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FEC staff proposes regulation of 527's

AP reports:

Federal election lawyers have concluded tax-exempt political groups cannot spend donations from businesses, unions and people who write big checks to promote federal candidates.

That recommendation, which the Federal Election Commission (news - web sites) is expected to consider next week, threatens a strategy Democrats hoped would keep them competitive with Republicans.

At issue is how the new campaign finance law affects the plans of partisan groups that want to defeat or re-elect President Bush (news - web sites). The law broadly bans the use of soft money corporate, union and unlimited contributions for federal election activity.

The proposed advisory opinion is not on the FEC website yet.

Bob Bauer has a short blurb and promises a longer analysis at his More Soft Money Hard Law website.