July 5, 2011 •
News You Can Use Digest – July 5, 2011
Here are highlights from the latest edition of News You Can Use:
Federal:
Colbert Declares Victory at FEC
FEC Limits Lawmakers’ Fundraising for Super PACs
From the States and Municipalities:
Alabama
Gambling Trial Highlights Fees Paid to Legislators
Arizona
Justices Strike Down Arizona Campaign Finance Law
Florida
Judge Strikes Down Florida Campaign Finance Matching Law
Illinois
Jury Finds Blagojevich Guilty of Corruption
Massachusetts
Massachusetts
Special Education Director Said to Siphon $10 Million
Missouri
Missouri Lawmakers Eat for Free
Nevada
Tougher Nevada Campaign Money Laws Come into Play
New York
New Contribution Rule Limits Assignments to Elected Judges
Oklahoma
Oklahoma Ethics Commission Reprimands NRA Lobbyist
Wisconsin
Wisconsin Justices in Altercation
State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.
News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.
Jim Sedor is editor of News You Can Use.
June 30, 2011 •
After the FEC Open Meeting
Colbert Gives a Statement to the Press
Elizabeth Bartz offers a few more pictures from after Stephen Colbert’s appearance at the Federal Election Commission’s open meeting today:
June 30, 2011 •
Elizabeth Bartz Attending the FEC Open Meeting
Live from the FEC and Stephen Colbert is there, too!
Elizabeth Bartz, President and CEO of State and Federal Communications is attending the Federal Election Commission Open Meeting where Stephen Colbert will be answering questions about his super PAC. You can follow her tweets covering the event at @ElizabethBartz. Be sure to follow Dan Backer’s @DBCapStrategies tweets – he is also covering the event.
There is a live broadcast of the FEC Open Meeting here.
Elizabeth Bartz tweets: “We are starting. Mr. Colbert’s request is first. Then there will be a break so people can leave.”
Here are a few pictures she took while waiting for and from inside the event:




June 16, 2011 •
Facebook’s Bid for an Exception
Latest news from the FEC regarding political campaign ads on Facebook.
At a meeting yesterday, the Federal Election Commission discussed Facebook’s request for a waiver from being required to have disclaimer statements revealing who paid for political ads that appear on its social network.
According to the FEC site, “The Commission discussed and voted on two draft Advisory Opinions but did not reach consensus on either draft. In its request, Facebook asked whether its small, character-limited ads qualify for the ‘small items’ or ‘impracticable’ exceptions from the disclaimer requirements of the Act and Commission regulations.”
According to the FEC, an “impracticable exception does not apply to Facebook’s ads” because Facebook determines the size of the ads itself and is not limited in space by the medium. The commission says there are technological solutions for providing the necessary disclaimers. Citing the California Fair Political Practices Commission‘s regulations regarding ads, the FEC said the solution may be found by using “roll-over displays,” placing disclaimers on landing pages, or by “other technological means.”
The Hill reported today on the issue in: “Both parties back Facebook’s request for waiver on campaign ads” by Gautham Nagesh. As the article points out, “Facebook will continue to sell ads to candidates and campaigns and … [c]andidates such as President Obama have already begun running campaign ads on the ubiquitous social network.”
Here is the FEC page with links to the advisory opinion drafts.
June 15, 2011 •
One PAC Is Enough
Two Bank Accounts
A Federal District Court judge has issued an injunction preventing the Federal Election Commission (FEC) from enforcing some campaign contribution limits against a political action committee planning to solicit and accept unlimited contributions.
As a single committee, the National Defense Political Action Committee (NDPAC) intends to contribute directly to candidates and political committees, and to make independent expenditures, separating the funds by using two separate bank accounts. It would maintain the statutory limits on the solicitation of funds used for direct contributions while simultaneously seeking unlimited funds for use in their independent expenditures.
The FEC had been unable to issue a binding resolution to an earlier NDPAC advisory opinion request.
In Carey v. FEC, United States District Judge Rosemary M. Collyer ruled the FEC may not enforce 2 U.S.C. §§ 441a(a)(1)(C) and 441a(a)(3), which outline contribution limits for political committees and candidates, against NDPAC with regard to independent expenditures as long as NDPAC maintains separate bank accounts, proportionally pays related administrative costs, and complies with the applicable monetary limits of each type of contribution.
The FEC maintained NDPAC should establish a second formal committee.
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.
May 27, 2011 •
FEC Offers Tracking Resource
Tips for Treasurers provides tools “to help you meet your obligations under the federal campaign finance law.”
The following was announced on the Federal Election Commission’s “Tips for Treasurers” page on May 23:
“The FEC’s Public Records Office and Press Office have launched a web page to track new committee registrations. Updated daily at 7:00 a.m. Eastern, it is available at http://www.fec.gov/press/press2011/new_form1dt.shtml.
A similar page launched earlier this year tracks Presidential Statements of Candidacy.”
May 24, 2011 •
Can Candidates Solicit Unlimited Funds?
FEC Advisory Opinion Requested
The House Majority PAC and the Majority PAC, two independent expenditure entities, formally requested an advisory opinion from the Federal Election Commission asking whether federal officeholders and candidates may solicit unlimited contributions on behalf of PACs. The request was sparked by the newly created Republican Super PAC, founded by James Bopp, and its plan to ask candidates to solicit and direct unlimited contributions on its behalf.
These solicited funds would be earmarked for independent expenditures supporting or opposing specifically designated candidates. Additionally the request asks if candidates may participate in fundraisers for PACs even if they cannot solicit contributions.
April 21, 2011 •
Congressman Challenges FEC Regulations
Lawsuit and Petition Filed

U.S. Representative Chris Van Hollen has filed both a lawsuit against the FEC and a petition at the FEC seeking to challenge regulations of disclosure requirements of contributions for “electioneering communications” and “independent expenditures”. In Van Hollen v. FEC, he claims the FEC regulation 11 CFR §104.20(c)(9), which requires disclosure only of those making contributions over $1,000 to an entity for the purpose of furthering electioneering communications, contradicts the statute which requires disclosure of all donors making contributions over $1,000.
The separately filed petition with the FEC requests they revise and amend regulations currently allowing independent expenditure groups to not reveal donors giving over $200 except for those contributors who gave for the purpose of furthering the reported independent expenditure. Representative Van Hollen alleges this contradicts the statute, which requires disclosure of all donors who gave over $200 to the entity.
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.
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