FOR IMMEDIATE RELEASE
July 12, 2001
CONTACT: JOSEPH BELL
PHONE:860/886-0139
HOUSE COMMITTEE DENIES SIMMONS OPPORTUNITY TO OFFER AMENDMENT TO SHAYS-MEEHAN REFORM MEASURE
Amendment Would Have Closed Indian Tribe Loophole In Campaign Finance Laws
NORWICH – Today Congressman Rob Simmons, R-2nd District, expressed disappointment that the House Rules Committee denied his amendment to the Shays-Meehan campaign finance reform bill.
Simmons said, “My amendment would have clarified a bizarre Federal Elections Commission ruling and ensured that Indian tribes and individuals are treated equally as far as yearly aggregate donations are concerned.”
In May 2000 the FEC offered a questionable legal interpretation that reversed 22 years of standard interpretation. The FEC said that although a tribe is a “person” subject to individual limits on contributions to candidates, parties and political action committees, it is not subject to the current $25,000 limit on its annual total of contributions.
In other words, while the average donor is limited to giving 25, $1,000 hard dollar contributions to 25 candidates during an election cycle, a tribal government can use tribal funds to give unlimited “individual” donations of $1,000 each to an unlimited number of candidates. This loophole potentially could give tribal nations an enormous advantage over other donors.
Ed Zuckerman, editor of the non-partisan Political Finance and Lobby Reporter said the FEC ruling “enables an Indian tribe to become a political cash register that can gulp ‘soft money’ from any source and disgorge it as ‘hard money’ contributions or expenditures.”
Simmons said, “I agree with Mr. Zuckerman that it is possible that this political loophole could be exploited if campaign finance reform is enacted. My amendment is a good government measure that simply would have ensured that Indian tribes are limited to the aggregate amount set forth for individuals under current law. It would not have adversely impacted Indian tribes nor does it suggest there is any evidence of abuse. But this is a problem that could occur and therefore it is important that the House of Representatives address this issue.”
“It is disappointing that at a time when we are trying to enact meaningful campaign finance reform we refuse to close an obvious loophole that could be easily sealed,” Simmons said. “The public understands that money plays too large a role in our democratic process and that genuine campaign finance reform is needed. This amendment was a step in that direction and I hope this matter can be revisited.”
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