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For immediate release,
July 7, 2006
Contact: Bryan Warner, N.C. Center for Voter Education,
919-839-1200

N.C. Senate Passes New Rules for 527 Political Organizations

RALEIGH – The North Carolina Senate voted 36-6 Friday to enact new regulations on the activities of political organizations known as 527 groups, as they aim to influence the outcome of the state’s elections.

House Bill 1847 was amended by the N.C. Senate to make several changes in the laws governing electioneering by 527 groups.

Most notably, the measure would require a 527 group incurring an expense for producing and airing electioneering communications in excess of $10,000 to file disclosure statements within 24 hours. The disclosure would reveal such information as the amount of the group’s expenses, the election they are influencing, and the names, addresses, and occupations of contributors giving more than $1,000 to the 527.

Current law allows 527s to hide contributors’ occupations and to delay reporting expenses, unlike political action committees (PACs) and candidates that face much tougher disclosure laws.

Named after the IRS code for their special tax status, 527 organizations have played an increasingly influential role in state and national elections, most recently taking part in the defeat of three Republican legislators in the May primary.

Many Americans first learned of 527 groups during the 2004 presidential election when organizations such as Swift Boat Veterans for Truth and America Coming Together spent millions of dollars attacking Senator John Kerry and President George W. Bush, respectively.

Supporters of the legislation say it is designed to create more public accountability for 527 groups that try to influence election outcomes, but don’t follow the same rules governing candidates and PACs.

“North Carolina voters are very concerned about a double standard,” said Chris Heagarty, executive director of the N.C. Center for Voter Education, referencing public opinion polling conducted after the May primary. “If a candidate has to put his or her name on every piece of campaign information, and if political action committees have to disclose their contributors, why should these special groups play by different rules when they have the same goal of influencing elections?”

House Bill 1847 returns to the state House of Representatives where legislators will decide whether to concur with the Senate’s proposal, or to meet in conference to work out a different version. Another House Bill, 1851, proposes even tougher standards for 527s, treating any electioneering activities exactly the same as those of a candidate or PAC.

“While the Senate proposal is a step in the right direction,” said Heagarty, “the bill pending in the House would go even further to help ensure the public accountability needed for fair elections, by treating all of these groups the same.”

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