[Congressional Record Volume 146, Number 85 (Thursday, June 29, 2000)]
[Extensions of Remarks]
[Page E1149]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1149]]
AMENDING INTERNAL REVENUE CODE TO REQUIRE 527 ORGANIZATIONS TO DISCLOSE 
                          POLITICAL ACTIVITIES

                                 ______
                                 

                               speech of

                         HON. MICHAEL N. CASTLE

                              of delaware

                    in the house of representatives

                         Tuesday, June 27, 2000

  Mr. CASTLE. Mr. Speaker, tonight the House of Representatives has the 
opportunity to ensure that meaningful campaign finance reform is passed 
in time for this year's election. H.R. 4762 is the campaign finance 
bill with the best chance to pass both Chambers and be signed into law 
that has reached the floor in years. Last week, when I testified before 
the Ways and Means Committee, I said that I would help lead the fight 
to pass legislation that would rein in the section 527 groups if the 
House could not pass more comprehensive disclosure legislation. I will 
do so tonight. In this case, we cannot afford to make the perfect the 
enemy of the good.
  Section 527 organizations, set up under section 527 of the Tax Code, 
are established to engage in political activities, which influence our 
political process by funding election-related communications without 
having to disclose their donors. H.R. 4762 is needed because current 
campaign laws are wholly unable to adequately regulate the torrent of 
political advertising by groups exploiting this loophole in both our 
tax and election laws. Huge sums of money are being spent to influence 
the election system. While spending by individuals has been protected 
by Supreme Court rulings and the problem of soft money continues 
because a lack of will by Congress to address it, we now have a 
troubling new trend in campaign finance spending by groups operating 
under unique designations in our tax code such as section 527.
  While I would have liked to cover more groups engaging in 
electioneering communications, I am pleased that we will have the 
opportunity to pass significant legislation that will tackle the 527 
stealth political organization problem. I worked very hard with my 
colleagues in both the House and Senate to develop broader legislation. 
I extend my thanks to Senators McCain, Snowe, Lieberman, and Feingold, 
and Representatives Houghton, Shays, Graham, Meehan, and Doggett for 
their efforts. We explored many possible alternatives, and I believe 
that we have laid the groundwork for further legislation in this area.
  Tonight we will vote on H.R. 4762, language taken from Senator John 
McCain's legislation, which has already passed the Senate. This 
legislation requires section 527 organizations, that have gross 
receipts of more than $25,000 dollars, to disclose their top donors. 
Whether or not we agree with the message of any advertisement campaign, 
I hope we can agree that voters have the right to know who is paying 
for any campaign-related ad and who is trying to influence their vote. 
Our Constitution protects every American's right to be heard. Yet 
today, more than ever, voters are faced with new-style political 
organizations, operating free from coverage by Federal election law, 
that are spending millions on campaign ads without having to disclose 
their donors. The 2000 general election cycle is fast approaching and 
section 527 political groups are expanding at a rapid pace and could be 
a dominant force in the 2000 election.
  I am convinced this bill will curb some of the most blatant abuses, 
and will allow the public to know who is supporting these groups that 
are now operating behind a veil of secrecy. I urge you to join me in 
supporting H.R. 4762 in an effort to restore integrity to our election 
process and return the election process to the American people. It is a 
real step forward, and we should take it.

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