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On March 27, 2002, President Bush signed into law the
Bipartisan Campaign Reform Act of 2002 (BCRA).
The BCRA contains many substantial and technical changes to the federal campaign
finance law. This brochure is not intended to be
exhaustive in its explanation of the new law; instead, it offers a brief
introduction to the BCRA by answering some commonly asked questions. For
detailed information on the provisions of the BCRA, contact the Federal Election
Commission at 800/424-9530 or visit the FEC’s Web site at
www.fec.gov.
In general terms, the major provisions of the BCRA:
- Ban national party committees and federal candidates and
officeholders from raising or spending nonfederal funds, i.e., "soft money;"
- Limit and require disclosure of electioneering
communications -- so-called “issue ads;”
- Increase certain contribution limits and index them to
inflation;
- Prohibit contributions from minors to candidates and
party committees;
- Strengthen the application of the foreign national ban;
- Modify the definition of “coordination;”
- Increase individual contribution limits and coordinated
party expenditure limits for candidates facing an opponent who makes large
expenditures from personal funds;
- Require disclaimers on all public communications by
political committees; and
- Codify the FEC’s rules on use of campaign funds, and
permit campaigns to pay candidates a salary.
Many of these changes (and others) are described in greater
detail below and in other FEC publications.
The new limits are shown in the chart below:
|
|
To a
candidate or candidate committee per election* |
To a
national party committee per calendar year |
To a
state party committee per calendar year |
To any
other political committee per calendar year |
Biennial
Limit** |
|
Individual may give: |
$2,000 |
$25,000 |
$10,000 |
$5,000 |
$95,000
|
|
Qualified multicandidate committee*** may give: |
$5,000 |
$15,000 |
$5,000 |
$5,000 |
N/A |
|
Non-qualified non-multicandidate committee may give: |
$2,000 |
$25,000 |
$10,000 |
$5,000 |
N/A |
*Note
that contribution limits may be modified in the case of a candidate whose
opponent makes expenditures from his or her personal funds above a certain
threshold. See 2 U.S.C. 441a(i) and 441a-1.
**Within the $95,000 overall limit, no more than $37,500 may go to candidates
and no more than $57,500 may go to any other committee. Of that $57,500, no more
than $37,500 may be given to committees that are not national party committees.
***A
qualified multicandidate committee is a political committee with more than 50
contributors that has been registered for at least six months and, with the
exception of state party committees, has made contributions to five or more
candidates for federal office.
On its face, this contribution exceeds the donor’s $2,000 limit for the primary
election. However, new FEC regulations allow campaign committees to resolve this
problem by automatically redesignating the excessive portion to the general
election if the contribution:
- Is made before the candidate's primary election;
- Is not designated in writing for a particular election;
- Would be excessive if treated as a primary
election contribution; and
- As redesignated, does not cause the contributor
to exceed any other contribution limit. 11 CFR 110.1(b)(5)(ii)(B)(1)-(4).
While advance authorization is no longer necessary under the above conditions,
the campaign committee must notify the contributor of the redesignation by paper
mail, e-mail, fax or other written method within 60 days of the treasurer's
receipt of the contribution. Also, at the time of notification, the contributor
must be given the opportunity to request a refund. For more details, please
consult the new rules for campaigns accepting contributions. 11 CFR 110.1(b)(5).
If your committee receives a single-signature check that has more than one name
printed on it and that exceeds the individual donor’s limit, FEC rules now allow
you to apply the permissible portion to the signer of the check and to
reattribute the excessive portion to the other individual whose name appears on
the check. Note, however, that the reattribution must not cause either
contributor to exceed the contribution limits. Also, your committee must notify
the contributors of the reattribution by paper mail, e-mail, fax or other
written method within 60 days of your committee treasurer's receipt of the
check, and must offer the option of a refund. For more information, please
consult the new rules for accepting contributions. 11 CFR 110.1(k)(3)(ii).
The former $25,000 overall annual contribution limit for individuals has been
replaced by a new biennial limit of $95,000, which spans the two-year period
from January 1 of an odd-numbered year to December 31 of the next even-numbered
year. Under the new limit, individuals may contribute up to $37,500 to
candidate committees and up to $57,500 to any other committees. The $57,500
portion of the limit contains a further restriction, in that no more than
$37,500 of this amount may be given to committees that are not national party
committees. For more details, please consult the new rules for making
contributions. 11 CFR 110.5.
Minors (i.e., children under age 18) can no longer make contributions to federal
candidates or their authorized committees, or make contributions or donations to
political party committees, even for use in state and local elections. They
may, however, still provide volunteer services to any federal candidate or
political committee. In addition, the BCRA does not prohibit minors from making
contributions to federal political action committees. For more details, please
consult
the new rules for making
contributions. 11 CFR 110.19.
The BCRA prohibits any person from knowingly soliciting, accepting or receiving
a contribution or a donation from a foreign national in connection with a
federal, state or local election, or made to a political party committee.
Foreign nationals continue to be prohibited from making contributions,
expenditures or donations and from taking part in any decisions about
contributions to candidates or committees, or about expenditures made in
support of or opposition to such candidates or committees. They also continue
to be prohibited from involvement in the management of any political committee. For more details, please consult
the new rules for making
contributions and the FEC’s
Foreign Nationals Brochure. 11 CFR 110.20.
Federal Election Activity
Under the BCRA, certain types of activities are classified as "federal election
activity" (FEA). As used in the statute and in 11 CFR Part 300, FEA includes
any of the following activities conducted by a state, district or local party
committee, or an association of state or local candidates/officials:
- Voter registration activity within 120 days before a
regularly-scheduled federal election;
- Voter identification, generic campaign activities and
get-out-the-vote activities that are conducted in connection with an election
in which one or more candidates for federal office appear on the ballot
(regardless of whether state or local candidates also appear on the ballot).
- A public communication that refers to a
clearly-identified federal candidate and that promotes, supports, attacks or
opposes any federal candidate; and
- Services provided by an employee of a state, district or
local party committee who spends more than 25 percent of his or her
compensated time during that month on activities in connection with a federal
election. 11 CFR 100.24(b).
The BCRA prohibits the use of nonfederal funds (often called “soft money”) to
pay for these activities, and requires that some FEA be financed only with
federal funds, although other types of FEA may be paid for with a mix of federal
funds and a new category of funds, called “Levin Funds” (see below).
Levin Funds
The BCRA created a new category of funds for state, district and local party
committees, called "Levin" funds that may be used to pay for certain federal
election activities. If state law permits, individuals, PACs, corporations and
labor unions may donate up to $10,000 per year in Levin funds to each state,
district and local party committee. The party committees must use federal or Levin funds to
raise Levin funds and may spend only those Levin funds that they raise
themselves. The funds may only be used for certain expenses related to the
first two categories of federal election activity, listed above (i.e., voter
registration and voter identification/generic campaign/get-out-the-vote
activities). The parties may not use Levin funds to finance public
communications or to pay the salaries of employees who spend more than 25
percent of their compensated time on federal elections. National party
committees may not raise or spend Levin funds. For more information, consult
the FEC’s detailed regulations for the raising and spending of Levin funds. 11
CFR 300.32(b) and (c).
In general, the BCRA does not affect the activities of
political action committees. Aside from the contribution limit increases for
non-multicandidate PACs and the new disclaimer requirements for public
communications, most regulations relating to PACs remain unchanged.
Yes. For instance, under new 11 CFR 300.62, federal
candidates and officeholders can only solicit, receive, direct, transfer, spend
or disburse funds in connection with a nonfederal election in amounts and from
sources that are consistent with both state law and the Act's limits and
prohibitions. There are certain exceptions, however, some of which are
described below.
State or Local Party Fundraiser
A candidate may attend, speak or be a featured guest at a
fundraising event for a state or local party committee, including an event at
which Levin funds or nonfederal funds are raised. At such events the candidate
may speak without restriction. Also, a state or local committee may advertise
(through pre-event invitation materials and other party communications) that the
candidate will appear at the event. 11 CFR 300.64.
State or Local Candidate Fundraiser
A federal candidate or officeholder may attend, speak or be
a featured guest at a state or local candidate fundraiser. When involved in such events, the candidate or officeholder
may only ask for funds in amounts and from sources that are both consistent with
state law and not in violation of the Act’s limits and prohibitions. The
candidate or officeholder must provide an oral disclaimer or written notice at
the event indicating that he or she is only soliciting federally permissible
funds. The Commission has approved the following safe harbor disclaimer:
“I am asking for a donation of up to $2,000 per election
from an individual’s own funds [or up to $5,000 per election from a
multicandidate political committee or a political party committee]. I am not
asking for funds from corporations, labor unions or minors.”
Yes; however, the permissible amounts and sources that a
candidate may solicit differ depending on the extent to which the organization
engages in activities in connection with a federal election, including federal
election activity (FEA). The funds solicited by the candidate may not be used
to pay for any FEA other than voter registration, voter identification,
get-out-the-vote activity and generic campaign activity. 11 CFR 300.65.
The BCRA includes new provisions regarding certain broadcast, cable and
satellite communications, called "electioneering communications." As defined in
FEC regulations, electioneering communications refer to a clearly identified
candidate and are distributed to the relevant electorate within 60 days prior to
the general election or 30 days prior to a primary. Individuals or groups other
than FEC-registered political committees may make electioneering communications;
however, corporations (except qualified non-profit corporations) and labor
organizations are prohibited from making or funding electioneering communications.
There are special reporting requirements for electioneering communications
aggregating over $10,000. For more information, please consult the FEC's new
electioneering communication rules. 11 CFR 100.29 and 104.20.
Under the BCRA, all “public communications” by political committees must include
a clear and conspicuous disclaimer indicating who paid for the communication and
whether or not it was authorized by a candidate. Communications not authorized
by a candidate must include the contact information (street address, phone
number or world wide web address) of the person or committee responsible. FEC
regulations define “public communications” as any cable, satellite or broadcast
communication, newspaper, magazine, billboard, poster, mass mailing or phone
bank (more than 500 pieces/calls that contain the same basic communication
within 30-day period), or any other form of general public political
advertising. The new rules also provide specific standards that must be met for
a disclaimer to be considered clear and conspicuous.
In addition to these changes, candidates and committees are now required to
“stand by their ads.” Specifically, television and radio communications that are authorized by a candidate must feature the
voice (and image for TV) of the candidate identifying himself or herself and
stating that he or she has approved the communication. Similar rules apply to
unauthorized communications aired by others. For more information, please
consult the new disclaimer rules (11 CFR 110.11) and the brochure,
“Special
Notices on Communications and Solicitations,” available on the FEC website (www.fec.gov).
The BCRA imposes a number of new reporting requirements, and the Commission has
updated its electronic filing software and reporting forms to facilitate the
necessary disclosure. Both the new forms and
updated software are available on
the FEC web site.
Yes, if you are a House or Senate candidate or a political party committee. See
the chart below.
|
Type of Committee |
Does the
BCRA change my reporting schedule? |
If yes,
what has changed? |
|
House and Senate Candidate Committees |
YES |
Congressional campaign committees registered with the
FEC must file on a quarterly basis every year. These committees may no
longer file on a semiannual basis in non-election years. 11CFR 104.5(a). |
|
Presidential Candidate Committees |
NO |
|
|
National Party Committees |
YES |
Committees of national parties must file on a monthly
schedule. These committees may no longer change their filing frequency. 11
CFR 104.5(c)(4). |
|
State, Local and District Party Committees |
YES |
Any state, local and district party committees that
engage in reportable "federal
election activity" must file monthly. 11 CFR 300.36(c)(1). |
|
Political Action Committees |
NO |
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A constitutional challenge to the BCRA is currently pending.
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