1. CAMPAIGN FINANCE AND SPENDING

2.  1974 – Federal Election Campaign Act is passed to reform campaign finances.  Two main goals: (1) Tightening reporting requirements (2) Limiting expenditures  Few other effects  Created the FEC – 6 member bipartisan agency created to enforce campaign finance laws.  Created Presidential Election Campaign Fund - $3 voluntary tax donation  Presidential Public Financing for Primaries – candidates accept federal funds to run their Primary campaigns.  Full public funding of general elections up to a limited amount  Candidates must disclose all spending  Limits individual contributions to political campaigns.

3. SOFT MONEY?  Soft Money:  Campaign contributions that are for generic party building, or advertisements at the grass roots level.  Grass roots?  Meaning the local level.  At one time, “soft money” contributions were unlimited.  2002 McCain-Feingold Act was passed which effectively banned the use of soft money in political campaigns

4. LOOP HOLE!!  Due to tax codes, Wealthy individuals found a way around the McCain-Feingold Act.  527 (c) Group: Independent groups that are not subject to contribution restrictions as long as they do not seek the election of particular candidates.  Cannot say “Vote for Joe Smith”  Contribution records must be given to the IRS  MoveOn.org  501 (c) Group: Exempt: groups that are exempt from reporting their contributions, can receive and give unlimited contributions. Can only spend half of their funds for politics  Nonprofit organizations  Examples: American Future Fund, American Justice Partnership

5. POLITICAL ACTION COMMITTEES  https://www.youtube.com/watch?v=7PCuy8_M96M https://www.youtube.com/watch?v=7PCuy8_M96M  Political Action Committee (PAC): Funding vehicles created by 1974 campaign finance reforms.  Corporations, Unions or other organizations can create these.  Identified as a 527(c) Group  What are the effects of PACs?  Influencing candidates through campaign contributions  http://en.wikipedia.org/wiki/List_of_political_action_commit tees http://en.wikipedia.org/wiki/List_of_political_action_commit tees

6. IMPACTS OF PACS  In 2008 4,611 PACs were created and contributed a total of $412.8 million to House and Senate candidates.  Examples of effects:  FTC made it mandatory for dealerships to post known mechanical defects on the window stickers of cars.  The National Association of Automobile Dealers became the largest donor to congressional candidates  216 Representatives sponsored a bill to get rid of this mandate.

7. DISCUSSION  How do the PACs corrupt the Democratic process?  What has created the politicians needing PACs to be competitive?  Can the average citizen effect the course of a campaign through donations? Why or why not?  How do PACs effect legislation drafting?

8. COLBERT SLIDE