public policy process 1. policy issues 2. policy agenda 3. legislation 4. regulatory agencies 5....

Public Policy ProcessPublic Policy Process

1.1. Policy IssuesPolicy Issues

2.2. Policy AgendaPolicy Agenda

3.3. LegislationLegislation

4.4. Regulatory agenciesRegulatory agencies

5.5. Policy EvaluationPolicy Evaluation

Policy Issues:Policy Issues:Problems that exist in societyProblems that exist in society

SocialSocial EconomicEconomic PoliticalPolitical TechnologicalTechnological

Policy Agenda:Policy Agenda:Choosing which issues to focus onChoosing which issues to focus on

VisibilityVisibility Powerful stakeholdersPowerful stakeholders Important to reelectionImportant to reelection

LegislationLegislation::Addressing the AgendaAddressing the Agenda

Set parametersSet parameters Establish regulatory Establish regulatory

agenciesagencies Set timeframeSet timeframe

Regulatory Agencies:Regulatory Agencies:Implement PoliciesImplement Policies

Specific rulesSpecific rules PenaltiesPenalties JudgmentJudgment EnforcementEnforcement

Policy Evaluation:Policy Evaluation:Judicial Review of PoliciesJudicial Review of Policies

Interpret lawsInterpret laws Order complianceOrder compliance

Implications of the Policy Implications of the Policy Process ModelProcess Model

1.1. Business can bring influence at Business can bring influence at any point in the process.any point in the process.

2.2. The earlier the influence is in The earlier the influence is in the process, the greater impact the process, the greater impact and likelihood of success, and and likelihood of success, and the lower the costs will be.the lower the costs will be.

Factors Affecting Current Factors Affecting Current Business/Political RelationshipBusiness/Political Relationship

•Rise in Special Interest GroupsRise in Special Interest Groups

• Decline in VotingDecline in Voting•Diffusion of Power in GovernmentDiffusion of Power in Government

Reforms in CongressReforms in Congress The decline of party powerThe decline of party power Increased complexity in governmentIncreased complexity in government

Business involvement Business involvement in politicsin politics

LobbyingLobbying The electoral The electoral processprocess

Lobbying:Lobbying:Advocating a viewpoint to

government.

A A lobbyistlobbyist engages in persuasion engages in persuasion and gives two types of information:and gives two types of information:• technical information.technical information.• political information.political information.

Lobbyists are loosely regulated.Lobbyists are loosely regulated. A key issue in lobbying is the A key issue in lobbying is the

imbalance of access and power.imbalance of access and power.

.

The Abramoff ScandalsOpening Case

Rep. Tom DeLay (R-Texas) pressured lobbyists to support his candidates and causes and rewarded the lobbyist through the use of Congressional earmarks.

Jack Abramoff was a lobbyist whose style was to lavish attention and favors on lawmakers.

Bob Ney (R-Ohio) accepted gifts and trips and then did legislative favors at Abramoff’s request.

Randy “Duke” Cunningham (R-California) was corrupt to an unprecedented degree. He even had a “bribe menu.”

Corporations dominate the political area with huge expenditures for lobbying and campaign donations. The recent spate of Washington scandals teach that the area in which business must pursue its political goals can be highly compromising.

9-3

Paths of PressurePaths of Pressure

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.9-12

Tension Over Corporate Political Tension Over Corporate Political ExpressionExpression

Debate is perennial over whether too much Debate is perennial over whether too much corporate money enters politics.corporate money enters politics.

Beginning with the 1907 Tillman Act, efforts Beginning with the 1907 Tillman Act, efforts to eliminate it have been unsuccessful.to eliminate it have been unsuccessful.

More progress has not been made due to More progress has not been made due to the tension between two strong values in the tension between two strong values in the American political system:the American political system:• Freedom of speechFreedom of speech• Political equalityPolitical equality

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Efforts to Limit Corporate InfluenceEfforts to Limit Corporate Influence In In 19071907 progressive reformers pass the progressive reformers pass the Tillman Tillman

ActAct, making it a crime for banks and corporations , making it a crime for banks and corporations to directly contribute to candidates in to directly contribute to candidates in federal elections, and this is still the law today., and this is still the law today.

After 1907 the After 1907 the spiritspirit of the Tillman Act was quickly of the Tillman Act was quickly and and continuously violatedcontinuously violated..

Democrats angry at Nixon passed the Democrats angry at Nixon passed the Federal Federal Election Campaign Act (FECA)Election Campaign Act (FECA) in in 19711971 to stiffen to stiffen disclosure requirements on campaign contributions disclosure requirements on campaign contributions and expenditures.and expenditures.

In reaction to Watergate, Congress extensively In reaction to Watergate, Congress extensively amended the FECA in amended the FECA in 19741974..

In 2002 in reaction to Enron and other scandals the Bipartisan Campaign Reform ActBipartisan Campaign Reform Act was passed. was passed.

Citizens United (2010)Citizens United (2010) The government may not suppress The government may not suppress

political speech based on the political speech based on the speaker’s corporate identity. No speaker’s corporate identity. No sufficient governmental interest sufficient governmental interest justifies limits on the political speech justifies limits on the political speech of for-profit corporations.of for-profit corporations.

Overruling Austin invalidates BCRA Overruling Austin invalidates BCRA Section 203 and also 2 U.S.C 441b’s Section 203 and also 2 U.S.C 441b’s prohibition on the use of [corporate] prohibition on the use of [corporate] treasury funds.treasury funds.

Citizens United (2010)Citizens United (2010)

We now conclude that independent We now conclude that independent expenditures, including those made expenditures, including those made by corporations, do not give rise to by corporations, do not give rise to corruption or the appearance of corruption or the appearance of corruption.corruption.


That the Court in NRWC did say there That the Court in NRWC did say there is a sufficient governmental interest is a sufficient governmental interest in ensuring that substantial in ensuring that substantial aggregations of wealth amassed by aggregations of wealth amassed by corporations would not be used to corporations would not be used to incur political debts from incur political debts from legislators… has little relevance legislators… has little relevance here.here.


The fact that speakers may have The fact that speakers may have influence over or access to elected influence over or access to elected officials does not mean that these officials does not mean that these officials are corrupt.officials are corrupt.

The appearance of influence or a The appearance of influence or a access, furthermore, will not cause access, furthermore, will not cause the electorate to lose faith in our the electorate to lose faith in our democracy.democracy.

Citizens United: DissentCitizens United: Dissent The Court today rejects a century of The Court today rejects a century of

history when it treats the distinction history when it treats the distinction between corporate and individual between corporate and individual campaign spending as an invidious campaign spending as an invidious novelty born of Austin…novelty born of Austin…

The conceit that corporations must The conceit that corporations must be treated identically to natural be treated identically to natural persons in the political sphere is not persons in the political sphere is not only inaccurate but also inadequate only inaccurate but also inadequate to justify this case.to justify this case.

Citizens United DissentCitizens United Dissent

Although they make enormous Although they make enormous contributions to our society, contributions to our society, corporations are not actually corporations are not actually members of it. They cannot vote or members of it. They cannot vote or run for office. Because they may be run for office. Because they may be managed and controlled by managed and controlled by nonresidents, their interests may nonresidents, their interests may conflict in fundamental respects with conflict in fundamental respects with the interests of eligible voters.the interests of eligible voters.

Citizens United DissentCitizens United Dissent The financial resources, legal structure, The financial resources, legal structure,

and instrumental orientation of and instrumental orientation of corporations raise legitimate concerns corporations raise legitimate concerns about their role in the electoral process. about their role in the electoral process. Our lawmakers have a compelling Our lawmakers have a compelling constitutional basis, if not also a constitutional basis, if not also a democratic duty, to take measures democratic duty, to take measures designed to guard against the potentially designed to guard against the potentially deletorious effects of corporate spending deletorious effects of corporate spending in local and national races.in local and national races.

How PACs WorkHow PACs Work To start a PAC, a corporation To start a PAC, a corporation

must set up an account for must set up an account for contributions.contributions.

Corporate PACs get their funds Corporate PACs get their funds primarily from contributions by primarily from contributions by employeesemployees..

The money in a PAC is disbursed The money in a PAC is disbursed to candidates based on decisions to candidates based on decisions made by PAC officers, who must made by PAC officers, who must be corporate employees.be corporate employees.

There are no dollar limits on the There are no dollar limits on the overalloverall amounts that PACs may amounts that PACs may raise and spend.raise and spend.

Political action committee

A political committee carrying a company’s name formed to make campaign contributions.

Soft Money and Issue AdvertisingSoft Money and Issue Advertising In In 19791979 Congress amended the FECA to Congress amended the FECA to

encourage support for state and local political encourage support for state and local political parties by suspending limits and prohibitions parties by suspending limits and prohibitions on contributions to them.on contributions to them.• These contributions came to be known as

soft moneysoft money.. Although corporations are barred from Although corporations are barred from

contributing to federal campaigns, they may contributing to federal campaigns, they may now give now give unlimited soft moneyunlimited soft money contributions contributions to to national party committeesnational party committees..

In In 19961996 the Supreme Court held that soft the Supreme Court held that soft money could be used for money could be used for issueissue advertisingadvertising..

Reform Legislation in 2002Reform Legislation in 2002 Senators John McCain (R-Arizona) and Russell Senators John McCain (R-Arizona) and Russell

Feingold (D-Wisconsin) pushed through a bill that was Feingold (D-Wisconsin) pushed through a bill that was enacted as the enacted as the Bipartisan Campaign Reform ActBipartisan Campaign Reform Act of of 20022002 (BCRA). (BCRA).• National parties are prohibited from raising or spending National parties are prohibited from raising or spending

soft moneysoft money..• Corporations can give unlimited amounts of soft money Corporations can give unlimited amounts of soft money

to advocacy groups for electioneering activity, with to advocacy groups for electioneering activity, with restrictions during restrictions during blackout periodsblackout periods..

• Contribution limits for individuals are raised.Contribution limits for individuals are raised.• New New disclosure requirementsdisclosure requirements for contributions and for contributions and

expenditures are introduced and expenditures are introduced and penaltiespenalties for for violating the law are increased.violating the law are increased.

The main purpose of the new law is to end the use of The main purpose of the new law is to end the use of corporate soft money for corporate soft money for issueissue ads run just before ads run just before elections.elections.


Testing the New LawTesting the New Law The 2004 election cycle was the first under BCRA The 2004 election cycle was the first under BCRA

rules. The new law did not stop the rise in overall rules. The new law did not stop the rise in overall spending.spending.• Hard moneyHard money contributions went way up. contributions went way up.• New advocacy groupsNew advocacy groups (527) formed to take in the (527) formed to take in the

soft money that corporations, unions, and individuals soft money that corporations, unions, and individuals could no longer give to parties.could no longer give to parties.

• Independent expendituresIndependent expenditures for and against for and against candidates increased.candidates increased.

So far, the new restrictions of the BCRA have So far, the new restrictions of the BCRA have worked to cut the flow of unregulated soft money worked to cut the flow of unregulated soft money into federal elections, but overall growth of into federal elections, but overall growth of campaign giving and spending has not been campaign giving and spending has not been slowed.slowed.


The Influence ProcessThe Influence Process If lawmakers or regulators accept If lawmakers or regulators accept money as a money as a

condition for official actioncondition for official action, they commit a , they commit a crimecrime. .

This does not mean that contributions This does not mean that contributions associated with lobbying are given for associated with lobbying are given for ideological reasons with no expectation of a ideological reasons with no expectation of a return. There is a return. There is a highhigh correlation between correlation between contribution and action.contribution and action.

There are There are other influences other influences on representatives on representatives apart from money, including party loyalty, apart from money, including party loyalty, ideological disposition, and the opinions of ideological disposition, and the opinions of voters back home.voters back home.


public policy process 1. policy issues 2. policy agenda 3. legislation 4. regulatory agencies 5....

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