Don't Shoot the Messenger: The FEC, 527 Groups, and the Scope of Administrative Authority
Abstract
Donât Shoot the Messenger: The FEC, 527 Groups, and the Scope of Administrative Authority ALLISON R. HAYWARD and BRADLEY A. SMITH T 2004 ELECTION was the first in the United States to be conducted under the campaign finance regime of McCain-Feingold, officially the âBipartisan Campaign Reform Act of 2002â (âBCRAâ).1 During the course of the election, BCRAâs sponsors and supporters repeatedly emphasized that the law was, in their view, working well and as intended.2 At the same time, they expressed alarm about the activities of various groups organized under Section 527 of the Internal Revenue Code and operating HE largely outside the Federal Election Commissionâs jurisdiction. These groups, dubbed â527sâ in the popular vernacular, have long existed on the political scene,3 but the new restrictions BCRA placed on the ability of state and local political parties to raise and spend non-federally regulated funds (sometimes called âsoft moneyâ) increased the importance and visibility of these non-party 527 organizations.4 Over the course of the 2004 campaign, these groups are estimated to have spent some Allison R. Hayward is a campaign finance attorney serving as Counsel to Federal Election Commission (FEC) member Bradley A. Smith. Bradley A. Smith is a Commissioner