHuang2
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To: *CFR List; *Silence, America!
.
2 posted on 06/20/2002 10:21:39 PM PDT by Libertarianize the GOP
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To: JohnHuang2
"They are putting in a lot of loopholes," Mr. Noble said.

Since it was a law written by politicians, for politicians, what did Mr. Noble expect?

Reform?

3 posted on 06/20/2002 10:22:33 PM PDT by okie01
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To: Libertarianize the GOP
Constitutionally forcible rape is still an assault on the Constitution but for all its laudable and laughable claim to ban soft money in politics, its now allowed soft money through the back door. Comrades, that's some reform!
4 posted on 06/20/2002 10:24:28 PM PDT by goldstategop
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To: okie01
To Mr. Nobles, the First Amendment is another one of those pesky 'loopholes'.
5 posted on 06/20/2002 10:27:03 PM PDT by JohnHuang2
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To: goldstategop

What I fear is that the Law will be interpreted in such a manner as to silence groups that those in power don't want heard but so that those already elected are exempt or their crimes will simply be ignored. In my State the corrupt Attorney General already makes it a practice to hammer Republicans and their supporters while ignoring Democrat supporters. She was sued and forced to deal with the State Teachers Union but let them off with a token slap on the wrist while eagerly hammering a major Republican fund raiser for a technical violation.

6 posted on 06/20/2002 10:32:15 PM PDT by Libertarianize the GOP
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To: Libertarianize the GOP
That's the reason CFR was passed --- to cripple conservatives ability to compete in the political process. Although it could come back to bite the Rats in the rear once they realize the GOP's built in financial advantage is not so easily overcome. They would have done well to have let things alone.
7 posted on 06/20/2002 10:35:40 PM PDT by goldstategop
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To: JohnHuang2
Angering backers of the new campaign-finance law, federal election regulators approved a rule today that will allow federal candidates speaking at state or local fund-raisers to seek unrestricted soft money contributions, although sponsors of the law say it bans lawmakers from soliciting such money.

I never really understood what the phrase "the devil is in the details" meant until this article. ROFLMAO.

8 posted on 06/20/2002 10:38:23 PM PDT by Howlin
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To: McGavin999
Lookie here!
9 posted on 06/20/2002 10:39:08 PM PDT by Howlin
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To: Howlin
The Comrades' anger is just for show. Its business as usual as tons of more soft money will be raised after November 6th. Count on it.
10 posted on 06/20/2002 10:41:26 PM PDT by goldstategop
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To: goldstategop
Yes, and most of it for the RNC. As my son use to day, "Psych!"
11 posted on 06/20/2002 10:45:21 PM PDT by Howlin
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To: Howlin
ROTFLMCO, and just who didn't expect this? BTW, has anyone heard anything about the lawsuit filed by McConnell with the USSC?
12 posted on 06/20/2002 11:02:37 PM PDT by McGavin999
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To: McGavin999
They are in the process of doing discovery in Federal District Court. The schedule calls for discovery to end in the fall, then a trial or, more likely, motions for summary judgement around Thanksgiving. Then a decision will be issued, probably in January or so, and then it will go to the Supreme Court. We probably won't get a Supreme Court decision until the fall of 2003, though they might get it out about a year from now.
13 posted on 06/21/2002 1:31:42 PM PDT by Rensselaer
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To: Rensselaer
I thought they got some kind of waiver and took it directly to the USSC?
14 posted on 06/21/2002 6:36:33 PM PDT by McGavin999
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To: McGavin999
It doesn't go direct to the SCOTUS; instead it goes to a special three judge panel in the district court, then skips the Court of Appeals and goes straight to the SCOTUS.
15 posted on 06/22/2002 2:30:13 PM PDT by Rensselaer
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