1. Campaign Finance Reform
Unit II
Election Process
Campaign Finance Reform

2. What you need to know about campaign finance
FEC – Federal Election Commission
BCRA – Bipartisan Campaign Reform Act
Hard money = Federal money
Political donations raised from federally permissible sources within the limits established by BCRA
Soft money = Nonfederal money
Political donations made in such a way as to avoid federal regulations.

3. Overview History of Campaign Finance Regulation
Beginning of time—Civil War: No regulation
Civil War—1910
Gilded Age
Exceptionally scandalous politicians nationally
Boss Tweed
1868: 75% of money used in congressional elections through party assessments
1867: Naval Appropriations Bill
First federal effort to regulate campaign finance
Aimed at stopping the political shakedown naval yard workers for political contributions
Prohibits officers and employees of the fed. gov’t from soliciting contributions
1883: Civil Service Reform Act (Pendleton Act) prohibits the same solicitation of all federal workers

4. Overview History of Campaign Finance Regulation
Corrupt Practices Acts of 1911 and 1925
Set disclosure requirements for House and Senate Elections
Spending limits ($25k for Senate; $5k for House)
Ridiculously weak and regularly violated
1971 Federal Election Campaign Act (FECA)
1976: Buckley v. Valeo (1976)

5. Buckley v. Valeo
Buckley v. Valeo, (1976), was a case in which the Supreme Court of the United States upheld a federal law which set limits on campaign contributions, but ruled that spending money to influence elections is a form of constitutionally protected free speech, and struck down portions of the law. The court also stated candidates can give unlimited amounts of money to their own campaigns.

6. Campaign Finance Reform and Buckley I
Original Provision
Effect of Buckley v. Valeo
Expenditure limits
Overall spending limits (Congress and president)
Struck down partially (freedom of speech)
Limits on the use of candidates’ own resources
Struck down entirely (freedom of speech)
Limits on media expenditures
Independent expenditure limits

7. Campaign Finance Reform and Buckley II
Original Provision
Effect of Buckley v. Valeo
Contribution limits
Individual limits: $1k/candidate/election
Affirmed
PAC limits: $5k/candidate/election
Party committee limits: $5k/candidate/election
Cap on total contributions individual can make to all candidates ($25k)
Struck down (freedom of speech)
Cap on spending “on behalf of candidates” by parties

8. Federal Election Commission
Purpose
In 1975, Congress created the Federal Election Commission (FEC) to administer and enforce the Federal Election Campaign Act (FECA)
the statute that governs the financing of federal elections.
The duties of the FEC, which is an independent regulatory agency, are to
disclose campaign finance information
enforce the provisions of the law such as the limits and prohibitions on contributions,
oversee the public funding of Presidential elections.

9. FEC Rules & Regulations The Players
Government
FEC – Federal Election Commission
Campaign Committees
Candidates
National Party Committees
State & Local Party Committees
Separate Segregated Funds
PACs connected to corporations, unions, etc.
Nonconnected Committees
All other PACs
527s
Individuals

10. Various Election Law Federal Election Campaign Act (FECA) 1975
Bipartisan Campaign Reform Act (BCRA) 2002
Major changes under BCRA

11. McCain Feingold 2002
The Bipartisan Campaign Reform Act (BCRA) of 2002, also known as "McCain-Feingold," after its sponsors, is the most recent major federal law on campaign finance, which revised some of the legal limits of expenditure set in 1974, and prohibited unregulated contributions (called "soft money") to national political parties. ‘Soft money’ also refers to funds spent by independent organizations that do not specifically advocate the election or defeat of candidates, and are not contributed directly to candidate campaigns.

12. What does Federal Election Law Regulate?
In General
The financing of federal elections
Specifically
Disclosure of financial activity
Contributions
Receiving and Giving
Expenditures
Candidate support activities
Federal election activities

13. Types of Money Federal Funds Levin Funds Nonfederal Funds
Collected from permissible sources
Subject to contribution limits
Levin Funds
For state and local party committees only
Collected from any entity except fed cand.
Only used for certain types of FEA
Nonfederal Funds
Subject to state law only
May be used to pay for expenses related to not federal elections

14. Hierarchy of MONEY State Parties
Federal
“Hard Money”
Levin
Quasi-Fed $
State
“Soft Money”
Federal Money
Most limitations
Federal, state and local elections
Levin Money
Fewer limitations
Some Federal election activities, state and local
State Money
Typically, fewest limitations
State and local elections only

15. Where does my money go? It depends! Candidate
Candidate specific activities
Contributions to other candidates, parties or causes
DNC/RNC
Federal candidates
Allocated nationally
State Party Committees
Federal, state & local candidates
Allocated statewide
PACs
Support candidates, parties that agree on specific issues
527s
Separate campaign