CHAPTER 18 , SECTION I I

The Rise of Political Action Committees

Political Action Committees are designed to provide much of the enormous amount of funding it takes to get elected

How PAC’s Began

1974 – Campaign finance laws reformed how much a person could donate to a campaign

Law prevented corporations and unions from making direct contributions to federal candidates

Law permitted political action committees to do so

Laws Governing PAC’s

Government set rules governing PAC’s FECA of 1971, and amendments in 1974, ‘76, & ‘79 Revenue Act of 1971

PAC’s must register with the government 6 months before an election

PAC’s must raise money from at least 50 contributors

PAC’s can contribute $5000 per election to a candidate, but are not limited in what they can spend in supporting the candidate without “working directly” with the candidate

PAC’s and the Groups They Serve

Affiliated PAC’s PAC’s tied to corporations, labor unions, trade groups,

or health organizations Make up about 70% of all PAC’s Raise funds through voluntary contributions

Non-connected PAC’s Groups interested in a particular cause Organized to participate in elections Very successful and outraise affiliated PAC’s

Strategies for Influence

Trading Support for Access IG’s promise campaign support for legislators who favor

their policies Making donations to campaigns can guarantee access to

politiciansInfluencing Elections

PAC’s support incumbents – some that have no opponent. WHY?

How Much Influence “We are the only human beings in the world who are

expected to take thousands of dollars from perfect strangers and not be affected by it.” – Barney Frank, US Rep.

Colbert Super PAC

Super PAC’s are different than traditional PAC’s in that they have NO spending limits placed on spending and have weak disclosure requirements Colbert Super PAC Ad #1 Colbert Super PAC Ad #2 Colbert Super PAC Website At the time that ABTT stopped

accepting donations thePAC held $1,023,121.24 in the bank.