The Bipartisan Campaign Reform Act of 2002, commonly referred to as “BCRA” or the “McCain-Feingold Bill,” is a federal law that attempted to regulate the financing of political campaigns for federal office. It was signed into law by President George W. Bush on March 27, 2002. Companies and other organizations are now prohibited from using corporate treasury funds to finance certain types of advertisements related to federal elections and candidates. They are also prohibited from making contributions to candidates, party committees, and political action committees (PACs).
This law added several important restrictions on the campaign activities of corporations and unions. It prohibited both corporate and labor union contributions to federal election campaigns. It also outlawed “soft money,” or donations to political parties that were not subject to the same limits as contributions to individual campaigns. The law required corporations and unions to disclose details of “electioneering communications” they sponsor, to document their spending, and to keep records of donor disclosure information for up to four years.
The BCRA also set limits on “coordinated” expenditures, meaning communication made in cooperation with a candidate or their campaign, and the amount that individuals, organizations, and political action committees may contribute to candidates. Finally, the BCRA restricted when and how political advertisements may be shown, such as prohibiting certain ads that are paid for by corporations in the days and weeks leading up to an election.
Implications for Business Professionals
The Bipartisan Campaign Reform Act of 2002 has important implications for business professionals. Companies are prohibited from using corporate funds to finance certain types of advertisements related to federal elections and candidates, and must comply with rules regarding treasury and PAC donations. Businesses must also disclose details of electioneering communications they sponsor, document their spending, and keep records of donor disclosure information for up to four years.
Furthermore, organizations and PACs may be subject to restrictions on coordinated expenditures, meaning communication in cooperation with a candidate or their campaign. There may also be limits on the amount of money that it is legal to contribute to a candidate’s campaign. Businesses must be aware of these restrictions when they are launching political campaigns or fundraising—failing to do so may result in serious penalty.
As business professionals, it is important to familiarize yourself with the Bipartisan Campaign Reform Act and make sure your company is complying with the rules and restrictions. This will help you avoid costly penalties and make sure your political campaigns stay out of trouble.