05-S0271 on Feb 2, 2005

OnTheIssues.org Explanation: "527 organizations" were inspired by the McCain-Feingold campaign finance reform bill. The "527" refers to the relevant section of the tax code. 527s are independent organizations which raise and spend money on behalf of a candidate, without coordinating with the candidate. An example is the "Swift Boat" group in the 2004 elections. OFFICIAL CONGRESSIONAL SUMMARY: A bill to clarify when organizations described in section 527 of the Internal Revenue Code must register as political committees.

SPONSOR'S INTRODUCTORY REMARKS: Sen. McCAIN: This bill would end the illegal practice of "527" groups spending soft money on ads and other activities to influence Federal elections. A number of 527 groups raised and spent a substantial amount of soft money in a blatant effort to influence the outcome of last year's Presidential election. These activities are illegal under existing laws, and yet once again, the FEC has

failed to do its job and has refused to do anything to stop these illegal activities. Therefore, we must pursue all possible steps to overturn the FEC's misinterpretation of the campaign finance laws, which is improperly allowing 527 groups whose purpose is to influence Federal elections to spend soft money on these efforts.

The bill we introduce today is simple. It would require that all 527s register as political committees and comply with Federal campaign finance laws, including Federal limits on the contributions they receive, unless the money they raise and spend is only in connection with non-Federal elections.

Enough is enough. It is time to stop wasting taxpayer's dollars on an agency that runs roughshod over the will of the Congress and the Constitution. We've fought too hard to sit back and allow this worthless agency to undermine the law.

LEGISLATIVE OUTCOME:Referred to Senate Committee on Rules and Administration. Hearings held; never came to a vote.

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