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Specifically, H.R. 513 would amends the Federal Election Campaign Act of 1971 (FECA) to include in the definition of political committee any federal 527 organization. (Thus subjects such organizations to the requirements of the Act. A 527 organization, as defined by section 527 of the Internal Revenue Code, is an organization, not controlled by or involving a particular candidate for office, whose function is to influence or attempt to influence the selection, nomination, election, or appointment of any individual to any federal, state, or local public office or office in a political organization, or the election of presidential or vice-presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed.)

 

A Section 527 committee involved in both federal and state elections may collect some '"soft money" to pay for non-federal election activity -- funds from corporations, unions or wealthy individuals -- but at least 50% of these non-federal expenditures would have to be made from "hard money." All federal election expenditures must be made from hard money. Soft money contributions are limited to $25,000 per year; hard money contributions are limited to $5,000 per year.

 

One amendment to the bill eliminates the "coordinated party expenditure" limits under FECA. Expenditures by political parties on behalf of the parties' candidates had been limited to 2 cents per voting age population in the district. However, a court ruling -- Colorado Republican I -- determined that parties may also make unlimited "independent" expenditures on behalf of their candidates, thus significantly undermining the intent of the party spending limits. The amendment to H.R. 513 would repeal those spending limits.

 

Despite eliminating the coordinated party spending limits, Public Citizen still backs the legislation to cap unlimited soft money spending by Section 527 political organizations.