December 14, 2011 •
FEC Split for Partisan and Personal Reasons
A divided FEC has trouble deciding on campaign finance regulations
The 6 member Federal Election Commission, split equally along partisan lines, is often seen “hanging each other out to dry”.
In an article posted on Politico, Republican member of the FEC, Don McGahn states, “These public spats we have are very, very healthy. It’s a healthy ugly.” McGahn himself tore pages of regulations out of a book during a hearing, letting the scraps fall in order to prove a point to his Democratic colleagues whom he accused of disregarding their own rules.
With court decisions such as Citizens United v. The Federal Election Commission, the FEC has had more trouble than ever making decisions regarding campaign finance, and leaving politicians and their benefactors unsure what regulations they have to follow.
During the upcoming election season, the members of the FEC will have to set aside their differences so that they may set concrete campaign finance guidelines for the United States.
To read more, read FEC dysfunction not just politics, it’s personal by Dave Levinthal and Robin Bravender.
November 17, 2011 •
FEC Approves GivingSphere’s Mobile Platform Plan for Political Contributions
Web Based Donations from Rebates
The Federal Election Commission (FEC) has issued an advisory opinion approving plans of a for-profit company’s mobile-based financial processing platform to collect and distribute funds to candidates, committees, and PACs.
GivingSphere, which allows individuals to make donations to charitable groups through the internet and mobile devices, requested an opinion about implementing contributions to political entities. Customer funds for contributions are accumulated by rebates earned by purchasing goods from merchants who participate in the GivingSphere affiliate program.
Advisory Opinion 2011-19 allows GivingSphere to transmit its customers’ funds in the form of political contributions. Additionally, the company may sell advertising space to political committees on its website, provide a searchable database of political committees to its customers, and permit political committees to post a ‘badge’ of the GivingSphere on their website.
Because GivingSphere is merely processing contributions, it will not be subject to any reporting requirements. The FEC press release can be found here.
November 7, 2011 •
American Crossroads Wants Candidate Participation in its Ads
Asks FEC
The Federal Election Commission has received an advisory opinion request asking if an independent expenditure-only PAC may use incumbent members of congress in its advertisements.
Independent expenditure PAC American Crossroads has formally requested it be allowed to produce and distribute television and radio advertisements featuring on camera footage or voice-overs of incumbent members of congress up for re-election. Conceding the purpose of the ads would be to improve the public’s perception of the congress member, the advertisements would focus on policy and legislative issues.
American Crossroads is seeking confirmation and guidance as to whether the advertisements qualify as coordinated communications, are in-kind contributions, or may limit the PAC’s ability to independently expend funds in favor of the candidate.
The advisory opinion request can be found here.
November 4, 2011 •
The FEC and the Oversight Hearing
Here are news items resulting from the oversight hearing where the Federal Election Commission gave testimony before the Subcommittee on Elections of the Committee on House Administration.
Politico published “FEC can’t explain secrecy” by Dave Levinthal.
The Hill posted “Lawmakers demand FEC documents, threaten subpoena” by Debbie Siegelbaum and Kevin Bogardus.
The FEC provided this press release and the text of the joint statement delivered to the oversight hearing.
November 3, 2011 •
Signs of Discontent
The FEC and the president take some heat over transparency.
The Boston Globe’s Political Intelligence just published this article, “Transparency groups lash out at FEC, Obama” by Donovan Slack.
Here are some of the questions the article raises: “… [C]an foreign companies with some US operations legally contribute to US elections? In the past, foreign citizens and companies have been barred from spending money in the American political system. Also unanswered: Should American organizations who spend money to influence elections have to disclose the source of the money?”
Bruce Watson offers an opinion piece called “Really Want to Influence Politicians? Stop Donating to Campaigns” on AOL’s Daily Finance page. Watson puts particular focus on the increase in fundraising by the members of the Super Committee. He references a recent study by the Project On Government Oversight. As we recall, Politico offered a bit of a different view with “Supercommittee panelists don’t cash in” by Abby Phillip.
October 12, 2011 •
House Hearing on FEC
Commissioners to Appear
All six Commissioners from the Federal Election Commission (FEC) are slated to appear before a House Subcommittee tomorrow at 3pm.
The Committee on House Administration’s Subcommittee on Elections has designated the scheduled meeting “Federal Election Commission: Reviewing Policies, Processes and Procedures.”
Among its other election-related duties, the Subcommittee on Elections oversees the FEC.
August 24, 2011 •
FEC Agrees Not to Enforce Some Laws Against NDPAC
Stipulated Order and Consent Judgment
The Federal Election Commission has entered into a Stipulated Order and Consent Judgment with the National Defense PAC (NDPAC) agreeing not to enforce some provisions of law regarding contribution limits for political committees and candidates.
These provisions, 2 U.S.C. §§ 441a(a)(1)(c) and 441a(a)(3), were ruled unenforceable by the District Court in a prior decision, Carey v. FEC. Prior to the District Court’s decision, the FEC had been unable to issue a binding resolution for an earlier NDPAC advisory opinion request.
As a single committee, the NDPAC may now contribute directly to candidates and political committees, and make independent expenditures, separating the funds only by using two separate bank accounts. It must maintain the statutory limits on the solicitation of funds used for direct contributions while it may simultaneously seek unlimited funds for use in their independent expenditures. While the Stipulated Order and Consent Judgment specifically regards the FEC withholding enforcement of the law as it applies to NDPAC, it does not address other PACs utilizing the same procedures for solicitation and separation of funds.
This post updates a previous article by George Ticoras, “One PAC is Enough” from June 15, 2011.
June 9, 2011 •
State and Federal Communications Sponsors Women in Government Relations Event
FEC Commissioner to speak.
State and Federal Communications is sponsoring a Women in Government Relations (WGR) breakfast on Wednesday, June 22, 2011 in Washington, D.C.
The event will feature Catherine Hunter, Vice Chair of the Federal Election Commission, and will be presented by the WGR’s PACs, Politics and Grassroots Task Force.
State and Federal Communications President and CEO Elizabeth Bartz and Federal Compliance Associate Rebecca South will be attending.
Registration information is available on the Women in Government Relations event page.
April 5, 2011 •
FEC Updates Filing Software
Prior formats will not be accepted
Individuals and entities using the FEC’s FECFile software to file will have to update to the software’s latest version (7.0.1.0).
Reports using earlier versions will not be accepted.
Those using commercial software are advised to contact his or her vendor to ensure compliance with the latest electronic filing format.
March 23, 2011 •
Supreme Court Denies Cao v. FEC
Coordinated Expenditure Limits Remain
The Supreme Court has denied a petition for a writ of certiorari challenging the limits a political party can spend in coordination with a candidate, leaving in place the $5,000 limits on party contributions to candidates. In Cao v. FEC, the Republican National Committee had argued making their expenditures in coordination with Louisiana Congressman Anh “Joseph” Cao, as opposed to making completely independent expenditures for him, constituted both Representative Cao’s and the RNC’s free speech.
The District Court Eastern District of Louisiana, following a prior judgment from the Court of Appeals for the Fifth Circuit on other grounds, found 2 U.S.C. §441a(a)(2)(A), limiting the amount of the contributions, constitutional. The RNC’s appeal had been filed by James Bopp, Jr.
This post is follows two previous Lobby Comply articles by George Ticoras:
“$5,000 Contribution Limit Upheld” from November 22, 2010
“RNC Argues for Coordinated Campaign Spending” from December 13, 2010
Photo of the U.S. Supreme Court Building inscription by UpstateNYer on Wikipedia.
March 17, 2011 •
Redesignation of Contributions Electronically
FEC Allows Internet Method
The FEC has released an Interpretive Rule Regarding Electronic Contributor Redesignations. A contribution made for one election may be applied to another election if the redesignation is in writing and signed by the contributor, according to commission regulations.
The commission has found a certain method of electronic redesignation meets this requirement. The method, described in the commission’s interpretive rule, requires the contributor visiting a website to fill out an electronic form authorizing the redesignation and to verify their identity by entering their personal information, including his or her first and last name, address, phone number, e-mail address, occupation, and name of his or her employer. The commission found this process sufficiently equivalent to a written signature.
February 3, 2011 •
Adjusted FEC Contribution Limits Released
Biennial Limit Now $117,000
The Federal Election Commission has published the 2011-2012 election cycle contribution limits adjusted for inflation. The revised limits, indexed according to the consumer price index, include raising the amount an individual and certain PACs can contribute to a candidate from $2,400 to $2,500 and to a national party committee from $30,400 to $30,800.
The previous biennial limit of $115,500 has been adjusted upward to $117,000, of which $46,200 may be contributed to candidates and $70,800 total to federal PACs and all other political party committees.
December 23, 2010 •
FEC Allows Citizens United to Rent Out Its Mailing List
Not Coordinated Activity
The Federal Election Commission has issued Advisory Opinion AO2010-30 Citizens United, allowing Citizens United to rent its email subscriber mailing list to federal candidates, political party committees, and political committees.
The commission concluded the rental is not a coordinated expenditure or a coordinated communication. Citizens United plans to rent its list at fair market prices using a commercial list brokerage firm.
The commission did not have enough votes to approve a response as to whether using the list to solicit contributions or invite recipients to a fundraiser violates the prohibition against corporate facilitation of contributions to candidates or political committees.
November 19, 2010 •
No Texting Political Contributions
FEC Finds Proposal for Texting Political Contributions Lacking
The Federal Election Commission issued Advisory Opinion 2010-23 denying a request allowing for political contributions to be made through cell phone texting. CTIA, a nonprofit trade association representing the wireless communications industry, proposed a program where political contributions could be made by texting five or six digit code numbers in the same manner which contributions are made for charitable donations. As proposed by CTIA, the contribution would be made at the time the phone user pays their monthly bill which would include the charge from the text pledge.
Over a 30-day period, a connection aggregator would collect contributions from all wireless service providers and then transfer the funds to the particular political committee. The Commission found the time frame for contributions to be forwarded to political committees would take longer than permissible under the law, contributions would not be segregated from other corporate funds, and CTIA’s safeguards to ensure the contributions were not from impermissible sources were inadequate.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.