FEC Releases Draft Final Rules For Coordination, Federal Election Activity

At last week’s open meeting, the Federal Election Commission (“FEC”) adopted revised coordination rules applicable to outside groups, and federal election activity rules for state and local party committees.  The new coordination rules do change the coordination rules applicable to communications sponsored by political party committees such as the National Republican Senatorial Committee or Democratic Senatorial Campaign Committee. 

The combination of these two rulemakings will impact every player in the political process.  The new coordination rules will force federal candidates and political party committees to reevaluate how they interact with grassroots lobbying groups that are driving messages regarding public policy positions.  The FEC apparently rejected the “PASO” content standard pushed by the campaign finance reform groups and adopted the “functional equivalent” content standard set forth in in the United States Supreme Court’s Wisconsin Right to Life decision.  This content standard now applies to advertisements aired at any time, and not just during the weeks immediately preceding a federal election.

The new federal election activity rules may change the way state and local party committees educate their voters about the voting process and get-out-the-vote operations.

Both rules are expected to change before publication in the Federal Register.  I will post a link to the final versions as soon as they are available.

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FEC To Consider Coordination Rulemaking At Next Open Meeting

Federal Election Commission

Federal Election Commission

The Federal Election Commission (“FEC”) is scheduled to hold an open meeting on Thursday, August 26, 2010.  The agenda includes a couple of advisory opinion requests and the coordination and federal election activity rulemakings.

The draft final coordination and federal election activity rulemakings have not been released.  I will post links to the documents as soon as they are available.

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Light Blogging Through Labor Day

As a result of my work and vacation schedule, I will be posting periodically as events warrant.  Please check back regularly after Labor Day.  Some of the issues I will be monitoring over the next couple of weeks include new developments at the Federal Election Commission, the DISCLOSE Act, and other political law issues.

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President Calls On Congress To Reconsider The DISCLOSE Act

WhiteHouse.gov

WhiteHouse.gov

President Obama used his weekly radio and internet address to call on Congress to reconsider the DISCLOSE Act.  He did not make any new arguments for passage of the legislation and his statements echoed many of the same ones used by Congressional Democrats and their soft money allies during the original debate on the legislation.

While the President railed against special interest money in elections during the address, he focused his rhetoric on the business community and did not even mention labor unions.  According the Washington Post, labor unions are the most active outside groups thus far in the 2010 election cycle.  According to the article:

Labor unions have dominated spending on independent campaign ads so far this election season, despite a recent Supreme Court decision that freed spending by corporations, a Washington Post analysis shows.

The findings are an indication that corporate money is not flooding into campaigns as many predicted would happen after the landmark decision in Citizens United v. Federal Election Commission.

Why the omission?  Labor unions are the most dependable soft money allies of the Democratic party.  Many labor unions have announced that they will spend millions of dollars this cycle to protect Congressional Democrats.  One of my previous posts on the labor unions’ incumbent protection plans can be found here.

This DISCLOSE Act is a flawed piece of legislation and constitutes nothing more than an incumbent protection act designed to silence the critics of the Congressional Democrats.  Under this legislation, certain corporations are prohibited from speaking, while similarly situated labor unions are left undisturbed.  The byzantine reporting regimes are designed to chill political speech.  The legislation’s vague terms threaten to regulate political blogs and other internet political activities, expand the scope of the coordination rules, and force for-profit and nonprofit corporations to file for a speech license with the federal government before engaging in political activities.

Congress and the Federal Election Commission should clarify the campaign finance rules for the post-Citizens United world.  However, these rules must promote speech, not stifle it, and the rules must provide every political actor with clear notice concerning the new regulatory requirements.  Congress must not pass the DISCLOSE Act in its current form.

Posted in Campaign Finance, Congress, Corporations, Disclosure, Elections, Internet, Labor Unions, Legislation, Obama Administration, Outside Groups, Politics, Trade Associations | Tagged , , , , , , , , , , | Leave a comment

Sign Of The Times

Airline baggage fees are now an itemized expense on national party committee disclosure reports filed with the Federal Election Commission.

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DISCLOSE Act Update – Senate Democrats Release DISCLOSE Act Email

S. 3628 - DISCLOSE Act

S. 3628 - DISCLOSE Act

It appears that the reports about Senate Democrats bringing the DISCLOSE Act to the Senate floor for another vote have merit.  Senators Schumer and Leahy just sent a campaign email stating that they intend to bring the DISCLOSE Act up for another vote in September.  From the email:

Fighting for something means when you get knocked down, you get right back up again.

Tens of thousands of people have signed our DISCLOSEact.com petition to pledge their support for closing new loopholes in corporate election spending.

So just because we came up one vote shy of passing our bill at the end of July doesn’t mean we’ve given up — in fact, we’re getting right back up and putting the DISCLOSE Act up for a vote again in September.  (emphasis in original)

The email also asks recipients to sign their online petition form and write letters to the editors of local newspapers because their Senate colleagues are back home paying closer attention to their constituents.

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DISCLOSE Act Update – Senate Democrats May Try Again After The August Recess

Hotline On Call reports that Senate Democrats may bring the DISCLOSE Act back to the Senate floor for another vote after the August recess.  It appears they have decided to use the legislation as a vehicle to score political points.  The Democrats and reformers are lobbying three moderate Republican Senators in an effort to secure the 60 votes necessary for cloture.  

Senate Dems and their reform-advocate allies are targeting Sens. Scott Brown (R-MA), Olympia Snowe (R-ME) and Susan Collins(R-ME), all of whom voted against cloture last month. The 3 GOPers said the bill was rushed in an attempt to influence the ’10 midterms on Dems’ behalf.

Now, though, reform advocates believe they have removed that most significant objection all 3 GOPers had. If the measure is passed in late Sept. or early Oct., it would not go into effect until after the midterms.

Here is a link to the full article.

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Campaign Finance – FEC News Update

The Federal Election Commission’s Weekly Digest for week of August 9-13, 2010, is available here.

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Campaign Finance – John J. Sullivan’s FEC Nomination Withdrawn By White House

John J. Sullivan’s nomination to the Federal Election Commission (“FEC”) was withdrawn by the White House yesterday.  Mr. Sullivan, a labor union lawyer, was nominated to fill Democratic Commissioner Ellen Weintraub’s seat on the FEC.  Commissioner Weintraub is a holdover since her term expired years ago.

The pro-regulation groups opposed Mr. Sullivan’s nomination.  Senators Feingold and McCain placed a hold on Mr. Sullivan, preventing the full Senate from considering his nomination even though he received the unanimous approval of the Senate Rules Committee. 

The Center for Competitive Politics issued a press release lamenting the demise of Mr. Sullivan’s nomination.

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Internet – Blogosphere’s Rise As A Force In Political Communications

Politico published a must-read story this morning discussing the blogosphere’s significant impact on political media relations.  Campaigns are realizing the need for better relations with bloggers who post on a variety of subjects that may impact the dynamics of their race.  As a result, many campaigns and party committees are devoting resources and personnel to reach out to bloggers as part of their messaging plan.  From the article:

Not only is the blogosphere changing how voters consume information, it’s also creating new jobs in politics, policy and online communications consulting. Although there is still no formal job description for “blogger relations” staffers, these part communications, part research, part online political organizing specialists are a growing industry in the political world.

The full article can be found here.

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Campaign Finance – “Corporate Campaign Fundraising Picks Up Speed”

The Los Angeles Times reports that business and conservative groups have increased their fundraising as a result of favorable issues environment that may translate into success this November.  The article highlights spending plans by the U.S. Chamber of Commerce and conservative groups opposed to many of the policy positions of Congressional Democrats and the Obama Administration.

It remains to be seen whether the for-profit corporations and conservative nonprofits will actually increase their spending on issues advocacy advertisements or otherwise increase political spending this fall.

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Lobbying – House Passes Lobbying Disclosure Enhancement Act

Last week, the House passed H.R. 5751, the Lobbying Disclosure Enhancement Act.  The bill was sent to the Senate for consideration last week.

H.R. 5761 amends the Lobbying Disclosure Act of 1995 by establishing a Lobbying Disclosure Enforcement Task Force that will have the responsibility for investigating and prosecuting each case referred to the Attorney General.  The bill also requires the Task Force to collect and disseminate regarding the enforcement of the federal lobbying disclosure laws.

This bill is a break from past practice by removing the jurisdiction for enforcing the federal lobbying disclosure laws from the U.S. Attorney for the District of Columbia and placing it in the hands of the Attorney General.  In addition, the bill calls for the public disclosure of the identity of lobbying firms and individual lobbyists who are the subject of enforcement actions.

The Hill reports that the legislation’s fate in the Senate is unclear and that the House intended to send a message to lobbyists that Congress is interested in cracking down on lobbyists who fail to comply with disclosure requirements.

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Shareholder Protection Act – Latest Incarnation of the DISCLOSE Act?

Last week, the House Financial Services Committee passed the H.R. 4790, the Shareholder Protection Act of 2010. The legislation will amend the Securities Exchange Act to require shareholder approval before a publicly traded company may engage in political speech.

The types of political activities requiring shareholder approval include independent expenditures, political contributions, electioneering communications, and dues or other payments to trade associations and other nonprofits that may sponsor independent expenditures.

It appears that Congressional Democrats are continuing their quest to chill political speech sponsored by their issue opponents in the business community.  The U.S. Chamber of Commerce opposes this legislation.

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Ethics – Second Congressional Democrat Faces Ethics Charges

The Los Angeles Times reports that Representative Maxine Waters (D-CA) faces ethics allegations stemming from her efforts to help a bank with ties to her husband.  A source close to Representative Waters indicates that she intends to contest the charges in a House trial.  More information on this matter may be released Monday.

The other Democratic Representative facing ethics charges and a possible House trial is Representative Charles B. Rangel (D-NY), the former chairman of the powerful House Ways and Means Committee.  Representative Rangel faces a possible House trial on thirteen ethics charges that were disclosed last Thursday in a rare public hearing of the House Ethics Committee.

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Campaign Finance – Independent Expenditure PACs Begin Registering With FEC

CQ Politics reports that at least three independent expenditure PACs have registered with the Federal Election Commission (“FEC”) since the FEC issued two advisory opinions holding that such groups may accept unlimited donations from individuals, corporations and labor unions.  The advisory opinions also provided technical guidance on registration and reporting requirements for such groups.

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