H1514 CONGRESSIONAL RECORD — HOUSE April 5, 2006 former Republican Leader’s Chief of Staff [Roll No. 87] Filner Lynch Ruppersberger Ed) Buckham.’’ (Roll Call, April 3, 2006); Ford Maloney Rush AYES—218 Frank (MA) Markey Ryan (OH) Whereas, according to Mr. Rudy’s plea Aderholt Gibbons Norwood Gerlach Marshall Sabo agreement, his crimes involving illegal fa- Akin Gilchrest Nunes Gonzalez Matheson Salazar vors and lobbying activity lasted from 1997 Alexander Gillmor Osborne Gordon Matsui Sa´ nchez, Linda through 2004; Bachus Gingrey Otter Green (WI) McCarthy T. Whereas on March 31, 2006, Assistant U.S. Baker Gohmert Oxley Green, Al McCollum (MN) Sanchez, Loretta Grijalva McDermott Barrett (SC) Goode Pearce Sanders Attorney General Alice S. Fisher stated, Gutierrez McGovern Bartlett (MD) Goodlatte Pence Schiff ‘‘The American public loses when officials Harman McIntyre Barton (TX) Granger Peterson (PA) Schwartz (PA) and lobbyists conspire to buy and sell influ- Hastings (FL) McKinney Bass Graves Petri Herseth McNulty Scott (GA) ence in such a corrupt and brazen manner. Beauprez Gutknecht Pickering Higgins Meehan Scott (VA) By his admission in open court today, Mr. Biggert Hall Pitts Serrano Bilirakis Harris Hinchey Meek (FL) Rudy paints a picture of Washington which Poe Shays Bishop (UT) Hart Hinojosa Meeks (NY) the American public and law enforcement Pombo Sherman Blackburn Hastings (WA) Holden Melancon will simply not tolerate.’’ Porter Skelton Blunt Hayes Holt Michaud Price (GA) Slaughter Whereas Mr. Rudy is the second former Boehlert Hayworth Honda Millender- Pryce (OH) high-ranking Republican Leadership staff Boehner Hefley Hooley McDonald Smith (WA) Putnam Bonilla Hensarling Hoyer Miller (NC) Snyder person, in addition to Michael Scanlon, to Radanovich Bonner Herger Inslee Miller, George Solis admit wrongdoing in the corruption inves- Ramstad Bono Hobson Israel Moore (KS) Spratt tigation centered on Mr. Abramoff; Regula Boozman Hostettler Jackson (IL) Moore (WI) Stark Whereas, on March 29, 2006, Mr. Abramoff Boustany Hulshof Rehberg Jackson-Lee Moran (VA) Strickland was sentenced to five years and ten months Bradley (NH) Hunter Reichert (TX) Murtha Stupak in prison after pleading guilty to conspiracy Brady (TX) Hyde Renzi Jefferson Nadler Tauscher Reynolds and wire fraud; Brown (SC) Inglis (SC) Johnson, E. B. Napolitano Taylor (MS) Brown-Waite, Issa Rogers (AL) Jones (NC) Neal (MA) Thompson (CA) Whereas it is the purview of the Com- Ginny Istook Rogers (KY) Jones (OH) Oberstar Thompson (MS) mittee on Standards of Official Conduct to Burgess Jenkins Rogers (MI) Kanjorski Obey Tierney investigate allegations that relate to the of- Burton (IN) Jindal Rohrabacher Kaptur Olver Towns Kennedy (RI) Ortiz ficial conduct of a Member or a staff person, Buyer Johnson (CT) Royce Udall (CO) Kildee Owens the abuse of a Member’s official position, Calvert Johnson (IL) Ryan (WI) Udall (NM) Kilpatrick (MI) Pallone Camp (MI) Johnson, Sam Ryun (KS) Van Hollen and violations of the Rules of the House, and Kind Pascrell Campbell (CA) Keller Saxton ´ to take disciplinary action in cases of wrong- Kucinich Pastor Velazquez Cannon Kelly Schmidt Visclosky doing; Schwarz (MI) Langevin Payne Cantor Kennedy (MN) Wasserman Whereas, the fact that cases are being in- Capito King (IA) Sensenbrenner Lantos Pelosi Larsen (WA) Peterson (MN) Schultz vestigated by the U.S. Justice Department Carter King (NY) Sessions Waters Castle Kingston Shadegg Larson (CT) Platts does not preclude the Committee on Stand- Watt Chabot Kirk Shaw Leach Pomeroy ards of Official Conduct from determining in- Waxman Chocola Kline Sherwood Lee Price (NC) vestigative steps that must be taken; Weiner Coble Knollenberg Shimkus Levin Rahall Lewis (GA) Rangel Wexler Whereas, in the first session of the 109th Cole (OK) Kolbe Shuster Lipinski Reyes Woolsey Congress, for the first time in the history of Conaway Kuhl (NY) Simmons Lofgren, Zoe Ross Wu Crenshaw LaHood Simpson the House of Representatives, the rules of Lowey Rothman Wynn procedure of the Committee on Standards of Cubin Latham Smith (NJ) Culberson LaTourette Official Conduct were changed on a partisan Smith (TX) ANSWERED ‘‘PRESENT’’—5 Davis (KY) Lewis (CA) Sodrel basis, the Chairman of the Committee and Doyle Mollohan Roybal-Allard Davis, Jo Ann Lewis (KY) Souder two of his Republican Colleagues were dis- Green, Gene Paul Davis, Tom Linder Stearns missed from the Committee, the newly ap- Deal (GA) LoBiondo Sullivan NOT VOTING—11 pointed Chairman of the Committee improp- Dent Lucas Sweeney Diaz-Balart, L. Lungren, Daniel Allen Hoekstra Tanner erly and unilaterally fired non-partisan staff, Tancredo Diaz-Balart, M. E. Butterfield Nussle Watson and the Chairman attempted to appoint su- Taylor (NC) Doolittle Mack DeLay Ros-Lehtinen Whitfield Terry pervisory staff without a vote of the Com- Drake Manzullo Evans Schakowsky Thomas mittee in direct contravention of the intent Dreier Marchant Thornberry of the bi-partisan procedures adopted in 1997; Duncan McCaul (TX) b 1656 Ehlers McCotter Tiahrt Whereas, because of these actions, the Tiberi Mr. GORDON changed his vote from Committee on Standards of Official Conduct Emerson McCrery ‘‘aye’’ to ‘‘no.’’ English (PA) McHenry Turner conducted no investigative activities in the Everett McHugh Upton So the motion to table was agreed to. first session of the 109th Congress; Feeney McKeon Walden (OR) The result of the vote was announced Resolved, That the Committee on Stand- Ferguson McMorris Walsh as above recorded. ards of Official Conduct shall immediately Fitzpatrick (PA) Mica Wamp A motion to reconsider was laid on Flake Miller (FL) Weldon (FL) initiate an investigation of the misconduct Weldon (PA) the table. by Members of Congress and their staff im- Foley Miller (MI) Forbes Miller, Gary Weller f plicated in the scandals associated with Mr. Fortenberry Moran (KS) Westmoreland Jack Abramoff’s criminal activity. Fossella Murphy Wicker 527 REFORM ACT OF 2005 Foxx Musgrave Wilson (NM) Mr. EHLERS. Mr. Speaker, pursuant The SPEAKER pro tempore. The res- Franks (AZ) Myrick Wilson (SC) olution qualifies as a question of the Frelinghuysen Neugebauer Wolf to House Resolution 755, I call up the privileges of the House. Gallegly Ney Young (AK) bill (H.R. 513) to amend the Federal Garrett (NJ) Northup Young (FL) Election Campaign Act of 1971 to clar- MOTION TO TABLE OFFERED BY MR. BOEHNER NOES—198 ify when organizations described in Mr. BOEHNER. Mr. Speaker, I move section 527 of the Internal Revenue to table the resolution. Abercrombie Brown (OH) Cummings Ackerman Brown, Corrine Davis (AL) Code of 1986 must register as political The SPEAKER pro tempore. The Andrews Capps Davis (CA) committees, and for other purposes, question is on the motion to table. Baca Capuano Davis (FL) and ask for its immediate consider- Baird Cardin Davis (IL) ation in the House. The question was taken; and the Baldwin Cardoza Davis (TN) Speaker pro tempore announced that Barrow Carnahan DeFazio The Clerk read the title of the bill. the ayes appeared to have it. Bean Carson DeGette The SPEAKER pro tempore (Mr. Becerra Case Delahunt LAHOOD). Pursuant to House Resolu- RECORDED VOTE Berkley Chandler DeLauro tion 755, the bill is considered read. Berman Clay Dicks Ms. PELOSI. Mr. Speaker, I demand Berry Cleaver Dingell The text of H.R. 513 is as follows: a recorded vote. Bishop (GA) Clyburn Doggett H.R. 513 A recorded vote was ordered. Bishop (NY) Conyers Edwards Be it enacted by the Senate and House of Rep- Blumenauer Cooper Emanuel resentatives of the United States of America in The vote was taken by electronic de- Boren Costa Engel Congress assembled, vice, and there were—ayes 218, noes 198, Boswell Costello Eshoo Boucher Cramer Etheridge SECTION 1. SHORT TITLE. answered ‘‘present’’ 5, not voting 11, as Boyd Crowley Farr This Act may be cited as the ‘‘527 Reform follows: Brady (PA) Cuellar Fattah Act of 2005’’.

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SEC. 2. TREATMENT OF SECTION 527 ORGANIZA- or nonconnected committee for which alloca- ‘‘(B) AFFILIATION.—For purposes of this TIONS. tion rules are provided under subsection (b)— paragraph, all qualified non-Federal ac- (a) DEFINITION OF POLITICAL COMMITTEE.— ‘‘(1) the disbursements shall be allocated counts of separate segregated funds or non- Section 301(4) of the Federal Election Cam- between Federal and non-Federal accounts in connected committees which are directly or paign Act of 1971 (2 U.S.C. 431(4)) is amended accordance with this section and regulations indirectly established, financed, maintained, by striking the period at the end of subpara- prescribed by the Commission, and or controlled by the same person or persons graph (C) and inserting ‘‘; or’’ and by adding ‘‘(2) in the case of disbursements allocated shall be treated as one account. at the end the following: to non-Federal accounts, may be paid only ‘‘(3) FUNDRAISING LIMITATION.—No donation ‘‘(D) any applicable 527 organization.’’. from a qualified non-Federal account. to a qualified non-Federal account may be (b) DEFINITION OF APPLICABLE 527 ORGANI- ‘‘(b) COSTS TO BE ALLOCATED AND ALLOCA- solicited, received, directed, transferred, or ZATION.—Section 301 of the Federal Election TION RULES.—Disbursements by any separate spent by or in the name of any person de- Campaign Act of 1971 (2 U.S.C. 431) is amend- segregated fund or nonconnected committee scribed in subsection (a) or (e) of section 323. ed by adding at the end the following new for any of the following categories of activ- ‘‘(d) DEFINITIONS.—For purposes of this sec- paragraph: ity shall be allocated as follows: tion— ‘‘(27) APPLICABLE 527 ORGANIZATION.—For ‘‘(1) 100 percent of the expenses for public ‘‘(1) VOTER DRIVE ACTIVITY.—The term purposes of paragraph (4)(D)— communications or voter drive activities ‘voter drive activity’ means any of the fol- ‘‘(A) IN GENERAL.—The term ‘applicable 527 that refer to one or more clearly identified lowing activities conducted in connection organization’ means a committee, club, asso- Federal candidates, but do not refer to any with an election in which a candidate for ciation, or group of persons that— clearly identified non-Federal candidates, Federal office appears on the ballot (regard- ‘‘(i) is an organization described in section shall be paid with funds from a Federal ac- less of whether a candidate for State or local 527 of the Internal Revenue Code of 1986, and count, without regard to whether the com- office also appears on the ballot): ‘‘(ii) is not described in subparagraph (B). munication refers to a political party. ‘‘(A) Voter registration activity. ‘‘(B) EXCEPTED ORGANIZATIONS.—Subject to ‘‘(2) At least 50 percent of the expenses for ‘‘(B) Voter identification. subparagraph (D), a committee, club, asso- public communications and voter drive ac- ‘‘(C) Get-out-the-vote activity. ciation, or other group of persons described tivities that refer to one or more clearly ‘‘(D) Generic campaign activity. in this subparagraph is— identified candidates for Federal office and Such term shall not include any activity de- ‘‘(i) an organization described in section one or more clearly defined non-Federal can- scribed in subparagraph (A) or (B) of section 527(i)(5) of the Internal Revenue Code of 1986, didates shall be paid with funds from a Fed- 316(b)(2). ‘‘(ii) an organization which is a committee, eral account, without regard to whether the ‘‘(2) FEDERAL ACCOUNT.—The term ‘Federal club, association or other group of persons communication refers to a political party. account’ means an account which consists that is organized, operated, and makes dis- ‘‘(3) At least 50 percent of the expenses for solely of contributions subject to the limita- bursements exclusively for paying expenses public communications or voter drive activi- tions, prohibitions, and reporting require- described in the last sentence of section ties that refer to a political party, but do not ments of this Act. Nothing in this section or 527(e)(2) of the Internal Revenue Code of 1986 refer to any clearly identified Federal or in section 323(b)(2)(B)(iii) shall be construed or expenses of a newsletter fund described in non-Federal candidate, shall be paid with to infer that a limit other than the limit section 527(g) of such Code, or funds from a Federal account, except that under section 315(a)(1)(C) applies to contribu- ‘‘(iii) an organization which is a com- this paragraph shall not apply to commu- tions to the account. mittee, club, association, or other group of nications or activities that relate exclu- ‘‘(3) NONCONNECTED COMMITTEE.—The term persons whose election or nomination activi- sively to elections where no candidate for ‘nonconnected committee’ shall not include ties relate exclusively to— Federal office appears on the ballot. a political committee of a political party.’’. ‘‘(I) elections where no candidate for Fed- ‘‘(4) At least 50 percent of the expenses for (b) REPORTING REQUIREMENTS.—Section eral office appears on the ballot, or public communications or voter drive activi- 304(e) of the Federal Election Campaign Act ‘‘(II) one or more of the purposes described ties that refer to a political party, and refer of 1971 (2 U.S.C. 434(e)) is amended— in subparagraph (C). to one or more clearly identified non-Federal (1) by redesignating paragraphs (3) and (4) ‘‘(C) ALLOWABLE PURPOSES.—The purposes candidates, but do not refer to any clearly as paragraphs (4) and (5); and described in this subparagraph are the fol- identified Federal candidates, shall be paid (2) by inserting after paragraph (2) the fol- lowing: with funds from a Federal account, except lowing new paragraph: ‘‘(i) Influencing the selection, nomination, that this paragraph shall not apply to com- ‘‘(3) RECEIPTS AND DISBURSEMENTS FROM election, or appointment of one or more can- munications or activities that relate exclu- QUALIFIED NON-FEDERAL ACCOUNTS.—In addi- didates to non-Federal offices. sively to elections where no candidate for tion to any other reporting requirement ap- ‘‘(ii) Influencing one or more State or local Federal office appears on the ballot. plicable under this Act, a political com- ballot initiatives, State or local referenda, ‘‘(5) At least 50 percent of any administra- mittee to which section 325(a) applies shall State or local constitutional amendments, tive expenses, including rent, utilities, office report all receipts and disbursements from a State or local bond issues, or other State or supplies, and salaries not attributable to a qualified non-Federal account (as defined in local ballot issues. clearly identified candidate, shall be paid section 325(c)).’’. ‘‘(iii) Influencing the selection, appoint- with funds from a Federal account, except SEC. 4. CONSTRUCTION. ment, nomination, or confirmation of one or that for a separate segregated fund such ex- No provision of this Act, or amendment more individuals to non-elected offices. penses may be paid instead by its connected made by this Act, shall be construed— ‘‘(D) SECTION 527 ORGANIZATIONS MAKING organization. (1) as approving, ratifying, or endorsing a CERTAIN DISBURSEMENTS.—A committee, ‘‘(6) At least 50 percent of the direct costs regulation promulgated by the Federal Elec- club, association, or other group of persons of a fundraising program or event, including tion Commission, described in subparagraph (B)(ii) or (B)(iii) disbursements for solicitation of funds and (2) as establishing, modifying, or otherwise shall not be considered to be described in for planning and administration of actual affecting the definition of political organiza- such paragraph for purposes of subparagraph fundraising events, where Federal and non- tion for purposes of the Internal Revenue (A)(ii) if it makes disbursements aggregating Federal funds are collected through such Code of 1986, or more than $1000 during any calendar year for program or event shall be paid with funds (3) as affecting the determination of any of the following: from a Federal account, except that for a whether a group organized under section ‘‘(i) A public communication that pro- separate segregated fund such costs may be 501(c) of the Internal Revenue Code of 1986 is motes, supports, attacks, or opposes a clear- paid instead by its connected organization. a political committee under section 301(4) of ly identified candidate for Federal office dur- ‘‘(c) QUALIFIED NON-FEDERAL ACCOUNT.— the Federal Election Campaign Act of 1971. ing the 1-year period ending on the date of For purposes of this section— SEC. 5. JUDICIAL REVIEW. the general election for the office sought by ‘‘(1) IN GENERAL.—The term ‘qualified non- (a) SPECIAL RULES FOR ACTIONS BROUGHT the clearly identified candidate occurs. Federal account’ means an account which ON CONSTITUTIONAL GROUNDS.—If any action ‘‘(ii) Any voter drive activity (as defined in consists solely of amounts— is brought for declaratory or injunctive re- section 325(d)(1)).’’. ‘‘(A) that, subject to the limitations of lief to challenge the constitutionality of any SEC. 3. RULES FOR ALLOCATION OF EXPENSES paragraphs (2) and (3), are raised by the sepa- provision of this Act or any amendment BETWEEN FEDERAL AND NON-FED- ERAL ACTIVITIES. rate segregated fund or nonconnected com- made by this Act, the following rules shall (a) IN GENERAL.—Title III of the Federal mittee only from individuals, and apply: Election Campaign Act of 1971 (2 U.S.C. 431 ‘‘(B) with respect to which all other re- (1) The action shall be filed in the United et seq.) is amended by adding at the end the quirements of Federal, State, or local law States District Court for the District of Co- following: are met. lumbia and shall be heard by a 3-judge court ‘‘SEC. 325. ALLOCATION AND FUNDING RULES ‘‘(2) LIMITATION ON INDIVIDUAL DONATIONS.— convened pursuant to section 2284 of title 28, FOR CERTAIN EXPENSES RELATING ‘‘(A) IN GENERAL.—A separate segregated United States Code. TO FEDERAL AND NON-FEDERAL AC- fund or nonconnected committee may not (2) A copy of the complaint shall be deliv- TIVITIES. accept more than $25,000 in funds for its ered promptly to the Clerk of the House of ‘‘(a) IN GENERAL.—In the case of any dis- qualified non-Federal account from any one Representatives and the Secretary of the bursements by any separate segregated fund individual in any calendar year. Senate.

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(3) A final decision in the action shall be ‘‘(A) IN GENERAL.—For purposes of paragraph licit contributions to the organization (other reviewable only by appeal directly to the Su- (4)(D), the term ‘applicable 527 organization’ than funds which are described under clauses preme Court of the United States. Such ap- means a committee, club, association, or group (i) and (ii) of section 323(e)(1)(B)), or direct dis- peal shall be taken by the filing of a notice of persons that— bursements, in whole or in part, by the organi- of appeal within 10 days, and the filing of a ‘‘(i) has given notice to the Secretary of the zation; and jurisdictional statement within 30 days, of Treasury under section 527(i) of the Internal ‘‘(IV) makes no contributions to Federal can- the entry of the final decision. Revenue Code of 1986 that it is to be treated as didates. (4) It shall be the duty of the United States an organization described in section 527 of such ‘‘(E) CERTAIN REFERENCES TO FEDERAL CAN- District Court for the District of Columbia Code; and DIDATES NOT TAKEN INTO ACCOUNT.—For pur- and the Supreme Court of the United States ‘‘(ii) is not described in subparagraph (B). poses of subparagraphs (B)(iii) and (D)(ii)(II), a to advance on the docket and to expedite to ‘‘(B) EXCEPTED ORGANIZATIONS.—A committee, voter drive activity shall not be treated as refer- the greatest possible extent the disposition club, association, or other group of persons de- ring to a clearly identified Federal candidate if of the action and appeal. scribed in this subparagraph is— the only reference to the candidate in the activ- (b) INTERVENTION BY MEMBERS OF CON- ‘‘(i) an organization described in section ity is— ‘‘(i) a reference in connection with an election GRESS.—In any action in which the constitu- 527(i)(5) of the Internal Revenue Code of 1986; for a non-Federal office in which such Federal tionality of any provision of this Act or any ‘‘(ii) an organization which is a committee, candidate is also a candidate for such non-Fed- amendment made by this Act is raised (in- club, association or other group of persons that eral office; or cluding but not limited to an action de- is organized, operated, and makes disbursements exclusively for paying expenses described in the ‘‘(ii) a reference to the fact that the candidate scribed in subsection (a)), any Member of the has endorsed a non-Federal candidate or has House of Representatives (including a Dele- last sentence of section 527(e)(2) of the Internal Revenue Code of 1986 or expenses of a news- taken a position on an applicable State or local gate or Resident Commissioner to Congress) issue, including a reference that constitutes the or Senate shall have the right to intervene letter fund described in section 527(g) of such Code; endorsement or position itself. either in support of or opposition to the posi- ‘‘(F) CERTAIN REFERENCES TO POLITICAL PAR- ‘‘(iii) an organization which is a committee, tion of a party to the case regarding the con- TIES NOT TAKEN INTO ACCOUNT.—For purposes of club, association, or other group that consists stitutionality of the provision or amend- subparagraphs (B)(iii) and (D)(ii)(II), a voter solely of candidates for State or local office, in- ment. To avoid duplication of efforts and re- drive activity shall not be treated as referring to dividuals holding State or local office, or any duce the burdens placed on the parties to the a political party if the only reference to the combination of either, but only if the organiza- action, the court in any such action may party in the activity is— make such orders as it considers necessary, tion refers only to one or more non-Federal can- ‘‘(i) a reference for the purpose of identifying including orders to require intervenors tak- didates or applicable State or local issues in all a non-Federal candidate; ing similar positions to file joint papers or to of its voter drive activities and does not refer to ‘‘(ii) a reference for the purpose of identifying be represented by a single attorney at oral a Federal candidate or a political party in any the entity making the public communication or argument. of its voter drive activities; or carrying out the voter drive activity; or (c) CHALLENGE BY MEMBERS OF CONGRESS.— ‘‘(iv) an organization described in subpara- ‘‘(iii) a reference in a manner or context that Any Member of Congress may bring an ac- graph (C). does not reflect support for or opposition to a tion, subject to the special rules described in ‘‘(C) APPLICABLE ORGANIZATION.—For pur- Federal candidate or candidates and does reflect subsection (a), for declaratory or injunctive poses of subparagraph (B)(iv), an organization support for or opposition to a State or local can- relief to challenge the constitutionality of described in this subparagraph is a committee, didate or candidates or an applicable State or any provision of this Act or any amendment club, association, or other group of persons local issue. made by this Act. whose election or nomination activities relate ‘‘(G) APPLICABLE STATE OR LOCAL ISSUE.—For (d) APPLICABILITY.— exclusively to— purposes of this paragraph, the term ‘applicable ‘‘(i) elections where no candidate for Federal (1) INITIAL CLAIMS.—With respect to any ac- State or local issue’ means any State or local tion initially filed on or before December 31, office appears on the ballot; or ballot initiative, State or local referendum, State 2006, the provisions of subsection (a) shall ‘‘(ii) one or more of the following purposes: or local constitutional amendment, State or ‘‘(I) Influencing the selection, nomination, apply with respect to each action described local bond issue, or other State or local ballot election, or appointment of one or more can- in such subsection. issue.’’. didates to non-Federal offices. (c) DEFINITION OF VOTER DRIVE ACTIVITY.— (2) SUBSEQUENT ACTIONS.—With respect to ‘‘(II) Influencing one or more applicable State Section 301 of such Act (2 U.S.C. 431), as amend- any action initially filed after December 31, or local issues. ed by subsection (b), is further amended by add- 2006, the provisions of subsection (a) shall ‘‘(III) Influencing the selection, appointment, ing at the end the following new paragraph: not apply to any action described in such nomination, or confirmation of one or more indi- ‘‘(28) VOTER DRIVE ACTIVITY.—The term ‘voter subsection unless the person filing such ac- viduals to non-elected offices. drive activity’ means any of the following ac- tion elects such provisions to apply to the ‘‘(D) EXCLUSIVITY TEST.—A committee, club, tivities conducted in connection with an election action. association, or other group of persons shall not in which a candidate for Federal office appears SEC. 6. EFFECTIVE DATE. be treated as meeting the exclusivity require- on the ballot (regardless of whether a candidate The amendments made by this Act shall ment of subparagraph (C) if it makes disburse- for State or local office also appears on the bal- take effect on the date which is 60 days after ments aggregating more than $1,000 for any of lot): the date of the enactment of this Act. the following: ‘‘(A) Voter registration activity. The SPEAKER pro tempore. The ‘‘(i) A public communication that promotes, ‘‘(B) Voter identification. supports, attacks, or opposes a clearly identified ‘‘(C) Get-out-the-vote activity. amendment in the nature of a sub- ‘‘(D) Generic campaign activity. stitute printed in the bill, modified by candidate for Federal office during the 1-year ‘‘(E) Any public communication related to ac- period ending on the date of the general election amendment No. 1 for printing in the tivities described in subparagraphs (A) through for the office sought by the clearly identified (D). CONGRESSIONAL RECORD, is adopted. candidate (or, if a runoff election is held with The text of the bill, as amended, is as respect to such general election, on the date of Such term shall not include any activity de- follows: the runoff election). scribed in subparagraph (A) or (B) of section 316(b)(2).’’. H.R. 513 ‘‘(ii) Any voter drive activity during a cal- endar year, except that no disbursements for SEC. 3. RULES FOR ALLOCATION OF EXPENSES Be it enacted by the Senate and House of Rep- any voter drive activity shall be taken into ac- BETWEEN FEDERAL AND NON-FED- resentatives of the United States of America in ERAL ACTIVITIES. count under this subparagraph if the committee, Congress assembled, (a) IN GENERAL.—Title III of the Federal Elec- club, association, or other group of persons dur- SECTION 1. SHORT TITLE. tion Campaign Act of 1971 (2 U.S.C. 431 et seq.) ing such calendar year— is amended by adding at the end the following: This Act may be cited as the ‘‘527 Reform Act ‘‘(I) makes disbursements for voter drive ac- of 2006’’. ‘‘SEC. 325. ALLOCATION AND FUNDING RULES tivities with respect to elections in only 1 State FOR CERTAIN EXPENSES RELATING SEC. 2. TREATMENT OF SECTION 527 ORGANIZA- and complies with all applicable election laws of TO FEDERAL AND NON-FEDERAL AC- TIONS. that State, including laws related to registration TIVITIES. (a) DEFINITION OF POLITICAL COMMITTEE.— and reporting requirements and contribution ‘‘(a) IN GENERAL.—In the case of any dis- Section 301(4) of the Federal Election Campaign limitations; bursements by any political committee that is a Act of 1971 (2 U.S.C. 431(4)) is amended— ‘‘(II) refers to one or more non-Federal can- separate segregated fund or nonconnected com- (1) by striking the period at the end of sub- didates or applicable State or local issues in all mittee for which allocation rules are provided paragraph (C) and inserting ‘‘; or’’; and of its voter drive activities and does not refer to under subsection (b)— (2) by adding at the end the following: any Federal candidate or any political party in ‘‘(1) the disbursements shall be allocated be- ‘‘(D) any applicable 527 organization.’’. any of its voter drive activities; tween Federal and non-Federal accounts in ac- (b) DEFINITION OF APPLICABLE 527 ORGANIZA- ‘‘(III) does not have a candidate for Federal cordance with this section and regulations pre- TION.—Section 301 of such Act (2 U.S.C. 431) is office, an individual who holds any Federal of- scribed by the Commission; and amended by adding at the end the following fice, a national political party, or an agent of ‘‘(2) in the case of disbursements allocated to new paragraph: any of the foregoing, control or materially par- non-Federal accounts, may be paid only from a ‘‘(27) APPLICABLE 527 ORGANIZATION.— ticipate in the direction of the organization, so- qualified non-Federal account.

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‘‘(b) COSTS TO BE ALLOCATED AND ALLOCA- ‘‘(3) CERTAIN REFERENCES TO POLITICAL PAR- SEC. 4. REPEAL OF LIMIT ON AMOUNT OF PARTY TION RULES.— TIES NOT TAKEN INTO ACCOUNT.—For purposes of EXPENDITURES ON BEHALF OF CAN- ‘‘(1) IN GENERAL.—Disbursements by any sepa- paragraph (1), a public communication or voter DIDATES IN GENERAL ELECTIONS. rate segregated fund or nonconnected com- drive activity shall not be treated as referring to (a) REPEAL OF LIMIT.—Section 315(d) of the mittee, other than an organization described in a political party if the only reference to the Federal Election Campaign Act of 1971 (2 U.S.C. section 323(b)(1), for any of the following cat- party in the communication or activity is— 441a(d)) is amended— egories of activity shall be allocated as follows: ‘‘(A) a reference for the purpose of identifying (1) in paragraph (1)— ‘‘(A) 100 percent of the expenses for public a non-Federal candidate; (A) by striking ‘‘(1) Notwithstanding any communications or voter drive activities that ‘‘(B) a reference for the purpose of identifying other provision of law with respect to limitations refer to one or more clearly identified Federal the entity making the public communication or on expenditures or limitations on contributions, candidates, but do not refer to any clearly iden- carrying out the voter drive activity; or the national committee’’ and inserting ‘‘Not- tified non-Federal candidates, shall be paid ‘‘(C) a reference in a manner or context that withstanding any other provision of law with with funds from a Federal account, without re- does not reflect support for or opposition to a respect to limitations on amounts of expendi- gard to whether the communication refers to a Federal candidate or candidates and does reflect tures or contributions, a national committee’’, political party. support for or opposition to a State or local can- (B) by striking ‘‘the general’’ and inserting ‘‘(B) At least 50 percent, or a greater percent- didate or candidates or an applicable State or ‘‘any’’, and (C) by striking ‘‘Federal office, subject to the age if the Commission so determines by regula- local issue. limitations contained in paragraphs (2), (3), and tion, of the expenses for public communications ‘‘(c) QUALIFIED NON-FEDERAL ACCOUNT.— and voter drive activities that refer to one or ‘‘(1) IN GENERAL.—For purposes of this sec- (4) of this subsection’’ and inserting ‘‘Federal more clearly identified candidates for Federal tion, the term ‘qualified non-Federal account’ office in any amount’’; and office and one or more clearly identified non- means an account which consists solely of (2) by striking paragraphs (2), (3), and (4). (b) CONFORMING AMENDMENTS.— Federal candidates shall be paid with funds amounts— (1) INDEXING.—Section 315(c) of such Act (2 from a Federal account, without regard to ‘‘(A) that, subject to the limitations of para- U.S.C. 441a(c)) is amended— whether the communication refers to a political graphs (2) and (3), are raised by the separate (A) in paragraph (1)(B)(i), by striking ‘‘(d),’’; party. segregated fund or nonconnected committee only and ‘‘(C) At least 50 percent, or a greater percent- from individuals, and (B) in paragraph (2)(B)(i), by striking ‘‘sub- age if the Commission so determines by regula- ‘‘(B) with respect to which all requirements of sections (b) and (d)’’ and inserting ‘‘subsection tion, of the expenses for public communications Federal, State, or local law (including any law (b)’’. or voter drive activities that refer to a political relating to contribution limits) are met. (2) INCREASE IN LIMITS FOR SENATE CAN- party, but do not refer to any clearly identified ‘‘(2) LIMITATION ON INDIVIDUAL DONATIONS.— DIDATES FACING WEALTHY OPPONENTS.—Section Federal or non-Federal candidate, shall be paid ‘‘(A) IN GENERAL.—A separate segregated fund 315(i) of such Act (2 U.S.C. 441a(i)(1)) is amend- with funds from a Federal account, except that or nonconnected committee may not accept more ed— this paragraph shall not apply to communica- than $25,000 in funds for its qualified non-Fed- (A) in paragraph (1)(C)(iii)— tions or activities that relate exclusively to elec- eral account from any one individual in any (i) by adding ‘‘and’’ at the end of subclause tions where no candidate for Federal office ap- calendar year. (I), pears on the ballot. ‘‘(B) AFFILIATION.—For purposes of this para- (ii) in subclause (II), by striking ‘‘; and’’ and ‘‘(D) At least 50 percent, or a greater percent- graph, all qualified non-Federal accounts of inserting a period, and age if the Commission so determines by regula- separate segregated funds or nonconnected com- (iii) by striking subclause (III); tion, of the expenses for public communications mittees which are directly or indirectly estab- (B) in paragraph (2)(A) in the matter pre- or voter drive activities that refer to a political lished, financed, maintained, or controlled by ceding clause (i), by striking ‘‘, and a party party and refer to one or more clearly identified the same person or persons shall be treated as committee shall not make any expenditure,’’; non-Federal candidates, but do not refer to any one account. (C) in paragraph (2)(A)(ii), by striking ‘‘and clearly identified Federal candidates, shall be ‘‘(3) FUNDRAISING LIMITATION.— party expenditures previously made’’; and paid with funds from a Federal account, except ‘‘(A) IN GENERAL.—No donation to a qualified (D) in paragraph (2)(B), by striking ‘‘and a that this paragraph shall not apply to commu- non-Federal account may be solicited, received, party shall not make any expenditure’’. nications or activities that relate exclusively to directed, transferred, or spent by or in the name (3) INCREASE IN LIMITS FOR HOUSE CANDIDATES elections where no candidate for Federal office of any person described in subsection (a) or (e) FACING WEALTHY OPPONENTS.—Section 315A(a) appears on the ballot. of section 323. of such Act (2 U.S.C. 441a—1(a)) is amended— ‘‘(E) Unless otherwise determined by the Com- ‘‘(B) FUNDS NOT TREATED AS SUBJECT TO (A) in paragraph (1)— mission in its regulations, at least 50 percent of ACT.—Except as provided in subsection (a)(2) (i) by adding ‘’and’’ at the end of subpara- any administrative expenses, including rent, and this subsection, any funds raised for a graph (A), utilities, office supplies, and salaries not attrib- qualified non-Federal account in accordance (ii) in subparagraph (B), by striking ‘‘; and’’ utable to a clearly identified candidate, shall be with the requirements of this section shall not and inserting a period, and paid with funds from a Federal account, except be considered funds subject to the limitations, (iii) by striking subparagraph (C); that for a separate segregated fund such ex- prohibitions, and reporting requirements of this (B) in paragraph (3)(A) in the matter pre- penses may be paid instead by its connected or- Act for any purpose (including for purposes of ceding clause (i), by striking ‘‘, and a party ganization. subsection (a) or (e) of section 323 or subsection committee shall not make any expenditure,’’; ‘‘(F) At least 50 percent, or a greater percent- (d)(1) of this section). (C) in paragraph (3)(A)(ii), by striking ‘‘and age if the Commission so determines by regula- ‘‘(d) DEFINITIONS.— party expenditures previously made’’; and tion, of the direct costs of a fundraising program ‘‘(1) FEDERAL ACCOUNT.—The term ‘Federal (D) in paragraph (3)(B), by striking ‘‘and a or event, including disbursements for solicita- account’ means an account which consists sole- party shall not make any expenditure.’’ tion of funds and for planning and administra- ly of contributions subject to the limitations, SEC. 5. CONSTRUCTION. tion of actual fundraising events, where Federal prohibitions, and reporting requirements of this No provision of this Act, or amendment made and non-Federal funds are collected through Act. Nothing in this section or in section by this Act, shall be construed— such program or event shall be paid with funds 323(b)(2)(B)(iii) shall be construed to infer that (1) as approving, ratifying, or endorsing a reg- from a Federal account, except that for a sepa- a limit other than the limit under section ulation promulgated by the Federal Election rate segregated fund such costs may be paid in- 315(a)(1)(C) applies to contributions to the ac- Commission; stead by its connected organization. This para- count. (2) as establishing, modifying, or otherwise af- graph shall not apply to any fundraising solici- ‘‘(2) NONCONNECTED COMMITTEE.—The term fecting the definition of political organization tations or any other activity that constitutes a ‘nonconnected committee’ shall not include a for purposes of the Internal Revenue Code of public communication. political committee of a political party. 1986; or ‘‘(2) CERTAIN REFERENCES TO FEDERAL CAN- ‘‘(3) VOTER DRIVE ACTIVITY.—The term ‘voter (3) as affecting the determination of whether DIDATES NOT TAKEN INTO ACCOUNT.—For pur- drive activity’ has the meaning given such term a group organized under section 501(c) of the poses of paragraph (1), a public communication in section 301(28).’’. Internal Revenue Code of 1986 is a political com- or voter drive activity shall not be treated as re- (b) REPORTING REQUIREMENTS.—Section 304(e) mittee under section 301(4) of the Federal Elec- ferring to a clearly identified Federal candidate of the Federal Election Campaign Act of 1971 (2 tion Campaign Act of 1971. if the only reference to the candidate in the U.S.C. 434(e)) is amended— SEC. 6. JUDICIAL REVIEW. communication or activity is— (1) by redesignating paragraphs (3) and (4) as (a) SPECIAL RULES FOR ACTIONS BROUGHT ON ‘‘(A) a reference in connection with an elec- paragraphs (4) and (5); and CONSTITUTIONAL GROUNDS.—If any action is tion for a non-Federal office in which such Fed- (2) by inserting after paragraph (2) the fol- brought for declaratory or injunctive relief to eral candidate is also a candidate for such non- lowing new paragraph: challenge the constitutionality of any provision Federal office; or ‘‘(3) RECEIPTS AND DISBURSEMENTS FROM of this Act or any amendment made by this Act, ‘‘(B) a reference to the fact that the candidate QUALIFIED NON-FEDERAL ACCOUNTS.—In addi- the following rules shall apply: has endorsed a non-Federal candidate or has tion to any other reporting requirement applica- (1) The action shall be filed in the United taken a position on an applicable State or local ble under this Act, a political committee to States District Court for the District of Colum- issue (as defined in section 301(27)(G)), includ- which section 325(a) applies shall report all re- bia and shall be heard by a 3-judge court con- ing a reference that constitutes the endorsement ceipts and disbursements from a qualified non- vened pursuant to section 2284 of title 28, United or position itself. Federal account (as defined in section 325(c)).’’. States Code.

VerDate Aug 31 2005 03:40 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00063 Fmt 4634 Sfmt 6333 E:\CR\FM\A05AP7.064 H05APPT1 ccoleman on PROD1PC71 with HOUSE H1518 CONGRESSIONAL RECORD — HOUSE April 5, 2006 (2) A copy of the complaint shall be delivered While BCRA was supposed to curtail stricted by this bill. In other words, promptly to the Clerk of the House of Represent- the influence of soft money in Federal State and local activities would be free atives and the Secretary of the Senate. elections, it did not achieve that goal. to continue as they have in the past. (3) A final decision in the action shall be re- Those dealing with Federal candidates viewable only by appeal directly to the Supreme In the 2004 election cycle, the first con- Court of the United States. Such appeal shall be ducted under the rules imposed by or issues will be restricted by the bill, taken by the filing of a notice of appeal within BCRA, over a half a billion dollars in and will have to use hard money. 10 days, and the filing of a jurisdictional state- soft money was spent to influence the H.R. 513 would also impose new allo- ment within 30 days, of the entry of the final outcome. Just four individuals alone cation rules on 527 groups regarding ex- decision. spent over $73 million total. penses for Federal and non-Federal ac- (4) It shall be the duty of the United States tivities. For instance, 100 percent of ex- District Court for the District of Columbia and b 1700 penses for public communications or the Supreme Court of the United States to ad- While BCRA was supposed to reduce voter drive activities that refer only to vance on the docket and to expedite to the the influence of special interests, it ac- greatest possible extent the disposition of the ac- a Federal campaign would have to be tion and appeal. tually empowered these ideologically paid for with hard money. If both Fed- (b) INTERVENTION BY MEMBERS OF CON- driven outside groups. The power these eral and non-Federal candidates were GRESS.—In any action in which the constitu- outside groups gained came at the di- mentioned, then at least 50 percent of tionality of any provision of this Act or any rect expense of political parties which such expenses would have to be paid for amendment made by this Act is raised (including saw many of the activities they had with hard money. In addition, under but not limited to an action described in sub- traditionally performed limited by H.R. 513, at least 50 percent of a 527 section (a)), any Member of the House of Rep- BCRA, and thence taken over by these group’s administrative overhead ex- resentatives (including a Delegate or Resident Commissioner to Congress) or Senate shall have new organizations, the 527s. Again, let penses would have to be paid for with the right to intervene either in support of or op- me explain, the term 527 refers to the hard money. position to the position of a party to the case re- section of IRS Code which governs This bill, H.R. 513 has been endorsed garding the constitutionality of the provision or their operation, and we simply use that by the reform community and right- amendment. To avoid duplication of efforts and designation for them. fully so. Common Cause, Democracy 21, reduce the burdens placed on the parties to the We now have a system where soft the Campaign Legal Center, and other action, the court in any such action may make money continues to thrive. Our polit- like-minded reform groups have sent such orders as it considers necessary, including ical parties, especially those at the several letters to House Members ask- orders to require intervenors taking similar posi- State and local level, are increasingly ing them to support H.R. 513. In a let- tions to file joint papers or to be represented by ter sent just this week, these groups a single attorney at oral argument. unable to carry out core functions such (c) CHALLENGE BY MEMBERS OF CONGRESS.— as voter registration activities. We now argued that H.R. 513 is needed in order Any Member of Congress may bring an action, have a system where the influence of to ‘‘close the loophole that allowed subject to the special rules described in sub- billionaires is greatly enhanced. In both Democrat and Republican 527 section (a), for declaratory or injunctive relief to some cases, representatives of 527s groups to spend hundreds of millions of challenge the constitutionality of any provision have made boasts about taking over dollars in unlimited soft money to in- of this Act or any amendment made by this Act. the party. For example, Eli Pariser of fluence the 2004 presidential and con- (d) APPLICABILITY.— gressional elections.’’ (1) INITIAL CLAIMS.—With respect to any ac- MoveOn.org sent an e-mail to sup- tion initially filed on or before December 31, porters after the 2004 elections stating, Mr. Speaker, I will be including a 2008, the provisions of subsection (a) shall apply ‘‘Now it’s our party. We bought it, we copy of the letter for the RECORD. with respect to each action described in such own it, and we’re going to take it Mr. Speaker, I know many of my subsection. back.’’ What more evidence do we need friends on the other side of the aisle (2) SUBSEQUENT ACTIONS.—With respect to any of the corruption that has appeared are usually interested in what The New action initially filed after December 31, 2008, the here? This does not represent progress. York Times has to say on these issues, provisions of subsection (a) shall not apply to so I would like to include some edi- Today we have an opportunity to re- any action described in such subsection unless torials from The Times as well; and an verse this negative trend, and this bill the person filing such action elects such provi- editorial from today’s Washington Post sions to apply to the action. will help restore some balance to our also calls on the House to pass this bill. SEC. 7. EFFECTIVE DATE. system. Mr. Speaker, I will include these edi- The amendments made by this Act shall take H.R. 513 would require 527 groups effect on the date of the enactment of this Act. torials in the RECORD. spending money to influence Federal Mr. Speaker, I expect many of my The SPEAKER pro tempore. The gen- elections to register as Federal polit- friends on the other side of the aisle tleman from Michigan (Mr. EHLERS) ical committees and comply with Fed- would be arguing that BCRA should and the gentlewoman from California eral campaign finance laws, including not be applied to 527s because they are (Ms. MILLENDER-MCDONALD) each will limits on the contributions they re- independent organizations and have no control 30 minutes. ceive. Thus, 527 groups would be sub- connection to officeholders. The claim The Chair recognizes the gentleman ject to the same contribution limits from Michigan. will be that we have already severed and source restrictions that are appli- the link between large donors and Fed- Mr. EHLERS. Mr. Speaker, I yield cable to Federal political action com- myself such time as I may consume. eral officeholders. This is nonsense; mittees. There would be no more $23 Mr. Speaker, I rise in support of H.R. this is bunk. The 527s that have soaked 513, the 527 Reform Act of 2006. Today million soft money contributions al- up all the soft money were, in many we have an opportunity to right one of lowed from a lone, extremely wealthy cases, set up and staffed by former the wrongs of the Bipartisan Campaign donor. When this bill passes, individ- party operatives and congressional Reform Act of 2002. All my friends on uals will be limited to $30,000. In other staffers. In some cases, Federal office- the other side of the aisle who voted words, soft unregulated money will be holders attend fundraising events for for BCRA because they believed we replaced by hard regulated money these 527s in an attempt to grant an of- needed to get soft money out of politics which will be reported to the Federal ficial stamp of approval and signal to must support this legislation today be- Elections Commission. their donors where soft money dona- cause it does indeed get the soft money Those 527s that engage exclusively in tions should be steered. I do not intend out of politics. State or local elections or in ballot ini- to name names, but I will include in Just a word of explanation. I have tiatives would not be restricted by this the RECORD a number of articles that used the term ‘‘BCRA.’’ That is the ac- bill. However, if they decide to engage describe how 527s have been set up by ronym for Bipartisan Campaign Re- in Federal election activity such as people who used to work for Federal of- form Act, which we worked on very, making public communications that ficeholders or national parties. very hard a few years ago to get the promote, support, attack, or oppose a The soft money shell game we soft money out of politics. What do we Federal candidate during the year prior spawned 4 years ago is clearly dem- mean by soft money? That is money to a Federal election, or conduct voter onstrated in these articles. They dem- that is unregulated, both in quantity drive activities in connection with an onstrate that these so-called ‘‘inde- and disclosure to the Federal Election election in which a Federal candidate pendent’’ 527s are, in many cases, inde- Commission. appears on the ballot, they will be re- pendent in name only. In reality, they

VerDate Aug 31 2005 03:40 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00064 Fmt 4634 Sfmt 0634 E:\CR\FM\A05AP7.064 H05APPT1 ccoleman on PROD1PC71 with HOUSE April 5, 2006 CONGRESSIONAL RECORD — HOUSE H1519 have been set up by people who used to Anyone with a computer can go online Mr. Speaker, I will include this state- work for our parties. They left to orga- and see that millionaire Bob Perry ment in the RECORD as follows: nize 527s to escape the restrictions gave $4.5 million to bankroll the Swift Advocates of this bill have yet to identify BCRA placed on the parties. Had their Boat Veterans. the problem they hope to correct with this candidate for the presidency won, How do I know this? 527 organiza- misguided proposal. 527s wield no corruptive many of them would be working in the tions regularly submit detailed finan- influence over parties or candidates, which is administration. Would not they feel in- cial information to the IRS. They have the only constitutional justification for re- to disclose where they get their money stricting free expression. debted to the millionaire donors who One of the biggest myths about this bill is helped put them in office? Is not that and how they get it. In fact, just last week, a Federal court remanded part of that it would ‘‘level the playing field,’’ end- what BCRA was supposed to stop? Let ing the ability of the wealthy to fund ‘‘prop- us stop pretending that these 527s are a case back to the FEC to present a aganda.’’ This is completely false. Wealthy anything other than campaign organi- more reasoned explanation for its deci- individuals would still be free to say what- zations established to influence our sion that 527 organizations are more ef- ever they want whenever they want. The pro- Federal elections. fectively regulated through case-by- posal would end only the ability of individ- This is not the first time Congress case adjudication rather than general uals of lesser means to pool their money to has dealt with the 527 issue. In fact, law. independently speak out on issues. America needs the First Amendment and some time ago, 6 years ago to be exact, I believe that FEC should be given a chance to review this matter before the ability of individual citizens to form Roll Call reported on the debate that groups precisely for speech that is controver- was going on at the time and included further legislation is introduced in this House. The Senate is providing leader- sial. To suppress views of those we dislike a quote from a powerful congressional will inevitably risk suppression of our own. leader of the time. In 2000, 527s did not ship in this area. They set out to do We who oppose such a proposal want to have any disclosure requirements, and what they wanted to do and that was continue to freely debate our ideas in the lobby reform, unlike this House, which a bill was pending to require them to public arena. We want Americans to hear all is just bringing up this type of legisla- sides—and to decide for themselves who’s disclose their donors. At an event held tion to circumvent their lobbying re- right. to rally support for the bill, this leader form bill that they do not have, and When you were sworn into office, you took was quoted as saying, ‘‘Now more than downplaying groups that had more vot- an oath to ‘‘support this Constitution.’’ We ever, we need to assure the American ers than ever before in history outside ask you to faithfully uphold that oath by re- people that we are not willing to let jecting H.R. 513, S. 1053, and any other bill demonstrating their democracy and our system of government be put in that restricts political free speech. getting the vote out. This is what the jeopardy by wealthy special interests, Sincerely, BCRA bill was all about. unregulated foreign money, and, most Pat Toomey, President, Club for Growth; I voted for BCRA because it would John Berthoud, President, National importantly, a system of secrecy. It is sever the connection between Members Taxpayers Union; Thomas A. Schatz, time for disclosure.’’ The leader who of Congress in raising non-Federal President, Council for Citizens Against said these words was Minority Leader funds, so-called soft money, and to en- Government Waste; David Keene, Richard Gephardt. We passed a disclo- sure that there were limits on what we Chairman, American Conservative sure bill then, but the problem of did in terms of money. BCRA was nec- Union; Grover Norquist, President, wealthy special interest money jeop- essary to cut the perceived corruption Americans for Tax Reform; Paul M. Weyrich, National Chairman, Coali- ardizing our system of government has link between Members of Congress, the only gotten worse in the ensuing 6 tions for America; Matt Kibbe, CEO formation and adoption of Federal pol- and President, Freedom Works; James years, and I suspect the minority lead- icy and soft money. Bopp, Jr., General Counsel, James er would say the same thing today. However, BCRA was not passed to Madison Center for Free Speech; Brad- Not extending the contributions re- impede legitimate voter registration ley A. Smith, Professor of Law, Capital strictions in BCRA to all 527s was a and Get Out the Vote by those 527 com- University Law School, and former terrible mistake that we are today munity groups which did just that, but Chairman, Federal Election Commis- seeking to rectify. Today we can re- this bill impedes that democratic proc- sion; Fred Smith, President, Competi- store some sanity to our system. The ess. It impedes the 527 organizations. tive Enterprise Institute. status quo allowing 527 groups to raise This bill is not needed, Mr. Speaker. Mr. Speaker, unfairly regulating 527s unlimited amounts of soft money while It is very interesting listening to the is a step in the wrong direction for po- our parties continue to lose power and majority speak in favor of campaign fi- litical speech. I believe this legislation influence is unacceptable. It threatens nance reform after they did everything will have a negative impact on the the health of our democracy. possible to stonewall the Bipartisan voter participation bill silencing seg- We must subject 527s to the same reg- Campaign Reform Act of 2002. Also in- ments of the population that we need ulatory restrictions that are applicable teresting is watching the Republicans to hear from. Of particular concern is to all other parties, candidates and avoid any discussion about the activi- that the fundamental rights and the committees. I urge my colleagues to ties of 501(c)6s and those organizations needs of all Americans including the support H.R. 513. that have no disclosure requirements, voices of women, the elderly, and the Mr. Speaker, I reserve the balance of and yet are running television ads de- poor not be left out of the political dia- my time. signed to directly reelect a Senator logue just because of the perceived no- Ms. MILLENDER-MCDONALD. Mr. from Pennsylvania. Unfair and impar- tion that a few millionaires are funding Speaker, I yield myself as much time tial regulating 527s is a step in the all 527s. as I may consume. wrong direction for political speech. In fact, thousands of Americans gave Mr. Speaker, I rise in opposition to Mr. Speaker, I would like to put in to 527s through small donations of $25, H.R. 513, the so-called 527 Reform Act the RECORD a statement by the Na- $50 and the like because they believe, of 2005 and the restriction that they are tional Review magazine, which is a Mr. Speaker, in the message of 527 or- placing on the first amendment rights conservative magazine, and the Na- ganizations. of Americans. 527s are named after a tional Review states, One of the big- section of the Internal Revenue Code gest myths about this bill is that it b 1715 that specifies certain political organi- would level the playing field ending the Through the first amendment, Amer- zations as tax exempt for tax exempt ability of the wealthy to fund propa- icans are playing an ever increasing purposes under the Federal law. ganda. This is completely false. role in holding public officials account- Added to the Tax Code in 1975, 527 or- Wealthy individuals will still be free to able for their actions, through the de- ganizations have been legally recog- say whatever they want and whenever bate of public policy, and the shaping nized as operating entities for over 30 they want. This proposal would end of this American democracy. Their years. The Federal Election Commis- only the ability of individuals of lesser voices should not be silenced. sion has recently implemented addi- means to pool their money to inde- In fact, I would like to put in the tional regulations of these groups, pendently speak out on issues and RECORD again the statement by Assist- which are subject to rigorous Federal speak and criticize Members of Con- ant U.S. Attorney General Alice S. reporting and disclosure requirements. gress. Fisher when she stated upon the plea

VerDate Aug 31 2005 04:49 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00065 Fmt 4634 Sfmt 0634 E:\CR\FM\K05AP7.114 H05APPT1 ccoleman on PROD1PC71 with HOUSE H1520 CONGRESSIONAL RECORD — HOUSE April 5, 2006 agreement of Mr. Rudy of his crimes was much criticized by the Democrats I urge support for this bill. involving illegal favors and lobbying when he took a campaign contribution Ms. MILLENDER-MCDONALD. Mr. activities which lasted from 1997 to from one wealthy individual of $2 mil- Speaker, contrary to the last speaker, 2004, and she says, ‘‘The American pub- lion. Fast forward to 2004, after BCRA he has a bill that wants to repeal all lic loses when officials and lobbyists is passed, and at that point, having hard money limits, and this is what conspire to buy and sell influence in taken the big money out of politics, this bill is all about, the flow of un- such a corrupt and brazen manner. By you will note with interest that one regulated amounts of money. This is his admission in open court today, Mr. man, George Soros, gave $27 million to what the American people do not want, Rudy paints a picture of Washington efforts to elect JOHN KERRY President Mr. Speaker. which the American public and law en- of the United States. So we went from Mr. Speaker, I yield 5 minutes to the forcement will simply not tolerate.’’ 1974 with $2 million to Richard Nixon gentlewoman from California (Ms. ZOE The American public, Mr. Speaker, to 2004 to $27 million to JOHN KERRY. I LOFGREN). will not tolerate what is about to hap- do not think we got the money out of Ms. ZOE LOFGREN of California. Mr. pen here with this elimination of 527 politics. We just sort of reshuffled the Speaker, yesterday former majority organizations, transferring them into deck chairs to the partisan advantage leader TOM DELAY announced that he 501(c)s, not allowing them to work of the Democrats. is resigning from the House. His former independently of Members of Congress We are charged with partisan advan- aides, Michael Scanlon and Tony Rudy, and having to deal with any congres- tage today in trying at least to give have pled guilty to crimes for their in- sional campaign committees. full effect to the Democrats’ several volvement in the Jack Abramoff cor- In fact, this bill sharply curtails the years ago stated intent, which was to ruption affair, and other aides to Mr. ability of individuals and groups to as- take the big money out of politics and DELAY and even other current Mem- sociate in the pursuit of political and put 527s within the rule that applies to bers of this body remain under inves- policy goals, and I will say to you, Mr. donations to political parties. I do not tigation. Speaker, that the unjust shade of Fed- think that is unreasonable. Last November, Republican Con- eral policy holders, which are us, the I have got to tell you, as someone gressman Duke Cunningham resigned Members of Congress, this bill will who is obviously a participant but also from Congress for taking over $2 mil- allow the public to not criticize or even as an observer of the political process, lion in bribes from a defense con- ask for accountability because they what advantage does it serve to move tractor. He is now serving an 8-year want to outlaw those groups who en- political speech farther and farther prison sentence for his crimes. gage in the type of public speech, the away from the candidate? Third party The House Ethics Committee is bro- public speech that might criticize us or groups, whether they are 527, 501(c)(4)s, ken and has done no work in the past ask for accountability. whatever, do not have the same vested 15 months. The committee managed to This is what they are trying to muf- interest in currying favor with the pub- have its first meeting of the 109th Con- fle. They are trying to muffle the lic. There is no sense of self-restraint gress last week. On Sunday, The Wash- voices of the American people who whatsoever. Therefore, the more we ington Post said, ‘‘The panel’s inac- spoke through 527s. They are inde- move speech away from the candidate tivity in the face of scandal is itself pendent groups. The majority should into somebody else doing the speaking, scandalous.’’ not be in the business of legislating for the less accountable your campaigns Today’s bill is characterized as im- partisan gain at the expense of the become and the more negative they be- portant campaign finance reform by American people. the House Republicans. The question I will vote in opposition of this bill. come. Mr. Speaker, I reserve the balance of I am constantly fascinated how the is, what effect would this bill have on my time. left uses the negativity of campaigns the countless scandals that are cur- Mr. EHLERS. Mr. Speaker, it is my as justification for yet further cam- rently engulfing Washington? The an- paign regulation when, in fact, their pleasure to yield 41⁄2 minutes to the swer is nothing. gentleman from California (Mr. DOO- regulations are creating the very nega- This bill does nothing to address LITTLE). tivity they claim to oppose. those very serious charges of corrup- Mr. DOOLITTLE. Mr. Speaker, legis- This bill is a reasoned bill, it is a bal- tion. It would do nothing to prevent lating for partisan gain is all that cam- anced bill, and it is one that we should another Jack Abramoff or Duke paign finance regulation has ever been adopt. Will it eliminate the problems? Cunningham scandal. about. Who are we kidding? Of course it will not because we have Further, in addition to doing noth- Let us go back to 1974. Watergate, the monstrosity of Federal regulation ing, the bill actually makes it easier Republicans are under heavy fire. of political speech, something the first for scandals to occur by opening up the Democrats took advantage of that, de- amendment to the United States Con- flood gates and removing all limits on manded reform, and one of their re- stitution expressly would seem to pro- State and national party committee forms was the Federal Election Com- hibit. It certainly seems clear to me spending in the Federal races. mission Act amendments. Those when it says in the first amendment Since this bill does nothing to re- amendments were quite far-reaching, Congress shall make no law abridging verse the Republican culture of corrup- and many of them became the law, and the freedom of speech, and yet mar- tion, let us look at this bill on the mer- when it went to the Supreme Court, velously the Supreme Court or at least its to see what it actually does. the Court finally struck out many of a majority of it managed to find that What this proposal would do is cur- them. What was left was the campaign these provisions did not violate the tail the free speech rights of millions finance law until we passed BCRA in first amendment. of Americans. The bill would limit the 2002. So my point is we have got to deregu- ability of average citizens to band to- It is interesting, though, to talk late political speech and quit tinkering gether and speak out about issues, both about that because eventually the Re- and turning about here and a dial here during and beyond election. It limits publicans made up for their disadvan- and trying to get partisan advantage participation in the electoral process. tage, and actually the Republicans won over the other. Wipe this whole In 2004, 527 organizations helped to were the leaders with soft money in monstrous system out, give full effect educate and register voters across the 2002. This is very upsetting to the to the first amendment, repeal all the country. Now in 2002, the Shays-Mee- Democrats, who developed votes off limits and have full and timely disclo- han-McCain-Feingold bill actually was soft money. It was a wonderful tool sure. That is the solution long term. In real reform with a clear purpose. It they could take advantage of, and they the meantime, short term today, please took Members of Congress out of the were a little behind. So they came up support this legislation, recognize business of asking lobbyists and special with BCRA in 2002. BCRA, of course, there is great language about coordina- interests for large, unregulated dona- was going to take the money out of tion that promotes responsibility, ac- tions. politics. countability and allows parties to help 527 organizations, however, are not Now, going back to 1974 for a minute, their candidates rather than running made up of elected officials. In fact, let us remember that President Nixon an independent expenditure. 527s are barred from coordinating with

VerDate Aug 31 2005 03:40 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00066 Fmt 4634 Sfmt 0634 E:\CR\FM\K05AP7.117 H05APPT1 ccoleman on PROD1PC71 with HOUSE April 5, 2006 CONGRESSIONAL RECORD — HOUSE H1521 office holders, candidates or public offi- groups like moveon.org to do their middle of a term, and was thinking of cials. By law, these groups are inde- dirty work. working for companies and sitting on pendent, and I am not aware of any al- Let us see, they might be a lot clean- boards. This legislation doesn’t change legations that there was any illegal co- er because billions of dollars in soft what would happen. It happened when ordination between 527s and political money contributions would stop, and Mr. Tauzin was out here on the floor. parties in 2004. If there is, I would urge so would the false and misleading mes- And if you had a hypothetical, the people with that knowledge to go to sage campaigns that take place in var- Member resigned, maybe just a hypo- the Attorney General or to the FEC ious districts almost daily. thetical, 2 months left on his tenure and report on this conduct. If there is One of my colleagues said if they are here, this legislation doesn’t affect who some, there are mechanisms for en- aware of any misuse of the 527s in the he meets with, who he talks with, how forcement, but the remedy to a non- political area, let me just state but he negotiates and how he votes while problem in that area is not to shut one. The ACORN Group, which is a po- he is negotiating. down free speech. litical front for a liberal 527 group Why, to do that, you would have to In fact, in Buckley v. Valeo, the Su- called America Votes, has also been have a desire for reform, and I wouldn’t preme Court upheld limitations on con- implicated in political escapades. A want to impose on the majority party tributions as appropriate legislative former ACORN worker admitted to de- in any way. All the while, while they tools to guard against the reality or liberately throwing out Republican are voting on this legislation, they are appearance of improper influence stem- registration forms and paying gath- negotiating jobs and they have no re- ming from candidates’ dependence on erers only to collect Democrat reg- sponsibility to report to the public of large campaign contributions. Buckley istration forms in 2004. Actually, in at their conduct. It is just business as also invalidated limitations on inde- least one State this is being inves- usual here in Washington. pendent expenditures, on candidate ex- tigated. And then what are they trying to do; penditures from personal funds, and on b 1730 take the legislation regarding the 527s, overall campaign expenditures. The Is this fairness? What about those and my colleagues on the other side Court ruled that these provisions who chose not to register in the Demo- voted the McCain-Feingold campaign placed direct and substantial restric- crat Party? They may have been Re- finance reform of past years. Well, that tions on the free speech rights guaran- publican; they may have decided to be reform leveled the playing field for teed in the first amendment. an independent. Do they not have a both parties. This legislation does not This bill directly contradicts the right to have their registrations turned intend to do that. This legislation in- Buckley ruling. It violates the first into the local election commissioner? tends to do a very partisan thing to the amendment and will not withstand You know, allowing groups to hide campaign finance laws affecting 527s. scrutiny by the Court. behind faulty, arcane and outdated Now, I introduced legislation to af- Why are we considering this bill FEC and IRS rules is not an option. fect 501(c)6s. Right now, in the State of today? I suspect this is a last ditch ef- Congress must move forward and re- Pennsylvania, one of those organiza- fort for Republicans to keep their hold form the laws that allow these 527s to tions is actually running ads. I say, on power. They have read the polls. spew their lies and fraudulent tactics you want the same rhetoric, you want They know that most Americans are on the American people. Regularly in 527s to report, well, I suggest 501(c)6s going to support Democrats this No- my district, I get the 527 calls. My con- report. That amendment was not al- vember, and the Republicans are losing stituents are wise to the fact that this lowed. Why? Because it would actually on issue after issue. So they are going is an unregulated entity. have leveled the playing field. It would to try and change the rules which will Ms. MILLENDER-MCDONALD. Mr. have applied to both parties, not one keep them in power against the wishes Speaker, I yield 31⁄2 minutes to the gen- party. So in the name of reform, once of a majority of Americans. tleman from Illinois (Mr. EMANUEL). again, we have partisan tactics. Let me finish by reviewing the ethics Mr. EMANUEL. Mr. Speaker, in the Now, all the while, you are going to rules that this Congress has passed this wake of the Jack Abramoff scandal, we go home and wonder why the American year. At the beginning of the year, have seen multiple indictments, Mem- people have such low esteem for the shortly after Jack Abramoff pled bers of Congress resigning under a Congress. It is quite obvious why they guilty, House Republicans boldly cloud of scandal, congressional ap- have such low esteem: College costs at pushed through their reform plan for proval at an historic low, and a public a record high, 38 percent and going up; Congress. What did their plan to crack demand for reform. You would think health care costs are up 58 percent, down on ethics do? It banned former that the Republican leadership would $3,600 in 4 years; energy costs are up 70 Members from lobbying in the House want to get these scandals behind percent; medium incomes are down. All gym and on the House floor. So Amer- them, but it is clear they do not. that Congress hasn’t paid attention to. ica, you can rest easy knowing that at What is the first stage of grief? De- So as we have scandals swirling least the cesspool of corruption at the nial and isolation. So here we are around this institution, Members re- Stairmaster is no more. today discussing a bill that doesn’t do signing, Members pleading guilty, you Today’s bill is really a travesty. It is anything to address the problems of once again go whistling past the grave- a joke. The country really should be the scandals facing this Congress, this yard on the chance to do real reform embarrassed by the efforts this Con- institution, which require an institu- and play partisan politics. I do not gress is making, by the corruption that tional solution to an institutional know what tune you are singing right has been shown and I fear the corrup- problem. now, but you will come to know that tion that is yet to be exposed in this Nope, this bill doesn’t do anything to tune this November. body. stop the pay-to-play policies of the Mr. EHLERS. Mr. Speaker, I am Mr. EHLERS. Mr. Speaker, I am party in power. Nope, it doesn’t. pleased to yield 33⁄4 minutes to my col- pleased to yield 2 minutes to the gen- Doesn’t do anything to shut down the league from New York (Mr. REYNOLDS). tlewoman from Florida (Ms. GINNY K Street Project, rewarding lobbyists (Mr. REYNOLDS asked and was BROWN-WAITE). who show party loyalty, or to slow the given permission to revise and extend Ms. GINNY BROWN-WAITE of Flor- revolving door. Nope, it doesn’t do his remarks.) ida. Mr. Speaker, I thank the gen- that. Mr. REYNOLDS. Mr. Speaker, I find tleman very much. Many of you will recall our former it such an ironic message that my col- If this bill becomes law, let us specu- colleague, Mr. Tauzin, who negotiated league from Illinois chose about his re- late about exactly what will happen. a million dollar lobbying job with the marks. As he talks about so many What would elections and politics be pharmaceutical industry at the same problems in Washington, he failed to like if the Federal Election Commis- time that he was rewriting the Medi- mention any on his side of the aisle. sion regulated 527s? Let us see. There care prescription drug bill. This legis- We kind of nicknamed that the culture might be some honesty. For example, lation doesn’t affect that. of hypocrisy. It is a hypocrisy of at- candidates and elected officials would Now, take a hypothetical for a mo- tack the Republicans, slash and burn, not be able to rely on partisan political ment. What if a Member just resigned, no debate, no real issues, just the party

VerDate Aug 31 2005 03:40 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00067 Fmt 4634 Sfmt 0634 E:\CR\FM\K05AP7.118 H05APPT1 ccoleman on PROD1PC71 with HOUSE H1522 CONGRESSIONAL RECORD — HOUSE April 5, 2006 of ‘‘no’’ from the Democrats on the law, and they have a chance to at least for sure, you won’t balance the budget. other side of the aisle. level the field under the law we are But this Congress will be remembered When you look at some of the discus- going to live under, misses the point. I as the Congress that Jack and Tom sions he talked about, with lobbying urge that you support this legislation built. Because the scandals continue to reform and others, he must remember that is before us today. swirl around this institution. that the colloquy between the majority Ms. MILLENDER-MCDONALD. Mr. Until you do serious lobbying reform leader and the minority would also Speaker, I yield 11⁄2 minutes to the gen- and close the loopholes, close the re- show clearly that the majority leader tleman from Illinois for a response. volving door, have real transparency, fully intends to bring reform legisla- Mr. EMANUEL. There must be some- real enforcement, this Congress, when tion to this body for debate and for thing in the water here in Washington. that gavel comes down, which is in- final solution. To remind my colleague and my tended to open the people’s House, not I also think about hypocrisy when I friend from Buffalo, the first vote of the auction House, and you have al- think about some of my colleagues on this Congress by the majority party lowed it to become an auction house, the other side of the aisle addressing so was to strip the Ethics Committee that then this is the House that Jack built. many things about the majority, ex- investigates Members of its authority Ms. MILLENDER-MCDONALD. Mr. cept they forgot that our leaders step to do that, which is why after 15 Speaker, how much time do we have re- down when they are indicted, because months in this Congress, the Ethics maining? that is what our party rules say. Our Committee has not met until last The SPEAKER pro tempore (Mr. chairman stepped down because that is week. LAHOOD). The gentlewoman from Cali- what our party rules say. And in the 10 Since that time, one Member stepped 1 fornia has 11 ⁄2 minutes remaining; the years while you have been reflecting, down with a guilty plea, another Mem- gentleman from Michigan has 8 min- your rules don’t say the same. Your ber stepped down with a cloud of eth- utes remaining. leaders can get indicted, or the ranking ics, and others are under Federal inves- Mr. EHLERS. Mr. Speaker, I reserve members can get indicted and you tigation at this point. And why? Be- the balance of my time. don’t have to step down because you cause the first vote by the Republican Ms. MILLENDER-MCDONALD. Mr. majority was to strip the Ethics Com- haven’t even recognized that as a basic Speaker, I yield 3 minutes to the gen- element of your own party, let alone mittee of its authority. tleman from Arizona (Mr. FLAKE). your quick criticisms of this institu- The second thing. In fact, the major- Mr. FLAKE. Mr. Speaker, I thank tion. ity party did vote this Congress that the gentlewoman for yielding. I also want to say that while I con- when a Member of their party was in- fess I did not think that BCRA was the dicted, they were allowed to hold their Mr. Speaker, this isn’t the first time solution for campaign finance reform, party position. You have that vote. the Congress has debated the effects of and voted that way on both the House You stripped your party of that author- public campaign discourse. Let me Administration Committee and on this ity and that moral voice when you cast take you back to 1798, when about 20 or floor, I accepted it as the law of the your vote to allow the majority leader so independent newspapers aligned land. It was legislation passed by both to retain his position when indicted. with Thomas Jefferson started openly bodies, signed by the President, af- Now, maybe there is a rampant dis- criticizing the policies of John Adams, firmed by the Supreme Court. But as I ease called short-term memory over the President. Adams used his power was listening to those who are pro- there, but two votes in this Congress: and influence to have Congress pass the BCRA, that wanted this law as it sits one, if you got indicted, in fact, you Alien and Sedition Acts, which de- today, they found a loophole, called are allowed to keep your position. You clared that the publication of false, 527s. cast those votes on your side. And this scandalous, and malicious writing was And all the debate on leveling the Congress, when it opened up, rather punishable by fine and imprisonment. playing field was get the big money out than address the scandals, this Con- By virtue of this legislation, 25 editors of politics. Well, four individuals on gress, under the majority, not with any were arrested and their newspapers the Democratic side had over $80 mil- Democratic support, stripped the bipar- were forced to shut down. lion; four Republicans had over $23 mil- tisan Ethics Committee from its abil- The first amendment was established lion as they were engaged in obscene, ity to hold investigations, which is to ensure that citizens are able to pro- big money, unregulated in campaigns why not a single Member to date, with tect themselves from government, not influencing Presidential, congres- all these scandals, some reported by so that government can protect itself sional, and referendum votes. others, congressional historians, as the from the people. If this bill passes, we So when we look at some common worst scandals in the history of the will be standing here having the same sense, I think the American people are Congress, still the Ethics Committee debate in a couple of years on how to going to, quite frankly, think this has failed to do its job because you regulate 501(c)4 organizations. 501(c)4s makes sense. Let us get unregulated have stripped it of its abilities to do its require no disclosure and have no con- big money out of the campaigns by job. tribution limits. They will surely be- having a level playing field across the That will be the moral stain on this come the 527s of 2008 if this legislation system, universal, in the money you Congress. Your votes. passes. give to your political party. Mr. EHLERS. Mr. Speaker, I am This legislation, H.R. 513, simply As we level the playing field, all we pleased to yield 30 seconds to the gen- compounds an existing problem. Loop- are asking is that rich individuals who tleman from New York to respond. holes will always exist, because there want to be in the process have the Mr. REYNOLDS. Mr. Speaker, I look will always be money in politics. In- same rights extended to them that in- forward to the day when, in our Ethics stead of stifling speech and forcing it dividuals who want to give to the polit- Committee, the Democrats will give to go underground, we ought to be lift- ical party, whether it is the Demo- the tools to a bipartisan five-five Eth- ing up other players in the political cratic National Committee or its sub- ics Committee to begin reviewing both system and provide more freedoms ordinate parties or the Republican Na- Democrats and Republicans who need with greater transparency and more tional Committee and its subordinate to go before that committee to have accountability. parties, the same amount of money to resolution of stuff that has been stalled Where will this lead? That is the 527s as they invest in the opportunity for the entire 2005 year by the Demo- question. If Republicans happen to lose to express themselves however they cratic leadership. in November, lose the majority, what want, with the same reviewed Supreme Ms. MILLENDER-MCDONALD. Mr. happens when Democrats try to level Court aspect of having a level playing Speaker, I yield 20 seconds to respond the playing field by applying the so- field across the entire system. to the gentleman. called fairness doctrine to radio talk Anyone who doesn’t vote for this Mr. EMANUEL. My good friend from shows? Surely the Democrats will that supported BCRA is a hypocrite. Buffalo, you may not get health care make the same arguments about Rush Anyone on the other side that doesn’t legislation done this year, you may not Limbaugh that Republicans are mak- recognize that this is a loophole in the get educational reform this year, and ing about George Soros.

VerDate Aug 31 2005 03:40 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00068 Fmt 4634 Sfmt 0634 E:\CR\FM\K05AP7.121 H05APPT1 ccoleman on PROD1PC71 with HOUSE April 5, 2006 CONGRESSIONAL RECORD — HOUSE H1523 b 1745 around the law. That is what I find so with the Internal Revenue Service. Back to the implications of the Alien amazing about this debate. They have to do quarterly reports. Un- and Sedition Acts. Americans were So what this amendment does is it like what has been said, that they do smart enough to realize what President just enforces the law that you, my fel- not have disclosure and they do not Adams was using. He was using the low colleagues on the other side of the have reporting, that is not true, and I aisle, voted for. It enforces the Cam- powers of government to stifle free include for the RECORD the IRS filing paign Finance Act, the McCain-Fein- speech and they reacted accordingly. dates so that can be placed in the Public opposition to the Alien and Se- gold bill, the bill you all supported. Now why do we have to pass this bill RECORD. dition Acts was so great that was a before us? Because unfortunately when large reason Adams was defeated by INTERNAL REVENUE SERVICE—UNITED STATES we gave it to the Federal Elections DEPARTMENT OF THE TREASURY Thomas Jefferson a few years later. Commission, the FEC, who does not be- This is history worth remembering, FORM 8872 FILING DATES (FOR 2006) lieve in the law, decided not to enforce Mr. Speaker. the law. They are happy to have loop- During an election year, a political organi- Mr. EHLERS. Mr. Speaker, I yield 51⁄2 holes. They are the ones who intro- zation has the option of filing on either a minutes to the gentleman from Con- duced the whole soft money issue in quarterly or a monthly schedule. The organi- necticut (Mr. SHAYS), the author of the first place. zation must continue on the same filing this legislation. So what do we have? We have a loop- schedule for the entire calendar year. Mr. SHAYS. Mr. Speaker, I thank the hole that needs to be closed, and the gentleman for yielding me this time. OPTION 1.—QUARTERLY FILING SCHEDULE This is a surreal debate because it is way you close it, is to pass this bill that requires 527s to come under the a debate that has consequences and yet Report Filing Date campaign finance law. This is because it seems to almost be like a game. their primary activity, in fact their 1st Quarter (January 1–March April 17, 2006 When we passed campaign finance re- only activity, is campaigns. 31). form, it passed primarily with Demo- 2nd Quarter (April 1–June 30) July 17, 2007 And the law is clear. Mr. MEEHAN and 3rd Quarter (July 1–Sep- October 16, 2006 cratic support and there wasn’t any I brought forward a case against the tember 30). talk about free speech because Demo- 12-Day Pre-General Election* October 26, 2006 (October 23, is posting FEC. We threw out 14 of their regula- report by certified or registered mail) crats made the proper argument. They tions because they did not abide by the 30-Day Post-General Election December 7, 2006 made the argument that this was about law, and then we proceeded to take a Year-End ...... January 31, 2007 letting people have their speech and 12-Day Pre-Election* ...... 12 days before the election (Varies accord- court action against them on enforcing ing to date of election. See pre-election not being drowned out by the wealthy. the law and put 527s under their juris- reporting dates chart) That is what the Democrats said: diction. *A political organization files a 12-day pre-election report(s) prior to a Don’t let the wealthy drown out people The court made a decision that Mr. federal election (primary, convention, and/or general election) if the political who don’t have a lot of resources. organization makes or has made contributions or expenditures with respect MEEHAN and I were right, that 527s So what the Democrats are now argu- to a federal candidate(s) participating in that election. Therefore, if the or- should be under the law. In fact, the ganization supported a federal candidate in a primary election, it files a 12- ing is that for instance 25 individual day pre-election report prior to that candidate’s primary election. If the or- judge said not putting them under the donors should be able to contribute ganization made contributions or expenditures in connection with a federal law circumvented the law. So what we candidate(s) in the general election, the organization also files the 12-day $142 million, or 56 percent of all of the pre-general election report. are doing is simply making the law individual contributions to 527 groups consistent. And frankly, this talk of in the 2004 election. That is what OPTION 2.—MONTHLY FILING SCHEDULE (c)(3)s, (c)(4)s and (c)(5)s, is not on Democrats are saying. They are saying point. Their primary responsibility and Report Filing Date we want the wealthy to be able to activity is not campaigns. And because dominate. But that was not their argu- January ...... February 21 of that, you are not going to have the February ...... March 20 ment when they voted for campaign fi- same problem that you have with 527s. March ...... April 20 nance reform, and it was not my argu- April ...... May 22 If in fact their primary activity be- ment. May ...... June 21 comes campaigns, then they will come June ...... July 20 Our argument was that we wanted to under it. July ...... August 21 have a level playing field. Our argu- August ...... September 20 This bill is consistent to the law. It ment was we wanted to enforce the 1907 September ...... October 20 is imperative it passes. It is consistent 12-Day Pre-General Election* October 26 (October 23, if posting report by law that banned corporate treasury certified or registered mail) with what my colleagues voted for, and money, we wanted to enforce the 1947 30-Day Post-General December 7 I applaud my side of the aisle for, in Election*. Taft-Hartley Act that banned forced Year-End ...... January 31, 2007 spite of the fact of not voting for the union dues money, and we wanted to law, be willing to live by the law. *A political organization files a 12-day pre-election report(s) prior to a support the 1974 campaign finance law federal election (primary, convention, and/or general election) if the political Ms. MILLENDER-MCDONALD. Mr. organization makes or has made contributions or expenditures with respect that said you could not make unlim- Speaker, I yield myself such time as I to a federal candidate(s) participating in that election. Therefore, if the or- ited contributions to federal cam- ganization supported a federal candidate in a primary election, it files a 12- may consume. day pre-election report prior to that candidate’s primary election. If the or- paigns. That is what Democrats argued I would say to the gentleman who ganization made contributions or expenditures in connection with a federal for and supported. And they blamed candidate(s) in the general election, the organization also files the 12-day just spoke, this is not what we voted pre-general election report. Republicans for being against cam- for. We did not vote to transfer 527s to paign finance reform. 501(c)s. That is dishonesty. I oppose Mr. Speaker, this bill, H.R. 513, will The amazing thing is once the cam- those who say this is an obscene bill, have a chilling effect on tax exempt paign finance reform bill passed Demo- 527s are not obscene. 501(c) organizations. Despite a provi- crats immediately started to break the What they are trying to do now here sion exempting nonprofit charities and law. They were looking to get around with this bill would provide each na- the very law they voted for. And when social service organizations, this bill, tional and State party committee to be H.R. 513, regulates the same activities Mr. Soros, who helped fund the cam- free from any limits in spending on be- that such entities are permitted to en- paign finance movement, argued that half of its candidates and the spending gage in. he should be able to contribute unlim- would take place at any time for the ited funds to 527s and that he should be primary or general elections. Should this bill become law, a prece- able to bring his $20-plus million to the This is the flow of money that the dent may be set that all nonprofit ac- table, just this one individual, Demo- American people are saying take out of tivities should be heavily regulated crats wanted to protect him and allow campaigns. leading to significant new restrictions him to do that. And Republicans who Mr. EHLERS. Mr. Speaker, I reserve on 501(c)3s. H.R. 513 thus may represent were against the law said this is the the balance of my time to close. a trend with chilling implications for law, we are going to abide by it. Ms. MILLENDER-MCDONALD. Mr. the nonprofit sector. The amazing thing is the very people Speaker, I yield myself the balance of who did not vote for the law were will- my time to close. Mr. Speaker, I include for the ing to abide by it, and the very people Mr. Speaker, I want to clarify that RECORD a statement from the CATO In- who voted for the law are trying to get the 527s have been and must always file stitute, a conservative think tank.

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CATO INSTITUTE—Free Speech and the 527 stead makes only expenditures can be sub- mittees that also contribute to candidates or Prohibition ject to limitation.’’ In Buckley v. Valeo, the make coordinated expenditures, it is not (By Stephen M. Hoersting—April 3, 2006) Supreme Court stated that the First Amend- clear that the Court would approve limits on ment permits the government to regulate organizations that engage in wholly inde- LIMITING THE SPEECH OF INDEPENDENT campaign spending to prevent the corruption pendent activity. As noted by Professor SPEAKERS IS UNWISE AND UNCONSTITUTIONAL of officeholders or its appearance. The Court Briffault, the McConnell Court’s treatment Forcing PACs on citizens is a matter for courts, has not recognized any interest in ‘‘equal- of this issue related to BCRA’s application of not just Congress izing’’ speech. Contributions and funds spent contribution limits to the activities of polit- To constitutionally regulate campaign fi- in coordination with a candidate can be lim- ical parties.’’ 47 But the section 527 organiza- nance, the government must demonstrate ited to protect against legislative quid pro tions Congress appears interested in and po- that the ‘‘harms it recites are real,’’ not quos. The Court has also said that contribu- litical party committees are not alike. ‘‘mere speculation or conjecture.’’ Proposals tions to an organization that in turn makes ‘‘[F]ederal candidates and officeholders to subject section 527 organizations to polit- both contributions and independent expendi- enjoy a special relationship and unity of in- ical committee status, with scant regard to tures (defined constitutionally as ‘‘express terest’’ with their political party, said the their activities, effectively impose an ‘‘any advocacy’’) can also be limited to make reg- McConnell Court. 48 ‘‘The national commit- purpose’’ test in brazen disregard of the ulatory oversight feasible; to prevent the tees of the two major parties are both run ‘‘major purpose’’ test the Supreme Court es- possibility that unlimited funds would flow by, and largely composed of, federal office- tablished in Buckley v. Valeo. Such pro- to candidates. But independent spending holders and candidates.’’ 49 The ‘‘close con- posals presume that any communication lacks the necessary connection to office- nection and alignment of interests’’ between mentioning a candidate that promotes, sup- holders, is not corrupting, and cannot be candidates and their political parties means ports, attacks, or opposes that candidate at limited. The ‘‘absence of prearrangement that ‘‘large soft-money contributions to na- any time of the year—or any ‘‘voter drive ac- and coordination of an expenditure with the tional parties are likely to create the actual tivity,’’ even if totally non-partisan—is suffi- candidate or his agent not only undermines or apparent indebtedness on the part of fed- cient to trigger political committee status. the value of the expenditure to the can- eral officeholders, regardless of how those didate, but also alleviates the danger that If such proposals were in effect during the funds are ultimately spent,’’ 50 and the same expenditures will be given as a quid pro quo last cycle, any mention of President Bush’s is true of ‘‘the close ties between federal can- for improper commitments from the can- or Senator Kerry’s policies from November 2, didates and state party committees.’’ 51 didate.’’ Independent spending is not cor- 2003 to November 2, 2004, or any attempt to The same cannot be said of 527 organiza- rupting. Likewise, contributions to organiza- identify voters, would have turned the 527 or- tions. There is no record that candidates or tions that engage in independent spending party committees coordinated their spending ganization into a federal political com- are also not corrupting. The Court has al- mittee. In FEC v. Beaumont, the Court noted with the 527s. Section 527 organizations sim- ready granted constitutional protection to ply have no comparable ties to candidates, that a non-profit corporation entitled to the an individual’s independent spending. George thus making the anti-circumvention ration- MCFL exemption of federal campaign law— Soros may buy all the advertising he wants. ale of McConnell far too tenuous and unsuit- which exempts certain non-profit corpora- That right extends also to an individual’s do- able. Spending by section 527 organizations tions from FECA’s registration require- nation to an organization that engages in does not corrupt the legislative process be- ment—would have to register as a political independent spending. ‘‘The independent ex- committee to make contributions to federal penditure ceiling fails to serve any substan- cause there is no nexus to lawmakers. It does candidates, though it would not have to reg- tial governmental interest in stemming the not corrupt the balloting process. And spend- ister to make independent expenditures. The reality or appearance of corruption in the ing by section 527 organizations does not cor- direct nexus to a federal candidate and the electoral process . . . and ‘‘ ‘heavily burdens rupt the process of information exchange in entity’s enjoyment of the corporate form core First Amendment protection.’’’ the run up to the election. Indeed, spending were ample reason to require it to register. As stated by Professor Richard Briffault, by section 527 organizations is an integral There is no such connection here, however, ‘‘[t]wo Supreme Court decisions provide sup- part of the process of information exchange. or existing 527 organizations would already port for the argument that if an independent And the information exchange needs to be be covered. expenditure does not present a danger of cor- open, robust and uninhibited. Establishing and maintaining a PAC, how- rupting or appearing to corrupt office- More speech is what is needed, not less ever, is not a minor administrative task, and holders, then contributions to a political Studies indicate that campaign spending it has become more onerous with each new committee that makes only independent ex- diminishes neither trust nor involvement by round of restrictions on PACs and those who penditures cannot be limited.’’ The first case citizens in elections. Indeed, spending in- run them. Gone will be the ability of citizens is California Medical Ass’n v. FEC, a case in- creases public knowledge of candidates to adapt quickly and associate freely in sup- volving limits on contributions by a trade among all groups in the population. ‘‘Higher port of a position when issues arise. The var- association to its own PAC. In the plurality campaign spending produces more knowledge ious funding source, amount, and disclosure was Justice Blackmun, who wrote in concur- about candidates,’’ whether measured by requirements of PAC compliance make it dif- rence that although the limit on contribu- name identification, association of can- ficult to raise the quantities of money for tions to a political committee is valid ‘‘as a didates with issues, or ideology; and setting broadcast communications. New or small or- means of preventing evasion of the limita- a cap on spending would likely produce a less ganizations may have a hard time, given the tions on contributions to a candidate[,] . . . informed electorate. 52 Unlimited spending limited number of employees or members a different result would follow [if the limit] does not confuse the public, 53 and the bene- from whom they can solicit at all: not just were applied to donations to a political [or- fits of campaign spending are broadly dis- anyone may contribute to a PAC; you have ganization] established for the purpose of persed across advantaged and disadvantaged to belong to the organization, or work for making independent expenditures, rather groups alike. That is, as incumbents are the company or union that sponsors it. That than contributions,’’ because ‘‘a committee challenged by spending, both advantaged and has practical consequences of which courts that makes only independent expenditures disadvantaged groups gain in knowledge. 54 are aware. The Swift Vets’ communications . . . poses no threat’’ of corruption. Professor And so-called negative advertising cam- would have been impossible, for example, John Eastman has noted that contributions paigns do not demobilize the public, as many without the modest seed money that would to a committee that does not give to can- have alleged. 55 didates, such as most section 527 organiza- become illegal under current 527 proposals. Razing speech to the same level tions contemplated by current proposals, are Or if the PAC were wildly successful, how- Yet many persons inside the beltway be- ever unlikely, it would come at the expense deserving of even more constitutional pro- tection because ‘‘the principal message ex- lieve that 527s should be regulated on egali- of other right-leaning PACs or party com- tarian grounds. Republican Party chairman mittees, all of which rely on individual con- pressed by a contribution to a noncandidate committee is agreement with and further- Ken Mehlman is outspoken in support of 527 tributors bound by biennial aggregate limits regulation, declaring that Congress ‘‘must on their contributions to all political com- ance of that committee’s views,’’ unlike the message expressed by contributions to a can- reform 527s, so that everyone plays at the mittees during an election cycle. In other same level, and billionaires can’t once again words, the question of who will join your didate committee or a committee that in use loopholes to try to buy elections.’’ 56 PAC in time to raise enough funds at a max- turn gives to candidates. This approach is bolstered by the second case, Citizens Democratic Party chairman Howard Dean imum of $5000 per person for advertising is a signed expenditure limit legislation as Gov- very real constraint on an organization’s Against Rent Control, which invalidated a contribution limit to a ballot proposition ernor of Vermont and had the DNC file an ability to run advertising—independent ad- amicus brief to the Supreme Court in sup- vertising, no less. committee because the lack of a nexus to a candidate made corruption inapplicable. port of the legislation. 57 Senator John Independent voices can’t be limited Similarly, where the nexus to an officeholder McCain ‘‘said that lawmakers should support Forcing political committee status on the is not present, the anti-circumvention ra- the bill out of self-interest, because it would organizations is only one question in assess- tionale of McConnell is also not furthered by prevent a rich activist from trying to defeat ing constitutionality. The ‘‘key question is a limit on contributions to organizations an incumbent by diverting money into a po- whether individual contributions to any po- that engage in wholly independent activity. litical race through a 527 organization. ‘That litical committee—527 or not—that does not Even though the contribution limit applies should alarm every federally elected Member make contributions to a candidate but in- to the independent spending of political com- of Congress,’ he said.’’ 58 Senator Trent Lott

VerDate Aug 31 2005 05:16 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00070 Fmt 4634 Sfmt 0634 E:\CR\FM\A05AP7.067 H05APPT1 ccoleman on PROD1PC71 with HOUSE April 5, 2006 CONGRESSIONAL RECORD — HOUSE H1525 has called for limits on 527s to ‘‘level the Mr. MEEHAN. Mr. Speaker, I thank plug the newest subterranean pipe for un- playing field.’’ 59 That these candidates and the gentleman for yielding me this regulated campaign funds from big labor, big party chairs notice the spending and how it time. corporations and just plain big money. may benefit or hurt them is also a tenuous Mr. Speaker, basically this is a legal Of all the subplots in the presidential elec- justification for regulation. Dissenting in tion, none were as sorry as the Democrats’ McConnell, Chief Justice William Rehnquist issue. 527s are legally established be- pioneering ‘‘527’’ groups—named for the sec- wrote that benefit—even benefit expressed in cause their primary purpose is to influ- tion of the tax code that governs them. The gratitude—is not enough to justify restric- ence the election or defeat of a Federal 527’s were intended to circumvent the law’s tions, otherwise this rationale could serve as candidate. They have to file with the strictures against having unlimited soft a basis to regulate ‘‘editorials and political FEC because after Watergate in 1974 money flood into political races. The Demo- talk shows [that] benefit federal candidates this Congress passed a law that said if crats built these new shadow-party advocacy and officeholders every bit as much as a ge- you are going to have a political com- groups to attack the president early in the neric voter registration drive conducted by a mittee whose primary purpose is to in- campaign season and build voter-turnout state party,’’ 60 a position adopted by the machines. Then they watched Bush partisans McConnell majority. 61 Preventing circum- fluence an election, then they have to adapt the same financing device to float the vention of applicable contribution limits and register with the FEC. campaign’s most notorious and devastating source prohibitions was the rationale em- The FEC ignored 30 years of congres- attack ads, the Swift boat assaults on John ployed by the Court in McConnell. The ra- sional actions and Supreme Court ju- Kerry’s heroic war record and his antiwar ac- tionale was not to foster egalitarianism. 62 risprudence in allowing 527s to evade tivities after he returned from Vietnam. Buckley long ago rejected the argument the law. In short, the FEC failed to do Dollar-wise, the Democrats proved better that ‘‘equalizing the relative ability of indi- its job and regulate 527s as required at milking the 527 strategy, spending more viduals and groups to influence the outcome under the Watergate statute. So in than three times as much as the Republicans of elections’’ 63 is a compelling interest, add- in stealth-party ads favoring their presi- September of 2004, Congressman SHAYS ing that ‘‘the concept that government may dential ticket. But the Republicans wielded restrict the speech of some elements of our and I filed a suit against the FEC for their ads like a rapier once the Federal Elec- society in order to enhance the relative voice failing to enforce the regulations. tion Commission, true to its track record, of others is wholly foreign to the First You know what is interesting, just shirked its responsibility by deciding that Amendment.’’ 64 The Court has said else- last Wednesday the U.S. District Court the new breed of advocacy groups should not where that trying to manipulate groups’ rel- Judge Sullivan ruled in favor of our po- be controlled under the campaign finance re- ative ability to speak ‘‘is a decidedly fatal sition that the FEC had failed to form laws. objective.’’ 65 And there is good reason to be present a reasonable explanation for its A commission majority endorsed the fic- suspicious of the motives of incumbent legis- tion that the 527’s are independent. The decision in 2004 not to regulate 527s. truth is that they were strategically linked lators and party chairmen seeking egali- Judge Sullivan remanded the case back tarianism in campaign spending. After a cer- to the candidates and perfect targets for ag- tain level of spending, the utility of further to the FEC and said either you articu- gressive F.E.C. regulation and spending lim- spending declines, and incumbents hit the late a reason for not regulating 527s or its. The 527 fund-raisers were the V.I.P. toast point of marginal utility earlier than oppo- promulgate a new rule. A new rule that of the party conventions last summer, rais- nents. 66 Political free trade is both the norm regulates 527s is called for under the ing money in luxury suites with a wink and and normative prescription for a healthy and law. That is all we are seeking to do a grin. constitutional political system in America. here. That is all we are seeking to do. After this year’s election drubbings, you And ‘‘[p]olitical ‘free trade’ does not nec- would think the Democrats would now see One way or the other, the court is the folly of the 527 committees. But, no, essarily require that all who participate in going to rule in favor. This is one way the political marketplace do so with exactly ranking Democrats are determined to make equal resources.’’ 67 for us to do it quickly. them a permanent campaign weapon, with Mr. EHLERS. Mr. Speaker, I yield no dollar caps on the corporations, labor Mr. Speaker, the CATO Institute myself the balance of my time to close. unions and fat-cat partisans who spent more writes that limiting the speech of inde- I just have to say, I am a little dis- than $550 million on such committees in this pendent speakers is unwise and uncon- appointed in this debate. In fact, I am year’s races. stitutional. In fact, forcing PACs on greatly disappointed in this debate. I President Bush condemned the 527’s and citizens is a matter for courts and not promised a crackdown when the Democrats am just a simple person who grew up in first exploited them and caught the G.O.P. Congress. To constitutionally regulate a small town, and I grew up in an area campaign finance, the government short. But later in the campaign, he failed to where we said what we meant, and we condemn the Swift boat ads when Senator must demonstrate that the harms it re- meant what we said. John McCain did so and pointedly asked for cites are real, not just mere specula- I have heard so much diversionary the president’s support. Now Mr. Bush has tion or conjecture. Proposals to subject discussion on this topic from the mi- another chance to put his considerable polit- section 527 organizations to political nority today, it is very disappointing ical weight behind Mr. McCain, who is deter- committee status with scant regard to to me. mined to use the coming Congressional ses- their activities effectively imposes an The proposition of the bill is very sion to pass legislation that would force this blowzy lucre-genie back into the bottle. any-purpose test in brazen disregard simple: unlimited spending of soft for the major purpose test of the Su- Senator McCain overcame whatever past money was intended to be banned bad feeling there was between himself and preme Court established under Buckley under BCRA. A diversionary tactic has the president and became a dogged Bush v. Valeo. developed which allows the expendi- campaigner this year. We hope the president Mr. Speaker, conservative groups are tures of huge amounts of money, un- repays him by explicitly backing the McCain saying this is not good policy, that this regulated soft money, and this bill fight to stop the 527 gamesmanship as an policy is shutting down those groups today is an attempt to stop that prac- abuse of fair elections. And it’s equally im- portant for the president to enlist in the sen- that were independent, free of Con- tice which is being carried out by peo- gress, free of the Members of Congress, ator’s campaign to overhaul the election ple who are violating the intent of a commission. The F.E.C. is a transparent ex- and this bill influences the outcome of law we passed a few years ago. That tension of hack party politics, beholden to elections and in fact money will be plain and simple is the issue here. members of Congress who are more con- flowing all over the place as it is doing I urge the body to adopt the bill and cerned with their own incumbency than the right now. Money will be flowing all stop the abominable practice of huge public interest. over the place as we are speaking amounts of unregulated, unreported today. money influencing elections. Let’s get [From the Washington Post, Apr. 5, 2006] This is a bad bill. The American peo- back to the original intent of BCRA CLOSE THE 527 LOOPHOLE ple do not want more money into these and put it in place and enforce it. CONGRESS SHOULD BEACH THE SWIFT BOATS AND campaigns. They want less money. I Mr. Speaker, I include for the GEORGE SOROS, TOO urge a ‘‘no’’ vote on this bill. RECORD the material I previously re- The House plans to take up legislation Mr. Speaker, I yield back the balance ferred to. today that would close the biggest remaining of my time. loophole in the campaign finance system. It [From the New York Times, Dec. 29, 2004] would require the political groups known as 1 Mr. EHLERS. Mr. Speaker, I yield 1 ⁄2 THE SOFT MONEY BOOMERANG 527s to play by the same rules as other com- minutes to the gentleman from Massa- It’s encouraging to see signs of life in mittees that aim to influence federal elec- chusetts (Mr. MEEHAN), the other spon- Washington, particularly on the Republican tions. The House ought to pass the measure, sor of the bill from the minority side. side of the aisle, over the obvious need to sponsored by Reps. Christopher Shays (R-

VerDate Aug 31 2005 03:42 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00071 Fmt 4634 Sfmt 0634 E:\CR\FM\A05AP7.068 H05APPT1 ccoleman on PROD1PC71 with HOUSE H1526 CONGRESSIONAL RECORD — HOUSE April 5, 2006 Conn.) and Martin T. Meehan (D-Mass.), and listening’’). ‘‘My experiences under Nazi and Soros will continue to recruit wealthy do- shut down the kind of 527 ‘‘soft money’’ oper- Soviet rule have sensitized me,’’ he said in a nors for his campaign. Having put a lot of ation that flourished during the 2004 cam- soft Hungarian accent. money into the war of ideas around the paign, like Democrats’ America Coming To- Soros’s contributions are filling a gap in world, he has learned that ‘‘money buys tal- gether and Republicans’ Swift Boat Veterans Democratic Party finances that opened after ent; you can advocate more effectively.’’ for Truth. the restrictions in the 2002 McCain-Feingold At his home in Westchester, N.Y., he raised These committees, named after the section law took effect. In the past, political parties $115,000 for Democratic presidential can- of the tax code under which they’re estab- paid a large share of television and get-out- didate Howard Dean. He also supports Demo- lished, are by definition ‘‘organized and oper- the-vote costs with unregulated ‘‘soft cratic presidential contenders Sen. John F. ated primarily’’ to influence elections. When money’’ contributions from corporations, Kerry (Mass.), retired Gen. Wesley K. Clark those elections are for federal office, it unions and rich individuals. The parties are and Rep. Richard A. Gephardt (Mo.). makes no sense to let such groups collect now barred from accepting such money. But In an effort to limit Soros’s influence, the six-, seven- and even eight-figure checks to non-party groups in both camps are stepping RNC sent a letter to Dean Monday, asking elect or defeat candidates, while candidates, in, accepting soft money and taking over him to request that ACT and similar organi- political parties and political action com- voter mobilization. zations follow the McCain-Feingold restric- mittees are limited to receiving contribu- ‘‘It’s incredibly ironic that George Soros is tions limiting individual contributions to tions a small fraction of that size. Similarly, trying to create a more open society by $2,000. corporations and labor unions—barred by using an unregulated, under-the-radar- The RNC is not the only group irked by law from contributing directly to federal screen, shadowy, soft-money group to do it,’’ Soros. Fred Wertheimer, president of Democ- candidates or parties—shouldn’t be allowed Republican National Committee spokes- racy 21, which promotes changes in cam- to write checks to 527s, which exist for the woman Christine Iverson said. ‘‘George Soros paign finance, has benefited from Soros’s same purpose. has purchased the Democratic Party.’’ grants over the years. Soros has backed al- The usual politics of campaign finance re- In past election cycles, Soros contributed tering campaign finance, an aide said, donat- form—Democrats for (at least publicly), Re- relatively modest sums. In 2000, his aide said, ing close to $18 million over the past seven publicans against—are upside down this time he gave $122,000, mostly to Democratic years. around. The reason is that Republicans do causes and candidates. But recently, Soros ‘‘There’s some irony, given the supporting better than Democrats at raising the (rel- has grown alarmed at the influence of role he played in helping to end the soft atively) small donations known as ‘‘hard neoconservatives, whom he calls ‘‘a bunch of money system,’’ Wertheimer said. ‘‘I’m sorry money,’’ while Democrats took the lead in extremists guided by a crude form of social that Mr. Soros has decided to put so much the past election cycle in raising soft money Darwinism.’’ money into a political effort to defeat a can- for 527 groups. Connoisseurs of hypocrisy Neoconservatives, Soros said, are exploit- didate. We will be watchdogging him close- should enjoy this spectacle, but the partisan ing the terrorist attacks of Sept. 11, 2001, to ly.’’ calculations are probably overstated. Demo- promote a preexisting agenda of preemptive An aide said Soros welcomes the scrutiny. crats, with the rise of the Internet, have war and world dominion. ‘‘Bush feels that on Soros has become as rich as he has, the aide been improving their hard-money fund- September 11th he was anointed by God,’’ said, because he has a preternatural instinct raising. Republicans are bound to draw even Soros said. ‘‘He’s leading the U.S. and the for a good deal. in the 527 race if it continues. world toward a vicious circle of escalating Asked whether he would trade his $7 bil- There are concerns that regulating money violence.’’ lion fortune to unseat Bush, Soros opened to 527s would drive spending further into the Soros said he had been waking at 3 a.m., his mouth. Then he closed it. The proposal shadows, to nonprofit groups and trade asso- his thoughts shaking him ‘‘like an alarm hung in the air: Would he become poor to ciations that, unlike 527s, don’t even have to clock.’’ Sitting in his robe, he wrote his beat Bush? disclose their donors and spending. But there ideas down, longhand, on a stack of pads. In He said, ‘‘If someone guaranteed it.’’ are restrictions on the partisan activity of January, PublicAffairs will publish them as such groups, and if a problem develops with a book, ‘‘The Bubble of American Suprem- APRIL 4, 2006. the misuse of such organizations, that could acy’’ (an excerpt appears in December’s At- DEAR REPRESENTATIVE: The House is sched- be addressed in future legislation. It’s not a lantic Monthly). In it, he argues for a collec- uled to consider this week H.R. 513, legisla- reason for inaction now. tive approach to security, increased foreign tion sponsored by Representatives Chris aid and ‘‘preventive action.’’ Shays (R–CT) and Marty Meehan (D–MA) to [From the Washington Post, Nov. 11, 2003] ‘‘It would be too immodest for a private require that 527 groups spending money to person to set himself up against the presi- influence federal elections comply with fed- SOROS’S DEEP POCKETS VS. BUSH; FINANCIER dent,’’ he said. ‘‘But it is, in fact’’—he eral campaign finance laws. CONTRIBUTES $5 MILLION MORE IN EFFORT chuckled—‘‘the Soros Doctrine.’’ Our organizations support H.R. 513, which TO OUST PRESIDENT His campaign began last summer with the is necessary to close the FEC-created loop- (By Laura Blumenfeld) help of Morton H. Halperin, a liberal think hole that allowed both Democratic and Re- NEW YORK.—George Soros, one of the tank veteran. Soros invited Democratic publican 527 groups to spend hundreds of mil- world’s richest men, has given away nearly strategists to his house in Southampton, lions of dollars in unlimited soft money to $5 billion to promote democracy in the Long Island, including Clinton chief of staff influence the 2004 presidential and congres- former Soviet bloc, Africa and Asia. Now he John D. Podesta, Jeremy Rosner, Robert sional elections. has a new project: defeating President Bush. Boorstin and Carl Pope. The organizations include the Campaign ‘‘It is the central focus of my life,’’ Soros They discussed the coming election. Stand- Legal Center, Common Cause, Democracy 21, said, his blue eyes settled on an unseen tar- ing on the back deck, the evening sun an- the League of Women Voters, Public Citizen get. The 2004 presidential race, he said in an gling into their eyes, Soros took aside Steve and U.S. PIRG. interview, is ‘‘a matter of life and death.’’ Rosenthal, CEO of the liberal activist group Under H.R. 513, the 527 political groups Soros, who has financed efforts to promote America Coming Together (ACT), and Ellen would be able to continue to undertake ac- open societies in more than 50 countries Malcolm, its president. They were proposing tivities to influence federal elections, but around the world, is bringing the fight home, to mobilize voters in 17 battleground states. would do so under the same campaign fi- he said. On Monday, he and a partner com- Soros told them he would give ACT $10 mil- nance laws that apply to candidates, polit- mitted up to $5 million to MoveOn.org, a lib- lion. ical parties and other political committees eral activist group, bringing to $15.5 million Asked about his moment in the sun, whose major purpose is to influence federal the total of his personal contributions to Rosenthal deadpanned: ‘‘We were dis- elections. Enclosed is a Q and A on H.R. 513. oust Bush. appointed. We thought a guy like George Much of the soft money contributed to 527 Overnight, Soros, 74, has become the major Soros could do more.’’ Then he laughed. ‘‘No, groups to influence the 2004 federal elections financial player of the left. He has elicited kidding! It was thrilling.’’ came from a relatively small number of very cries of foul play from the right. And with a Malcolm: ‘‘It was like getting his Good wealthy individuals. According to campaign tight nod, he pledged: ‘‘If necessary, I would Housekeeping Seal of Approval.’’ finance scholar Anthony Corrado, just 25 in- give more money.’’ ‘‘They were ready to kiss me,’’ Soros dividuals accounted for $146 million raised by ‘‘America, under Bush, is a danger to the quipped. Democratic and Republican 527 groups that world,’’ Soros said. Then he smiled: ‘‘And I’m Before coffee the next morning, his friend spent money to influence the 2004 federal willing to put my money where my mouth Peter Lewis, chairman of the Progressive elections. is.’’ Corp., had pledged $10 million to ACT. Rob In order to qualify as a 527 group under the Soros believes that a ‘‘supremacist ide- Glaser, founder and CEO of RealNetworks, Internal Revenue Code and receive tax-ex- ology’’ guides this White House. He hears promised $2 million. Rob McKay, president of empt status, Section 527 groups must be ‘‘or- echoes in its rhetoric of his childhood in oc- the McKay Family Foundation, gave $1 mil- ganized and operated primarily’’ to influence cupied Hungary. ‘‘When I hear Bush say, lion, and benefactors Lewis and Dorothy elections. They are, by definition, ‘‘political ‘You’re either with us or against us,’ it re- Cullman committed $500,000. organizations,’’ not ‘‘issue groups,’’ and they minds me of the Germans.’’ It conjures up Soros also promised up to $3 million to should not be operating outside federal cam- memories, he said, of Nazi slogans on the Podesta’s new think tank, the Center for paign finance laws when they are spending walls, Der Feind Hort mit (‘‘The enemy is American Progress. money to influence federal elections.

VerDate Aug 31 2005 03:42 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00072 Fmt 4634 Sfmt 0634 E:\CR\FM\A05AP7.072 H05APPT1 ccoleman on PROD1PC71 with HOUSE April 5, 2006 CONGRESSIONAL RECORD — HOUSE H1527 As the Supreme Court stated in the evade the limits on contributions from indi- Mr. BLUMENAUER. Mr. Speaker, through- McConnell case upholding the constitu- viduals to candidates. out my career, I have consistently and strongly tionality of the Bipartisan Campaign Reform H.R. 513 is based on the simple proposition supported sensible campaign finance reform. that a 527 group that spends money to influ- Act, Section 527 groups ‘‘by definition en- As introduced, H.R. 513, the 527 Reform Act, gage in partisan political activity.’’ The ence federal elections should abide by the Court stated in McConnell that 527 groups same set of rules that apply to other polit- was a measure I could have supported. In the ‘‘are, unlike § 501(c) groups, organized for the ical groups whose purpose is to spend money long run, it would have been politically neutral; express purpose of engaging in partisan po- to influence federal elections. There is no not giving an advantage to either Republicans litical activity.’’ basis for allowing a 527 group to claim the or Democrats. Section 527 groups are treated differently advantage of a tax exemption as a ‘‘political However, with the changes that have been under campaign finance laws than Section organization’’ under the tax laws, while at made to the bill by the Republican leadership, 501(c) groups because they are fundamentally the same time failing to comply with the this bill would needlessly allow unlimited con- different entities than 501(c) groups. federal campaign finance laws on the claim tributions from party committees to coordinate Section 527 groups, by definition, are orga- that it is not a ‘‘political committee.’’ with campaigns and thereby dramatically rais- nized and operated ‘‘primarily’’ to influence We strongly urge you to vote for H.R. 513, elections. This standard has long been used provided it does not include the Pence ‘‘poi- ing the amount of money spent on elections, to define political groups that are covered by son pill’’ proposal to repeal or undermine the not reduce it. This provision alone would dra- and must comply with federal campaign fi- aggregate limit on individual contributions. matically undermine the campaign finance re- nance laws. Section 527 groups have the same CAMPAIGN LEGAL CENTER forms we worked so hard to put in place in organizing principle as candidate commit- COMMON CAUSE 2002. The bill is neither necessary nor fair and tees, political party committees and PACs— DEMOCRACY 21 would increase the role of money in cam- their primary purpose is to influence elec- LEAGUE OF WOMEN VOTERS paigns and elections. tions—and should be subject to the same PUBLIC CITIZEN Mr. VAN HOLLEN. Mr. Speaker, today I campaign finance laws. U.S. PIRG Section 501(c) groups, by contrast, are pro- voted against H.R. 513, the ‘‘527 Reform Act of 2005’’ introduced by Congressmen SHAYS hibited by their tax status from having a pri- HOUSE OF REPRESENTATIVES, mary purpose to influence elections. Al- Washington, DC, April 4, 2006. and MEEHAN. As a strong and long-term sup- though Section 501(c) groups (except for Hon. VERNON J. EHLERS, porter of the Shays-Meehan/McCain-Feingold charitable groups) are permitted to spend Chairman, Committee on House Administration, campaign reform legislation, I want to take this some money for political purposes, tax laws House of Representatives, Washington, DC. opportunity to explain my decision to vote impose constraints on the political activity DEAR CHAIRMAN EHLERS: In recognition of against H.R. 513 today. they can engage in, while similar constraints the desire to expedite consideration of H.R. On the surface, H.R. 513 appears to be are not imposed on 527 groups. 513, the ‘‘527 Reform Act of 2005,’’ the Com- simple. It would require ‘‘527 groups,’’ which The 2004 election demonstrated widespread mittee on the Judiciary hereby waives con- represent individuals or groups that are not di- soft money abuses by 527 groups, which spent sideration of the bill. There are provisions rectly affiliated with political party organiza- hundreds of millions of dollars to influence contained in H.R. 513 that implicate the rule the presidential and congressional elections X jurisdiction of the Committee on the Judi- tions, to register and report with the Federal without complying with the federal cam- ciary. Specifically, section 5 provides for ju- Election Commission in the same manner as paign finance laws. H.R. 513 addresses this dicial review of certain constitutional chal- political committees. I support that part of this demonstrated problem. lenges to the legislation. This provision im- bill. As we noted in our letter yesterday, an plicates the rule X(1)(l)(1) jurisdiction of the However, the Republican Leadership in- amendment may be offered by Representa- Committee over ‘‘the judiciary and judicial serted a poison pill into the bill. In the dark of tive Mike Pence (R–IN) to repeal the existing proceedings, civil and criminal.’’ night, the Republican-controlled House Rules aggregate limit on the total contributions The Committee takes this action with the Committee added an amendment to roll back that an individual can give to all federal understanding that by foregoing consider- current limits on Congressional campaign candidates and political parties in a two- ation of H.R. 513, the Committee on the Judi- year election cycle. The Pence amendment ciary does not waive any jurisdiction over committee spending in supporting a candidate would repeal an essential Watergate reform subject matter contained in this or similar in a House general election. In 2006, Con- that was enacted to prevent corruption and legislation. The Committee also reserves the gressional committees are limited to spending the appearance of corruption, and was upheld right to seek appointment to any House-Sen- a maximum of $79,200 in a Congressional as constitutional on this basis by the Su- ate conference on this legislation and re- race. This amount is set by law and adjusted preme Court. quests your support if such a request is for inflation. Under current law, Congressional We strongly oppose the Pence proposal, made. Finally, I would appreciate your in- campaign committees possess the authority to which would allow a President, Senator or cluding this letter in the Congressional Representative to solicit, and a single donor spend unlimited amounts on a campaign. Con- Record during consideration of H.R. 513 on gressional committees must currently borrow to contribute, a total of more than $3,000,000 the House floor. Thank you for your atten- for the officeholder’s party and the party’s tion to these matters. and use the limits assigned by law to each congressional candidates in a two-year elec- Sincerely, party’s national committee and each state tion cycle. F. JAMES SENSENBRENNER, Jr., party committee. The amended bill will lift cur- We urge you to vote against the Pence Chairman. rent caps and upset the balance of spending. ‘‘poison pill’’ amendment and also urge you A second killer amendment eliminates Con- to vote against H.R. 513 if it includes the U.S. HOUSE OF REPRESENTATIVES, gressional campaign committee limits on party Pence proposal or any variation of it. Washington, DC, April 4, 2006. spending for Congressional candidates. This Another proposal may be made to repeal Hon. JAMES SENSENBRENNER, bill allows each party to accept transfers from section 441a(d) of the campaign finance laws, Chairman, Committee on the Judiciary, House a provision which imposes limits on spending other committees within the party structure of Representatives, Washington, DC. when spending for a candidate. This change by political parties in coordination with DEAR CHAIRMAN SENSENBRENNER: Thank their federal candidates. you for your recent letter regarding your will enable the National Republican Congres- We oppose repealing the limits on coordi- Committee’s jurisdictional interest in H.R. sional Committee to accept unlimited transfers nated party spending with candidates. 513, the 527 Reform Act of 2006, scheduled for from the Republican National Committee for Under Supreme Court rulings, a political floor consideration this week. use in spending on any Congressional cam- party can spend an unlimited amount of hard I acknowledge your committee’s jurisdic- money in a federal candidate’s race, inde- paign. It is not a coincidence that Republicans tional interest in Section 5 of the bill, and outspend Democrats 5:1. pendently of that candidate, even if the agree that your decision to forego further ac- party has reached its limit on coordinated We have just seen the former Republican tion on it will not prejudice the Committee Majority Leader resign from Congress in dis- spending with that candidate in the race. on the Judiciary with respect to its jurisdic- Thus, repeal of the limits on coordinated grace. Another prominent member of the ma- tional prerogatives on this or similar legisla- spending will not change the total amount of tion. I will include a copy of your letter and jority party sits in jail for accepting tawdry money a political party can spend in a given this response in the Congressional Record bribes while selling his office. Prominent ad- race, but rather will change the amount that when the legislation is considered by the ministration officials have been arrested or are can be spent in coordination with the party’s House. under indictment. This is not a time to be play- candidate in the race. Thank you again for your assistance. Supporters of repealing the limit argue ing parliamentary games with the ethical proc- Sincerely, that this is a more effective way for parties ess. VERNON J. EHLERS, to assist their candidates. We oppose repeal And that is why I voted against this shame- Chairman. of the coordinated spending limit, however, fully amended version of H.R. 513 today. since it provides a constraint on parties serv- Mr. EHLERS. Mr. Speaker, I yield Mr. CASTLE. Mr. Speaker, I am proud to ing as a vehicle for individual donors to back the balance of my time. join my colleagues in strong support of H.R.

VerDate Aug 31 2005 03:42 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00073 Fmt 4634 Sfmt 9920 E:\CR\FM\A05AP7.075 H05APPT1 ccoleman on PROD1PC71 with HOUSE H1528 CONGRESSIONAL RECORD — HOUSE April 5, 2006 513, the 527 Reform Act of 2006. H.R. 513 hear from their constituents at election time. A field of public discourse. This is exactly the takes an important step in closing a ‘‘soft- group of citizens speaking loudly through the wrong outcome. money’’ loophole by requiring 527 groups to collective action of a 527 is a democracy be- If we want to tighten issue advocacy, we comply with the same federal campaign laws having as it should. should do so by enforcing the already existing that political parties and political action com- Organizations that attain 527 status under requirement that 527s remain truly inde- mittees must follow. the Internal Revenue Code are dedicated to pendent of political candidates and parties. In fact, the Federal Election Commission specific ideals and legislative objectives that Truly independent 527 organizations expand should have already done this. A federal dis- they believe are best for America. Some 527s the political debate, increase the public’s op- trict judge in Washington recently called for want more investment in education. Some portunity to hold elected officials accountable, action, ruling that the Federal Election Com- want lower taxes. Some support the right to and increase participation in the political proc- mission had ‘‘failed to present a reasoned ex- choose. Others oppose it. None of these orga- ess by ordinary Americans. planation’’ for not requiring 527 groups to reg- nizations, however, may be dedicated to a The SPEAKER pro tempore (Mr. ister as political committees. specific person or party. They may not advo- LAHOOD). All time for debate has ex- H.R. 513 will close this FEC-created loop- cate for or against a specific candidate, nor pired. hole that has allowed 527 groups, of both par- coordinate their activities with a candidate’s Pursuant to House Resolution 755, ties, to spend hundreds of millions of dollars in campaign. By definition, their involvement is the previous question is ordered on the unlimited soft money to influence presidential the stuff of political discourse. bill, as amended. and congressional elections without complying As a strong, early, and vocal supporter of The question is on the engrossment with campaign finance laws. the Bipartisan Campaign Finance Reform Act, and third reading of the bill. During the last election cycle, 527 groups I agree with the ban on raising and spending The bill was ordered to be engrossed raised $426 million. Likewise, much of the soft unregulated ‘‘soft’’ money by candidates and and read a third time, and was read the money came from a relatively small number of political parties. BCRA helps prevent elected third time. very wealthy individuals. According to cam- Members of Congress from developing a ‘‘sec- The SPEAKER pro tempore. The paign finance scholar Anthony Corrado, just ond constituency,’’ one that is different from question is on the passage of the bill. 25 individuals accounted for $146 million their actual constituency, which is the people The question was taken; and the raised by Democratic and Republican 527 they represent. However, BCRA did not intend Speaker pro tempore announced that groups that spent money to influence the 2004 to prohibit robust debate of political ideals, val- the ayes appeared to have it. federal elections. And, we are already seeing ues, and proposals for the betterment of our Ms. MILLENDER-MCDONALD. Mr. an increase in the rate at which 527s are rais- country. Doing so not only stifles political dis- Speaker, I object to the vote on the ing money this election cycle. course, it runs afoul of the First Amendment ground that a quorum is not present If the primary role of 527 groups is to influ- right to speak freely. In February of 2004, I and make the point of order that a ence federal elections, which it clearly is, they joined several of my colleagues in writing to quorum is not present. must play by the same set of rules that apply the Federal Elections Commission (FEC) stat- The SPEAKER pro tempore. Evi- to other political groups whose purpose is to ing my view that while we need to break the dently a quorum is not present. spend money to influence federal elections. link between unregulated contributions and The Sergeant at Arms will notify ab- There should be no exception. federal officeholders, we need to protect, pre- sent Members. At a time when the public is calling for serve, and even increase political involvement Pursuant to clause 8 of rule XX, this transparency and accountability, no longer can by ordinary citizens and independent associa- 15-minute vote on the question of pas- we tolerate a loophole that allows this type of tions. sage will be followed by 5-minute votes money from the wealthy few to unfairly influ- If this bill passes, it’s important to note who on House Resolution 692 and H.R. 3127. ence the political process. would be affected. According to the Institute The vote was taken by electronic de- If you voted for the Shays-Meehan/McCain- for Politics, Democracy and the Internet, 527 vice, and there were—yeas 218, nays Feingold Bipartisan Campaign Finance Reform fundraising and spending increased fourfold 209, not voting 6, as follows: bill in 2002—and 240 of us did—it would be between 2000 and 2004, while at the same [Roll No. 88] wholly out of step to not support H.R. 513. time, voter turnout reached an unprecedented I urge all my colleagues to vote in favor of high of almost 126 million voters in 2004—15 YEAS—218 H.R. 513. million more than in 2000. This was largely a Aderholt Coble Gutknecht Akin Cole (OK) Hall Mr. HOLT. Mr. Speaker, I would like to com- direct result of voter registration, education, Alexander Conaway Harris mend the efforts of my colleagues CHRIS and mobilization activities organized by 527s. Bachus Crenshaw Hart SHAYS and MARTY MEEHAN to strengthen elec- Most importantly, although it has been widely Baker Cubin Hastert tions in this country. However, I oppose the reported that certain wealthy individuals made Baldwin Culberson Hastings (WA) Barrett (SC) Davis (KY) Hayes measure they offer today because it seeks to multi-million dollar contributions to 527s, the Barton (TX) Davis, Jo Ann Hayworth address the wrong problem, and as a result, vast majority of 527 receipts were from indi- Bass Davis, Tom Hefley this proposal squelches participation by indi- vidual donations of under $200. The liberal Beauprez Deal (GA) Herger Biggert DeLay Hobson viduals and small donors in the electoral proc- 527 organization ‘‘America Coming Together,’’ Bilirakis Dent Hostettler ess. For that reason, and because there are for example, raised $80 million in 2004, 80 Bishop (UT) Diaz-Balart, L. Hulshof First Amendment implications as well, I will percent of which was from donations of less Blackburn Diaz-Balart, M. Hunter vote against this measure. than $200. Similarly, the conservative 527 or- Blunt Doolittle Hyde Boehlert Drake Inglis (SC) On my first day as a Member of Congress ganization ‘‘Progress for America’’ raised $45 Boehner Dreier Issa in 1999, I joined the fight for campaign finance million in 2004, 85 percent of which was from Bonilla Duncan Jenkins reform. I did so because we needed to curtail donations of less than $200. Bonner Ehlers Jindal These statistics are in stark contrast to Bono Emerson Johnson (CT) the influence of money in politics. The Bipar- Boozman English (PA) Johnson (IL) tisan Campaign Finance Reform Act (BCRA) much of the debate on this issue. Supporters Boren Everett Johnson, Sam was critical to that effort because it eliminated of the proposal before us today have pointed Boustany Feeney Keller corporate money and capped the size of do- to wealthy individuals who contributed large Bradley (NH) Ferguson Kelly Brady (TX) Fitzpatrick (PA) Kennedy (MN) nations that could be made to political can- sums to 527s as evidence that 527s should be Brown (SC) Foley King (NY) didates and political parties. These steps curtailed. My question is this: Even if this bill Brown-Waite, Forbes Kingston made it less likely that elected officials will be passes, what is to stop wealthy individuals Ginny Fortenberry Kirk from simply paying for the same television Burgess Foxx Kline beholden to large donors instead of to their Burton (IN) Frelinghuysen Knollenberg constituents. ads, mail pieces, and organizational efforts on Buyer Gallegly Kolbe The critical distinction between BCRA and their own, without 527s? If this bill passes, Calvert Gerlach Kuhl (NY) the proposal before us today is that BCRA lim- these same individuals will simply spend their Camp (MI) Gibbons LaHood Campbell (CA) Gilchrest Latham ited the amount of money that could go toward money on their own. It is small donors—who, Cannon Gillmor LaTourette political candidates and parties. Today’s pro- as I said already, are the majority of donors to Cantor Gingrey Leach posal limits donations to organizations that ad- 527s—who will be denied the benefit of collec- Capito Goode Lewis (CA) vocate for a policy or a point of view. That is tive action. Squelching 527s will not curb the Carter Goodlatte Lewis (KY) Case Granger Linder a radically different approach. Let’s remember involvement of wealthy individuals, it will sim- Castle Graves LoBiondo something: Elected officials are supposed to ply make them towering figures on the playing Chabot Green (WI) Lucas

VerDate Aug 31 2005 03:42 Apr 06, 2006 Jkt 049060 PO 00000 Frm 00074 Fmt 4634 Sfmt 0634 E:\CR\FM\A05AP7.082 H05APPT1 ccoleman on PROD1PC71 with HOUSE April 5, 2006 CONGRESSIONAL RECORD — HOUSE H1529 Lungren, Daniel Platts Smith (NJ) Stupak Udall (NM) Watt DeGette Jones (NC) Osborne E. Poe Smith (TX) Tauscher Van Hollen Waxman Delahunt Jones (OH) Otter Maloney Pombo Sodrel Thompson (CA) Vela´ zquez Weiner DeLauro Kanjorski Owens Manzullo Porter Souder Thompson (MS) Visclosky Westmoreland DeLay Kaptur Oxley Marchant Price (GA) Stearns Tierney Wasserman Wexler Dent Keller Pallone McCaul (TX) Pryce (OH) Sullivan Towns Schultz Woolsey Diaz-Balart, M. Kelly Pascrell McCotter Putnam Sweeney Udall (CO) Waters Wynn Dicks Kennedy (MN) Pastor McCrery Radanovich Dingell Kennedy (RI) Paul Tancredo NOT VOTING—6 McHenry Ramstad Taylor (MS) Doggett Kildee Payne McHugh Regula Taylor (NC) Evans Ros-Lehtinen Tanner Doolittle Kilpatrick (MI) Pearce McKeon Rehberg Hoekstra Schakowsky Watson Terry Doyle Kind Pelosi Meehan Reichert Drake King (IA) Pence Thomas Mica Renzi Dreier King (NY) Peterson (MN) Thornberry b 1829 Miller (FL) Reynolds Duncan Kingston Peterson (PA) Tiahrt Miller (MI) Rogers (AL) Mr. WATT changed his vote from Edwards Kirk Petri Miller, Gary Rogers (KY) Tiberi ‘‘yea’’ to ‘‘nay.’’ Ehlers Kline Pickering Turner Moran (KS) Rogers (MI) Messrs. FORBES, OSBORNE, Emanuel Knollenberg Pitts Murphy Rohrabacher Upton Emerson Kolbe Platts Musgrave Royce Walden (OR) WELDON of Florida, MANZULLO, and Engel Kucinich Poe Myrick Ryan (WI) Walsh POE changed their vote from ‘‘nay’’ to English (PA) Kuhl (NY) Pombo Ney Ryun (KS) Wamp ‘‘yea.’’ Eshoo LaHood Pomeroy Northup Saxton Weldon (FL) So the bill was passed. Etheridge Langevin Porter Norwood Schmidt Weldon (PA) Everett Lantos Price (GA) Nunes Schwarz (MI) Weller The result of the vote was announced Farr Larsen (WA) Price (NC) Nussle Sensenbrenner Whitfield as above recorded. Fattah Larson (CT) Pryce (OH) Osborne Sessions Wicker A motion to reconsider was laid on Feeney Latham Putnam Otter Shaw Wilson (NM) Ferguson LaTourette Radanovich Oxley the table. Shays Wilson (SC) Filner Leach Rahall Pearce Sherwood Wolf Fitzpatrick (PA) Lee Ramstad Peterson (PA) Shimkus f Wu Flake Levin Rangel Petri Shuster Foley Lewis (CA) Regula Pickering Simmons Young (AK) COMMENDING THE PEOPLE OF Young (FL) Forbes Lewis (GA) Rehberg Pitts Simpson THE REPUBLIC OF THE MAR- Ford Lewis (KY) Reichert Fortenberry Linder Renzi NAYS—209 SHALL ISLANDS FOR THE CON- TRIBUTIONS AND SACRIFICES Fossella Lipinski Reyes Abercrombie Ford McMorris Foxx LoBiondo Reynolds Ackerman Fossella McNulty THEY MADE TO THE UNITED Frank (MA) Lofgren, Zoe Rogers (AL) Allen Frank (MA) Meek (FL) STATES NUCLEAR TESTING PRO- Franks (AZ) Lowey Rogers (KY) Andrews Franks (AZ) Meeks (NY) GRAM IN THE MARSHALL IS- Frelinghuysen Lucas Rogers (MI) Baca Garrett (NJ) Melancon LANDS Gallegly Lungren, Daniel Rohrabacher Baird Gohmert Michaud Garrett (NJ) E. Ross Barrow Gonzalez Millender- The SPEAKER pro tempore (Mr. Gerlach Lynch Rothman Gibbons Mack Roybal-Allard Bartlett (MD) Gordon McDonald DANIEL E. LUNGREN of California). The Bean Green, Al Miller (NC) Gilchrest Maloney Royce Becerra Green, Gene Miller, George unfinished business is the question of Gillmor Manzullo Ruppersberger Berkley Grijalva Mollohan suspending the rules and agreeing to Gingrey Marchant Rush Berman Gutierrez Moore (KS) the resolution, H. Res. 692. Gohmert Markey Ryan (OH) Berry Harman Moore (WI) Gonzalez Marshall Ryan (WI) Bishop (GA) Hastings (FL) Moran (VA) The Clerk read the title of the resolu- Goode Matheson Ryun (KS) Bishop (NY) Hensarling Murtha tion. Goodlatte Matsui Salazar Blumenauer Herseth Nadler The SPEAKER pro tempore. The Gordon McCarthy Sa´ nchez, Linda Boswell Higgins Napolitano question is on the motion offered by Granger McCaul (TX) T. Boucher Hinchey Neal (MA) Graves McCollum (MN) Sanchez, Loretta Boyd Hinojosa Neugebauer the gentleman from Iowa (Mr. LEACH) Green (WI) McCotter Sanders Brady (PA) Holden Oberstar that the House suspend the rules and Green, Al McCrery Saxton Brown (OH) Holt Obey agree to the resolution, H. Res. 692, on Green, Gene McDermott Schiff Brown, Corrine Honda Olver Grijalva McGovern Schmidt Butterfield Hooley Ortiz which the yeas and nays are ordered. Gutierrez McHenry Schwartz (PA) Capps Hoyer Owens This will be a 5-minute vote. Gutknecht McHugh Schwarz (MI) Capuano Inslee Pallone The vote was taken by electronic de- Hall McIntyre Scott (GA) Cardin Israel Pascrell vice, and there were—yeas 424, nays 0, Harman McKeon Scott (VA) Cardoza Istook Pastor Harris McKinney Sensenbrenner Carnahan Jackson (IL) Paul not voting 8, as follows: Hart McMorris Serrano Carson Jackson-Lee Payne [Roll No. 89] Hastings (FL) McNulty Sessions Chandler (TX) Pelosi Hastings (WA) Meehan Shadegg Chocola Jefferson Pence YEAS—424 Hayes Meek (FL) Shaw Clay Johnson, E. B. Peterson (MN) Abercrombie Bonilla Carter Hayworth Meeks (NY) Shays Cleaver Jones (NC) Pomeroy Ackerman Bonner Case Hefley Melancon Sherman Clyburn Jones (OH) Price (NC) Aderholt Bono Castle Hensarling Mica Sherwood Conyers Kanjorski Rahall Akin Boozman Chabot Herger Michaud Shimkus Cooper Kaptur Rangel Alexander Boren Chandler Herseth Millender- Shuster Costa Kennedy (RI) Reyes Allen Boswell Chocola Higgins McDonald Simmons Costello Kildee Ross Andrews Boucher Clay Hinchey Miller (FL) Simpson Cramer Kilpatrick (MI) Rothman Baca Boustany Cleaver Hinojosa Miller (MI) Skelton Crowley Kind Roybal-Allard Bachus Boyd Clyburn Hobson Miller (NC) Slaughter Cuellar King (IA) Ruppersberger Baird Bradley (NH) Coble Holden Miller, Gary Smith (NJ) Cummings Kucinich Rush Baker Brady (PA) Cole (OK) Holt Miller, George Smith (TX) Davis (AL) Langevin Ryan (OH) Baldwin Brady (TX) Conaway Honda Mollohan Smith (WA) Davis (CA) Lantos Sabo Barrett (SC) Brown (OH) Conyers Hooley Moore (KS) Snyder Davis (FL) Larsen (WA) Salazar Barrow Brown (SC) Cooper Hostettler Moore (WI) Sodrel Davis (IL) Larson (CT) Sa´ nchez, Linda Bartlett (MD) Brown, Corrine Costa Hoyer Moran (KS) Solis Davis (TN) Lee T. Barton (TX) Brown-Waite, Costello Hulshof Moran (VA) Souder DeFazio Levin Sanchez, Loretta Bass Ginny Cramer Hunter Murphy Spratt DeGette Lewis (GA) Sanders Bean Burgess Crenshaw Hyde Murtha Stark Delahunt Lipinski Schiff Beauprez Burton (IN) Crowley Inglis (SC) Musgrave Stearns DeLauro Lofgren, Zoe Schwartz (PA) Becerra Butterfield Cubin Inslee Myrick Strickland Dicks Lowey Scott (GA) Berkley Buyer Cuellar Israel Nadler Stupak Dingell Lynch Scott (VA) Berman Calvert Culberson Issa Napolitano Sullivan Doggett Mack Serrano Berry Camp (MI) Cummings Istook Neal (MA) Sweeney Doyle Markey Shadegg Biggert Campbell (CA) Davis (AL) Jackson (IL) Neugebauer Tancredo Edwards Marshall Sherman Bilirakis Cannon Davis (CA) Jackson-Lee Ney Tauscher Emanuel Matheson Skelton Bishop (GA) Cantor Davis (FL) (TX) Northup Taylor (MS) Engel Matsui Slaughter Bishop (NY) Capito Davis (IL) Jefferson Norwood Taylor (NC) Eshoo McCarthy Smith (WA) Bishop (UT) Capps Davis (KY) Jenkins Nunes Terry Etheridge McCollum (MN) Snyder Blackburn Capuano Davis (TN) Jindal Nussle Thomas Farr McDermott Solis Blumenauer Cardin Davis, Jo Ann Johnson (CT) Oberstar Thompson (CA) Fattah McGovern Spratt Blunt Cardoza Davis, Tom Johnson (IL) Obey Thompson (MS) Filner McIntyre Stark Boehlert Carnahan Deal (GA) Johnson, E. B. Olver Thornberry Flake McKinney Strickland Boehner Carson DeFazio Johnson, Sam Ortiz Tiahrt

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