a result, prior to the enactment of BCRA, federal law permitted
corporations and unions, as well as individuals who had
already made the maximum permissible contributions to
federal candidates, to contribute “non-federal money”– also
known as “soft money”– to political parties for activities
intended to influence state or local elections.
Shortly after Buckley was decided, questions arose
concerning the treatment of contributions intended to
influence both federal and state elections. Although a literal
reading of FECA’s definition of “contribution” would have
required such activities to be funded with hard money, the
FEC ruled that political parties could fund mixed-purpose
activities – including get-out-the-vote drives and generic
party advertising – in part with soft money. In 1995 the
FEC concluded that the parties could also use soft money to
defray the costs of “legislative advocacy
media
advertisements,” even if the ads mentioned the name of a
federal candidate, so long as they did not expressly advocate
the candidate’s election or defeat. FEC Advisory Op. 199525.
[Footnote 7:] ... In 1990 the FEC . . . promulgat[ed]
fixed allocation rates. 11 CFR § 106.5 (1991). The
regulations required the Republican National
Committee (RNC) and Democratic National
Committee (DNC) to pay for at least 60% of mixedpurpose activities (65% in presidential election
years) with funds from their federal accounts.
§ 106.5(b)(2). By contrast, the regulations required
state and local committees to allocate similar
expenditures based on the ratio of federal to nonfederal offices on the State’s ballot, § 106.5(d)(1),
which in practice meant that they could expend a
substantially greater proportion of soft money than
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