Keeping Super PACs and Candidates From Getting Too Chummy (S. 1838)

What is S. 1838?

(Updated March 15, 2018)

This bill would come down heavy on coordination between political candidates and Super PACs (Super Political Action Committees).

Super PACs are political fundraising organizations that can accept donations of unlimited size from individuals and groups. They may not contribute directly to (or coordinate officially with) candidates’ campaigns, but can run shadow campaigns by independently advocating for or against candidates.

This legislation would alter language in the Federal Election Campaign Act of 1971 to more strictly define what constitutes “coordination” between Super PACs and candidates. This would help ensure that a Super PAC dedicated to a single candidate does not simply function as an (unlimited, less regulated) arm of that candidate’s campaign. Specifically, under this legislation, a Super PAC would be illegal if:

• It was created at the suggestion or encouragement of the candidate it supports;

• The candidate (or the candidate’s agents) fundraise for (or share fundraising lists with) the Super PAC;

• The Super PAC is established or directed by former advisers or consultants to the candidate, or by members of the candidate’s immediate family

• The Super PAC has retained the professional services of anyone who provided professional campaign services to the candidate in the past two years

This sort of collaboration between candidates and Super PACs is common, but usually overlooked by regulators. Super PACs are often run by friends of the candidate they support, are endorsed by the candidate's committee, or schedule the candidate as a "special guest" at fundraisers in his/her name. Those connections shouldn't be surprising though, these are groups of people who are willing to raise and put down a lot of money for a candidate — it makes sense that they would be close connections. 

The legislation would also prohibit Super PACs from using an “internal firewall” loophole to skirt coordination bans by setting up a separate “independent” division for expenditures. It would also eliminate a ban on political contributions from minors that the Supreme Court ruled unconstitutional in 2003.

Argument in favor

Democracy suffers and the needs of ordinary citizens are overlooked when Super PACS — which can receive unlimited contributions — act as an arm of a candidate's campaign.

Argument opposed

Political contributions are a form of free speech. Coordination is already banned between Super PACs and candidates, so this bill would just add duplicate unnecessary complications.

Impact

Super PACs, political candidates, the Federal Election Committee, and anyone living in the U.S.

Cost of S. 1838

A CBO cost estimate is unavailable.

Additional Info

In Depth: Super PACs are a relatively new type of organization. They were made possible by two 2010 Supreme Court decisions, and .

Before the emergence of Super PACs, political spending was primarily limited to:

• Individuals, who may give up to $2,700 to a political candidate in an election cycle. Individuals may also contribute limited amounts to national, local, and state party committees.

• Political Action Committees (PACs), which are are political fundraising groups that can contribute up to $5,000 directly to candidates, as well as make limited contributions to national parties and other PACs. PACs receive their funding from individuals (who may give up to $5,000 per PAC, per year), but not corporations or labor unions. PACs must register with the FEC and report contributions in and out. 

• Leadership PACs are special PACs formed by politicians to help fund other candidates' campaigns.

Unlike regular PACs, Super PACs may raise unlimited sums of money from individuals — as well as from corporations, unions, and associations — and spend unlimited sums to advocate for or against political candidates. 

As long as there is no official coordination with candidates, Super PACs can create ads, host events, and run side campaigns on behalf of candidates. Super PACs are required to report their donors to the Federal Election Commission. However, they can accept contributions from nonprofit organizations, who in turn, do not have to disclose their donors. In this way, so-called "dark money" can make its way from anonymous donors, to nonprofits, to Super PACs.

Of Note: Sponsoring Sen. Patrick Leahy said in a press release:

“The Stop Super PAC-Candidate Coordination Act today would end the sham practice of presidential candidates boldly and shamelessly exploiting our campaign finance laws by coordinating with allegedly independent super PACs… We have always remained steadfast in our belief that our democracy should not be for sale, and that the size of your bank account should not determine whether or not the government responds to your views or needs.”

Media:

• Sponsoring Sen. Patrick Leahy press release

• Think Progress

• Democracy 21

• League of Women Voters letter (pro)