Bipartisan Campaign Reform Act
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The Bipartisan Campaign Reform Act of 2002 (BCRA) is U.S. Congressional legislation which regulates the financing of political campaigns. It is also known as the McCain-Feingold Bill, after its chief sponsors, Senators John McCain (R-AZ) and Russ Feingold (D-WI). The law became effective on 6 November 2002, the new legal limits became effective on 1 January 2003.
As noted in a Supreme Court ruling on the BCRA, it was designed to address three issues:
- The increased role of soft money in campaign financing,
- The proliferation of issue ads, and
- What were regarded as disturbing campaign practices during the federal elections of 1996, including the Presidential race.
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[edit] Provisions
Major provisions:
- A prohibition on soft money contributions to national political parties. "Soft money" refers to unlimited donations nominally made for non-campaign purposes, but potentially used to influence federal elections through advertising on issues and other activities.
- Limitations on the use of soft money, otherwise legal under state law in state races, by state and local political parties, in races where federal candidates also appear on the ballot.
- A prohibition on Federal candidates and officeholders accepting or directing the spending of soft money.
- A prohibition on broadcast advertising by any union or incorporated entity (including non-profit membership organizations) or any organization using corporate or union money, when such ads refer to a candidate for federal election within 60 days of a general election or 30 days of a primary or caucus. The law defines such ads as "electioneering communications."
- Disclosure of sources of finance for "electioneering communications" in excess of $10,000 per year.
- A political party spending money in a general election campaign must choose between making coordinated expenditures on behalf of its candidate, or independent expenditures on behalf of its candidate, but not both. (Ruled unconstitutional in McConnell v. FEC)
- A prohibition on minors making contributions to candidates and political parties. (Ruled unconstitutional by the Supreme Court in McConnell v. FEC)
- Contribution limits raised and indexed for inflation:
- Limit for individual contributions per candidate per election increased from $1,000 to $2,000 ($2300 as of 2007)
- Limit for individual contributions to National Party Committees increased from $20,000 to $25,000 per year ($28,500 as of 2007).
- Limit for individual contributions to state and local party committees increased from $5,000 to $10,000 (not indexed for inflation).
- Total contribution limit raised to $97,500 (as of 2007, $108,200)
Other provisions (incomplete):
- Fundraising on federal property is prohibited.
[edit] History
The first version of the McCain-Feingold Act was introduced in 1997, and was largely authored by Dr. Corrado of Colby College and the Brookings Institute. The Senate Republican leadership refused to allow it to come to a vote in four years, even when the companion bill Shays-Meehan passed the House of Representatives several times (by means of a discharge petition to bring the bill to the floor without the cooperation of the leadership). The House voted 240-189 for the bill on 14 February 2002, a day after the White House Press Secretary -- Ari Fleischer had indicated the President would sign (i.e. not veto) a bill "that improves the current situation". The Senate voted for the House's version of the bill by 60-40, on 20 March, avoiding the need for a conference committee that might block key provisions of the bill. A filibuster was previously ended by cloture 68-32.
Campaign finance reform was a significant issue in the 2000 Presidential campaign, and Republican candidate George W. Bush said that he would support the bill if it was amended to regulate traditionally pro-Democratic sources (labor and government unions) as well as traditionally pro-Republican sources (businesses). The 2000 election campaign had seen an unprecedented growth in soft money, with the combined total for Democrats and Republicans rising from $239 million in 1996 to $449 million in 2000. The scandal enveloping Enron, a company which had been a major soft money donor, also helped build support for the bill. Bush signed the bill, with reservations, on 27 March. In an official statement, he said "I believe that this legislation, although far from perfect, will improve the current financing system for Federal campaigns".
An unusual public awareness campaign came in the form of a 3,200-mile walk by 90 year-old Doris "Granny D" Haddock of Dublin, New Hampshire. Her trek from Pasadena, California to Washington D.C. resulted in the recruitment of thousands of citizens and dozens of organizations, including the AARP, to the issue. Hundreds of newspaper and television reports and one of the first grassroots use of the Internet fueled her campaign. The last 100 miles of her trek were in deep snows on cross-country skis. After a fist-waving speech on the U.S. Capitol's steps, attended by a large crowd of supporters and Members of Congress, she organized for the work of final passage. Two years later, after dozens of vigils, protest walks, two arrests and fasts on Capitol Hill, she was in the gallery of both the Senate and the House when final passage was achieved, receiving salutes from the floors of both chambers.
[edit] Legal disputes
Provisions of the legislation were challenged as unconstitutional by a group of plaintiffs led by Senate Majority Whip Mitch McConnell. In December 2003, the Supreme Court upheld most of the legislation. See McConnell v. FEC.
Subsequently, Republicans and "watchdog" organizations have filed complaints with the FEC concerning the raising and spending of soft money by 527 committees -- officially non-partisan organizations organized under Section 527 of the IRS code. These organizations have been established on both sides of the political aisle, for example, MoveOn.org and Swiftboat Veterans for Truth. 527s are financed in large part by wealthy individuals (most notably George Soros), labor unions, and businesses. In May 2004, the FEC voted to not to write new rules governing 527 organizations, thus allowing it to continue unaffected through the 2004 election cycle. New rules adopted in the fall of 2004 required 527s participating in federal campaigns to use at least 50% "hard money" (contributions regulated by the Federal Election Campaign Act) and provided for the FEC to examine representations made to donors, as well as actual expenditures of funds, to determine whether or not an organization qualified as having raised money "to influence a federal election."
The Democrats have also raised complaints about 527's because of the effect the Swift Boat Veterans for Truth had on the 2004 election. See also campaign finance reform.
[edit] Impact
With the 2004 elections being the first campaign season operating under the new rules, the impact of BCRA is just being felt. It has, however, been a very significant one, as much of the traditional functions of the parties, financed by soft money, are moving to the 527 groups mentioned above.
One immediately recognizable impact is that, as a result of the so-called "stand by your ad" provision, all campaign advertisements now include the candidate appearing on screen to say something similar to "I'm John Doe and I approve this message." Anheuser-Busch parodied this statement in an election-themed series of commercials in 2004, ending each spot with a donkey saying "I'm the Budweiser Donkey and I approve this message."
