Feb 19, 2004 -- Press Release: FEC Begins Process of Requiring 527s to Play by Federal Rules

Trevor Potter, a former FEC commissioner and chairman, and president of the Campaign Legal Center, today issued this statement in response to the FEC's approval of an Advisory Opinion dealing with a political group named "Americans for a Better Country":

"The FEC took a step in the right direction today by making it clear that public communications by federal PACs which promote, support, attack or oppose federal candidates must be paid for with hard money. In particular, the Commission's recognition that the correct test after McConnell is whether these communications "promote, support, oppose or attack" a federal candidate -- rather than the old and narrower "express advocacy" test -- is an important step forward.

"However, this is only the first step in the FEC's review of activity to influence federal elections by 527 political organizations - including those which have not yet registered as federal PACs, but should have under the law. The Commission will have to address the requirements for registering as a federal PAC, and its allocation regulations for partisan voter drives, in the expedited rulemaking it will be conducting this spring.

"It is important that the FEC use this rulemaking to ensure that the door to unlimited use of soft money for federal elections by partisan 527s is firmly closed."