'Soft Money' Reform Sponsors Criticize FEC

By Helen Dewar
Washington Post Staff Writer
June 14, 2002

Sponsors of recently passed campaign finance legislation said yesterday they fear the Federal Election Commission is writing rules that will undermine the law's central thrust, and vowed to try to overturn the regulations if it does so.

The FEC has put out and held hearings on draft proposals to carry out provisions restricting "soft money" donations to political parties. The commission is scheduled to formalize the rules later this month.

"We can't just stand by and let the very agency that created the soft money problem in the first place to start punching new loopholes in the law. . . before the ink is even dry on the president's signature," added Feingold.

From what they've gathered from commissioners' statements, the law's four chief sponsors said at a news conference they believe the FEC might approve regulations with loopholes that politicians, party officials and others can use to evade the law's soft-money restrictions. The centerpiece of the legislation -- sponsored by Sens. John McCain (R-Ariz.) and Russell Feingold (D-Wis.) and Reps. Christopher Shays (R-Conn.) and Martin T. Meehan (D-Mass.) -- is a ban on use by national political parties of unlimited, unregulated donations from corporations, unions and individuals.

Other provisions restrict use of soft money by state parties, raise limits on regulated "hard money" contributions to candidates and parties, and curb some electioneering ads by outside groups just before elections.
The FEC created the loophole that allowed soft money and the commission should not be permitted to create new ones to keep soft money flowing to political parties and candidates, said Shays.

"We can't just stand by and let the very agency that created the soft money problem in the first place to start punching new loopholes in the law . . . before the ink is even dry on the president's signature," added Feingold.

As an example, Feingold and others cited draft proposals that they said would define terms including "agent" and "solicit or direct" so broadly that parties and candidates could still raise and use soft money.

Unless the FEC comes up with satisfactory regulations, McCain said the laws' sponsors have several options, starting with use of the rarely invoked Congressional Review Act, under which Congress could vote to use expedited procedures to revoke rules imposed by federal regulatory agencies. Its only previous use was to repeal ergonomics rules early last year.

McCain said the group could also try to undo the regulations by amending other legislation as it goes through Congress or file suit in court.

"It will be very, very difficult, but we will not quit," McCain said, speaking of the process of trying to overturn regulations by legislative or legal action.

The four lawmakers have long been critics of the FEC, charging it has been lax in enforcing campaign laws. They are exploring legislation to revamp the commission, possibly replacing it with a single administrator with broader powers to enforce the law.

FEC spokesman Ian Stirton said the commission had no comment on the lawmakers' criticism.