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.