!! History Commons Alert, Exciting News

Follow Us!

We are planning some big changes! Please follow us to stay updated and be part of our community.

Twitter Facebook

US Civil Liberties

US Elections, Voting, and Campaign Finance

Project: US Civil Liberties
Open-Content project managed by Paul, KJF, mtuck, paxvector

add event | references

Page 4 of 5 (485 events)
previous | 1, 2, 3, 4, 5 | next

During a conference at Georgetown University Law Center, former Supreme Court Justice Sandra Day O’Connor is “obliquely” critical of the recent Citizens United decision allowing corporations and labor unions to fund political activities without spending limits (see January 21, 2010), in the words of New York Times reporter Adam Liptak. Liptak describes O’Connor as “not sound[ing] happy” about the decision, but notes that instead of giving a pointed critique of the ruling, she advises her audience to see the McConnell decision she co-wrote banning corporate spending in political campaigns (see December 10, 2003)). Of the current Court’s ruling, she says, “Gosh, I step away for a couple of years and there’s no telling what’s going to happen.” Since her retirement from the Court, she has become a vocal advocate for doing away with judicial elections in the states; she says that the Citizens United ruling will likely create “an increasing problem for maintaining an independent judiciary.… In invalidating some of the existing checks on campaign spending, the majority in Citizens United has signaled that the problem of campaign contributions in judicial elections might get considerably worse and quite soon.” She says that with the combination of unlimited corporate and union spending, and the practice of electing state judges, “We can anticipate that labor unions and trial lawyers, for instance, might have the financial means to win one particular state judicial election. And maybe tobacco firms and energy companies have enough to win the next one. And if both sides unleash their campaign spending monies without restrictions, then I think mutually-assured destruction is the most likely outcome.” [New York Times, 1/26/2012] Days after the Times reports on O’Connor’s remarks, Times editorial writer Dorothy Samuels will agree, writing that “[t]he Citizens United ruling promises to make that problem worse, possibly much worse.” The title of her editorial is “Hanging a ‘For Sale’ Sign Over the Judiciary.” [New York Times, 1/29/2012]

Entity Tags: Dorothy Samuels, Adam Liptak, Sandra Day O’Connor, US Supreme Court

Category Tags: Campaign Finance, Court Procedures and Verdicts, Media Involvement and Responses

A number of conservative media outlets accuse President Obama of engaging in “demagoguery” in his recent comments that warned the Citizens United decision (see January 21, 2010) could open the door for foreign corporations to contribute money for use in American elections (see January 27-29, 2010). [Media Matters, 1/28/2010] National Review editor Ramesh Ponnuru writes, “The most demagogic moment (so far!) came when the president claimed, falsely, that the Supreme Court had given a green light to foreign corporations to run political ads.” [National Review, 1/27/2010] Law professor and former Federal Elections Commission member Bradley A. Smith echoes Ponnuru’s accusation, writing that Obama “engaged in demagoguery of the worst kind.… The president’s statement is false.… This is either blithering ignorance of the law or demagoguery of the worst kind.” [National Review, 1/27/2010] Former Alaska Governor Sarah Palin (R-AK), the vice-presidential candidate on the McCain-Palin ticket in 2008, says on Fox News that Obama’s criticism “may not be true,” and accuses Obama of “embarrassing our Supreme Court.” She says: “This is why people are disenchanted and are becoming more and more disengaged really from what their government is doing, because when we see an issue like this—words spoken that may not be true coming from our president and embarrassing our Supreme Court and not respecting the separation of powers—we have a problem. And that’s illustrated there by that justice mouthing those words, ‘not true.’ Now, one or the other is being disingenuous here—either our president in what he just claimed, or the Supreme Court justice.” MSNBC host Joe Scarborough calls Obama’s warning “just not the truth,” saying that Obama’s statements were “not based in fact [or] the law.… So the president was not served well last night; he went out and said something that just wasn’t the truth. And I’m sure that that was very difficult for the Supreme Court to sit there and have the president tell America and the world these jokers on the front row just opened up American campaigns to foreign entities when that in fact is just not the truth.” [Media Matters, 1/28/2010] Conservative talk show host Rush Limbaugh tells his listeners, “It’s clear the president didn’t know what he was talking about or he was just out-and-out lying because he knows he’s not going to be fact-checked on matters like that by most in the state-controlled media.” [Media Matters, 1/28/2010] Prominent conservative blogger “Allahpundit” accuses Obama of “demagoguing the First Amendment” [HotAir (.com), 1/27/2010] , an accusation echoed by conservative blogger Glenn Reynolds, who responds to Allahpundit’s post by writing that Obama’s “demagoguery [will turn] into a negative for him.” [Glenn Reynolds, 1/27/2010] The next day, the Wall Street Journal will demand that Obama “get his facts straight” about the issue (see January 29, 2010). The liberal media watchdog organization Media Matters notes that Obama’s concerns were echoed by the four dissenting Supreme Court Justices in the Citizens United decision, as noted in the dissent by Justice John Paul Stevens and joined by Justices Ruth Bader Ginsburg, Stephen Breyer, and Sonia Sotomayor. The majority decision, Stevens wrote, “would appear to afford the same protection to multinational corporations controlled by foreigners as to individual Americans.” Cornell law professor Michael Dorf agreed with Stevens, telling a reporter that “[i]t is a plausible inference from the court’s opinion that [foreign] money can’t be restricted.” Dorf’s position is echoed by campaign finance reform advocate Fred Wertheimer and the leaders of the non-partisan Campaign Legal Center, Media Matters notes. [Media Matters, 1/28/2010] And the day after the decision was rendered, Smith, who accused Obama of either “blithering ignorance… or demagoguery,” told a reporter that though the law prohibits foreign nationals from contributing money to groups involved in election politics, “To the extent that there may be some foreign corporations that don’t fall under the category of foreign nationals [and could contribute to election organizations], that might be something Congress can deal with.” [Washington Independent, 1/22/2010]

Entity Tags: Fred Wertheimer, “Allahpundit”, John Paul Stevens, Barack Obama, Campaign Legal Center, Glenn Reynolds, Bradley A. (“Brad”) Smith, US Supreme Court, Wall Street Journal, Sonia Sotomayor, Stephen Breyer, Media Matters, Joseph Scarborough, Ramesh Ponnuru, Michael Dorf, Ruth Bader Ginsburg, Sarah Palin, Rush Limbaugh

Category Tags: Court Procedures and Verdicts, Campaign Finance

Supreme Court Justice Samuel Alito listens to President Obama’s State of the Union address.Supreme Court Justice Samuel Alito listens to President Obama’s State of the Union address. [Source: Renovo Media]President Obama sharply criticizes the recent Citizens United decision by the Supreme Court, giving corporations and unions the right to give unlimited and anonymous donations to organizations supporting or opposing political candidates (see January 21, 2010), during the annual State of the Union address. Obama gives the address to a joint session of Congress, with three Supreme Court members in attendance. “With all due deference to the separation of powers,” Obama says, “last week, the Supreme Court reversed a century of law that I believe will open the floodgates for special interests—including foreign corporations—to spend without limit in our elections. I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities. They should be decided by the American people. And I urge Democrats and Republicans to pass a bill that helps correct some of these problems.” Democrats in the chamber applaud Obama’s remarks, while Republicans do not. In his response, Justice Samuel Alito, one of the five conservatives on the Court who joined in the majority decision, shakes his head and mouths, “Not true, not true” (some lip readers will later claim that Alito says, “That’s not true”). It is highly unusual for a president to so directly criticize a Supreme Court ruling, especially in a State of the Union address. The next day, Vice President Joe Biden defends Obama’s remarks in an appearance on Good Morning America. Biden says: “The president didn’t question the integrity of the court. He questioned the judgment of it. I think [the ruling] was dead wrong and we have to correct it.” Supreme Court expert Lucas A. Powe says, “I can’t ever recall a president taking a swipe at the Supreme Court like that.” Experts say that the closest precedent they can find is President Franklin Roosevelt’s 1937 criticism of the Court in his address to Congress. Yale law professor Jack Balkin says, “The important thing to me is that the president thinks the Citizens United decision is important enough that he would include it.” Reactions are split along ideological lines. Senator Orrin Hatch (R-UT) calls Obama “rude” to criticize the Court’s verdict. Senator Russ Feingold (D-WI) calls Alito’s reaction “inappropriate.” Legal expert Barbara A. Perry of Sweet Briar College says both Obama and Alito were in the wrong, calling the interaction “an unfortunate display for both branches.” White House deputy press secretary Bill Burton says: “One of the great things about our democracy is that powerful members of the government at high levels can disagree in public and in private. This is one of those cases.” Alito refuses to comment. Alito and Obama have a contentious history. As a senator, Obama was one of the most outspoken voices against Alito’s confirmation as a Supreme Court justice (see October 31, 2005 - February 1, 2006), saying then of Alito, “[W]hen you look at his record—when it comes to his understanding of the Constitution, I have found that in almost every case, he consistently sides on behalf of the powerful against the powerless; on behalf of a strong government or corporation against upholding American’s individual rights.” For his part, Alito snubbed the formal visit paid by Obama and Biden to the Court. [New York Daily News, 1/28/2010; Washington Post, 1/28/2010] Months later, Obama’s warning will be proven to be correct, as a media investigation will show the US Chamber of Commerce using foreign monies to fund attack ads and other political activities under the cloak of the Citizens United decision (see October 2010).

Entity Tags: Jack Balkin, Barbara A. Perry, Barack Obama, Franklin Delano Roosevelt, US Congress, US Supreme Court, Samuel Alito, Orrin Hatch, Lucas A. (“Scot”) Powe, Joseph Biden, US Chamber of Commerce, Russell D. Feingold, Bill Burton

Category Tags: Court Procedures and Verdicts, Campaign Finance

In an unsigned editorial, the Wall Street Journal lambasts President Obama for his recent comments that warned the Citizens United decision (see January 21, 2010) could open the door for foreign corporations to contribute money for use in American elections (see January 27-29, 2010). “[C]ould a graduate of Harvard Law School at least get his facts right?” the editorial asks. The Journal accuses Obama of reciting a number of falsehoods in his comments on the decision, and accuses him of using the term “foreign” in “a conscious attempt to inflame public and Congressional opinion against the Court. Coming from a president who fancies himself a citizen of the world, and who has gone so far as [to] foreswear American exceptionalism, this leap into talk-show nativism is certainly illuminating. What will they think of that one in the cafes of Berlin?” [Wall Street Journal, 1/29/2010] The day before the editorial, the liberal media watchdog organization Media Matters noted that Obama’s concerns were echoed by the four dissenting Supreme Court Justices in the decision, as well as by a number of legal experts (see January 27-28, 2010).

Entity Tags: Wall Street Journal, Media Matters, Barack Obama

Category Tags: Campaign Finance

In a highly unusual action for a sitting Supreme Court Justice, Justice Clarence Thomas strongly defends the Court’s recent Citizens United ruling that allows unlimited corporate and union funding of campaign activities (see January 21, 2010). He makes his remarks at the Stetson University College of Law in Gulfport, Florida. Thomas was part of the 5-4 majority that ruled on the case. He also says that he refused to attend the recent State of the Union address by President Obama, where fellow Justice Samuel Alito apparently contradicted Obama’s critical characterization of the ruling (see January 27-29, 2010), because under Obama, these addresses have become “partisan,” stating: “I don’t go because it has become so partisan and it’s very uncomfortable for a judge to sit there… there’s a lot that you don’t hear on TV—the catcalls, the whooping and hollering and under-the-breath comments (see September 9, 2009). One of the consequences is now the Court becomes part of the conversation, if you want to call it that, in the speeches. It’s just an example of why I don’t go.” Thomas mocks media criticisms of the ruling, saying: “I found it fascinating that the people who were editorializing against it were The New York Times Company and The Washington Post Company. These are corporations.” It is a mistake, Thomas says, to consider regulation of corporations’ campaign activities as “some sort of beatific action,” and he cites the 1907 Tillman Act, the first federal legislation banning corporate contributions to federal candidates (see 1907), as being sparked by racism, saying: “Go back and read why [Senator Benjamin] Tillman introduced that legislation. Tillman was from South Carolina, and as I hear the story he was concerned that the corporations, Republican corporations, were favorable toward blacks and he felt that there was a need to regulate them.” Thomas says the underpinning of the decision was the First Amendment’s protection of speech regardless of how people choose to assemble to participate in the political process. “If 10 of you got together and decided to speak, just as a group, you’d say you have First Amendment rights to speak and the First Amendment right of association,” he says. “If you all then formed a partnership to speak, you’d say we still have that First Amendment right to speak and of association. But what if you put yourself in a corporate form?” The answer would be the same, Thomas says. [New York Times, 2/3/2010]

Entity Tags: New York Times, Barack Obama, Clarence Thomas, Tillman Act, US Supreme Court, Washington Post, Samuel Alito

Category Tags: Freedom of Speech / Religion, Court Procedures and Verdicts, Campaign Finance

The retired director of the ACLU, Ira Glasser, writes a detailed editorial in support of the recent Citizens United ruling that opened the way for corporations and labor unions to spend unlimited money in campaign activities (see January 21, 2010). The ACLU supported the case throughout its progression (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009), and filed briefs in support of the plaintiff, the conservative advocacy group Citizens United. Glasser says that the “screaming dismay” that “most liberals” evinced on hearing of the decision was unwarranted. Corporations are still banned from directly contributing to political campaigns, and President Obama’s assertion that the decision “reversed a century of law” is incorrect; the 1907 Tillman Act that banned corporations from contributing to campaigns or candidates is still in effect (see 1907). Instead, Glasser writes, the decision is “a huge victory… for freedom of speech and against government censorship” (see January 21, 2010, January 22, 2010, and February 2, 2010). Corporations, he writes, have the same right to speech as individuals, and they exercise that speech by spending money promoting issues and candidates, or criticizing those issues and candidates. He cites two instances in which the ACLU was stopped by the Federal Election Commission (FEC) from engaging in “political free speech,” one in 1972 when the FEC stopped the ACLU from taking out an ad in the New York Times criticizing President Nixon’s opposition to school busing to implement integration, and in 1984, when the FEC barred the ACLU from making public statements critical of President Reagan. Both instances took place inside the “window” of time before an election (30 days before a primary, 60 days before a general election) in which such utterances were considered supporting a candidate. Nonprofit groups such as Citizens United have been victimized for decades by campaign finance restrictions, Glasser writes. Later in the article, he derides the idea that restricting or controlling speech creates equality between rich and poor in elections, curbing the propensity for the rich to wield more influence and be heard more broadly than less wealthy citizens or organizations. “Money isn’t speech, but how much money one has always determines how much speech one has,” Glasser writes. “Most if not all of you reading this have never had as much speech as, say, the New York Times or George Soros or Nelson Rockefeller or George Bush or, as we recently discovered in my city, Mayor [Michael] Bloomberg. The inequities of speech that flow from the inequities of wealth are certainly a big and distorting problem for a democracy, and have always been so, and not just during elections. No one knows how to remedy that, short of fundamental re-distributions of wealth. But I’ll tell you what isn’t a remedy: granting the government the power to decide who should speak, and how much speech is enough. Nothing but disaster flows from that approach, and that was what was at stake in this case.” He concludes by advocating public financing of elections entirely, writing: “Liberals and Democrats have been the chief offenders… favoring equity in the abstract but never seeing how the particular reforms they advocated made the problems they wished to remedy worse, and never seeing that giving the government the authority to regulate speech was not a good thing. Maybe now this result, which has steamed up liberals and Democrats, may at last shift their attention to the kind of public financing that equitably provides money for more speech instead of pretending to create equity by granting the government the authority to restrict speech. We shall see.” [Huffington Post, 2/3/2010]

Entity Tags: Citizens United, American Civil Liberties Union, Federal Election Commission, Barack Obama, Tillman Act, Ira Glasser

Category Tags: Freedom of Speech / Religion, Campaign Finance

Some “tea party” leaders express their dislike of the Supreme Court’s recent Citizens United decision allowing unlimited corporate spending in elections (see January 21, 2010), a position that puts them at odds with the Republican Party and mainstream US conservatism. Hours after the decision was handed down, Republican National Committee chair Michael Steele hailed it as “an important step in the direction of restoring the First Amendment rights” of corporations (see January 21, 2010, January 22, 2010, and February 2, 2010), but some tea partiers see the decision much differently. Texas tea party activist Shane Brooks says in an email to Talking Points Memo reporter Zachary Roth: “This decision basically gives the multinational corporations owned by foreign entities [the right] to pour unlimited funds into the pockets of corrupt corporate backed politicians to attack everything this country stands for. We might as well be able to vote for Disney or the SEIU as president of the United States of America.” Nashville Tea Party official Kevin Smith recently wrote that the ruling “puts corporations in a position to crowd out smaller competition and buy politicians from the local sheriff to the president himself.” Dale Robertson, the leader of TeaParty.org, said after the decision: “It just allows them to feed the machine. Corporations are not like people. Corporations exist forever, people don’t. Our founding fathers never wanted them; these behemoth organizations that never die, so they can collect an insurmountable amount of profit. It puts the people at a tremendous disadvantage.” Sacramento tea party activist Jim Knapp tells Roth: “Most of the anger by tea party supporters is directed at the effects of special interest money.… I believe that campaign finance reform is the most important political issue facing America. I would even go so far as to say that this issue is even more important that our current financial crisis and jobs. Everything in American politics is affected by special interest money. From who controls our monetary policies in treasury and the Fed to regulation of Wall Street. I would also venture to say that it was special interest money which precipitated the current economic crisis.” Everett Wilkinson, the leader of a Florida tea party group, tells Roth that his group has “mixed feelings” about the ruling. On the one hand, he says, “getting corporations more involved with politics could be a detrimental thing.” The ruling also upholds free speech, he counters. FreedomWorks, the lobbying organization that helped found the tea party movement, and officials of the Tea Party Patriots refuse to speak to the issue with Roth. The reporter writes: “[T]heir opposition to the Court’s ruling on behalf of corporations hints at an ideological split between the movement and the GOP that has long existed under the surface. Tea Partiers—especially the rank-and-file activists, as opposed to the movement leaders—often embrace a more populist, anti-corporate position than does the Republican Party, or the conservative movement that under-girds it. This difference underlies much of the tension we’re increasingly seeing between Tea Partiers and the GOP.” [TPM Muckraker, 2/3/2010]

Entity Tags: Kevin Smith, Dale Robertson, Everett Wilkinson, Jim Knapp, Republican Party, US Supreme Court, Michael Steele, Zachary Roth, FreedomWorks, Shane Brooks

Category Tags: Freedom of Speech / Religion, Campaign Finance

Senator Charles Schumer (D-NY) and Representative Chris Van Hollen (D-MD) are introducing legislation that would undo the recent Citizens United Supreme Court decision that allows corporations and labor unions to spend unlimited amounts on political advertising (see January 21, 2010). The proposed legislation is a “patchwork,” in the New York Times’s phrasing, “of spending restrictions and disclosure requirements—many based in current laws. The measure would greatly expand the scope of an existing ban on political commercials paid for by foreign corporations, ban political commercials paid for by government contractors or recipients of bailout money, and force corporations and unions to make public details of what they spend directly or through advocacy groups.” Schumer and Van Hollen say they want the legislation enacted in time for it to constrain spending in the November 2010 midterm elections. “Otherwise the court will have predetermined the winner of the midterm elections,” Schumer says. “It won’t be the Republicans or the Democrats. It will be corporate America.” At least one Republican senator would have to vote to allow the bill to come up for a vote, and as of yet, it is unclear than any Republican senator will do so. Schumer and Van Hollen say they crafted the legislation to remain in line with Citizens United, providing firmer constitutional ground for the spending restrictions and disclosure requirements in the bills. The Times explains, “The Court has frowned on speech restrictions aimed at specific speakers and leaned toward disclosure as a constitutionally permissible response to fears of corruption or undo influence.” The proposed legislation would not ban corporate or labor union spending outright, but would ban spending by any domestic domestic corporation with at least 20 percent foreign ownership, any corporation whose board included a majority of foreigners, or any corporation where executive control belonged to a foreign company or government. The disclosure requirements are broader—if a corporation paid for a political ad, the legislation would require that corporation’s CEO to appear at the end of the ad to take responsibility for the message. For advocacy group ads, the biggest donor would be required to appear, and the five biggest corporate contributors would be named in the ad. The legislation would also force corporations and interest groups to set up political spending accounts and file reports of their activities. [New York Times, 2/11/2010] A Times editorial appearing six days after the initial press reports lauds the legislation as “a sensible” if “partial” response to the Citizens United decision. The Times will state: “The Schumer-Van Hollen bill is expected to be introduced later this month. Congressional leaders should put it on a fast track so it can be in place in time for this year’s midterm elections. It could help keep special interest money in check until the real solution comes: a Supreme Court ruling reversing the deeply antidemocratic Citizens United decision.” [New York Times, 2/17/2010]

Entity Tags: Charles Schumer, US Supreme Court, Chris Van Hollen, New York Times

Category Tags: Campaign Finance

Campaign finance lawyers tell the New York Times that a loophole in the recent Citizens United Supreme Court decision, a decision that allows corporations and labor unions to spend unlimited amounts on political advertising (see January 21, 2010), could allow corporations and unions to make their donations anonymously and avoid the disclosure requirements that the Citizens United ruling left in place. Two earlier Court decisions, the 1986 Federal Election Commission v. Massachusetts Citizens for Life (see December 15, 1986) and the 2007 Wisconsin Right to Life rulings (see June 25, 2007), could be used in tandem with the Citizens United decision to make it possible for corporations and unions to donate anonymously to trade organizations and other nonprofit entities. Those entities could then use the money to finance political advertisements. Those nonprofit groups, usually called 501(c) groups after the applicable portion of the IRS tax code, had been allowed to finance so-called “electioneering communications” long before the Citizens United decision, but until now, corporations have not been allowed to spend unlimited amounts of money advocating for a candidate’s election or defeat. Nor could they donate money to nonprofit groups that engage in “electioneering communications.” The 1986 decision gave some nonprofit organizations the right to advertise for or against political candidates, but banned corporations and unions from giving money to those groups. The Citizens United decision overturned that ban. And the 2006 ruling allowed corporations to spend money on “electioneering communications.” Now, experts like corporate lawyer Kenneth A. Gross, a former associate general counsel for the Federal Election Commission (FEC), believe that corporations will donate heavily and anonymously to those “third party” groups to buy political advertising. “Clearly, that’s where the action’s going to be,” Gross says. Corporations that spend money directly on political advertising still have to identify themselves in the ads, Gross says, and report their donors. Many corporations do not want to identify themselves in such advertisements. The nonprofit groups are an attractive alternative to public disclosure, Gross says. Congressional Democrats call the loophole dangerous, and have proposed legislation that would require nonprofit groups to disclose their donors for political advertising (see February 11, 2010). The Times states, “It is impossible to know whether corporations or unions are taking advantage of the new freedom to funnel pro- or anti-candidate money through nonprofit organizations.” [New York Times, 2/27/2010]

Entity Tags: New York Times, US Supreme Court, Kenneth A. Gross

Category Tags: Campaign Finance

Chief Justice John Roberts tells a group of law students that President Obama and Congressional Democrats turned the recent State of the Union address into a “pep rally” targeting Court justices, and questions the need for justices to attend the event. During the speech, Obama criticized the Citizens United decision allowing corporations to spend unlimited amounts of money on political advertising (see January 21, 2010), and Justice Samuel Alito drew media attention by mouthing the words “Not true” in response to Obama’s remarks (see January 27-29, 2010). Roberts is referring to the fact that many Congressional Democrats cheered the president’s remarks. He calls the event “very troubling,” and says, “To the extent the State of the Union has degenerated into a political pep rally, I’m not sure why we are there.” Six of the Court’s nine justices, including Alito and Roberts, were in attendance. Roberts says he is less concerned about the criticism of the Court than the expectation that the justices must sit silently: “Anybody can criticize the Supreme Court.… I have no problem with that. The image of having the members of one branch of government standing up, literally surrounding the Supreme Court, cheering and hollering while the Court—according to the requirements of protocol—has to sit there expressionless, I think is very troubling. It does cause me to think… why are we there?” Justices Antonin Scalia and Clarence Thomas did not attend, complaining that the address would be a “partisan” event (see February 2, 2010), and Justice John Paul Stevens, who strongly dissented from the Citizens United decision, did not attend due to age and health issues. White House press secretary Robert Gibbs responds strongly to Roberts’s remarks, saying, “What is troubling is that this decision opened the floodgates for corporations and special interests to pour money into elections, drowning out the voices of average Americans.” [Los Angeles Times, 3/10/2010] Three weeks after Roberts makes his observations, conservative talk show host David Limbaugh will call Obama’s criticisms a “public assault” on the justices. [David Limbaugh, 4/5/2012]

Entity Tags: John Paul Stevens, Barack Obama, Antonin Scalia, Clarence Thomas, John G. Roberts, Jr, Samuel Alito, David Limbaugh, Robert Gibbs, US Supreme Court

Category Tags: Campaign Finance

The Washington, DC, Circuit Court of Appeals unanimously holds that provisions of the Federal Election Campaign Act (FECA—see February 7, 1972, 1974, and May 11, 1976) violate the First Amendment in the case of a nonprofit, unincorporated organization called SpeechNow.org. SpeechNow collects contributions from individuals, but not corporations, and attempted to collect contributions in excess of what FECA allows. In late 2007, SpeechNow asked the Federal Election Commission (FEC) if its fundraising plans would require it to register as a political committee, and the FEC responded that the law would require such registration, thus placing SpeechNow under federal guidelines for operation and fundraising. In February 2008, SpeechNow challenged that ruling in court, claiming that the restrictions under FECA were unconstitutional. FECA should not restrict the amount of money individuals can donate to the organization, it argued, and thusly should not face spending requirements. It also argued that the reporting limits under FECA are unduly burdensome. The district court ruled against SpeechNow, using two Supreme Court decisions as its precedents (see January 30, 1976 and December 10, 2003), and ruled that “nominally independent” organizations such as SpeechNow are “uniquely positioned to serve as conduits for corruption both in terms of the sale of access and the circumvention of the soft money ban.” SpeechNow appealed that decision. The appeals court reverses the decision, stating that the contribution limits under FECA are unconstitutional as applied to individuals. The reporting and organizational requirements under FECA are constitutionally valid, the court rules. The appeals court uses the recent Citizens United ruling as justification for its findings on contribution limits (see January 21, 2010). [New York Times, 3/28/2010; Federal Elections Commission, 2012; Moneyocracy, 2/2012] The FEC argued that large contributions to groups that made independent expenditures could “lead to preferential access for donors and undue influence over officeholders,” but Chief Judge David Sentelle, writing for the court, retorts that such arguments “plainly have no merit after Citizens United.” Stephen M. Hoersting, who represents SpeechNow, says the ruling is a logical and welcome extension of the Citizens United ruling, stating, “The court affirmed that groups of passionate individuals, like billionaires—and corporations and unions after Citizens United—have the right to spend without limit to independently advocate for or against federal candidates.” [New York Times, 3/28/2010] Taken along with another court ruling, the SpeechNow case opens the way for the formation of so-called “super PACs,” “independent expenditure” entities that can be run by corporations or labor unions with monies directly from their treasuries, actions that have been banned for over 60 years (see 1925 and June 25, 1943). The New York Times will later define a super PAC as “a political committee whose primary purpose is to influence elections, and which can take unlimited amounts of money, outside of federal contribution limits, from rich people, unions, and corporations, pool it all together, and spend it to advocate for a candidate—as long as they are independent and not coordinated with the candidate.” Super PACs are not required by law to disclose who their donors are, how much money they have raised, and how much they spend. CNN will later write, “The high court’s decision allowed super PACs to raise unlimited sums of money from corporations, unions, associations, and individuals, then spend unlimited sums to overtly advocate for or against political candidates.” OpenSecrets, a nonpartisan organization that monitors campaign finance practices, later writes that the laws underwriting Super PACs “prevent… voters from understanding who is truly behind many political messages.” [New York Times, 3/28/2010; Federal Elections Commission, 2012; OpenSecrets (.org), 2012; CNN, 3/26/2012; New York Times, 5/22/2012]

Entity Tags: Stephen M. Hoersting, New York Times, Federal Election Commission, Federal Election Campaign Act of 1972, OpenSecrets (.org), David Sentelle, CNN, SpeechNow (.org)

Timeline Tags: 2012 Elections

Category Tags: Court Procedures and Verdicts, Campaign Finance

Attorney Karl Crow, one of the leaders of the Themis project.Attorney Karl Crow, one of the leaders of the Themis project. [Source: Little Sis (.org)]Charles and David Koch, the oil billionaires who are behind the conservative tea party movement (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011 and October 4, 2011), begin to build a huge, nationwide database of conservative voters that they intend to use to drive conservative votes in elections, beginning with the 2012 Republican primaries and on to the November 2012 general presidential election. The database is nicknamed “Themis,” after the Greek goddess of divine law and order who imposes order on human affairs. According to The Guardian’s Ed Pilkington, “the Koch brothers are close to launching a nationwide database connecting millions of Americans who share their anti-government and libertarian views, a move that will further enhance the tycoons’ political influence and that could prove significant in next year’s presidential election.” Pilkington writes that Themis will bring together “the vast network of alliances” the brothers have formed over the last 20 years. [Politico, 10/10/2011; Guardian, 11/7/2011] Patrick Glennon of In These Times writes: “Email lists, phone numbers, and other contact information from disperse sources will merge into a comprehensive and streamlined political weapon. Purportedly, the database will also include extensive information relating to occupation and income levels, useful details for targeted fundraising initiatives.” [Politico, 10/10/2011] The database begins in April 2010, and is expected to be completed and functional by the end of 2011. Few details of the project are known; development leader Karl Crow, a Washington lawyer and longtime Koch advisor, refuses to speak about it, as do media representatives of Koch Industries. A member of a Koch affiliate organization who specializes in the political uses of new technology says in November 2011 that the project is almost ready to go live: “They are doing a lot of analysis and testing. Finally they’re getting Themis off the ground.” The project is intended to, Pilkington writes, “bring together information from a plethora of right-wing groups, tea party organizations, and conservative-leaning thinktanks. Each one has valuable data on their membership—including personal email addresses and phone numbers, as well as more general information useful to political campaign strategists such as occupation, income bracket, and so on. By pooling the information, the hope is to create a data resource that is far more potent than the sum of its parts. Themis will in effect become an electoral roll of right-wing America, allowing the Koch brothers to further enhance their power base in a way that is sympathetic to, but wholly independent of, the Republican Party.” The specialist tells Pilkington, “This will take time to fully realize, but it has the potential to become a very powerful tool in 2012 and beyond.” Themis is modeled in part on a project called Catalyst, a voter list that compiled and shared data about progressive groups and campaigns (see Late 2004 and After) and helped Democrats regain momentum after the 2004 defeat of presidential candidate John Kerry (D-MA). [Politico, 10/10/2011; Guardian, 11/7/2011; In These Times, 11/8/2011] The 2008 Obama campaign used social media outreach techniques to augment Catalyst’s database. Themis apparently incorporates many of those social-media and other interactive features in its construction. [The Kernel, 12/19/2011] Josh Hendler, the former director of technology of the Democratic National Committee (DNC), tells Pilkington that Themis could do for the GOP what Catalyst helped do for the Democrats. “This increases the Koch brothers’ reach,” he says. “It will allow them to become even greater coordinators than they are already—with this resource they become a natural center of gravity for conservatives.” Mary Boyle of the political watchdog group Common Cause says of the reclusive brothers, “What makes them unique is that they are not just campaign contributors; they are a vast political network in their own right.” Themis will only deepen the Koch brothers’ control of American right-wing politics, Pilkington observes. Politico’s Kenneth Vogel writes that the Kochs intend to spend at least $200 million in 2012 on the Republican presidential campaign and other related activities. Pilkington writes: “Their potential to sway the electorate through the sheer scale of their spending has been greatly enhanced by Citizens United, last year’s controversial ruling by the US Supreme Court that opened the floodgates to corporate donations in political campaigns. The ruling allows companies to throw unlimited sums to back their chosen candidates, without having to disclose their spending. That makes 2012 the first Citizens United presidential election, and in turn offers rich pickings to the Koch brothers.” Themis will help the Kochs “micro-target” voters and potential fundraisers. Pilkington writes that it is reasonable to assume that Koch-funded lobbying organizations such as Americans for Prosperity and FreedomWorks are part of Themis, as are Koch-funded think tanks such as the Heritage Foundation. “Between them, they have tentacles that extend to millions of voters,” Pilkington writes. Liberal reporter and blogger Lee Fang says the impact of Themis and the Koch funding on the 2012 presidential campaign will be immense: “This will be the first major election where most of the data and the organizing will be done outside the party nexus. The Kochs have the potential to outspend and out-perform the Republican Party and even the successful Republican candidate.” [Politico, 10/10/2011; Guardian, 11/7/2011; In These Times, 11/8/2011]

Entity Tags: Charles Koch, 2008 Obama presidential election campaign, Ed Pilkington, Americans for Prosperity, Catalyst, David Koch, Themis, Republican Party, Karl Crow, Josh Hendler, Patrick Glennon, Kenneth Vogel, Lee Fang, Mary Boyle, John Kerry, FreedomWorks

Timeline Tags: 2012 Elections

Category Tags: Voting Rights

Adam Skaggs, an attorney for the Brennan Center for Justice, writes that the controversial Citizens United decision by the Supreme Court (see January 21, 2010) is going to have a huge impact on judicial elections in 2010 and beyond. The record for the costliest judicial race in US history was set in a 2004 Illinois contest between Lloyd Karmeier and Gordon Maag, competing for the bench in the state’s 5th Judicial District. Between them, they raised and spent almost $9.4 million, more than double the previous national record, and an amount Karmeier later called “obscene.” Special interests on both sides of the election became heavily involved, with Karmeier’s corporate donations from such organizations as the US Chamber of Commerce and State Farm Insurance winning out over Maag’s donations from trial lawyers. After the election, Karmeier cast the deciding vote in a case that saved State Farm $500 million. An Ohio labor official said in commenting on the often-heavy spending on judicial races, “We figured out a long time ago that it’s easier to elect seven judges than to elect one hundred and 32 legislators.” The Citizens United case, Skaggs writes, will undoubtedly lead to corporate spending in judicial races like never before. That spending, he writes, “threatens to further erode the judiciary’s independence.” Even former Supreme Court Justice Sandra Day O’Connor has said that “Citizens United has signaled that the problem of campaign contributions in judicial elections might get considerably worse and quite soon.” Skaggs cites a number of races that will likely be targets for big corporate donors:
bullet Illinois Supreme Court Chief Justice Thomas R. Fitzgerald is a probable target after striking down a 2005 law that placed caps on medical malpractice claims; Skaggs predicts the same corporate interests that helped Karmeier win a judicial seat will attempt to defeat Fitzgerald.
bullet In Alabama, three seats currently held by Republicans are contested. One of these, Alabama Supreme Court Justice Tom Parker, is the likely recipient of heavy corporate funding, because, as Skaggs writes, groups like the Business Council of Alabama want Parker on the bench to protect conservative interests on economic issues. That corporate spending will likely outstrip spending on Democratic candidates, which will come primarily from liberal judicial groups and the state’s Democratic Party.
A 2006 study by the New York Times showed that judges routinely decide cases involving campaign donors, and in 70 percent of those cases, find in favor of those donors. One judge in the study voted on behalf of his donors 91 percent of the time. In Nevada, judges routinely accept huge donations even when running unopposed, often from donors who have cases pending before those judges. Nevada voters will decide in the November elections whether to scrap the system of an elected judiciary and move to an appointment system. Skaggs recommends that states should adopt public financing systems for judicial elections (four states—New Mexico, North Carolina, West Virginia, and Wisconsin already do so) and eliminate entirely the concept of outside interests donating to judicial campaigns. He recommends stricter disclosure rules, so that the public knows who is contributing how much to judicial candidates. And, he writes, “states should institute new disqualification regulations to ensure that, if a judge is assigned to hear the case of a major campaign supporter, he or she must step aside and let a wholly impartial judge preside.” Otherwise, he writes: “The very legitimacy of the courts depends on the public believing that judges will treat every party without bias or favor. If, in the Citizens United era, states don’t adopt public financing and strong disclosure and disqualification rules, the judiciary’s credibility will dissolve—and quickly.” [New Republic, 4/5/2010]

Entity Tags: New York Times, Adam Skaggs, Business Council of Alabama, Lloyd Karmeier, US Chamber of Commerce, Sandra Day O’Connor, Thomas R. Fitzgerald, Tom Parker (ALSC), Gordon Maag, US Supreme Court

Category Tags: Campaign Finance

One of many images produced to protest Target’s perceived anti-gay donations.One of many images produced to protest Target’s perceived anti-gay donations. [Source: Village Voice]The Target Corporation, owner of Target department stores, donates $150,000 to a fund with close ties to the campaign of Tom Emmer (R-MN), the GOP’s presumptive nominee for Minnesota’s governor, through its federal PAC TargetCitizens. The donation is $100,000 in cash and $50,000 in “brand consulting.” Another Minnesota-based retail chain, Best Buy Co., gives $100,000 to the group MN Forward, which describes itself as “nonpartisan” but only donates money to Emmer. The money is to be used primarily for ads supporting Emmer, a state legislator. The donations are allowable under the controversial Citizens United ruling that allows corporations to give unrestricted amounts to political organizations (see January 21, 2010). Emmer is a controversial candidate with a record of fiery opposition to gay rights and other stances not popular with moderate and liberal voters, and some are talking about organizing a boycott of Target and Best Buy. Target is the primary focus of the criticism, in part because it has promoted itself as a progressive alternative to corporate retailers such as Wal-Mart, according to an official with progressive advocacy group MoveOn.org. A Target spokesperson, Lena Michaud, says the company supports causes and candidates “based strictly on issues that affect our retail and business objectives.” TargetCitizens, according to Michaud, donates money to both Democratic and Republican candidates. Though Michaud says Target spreads its donations equally between candidates of the two parties, the $150,000 donation exceeds the amount TargetCitizens has donated in all other federal campaigns this year; Target executives have donated primarily to Republicans as well. Emmer, aside from his opposition to gay rights, favors a strict stance on immigration and has advocated slashing the wages of food service workers, whom he claims often make six-figure incomes when their tips are counted. He also advocates the nullification of some portions of the US Constitution, and wants to nullify the recent health care reform legislative package. In contrast, Target has cultivated a moderate image in Minnesota, making public donations to schools, food shelves, and the annual Twin Cities Gay Pride Festival. Target CEO Gregg Steinhafel, a heavy Republican donor, says his company’s commitment to gay rights is “unwavering.” MN Forward director Brian McClung, who formerly served as spokesman for retiring Governor Tim Pawlenty (R-MN), says: “We believe that everybody has the right to express their opinions and we’re going to run a fair and factual campaign. Our first ad is a positive ad talking about a candidate’s vision for creating jobs.” [Associated Press, 7/27/2010; Think Progress, 7/27/2010; Washington Post, 8/19/2010] Paul Finkelstein, CEO of Regis Corporation, which has also donated to MN Forward, explains that his company, like Target and Best Buy, donates based on economic concerns. “From a social perspective, I don’t agree with many of his platforms,” Finkelstein says. “My concern, frankly, is jobs. We have to have a tax policy that enables us to be able to create jobs.” Emmer wants to institute massive tax cuts, particularly for business owners and the wealthy, if he is elected as governor. Best Buy spokeswoman Susan Busch Nehring says of the controversy, “We’ve learned from this, and we will thoughtfully review the process we use to make political contributions, to avoid any future confusion.” [TPMDC, 7/30/2010; Washington Post, 8/19/2010]
Backlash - Local gay-rights organization Twin Cities Pride says it is “reviewing its partnership with Target” in light of the Emmer donations, while another gay-rights organization, OutFront Minnesota, says in a statement: “Emmer stands alone among candidates for governor in opposing equality for GLBT Minnesotans. Target should not stand with him.” OutFront Minnesota director Monica Meyer says, “This is inconsistent with their values to support the only candidate for governor who stands up for discrimination and divisiveness in Minnesota.” Former Democratic campaign worker Laura Hedlund pickets outside a Minnesota Target store, and tells a reporter, “I think Target is making a huge mistake” in donating money to support Emmer. A YouTube video posted by Minnesota citizen and former Target consumer Randi Reitan goes “viral”; in the video, Reitan returns $226 worth of items to a Target store and cuts up her Target credit card, explaining that she wants equality for her gay son, which Emmer, and by extension Target, does not support. Political science professor David Schultz says he is surprised Target would make such a controversial announcement of support: “I thought they would have sat this one out because they are so smart in terms of marketing. Target has had the warm fuzzies with progressives for years.… Now they risk alienating half the state’s population.” Emmer himself complains that his right to freedom of speech is being challenged by the protests against Target, and accuses protesters of demonstrating against him for personal reasons, saying: “The sad part to me is, I thought we were supposed to be able to exercise our rights of free speech. We’re supposed to celebrate the fact that we have different perspectives. And it doesn’t seem like that’s what this is about. This seems to be more personal and we’ve got to get over that.” [Associated Press, 7/27/2010; TPMDC, 7/30/2010] MN Forward continues to garner significant corporate donations even after the Target backlash. [Minnesota Public Radio, 8/5/2010; Minnesota Independent, 8/6/2010]
Apology - Days later, Steinhafel issues a public apology for the donation, in an apparent effort to ward off planned boycotts by gay-rights and Democratic groups. Steinhafel writes a letter to Target employees that is made public, claiming that the donation was merely to support economic growth and job creation. He acknowledges that the contribution affected many employees in ways he did not anticipate and says: “[F]or that I am deeply sorry.… The diversity of our team is an important aspect of our culture and our success, and we did not mean to disappoint you, our team or our valued guests.” Michaud says the company will do what she calls a strategic review of political donations, and plans to lead a discussion on improving gay rights in the workplace. “Our commitment right now is in letting people know that we’ve heard their feedback and we’re really sorry that we’ve let them down,” Michaud says. “We want to continue doing the many things that Target has done as a company to foster our inclusive corporate culture and then look at ways of doing things better in the future.” Meyer says she is glad to hear Steinhafel’s apology, but her group intends to wait and see if Target fulfills its promise to be supportive of gay rights: “People are really appreciating them reiterating that kind of support but they want to make sure that their consumer dollars aren’t going to fund candidates who do the exact opposite of what Target says it wants to promote in society.” Soon after Steinhafel’s apology, Human Rights Campaign, a human rights organization that supports gay rights, says it spoke with Target about contributing $150,000 to a candidate who does support gay rights, but, the organization says, those talks have broken down. Allison Hayward of the Center for Competitive Politics says corporations should view the Target controversy as a cautionary tale. “This is sort of an object lesson for the next time a Sears or a Wal-Mart thinks about getting involved in some political expenditures,” she says. “Large corporations are not generally interested in alienating customers.” [Minnesota Public Radio, 8/5/2010; Washington Post, 8/19/2010]
Donations to Anti-Gay Candidates Continue - Federal Election Commission (FEC) records released in December 2010 will show that Target continues to donate to anti-gay candidates. [Think Progress, 12/24/2010]
Policy Change - In February 2011, Target Corporation issues a new policy to tighten oversight and restrict how the firm’s funds are used for political purposes. Tim Smith of Walden Asset Management, one of the companies that filed a shareholder resolution criticizing the donation, says: “This is definitely a trend. More and more companies are stepping up and being transparent about their political spending.” Target still refuses to disclose how much money it donates to trade associations, which are often some of the largest political campaign donors. Target now has a committee tasked with guiding “the decision-making process regarding financial support of political activities,” according to a policy document. [Los Angeles Times, 2/19/2011]

Entity Tags: Allison R. Hayward, Laura Hedlund, Gregg Steinhafel, Twin Cities Pride, Best Buy Co., David Schultz, Brian McClung, Federal Election Commission, Human Rights Campaign, Tim Smith, Tom Emmer, TargetCitizens, Monica Meyer, MN Forward, Lena Michaud, Tim Pawlenty, OutFront Minnesota, MoveOn (.org), Randi Reitan, Paul Finkelstein, Target Corporation, Susan Busch Nehring

Category Tags: Freedom of Speech / Religion, Campaign Finance

The exterior of the St. Regis Resort in Aspen, Colorado.The exterior of the St. Regis Resort in Aspen, Colorado. [Source: Real Aspen (.com)]The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, and July 3-4, 2010), holds a private meeting with some 200 wealthy financial and political figures at the exclusive St. Regis Resort in Aspen, Colorado. The meeting is designed to bring the participants together to combat what Koch calls “the threats posed to American freedom and prosperity” by Democrats and the Obama administration. To that end, many of the sessions in the two-day event target methods and plans to influence and manipulate the upcoming 2010 midterm elections. The meeting is highly secretive, with participants warned not to discuss the proceedings with anyone, especially members of the media, but in August, the liberal news Web site Think Progress will obtain a copy of a September 2010 memo from Koch that contains the June 2010 event program. The various events include:
bullet a seminar on “The Bankrupting of America”;
bullet a seminar on the “regulatory assault” on environmental concerns and how to further business goals by defeating environmental regulations;
bullet a seminar on how to influence universities and colleges to “advance liberty”;
bullet a seminar on how to “micro-target” the electorate in order to win elections for conservative Republican candidates;
bullet a seminar on “The Threats to American Freedom and Prosperity” conducted by Koch himself;
bullet “Understanding the Threats We Face,” a seminar moderated by Wall Street Journal reporter Stephen Moore (see May 6, 2006), Ramesh Ponnuru of the National Review, Phil Kerpen of Americans for Prosperity (AFP—see Late 2004), and Peter Wallinson of the far-right American Enterprise Institute (AEI);
bullet a seminar on “An Integrated Strategy to Face These Threats,” moderated by Koch’s senior assistant Richard Fink;
bullet an evening address, “Is America On the Road to Serfdom?” by former Fox News talk show host Glenn Beck;
bullet a seminar, “We’re Spending Too Much,” on how to lower government spending, conducted by Russ Roberts of the far-right libertarian Mercatus Center;
bullet a seminar, “Understanding This Year’s Electorate,” by journalist and AEI fellow Michael Barone;
bullet a follow-up seminar on how to “Fram[e] the Debate on Spending” for the elections, moderated by members of AEI and the Mercatus Center;
bullet a seminar, “Mobilizing Citizens for November,” featuring Tim Phillips, the head of AFP (see August 6, 2009) and Karl Crow, the head of Themis, the Koch-funded computer database being used in “micro-targeting” voters (see April 2010 and After);
bullet a seminar hosted by Arthur Brooks of AEI on how to frame the “fight” as one between “free enterprise and Big Government”;
bullet a seminar on how best to target participants’ philanthropic gifting;
bullet a seminar on “reforming” K-12 public and charter schools;
bullet a seminar on impacting judicial elections in several key states;
bullet a seminar on transitioning from the 2010 elections to the 2012 presidential elections and how “supporters of economic freedom” can “start planning today” for that election;
bullet a final evening address, “What’s Ahead for America?” by noted neoconservative columnist and Fox News pundit Charles Krauthammer.
The event features David Chavern, a senior official at the US Chamber of Commerce, one of the entities contributing the most funding to conservative political organizations (see August 2, 2010, September 13-16, 2010, and October 2010). Think Progress’s Lee Fang will write: “In an election season with the most undisclosed secret corporate giving since the Watergate-era, the memo sheds light on the symbiotic relationship between extremely profitable, multi-billion dollar corporations and much of the conservative infrastructure. The memo describes the prospective corporate donors as ‘investors,’ and it makes clear that many of the Republican operatives managing shadowy, undisclosed fronts running attack ads against Democrats were involved in the Koch’s election-planning event.” Many of the “investors” listed as attending or participating in the events include executives from health care corporations; executives from fast-food and other food-industry executives who have fought against providing health insurance to their employees; an array of banking and financial executives; and a number of energy industry executives. Fred Malek, who serves as the top fundraiser for a $56 million attack ad campaign against Democrats (see Mid-October 2010), attends, as does Heather Higgins of the Independent Women’s Forum, another organization that has spent millions opposing health-care reform. Many of the election-focused seminars address how to take advantage of the Citizens United ruling that lifted restrictions on corporate election spending (see January 21, 2010). The Aspen meeting, as with earlier meetings, is managed by Kevin Gentry, a Koch Industries executive and Washington lobbyist. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: David Chavern, Tim Phillips, Stephen Moore, St. Regis Resort, Glenn Beck, Charles Koch, Arthur Brooks, Fred Malek, Charles Krauthammer, Russ Roberts, Think Progress (.org), Ramesh Ponnuru, Kevin Gentry, Richard Fink, Heather Higgins, Lee Fang, Karl Crow, Obama administration, Phil Kerpen, Michael Barone, Peter Wallinson

Category Tags: Media Involvement and Responses, Campaign Finance, Voter Fraud/Disenfranchisement

The Web site of conservative pundit and activist Andrew Breitbart misquotes Solicitor General Elena Kagan to give the appearance that she condones book banning. The story comes from a video produced by Naked Emperor News and promoted by Breitbart TV, featuring edited audio recordings of Kagan’s oral arguments before the Supreme Court in the Citizens United decision (see September 9, 2009 and January 21, 2010). [Media Matters, 6/29/2010] Breitbart TV headlines its story: “Kagan’s own words: It’s fine if the law bans books because government won’t really enforce it.” [Breitbart TV, 6/28/2010] The story is immediately picked up by the conservative Drudge Report, which uses a nearly identical headline and links to the Breitbart site. [Media Matters, 6/29/2010] The influential conservative blog Gateway Pundit posts the story, again with an almost-identical headline, and includes the comment, “Spoken like a true leftist radical…” [Jim Hoft, 6/28/2010] (Both Breitbart TV and Gateway Pundit will later delete their posts.) Fox Nation, the blog for Fox News, also posts the story with the headline: “Kagan: It’s Fine If the Law Bans Books.” [Fox Nation, 6/29/2010] However, the video and audio have been edited to have Kagan claiming something she never said. During her argument before the Court, she actually argued that federal law had never banned books and probably could not do so. She never uttered the words, “It’s fine if the law bans books.” She said that if the government did try to ban books under campaign finance laws, “there would be quite good as-applied challenge” to the law, meaning that if a corporation did publish a book that advocated for or against a candidate during an election season, it would have a strong case against any potential banning by the government. Kagan later said: “[W]hat we’re saying is that there has never been an enforcement action for books. Nobody has ever suggested—nobody in Congress, nobody in the administrative apparatus has ever suggested that books pose any kind of corruption problem, so I think that there would be a good as-applied challenge with respect to that.” [Media Matters, 6/29/2010] Naked Emperor News, which produced the video, is a small organization run by conservative activist Pam Key and promoted by the Breitbart Web network. [Media Matters, 9/2/2010]

Entity Tags: Pam Key, Fox Nation, Gateway Pundit (.com), Elena Kagan, Andrew Breitbart, Drudge Report, Naked Emperor News, Breitbart TV

Category Tags: Media Involvement and Responses, Campaign Finance

The Minnesota Majority Legal Defense Fund logo. It is not known if the misspelling of “defend” is deliberate.The Minnesota Majority Legal Defense Fund logo. It is not known if the misspelling of “defend” is deliberate. [Source: Minnesota Majority / WePay (.com)]The conservative activist group Minnesota Majority issues a report claiming that Senator Al Franken (D-MN) won the hotly contested recount for the Minnesota seat (see June 30, 2009) because of votes cast by felons voting illegally in Minneapolis-St. Paul. According to the report, at least 341 convicted felons who had lost the right to vote cast their votes for Franken in the 2008 race (see November 4-5, 2008). Franken was found to have won the race by 312 votes. If the votes allegedly cast illegally were deducted from the final vote tally, Franken’s opponent Norm Coleman (R-MN) would be the winner, the report says. Minnesota Majority makes its claim after studying publicly available conviction lists and voting records. The group claims that attempts to secure an investigation by state and federal authorities have been “stonewalled.” Minnesota Majority executive director Dan McGrath says: “We aren’t trying to change the result of the last election. That legally can’t be done. We are just trying to make sure the integrity of the next election isn’t compromised.” McGrath complains that prosecutors in Ramsey and Hennepin Counties have ignored their findings, including a list of hundreds of allegedly illegal voters from those counties. A spokesman for the county attorney’s offices says the group’s information is “just plain wrong” and full of errors. McGrath says the group went back and double-checked its records after being told that its findings were wrong. He says: “What we did this time is irrefutable. We took the voting lists and matched them with conviction lists and then went back to the records and found the roster lists, where voters sign in before walking to the voting booth, and matched them by hand. The only way we can be wrong is if someone with the same first, middle, and last names, same year of birth as the felon, and living in the same community, has voted. And that isn’t very likely.”
County Prosecutors: Group's Claims Largely Erroneous - Phil Carruthers, Ramsey County’s lead prosecutor, says his office is taking the allegations seriously and praises the group for doing “a good job in [its] review.” But, Carruthers notes, the group lacks access to nonpublic information, and that information shows that almost all of the names on the list are of eligible voters. For example, Carruthers says, “public records might show a felon was given 10 years probation, but internal records the county attorney has might show that the probation period was cut to five and the felon was eligible to vote.” Carruthers says Ramsey County is filing charges against 28 people for illegally voting, with more charges possible. McGrath says: “Prosecutors have to act more swiftly in prosecuting cases from the 2008 election to deter fraud in the future, and the state has to make sure that existing system, that flags convicted felons so voting officials can challenge them at the ballot, is effective. In 90 percent of the cases we looked at, the felons weren’t flagged. If the state had done that, things might be very different today.” [Fox News, 7/12/2010]
Governor Weighs In, Implying Franken Won Illegally - Two days after the allegations surface in the press, Governor Tim Pawlenty (R-MN) says the organization may have found “credible evidence” of voter fraud. On Fox News, Pawlenty says of the allegedly illegal votes: “I suspect they favored Al Franken. I don’t know that. But if that turned out to be true they may have flipped that election in a very close election.” Wall Street Journal columnist John Fund has stated flatly on Fox that “hundreds of felons” gave Franken the victory. But Carruthers tells a reporter, “Overwhelmingly, their statistics were not accurate.” Deputy Hennepin County Attorney Pat Diamond adds: “It’s produced a lot of smoke. But at the end of the day, I don’t know if it’s going to produce a lot of fire.” Carruthers says that the list of 480 suspected felons was obviously wrong from the outset, and 270 were removed upon a cursory review. Many other cases were examples of mistaken identity, or the list not taking into account felons who had their right to vote restored. The 28 cases flagged by Carruthers for potential prosecution had already been identified before he received Minnesota Majority’s list, he says. Diamond says much the same of the list of alleged illegal voters in Hennepin County.
Allegations Being Made for Political Purposes? - Local reporter John Croman notes that the allegations are being used by conservatives to push for restrictive voter ID laws. He writes: “Valid ID is needed to register, but not to vote. And yet both of the prosecutors [Carruthers and Diamond] pointed out there’s nothing to keep a felon from using legal ID to vote illegally.” While Minnesota Majority is blaming Secretary of State Mark Ritchie (D-MN) for the alleged felon voting, Diamond says Ritchie has worked diligently to make the state’s voting rolls more accurate and current. “He’s gotten the system into this century, so it’s actually much easier to prevent felons from voting now,” Diamond says. “I’m going to trial in August with two cases of felons who voted, that were flagged by election workers.” Law professor David Schultz says Pawlenty’s response is surprising: “One, it makes an assumption that it’s been proven that these felons have voted illegally, which isn’t the case. And, two, it makes the assumption that these felons voted overwhelmingly in favor of Franken.” Schultz says he believes Pawlenty is posturing for his upcoming presidential bid: “There’s a certain segment of the population, people who believe Democrats can’t win unless felons and immigrants vote illegally. He’s trying to appeal to that group to further his presidential campaign.” But if that is the case, Schultz says, Pawlenty is casting aspersions on the integrity of Minnesota’s election system for political gain. [Minneapolis Star-Tribune, 7/14/2010; KARE-11, 7/15/2010]
Months Later, Six Charges Filed - In October 2010, six felons in Hennepin County will be charged with voting illegally (see October 21, 2010).

Entity Tags: Mark Ritchie, Dan McGrath, County of Ramsey (Minnesota), County of Hennepin (Minnesota), Al Franken, David Schultz, John Fund, Tim Pawlenty, John Croman, Pat Diamond, Norm Coleman, Minnesota Majority, Phil Carruthers

Timeline Tags: Domestic Propaganda

Category Tags: Voter Fraud/Disenfranchisement

Minnesota political and sports columnist Jay Weiner writes of his irritation at the recent claims that Senator Al Franken (D-MN) won the 2008 Senate election because felons voted illegally (see July 12-14, 2010). Weiner became a political reporter during the recount between Franken and incumbent Norm Coleman (R-MN—see June 30, 2009), and has written a book on the subject, This Is Not Florida: How Al Franken Won the Minnesota Senate Recount. Weiner notes that the claims by the conservative organization Minnesota Majority are disputed by a number of judges and even, grudgingly, the Coleman campaign’s lawyers. Coleman is now calling Franken the “accidental senator,” Weiner writes, and Governor Tim Pawlenty (R-MN) is casting doubt on Franken’s legitimacy as senator. The story is being pushed by Fox News and by conservative talk show hosts. Weiner notes that research into Minnesota Majority’s claims has proven the claims to be groundless and the organization’s “proof” inaccurate. Weiner says he is angered by the implication that if voter ID laws were in place, those alleged felon votes would not have been cast and Coleman would have won. “This is a long-standing Republican issue to limit voting among the disenfranchised,” Weiner writes. “Republican gubernatorial candidate Tom Emmer has used this controversy to call for picture IDs for voters. But guess what? Convicted felons have driver’s licenses. They have photo IDs. Voter photo IDs wouldn’t halt felons from voting. This Minnesota Majority report is being used for other political reasons.” He accuses Pawlenty of being “fast and loose” with the facts in his eagerness to smear Franken, and cites Pawlenty’s appearance on Fox to falsely accuse a Minneapolis election official of possible fraud (see November 12, 2008), and his erroneous claim that Franken won the election through the auspices of improperly counted absentee ballots. But regardless of what else happens, Weiner concludes, the issue will resurface in 2014, when Franken’s Republican challenger will resurrect the charges to attack Franken’s legitimacy as a sitting senator. [Salon, 7/19/2010]

Entity Tags: Jay Weiner, Al Franken, Fox News, Tom Emmer, Minnesota Majority, Norm Coleman, Tim Pawlenty

Category Tags: Voter Fraud/Disenfranchisement

US Chamber of Commerce President and CEO Thomas Donahue blasts Senate Democrats for attempting to pass the DISCLOSE Act, which, if approved by Congress and signed into law by President Obama, would force the disclosure of the identities of corporate political donors. The DISCLOSE Act was proposed by Congressional Democrats in response to the Supreme Court’s controversial Citizens United decision that allows virtually unlimited and anonymous political spending by corporations and other entities (see January 21, 2010). The USCOC, a trade organization that spends heavily on Republican causes, is one of the “independent” organizations that would be most affected by the DISCLOSE Act (see January 21-22, 2010). Donahue, whose organization is lobbying members of Congress against the bill, says that the bill would infringe upon constitutional guarantees of free speech (see January 21, 2010) because it requires donors to state publicly their political positions, which not every organization or individual wishes to do. “The fact that this assault to the First Amendment is being considered as millions are desperately looking for work is a complete outrage,” Donahue says in a statement. “Despite their best efforts, there is no back room dark enough, no partisan motive strong enough, and no cynicism profound enough to barter away Americans’ freedom of speech.” [The Hill, 7/26/2010] Senate Republicans will successfully block the bill from coming to a vote (see July 26-27, 2010).

Entity Tags: US Chamber of Commerce, Barack Obama, DISCLOSE Act of 2010, Thomas Donahue, US Supreme Court, US Congress

Category Tags: Other Legal Changes, Campaign Finance

Senate Democrats are unable to break a filibuster by Senate Republicans that is blocking passage of the DISCLOSE Act.
Act Would Mandate Disclosure of Donors - The DISCLOSE Act—formally the Democracy Is Strengthened by Casting Light On Spending in Elections (DISCLOSE) Act—would overturn many elements of the Supreme Court’s controversial Citizens United decision that allows virtually unlimited and anonymous political spending by corporations and other entities (see January 21, 2010). If passed, it would have created new campaign finance disclosure requirements and made public the names of “super PAC” contributors (see March 26, 2010). Individuals, corporations, labor unions, and tax-exempt charitable organizations would, under the act, report to the Federal Election Commission (FEC) each time they spend $10,000 or more on campaign-related expenditures. Additionally, all outside groups, including “super PACs,” would have to report the names of donors. Moreover, the legislation would provide for so-called “Stand By Your Ad” requirements mandating that super PACs and other outside campaign groups producing political advertisements disclose the top funders in the ad. The CEO or highest-ranking official of an organization would, under the act, have to appear in the ad and officially “approve” the message. [Open Congress, 6/29/2010; OMB Watch, 7/24/2012]
Unbreakable Filibuster - Even public support from President Obama fails to sway enough Republican senators to vote against the filibuster, as did changes made to the bill by sponsor Charles Schumer (D-NY) designed to assuage some of Republicans’ concerns about the bill. The bill has already passed the House, shepherded through under Democratic leadership against Republican opposition. Democrats have a slim majority in the Senate also, but Senate rules allow the minority to mount filibusters that require 60 votes to overcome, and a number of Republicans would need to break from the Republican pack to vote down the filibuster. Additionally, some conservative senators such as Ben Nelson (D-NE) have not publicly stated their support for the bill. One Republican who had previously indicated she might vote for cloture (against the filibuster), Susan Collins (R-ME), dashed Democrats’ final hopes by saying she would not vote for cloture after all. “The bill would provide a clear and unfair advantage to unions while either shutting other organizations out of the election process or subjecting them to onerous reporting requirements that would not apply to unions,” says Collins spokesman Kevin Kelley. “Senator Collins believes that it is ironic that a bill aimed at curtailing special interests in the election process provides so many carve-outs and exemptions that favor some grass-roots organizations over others. This, too, is simply unfair.” Other so-called Republican moderates such as Olympia Snowe (R-ME) and Scott Brown (R-MA) have previously indicated they would not vote for cloture. Ironically, one of the “carve-outs” in the bill Schumer added was on behalf of the far-right National Rifle Association (NRA), an addition that Schumer says was made to placate Republicans. Schumer says that even if the bill does not pass now, attempts to reintroduce it will be made. The DISCLOSE Act “is one of the most important for the future of our democracy, not just for the next six months but for the next six decades,” he says. White House press secretary Robert Gibbs says: “I don’t know what the final vote will be tomorrow, but I know that you—if you had a sliver of Republicans that thought special-interest giving and corporate influence in elections was… part of the problem, then this bill would pass. Now we get to see who in the Senate thinks there’s too much corporate influence and too much special-interest money that dominate our elections and who doesn’t. I don’t know how it could be any clearer than that.” Senate Minority Leader Mitch McConnell (R-KY) retorts: “The DISCLOSE Act seeks to protect unpopular Democrat politicians by silencing their critics and exempting their campaign supporters from an all-out attack on the First Amendment (see January 21, 2010). In the process, the authors of the bill have decided to trade our constitutional rights away in a backroom deal that makes the Cornhusker Kickback look like a model of legislative transparency.” [Politico, 7/26/2010] The “Cornhusker Kickback” McConnell is referencing is a deal struck in late 2009 by Senate Majority Leader Harry Reid (D-NV) to win Nelson’s support for the Democrats’ health care reform package, in which Nebraska, Nelson’s state, would receive 100 percent government financing for an expansion of Medicare. [Las Vegas Sun, 12/20/2009]

Entity Tags: Harry Reid, Federal Election Commission, Charles Schumer, Ben Nelson, Barack Obama, US Supreme Court, US Senate, Susan Collins, Scott Brown, DISCLOSE Act of 2010, Olympia Snowe, Mitch McConnell, National Rifle Association, Robert Gibbs, Kevin Kelley

Category Tags: Campaign Finance

US Senate candidate Sharron Angle (R-NV) falsely claims that the Democratically backed DISCLOSE Act, a bill that would have imposed some disclosure regulations on corporate and union campaign financiers (see July 26-27, 2010), was passed into law. Angle is challenging Senate Majority Leader Harry Reid (D-NV). The previous day, Angle posted on Twitter that the DISCLOSE Act’s defeat was “a great victory for the first amendment.” But today, Angle joins conservative talk radio host Heidi Harris to claim that the act is actually in effect and she opposes it. Asked about her position on campaign finance, Angle says: “Well I think that the Supreme Court has really made their decision on this, they found that we have a First Amendment right across the board that was violated by the McCain-Feingold act (see March 27, 2002 and January 21, 2010). And that’s what they threw out, was those violations. The McCain-Feingold Act is still in place. The DISCLOSE Act is still in place. It’s just that certain provisions within that they found to be definitely violating the First Amendment. If we didn’t have the DISCLOSE Act there would be a lot of different things that people wouldn’t be able to find out. And certainly you can go to FEC.gov and see where Harry Reid is getting most of his money from special interests.” [Las Vegas Sun, 7/28/2010; TPMDC, 7/28/2010]

Entity Tags: Harry Reid, Sharron Angle, US Supreme Court, DISCLOSE Act of 2010

Category Tags: Campaign Finance

Democrats are aghast at the amount of corporate spending they expect to be used against them in the 2010 elections, according to media reports. The US Chamber of Commerce (see September 20, 2010, September 30, 2010, and October 2010) projects that it will spend $75 million this year, over double its spending of $35 million in 2008, to oppose Democrats running for federal and state office. USCoC officials say that spending could go even higher. Other organizations, such as American Crossroads, a right-wing political group headed by former Bush political advisor Karl Rove (see September 20, 2010 and February 21, 2012), are on track to raise and spend tens of millions, again to fund political activities designed to prevent Democrats from being elected. A report circulating among Democratic Congressional leaders says that some $300 million has been raised for the 2010 campaign, all coming from 15 conservative tax-exempt organizations. Sheila Krumholz of the Center for Responsive Politics says: “A commitment of $300 million from just 15 organizations is a huge amount, putting them in record territory for groups on the right or left. With control of Congress hanging in the balance, this kind of spending could have a major impact.” Chris Van Hollen (D-MD), chairman of the Democratic Congressional Campaign Committee (DCCC), says the amount of corporate funding for Republican political activities is “raising the alarm bell.” The DCCC spent $177 million in all of 2008’s Congressional races. Labor unions and other groups allied with Democrats plan heavy spending of their own, but nothing to compare to conservative corporate funding. The Service Employees International Union (SEIU), for example, plans to spend $44 million on election-related spending this year. Political scientist Anthony J. Corrado Jr. says: “What we are seeing is that major businesses and industries are taking advantage of the recent court ruling and favorable political environment. They are already committing substantially more money than they have in any previous election cycles.” Corrado is referring to the controversial Citizens United Supreme Court decision (see January 21, 2010) that has overturned almost a century’s worth of campaign spending limitations. USCoC officials also point to a 2007 Supreme Court ruling that overturned the ban on political issue advertising by corporations and labor unions close to an election (see June 25, 2007). The Los Angeles Times reports that the heavy corporate fundraising for Republican political interests is driven largely by corporate opposition to the Democrats’ focus on health care reform, and a bill passed in July that established stricter government monitoring and regulation of the financial system. Roger Nicholson of the International Coal Group, a mining company, recently wrote to fellow executives urging them to contribute money to defeat the “fiercely anti-coal Democrats” in Washington, specifically targeting a number of Democrats in Kentucky and West Virginia. Five of the largest health insurers, including Aetna, Cigna, and United HealthCare, are banding together to create and fund a new nonprofit group to help influence elections. The group has not yet been formed, but reports say that it will spend some $20 million to defeat Democrats. [Los Angeles Times, 8/2/2010]

Entity Tags: Karl C. Rove, Anthony J. Corrado Jr., American Crossroads, Aetna, Chris Van Hollen, International Coal Group, Service Employees International Union, US Supreme Court, Los Angeles Times, Roger Nicholson, UnitedHealth Group, Cigna, US Chamber of Commerce, Sheila Krumholz

Timeline Tags: 2010 Elections

Category Tags: Campaign Finance

Research from the media analysis firm Borrell Associates and other sources shows that spending for the 2010 midterm elections will outstrip the record-breaking spending of the 2008 elections, which centered around a presidential contest. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations. It is unprecedented for midterm elections to involve more spending than presidential-year elections. Kip Cassino, vice president of research at Borrell Associates, says the Citizens United decision is directly responsible for the massive upswing in spending. “Unlike a lot of industries in the United States right now, which are seeing some downturns, political spending is absolutely a growth industry,” Cassino says. Corporate money is behind the surge, accounting for what he says is at least a 10 percent jump in advertising. Evan Tracey, president of the Campaign Media Analysis Group, says: “The unwritten charter of these [anonymously funded political] groups is to really be disruptive and try to go in there and turn a race on its head—or put a candidate on the defense. And by that nature, most of those ads that they’re gonna run this fall are gonna be negative ads.” Labor unions account for some of the surge in spending, but most of it comes from corporate donors, from conservative organizations such as the US Chamber of Commerce (see September 20, 2010, September 30, 2010, and October 2010), Americans for Prosperity (AFP—see Late 2004, May 29, 2009, November 2009, and July 3-4, 2010), and American Crossroads, a nonprofit political group headed by former Bush political advisor Karl Rove (see September 20, 2010, February 21, 2012, Late March 2012, and Late May 2012). Senator Robert Menendez (D-NJ) says, “While each of our campaigns has the resources they need to be competitive, we now face shadow groups putting their thumbs on the scale with undisclosed, unlimited, and unregulated donations.” However, national groups are not all of the important players in the spending surge. Tracey says: “We have a lot of little individual state-type groups that are starting to show up in some of the bigger races. And I think they’re going to play a much larger role in the fall.” One group cited in the research is a Nevada-based group called Americans for New Leadership, which has targeted Senate Majority Leader Harry Reid (D-NV) for defeat in a barrage of advertisements aired recently throughout the state. The group says it has spent $300,000 in ads attacking Reid and is prepared to spend more, but has not disclosed from whom that money comes. Senate and House races are seeing more involvement by heavily-funded groups placing ads in local markets for Republican candidates, or attacking Democrats, particularly from AFP, which has already spent some $1.5 million on House races. Craig Holman of the watchdog group Public Citizen says: “In 2004 and 2006, literally 100 percent of the groups were fully complying with the disclosure laws. Today, most groups do not disclose where they’re getting their money from.” The New York Times reports, “The situation raises the possibility that a relatively small cadre of deep-pocketed donors, unknown to the general public, is shaping the battle for Congress in the early going.” Sheila Krumholz of the Center for Responsive Politics observes: “Corporate interests are buying the elections? Oh no, it’s much worse than that. We don’t know who’s buying the election.” [New York Times, 9/13/2010; National Public Radio, 9/16/2010; Think Progress, 9/17/2010]

Entity Tags: Evan Tracey, Americans for New Leadership, American Crossroads, Americans for Prosperity, Craig Holman, Robert Menendez, Borrell Associates, US Chamber of Commerce, Kip Cassino, Karl C. Rove, Sheila Krumholz, Harry Reid

Timeline Tags: 2010 Elections

Category Tags: Campaign Finance

American Crossroads logo.American Crossroads logo. [Source: American Crossroads]American Crossroads, a political advocacy group backed by former Bush administration political adviser Karl Rove, is spending millions on attack advertisements targeting Democrats for the 2010 midterm elections. Ninety-one percent of the funding for American Crossroads comes from three right-wing billionaires. In August, American Crossroads raised $2,639,052. $2.4 million of that, or 91 percent of that total, comes from Trevor Rees-Jones, Robert Rowling, and Carl Linder. Rees-Jones is president of Chief Oil and Gas, a Dallas-based firm; he contributed $1 million in August to go with the $1 million he contributed earlier in the year. Rowling is CEO of TRT Holdings; like Rees-Jones, he gave $1 million in August to go with a previous $1 million contribution. Linder owns American Financial Group (AFG), a Cincinnati-based firm. Linder used to own Chiquita, the fruit corporation, and owns a partial stake in the Cincinnati Reds. AFG donated $400,000 in August. In July, billionaire Jerry Perenchio, who in 2008 chaired presidential candidate Senator John McCain (R-AZ)‘s national finance committee, gave $1 million to American Crossroads. American Crossroads has a partner group, American Crossroads GPS (for Grassroots Political Strategies), that is organized under a section of the tax code that does not require disclosure of donors. The group is raising millions of dollars, but refuses to identify the donors. The two groups were organized earlier in the year by Rove and former Republican National Committee chairman Ed Gillespie. Another political advocacy group, American Action Network, shares a downtown Washington office with the Crossroads group; both are working alongside other right-wing advocacy groups such as Americans for Prosperity and the US Chamber of Commerce. [Salon, 9/20/2010; Politico, 9/20/2010]

Entity Tags: Ed Gillespie, American Crossroads, American Action Network, American Crossroads GPS, Carl Linder, Robert Rowling, US Chamber of Commerce, A. Jerrold Perenchio, Karl C. Rove, Americans for Prosperity, Trevor Rees-Jones

Timeline Tags: 2010 Elections

Category Tags: Campaign Finance

The Tea Party Patriots (TPP—see August 24, 2010), one of the most influential of national “umbrella” tea party organizations, announces the receipt of a $1 million donation for get-out-the-vote (GOTV) efforts. The TPP refuses to disclose the name of the donor. Two thousand eight hundred local tea party groups are eligible for money from the grant, and the TPP says it will distribute all of the monies by October 4. TPP’s Mark Meckler says: “This particular fund is intended to be applied for and spent by the [November midterm] election. The people who get the grants are required to spend them by election day.” TPP policy advisor Ernie Istook, a former Republican congressman, calls the donation “fertilizer for the grassroots.” Istook continues: “If you have a lawn, you water it, you tend to it, you weed it. That’s what’s happening here. And it is unique. I can’t think of anything quite like it happening before.” The TPP has said it will not endorse particular candidates for office, unlike another “umbrella” tea party organization, Tea Party Express and that group’s affiliated PAC. TPP official Jenny Beth Martin says the money is not to be used to endorse or attack individual candidates. Instead, she says: “What we’re doing is what our 2,800 local groups on the ground have been asking us to do. We’re not taking advantage of a loophole. What we’re making sure is that we support the local organizers on the ground.” Meckler adds, “We want to make sure people are out there voting for fiscal responsibility.” However, as the elections approach, tea party groups begin speculating where exactly the money is going. The TPP consistently refuses to disclose what groups receive money, or how much is disbursed. Dee Park of the Moore Tea Citizens in Moore County, North Carolina, is one who wonders about the money. “We wrote what we thought was a terrific proposal, but they didn’t fund it,” she says. No one from the TPP has contacted Park to inform her that her proposal was turned down. Appeals from other tea party groups asking for information about the money disbursement have been ignored—though the TPP regularly sends out appeals for more donations. Rhode Island tea party organizer Marina Peterson is in a similar position to Park; she submits a proposal for five groups in her area, but never hears anything from the TPP. Asked by a reporter if she knows who is receiving grants, she replies, “Wouldn’t we all like to know?” She says she was concerned from the outset about the anonymous nature of the donation, telling the reporter: “How do we know we want to take that money if we don’t know who the person is? What if it was [liberal billionaire] George Soros?” (see January - November 2004) Peterson says that every political organization, including the TPP and local tea parties, should be upfront and transparent about their funding. She recalls asking Meckler via email about the grant, and says that “[h]e went completely on the defensive when I asked him about it.” Meckler later tells Peterson that the TPP would not release information about the grant recipients to “shield” them from any controversy associated with the donation. Two groups do admit to receiving donations. The Chico Tea Party in California received $5,000, which it says it is spending on buying advertising on highway billboards. And the Nevada County, California, Tea Party Patriots received $10,000, which it says it is spending on billboards and newspaper ads. The Nevada County organization is headed by Stan Meckler, Mark Meckler’s father. The Chico organization says 12 groups in California have received money, though it does not disclose their names. Arizona tea partiers say they have used grant money to buy radio and billboard ads, but refuse to disclose amounts. And the TPP’s Florida coordinator Everett Wilkinson says his South Florida Tea Party received funding, but refuses to disclose an amount. Reporter Stephanie Mencimer writes: “This scuffle over the secret donation is symbolic of the internal conflict within the tea party movement. There are tea party activists who believe the movement’s rhetoric about transparency and accountability. But the movement also includes leaders and others who are willing to engage in and tolerate the funny-money games of business-as-usual politics. With the elections likely to enhance the political clout of the tea party movement, this tension between principles and practices is likely to intensify. After all, can tea partiers really claim they are ‘we the people’ when they are being subsidized by secret millionaires and guided by leaders who refuse to be accountable to those very people?” [Slate, 9/21/2010; Mother Jones, 11/1/2010] The donation is later shown to come from Republican financier Raymon F. Thompson, a former CEO who has provided Meckler and Martin with a luxurious private jet which they are using to fly around the country (see October 28, 2010).

Entity Tags: George Soros, Everett Wilkinson, Dee Park, Chico Tea Party, Stephanie Mencimer, Stan Meckler, Tea Party Patriots, Ernest Istook, Mark Meckler, Marina Peterson, Jenny Beth Martin, South Florida Tea Party, Raymon F. Thompson, Nevada County, California Tea Party Patriots

Category Tags: Campaign Finance

The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, and August 30, 2010), pens an 18-page memo inviting some 210 wealthy American corporate and political leaders to a meeting with him and his brother David at the exclusive Rancho Las Palmas resort in Rancho Mirage, California, in January 2011. The theme is how to “combat… the multitude of public policies that threaten to destroy America as we know it… it is up to us to combat what is now the greatest assault on American freedom and prosperity in our lifetimes.… We must stop—and reverse—this internal assault on our founding principles.” The meeting will help plan how to use the prospective Republican gains in the November 2010 elections to “foster a renewal of American free enterprise and prosperity.” The memo references a June 2010 meeting in Aspen, Colorado, where strategies to manipulate and influence the 2010 elections were codified (see June 26-28, 2010). “In response, participants committed to an unprecedented level of support,” Koch writes. He includes the program from the June 2010 meeting. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: Rancho Las Palmas, David Koch, Charles Koch

Category Tags: Campaign Finance

Senate Finance Committee Chairman Max Baucus (D-MT) asks the IRS to investigate a number of private organizations organized under the nonprofit, tax-exempt 501(c)4 and (c)6 status to ensure that they are not violating tax law. Such groups can engage in political activity, such as funding television ads for or against candidates for office, as long as their primary purpose is not politically motivated. Baucus writes in his letter to the IRS that he believes many of these groups, most of whom support Republican candidates and/or attack Democratic candidates, are almost exclusively focused on politics. The tax laws organizations such as Crossroads GPS and Americans for Job Security (AJS) operate under allow them to keep information about their donors secret while simultaneously running advertisements in elections. Baucus asks the IRS to examine whether the groups’ “political activities reach a primary purpose level” and “whether they are acting as conduits for major donors advancing their own private interests regarding legislation or political campaigns, or are providing major donors with excess benefits.” He continues, “Possible violation of tax laws should be identified as you conduct this study,” and adds that the committee plans to “open its own investigation and/or to take appropriate legislative action.” In his letter he notes that an “Alaska Public Office Commission investigation revealed that AJS, organized as an entity to promote social welfare under 501(c)(6), fought development in Alaska at the behest of a ‘local financier who paid for most of the referendum campaign.’ The Commission report said that ‘Americans for Job Security has no other purpose other than to cover money trails all over the country.’ The article also noted that ‘membership dues and assessments… plunged to zero before rising to $12.2 million for the presidential race.’” He also provides information about another, unnamed 501(c)4 group, which “transform[ed] itself into a nonprofit under 501(c)(4) of the tax code, ensuring that they would not have to ‘publicly disclose any information about its donors,’” and engaging primarily in political activity. He asks, “Is the tax code being used to eliminate transparency in the funding of our elections—elections that are the constitutional bedrock of our democracy?” He also writes that the IRS should be concerned “whether the tax benefits of nonprofits are being used to advance private interests.” He concludes by writing that the committee will open its own investigation into the matter. [Politico, 9/29/2010]

Entity Tags: Senate Finance Committee, Internal Revenue Service, Max Baucus, American Crossroads GPS, Americans for Job Security

Category Tags: Campaign Finance

Fred Wertheimer of Democracy 21, an organization devoted to stricter campaign finance reform, writes an impassioned op-ed about the deleterious effects of unchecked corporate money pouring into elections as a result of the Citizens United decision (see January 21, 2010). Wertheimer is also angry about the success of recent Republican efforts to block passage of the DISCLOSE Act, which would have required some accountability for corporate and union donors (see July 26-27, 2010). Wertheimer begins by tracing how drastically the landscape of campaign finance has changed: In 2000, when Congress passed legislation restricting the ability of so-called “527” groups to affect federal elections, the laws passed with heavy bipartisan support (see 2000 - 2005 and June 30, 2000). Only six Republican senators, including current Senate Minority Leader Mitch McConnell (R-KY), voted against the legislation. Last week, when the Senate voted down the latest iteration of the DISCLOSE Act, McConnell led the Republican efforts against the bill, and all 38 GOP senators voted against it. (The latest version of the DISCLOSE Act failed to reach the Senate floor, as Democrats were unable to break a Republican filibuster against the bill.) Wertheimer writes, “Senate Republicans went from 89 percent support for campaign finance disclosure in 2000 to 100 percent opposition to campaign finance disclosure in 2010.” Wertheimer goes on to write: “Ten years after Congress passed campaign finance disclosure for 527 groups by overwhelming bipartisan votes, the campaign finance disclosure issue hasn’t changed nor has the national consensus in the country in favor of disclosure; the votes of Senate Republicans, however, have changed. In 2000, Senator McConnell was a lonely Senate Republican voice against campaign finance disclosure. In 2010, Senator McConnell had 38 Republican Senators voting in lockstep with him to block campaign finance disclosure and to deny citizens information they have a basic right to know.” [Huffington Post, 9/28/2010]

Entity Tags: Fred Wertheimer, Mitch McConnell, DISCLOSE Act of 2010

Category Tags: Campaign Finance

US-Bahrain Business Council logo.US-Bahrain Business Council logo. [Source: US-Bahrain Business Council]The US Chamber of Commerce (USCC), in a methodology made legal by the Citizens United Supreme Court decision (see January 21, 2010), uses foreign-generated funds to disseminate “attack ads” against Democrats running for office in the November midterm elections. The USCC has targeted, among others, Jack Conway (D-KY), Senator Barbara Boxer (D-CA), Governor Jerry Brown (G-CA), and Representatives Joe Sestak (D-PA) and Tom Perriello (D-VA). The USCC, a private trade association organized as a 501(c)(6) that can raise and spend unlimited funds without disclosing any of its donors, has promised to spend $75 million to prevent Democrats from winning in the upcoming elections. The USCC has, as of September 15, aired over 8,000 television ads supporting Republican candidates and attacking Democrats, according to information from the Wesleyan Media Project. The USCC has far outspent any other public or private group, including political parties. The funds for the USCC’s efforts come from its general account, which solicits foreign funding. Legal experts say that the USCC is likely skirting campaign finance law that prohibits monies from foreign corporations being spent in American elections. The USCC has been very active in recent years in raising funds from overseas sources, with such funds either going directly to the USCC or being funneled to the USCC through its foreign chapters, known as Business Councils or “AmChams.” Some of the largest donations come from the oil-rich country of Bahrain, generated by the USCC’s internal fundraising department in that nation called the “US-Bahrain Business Council” (USBBC). The USBBC is an office of the USCC and not a separate entity. The USBBC raises well over $100,000 a year from foreign businesses, funds shuttled directly to the USCC. A similar operation exists in India through the auspices of the USCC’s US-India Business Council (USIBC). The USIBC raises well over $200,000 a year for the USCC. Other such organizations exist in Egypt, Russia, China, Saudi Arabia, Brazil, and other countries, with those nations’ laws making it difficult or impossible for the public to learn how much money is being raised and by which foreign entities. Multinational firms such as BP, Shell Oil, and Siemens are also active members of the USCC, and contribute heavily to the organization. If those firms’ monies are going to fund political activities, the Citizens United decision makes it legal to keep that fact, and the amount of money being used to fund those political activities, entirely secret. It is known that the health insurer Aetna secretly donated $20 million to the USCC to try to defeat the Affordable Care Act (ACA) last year, and News Corporation, the parent of Fox News, donated $1 million to the USCC to use in political activities (see September 30, 2010). The USCC is a strong opponent of Democrats’ efforts to persuade American businesses to hire locally rather than outsourcing jobs to countries such as China and India, and has fought Democrats who oppose free trade deals that would significantly benefit foreign entities. The USCC claims that it “has a system in place” to prevent foreign funding for its “political activities,” but refuses to give any details. [Think Progress, 10/5/2010]

Entity Tags: Joe Sestak, British Petroleum, Barbara Boxer, Aetna, Jack Conway, US-India Business Council, Wesleyan Media Project, US Chamber of Commerce, News Corporation, Royal Dutch/Shell, US-Bahrain Business Council, Siemens, Thomas Perriello, Edmund Gerald (“Jerry”) Brown, Jr

Category Tags: Campaign Finance, Campaign Finance

A heated battle is brewing in Florida over state constitutional Amendments 5 and 6, which if voted into effect in November, would create stricter rules for Florida legislators to follow while redrawing state districts. Proponents say that Florida’s electoral districts are gerrymandered to create a few districts “packed” with African-American voters, and large numbers of districts dominated by white voters. As a result, the white voters, who tend to vote Republican, are able to vote in majorities of Republican lawmakers to the Florida legislature, and the US Congress, year after year. The amendments would ban the practice of drawing political districts to favor or disfavor an incumbent or political party. Amendment 5 pertains to legislative districts, while Amendment 6 deals with congressional districts. The political action committee (PAC) Protect Your Vote (PYV) is one of the most powerful and well-financed groups opposing the new amendments; the amendments are being pushed by groups such as Fair Districts Now, which proposed the amendments and secured enough backing for them to get them on November’s ballots. PYV, which portrays itself as nonpartisan, argues that Amendments 5 and 6 would make redistricting a long, expensive process and would in the long run result in a decrease in minority representation in Congress and the Florida legislature. However, an investigation by the Florida Independent turns up information that may call PYV’s motives into question. The head of the group is former Florida Secretary of State Kurt Browning, a Republican who left the position after state laws governing retirement changed. Browning retired before the new laws could take effect, that would have prevented him from retiring and then returning to his old job and essentially drawing two salaries at once. Browning was a strong advocate for the controversial 2005 Voter Registration Verification Law, the so-called “No Match, No Vote” law that forced new voters to submit identifying numbers to the state before they are allowed to vote (see September 17, 2007). The law effectively disenfranchised almost 8,000 voters, the majority of whom were African-Americans and Hispanics, and over three-quarters of whom were registered Democrats. PYV’s honorary chairman is Representative Corrine Brown (D-Jacksonville), believed by critics to be against the amendments “solely to keep the large majority she enjoys in her district in order to keep her seat safe from challengers,” according to a report by Sunshine State News. Critics say Brown gives PYV a veneer of bipartisanship, but the organization is funded almost entirely by Republican donors and the steering committee is made up of three Democrats and 12 Republicans. Two-thirds of the organization’s funding—some $1.2 million—comes from the Florida Republican Party. The listed address of the organization, in Tampa, is an accounting firm, Robert Watkins & Company; Robert Watkins’s wife Nancy Watkins is a veteran Republican political operative. [Florida Independent, 10/6/2010; Florida Independent, 10/22/2010]

Entity Tags: Protect Your Vote, Corrine Brown, (Florida) Voter Registration Verification Law of 2005, Fair Districts Now, Florida Independent, Robert Watkins, Robert Watkins & Company, Kurt Browning, Sunshine State News, Nancy Watkins

Category Tags: Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement, Voting Rights

The Ninth Circuit Court of Appeals rules 11-0 that Washington State’s felon disenfranchisement law does not violate the Voting Rights Act (VRA—see August 6, 1965, 1970, 1975, April 22, 1980, and June 29, 1989). The case, Farrakhan v. Gregoire, has been in the court system for seven years (see July 7, 2006), and an appeals court panel found by a 2-1 vote that the felon disenfranchisement law did indeed violate the VRA by racially discriminating against voters. The appeals court finds that Washington committed no “intentional disenfranchisement” in its denial of the right to vote to convicted felons, and writes: “Because plaintiffs presented no evidence of intentional discrimination in the operation of Washington’s criminal justice system and argue no other theory under which a section 2 challenge might be sustained, we conclude that they didn’t meet their burden of showing a violation of the VRA. Accordingly, the district court didn’t err when it granted summary judgment against them.” [Brennan Center for Justice, 1/5/2010; Equal Justice Society, 10/14/2010; ProCon, 10/19/2010]

Entity Tags: Voting Rights Act of 1965

Category Tags: Voting Rights, Court Procedures and Verdicts, Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement

American Future Fund logo.American Future Fund logo. [Source: American Future Fund / Talking Points Memo]Three citizen watchdog and pro-campaign finance groups, the Center for Media and Democracy, Protect Our Elections, and Public Citizen, allege that the tax-exempt nonprofit group American Future Fund (AFF) is violating tax law by operating primarily as a political advocacy group. AFF was founded and is operated by Nick Ryan, a former campaign advisor for former Senator Rick Santorum (R-PA) and former Representative Jim Nussle (R-IA), and the head of a political consulting firm, the Concordia Group. Ryan also founded a pro-Santorum “super PAC” called the Red, White and Blue Fund. State Senator Sandra Greiner (R-IA) and prominent Iowa Republican Allison Dorr Kleis serve as the organization’s directors. The group states that it advocates for “conservative and free market ideals.” The New York Times will later confirm that Bruce Rastetter, co-founder and CEO of Hawkeye Energy Holdings, a large ethanol company, provided the seed money for AFF in 2008. Investigations by the Center for Public Integrity will also show that the Pharmaceutical Research and Manufacturers of America (PhRMA) contributed $300,000 to the organization in 2010. The group also received $2.44 million from another 501(c)4 group, the American Justice Partnership, which advocates for “tort reform,” and over $11 million from the Center to Protect Patients’ Rights, another 501(c)(4) organization. The Times will find that AFF-supported candidates win 76 percent of the time, making the group “one of the most effective outside spending groups of the 2010 election cycle.” The law allows 501(c)4 groups (see 2000 - 2005) such as AFF to operate without taxation or legal scrutiny as long as they spend the bulk of their resources on “further[ing] the common good and general welfare of the people of the community” and not political advocacy. Moreover, federal election law provides that if a group’s major purpose is electioneering and it spends at least $1,000 to influence elections, it must register as a political action committee (PAC). A New York Times analysis recently showed that AFF spent 56 percent of its television budget on political advertising, and so far has spent $8.8 million on television ad buys. Its ads attack Democratic candidates in Indiana, Iowa, New Mexico, and West Virginia, and expressly tell voters to cast their ballots against these candidates. And the organization’s Web site says it exists to “target… liberal politicians.” The group says it plans to spend as much as $25 million on the 2010 elections. In a press release, Public Citizen says that AFF, “a conservative nonprofit group pouring money into the 2010 midterm elections, appears to be violating campaign finance law.” The three groups file a complaint with the Federal Election Commission (FEC) asking it to decide whether AFF has violated the tax code. If so, AFF would be forced to re-register as a PAC and be subjected to more disclosure requirements, particular who donates to the organization and how much they donate. Craig Holman of Public Citizen says: “American Future Fund is pulling out the stops to ensure that Republicans are elected this November. That imposes on the group the legal duty to register with the FEC and disclose exactly who is funding all those expenditures.” Protect Our Elections spokesperson Kevin Zeese says: “In this first post-Citizens United (see January 21, 2010) election, corporations and their executives are testing the limits of the law and crossing over into illegality. They cross the line when they use nonprofit groups to urge people to vote ‘for’ or ‘against’ a specific candidate. Political committees violate the law when they accept anonymous contributions for their work. These violations of federal election and tax laws need to be challenged now; otherwise we will see even more anonymous corporate donations trying to illegally manipulate voters into voting against their own interests in future elections.” And Lisa Graves of the Center for Media and Democracy says: “Groups spending millions to attack Americans running for office should not be able to use their tax-free status to hide the truth about which fat cats are behind their ads. Voters have a right to know which corporations or millionaires are laundering their profits through nonprofits like the American Future Fund, whose main business seems to be electioneering. We have joined this complaint to demand that the law be enforced and the truth be told.” [Center for Media and Democracy, Protect Our Elections, and Public Citizen, 10/12/2010 pdf file; Public Citizen, 10/20/2010; Mother Jones, 1/28/2011; iWatch News, 6/21/2012] AFF will continue to operate as a 501(c)4 group in spite of the FEC complaint, and will continue to spend heavily on anti-Democratic ads, many of which will be proven to be false by organizations such as FactCheck (.org). More complaints will be filed against the organization, including a February 2011 IRS complaint by Citizens for Responsibility and Ethics in Washington (CREW). [iWatch News, 6/21/2012]

Entity Tags: Center to Protect Patients’ Rights, Red, White and Blue Fund, Center for Public Integrity, Bruce Rastetter, American Justice Partnership, American Future Fund, Allison Dorr Kleis, Public Citizen, Protect Our Elections, Sandra Greiner, Nick Ryan, Federal Election Commission, Kevin Zeese, Craig Holman, Citizens for Responsibility and Ethics in Washington, Concordia Group, Center for Media and Democracy, Pharmaceutical Research and Manufacturers of America, New York Times, Lisa Graves

Category Tags: Campaign Finance

A conservative super PAC, American Action Network (AAN), launches a $19 million advertizing blitz against Democrats in 22 House districts. AAN was founded by former US Senator Norm Coleman (R-MN) and former Nixon administration official Fred Malek. AAN has already pumped $5 million into races featuring Republican Senate candidates. Founded in February, the group was formed, according to Malek, to “counter what the labor unions are doing on the Democratic side.” The group is split into two parts: the Action Forum, a 501(c)(3), which allows donations to be tax-deductible but limits political activities, and the Action Network, a 501 (c)(4), in which contributions are not deductible or disclosed but the group can advocate for political causes. AAN president Rob Collins says: “This Democrat-controlled Congress has already voted for higher taxes and promises next month to raise taxes on America’s families and businesses. This is simply unacceptable and something we wanted to call attention to.” AAN is part of a larger network of conservative super PACs (see March 26, 2010), including American Crossroads, that plans to spend as much as $50 million on Congressional races. AAN shares office space with American Crossroads. [Politico, 10/13/2010; New York Times, 10/17/2010; CT Mirror, 10/17/2010]
Objectionable Ads - The AAN ads airing in Connecticut draw fire after accusing Democrats Christopher Murray (D-CT) and Jim Himes (D-CT) of voting to provide free health care to illegal immigrants and Viagra to sex offenders. Murray accuses AAN of being linked to a number of Republicans in the Bush administration, and asks who is providing the money for the ads. Campaign finance law allows the donors to organizations such as AAN to remain anonymous. “This is one of the biggest TV buys this district has ever seen,” Murphy says. “And what we deserve to know is who is standing behind it. I want to know. I think that’s what the voters want as well.… These ads on TV right now, fronted by a shadowy, anonymous group of billionaire donors and multi-national corporations are a clear sign of what the difference is in this election.” An AAN spokesman refuses to discuss the finances behind the organization, saying only: “What we do is we comply with the letter of the law. That’s all we have to offer about that.” Murray calls the ad’s allegations “laughable.” Both claims have been debunked by independent fact-checking organizations, though Murray’s opponent Sam Caligiuri (R-CT) says the ad’s content is “verifiable,” and says even if the ad is questionable, Murray has told lies of his own about Caligiuri.
AAN Co-Founder Involved in Criminal Activities as Nixon Administration Official - CT Mirror notes that Malek, a Wall Street millionaire and the co-founder of AAN, was not only a member of the Nixon administration (whose crimes and excesses concerning the Watergate scandal led to a round of campaign finance reforms—see 1974 and May 11, 1976), but was also involved in a recent investment scandal. The New York Times goes further in its examination of Malek, noting that he was heavily involved in the 1972 “Townhouse operation” that raised illegal corporate cash in so-called “slush funds” and distributed the monies in key Senate races (see December 1, 1969, Early 1970, March 23, 1971, and August 18, 1974). Malek, the White House personnel chief in 1972, helped dispense illegal patronage deals to Nixon donors and served as deputy director of CREEP (the Committee to Re-Elect the President), an organization heavily involved in criminal activities. And the liberal news Web site Think Progress notes that Malek was the Nixon administration’s unofficial “Jew counter” (see July 3, 1971 and September 1971) and was part of the administration’s illegal persecution of Jews who worked in the federal government. During the Watergate investigation, Malek admitted that some of CREEP’s activities might have “bordered on the unethical.” Malek worked with American Crossroads co-founder Karl Rove during the Nixon administration, when Rove worked to re-elect Nixon as the executive director of the College Republican National Committee. Malek is a member of the Weaver Terrace Group, an informal amalgamation of Republican strategists from “independent” groups who regularly meet, trade political intelligence, and make joint fund-raising trips. The group is named after the street where Rove used to live. Former Watergate prosecutor Roger Witten says: “It creates all the appearances of dirty dealings and undue influence because our candidates are awash in funds the public is ignorant about. This is the problem that was supposedly addressed after Watergate.” [New York Times, 10/17/2010; Think Progress, 10/18/2010]

Entity Tags: Jim Himes, Christopher Murray, CT Mirror, American Crossroads, American Action Network, Fred Malek, Weaver Terrace Group, Sam Caligiuri, Committee to Re-elect the President, Think Progress (.org), Nixon administration, Rob Collins, Norm Coleman, Roger Witten, Karl C. Rove, New York Times

Category Tags: Campaign Finance

Campaign spending by outside “independent” organizations on Congressional races currently stands at $147.5 million, a 73 percent rise from two years ago, according to information from the nonpartisan Campaign Finance Institute (CFI). In mid-October 2008, Congressional election spending by outside groups was at $85.3 million. In 2006, that number was $32 million. The spending dramatically favors Republicans, with groups supporting GOP candidates spending $105.5 million and groups supporting Democrats spending $42 million. According to the press, the huge spike in spending is traceable to the Citizens United decision that allows corporations and labor unions to spend unlimited funds in campaign activities (see January 21, 2010). The CFI notes that the record-breaking spending “is before the traditionally heavy-spending final weeks of the campaign.” [McClatchy News, 10/18/2010]

Entity Tags: Campaign Finance Institute

Timeline Tags: 2010 Elections

Category Tags: Campaign Finance

Authorities in Hennepin County, Minnesota, charge six convicted felons with voting illegally in the 2008 election. The charges accuse the six of fraud in voting or in registering to vote. The charges come after months of investigation into 110 allegations of voter fraud (see July 12-14, 2010). All six signed a voter registration card on or before November 4, 2008 stating that they had the right to vote because they had not been convicted of a felony or had been discharged from their sentence. [Minneapolis Star-Tribune, 10/21/2010]

Entity Tags: County of Hennepin (Minnesota)

Category Tags: Voter Fraud/Disenfranchisement

Impelled by polls showing that Democrats may not do as badly as predicted in the upcoming November midterm elections, Republican political organizations pour vast amounts of money into tight Senate and House races in the final days, according to a Reuters analysis of data provided by the Wesleyan Media Project and from Democratic organizers. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations (see September 13-16, 2010 and October 2010). Much of the money is targeting three Senate races in Colorado, Kentucky, and California. Republicans are confident that they will gain control of the House of Representatives, but must gain 10 seats to control the Senate, a prospect that is not as likely. Last-minute spending surges are common in elections, but experts say they have never seen so much spending in the last days of a race. Pollster Andrew Kohut of the Pew Research Center is not sure the last-minute surge of spending, almost all of which is going to advertising, will have a major effect. Most voters’ minds are made up by now, Kohut says. Data shows that organizations affiliated with Republicans have outspent their Democratic rivals by more than a 3-1 ratio. In Nevada, “independent” organizations are pouring money into attack ads against Senator Harry Reid (D-NV) and in support of challenger Sharron Angle (R-NV). Late campaign spending is fairly equal, according to the data, and the polls for that race are very tight. In Colorado, “tea party” favorite Ken Buck (R-CO) is losing ground to incumbent Michael Bennet (D-CO), and in response, Republican groups have funneled money into ads supporting Buck and attacking Bennet to create a 2-1 spending ratio in favor of Buck. A similar instance exists in Kentucky, where another tea party favorite, Rand Paul (R-KY), is losing ground to Jack Conway (D-KY), and Republican spending on Paul’s behalf has made for a 2-1 spending ratio in favor of Paul. In California, where popular Democrat Barbara Boxer (D-CA) once had a 2-1 spending advantage over her opponent Carly Fiorina (R-CA), pro-Fiorina groups have recently outspent pro-Boxer groups 5-1. In Pennsylvania, pro-Republican groups are heavily outspending Democrats, largely to support Republican favorite Pat Toomey (R-PA) over Joe Sestak (D-PA). In Delaware, Senate candidate Christine O’Donnell (R-DE), whose campaign has raised large amounts of money from out-of-state financiers, has not received the lavish funding that her Republican colleagues have gotten to defeat her opponent Chris Coons (D-DE). O’Donnell has received some $300,000 from right-wing and tea party groups. But Coons is receiving virtually no support from independent pro-Democratic groups, possibly because polls indicate he will win the election and does not need the last-minute funding support. The elections will be held on November 2. [Reuters, 10/27/2010] The results of the massive spending are mixed. The Republican winners include Paul and Toomey. The Republican losers include Angle, Buck, Fiorina and O’Donnell. [National Public Radio, 11/3/2010]

Entity Tags: Christine O’Donnell, Chris Coons, Wesleyan Media Project, Barbara Boxer, Andrew Kohut, Sharron Angle, Reuters, US House of Representatives, Carly Fiorina, Joe Sestak, Jack Conway, Harry Reid, Rand Paul, Pat Toomey, Ken Buck, Michael Bennet

Category Tags: Campaign Finance

George Pataki speaking at a Revere America event.George Pataki speaking at a Revere America event. [Source: New York Daily News]New York City’s public advocate, Bill de Blasio, is publicly challenging former Governor George E. Pataki for using anonymous contributions to affect elections. De Blasio has managed to persuade several Wall Street firms, including Citibank, Goldman Sachs, JP Morgan Chase, and Morgan Stanley, not to donate money towards political advertising. Now he is criticizing Pataki, who as governor supported disclosure of donors but now, as chair of the political advocacy group Revere America, is using anonymous donations to fund a $1 million advertising campaign against Democrats. In a letter to Pataki, de Blasio writes that it is hypocritical for Pataki to use such donations, saying that “opposing disclosure of your contributors completely contradicts your previous actions and positions as governor of the State of New York.” De Blasio tells a reporter: “I think it’s fair to say Pataki was one of the people doing meaningful work on campaign finance and getting a lot of respect for it. And now, a decade later, he’s in the vanguard of the exact opposite. It’s an extraordinary turnaround.” The letter is also signed by seven members of New York’s Congressional delegation, all Democrats. De Blasio has had no success in persuading any of 16 groups that have spent a combined total of $22 million on campaign advertisements to disclose their donors. Paul Ryan, a lawyer for the Campaign Legal Center, says, “I think it’s entirely appropriate to ask those who are running their organizations to disclose more information.” Pataki says he still believes in disclosure, but says efforts to “boycott, to intimidate, to picket” donors contributing to Revere America have persuaded him to keep their identities secret. Pataki claims not to know which individuals or corporations may be donating to his organization, and says his entire focus is on policy (Revere America opposes health care reform). He calls de Blasio’s letter an “off-putting” act of partisan politics, and mocks de Blasio as “the person who has a job with no responsibilities.” De Blasio’s office indeed has little real power, but de Blasio has used his position as a public official to become a vocal critic of campaign finance practices. He is currently calling on Internet giant Yahoo! to eschew campaign donations, a position the corporation is considering. Ryan notes that the pledges from firms like Yahoo! or Goldman Sachs mean little, as the firms could easily donate anonymously. De Blasio says his efforts are just one part of a much larger struggle. “To me this is the first battle in a long war,” he says. “Before January, in the way of limitations and disclosure, you were fighting a very tense and difficult battle in elections, but the worst you could see from corporate America was conventional weapons. Citizens United (see January 21, 2010) introduced nuclear weapons.” [New York Times, 10/27/2010]

Entity Tags: JP Morgan Chase, Bill de Blasio, Citibank, Goldman Sachs, Paul S. Ryan, George E. Pataki, Revere America, Yahoo!, Morgan Stanley

Category Tags: Campaign Finance, Campaign Finance

In light of a flood of recent media advertisements attacking Democratic candidates paid for by corporate donations, and recent media stories revealing that the US Chamber of Commerce may be using foreign monies to pay for political attack ads against candidates it opposes (see October 2010), AFL-CIO president Richard Trumka says he now believes the country would have been better off if Congress had managed to pass the DISCLOSE Act, a bill that would have forced the disclosure of the identities of corporate and union donors for campaign purposes (see July 26-27, 2010). Trumka and his labor union organization did not support the DISCLOSE Act when it was up for consideration, and Democrats were unable to break a Republican filibuster of the bill in the Senate. “That’d be good for the system, I think,” Trumka tells reporters. “Because the system is awash—there’s more money in the system than there was oil in the Gulf, quite frankly. [Trumka is referring to the recent catastrophic spill of crude oil in the Gulf of Mexico by BP, a multinational oil corporation.] It’s from people that you don’t know. You eventually find out I guess, but it’s this mysterious money coming in and targeting at three, four, five times what either of the candidates are doing.” Trumka says that the union organization never opposed disclosure as an objective: “What we did was say if you’re going to do it, make sure it applies to everybody—that we were being totally disadvantaged while other people weren’t being disadvantaged.” However, three weeks ago, Trumka released a statement saying that the AFL-CIO “must reluctantly oppose [the DISCLOSE Act] because it would impose extraordinarily costly and impractical new record-keeping and reporting obligations on thousands of labor and other non-profit membership organizations with regard to routine inter-affiliate payments that bear little or no connection with public communications about federal elections.” AFL-CIO political director Karen Ackerman says: “What’s heartbreaking is there’s an imbalance here. So there’s not an equal playing field with the amount of money that corporate America has to protect their own interests, and protect their tax breaks, and protect their trade deals, and protect their profit-making… there are not comparable institutions or interests—moneyed-interests—on the side that represents working people.” [TPMDC, 10/12/2010]

Entity Tags: Karen Ackerman, AFL-CIO, DISCLOSE Act of 2010, US Chamber of Commerce, Richard Trumka

Category Tags: Campaign Finance

Mark Meckler and Jenny Beth Martin aboard ‘Patriot One.’Mark Meckler and Jenny Beth Martin aboard ‘Patriot One.’ [Source: Tea Party Patriots / Mother Jones]Some tea party activists question recent trips flown by Tea Party Patriots (TPP) officials Mark Meckler and Jenny Beth Martin. The use of a luxury passenger jet (dubbed “Patriot One” by Meckler and Martin) has been provided by a wealthy donor whom Meckler and Martin refuse to identify. Meckler and Martin are flown in the jet to tea party and TPP events around the nation, telling the assembled event-goers that they are “flying for freedom” and “landing for liberty.” The two officials are accompanied by, among others, an Atlanta filmmaker who documents the trips and posts videos on the TPP’s Web site. Reporter Stephanie Mencimer says the videos “show the tea party leaders traveling in the style of Wall Street investment bankers… hardly a humble display of the usual tea party thrifty pluck.” Georgia tea party member William Temple writes an angry column for the conservative news site the Daily Caller demanding accountability from Meckler and Martin, in which he states: “So what is with Tea Party Patriot’s junket ‘round the nation? Have Tea Party contributions been so forthcoming that they are financing this massive airlift campaign in the skies from sea to shinning [sic] sea, culminating on the west lawn of the nation’s Capitol on November 2? And it is a massive airlift of Pelosi proportions! [Temple is referring to Democratic House Speaker Nancy Pelosi.] More than 30 flights: starting in Green Bay, Wisconsin, on October 21, with two to four flights daily, while accompanied by a ‘gotcha’ film crew to document Jenny Beth and Mark Meckler’s every arrival and departure with on-the-spot interviews as they hob nob with Tea Party Patriot local organizers.… The films are then shamelessly posted on the Tea Party Patriots Web site, and emailed nationally (using their national bank of emails), always with the proverbial admonition reminding the brain-dead that the tea parties are for ‘fiscal responsibility, constitutionally-limited government, and free markets.’ (Huzzah for fiscal responsibility!)” Mencimer and the publication she writes for, liberal magazine Mother Jones, use publicly available information to determine that the owner of “Patriot One” is Republican financier Raymon F. Thompson, a former CEO of the semiconductor company Semitool. Thompson recently sold his interest in Semitool for $364 million. The airplane is a 1982 Dassault Falcon 10, a French-made aircraft similar to a Learjet, that seats four to eight people. The Falcon 10 is registered to Eagle III, a private company in Kalispell, Montana, an area featuring a number of tea party groups as well as armed militia activities. Eagle III is owned by Thompson, who owns a diner in Kalispell. The Falcon 10 was formerly leased by Semitool through Eagle III—in essence, Semitool was leasing it from its CEO. Thompson and his wife have been major GOP donors for at least 15 years, donating over $130,000 to an array of Republican candidates, including militia member and neo-Confederate Derek Skees, currently running for a seat in the Montana House of Representatives. Thompson is also a heavy contributor to the Heritage Foundation, which features TPP board member and former Republican Congressman Ernest Istook as a “distinguished fellow.” Thompson recently hosted a fundraiser for Senator John Thune (R-SD). Meckler has complained that a rival tea party “umbrella” organization, the Tea Party Express, is not a real grassroots organization as he claims his TPP is, saying: “They try to portray themselves as some sort of grass-roots movement, but they are a classic example of what those on the left would call Astroturf. They are fake, they’re not from the grassroots. These are longtime Republican political activists with their own agenda.” Mencimer speculates that a recent anonymous $1 million donation to the TPP which has gone largely untracked (see September 21 - November 1, 2010) may have come from Thompson. [Daily Caller, 10/26/2010; Mother Jones, 10/28/2010]

Entity Tags: Raymon F. Thompson, Derek Skees, Eagle III, Mark Meckler, Stephanie Mencimer, William Temple, Semitool, Jenny Beth Martin, Tea Party Patriots

Category Tags: Campaign Finance

Protesters in Los Angeles demonstrate against Proposition 23 outside a Tesoro refinery in Wilmington, California.Protesters in Los Angeles demonstrate against Proposition 23 outside a Tesoro refinery in Wilmington, California. [Source: Los Angeles Times]The liberal news Web site AlterNet shows that a very small number of wealthy, influential donors are driving campaign efforts to pass Proposition 23, a California ballot initiative that would suspend state legislation designed to help reduce carbon emissions and hold polluters accountable. The legislation, AB 32, is already in effect, and requires California to decrease global warming emissions to 1990 levels by 2020, beginning in 2012. Prop 23, as it is called, would suspend AB 32 until the state’s unemployment rate drops below 5.5 percent for four consecutive quarters. Currently unemployment in California is around 12 percent. AlterNet provides data showing that AB 32 will actually create jobs developing “clean” technologies and energies, an industry sometimes called “green tech.” Venture capitalist Vinod Khosla recently said: “AB 32 created markets. Prop. 23 will kill the market and the single largest source of job growth in California in the last two years.” The funding for the advertising and other political activities pushing Prop 23 comes from two primary sources: Texas oil giant Valero Energy Corporation and Tesoro Corporation. Both companies have refineries in California that make them two of the state’s biggest polluters. The two oil companies are aided by large donations from the Koch brothers, who own oil conglomerate Koch Industries (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, and September 24, 2010). Valero has spent $5 million to bolster Prop 23 and Tesoro has spent $2 million. Flint Hill Resources, a Koch Industries subsidiary, has spent $1 million. Marathon Petroleum has spent $500,000, as has the conservative Adam Smith Foundation of Missouri. Occidental Petroleum has spent $300,000; Tower Energy Group, $200,000; CVR Energy, $150,000; and about $100,000 each has been spent by the Howard Jarvis Taxpayers Association, the National Petrochemical and Refiners Association, and World Oil Corporation. Of the $10.6 million raised so far to push Proposition 23, only 30 percent of it comes from inside California. In contrast, opponents to Proposition 23 have raised $30.6 million to defeat it, with 70 percent of that money coming from inside California. Jorge Madrid of Climate Progress recently warned: “If we allow Prop 23 to succeed, big oil refineries in the state could continue to spew greenhouse gases without strict regulation. Even worse, a victory for big oil in California could mean certain death for greenhouse gas regulation for the rest of the nation.” [AlterNet, 10/30/2010; Los Angeles Times, 11/2/2010] Prop 23 will lose by a 61-39 margin, with analysts noting that the anti-proposition forces gained ground by pointing out the support for the proposition coming primarily from Texas oil interests. Even many of California’s largest oil companies either stayed neutral or opposed the initiative. The anti-proposition forces were fueled primarily by financiers such as San Francisco hedge fund manager Tom Steyer, the National Wildlife Federation and the ClimateWorks Foundation, and green-tech moguls such as Khosla and John Doerr. Governor Arnold Schwarzenegger (R-CA) stumped in opposition to the initiative, attacking the “self-serving greed” of Valero and Tesoro. The Environmental Defense Fund’s Fred Krupp says of the defeat: “It is the largest public referendum in history on climate and clean energy policy. Almost 10 million Californians got a chance to vote and sent a clear message that they want a clean energy future. And this was in an economic downturn. There has never been anything this big. It is going to send a signal to other parts of the country and beyond.” [Los Angeles Times, 11/2/2010]

Entity Tags: Fred Krupp, David Koch, World Oil Corporation, Charles Koch, CVR Energy, Arnold Schwarzenegger, Valero Energy Corporation, Adam Smith Foundation, AlterNet (.org), Tower Energy Group, Vinod Khosla, Tesoro Corporation, Marathon Petroleum, National Petrochemical and Refiners Association, Koch Industries, Howard Jarvis Taxpayers Association, Jorge Madrid, National Wildlife Federation, Proposition 23 (California), ClimateWorks Foundation, Tom Steyer, Occidental Petroleum

Category Tags: Other Legal Changes, Campaign Finance

In an interview with PBS’s Judy Woodruff, Haley Barbour, the chairman of the Republican Governors Association (RGA), falsely claims that Democrats are outspending Republicans in the midterm election campaigns. The elections are tomorrow, November 2. Barbour agrees with projections that Republicans will do very well in tomorrow’s elections, probably taking back control of the US House and perhaps the US Senate as well. Barbour predicts a stronger sweep than the 1994 elections, which put Republicans in control of both houses of Congress, motivated by Americans’ “anger and even fear” at what he calls “the lurch to the left given us by [Democratic House Speaker Nancy] Pelosi and [President Barack] Obama.” Barbour goes on to claim that one difference between 1994 and 2010 is that “this year, we got outspent pretty heavily. The labor unions saw this coming early, and they have poured money in to try to save Democrat seats. And it hasn’t been any secret to the news media or the Democratic incumbents that this was going to be a hard year for them because the president’s policies are unpopular.” Woodruff does not challenge Barbour’s claims. [PBS, 11/1/2010] In reality, Republican and Republican-supporting organizations have outspent Democrats and their supporters by a 3-1 ratio (see September 13-16, 2010, October 2010, and Around October 27, 2010). Data from the nonpartisan Center for Responsive Politics shows that while the Democratic Party does outspend the Republican Party in the 2010 elections, pro-GOP outside groups have vastly outspent labor unions and other organizations supporting Democrats. The four biggest outside groups spending money on the elections—the US Chamber of Commerce, the American Action Network (see Mid-October 2010), American Crossroads, and Crossroads GPS—all spend their money on behalf of Republicans. Together those four groups spend $99.6 million, far more than the $28.1 million spent on behalf of Democrats by the two largest labor unions. American Crossroads and Crossroads GPS intend to continue spending money to attack Obama and the Democrats even after the election. “It’s a bigger prize in 2012, and that’s changing the White House,” says American Crossroads chairman Robert Duncan. “We’ve planted the flag for permanence, and we believe that we will play a major role for 2012.” American Crossroads and other such groups, on both Republican and Democratic sides, intend to continue fundraising in the wake of the midterm elections and begin campaigning almost immediately for the 2012 presidential elections. Privately, some Democratic strategists say they are not sure how they will answer the challenge posed by Republican-supporting “independent” groups and the huge amounts of cash they raise from wealthy corporate donors. Obama’s senior political advisor David Axelrod says that special interests “have driven a huge truck filled with undisclosed cash through a legal loophole to try and buy this election… is it any surprise that this same, stealthy crowd will try to move on to the White House next? Whatever the outcome Tuesday, this issue is not going away.” [New York Times, 10/31/2010; Washington Independent, 11/1/2010; Think Progress, 11/2/2010]

Entity Tags: David Axelrod, American Crossroads, American Action Network, Center for Responsive Politics, US Chamber of Commerce, Robert Duncan, Democratic Party, Haley Barbour, American Crossroads GPS, Republican Party, Judy Woodruff

Category Tags: Campaign Finance

In a somewhat sarcastic column, conservative author Ann Coulter advocates the repeal of the 26th Amendment, which gave 18-year-olds the right to vote (see July 5, 1971), apparently in an effort to make it more difficult to re-elect President Obama. Coulter writes: “[T]he argument for allowing children to vote was that 18-year-olds could drink and be conscripted into the military, so they ought to be allowed to vote. But 18-year-olds aren’t allowed to drink anymore. We no longer have a draft. In fact, while repealing the 26th Amendment, we ought to add a separate right to vote for members of the military, irrespective of age.… Eighteen- to 26-year-olds don’t have property, spouses, children, or massive tax bills. Most of them don’t even have jobs because the president they felt so good about themselves for supporting wrecked the economy.” (Coulter is referring to Obama and the fact that young voters turned out in record-breaking numbers to vote for him in 2008.) Coulter cites research showing that human brains “are not fully developed until age 25 and are particularly deficient in their frontal lobes, which control decision-making, rational thinking, judgment, the ability to plan ahead and to resist impulses. Unfortunately, we didn’t know that in 1971. Those of you who have made it to age 26 without dying in a stupid drinking game—and I think congratulations are in order, by the way—understand how insane it is to allow young people to vote. It would almost be tolerable if everyone under the age of 30 just admitted they voted for Obama because someone said to them: ‘C’mon, it’s really cool! Everyone’s doing it!’ We trusted them, and now we know it was a mistake.” Except for 1980, when young voters voted for Ronald Reagan and Jimmy Carter in almost equal amounts, young voters have, Coulter writes, “consistently embarrassed themselves,” presumably by voting for Democrats. The 2008 results, Coulter writes, prove that “[t]oday’s youth are the infantilized, pampered, bicycle-helmeted children of the Worst Generation. They foisted this jug-eared, European socialist on us and now they must be punished. Voters aged 18 to 29 years old comprised nearly a fifth of the voting population in 2008 and they voted overwhelmingly for Obama, 66 percent to 31 percent. And it only took 12 to 14 years of North Korean-style brainwashing to make them do it! At least their teachers haven’t brainwashed them into burning books or ratting out their parents to the Stasi yet. (Of course, before teaching them book-burning, at least their professors would be forced to teach them what a book is.) It would make more sense to give public school teachers and college professors 20 votes apiece than to allow their impressionable students to vote.… Young people voted for Obama as a fashion statement.… Liberals fight tooth-and-nail to create an electorate disposed to vote Democratic by, for example, demanding that felons and illegal aliens be given the vote. But it’s at least possible that illegal aliens and criminals pay taxes or have fully functioning frontal lobes. Republicans ought to fight for their own electorate, which at a minimum ought to mean voters with fully functioning brains and the possibility of a tax bill. Not old enough to buy your own health insurance, not old enough to vote.” [Town Hall (.com), 11/10/2010]

Entity Tags: Ann Coulter, Barack Obama

Category Tags: Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement, Voting Rights

A group of Democratic donors, shaken from the defeat the party suffered in the November midterm elections, meets in a Washington hotel to discuss how to counter the huge influx of corporate spending that helped defeat dozens of Democrats and give control of the US House of Representatives back to Republicans. Outside conservative groups such as the US Chamber of Commerce, the American Action Network (see Mid-October 2010), and American Crossroads/Crossroads GPS outspent Democratic groups by more than a two to one ratio. The donors are split on whether to try to emulate their opponents by raising as much money as possible from wealthy corporations and donors, or continuing down their traditional path of funding their campaign efforts via labor unions and organizations such as the Sierra Club. If they decide to pursue corporate cash, some argue, they will be viewed as hypocrites in light of Democrats’ almost-uniform opposition to the 2010 Citizens United decision, which “opened the floodgates” for unlimited corporate and labor donations (see January 21, 2010). One of the fundamental problems, Democrats note, is that while unions are allowed to contribute unlimited funds just as corporations do, unions, which traditionally support Democrats, are far less wealthy than their corporate counterparts. And despite record-breaking fundraising by the Obama presidential campaign in 2008, most corporations donate to Republicans. The donors are not expected to come up with simple answers as they begin to strategize for 2012, where Republicans are expected to raise and spend an unprecedented half-billion dollars trying to defeat President Obama. Moreover, the White House has sent decidedly mixed messages on the subject. During the 2008 race, the Obama campaign instructed an independent progressive “527” PAC, the Fund for America, to shut down its operations after it began releasing attack ads against Obama’s opponent, Senator John McCain (R-AZ). The Obama campaign did not want independent organizations conducting their own operations, but wanted full control of the campaign message. And campaign leaders said they wanted to win with small individual contributions from ordinary citizens, not with massive corporate donations. The White House’s opposition to such outside funding continued through 2010, and as a result, corporate donations to Democratic-supporting groups were far outstripped by Republican donations. Since then, Obama’s top political advisor David Axelrod has indicated the White House would support liberal donors’ independent efforts to counter Republican political donations, but many Democratic donors still believe the Obama administration is not fully behind those efforts. A Democratic strategist who refuses to be identified says: “By and large, the political people in the Obama firmament really have disdain for outside groups. They think they whine and snivel and make all these demands and don’t produce very much.” Some liberal donors and organizations are ignoring the resistance from the White House and making their own plans, such as David Brock, the founder of Media Matters for America (MMFA), who is considering forming his own 527 (see 2000 - 2005) for 2012. Another Democratic activist, Joan Fitz-Gerald of the umbrella group America Votes, says Democrats cannot depend on the courts or Congress to rein in corporate spending, noting that Congressional Democrats failed to get the DISCLOSE Act, a campaign finance reform measure, to the floor of the Senate for a vote (see July 26-27, 2010). Fitz-Gerald says Democrats must adapt to the new political landscape or risk another trouncing in 2012. However, she recommends working through existing progressive organizations more than using hastily formed PACs and 527s funded by one or two wealthy sources. Unions and environmental groups have large, citizen-based funding sources, whereas Republican organizations are often funded by a small group of wealthy donors who bankroll numerous such organizations. Those organizations, she says, lack credibility with voters. The traditional grassroots-based organizations, she says, “are trusted messengers, whether they’re a union that someone belongs to or a group that people have been a member of for many years. At some point the American people, as they see these ads pushing this right-wing agenda, they’re going to ask: ‘Who are these people? What’s the goal of American Crossroads?’” But the funding garnered by the right made the difference in the 2010 elections, Democratic donors agree. Mike Palamuso of the League of Conservation Voters recalls, “For every $500,000 we spent, it felt like American Crossroads spent another $5 million.” Many agree with Democratic political strategist Harold Ickes, who says: “Is small money better? You bet. But we’re in a f_cking fight. And if you’re in a fistfight, then you’re in a fistfight, and you use all legal means available.” [Mother Jones, 11/15/2010]

Entity Tags: David Brock, American Action Network, America Votes, American Crossroads, David Axelrod, US House of Representatives, Sierra Club, Harold Ickes, Joan Fitz-Gerald, US Chamber of Commerce, American Crossroads GPS, Mike Palamuso, Obama administration

Category Tags: Campaign Finance

Democrats in Congress are contemplating using the Constitutional amendment process to overturn the controversial Citizens United ruling by the Supreme Court that allows unlimited corporate spending on elections (see January 21, 2010). A new poll from Public Polling Policy as commissioned by the Progressive Change Campaign Committee (PCCC) finds that a plurality of voters would support such an amendment. Forty-six percent of voters surveyed agreed that “Congress should consider drastic measures such as a Constitutional amendment overturning the recent Supreme Court decision allowing unlimited corporate spending in elections.” Thirty-six percent disagreed, and 18 percent had no opinion. Such an amendment would likely fail in Congress, as it would require a two-thirds majority in both chambers and then ratification by three-quarters of the states. Representative Donna Edwards (D-MD) wrote such an amendment, in draft form, the evening that the Citizens United decision was announced. Her proposed amendment reads: “The sovereign right of the people to govern being essential to a free democracy, Congress and the States may regulate the expenditure of funds for political speech by any corporation, limited liability company, or other corporate entity. Nothing contained in this Article shall be construed to abridge the freedom of the press.” She says that there have been times in American history that such amendments catch the public attention and move quickly into law. “The process is very rigorous, and it should be,” she says. “But there have been plenty of examples of amendments to the Constitution that have happened, actually, with fairly rapid-fire when they catch on.” She adds: “I really concluded that the Supreme Court actually put the challenge out to us, here in the Congress. They said, you know, you could make a judgment that this is not really good for the system, but the fact is that the Constitution doesn’t allow you to regulate this. Congress, you have no—the Court told us directly—Congress, you have no authority to regulate. And when the Court says that so directly, it only leaves us one choice.” Two prominent Senate Democrats, John Kerry (D-MA) and Max Baucus (D-MT), support the amendment. A Baucus spokesperson says, “Max is always willing to work with anyone toward the common goal of making sure Montanans’ voices don’t get drowned out by out-of-control corporate campaign donations.” PCCC co-founder Adam Green says: “It’s time to stop thinking small-bore. The solution to Citizens United is not merely disclosure, it’s to overturn Citizens United—and even last November’s Republican-skewed electorate agrees.” Edwards says that Democrats should embrace the concept that the Constitution is a political ground worth fighting on. “A lot of progressives are not accustomed to using the mechanisms of the Constitution,” she says. “The right has used—has tried to do that an awful lot of times on a whole range of different things in state legislatures and across the board. And as progressives, we’re not accustomed to doing that, and this is one instance, though, where the populist demand is there, and our energy and our policy has to match that demand and a Constitutional amendment does that.” [Huffington Post, 11/23/2010]

Entity Tags: John Kerry, Adam Green, Donna Edwards, Public Polling Policy, US Congress, US Supreme Court, Max Baucus

Category Tags: Campaign Finance, Other Legal Changes, Campaign Finance

Tim Phillips (L) and David Koch, together at an Americans for Prosperity event.Tim Phillips (L) and David Koch, together at an Americans for Prosperity event. [Source: Americans for Prosperity]Oil billionaire and conservative activist David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, and September 24, 2010) attends the 112th Congress’s swearing-in ceremony, accompanied by Tim Phillips, the head of the Koch-financed Americans for Prosperity (AFP—see May 29, 2009) and a number of current and former Koch Industries lobbyists, including Nancy Pfotenhauer. The event marks the ascendance of Republicans to the majority of the House, and the selection of John Boehner (R-OH) as speaker of the House. After the ceremony, Koch asks Frank Guinta (R-NH), a freshman Republican and “tea party” member elected in part by lavish AFP spending on his behalf, if he will attend a party that Koch is throwing for Republican Congressional members. Guinta affirms that he will attend. Lee Fang, a reporter for Think Progress who observes the Koch-Guinta conversation, speaks to Koch after the two conclude their discussion. Fang identifies himself as a Think Progress reporter and asks Koch what he expects from the Boehner-led Congress; Koch replies, “Well, cut the hell out of spending, balance the budget, reduce regulations, and, uh, support business.” Phillips immediately intervenes, identifying Fang to Koch as “a good blogger on the left, we’re glad to have him—” but Fang continues interviewing Koch. During the relatively brief interview, Phillips repeatedly attempts to push Fang’s cameraman Scott Keyes away from Koch, and shouts into Keyes’s camera, in an apparent attempt to disrupt the interview. However, Koch is cooperative with being interviewed. Koch is apparently proud of the work being done by AFP and says, “We’re going to do more too in the next couple of years.” Fang asks Koch if he is proud of the tea party movement, and Koch replies: “Yeah. There are some extremists there, but the rank and file are just normal people like us. And I admire them. It’s probably the best grassroots uprising since 1776 in my opinion.” Koch is hesitant to answer questions about “climate change,” agreeing only that “[c]limate does fluctuate,” but refusing to answer questions about the effect of carbon pollution on the climate. Instead, he says that any attempts to regulate carbon emissions will “really damage the economy.” Fang concludes by asking about the Citizens United decision that allows unlimited corporate spending on elections (see January 21, 2010). According to Fang, Koch looks uncomfortable discussing the subject and is quite reticent. Koch refuses to answer when Fang asks him about a recent meeting he sponsored with former Fox News talk show host Glenn Beck “and several other conservatives” (see June 26-28, 2010). While Phillips continues to interrupt and chide Fang for asking about the Citizens United decision, Koch refuses to answer Fang’s question, “Could you tell the public what you discussed at that meeting?” [Think Progress, 1/5/2011; Think Progress, 1/6/2011; Think Progress, 1/7/2011; Think Progress, 1/10/2011]

Entity Tags: Koch Industries, David Koch, Americans for Prosperity, Frank Guinta, John Boehner, Scott Keyes, Glenn Beck, Tim Phillips, Nancy Pfotenhauer, Lee Fang

Category Tags: Campaign Finance

Governor Rick Scott (R-FL) withdraws a request to have the federal government approve two new Florida redistricting amendments. Under the Voting Rights Act (VRA—see August 6, 1965 and June 29, 1989), the Justice Department (DOJ) must approve any redistricting changes made by Florida to make sure they do not diminish minority voting access. Amendments 5 and 6 were approved by 63 percent of Florida voters in November 2010, the same election that awarded Scott the governorship. The amendments impose new standards for legislators to follow for redistricting in 2012. Then-acting Secretary of State Dawn Roberts submitted the new standards to the DOJ for approval. Scott does not explain his withdrawal, but media reports speculate that he is working with Florida Republicans, who have challenged the new amendments in court. Scott replaced Roberts with former Secretary of State Kurt Browning, the head of Protect Your Vote, an organization which led the opposition to Amendments 5 and 6. Scott only says: “One of the things that we’re looking at is the amendments that were passed, how they’re going to be implemented. We want to make sure that with regard to redistricting, it’s fair, it’s the right way of doing it. So it’s something I’m clearly focused on.” Of Browning, he says, “My agents will do everything we can to make sure it’s fairly done.” The Florida Department of State denies any involvement by Browning in the decision to withdraw the request. Scott’s spokesman Brian Hughes says, “This withdrawal in no way impedes the process of redrawing Florida’s legislative and Congressional districts.” Florida Democrats say Scott is attempting to delay or block implementation of the amendments. Fair Districts Now, the organization that proposed the amendments, issues a statement accusing Scott of trying to subvert the will of the people. It says: “Within its first days in power, the new administration of Governor Rick Scott, through its Department of State, took extraordinary steps to thwart the will of the overwhelming majority of Florida voters who voted for redistricting reform in Florida. On, November 2, 63 percent of Florida voters amended the Florida Constitution to include new non-partisan redistricting standards. When new laws affect voting as these do, the Voting Rights Act requires that the standards be reviewed and ‘pre-cleared’ by the Justice Department (DOJ). It is the duty of the state to request DOJ pre-clearance. Governor Crist ordered that a formal request for pre-clearance be filed. The Florida secretary of state’s office filed that request on December 10, 2010. On January 7, 2011, as one of its first acts, the new administration of Governor Rick Scott, through its Department of State, in an apparent attempt to thwart the will of the voters, wrote to DOJ withdrawing the amendments from review.” Fair Districts Now may sue Florida to have the new standards reviewed by the DOJ. Senate Democratic Leader Nan Rich says Scott should follow the “will of the voters,” and adds: “The governor got elected with 48 percent and he calls that a mandate. I think that the amendment passing with 63 percent is definitely a mandate.” NAACP board member Leon Russell, who supports the two amendments, says Scott is abusing his power “to prevent implementation of these needed reforms.” Regardless of what is and is not done, the redistricting plans will have to receive “pre-clearance” under the VRA before being implemented. Scott does not inform the media of his withdrawal, and reporters do not learn of it until almost the end of January. Scott makes the withdrawal three days after being sworn in as governor. [Miami Herald, 1/25/2011; The Ledger, 1/25/2011; Florida Independent, 1/25/2011]

Entity Tags: Leon Russell, Dawn Roberts, Charles Joseph (“Charlie”) Crist, Jr, Brian Hughes, Fair Districts Now, Kurt Browning, Protect Your Vote, Rick Scott, US Department of Justice, Voting Rights Act of 1965, Nan Rich, Florida Department of State

Category Tags: Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement, Voting Rights

House Republicans rush a bill to the floor for a vote to eliminate all public funding of the presidential election. The bill, if passed by the Senate and signed into law by President Obama, would eliminate one of the few remaining public funding methodologies for federal elections, and, critics say, give wealthy corporate and individual donors even more influence over elections. Public financing of presidential elections was made law by the 1971 Federal Election Campaign Act (FECA—see February 7, 1972 and 1974) and upheld by the Supreme Court (see January 30, 1976). The bill comes to a vote almost exactly a year after the Supreme Court allowed corporations and labor unions to make unlimited donations to political organizations (see January 21, 2010). The bill, HR 359, was sponsored by Representative Tom Cole (R-OK) in June 2009 and cosponsored by 17 other House members, all Republicans. It would eliminate the Presidential Election Campaign Fund and the Presidential Primary Matching Payment Account. The Republican House leadership did not hold hearings on the bill, nor allow it to be debated in committee. Representative Chris Van Hollen (D-MD) calls the bill “a sneak attack on the system,” and notes that the Republicans had pledged to observe “transparency and openness,” but instead are pushing through such a transformative bill without allowing debate. The bill passes the House on a 239-160 vote, with the Republican majority overriding the Democratic minority. Ten Democrats vote for the bill and one Republican votes against it. Senate Minority Leader Mitch McConnell (R-KY) has already introduced his version of the bill in the Senate, though Senate Democrats say the bill has no chance of passing; Senate Majority Leader Harry Reid says through a spokesperson that the bill will never be brought up for a vote. [Mother Jones, 1/24/2011; Raw Story, 1/25/2011; CNN, 1/26/2011; National Public Radio, 1/27/2011; Bloomberg, 1/27/2011]
Repair or Eliminate? - Presidential candidates who accept public funding must agree not to accept private donations in the fall campaign. Every presidential candidate from 1976 to 2008 has accepted public funding. In 2000, George W. Bush (R-TX) did not take public financing for his primary campaign, and in subsequent years no presidential nominee has taken such funding. In 2008, Barack Obama (D-IL) declined to take public financing for his general election, the first presidential nominee to do so. Republicans claim the elimination of the public funding program would save the government between $520 and $617 million over the next 10 years. Meredith McGehee, policy director at the Campaign Legal Center, says the public financing system needs to be updated. It was created in 1976, she notes, and does not reflect the needs of 21st-century candidates. Lawmakers from both parties have attempted, without success to introduce legislation to update the system. McConnell says that Americans do not believe in the PECF, citing declining public participation. The program is funded by a $3 check-off on individual tax returns; in 1980, almost 29 percent of tax returns carried the check-off, while in 2007 only 8.3 percent of tax returns checked off the donation. “In a time of exploding deficits and record debt, the last thing the American people want right now is to provide what amounts to welfare for politicians,” McConnell says. House Democrats have introduced legislation that would modify and update the PECF instead of end it. One of that legislation’s sponsors, David Price (D-NC), says, “Dare we forget what Watergate was all about?” (Price is referring to the post-Watergate origins of the PECF.) “President Nixon’s Committee to Re-Elect the President, fueled by huge quantities of corporate cash, paid for criminal acts and otherwise subverted the American electoral system. Let’s not return to the darkest days of our democracy.” [Mother Jones, 1/24/2011; CNN, 1/26/2011; National Public Radio, 1/27/2011; Bloomberg, 1/27/2011]
Obama Administration Opposes Bill - The Obama administration strongly opposes the bill, saying that the public financing system should be improved rather than eliminated. In a statement, the White House says: “The presidential election public financing system was enacted in the aftermath of the Watergate scandal to free the nation’s elections from the influence of corporations and other wealthy special interests. Rather than candidates having to rely on raising large sums of private money in order to run, the system provides qualifying presidential candidates with the option of accepting matching funds in the primary and a public grant in the general election.… H.R. 359 would kill the system, not strengthen it. Its effect would be to expand the power of corporations and special interests in the nation’s elections; to force many candidates into an endless cycle of fundraising at the expense of engagement with voters on the issues; and to place a premium on access to large donor or special interest support, narrowing the field of otherwise worthy candidates.” [Raw Story, 1/25/2011]
Divided Response from Lawmakers - Representative Eric Cantor (R-VA) says after the bill passes that voting it into effect “should be a no-brainer.” House Minority Leader Nancy Pelosi (D-CA) says that Congress “should come together to ensure that the American people are heard, that they are heard and that they are not drowned out by special interest dollars.” Republicans such as Aaron Schock (R-IL) call Democrats and the Obama administration “hypocrites” because in 2008, Obama turned down public financing. Schock says, “It was President Obama who killed it and made a mockery of public financing of president campaigns with his arrogant pressing of self advantage.” David Price (D-NC) makes an angry rejoinder, saying: “Talk about having it both ways. [Schock] comes onto this floor to condemn President Obama for opting out of the system, and then he proposes to abolish the system so that everybody has to opt out.” Cole also condemns Obama for not taking public financing in 2008, and says he believes public financing of elections should be illegal, but goes on to say that he supports Republicans who take public financing because it is a legal option. Lynn Woolsey (D-CA) says: “Special interest money is having a corrosive effect on our democracy, eating away at the people’s confidence in their government and their elected representatives. The one beacon of light in this system is the public financing of presidential campaigns. It is, I would remind everyone, a voluntary system.” “This is an attempt to finish the job that the Supreme Court started with the Citizens United decision,” says Senator Charles Schumer (D-NY). Schumer chairs the Senate Rules Committee, which has jurisdiction over campaign finance legislation. “It would bust one of the last dams protecting our election system from an uncontrolled flood of special-interest money.” [CNN, 1/26/2011; National Public Radio, 1/27/2011; Bloomberg, 1/27/2011]
Campaign Finance Reform Advocates Critical of Bill - David Arkush of the citizens advocacy group Public Citizen says in a statement, “A vote for HR 359 is a great way to tell the American people that you want to give corporations more power over our government rather than make democracy work for ordinary Americans.” Craig Holman of Public Citizen says of the bill: “Make no mistake about it: The Republican leadership’s legislation to eliminate public financing is an attack not just on the presidential public financing system, but also an attack on congressional public financing proposals. To ensure that the public’s voice can be heard against the corporate onslaught, we need to expand public financing of elections, not kill it.” Campaign finance reform advocate Fred Wertheimer of Democracy 21 calls the bill “a gross abuse of the legislative process.” [Mother Jones, 1/24/2011; Raw Story, 1/25/2011] The nonpartisan Public Finance Action Fund, which advocates for public financing of state and federal elections, says in a statement: “These efforts are not about saving taxpayer money, they are about giving corporate donors even more access than they enjoy today. We hope these measures don’t advance any further.” [CNN, 1/26/2011]
Bill Dies in Senate - The bill will, as expected, not pass the Senate, which is under Democratic control. A similar bill will be introduced in December 2011 (see December 1, 2011), again pass the House, and die in the Senate. [Real Clear Politics, 12/1/2011]

Entity Tags: David E. Price, US Senate, US House of Representatives, Craig Holman, Aaron Schock, Barack Obama, Chris Van Hollen, David Arkush, Charles Schumer, Thomas Jeffery Cole, Public Finance Action Fund, US Supreme Court, Presidential Election Campaign Fund, Presidential Primary Matching Payment Account, Federal Election Campaign Act of 1972, Eric Cantor, Fred Wertheimer, George W. Bush, Harry Reid, Mitch McConnell, Lynn Woolsey, Obama administration, Meredith McGehee, Nancy Pelosi

Category Tags: Campaign Finance

The progressive magazine Mother Jones reports on Congressional Democrats’ plans to curb the effects of the Supreme Court’s Citizen United decision, which allows unlimited contributions to campaign organizations by corporate and union donors (see January 21, 2010). Last year, Senate Republicans refused to allow a campaign finance reform bill, the DISCLOSE Act, to come to the floor for a vote (see July 26-27, 2010). Now Democratic leaders say they are considering filing challenges to the nonprofit tax statuses of many of the groups that were so influential in the 2010 elections. Representative Chris Van Hollen (D-MD) tells a Mother Jones reporter about the plan. According to Van Hollen, two of the groups they plan to target are Karl Rove’s Crossroads GPS and the American Action Network (AAN—see Mid-October 2010), headed by former Senator Norm Coleman (R-MN). Together, the two groups spent over $43 million supporting conservative candidates and targeting Democrats, accounting for some 23 percent of all outside conservative spending between them. According to Van Hollen, “People are looking at different legal strategies through the courts because there’s emerging evidence that these groups have abused the rules.” Representative David Price (D-NC) agrees. “I think there are ample goals for challenging the way those groups have acted,” he says. Crossroads GPS spokesperson Jonathan Collegio says in return, “Van Hollen is irresponsibly making claims on zero evidence whatsoever and this is extremely irresponsible for an elected official holding high office.” No one from AAN is willing to respond to the Mother Jones reporting. Both Crossroads GPS and AAN, like many other such groups, are organized under the IRS’s 501(c)4 tax status—tax-exempt, not-for-profit groups whose purpose under the IRS code is “primarily to further the common good and general welfare of the people of the community” (see 2000 - 2005). The law allows such groups to engage in political advocacy, such as running ads for or against candidates, but such “electioneering” activities must not be those groups’ “primary activity.” As far as is known, Crossroads GPS and AAN have no other purpose except electioneering. 501(c) groups do not have to register as political action committees (PACs) and are allowed to conduct their business with very little outside scrutiny. However, if the Federal Election Commission or the IRS determine a group has violated the rules, that group would be forced to register as a PAC and disclose the sources of its funding. If the Democrats challenge the status of these groups, they would be following in the footsteps of private organizations. A coalition of public advocacy groups has filed complaints against Crossroads GPS and another 501(c)4 group, American Future Fund (AFF—see October 12, 2010), claiming that their primary functions are, according to the Crossroads GPS complaint, to “influence the 2010 federal elections and to elect Republicans to office.” The complaints are still pending. In September 2010, Senator Max Baucus (D-MT) asked the IRS to examine several 501(c) groups to “ensure that political campaign activity” wasn’t their primary activity (see September 28, 2010). [Mother Jones, 1/28/2011]

Entity Tags: David E. Price, American Crossroads GPS, American Action Network, American Future Fund, DISCLOSE Act of 2010, Max Baucus, Norm Coleman, Jonathan Collegio, Karl C. Rove, Chris Van Hollen, Mother Jones, US Congress

Category Tags: Campaign Finance

The media reports that Virginia “Ginni” Thomas, a former Republican campaign operative and the former head of a tea party organization, has become the head of a lobbying and political consulting firm, Liberty Consulting. The firm boasts that Thomas’s “experience and connections” will assist clients with “governmental affairs efforts” and political donation strategies. Critics say Thomas is in the midst of an enormous conflict of interest, because her husband, Clarence Thomas, is a Supreme Court justice. She left the tea party group in November 2009 because of questions that her leadership of the group, Liberty Central, which actively worked to defeat Democrats, was not appropriate for the wife of a sitting Court justice. Thomas has met with almost half of the 99 Republican freshmen in the House and Senate, according to an email she sent out to congressional chiefs of staff last week in which she called herself “a self-appointed ambassador to the freshmen class and an ambassador to the tea party movement.” Ann Pearson of the government watchdog organization Common Cause says that Thomas’s position at a lobbying and consulting firm “show[s] a new level of arrogance of just not caring that the Court is being politicized and how that undermines the historic image of the Supreme Court as being above the political fray.… It raises additional questions about whether Justice Thomas can be unbiased and appear to be unbiased in cases dealing with the repeal of the health care reform law or corporate political spending when his wife is working to elect members of the tea party and also advocating for their policies.” Some Republican lawmakers are uncomfortable with Thomas’s new position, with one senior House Republican aide criticizing Thomas for attempting to “cash in” on her ties to the tea party movement. Republican House freshman David Schweikert (R-AZ), who won his election in part because of support from tea party groups and was endorsed by Liberty Central, says he has not met Thomas and knows nothing of her background. “This is the spouse of Justice Thomas?” he says when asked about the situation by a reporter. “No, I’ve never met her. It’s not something I’ve heard about. And I hang out with a lot of freshman.” So far, only one Republican freshman will publicly admit to scheduling a meeting with Thomas. Thomas used to be an aide to former House Majority Leader Dick Armey (R-TX), who until recently headed the tea party financing organization FreedomWorks (see August 14, 2009). She has also worked as a staffer at the US Chamber of Commerce, a trade organization that contributes heavily to Republican causes (see January 21-22, 2010), and at the conservative Heritage Foundation. In 2009 she founded Liberty Central, which she described as a group that would bridge the gap between the conservative Republican establishment and the anti-government tea party movement. She eventually stepped down after questions were raised about her position’s impact on her husband’s appearance of impartiality, and the group was merged into another tea party organization (see November 2009 - November 2010). She filed incorporation papers for Liberty Consulting within a day of news reports about her departure from Liberty Central. She has told conservative news source Daily Caller that she intends to continue working for the group that bought Liberty Central, the Patrick Henry Center for Individual Liberty, and will “help them in any way I can think of, whether it’s lobbying on the Hill or connecting with the grass roots, or helping speak or write or fundraise.” However, lobbying records show no registration for Thomas, Liberty Consulting, Liberty Central, or the Patrick Henry Center. Liberty Central general counsel Sarah Field refuses to answer questions about whether Thomas is being paid through Liberty Consulting as a consultant. A source familiar with the Thomases and with Capitol Hill Republicans says her sojourn from Liberty Central to Liberty Consulting has damaged her reputation among some conservatives. “Ginni’s reputation around town is now even more of a fake entitled woman who is only here because of her husband,” the source tells a reporter. “Now she has opened her own lobbying shop… not sure how [the] conservative circle will feel when they find that out, or if they’ll care or not.” [Politico, 2/4/2011]
Previous Conflicts of Interest - Virginia Thomas has weathered criticisms of conflict of interest before. In late 2000, as a Heritage Foundation staffer, she was helping select key members for the Bush administration even as her husband was engaged in deliberating the Bush v. Gore Court decision that installed George W. Bush as president (see 9:54 p.m. December 12, 2000). At the time she waved off criticisms, saying that she and her husband conducted “separate professional lives.” [Los Angeles Times, 3/14/2010]
'Cloud of Corruption' Surrounding Justice Thomas? - Legal analyst Ian Millhiser of the liberal news Web site Think Progress is far more blunt in his assessment than some more cautious critics, writing: “Now, Ginni Thomas appears to have found a way to earn money off her husband’s actions as a justice. Clarence Thomas released countless amounts of corporate spending on US elections [by voting with the majority in Citizens United], and Ginni Thomas can get rich advising those corporate clients on how to direct that spending. To be sure, it is possible that Ginni is somehow limiting her advice to ‘political investments’ that were legal before Clarence gave businesses like hers so many new potential customers. But if this is the case, Ginni has an obligation to explain just how she is limiting her advice—it’s the only way to remove the obvious cloud of corruption her actions have created around her husband.” [Think Progress, 2/4/2011]

Entity Tags: Heritage Foundation, David Schweikert, Clarence Thomas, Ann Pearson, Dick Armey, George W. Bush, Sarah E. Field, FreedomWorks, Patrick Henry Center for Individual Liberty, Virginia (“Ginni”) Thomas, Liberty Consulting, Ian Millhiser, Liberty Central, US Chamber of Commerce

Category Tags: Campaign Finance

New York Times legal correspondent Adam Liptak observes what he calls a large weakness in the position that the Supreme Court should not have granted First Amendment rights to corporations in its 2010 Citizens United decision (see January 21, 2010). Liptak notes that Justice Anthony Kennedy cited more than 20 precedents affirming his argument that corporations are people under the First Amendment’s free-speech provision, and Justice John Paul Stevens recognized that body of precedents in his dissent. Liptak notes that regardless of the precedent, the provision still can be wrong. But, he notes, the weakness in the argument centers around the status of the news media as an amalgamation of “corporate persons,” writing, “If corporations have no First Amendment rights, what about newspapers and other news organizations, almost all of which are organized as corporations?” There is a general acceptance that “the press is different,” he notes, writing: “The First Amendment, after all, protects ‘the freedom of speech, or of the press.’ Since ‘the press’ is singled out for protection, the argument goes, media corporations enjoy First Amendment rights while other corporations do not.” Liptak calls this a weak argument. There is little evidence to show that the Founders intended “to single out a set of businesses for special protection” under the First Amendment, nor is there a lot of support for the Court’s current stance that the institutional press has rights that other speakers, specifically corporations, do not have. Moreover, he asks, who exactly is the press? Is it a corporate media firm or a person with a Twitter account? In initial arguments in the Citizens United case (see June 29, 2009), government lawyer Malcolm L. Stewart argued that Congress has the power to regulate “corporate speech” about political candidates, even going so far as to prohibit the publication of a book in the weeks before an election, an argument that did not sit well with most of the justices. (Liptak notes that in the second set of arguments, “[t]he government backed away from that position at the second argument, but not very far—see September 9, 2009). Stewart could have gone further in claiming “that media corporations, the institutional press, would have a greater First Amendment right,” as he said in his first argument, though he did not use that as his primary argument. Stevens seemed supportive of that argument in his dissent. Justice Antonin Scalia, in his concurrence, did not, writing: “It is passing strange to interpret the phrase ‘the freedom of speech, or of the press’ to mean, not everyone’s right to speak or publish, but rather everyone’s right to speak or the institutional press’s right to publish. No one thought that is what it meant.” Former Times columnist and Court reporter Anthony Lewis reached a similar conclusion in 2008, writing, “The amendment surely meant to cover both oral and written expression [rather than] a specially protected institution.” In the majority opinion, Kennedy wrote, “There is no precedent supporting laws that attempt to distinguish between corporations which are deemed to be exempt as media corporations and those which are not.” Law professor Eugene Volokh agreed, writing, “If ordinary business corporations lack First Amendment rights, so do those business corporations that we call media corporations.” Law professor Richard Hasen acknowledges that the correct treatment of media corporations in the issue of free speech and campaign finance is “among the most difficult questions for supporters of reasonable campaign finance reform.” Liptak concludes: “There are good arguments both ways about whether corporations ought to be covered by the First Amendment. But it is harder to say that some corporations have First Amendment rights and others do not.” [New York Times, 2/7/2011]

Entity Tags: John Paul Stevens, Anthony Kennedy, Adam Liptak, Anthony Lewis, Eugene Volokh, Malcolm Stewart, US Supreme Court, Antonin Scalia, New York Times, Richard L. Hasen

Category Tags: Court Procedures and Verdicts, Campaign Finance

An image from a ‘Team Themis’ proposal given to the US Chamber of Commerce in late 2010.An image from a ‘Team Themis’ proposal given to the US Chamber of Commerce in late 2010. [Source: Docstoc (.com)]The liberal news Web site Think Progress, an affiliate of the Center for American Progress, reports that it has discovered evidence of a potentially illegal scheme to entrap and destabilize political organizations, including Think Progress, that support President Obama and other Democrats. The scheme, in development since November 2010 at least, centers around the US Chamber of Commerce (USCOC), a large trade organization that makes large secret donations to Republican candidates and organizations (see January 21-22, 2010 and October 2010), and a law firm, Hunton and Williams, hired by the USCOC. According to emails secured by Think Progress, Hunton and Williams is working with a set of private security firms—HBGary Federal, Palantir, and Berico Technologies (collectively called “Team Themis”)—to develop tactics to damage progressive groups and labor unions. Some of the organizations and unions targeted include Think Progress, a labor coalition called Change to Win, the Service Employees International Union (SEIU), US Chamber Watch, and StopTheChamber.com. The last two are small organizations dedicated to exposing some of the secretive practices of the USCOC. One project proposed by Team Themis is an entrapment scheme. The proposal called for the creation of a “false document, perhaps highlighting periodical financial information,” to give to a progressive group opposing the USCOC, and then exposing the document as a fraud, thus undermining the credibility of the organization. Another proposal involved using potentially illegal computer-hacking techniques to create what the group calls a “fake insider persona” to “generate communications” with Change to Win and to undermine the credibility of US Chamber Watch. The proposal actually advocates the creation of two such personas, one to be used “as leverage to discredit the other while confirming the identity of the second.” Together, “Team Themis” asked for $200,000 for initial background research and another $2 million for an active disinformation campaign. It is unclear from the emails whether any of the proposals were accepted, and if the disinformation campaign was ever launched. Think Progress was recently provided with the emails by members of “Anonymous,” an online “hacktivist” community responsible for attacking the Web sites of oppressive regimes in Tunisia and Egypt, along with American corporations that have censored the online information repository WikiLeaks. The emails were secured from HBGary Federal after one of that firm’s executives, Aaron Barr, tried to take Anonymous down. Barr claimed to have penetrated the group and intended to sell the data he collected to Bank of America (BoA) and to US federal authorities. In return, Anonymous hackers penetrated Barr’s email account and published some 40,000 company emails. Barr intended to approach Bank of America, Think Progress writes, because WikiLeaks is believed to have sensitive information about the firm that it intends to publish later in the year. BoA hired Hunton and Williams and other law firms to pursue WikiLeaks. BoA’s legal team also targeted Salon columnist Glenn Greenwald, an outspoken supporter of WikiLeaks, saying that it had plans for “actions to sabotage or discredit” him. The USCOC posts a response to Think Progress on its blog dismissing the report as “baseless attacks.” And prominent liberal blogger Marcy Wheeler (see April 18, 2009) says that the Think Progress report will probably “cause the Chamber of Commerce to rethink the spying work with HBGary it apparently has been considering.” [Berico Technologies, 11/3/2010 pdf file; Think Progress, 2/10/2011] Liberal blogger Brad Friedman, who has spent years covering voter suppression tactics by political organizations, will soon learn that he is targeted by Team Themis. An email sent by Barr and provided to Friedman “focused on me included names, personal information, home addresses, etc. of myself, family members, and a number of other members of VR,” Friedman will write. (Velvet Revolution is an “umbrella group” that includes StopTheChamber.) “Part of the plan included highlighting me as a ‘Tier 1’ player in a sophisticated disinformation/discrediting scheme that relied on high-tech tools developed for the US government’s ‘War on Terror.’ Team Themis’ US Chamber of Commerce plan was to deploy the very same techniques and technology used to track terrorists, terror organizations, and nations such as Iran, against private non-profit political advocates and citizens in the US.” The email also lists the names of people whom Barr clearly believes to be Friedman’s wife and two children (Friedman says the names listed are not family members—he is not married and has no children). The email also lists a Maryland address as Friedman’s home—another error, as Friedman lives in another state. Friedman will write that obviously Barr and his researchers found another, unrelated person named Brad Friedman and learned personal details about that person and his family. Prominent officials such as Ilyse Hogue of MoveOn.org and Robert Weissman of Public Citizen are also listed for “targeting.” [Brad Friedman, 2/14/2011]

Entity Tags: Democratic Party, Change to Win, WikiLeaks, Berico Technologies, Barack Obama, Bank of America, Aaron Barr, US Chamber Watch, Think Progress (.org), US Chamber of Commerce, Service Employees International Union, Ilyse Hogue, Marcy Wheeler, Hunton and Williams, Glenn Greenwald, HBGary Federal, StopTheChamber.com, Robert Weissman, Palantir, Brad Friedman

Category Tags: Freedom of Speech / Religion, Voter Fraud/Disenfranchisement

The government watchdog and campaign finance advocacy group Common Cause asks the Supreme Court to explain why Justice Clarence Thomas did not completely disclose the nature of his participation in a 2008 retreat hosted by Charles and David Koch, the influential oil billionaires and conservative advocates (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, and October 4, 2011). According to a Court spokesperson, Thomas made a “brief drop-by” at a four-day event in Palm Springs, California, held in January 2008, and gave a talk. But disclosure reports filed by Thomas show that he was reimbursed an undisclosed amount for four days of “transportation, meals, and accommodations” over the weekend of the retreat. The reimbursement came from the Federalist Society, an influential conservative legal group. Today Common Cause sends a letter to the Court asking for “further clarification” as to why the two statements are at odds. Common Cause official Arn Pearson says, “I don’t think the explanation they’ve given is credible.” If Thomas’s visit was a “four-day, all-expenses paid trip in sunny Palm Springs,” Thomas should have reported it as a gift under federal law. The Court, the Federalist Society, and Koch Industries all refuse to comment on the issue. Common Cause has said that because of Thomas’s past appearances at the Koch retreats, and the conservative political work done by his wife Virginia Thomas (see November 2009 - November 2010 and February 4, 2011), he should have recused himself from the 2010 Citizens United decision (see January 21, 2010). Common Cause notes that both Thomas and Justice Antonin Scalia have appeared at Koch-hosted retreats. Both Thomas and Scalia voted as part of the 5-4 majority that decided the case. Political analysts say the Koch brothers have been some of the main beneficiaries of the decision. [New York Times, 2/14/2011]

Entity Tags: David Koch, Antonin Scalia, Arn Pearson, Charles Koch, Federalist Society, US Supreme Court, Virginia (“Ginni”) Thomas, Common Cause, Clarence Thomas

Category Tags: Court Procedures and Verdicts, Campaign Finance

A lawsuit by two anonymous plaintiffs is filed challenging the foreign-contribution provision of the campaign finance laws, a provision that was not overturned by the Citizens United Supreme Court decision (see January 21, 2010). The lawsuit is on behalf of a Canadian citizen who claims he wants to support President Obama’s 2012 re-election campaign, and a dual Israeli-Canadian citizen who wants to contribute to Obama’s opponent Mitt Romney and to the campaign of Senator Tom Coburn (R-OK). The Israeli-Canadian citizen says they want to help prevent what they call a “government-takeover of the health care system in the United States,” according to the suit. The filing says both plaintiffs are legally authorized to live and work in the United States, but are not permanent residents; one is a young attorney with a moderately successful practice and the other earns a modest salary as a medical resident at a New York hospital. The lawsuit asks that legal residents, as well as citizens and US-registered entities, be allowed to make donations. While the lawsuit appears to be bipartisan in nature, the lawyers representing the anonymous plaintiffs are from a top-flight law firm, Jones Day, which usually represents Republican and wealthy corporate clients. Think Progress’s Ian Millhiser notes that the firm’s clients “include some of the biggest corporate beneficiaries of the Citizens United decision—including Koch Industries and the US Chamber of Commerce.” The lawyers are Warren Postman and Yaakov Roth, both of whom are former Supreme Court clerks and thusly do not come cheap—in 2005, Jones Day charged as much as $370 an hour for services provided by lawyers with similar levels of experience. Millhiser writes: “To be clear, a court decision in favor of Jones Day’s clients would not necessarily allow BP or the Dubai Sovereign Wealth Fund to immediately start buying US elections. The lawsuit only asks the court to allow lawful residents make campaign contributions. Nevertheless, such a decision would be a significant crack in the wall protecting American democracy from foreign money. There are any number of foreign corporations who would love to see that happen.” [Politico, 3/18/2011; Think Progress, 3/18/2011] The court will deny the lawsuit (see August 8, 2011).

Entity Tags: Warren Postman, Ian Millhiser, Barack Obama, Jones Day, Willard Mitt Romney, Tom Coburn, Yaakov Roth, US Supreme Court

Category Tags: Court Procedures and Verdicts, Campaign Finance

Iowa State Senator Kent Sorenson (R-IA) introduces a bill, SB 368, that would require candidates for president or vice president to file a certified copy of their birth certificate along with their affidavit of candidacy in order to be eligible to be included on the Iowa election ballot. Sorenson has long identified himself as a believer in the “birther” conspiracy theory that alleges President Obama is not a US citizen (see July 20, 2008, August 15, 2008, October 8-10, 2008, October 16, 2008 and After, November 10, 2008, December 3, 2008, August 1-4, 2009, May 7, 2010, Shortly Before June 28, 2010, and Around June 28, 2010). The bill reads in part: “A candidate for president or vice president shall attach to and file with the affidavit of candidacy a copy of the candidate’s birth certificate certified by the appropriate official in the candidate’s state of birth. The certified copy shall be made part of the affidavit of candidacy and shall be made available for public inspection in the same manner as the affidavit of candidacy.… A candidate for president or vice president who does not comply with the requirements of this section shall not be eligible for placement on the ballot as a candidate for president or vice president anywhere in the state.” The bill does not clear a deadline for submission, but may be reintroduced in the next session. Sorenson previously introduced a bill that would recognize only silver and gold as legal tender in Iowa. He recently told an Iowa reporter that his constituents elected him to the Iowa Senate to “burn this place down. They want me to do battle. And I understand that.” [WorldNetDaily, 3/6/2011; Mother Jones, 3/25/2011]

Entity Tags: Iowa State Senate, Kent Sorenson, Barack Obama

Timeline Tags: Domestic Propaganda, 2012 Elections

Category Tags: Impositions on Rights and Freedoms, Other Legal Changes, Election, Voting Laws and Issues, Citizenship Rights, Voting Rights

Law professor Richard Hasen writes that an Arizona case before the Supreme Court may add to the abilities of wealthy individual and corporate donors to influence elections. In the case of McComish v. Bennett, Arizona’s public campaign financing laws are being challenged. Public financing of campaigns (i.e. using tax dollars for campaigns) is entirely voluntary, but candidates who do opt into the system may not accept outside donations. Privately funded candidates face no such restrictions, but receive no public campaign funding. If a privately funded candidate spends significantly more on the campaign than his/her publicly funded opponent, Arizona’s law has a so-called “trigger” provision that provides matching funds, to a point, to make the spending somewhat more equitable. The case before the Court was brought on behalf of wealthy private donors, and is based on the complaint that the matching funds provision is a violation of their clients’ freedom of speech. Hasen predicts that the Court, with its conservative majority and its ruling in the Citizens United case (see January 21, 2010), will rule in favor of the wealthy plaintiffs and strike down some or all of the Arizona law. Arizona imposes no limits on the spending of outside groups, Hasen argues, and if the matching funds provision is triggered, he asks, “What’s the worst thing that can happen if a wealthy candidate spends gobs of cash running against a candidate who has opted into the public financing system?” He answers, “The publicly financed candidate gets more government dollars to campaign, and the voters hear more speech.” Hasen notes that several conservative legal experts have found that the “free speech” argument is specious. Conservative Ninth Circuit Judge Andrew Kleinfeld wrote against the argument in a previous ruling in the case, observing that in his view “there is no First Amendment right to make one’s opponent speak less, nor is there a First Amendment right to prohibit the government from subsidizing one’s opponent, especially when the same subsidy is available to the challenger if the challenger accepts the same terms as his opponent.” And Charles Fried, the solicitor general during the Reagan administration, filed an amicus brief in the case arguing that it is the wealthy candidates and interest groups who “in reality are seeking to restrict speech.” Hasen believes that the conservative majority will rule in favor of restricting the “speech” of publicly funded candidates in Arizona (and by extension in other states) because, as it ruled in a 2008 case, such financing laws were “an impermissible attempt to level the playing field between wealthy and non-wealthy candidates.” Hasen is blunt in his conclusion, stating, “Five conservative […] justices on the Supreme Court appear to have no problem with the wealthy using their resources to win elections—even if doing so raises the danger of increased corruption of the political system.” [Slate, 3/25/2011] Hasen is correct: the Court will rule 5-4 in the case, which will be renamed Arizona Free Enterprise Club’s Freedom PAC v. Bennett, that the matching funds provision is unconstitutional (see June 27, 2011).

Entity Tags: Charles Fried, Richard L. Hasen, US Supreme Court, Andrew Kleinfeld

Category Tags: Court Procedures and Verdicts, Campaign Finance

Donald Trump, the billionaire entrepeneur and television show host who, it is rumored, may run for the Republican nomination for president in 2012, announces that he intends to meet with tea party organizers and an Arizona legislator to discuss an Arizona bill that would require candidates for president to prove that they are natural born citizens (see April 13-15, 2011). Trump has repeatedly expressed his doubts that President Obama is a US citizen (see February 10, 2011, March 17, 2011, March 23, 2011, March 23, 2011, March 28, 2011, March 28-29, 2011, March 30, 2011, April 1, 2011, April 1, 2011, April 1-8, 2011, April 7, 2011, April 7, 2011, and April 7-10, 2011). Trump intends to meet with Arizona Representative Carl Seel (R-AZ), who sponsored the bill. Seel says, “I’m honored to get the ability to meet with him and discuss it, and I want to thank him for being such a supporter of this issue.” Also at the meeting will be Kelly Townsend, who co-founded the Greater Phoenix Tea Party. Townsend says of Seel’s proposal: “It’s not a birther bill. It’s not about Mr. Obama. It’s about preventing any questions from coming up in the future, putting something in place so no one could question it.” However, Seel’s office issues a press release stating that Trump “has brought the issue of President Barack Obama failing to provide a birth certificate front and center recently.” [New York Times, 4/7/2011]

Entity Tags: Carl Seel, Barack Obama, Kelly Townsend, Donald Trump, Greater Phoenix Tea Party

Timeline Tags: Domestic Propaganda, 2012 Elections

Category Tags: Impositions on Rights and Freedoms, Citizenship Rights, Election, Voting Laws and Issues, Voting Rights

Governor Jan Brewer (R-AZ) vetoes a controversial “birther bill” that would require presidential candidates to submit proof of citizenship to the Arizona secretary of state. The bill passed both houses of the Arizona legislature on party-line votes (see April 13-15, 2011). Brewer also vetoes another Republican-backed bill that would have allowed citizens to bring guns onto college campuses. The “birther” bill would have required such documents as the so-called “long form” birth certificate (see July 1, 2009) and/or other acceptable forms of proof of US citizenship, including for Jewish candidates a proof of circumcision. “I never imagined being presented with a bill that could require candidates for president of the greatest and most powerful nation on earth to submit their ‘early baptism or circumcision certificates,’” Brewer says. “This is a bridge too far. This measure creates significant new problems while failing to do anything constructive for Arizona.” Brewer, a former Arizona secretary of state, says she does not support designating one person as “gatekeeper to the ballot for a candidate,” as it “could lead to arbitrary or politically motivated decisions.” Many believe the “birther” bill is an attempt to join in the “birther” controversy that has called into question President Obama’s citizenship. Billionaire television host and entrepeneur Donald Trump (see February 10, 2011, March 17, 2011, March 23, 2011, March 23, 2011, March 28, 2011, March 28-29, 2011, March 30, 2011, April 1, 2011, April 1, 2011, April 1-8, 2011, April 7, 2011, April 7, 2011, April 7-10, 2011, April 7, 2011, April 7, 2011, April 10, 2011, and April 21, 2011) recently met with the bill’s House sponsor, Representative Carl Seel (R-AZ), and area tea party organizers to discuss the bill and other political items of interest (see April 7, 2011). Many believe that Trump’s interest in the “birther” controversy helped usher the bill through the Arizona legislature. Arizona Senator Steve Gallardo (D-AZ) says Brewer vetoed the bills because they damaged Arizona’s image. “All they do is put us in the national spotlight and make us look silly,” Gallardo says. “She’s saying she doesn’t want that to happen any longer.… At the end of the day, it was the right thing for Arizona.” However, State Senator Steve Smith (R-AZ) says the bill would have settled questions about Obama’s citizenship. [KSAZ-TV, 4/18/2011; Arizona Republic, 4/18/2011; Reuters, 4/19/2011] Bills similar to the “birther” legislation have been defeated in Arkansas, Connecticut, Maine, and Montana. [KSAZ-TV, 4/18/2011] It is possible that the Arizona House can override Brewer’s veto, but observers, including House Speaker Kirk Adams (R-AZ) believe that will not happen. Seel says such an attempt would appear to be an attempt to override Brewer’s judgment. “Overrides are a real difficult monster,” he says. [Arizona Republic, 4/18/2011]

Entity Tags: Steve Smith, Steve Gallardo, Jan Brewer, Carl Seel, Barack Obama, Kirk Adams, Donald Trump

Timeline Tags: Domestic Propaganda, 2012 Elections

Category Tags: Impositions on Rights and Freedoms, Election, Voting Laws and Issues, Citizenship Rights, Voting Rights

The press learns that the Obama administration is considering having President Obama (see January 27-29, 2010) issue an executive order that would force federal contractors to disclose donations over $5,000 to political organizations. Such firms seeking government contracts would be required to disclose contributions to groups that air political ads either attacking or supporting candidates. Both Republicans and Democrats say that if issued, the order would have an immediate effect. Groups such as the US Chamber of Commerce (USCOC), a large Republican donor that has made large undisclosed donations to Republican-supporting candidates and organizations (see January 21-22, 2010 and October 2010), attacks the White House over the considered executive order, saying it proves Obama is using his executive power to punish political adversaries and reward supporters. USCOC spokesperson Blair Latoff calls the proposed order “an affront to the separation of powers [and] to free speech” (see January 21, 2010) that would create a litmus test for companies wanting to work with the federal government. The order, Latoff adds, could mean “prospective contractors that fund political causes unpopular with the government or the current administration may find that they don’t get a contract award due to political discrimination.” Republican senators will raise the same concerns in a letter sent to the White House the next day. Lawyer Jan Baran, who has worked for both the USCOC and Republican interests, acknowledges that the order could curtail fundraising attempts for the 2012 elections. White House officials and Congressional Democrats say the order would prevent the 2012 elections from being taken over by wealthy anonymous donors on both sides of the political aisle. Fred Wertheimer of Democracy 21, a nonprofit group that favors stricter campaign finance rules, says, “The fact that Congressional Republicans may oppose disclosure does not mean that efforts to obtain it are, by definition, partisan.” [United Press International, 4/20/2011; Los Angeles Times, 4/21/2011; New York Times, 4/27/2011] A week later, Bruce Josten, the top lobbyist for the USCOC, will assail Obama and the White House over the proposed executive order, telling a reporter that the organization “is not going to tolerate” what it considers a “backdoor attempt” by the White House to silence private-sector opponents by disclosing their political spending. Josten will even indirectly compare Obama to Libyan leader Mu’ammar al-Qadhafi; citing the Obama administration’s efforts to hasten the deposing of al-Qadhafi, Josten will say of the order: “We will fight it through all available means. To quote what they say every day on Libya, all options are on the table.” White House spokesman Jay Carney will say in response to Josten’s attack, “What the president is committed to is transparency, and he certainly thinks that the American taxpayer should know where his or her money is going.” Josten is joined by the Business Roundtable, a powerful business association made up of a number of chief executives, which will call the proposed order “yet another example of regulatory over-reach,” and will claim the order would increase paperwork and drive up costs for businesses. [Think Progress, 4/27/2011] Lee Fang, a reporter for the liberal news Web site Think Progress, will write that the executive order could have a powerful impact on the USCOC. “[T]he White House’s disclosure rule threatens the entire existence of the Chamber,” Fang will write. “This is because the Chamber only exists to hide the identity of corporations seeking to fight nasty political battles without having their name or brand exposed. As the Wall Street Journal noted, the Chamber’s ‘most striking innovation has been to offer individual companies and industries the chance to use the chamber as a means of anonymously pursuing their own political ends.’ The Chamber’s members include defense contractors, bailed out banks, and other donors likely to be affected by the government contractor campaign disclosure rule.” Fang will also cite a recent plan by the USCOC to sabotage organizations that support Obama and Democratic candidates by using legally questionable tactics such as false entrapment strategies and even computer hacking (see February 10, 2011). The funding for the scheme was never made public. He also cites recent monies secured by the USCOC from foreign entities that, because of the Citizen United decision, could be flowing into US political activities without disclosure (see October 2010). [Think Progress, 4/27/2011] Republicans in Congress will move to pass legislation that would thwart the order, if it is ever issued (see May 26, 2011 and July 15, 2011).

Entity Tags: Barack Obama, Fred Wertheimer, Blair Latoff, Business Roundtable, Jan Witold Baran, US Chamber of Commerce, Lee Fang, Wall Street Journal, Mu’ammar al-Qadhafi, Obama administration, Bruce Josten

Category Tags: Campaign Finance

Chris Van Hollen, in an undated appearance on Fox News.Chris Van Hollen, in an undated appearance on Fox News. [Source: Associated Press / Politico]Representative Chris Van Hollen (D-MD) and other prominent Democrats file a lawsuit against the Federal Election Commission (FEC) asking that entity to force the disclosure of political campaign donor information. In 2007, after a Supreme Court ruling (see June 25, 2007), the FEC drastically rewrote its disclosure requirements, creating what Van Hollen calls a “major loophole” that many 501(c)4 entities funded by corporate or labor union donations are using to operate “under a veil of anonymity.” Van Hollen and his colleagues say they want to force wealthy corporations and individuals to disclose who they are and how much they donate to political organizations. Currently, the Citizens United decision (see January 21, 2010) allows such donors to remain anonymous, and the organizations that receive their donations to conceal the amounts they are receiving. Van Hollen cites the 2002 Bipartisan Candidate Reform Act (BCRA—see March 27, 2002) as applying in this instance. In the brief he submits for the lawsuit, Van Hollen writes: “The US Chamber of Commerce, a Section 501(c) corporation, spent $32.9 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; American Action Network (AAN—see Mid-October 2010), a Section 501(c) corporation, spent $20.4 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; Americans for Job Security, a Section 501(c) corporation, spent $4.6 million in electioneering communication in the 2010 Congressional elections, and disclosed none of its contributors.” The lawsuit comes almost simultaneously with news that the White House is considering issuing an executive order that would require federal contractors to reveal their donations (see April 20, 2011). Democrats admit that even as they push the lawsuit forward, and President Obama publicly criticizes the practice of secret donations, they, too, are raising undisclosed donations for the various 2012 campaigns. Experts note that in most cases, Democrats’ efforts to raise undisclosed donations are far smaller than efforts by Republicans, and the amounts they are receiving are, so far, much smaller. Fred Wertheimer of Democracy 21, who is leading Van Hollen’s legal team, acknowledges that the lawsuit will not alter campaign finance policy before the 2012 elections, though he says it is possible that the lawsuit could receive a favorable decision and force disclosure while appeals are pending.
Similarities to DISCLOSE Act - Both the lawsuit and the executive order are similar to sections of the DISCLOSE Act, a legislative package drafted by Van Hollen and other Congressional Democrats that was blocked by Senate Republicans from coming to a vote (see July 26-27, 2010). USCOC spokesperson Blair Latoff says the lawsuit and the order comprise a “desperate attempt by the White House and House Democrats to resurrect the corpse of the DISCLOSE Act.” (Law professor Steven D. Schwinn will refute Latoff’s accusation, writing that Van Hollen’s lawsuit in no way seeks to force the DISCLOSE Act into law via the courts.) Like the failed legislation, the lawsuit and the proposed executive order would work to curtail the effects of the Supreme Court’s controversial Citizens United decision, which allows virtually unlimited and anonymous political spending by corporations and other entities. The lawsuit argues that the concealment of donor identities contradicts both the law and the Court’s ruling, citing the following language in the majority ruling: “With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable.”
Seeks Change in FEC Regulations - The lawsuit specifically challenges an FEC regulation adopted in 2007 that contravened language in the 2002 Bipartisan Campaign Reform Act (see March 27, 2002) that required disclosure of donations of $1,000 or more if the donations were made for the purpose of furthering “electioneering communications.” Another petition filed by Van Hollen’s group asks the FEC to revise a regulation that “improperly allowed nonprofit groups to keep secret the donors” whose funds were being used to pay for so-called independent expenditures in federal elections. [van Hollen, 4/21/2011 pdf file; Los Angeles Times, 4/21/2011; New York Times, 4/21/2011; Steven D. Schwinn, 4/25/2011; Think Progress, 4/27/2011]
'Sign of Weakness' - Bradley A. Smith, a former FEC commissioner and the head of the Center for Competitive Politics, a conservative advocacy group, says of the lawsuit: “This is a sign of weakness by a group that’s afraid they’re going to lose, and lose big. Again and again, you see evidence that their real purpose is to try to shut down their political opposition.” Smith and other conservatives say Democrats want to “chill” free speech. [New York Times, 4/21/2011]
FEC Will Refuse to Consider Accompanying Petition - In December 2011, the FEC will refuse to consider an accompanying petition on a 3-3 vote. [Commission, 12/16/2011; Commission, 12/16/2011] The vote is along partisan lines, with the three Democrats on the commission voting to consider the petition and the three Republicans voting against. The law prohibits the FEC from having a majority of commissioners from either party. [Think Progress, 1/21/2012]
Judge Will Rule in Favor of Plaintiff - In March 2012, a district judge will rule in favor of Van Hollen in the lawsuit (see March 30, 2012).

Entity Tags: Bipartisan Campaign Reform Act of 2002, Americans for Job Security, Barack Obama, American Action Network, Blair Latoff, Bradley A. (“Brad”) Smith, Steven D. Schwinn, US Chamber of Commerce, DISCLOSE Act of 2010, Chris Van Hollen, Fred Wertheimer, Federal Election Commission

Category Tags: Court Procedures and Verdicts, Campaign Finance

The Tennessee State Legislature approves a bill, SB1915, that allows for direct corporate donations to political candidates. The bill also raises the amount that can be given by contributors by around 40 percent. Corporations will be treated as political action committees (PACs—see 1944 and February 7, 1972). The original bill was sponsored by Senate Speaker Pro Tempore Jamie Woodson (R-Knoxville) and passed by a party-line vote, with Republicans voting for passage and Democrats against. House Democratic Caucus Chairman Mike Turner objected to the bill, saying that foreign-based corporations could also contribute under it; House sponsor Glen Casada (R-College Grove) responds by saying that such corporations would have to have a presence in Tennessee to make such contributions. Turner says after the bill passes: “It’s going to be like an arms race with Democrats and Republicans trying to compete for this corporate cash. I just think it’s wrong. I think it’s un-American. Tennessee will rue the day we’ve done this.” For his part, Casada says the bill will lessen candidate dependence on PACs and provide more money to “educate voters.” He adds, “More money is more free speech.” Woodson says the law follows directly from the controversial Citizens United decision by the US Supreme Court (see January 21, 2010), which allows corporations and labor unions to spend unrestricted amounts of money in support of, or opposition to, federal candidates. Republicans lauded the decision by saying it promoted free speech (see January 21, 2010). The Tennessee State Legislature approved a law similar to the Citizens United decision in 2010. The new bill authorizes corporations to give directly to candidates and political parties. Tennessee has long banned such corporate contributions. [Nashville City Paper, 4/26/2011; Knoxville News-Sentinel, 4/27/2011] Governor Bill Haslam (R-TN) will sign the law into effect. Republicans claim the law will “equalize” contributions, and remove the “advantage” in donations from labor unions enjoyed by Democrats. “This basically would just level the playing field, because unions are allowed to do this by statute now,” says Senator Bill Ketron (R-Murfreesboro). However, in October 2010, reporter Tom Humphrey showed that corporate and PAC donations favored Republicans by as much as a 3-1 margin, an advantage not overcome by union contributions. [Knoxville News-Sentinel, 10/29/2010; Nashville City Paper, 4/26/2011]

Entity Tags: Jamie Woodson, Bill Ketron, Tennessee State Legislature, Tom Humphrey, Glen Casada, William Edward (“Bill”) Haslam, US Supreme Court, Mike Turner

Category Tags: Campaign Finance

The Missouri House of Representatives passes a bill requiring anyone who wishes to run for president in Missouri to provide evidence of his or her citizenship. The bill reads in part, “When certifying presidential and vice presidential nominees and requesting that such nominees be placed on the ballot, the state committees of each political party shall provide verifiable evidence of identity and proof of natural born citizenship.” The bill does not require “long form” certificates; apparently, the birth certificate provided by President Obama in 2008 (see June 13, 2008) would satisfy the requirements of the bill. The sponsor of the bill, House Republican Lyle Rowland, has denied being a “birther,” telling a reporter: “You know when I first started, reporters and other people were getting after me because I did this because of President Obama. And as I told all the other reporters, it’s not about President Obama. I believe the man is president of the United States and has met the qualifications for the presidency.” Rowland told another reporter: “We have problems with illegal immigrants. And if something were to happen where one of them became popular with the people, we need documents proving if they are a citizen.” The bill, part of a larger package that includes a restrictive voter identification requirement, still must pass the Missouri Senate and be signed into law by Governor Jay Nixon (R-MO); observers believe its chance of passage is slim. [Mother Jones, 5/5/2010; Politico, 4/26/2011]

Entity Tags: Jay Nixon, Lyle Rowland, Missouri House of Representatives, Barack Obama

Timeline Tags: 2012 Elections

Category Tags: Impositions on Rights and Freedoms, Election, Voting Laws and Issues, Citizenship Rights, Voting Rights

Long-shot Republican presidential candidate Buddy Roemer (R-LA), a former governor of Louisiana, gives an interview to the liberal news Web site Think Progress in which he blasts the current system of campaign finance. Roemer is campaigning on a promise to reduce the influence of the wealthy on the government, and refuses to accept over $100 in contributions from any one source. He also forces the disclosure of the identities of his donors. After speaking at a tea party rally in New Hampshire, Roemer speaks to Think Progress reporter Lee Fang. Roemer is highly critical of large corporate donors and the trade organizations that represent them, and decries the failure of the DISCLOSE Act to pass Congress (see July 26-27, 2010). “It’s disastrous, it’s dysfunctional, to their shame,” he says. Large corporations such as General Electric using their influence to avoid paying taxes is “what’s wrong with America.” Roemer adds: “Right now, too often the political debate has become about the money and not about the issues. And those who have the money have a vested interest in the results and you never know who they are.… I have full disclosure and I challenge my opponents to do the same.” Fang notes that some of the largest corporate donors and “bundlers” (groups like the US Chamber of Commerce, which “bundle” donations from corporations and individuals and funnel them to political organizations) support Roemer’s fellow Republican candidates, and are the primary reason why the DISCLOSE Act failed to pass. “They lobbied both Democrats and Republicans to kill the bill in the Senate,” Fang says. Roemer says Congress and the campaign financial system are both “dysfunctional,” and adds Democratic-supporting labor unions to the list of organizations that are corrupting politics. “The guys with the bucks want unfettered regulation. They want to run America.… The reason the tax code is four thousand pages long and paid no taxes last year and made five billion dollars? It’s [campaign] checks. That’s whats wrong with the American system. It’s not free anymore. It’s bought.” Roemer says the only way he knows to challenge the system is by example. “You know I’ve got to run against the system,” he says. “It’s corrupt. And the only way I know how to do it… is by example. I’m going to show that a grassroots campaign can capture New Hampshire, South Carolina. I’m going to whip ‘em, on my own terms.” The Republican Party does not support Roemer’s campaign, and is blocking Roemer from participating in primary debates. [Think Progress, 5/4/2011]

Entity Tags: US Chamber of Commerce, Republican Party, Think Progress (.org), Buddy Roemer

Category Tags: Campaign Finance

The Center for Responsive Politics (CRP), a nonpartisan campaign finance watchdog organization, finds that independent organizations supporting Republicans and Democrats are spending unprecedented amounts of money on supporting, or more often attacking, candidates for office. The huge rise in spending comes as a direct result of the Citizens United decision that allowed corporations and labor unions to spend unlimited amounts of money on campaign donations (see January 21, 2010). While organizations are spending huge amounts of money on both sides of the political divide, spending for conservative candidates outweighs spending on liberal candidates by an 8-1 margin. CRP’s analysis finds that the increased spending helped Republicans retake the US House of Representatives in 2010, and is having a long-term effect on the nation’s campaign and election systems. [Center for Responsive Politics, 5/5/2011; Think Progress, 5/6/2011]
Most Democratic Spending Comes from Unions - Labor unions gave over $17.3 million in independent expenditures opposing Republican candidates. The union contributing the most: the American Federation of State County and Municipal Employees (AFSCME), with over $7 million. The National Education Association (NEA) formed a “super PAC” (see March 26, 2010) that spent $3.3 million on election activities. Super PACs must disclose their donors and the amounts donated (see 2000 - 2005), but an array of groups under the 501(c) tax laws do not have to disclose that information (see September 28, 2010).
Corporations Spend Lavishly for Republicans - While corporations donated some money to Democratic causes, most of their money went to Republicans. Corporations gave over $15 million to super PACs such as American Crossroads, which supports an array of conservative candidates. CRP notes that conservative groups that do not have to disclose their donors spent $121 million, and corporations and wealthy individuals were the likely sources of almost all of that money.
Secret Donations on the Rise - In the 2006 elections, the percentage of spending from groups that do not disclose their donors was 1 percent. In 2010, it was 47 percent. “Nonprofit” organizations that can legally hide their donors and donations increased their spending from zero percent in 2006 to 42 percent in 2010. For the first time in over 20 years, outside interest groups outspent party committees, by $105 million. The amount of independent expenditure and electioneering communication spending by outside groups has gone up 400 percent since 2006. And 72 percent of political advertising spending by outside groups in 2010 came from sources that were prohibited from spending money in 2006. [Center for Responsive Politics, 5/5/2011]

Entity Tags: American Crossroads, American Federation of State County and Municipal Employees, US House of Representatives, National Education Association, Center for Responsive Politics

Category Tags: Campaign Finance

Lawyer James Bopp Jr. forms a super PAC, Republican Super PAC Inc., in order to make unlimited financial contributions towards “independent” expenditures in support of Republican candidates in the November 2012 elections. Bopp is joined by Roger Villere, the chairman of the Louisiana Republican Party. Bopp is known for arguing high-profile cases against abortion rights (see November 1980 and After and Mid-2004 and After) and campaign finance regulations (see December 10, 2003 and Mid-2004 and After). He was the lawyer who first worked with the lobbying and advocacy group Citizens United, whose lawsuit gave the Supreme Court the opportunity to greatly deregulate campaign finance law (see January 10-16, 2008, March 24, 2008, and January 21, 2010). According to an email from Bopp and Villere, the Republican Super PAC will coordinate with other independent groups “to bridge gaps in the independent campaigns supporting Republican candidates.… The best way to neutralize President Obama’s unprecedented $1 billion political war chest and the political spending by labor unions and wealthy Democrats is to build a super fund-raising infrastructure for independent expenditure spending.” [New York Times, 5/16/2011] The majority of the money raised and spent on behalf of candidates by super PACs has gone to support Republicans, and not President Obama or Democratic candidates (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), and May 5, 2011).

Entity Tags: Roger Villere, James Bopp, Jr, US Supreme Court, Republican Super PAC Inc, Barack Obama

Category Tags: Campaign Finance

In response to reported discussions by the Obama administration on the possible issuance of an executive order forcing government contractors to disclose their political contributions (see April 20, 2011), Republicans in the House and Senate introduce legislation that would block such an order. Representative Tom Cole (R-OK) already successfully added a rider to a defense authorization bill that would block the order. Cole says he hopes that the White House will rethink the proposed executive order in light of the opposition from Congressional Republicans. “I am hoping they’re having second thoughts,” he tells a reporter. “This is the executive branch trying to legislate and use a very powerful weapon to do it. And not just legislate, but it is the executive branch trying to intimidate, in my opinion.” In the House, Representatives Cole, Darrell Issa (R-CA), and Sam Graves (R-MO) are sponsoring legislation against the order, while in the Senate, Senators Susan Collins (R-ME), Lamar Alexander (R-TN), Rob Portman (R-OH), and Minority Leader Mitch McConnell (R-KY) are introducing similar legislation. The bills prohibit federal agencies from collecting political information from government contractors as a condition for receiving a government contract. Cole says though his amendment is in the defense bill, he wants to ensure that government contractors are able to keep their political expenditures out of the public eye. “This is one of those things you attack from as many angles and avenues as you possibly can, because it is so important,” he says. “This will get less scrutiny in that process, and it’s a lot easier for Democrats in the Senate to avoid or to kill. A bill is a big statement.” Senate Democrats are likely to vote down the bills. Fred Wertheimer of Democracy 21, an advocacy group that stands for stricter campaign finance laws, says the Republican bills are “continuation[s] of abandonment of campaign finance disclosure by House Republicans, which began last year.” Wertheimer is referring to the DISCLOSE Act, legislation that would have forced outside political groups to disclose their donors, but was blocked by Republicans from coming to a vote (see July 26-27, 2010). Conservative donor organizations such as the US Chamber of Commerce (see January 21-22, 2010, July 26, 2010, August 2, 2010, October 2010, November 1, 2010, and February 10, 2011) support the Republican legislation. The Republican-led House Administration Committee has scheduled a hearing on the draft order. [The Hill, 5/26/2011]

Entity Tags: Obama administration, Darrell E. Issa, DISCLOSE Act of 2010, Fred Wertheimer, Mitch McConnell, US Senate, US Chamber of Commerce, Robert Jones (“Rob”) Portman, Sam Graves, US House of Representatives, Lamar Alexander, Susan Collins, Thomas Jeffery Cole

Category Tags: Campaign Finance

US District Judge James Cacheris throws out one count of the indictment against two men accused of illegally reimbursing donors to Democratic Senator Hillary Clinton’s Senate and presidential campaigns. In the ruling, Cacheris holds that the campaign finance law banning corporations from making contributions to federal candidates is unconstitutional. Cacheris rules that under the 2010 Citizens United Supreme Court ruling (see January 21, 2010), corporations have the same right as people to contribute to campaigns. No one has attempted to extend the Citizens United ruling to apply directly to campaign contributions by corporations. Previously, the law has been interpreted to apply only to independent corporate expenditures. In his ruling, Cacheris notes that only one other court has addressed the issue, with a Minnesota federal judge ruling that a state ban on corporate contributions is legal. Cacheris writes: “[F]or better or worse, Citizens United held that there is no distinction between an individual and a corporation with respect to political speech. Thus, if an individual can make direct contributions within [the law’s] limits, a corporation cannot be banned from doing the same thing.… That logic is inescapable here.” In court filings, prosecutors defending campaign finance law in the Virginia case said that overturning the ban on corporate contributions would ignore a century of legal precedent. Prosecutor Mark Lytle wrote: “Defendants would have the court throw out a century of jurisprudence upholding the ban on corporate political contributions, by equating expenditures—which the Court struck down in Citizens United—with contributions. This is, however, equating apples and oranges.” The case, United States v. Danielczyk, concerns accusations that William P. Danielczyk Jr. and Eugene R. Biagi helped funnel a corporate contribution to Clinton’s presidential campaign. The two men allegedly reimbursed $30,200 to eight contributors who gave to Clinton’s 2006 Senate campaign, and reimbursed $156,400 to 35 contributors to her 2008 presidential campaign. Clinton is not named as a defendant in the case. [Associated Press, 5/27/2011; New York Times, 5/27/2011]
Strongly Mixed Reactions - Biaigi’s lawyer Todd Richman says after the ruling: “Corporate political speech can now be regulated, only to the same extent as the speech of individuals or other speakers. That is because Citizens United establishes that there can be no distinction between corporate and other speakers in the regulation of political speech.” Sean Parnell of the Center for Competitive Politics, a group opposing campaign-finance regulations, says, “This was definitely something that is almost incidental in terms of the case it was decided in.” Fred Wertheimer of Democracy 21, a group supporting stricter campaign finance laws, says Cacheris went beyond his purview as a federal judge and ignored laws and Supreme Court rulings before the Citizens United decision that were not impacted (see February 7, 1972, April 26, 1978, and March 27, 2002). Had the Supreme Court wanted to overturn the ban on direct corporate campaign contributions, Wertheimer says, it could have done so in the Citizens United decision. Wertheimer says Cacheris’s ruling should be appealed and overturned. Law professor Daniel Ortiz says the ruling “pushes the outer limits of the Citizens United logic,” and will probably be overturned in a higher court. The Citizens United case differentiates between independent expenditures by corporations that are not coordinating with a candidate’s campaign, and direct campaign contributions. [Associated Press, 5/27/2011; New York Times, 5/27/2011] Ian Millhiser of the liberal news Web site Think Progress writes: “If today’s decision is upheld on appeal, it could be the end of any meaningful restrictions on campaign finance—including limits on the amount of money wealthy individuals and corporations can give to a candidate. In most states, all that is necessary to form a new corporation is to file the right paperwork in the appropriate government office. Moreover, nothing prevents one corporation from owning another corporation. Thus, under Cacheris’s decision, a cap on overall contributions becomes meaningless, because corporate donors can simply create a series of shell corporations for the purpose of evading such caps.” [Think Progress, 5/27/2011] Conservative legal scholar Eugene Volokh writes on his blog that he believes the Cacheris decision is in error. He believes the ban on corporate contributions to be legal and appropriate, though unlike Millhiser, he also supports the Citizens United decision. He cites the Supreme Court’s Buckley v. Valeo decision (see January 30, 1976) as limiting the means by which corporations can donate to political campaigns. He echoes Millhiser’s concerns about “shell corporations,” writing: “[T]he problem with corporate contributions is that they provide an avenue for evading individual contribution limits; if I want to donate $25,000 to a candidate instead of the $2,500 limit, I could set up nine corporations, and then donate myself and also have those corporations make similar donations. Few people would do that, but some people who want to be big political players might. Nor can this easily be dismissed as a supposed ‘sham’ and be thus distinguished from ‘legitimate’ corporate contributions.” The ban on direct corporate contributions does not stop individuals from donating directly to campaigns, Volokh writes, and thusly does not encroach on freedom of speech. [Eugene Volokh, 5/27/2011] Law professor Richard Hasen also believes the decision will be overturned or reconsidered, citing the Supreme Court’s ban on direct corporate spending in Federal Election Commission v. Beaumont (see June 16, 2003), a ruling that other courts have held was not overturned by the Citizens United decision. Neither the prosecution nor the defense referred to the Beaumont decision in their arguments. [Rick Hasen, 5/31/2011] “If this case stood, it would mean the end of campaign contribution limits for everyone, because it would be so easy to get around the law through a straw or sham corporation,” Hasen says. [New York Times, 5/27/2011]
Reconsideration - Four days later, Cacheris will ask for briefs from both sides in the case about the issues raised in his decision, indicating that he may well find that the Beaumont decision means that the ban on direct corporate contributions will remain in effect. [Rick Hasen, 5/31/2011] Cacheris will not reconsider his decision. [New York Times, 6/7/2011; Think Progress, 6/8/2011]
Appeals Court Overturns Decision - A day after Cacheris refuses to reconsider his decision, an appeals court will overrule his decision. [Think Progress, 6/9/2011; United States Court Of Appeals for the Ninth Circuit, 6/9/2011 pdf file] In June 2012, a federal appeals court will find that the Citizens United ban does not apply to direct corporate contributions. Appellate Judge Royce Gregory will write, “Leaping to this conclusion ignores the well-established principle that independent expenditures and direct contributions are subject to different government interests.” [Thomson Reuters, 6/28/2012]

Entity Tags: Eugene R. Biagi, Eugene Volokh, Fred Wertheimer, Daniel Ortiz, William P. Danielczyk, Jr, Ian Millhiser, Sean Parnell, James Cacheris, Todd Richman, Richard L. Hasen, Mark Lytle, Royce Gregory, Hillary Clinton

Category Tags: Court Procedures and Verdicts, Campaign Finance

A new “super PAC” aligned with presidential candidate Mitt Romney (R-MA) is being formed by a group of Romney backers and former Romney campaign aides, according to a report by the Washington Post. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization.
Restore Our Future - The Romney super PAC, “Restore Our Future” (ROF), is one of a number of such organizations created in the aftermath of the US Supreme Court’s Citizens United ruling (see January 21, 2010). Restore Our Future is apparently the first super PAC to form specifically in support of one of the 2012 presidential contenders, with the sole exception of Priorities USA Action, a super PAC in support of President Obama. ROF treasurer Charles R. Spies, who served as Romney’s general counsel in his 2008 presidential effort, refuses to disclose how much the organization has raised, or who is donating. Spies merely says: “This is an independent effort focused on getting Romney elected president. We will do that by focusing on jobs and his ability to fix the economy.” A Romney campaign aide says that a Federal Election Commission (FEC) filing coming up in July will show the organization having raised some $20 million. A major Romney donor who refuses to allow his identity to be revealed says, “We just want to show that we’ve got more dough than anyone.” The Romney campaign’s communication director, Gail Gitcho, says the campaign welcomes any outside support, and points to the Obama campaign as the largest fundraiser in the race, saying, “We are pleased that independent groups will be active in fighting this entrenched power [the Obama campaign] so the country can get back to work.”
Leaders of ROF - Members of the ROF board of directors include Spies; Carl Forti, political director for Romney’s 2008 campaign; and Larry McCarthy, a member of the Romney media team in 2008. Forti is the co-founder of the Black Rock Group consulting firm and the political director of American Crossroads, a conservative super PAC expected to raise over $120 million for candidates in 2012. Neither Forti nor American Crossroads will discuss the role played by Forti in both organizations. ROF actually registered itself with the FEC in October 2010, but has remained unaffiliated and essentially dormant until recent weeks. Now ROF officials are briefing top donors about the organization’s plans and fundraising goals. Former Obama spokesman Bill Burton, the head of Priorities USA Action, says: “I’m not surprised that there’s even more money coming into this race to help Mitt Romney. He’s a pretty deeply flawed candidate; he’s going to need all the help he can get.” Dave Levinthal of the Center for Responsive Politics says of the super PACs: “The outside groups are akin to the biggest booster club you can imagine for a college football team. The club can’t give cars or gifts to the players, but they can do everything else possible to support them.… It’s a brand-new way to play politics.” [Washington Post, 6/23/2011] The Post fails to note many of the details about ROF’s senior officials. According to the Public Campaign Action Fund, Spies is not only a lawyer and a consultant, but a registered lobbyist for Clark Hill PLC, representing a chain of luxury casinos. ROF’s address as listed on its FEC filings is the same as Clark Hill’s Washington, DC, office. The Action Fund observes, referring to the Republican primary and the number of wealthy donors lined up behind each major candidate, “While [ROF] officially can’t coordinate with the Romney campaign, having lobbyists on your side is definitely a good way to boost one’s standing in the so-called ‘wealth primary.’” [Public Campaign Action Fund, 6/23/2011] The liberal news Web site Think Progress will soon note that McCarthy is a veteran advertising creator for Republican candidates, and was one of the strongest creative forces behind the infamous 1988 “Willie Horton” ad, which many considered to be extraordinarily racist (see September 21 - October 4, 1988). In 2010, McCarthy served as a media strategist for the American Future Fund, which launched attack ads attempting to link Democrats to the Park 51 community center in Manhattan, deemed by conservatives as the “Ground Zero Victory Mosque” and mischaracterized as a monument celebrating the 9/11 attacks. Those ads were decried by many as being bigoted against Muslims. McCarthy has brushed off criticism of his ads, and said the fact-checking organizations that found his ads to be flawed suffered from a pro-Democratic bias. Think Progress reporter Lee Fang will write that when he tried to find the American Future Fund office in Iowa, the address listed for the group turned out to be a UPS mailbox in a strip mall near an airport. Fang will write, “With a record of such secrecy and racist, anything-goes campaign tactics, one can expect Romney’s new outside group to be just as ugly in the presidential race.” [Politico, 10/29/2010; Think Progress, 6/27/2011]

Entity Tags: Charles R. Spies, Washington Post, Willard Mitt Romney, Carl Forti, American Future Fund, American Crossroads, 2012 Obama presidential election campaign, US Supreme Court, Bill Burton, Think Progress (.org), Public Campaign Action Fund, Larry McCarthy, Gail Gitcho, Federal Election Commission, Dave Levinthal, Lee Fang, Restore Our Future, Priorities USA Action, Mitt Romney presidential campaign (2012)

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

The New York Times reports on fundraising activities by two prominent super PACs, the Republican-favoring American Crossroads and the Democratic-favoring House Majority PAC. American Crossroads reports raising $3.8 million since the beginning of the year, almost all of that money coming from a few wealthy donors: former Univision chairman A. Jerrold Perenchio ($2 million), Robert B. Rowling ($1 million), and Bob Perry ($500,000). The House Majority PAC, which has not been in existence as long as American Crossroads, raised $800,000 in that same time period—less than a fourth of that raised by American Crossroads—with a larger number of lesser donations. Some of its donors include S. Donald Sussman ($150,000), Fred Eychaner ($100,000), George Soros ($75,000), and labor unions such as the American Federation of State, County and Municipal Employees (AFSCME) and the Communications Workers of America (CWA). The House Majority PAC has spent over half of its donations on US House races. Both super PACs filed earlier than the July 15 reporting date because of activity surrounding a recent special House election in New York. Super PACs are allowed to raise and spend unlimited amounts, but must report their donations and their donors. [New York Times, 6/24/2011]

Entity Tags: Communications Workers of America, A. Jerrold Perenchio, American Crossroads, Bobby Jack Perry, S. Donald Sussman, New York Times, Fred Eychaner, George Soros, American Federation of State, County and Municipal Employees, House Majority PAC, Robert B. Rowling

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

The US Supreme Court strikes down part of an Arizona law providing public funding for political campaigns. In the case of Arizona Free Enterprise Club’s Freedom PAC v. Bennett, the Court rules 5-4 that a provision in Arizona law providing additional funds to publicly funded candidates whose opponents use private donations to outspend them is illegal. Some opponents of unfettered outside spending feared that the Court would use the case to put an end to most, if not all, programs that provide public money to candidates; Think Progress’s Ian Millhiser explains: “Candidates will only agree to accept public financing if it won’t prevent them from running a competitive race. If a state offers only a few thousand dollars in public funds to a candidate whose opponent is backed by tens of millions of corporate dollars, then the non-corporate candidate will have no choice but to raise money on their own. To defend against this problem, Arizona developed a two-tiered public financing system. Candidates receive additional funds if their opponent or corporate interest groups overwhelm them with attack ads, and thus candidates who are determined not to be tainted by the corrupting influence of major donors are not left defenseless.” The ruling will not have an impact on the presidential race, since the federal public financing system lacks such a provision, and since it seems unlikely that either President Obama or his Republican challenger Mitt Romney (R-MA) will use public financing in 2012. The case was brought by two organizations, the Institute for Justice and the Goldwater Institute, on behalf of Arizona state candidates who rejected public funds. The groups argued that the provision infringed on those candidates’ freedom of speech by compelling them to spend less money to avoid triggering the additional funds.
Majority, Minority Opinions - Writing for the majority, Chief Justice John Roberts agreed: “We hold that Arizona’s matching funds scheme substantially burdens protected political speech without serving a compelling state interest and, therefore, violates the First Amendment.” The matching funds provision “imposes an unprecedented penalty on any candidate who robustly exercises [his] First Amendment right[s],” Roberts adds. If the provision is allowed to stand, “the vigorous exercise of the right to use personal funds to finance campaign speech” leads to “advantages for opponents in the competitive context of electoral politics.” The privately funded candidate, Roberts writes, must “shoulder a special and potentially significant burden” when choosing to exercise his First Amendment right to spend funds on behalf of his candidacy. Justice Elena Kagan dissents, writing that the plaintiffs “are making a novel argument: that Arizona violated their First Amendment rights by disbursing funds to other speakers even though they could have received—but chose to spurn—the same financial assistance. Some people might call that chutzpah.”
Reactions - Attorney Bill Maurer, who represented the Institute for Justice, says the ruling “makes clear that the First Amendment is not an exception to campaign finance laws; it is the rule” (see January 30, 1976 and January 21, 2010). He adds that he hopes the ruling will serve as “a clear reminder to government officials that they may not coerce speakers to limit their own speech.” Millhiser writes: “So public financing laws can technically remain, but Arizona’s attempt to protect publicly financed candidates from a wave of corporate attack ads is absolutely forbidden. Moreover, because few candidates can know in advance whether the will face an onslaught of hostile corporate ads, most candidates will hedge their bets and avoid the risk of public financing.… Without unlimited corporate money in elections, most candidates could afford to take public funds unless their opponent had unusual access to wealth or wealthy donors.” Referring to the 5-4 Citizens United decision (see January 21, 2010), Millhiser continues, “In the post-Citizens United America, however, no one is safe from corporate America’s nearly bottomless pool of potential campaign expenditures.” Nick Nyhart of Public Campaign, an organization opposed to the unrestricted influence of outside donors, says, “The five-vote Big Money majority on the court has spoken again in favor of wealthy special interests.” Fred Wertheimer of the campaign finance group Democracy 21 calls the ruling “another seriously misguided campaign finance decision,” but adds “it does not cast any doubt on the continued viability or constitutionality of a number of other existing public financing systems that do not include ‘trigger funds’ or similar provisions.” Common Cause President Bob Edgar says, “This is not the death knell of public financing.” [Politico, 6/27/2011; Think Progress, 6/27/2011]
Plaintiffs Financed by Wealthy Conservative Interests - The next day, Think Progress’s Lee Fang will reveal that the two groups who filed the lawsuit, the Institute for Justice and the Goldwater Institute, are financed by wealthy conservative interests. The Institute for Justice, a group dedicated to bringing cases to court in order to deregulate private corporations and to increase the participation of wealthy corporate interests in elections, was created with “seed money” from oil billionaire Charles Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, and September 24, 2010). The Walton Family Foundation, a foundation run by the billionaire family of Arkansas retailer Sam Walton (the founder of Wal-Mart), has donated $1.64 million to the group. The Foundation has written that the Citizens United decision and the Arizona case are two top priorities for the Institute. The Goldwater Institute, one of Arizona’s most prominent conservative think tanks, is focused on rolling back health care reform. The Institute is funded by several foundations, including the Walton and the Charles Koch Foundations. Fang notes that much of the funding for both groups remains undisclosed. [Think Progress, 6/28/2011]

Entity Tags: Fred Wertheimer, Elena Kagan, Bob Edgar, Bill Maurer, Barack Obama, Willard Mitt Romney, Walton Family Foundation, US Supreme Court, Nick Nyhart, Institute for Justice, John G. Roberts, Jr, Ian Millhiser, Goldwater Institute, Lee Fang, Charles Koch

Category Tags: Campaign Finance

Ohio Governor John Kasich (R-OH) signs a sweeping election measure that may, if it goes into effect, prevent hundreds of thousands of Ohio citizens from voting in November. Parts of the law are being challenged in court, and an effort to repeal it via a voter referendum is underway. The law shortens Ohio’s early voting period, bans in-person early voting on Sunday (a measure many believe is designed to thwart the historic “Souls to the Polls” activities often used by African-American churches to help their congregations vote), and prohibits boards of election from mailing absentee ballot requests to voters. Democrats in the Ohio legislature fought against the bill, but were outvoted in the final votes in both chambers. Former Ohio Secretary of State Jennifer Brunner (D-OH) says the law places undue barriers on voters and must be repealed. “It’s an accumulation of small procedural changes that add up to be the potential for long lines, dissatisfied voters, and less certainty on election results,” she says. Many of the law’s provisions came from current Secretary of State Jon Husted (R-OH). He has argued that Ohio’s 88 counties need uniform voter procedures. He claims the law has no political aspects nor any political ramifications. Brunner and other critics admit that parts of the bill are positive, particularly language that brings Ohio’s elections laws in line with federal court decisions, and they do not intend to challenge the law’s moving the state’s presidential primary from March to May. Provisions being challenged include:
bullet reducing the early-voting window from the current 35 days before Election Day to 21 days for voting by mail and 17 days for voting in person, eliminating the so-called “golden week” when people could register and vote on the same day;
bullet limiting Saturday in-person, early voting from 8 a.m. to noon and banning Sunday voting outright;
bullet prohibiting in-person early voting the weekend before Election Day;
bullet banning local boards of elections from mailing unsolicited absentee ballot requests to voters and prohibiting the boards from paying the return postage on the applications or ballots; and
bullet specifying that poll workers may—but are not required—to tell voters they are in the wrong precinct. [American Civil Liberties Union, 2011; Associated Press, 7/15/2011; Columbus Dispatch, 7/29/2011]
The law does not contain a controversial voter ID provision, but House Republicans want the Senate to pass a separate photo ID requirement later in July. The Senate seems to be leaning towards allowing a voter ID provision, but giving voters without the “proper” identification the alternative of casting a provisional ballot, a measure supported by Husted. Representative Lou Blessing (R-OH) says, “It’s almost ludicrous to think anyone is being suppressed” by the bill. [Columbus Dispatch, 7/29/2011] Many critics find the provision that allows poll workers to refuse to help voters to be particularly onerous. State Senator Nina Turner (D-OH) notes, “Voting in the wrong precinct led to over 14,000 registered voters statewide [losing] their vote in 2008,” a statement rated “true” by the nonpartisan fact-checking organization PolitiFact. Most of those votes were cast in what the Cleveland Plain Dealer called “urban and impoverished areas of the state,” which traditionally lean Democratic. Turner says of state Republicans, “I guess the loss of votes for some doesn’t matter.” [Think Progress, 7/5/2011] Overall, the Columbus Dispatch will conclude that some 234,000 voters in Columbus alone who successfully cast their ballots in 2008 would find themselves either entirely disenfranchised by the new law or facing new hurdles to casting their votes. Representative Marcia Fudge (D-OH) says the law overturns many of the reform measures passed after the 2004 elections, when many critics believe voter restrictions had a huge impact on the outcome in the presidential election in Ohio. “The only reason to limit these requirements is to limit voting and to strip targeted populations of their right to vote,” she says. “Anyone who values our democracy can understand why it is necessary to make voting easier for citizens, not more difficult.” Ohio Board of Elections chairman Doug Preisse, who chairs the Franklin County Republican Party, is also concerned about the new bill. “I could quibble with a few aspects because I’m looking at it from the challenge of running elections in a big county,” he says. “Did they get it right this time? I’m not sure.” [Think Progress, 7/25/2011]

Entity Tags: Cleveland Plain Dealer, Columbus Dispatch, Doug Preisse, Jon Husted, Jennifer Brunner, John Kasich, Marcia Fudge, Lou Blessing, Nina Turner

Timeline Tags: 2012 Elections

Category Tags: Impositions on Rights and Freedoms, Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement, Voting Rights

A mysterious company that donated $1 million to a political action committee (PAC) favoring presidential candidate Mitt Romney (R-MA) dissolves just months after its formation, leading some to speculate that its only purpose was to make political donations. The company, W Spann LLC, was formed on March 15, 2011 by Boston lawyer Cameron Casey, who specializes in estate tax planning—“wealth transfer strategies”—for “high net worth individuals,” according to corporate records and the lawyer’s biography on her firm’s Web site. Casey filed a “certificate of formation” with the Delaware Secretary of State’s office, but provided no information about the firm. The only address listed was that of a Wilmington, Delaware, registered agent service, Corporation Service Company, which provides such services for many companies. That firm refuses to discuss its clients. Spann’s address was listed as 590 Madison Avenue, New York City, a midtown Manhattan office building, but the building’s management firm, Minskoff Equities, shows no records of any such tenant. On April 28, W Spann LLC donated $1 million to Restore Our Future, a “super PAC” (see 2000 - 2005 and June 30, 2000) aligned with the Romney campaign (see June 23, 2011). Casey dissolves the company today, two weeks before Restore Our Future makes its first campaign filing of the year reporting the donation, by filing a “certificate of cancellation.” Lawrence Noble, the former general counsel of the Federal Election Commission (FEC), says, “I don’t see how you can do this,” when asked about the donation. If the only purpose of Spann’s formation was to contribute to the pro-Romney group, “There is a real issue of it being just a subterfuge” and that could raise a “serious” legal issue, Noble says. At least, “[w]hat you have here is a roadmap for how people can hide their identities” when making political contributions. Casey will refuse to discuss the matter with the press, and her employer, the law firm Ropes & Gray, will say through a spokesman that it cannot comment. (Ropes & Gray has as a longtime client Bain Capital, the firm formerly headed by Romney. The law firm has its offices at 590 Madison.) Restore Our Future campaign treasurer Charles Spies, a former Romney campaign official, will also refuse to answer questions about Spann. He will say, “Restore Our Future has fully complied with, and will continue to comply with, all FEC disclosure requirements.” A Romney campaign official will later add, “Mitt Romney follows both the letter of the law and the spirit of the law in all circumstances.” Bain Capital spokesperson Alex Stanton says of W Spann: “Bain Capital has many employees who actively participate in civic affairs, and they individually support candidates from both parties. The firm takes no position on any candidate, and the entity in question is not affiliated with Bain Capital or any of our employees.” Critics say the Spann story shows how easily disclosure requirements are being avoided in the aftermath of the Citizens United decision (see January 21, 2010). “This is sham disclosure. It’s a barrier to disclosure,” says Michael Malbin of the Campaign Finance Institute. It is another example of how American political campaigns have gone “back to the future” and to the “pre-Watergate days” (of 1972) when Richard Nixon was raising unlimited amounts of money without disclosure, Malbin says. [MSNBC, 8/4/2011]

Entity Tags: Lawrence M. Noble, Bain Capital, Alex Stanton, Cameron Casey, Corporation Service Company, Restore Our Future, W Spann LLC, Michael Malbin, Minskoff Equities, Charles R. Spies, Ropes & Gray, Willard Mitt Romney

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

On a 259-169 vote, the US House of Representatives passes an amendment that would “prohibit the use of funds to implement any rule, regulation, or executive order regarding the disclosure of political contributions.” The amendment to an unrelated bill was introduced by Representative Rodney Frelinghuysen (R-NJ) on June 24, 2011. The amendment is aimed at preventing the Obama administration from implementing any policy or executive order that would force disclosure on the anonymous corporate donors that have spent tens of millions of dollars influencing elections since the Citizens United ruling (see January 21, 2010). Eighteen Democrats join almost every Republican in voting for the amendment. Ian Millhiser of the liberal news Web site Think Progress speculates that many of those voting for the amendment were influenced by a huge corporate public relations and lobbying effort against campaign finance. After the media revealed that the Obama administration was considering issuing an executive order that would force government contractors to disclose their campaign donations (see April 20, 2011 and May 26, 2011), as Millhiser writes, “industry groups responded by ginning up paranoid fantasies claiming that the administration would use these disclosures to create a ‘pay to play’ scenario where only contractors who donate to Democratic causes could receive contracts.” Recent history, however, indicates that mandated disclosure would bring about the opposite effect, Millhiser writes. He recalls the 2008 resignation of Housing and Urban Development Secretary Alphonso Jackson, who was implicated in a huge scandal involving his office’s illegal contracting practices, wherein President Bush’s political opponents were denied government contracts while “personal cronies” were awarded contracts. “Had a disclosure rule been in effect,” Millhiser writes, “it would have been possible to compare the donation patterns of all government contractors against who was awarding them contracts, and systematically uncover examples of political corruption. Transparency is the enemy of corruption—not the means to implement it.” [Washington Post, 5/15/2011; US House of Representatives, 7/15/2011; Think Progress, 7/18/2011]

Entity Tags: US House of Representatives, Ian Millhiser, Obama administration, Rodney Frelinghuysen

Category Tags: Campaign Finance

Law professor John Yoo, who during his tenure at the Justice Department wrote memos defending torture and the right of the executive branch to conduct its business in secret (see March 1996, September 25, 2001, September 25, 2001, October 4, 2001, October 23, 2001, October 23, 2001, November 2, 2001, November 5, 2001, and November 6-10, 2001), co-authors an article for the far-right American Enterprise Institute that attacks the Obama administration for considering the idea of an executive order to require government contractors to disclose their political contributions (see April 20, 2011 and May 26, 2011). The article, by Yoo and lawyer David W. Marston, is entitled “Overruling Citizens United with Chicago-Style Politics,” a reference to some of the unsavory and often-illegal political machinations undertaken by Chicago Democrats. The article repeatedly compares the Obama administration to the Nixon administration’s attempts to “use the available federal machinery to screw [their] political enemies,” as Yoo and Marston quote from a 1971 Nixon White House memo. Yoo and Marston say that the Obama administration, in an effort to recoup its losses from the Citizens United decision (see January 21, 2010]), “is making an unprecedented assault on free speech” by considering the executive order and by pushing the DISCLOSE Act (see July 26-27, 2010). (Yoo and Marston claim that the DISCLOSE Act, if passed into law, “would have forced all those doing business with the government to give up their ability to participate in the political process, as is their right under the First Amendment, aside from just voting on Election Day.”) They write: “Under the guise of ‘transparency’ and ‘accountability,’ the order curtails constitutionally protected speech rights and opens the door for retaliation against those not supporting the administration politically,” and go on to observe that in their opinion, this “assault on free speech” (see January 21, 2010 and January 22, 2010) is being joined by “the media [and] defenders of free speech.” Yoo and Marston claim that the Founding Fathers intended for corporations and other entities to be able to involve themselves in politics entirely anonymously, citing the example of Alexander Hamilton, John Jay, and James Madison publishing the Federalist Papers under the nom de plume “Publius.” Indeed, Yoo and Marston write, “disclosure of political contributions may be a prelude to the thuggish suppression of political speech by harassment and intimidation,” and they cite the instances of boycotts, vandalism, and death threats against people in California who donated money in support of Proposition 8, which declared gay marriage illegal. “Mandated disclosure of financial support for a political viewpoint can become the springboard for lawless retaliation against citizens for holding unpopular views,” the authors write. “Disclosure” and “transparency,” the “wonder drugs du jour,” are already “being used to silence core First Amendment speech rights and to threaten America’s long protection of anonymous political speech,” they contend, and claim that “thugs” are attempting to use violence and intimidation to nullify the Citizens United decision, force the issuance of the Obama executive order, and push the Federal Election Commission (FEC) to expand disclosure requirements. Only allowing financial donors to remain secret, the authors say, protects their rights to free speech and political involvement. “[D]isclosure invites retaliation,” they argue; only secrecy can protect free speech. The authors even cite a case brought on behalf of the NAACP, in which the organization was allowed to keep its membership lists secret for fear of attacks on its members or their families by white supremacists. [American Enterprise Institute, 7/20/2011] Ian Millhiser, a legal expert for the liberal news Web site Think Progress, angrily rebuts Yoo and Marston’s claims. Millhiser, referencing Yoo’s opinions issued during his stint in the Bush administration, writes, “If there is anyone in the universe who should think twice before criticizing a government lawyer for enabling a president to break the law, it is John Yoo.” He goes on to criticize Yoo’s legal thinking in the article, noting that the Citizens United ruling held that “disclosure could be justified based on a governmental interest in ‘provid[ing] the electorate with information’ about the sources of election-related spending.” Millhiser writes: “President Obama’s proposed executive order provides the electorate with information about the sources of election-related spending. So Yoo’s entire argument can be rebutted in exactly two sentences.” After rebutting other portions of Yoo and Marston’s arguments, Millhiser concludes, “Yoo’s defense of corporate America’s power to secretly buy elections is weak even by his own tragically incompetent standards.” [Think Progress, 7/22/2011]

Entity Tags: Ian Millhiser, American Enterprise Institute, DISCLOSE Act of 2010, Federal Election Commission, Nixon administration, US Department of Justice, John C. Yoo, David W. Marston, Obama administration

Category Tags: Impositions on Rights and Freedoms, Campaign Finance

A dozen wealthy donors have contributed over half of the money collected by so-called “super PACs” in the first half of 2011, according to an analysis by USA Today. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization.
Majority of Donors Republican Contributors - The majority of those donors are contributing to Republican/conservative organizations, and overall, Republican organizations are outraising Democratic organizations by a 2-1 margin. American Crossroads, the organization formed by former Bush political advisor Karl Rove, has collected $2 million from billionaire Jerry Perenchio, another million from billionaire Robert B. Rowling, and $500,000 from Texas real estate billionaire Bob Perry. The super PAC supporting the Obama reelection campaign, Priorities USA Action, founded by former Obama spokesperson Bill Burton, has collected $2 million from Hollywood mogul Jeffrey Katzenberg, and $500,000 each from media owner Fred Eychaner and from the Service Employees International Union (SEIU). The super PAC supporting the presidential campaign of Mitt Romney (R-MA), Restore Our Future (see June 23, 2011), has received million-dollar donations from hedge fund manager John Paulson, Utah firms Eli Publishing and F8 LLC, and the shadowy W Spann LLC (see July 12, 2011). It has also received half a million each from Perry, financiers Louis Moore Bacon and Paul Edgerly, Edgerly’s wife Sandra Edgerly, New Balance Athletic Shoes executive James S. Davis, J.W. Marriott of the hotel chain Marriott International, and Richard Marriott of Host Hotels and Resorts. Meredith McGehee of the Campaign Legal Center says: “The super PACs are for the wealthy, by the wealthy, and of the wealthy. You’re setting up a dynamic where the candidates could become bit players in their own campaigns,” particularly in less-expensive races for the House of Representatives. Katzenberg says his donation to the Obama-supporting super PAC was because of the increasing dominance of “Republican extremists” in national elections: “The stakes are too high for us to simply allow the extremism of a small but well-funded right wing minority to go unchallenged.” Charles Spies, the treasurer of Restore Our Future and Romney’s former general counsel, refuses to discuss donors, but says, “Donors recognize Mitt Romney is the most experienced and qualified candidate to challenge President Obama’s record of out-of-control, big government spending.” One donation drawing scrutiny is a $193,000 donation to the presidential campaign of Governor Rick Perry (R-TX) from a group called Americans for Rick Perry. The primary funder of that group is Texas billionaire Harold Simmons, who gave $100,000 to the group 10 days after Perry signed legislation allowing Simmons’s company to accept low-level radioactive waste from other states at its West Texas facility. A Perry spokesman denies any coordination between Simmons and his campaign, and says Perry has not even decided whether to run for president. Simmons helped fund the 2004 group Swift Boat Veterans for Truth, which launched a powerful campaign that smeared then-presidential candidate John Kerry (D-MA) and his Vietnam War record. American Crossroads has reported raising $3.9 million during the first six months of 2011. Its affiliate, Crossroads GPS, has spent $19 million on anti-Democrat advertising so far. That group does not have to report its donors or the amounts it receives. [USA Today, 8/4/2011]
'Recipe for Corruption - Legal expert Ian Millhiser of the liberal news Web site Think Progress comments: “It’s tough to imagine a surer recipe for corruption. Although super PAC’s are prohibited from giving money directly to candidates—one of the few remaining campaign finance laws that wasn’t eviscerated by Citizens United and similar cases (see January 21, 2010)—it’s not like a presidential candidate isn’t perfectly capable of finding out which billionaires funded the shadowy groups that supported their campaign. Moreover, if just a handful of people are responsible for the bulk of these donations, a newly elected president will have no problem figuring out who to lavish favors on once they enter the White House.” [Think Progress, 8/4/2011]

Entity Tags: Charles R. Spies, Robert B. Rowling, Richard Marriott, Bobby Jack Perry, Sandra Edgerly, Service Employees International Union, USA Today, W Spann LLC, A. Jerrold Perenchio, American Crossroads, American Crossroads GPS, Priorities USA Action, Paul Edgerly, Restore Our Future, Bill Burton, Harold Simmons, Meredith McGehee, Fred Eychaner, Eli Publishing, F8 LLC, Ian Millhiser, Louis Moore Bacon, James S. Davis, John Paulson, Karl C. Rove, James Richard (“Rick”) Perry, Jeffrey Katzenberg, J. W. (“Bill”) Marriott

Category Tags: Campaign Finance

A three-judge district court in Washington, DC, denies a lawsuit, Bluman v. Federal Election Commission, filed by two foreign citizens asking that they be allowed to contribute money to US political campaigns (see March 2011). Two of the judges, Brett Kavanaugh and Rosemary Collyer, were both appointed to the bench by the Bush administration. The court finds: “[I]t is undisputed that the government may bar foreign citizens from voting and serving as elected officers. It follows that the government may bar foreign citizens (at least those who are not lawful permanent residents of the United States) from participating in the campaign process that seeks to influence how voters will cast their ballots in the elections. Those limitations on the activities of foreign citizens are of a piece and are all ‘part of the sovereign’s obligation to preserve the basic conception of a political community.’” Kavanaugh’s concurrence even cites, briefly, foreign law: “It bears mentioning, moreover, that plaintiffs’ home countries—Israel and Canada—and many other democratic countries impose similar restraints on political spending by foreign citizens. See, e.g., Canada Elections Act [and] Knesset Election Law.” The plaintiffs, identified as Benjamin Bluman and Asenath Steiman, had argued that the Citizens United decision (see January 21, 2010) opened the door for foreign involvement in US elections. The case can be appealed to the Supreme Court. [Memorandum Opinion, 8/8/2011; Think Progress, 8/8/2011; New York Times, 1/5/2012] The Supreme Court will deny the Bluman appeal (see January 9, 2012).

Entity Tags: US Supreme Court, Rosemary Collyer, Brett Kavanaugh, Asenath Steiman, Federal Election Commission, Benjamin Bluman

Category Tags: Court Procedures and Verdicts, Campaign Finance

The US Court of Appeals for the First Circuit issues a pair of rulings in two related cases that affirm campaign finance disclosure provisions in Maine and Rhode Island. Both cases were brought by the National Organization for Marriage (NOM), a conservative group that opposes, among other things, state and federal laws granting gays and lesbians the right to marry. The Citizens United ruling (see January 21, 2010) allows for unlimited donations from corporations and labor unions, but also upholds disclosure laws that can be “justified based on a governmental interest in ‘provid[ing] the electorate with information’ about the sources of election-related spending.” NOM’s pair of lawsuits challenged those areas of campaign finance laws in the two states, asking that NOM’s donors be allowed to remain secret. The court denies the lawsuits, writing in part: “In an age characterized by the rapid multiplication of media outlets and the rise of internet reporting, the ‘marketplace of ideas’ has become flooded with a profusion of information and political messages. Citizens rely ever more on a message’s source as a proxy for reliability and a barometer of political spin. Disclosing the identity and constituency of a speaker engaged in political speech thus ‘enables the electorate to make informed decisions and give proper weight to different speakers and messages.‘… Additionally, in the case of corporate or organizational speakers, disclosure allows shareholders and members to ‘hold them accountable for their positions.‘… In short, ‘the First Amendment protects political speech; and disclosure permits citizens and shareholders to react to that speech in a proper way.’” Unless the appellate court’s decisions are overturned, the two states’ campaign disclosure statutes will remain in effect. NOM attorney James Bopp used a number of arguments in court that legal analyst Ian Millhiser will characterize as “paranoid fantasies regarding the impact of disclosure laws,” such as the need for anti-gay groups to keep their donors secret to protect those donors from harassment and threats. Industry groups have argued that government officials intend to use disclosure laws to reward their political allies. Millhiser will observe sardonically, “Because there is nothing dirtier than requiring wealthy individuals and corporations to come out from the shadows and reveal which elections they want to buy.” Similar lawsuits against campaign disclosure laws in Florida and New York, which Millhiser will say are the product of a “coordinated campaign” against disclosure, are pending. A lower court dismissed the New York case, and that decision is in the process of being appealed. [NATIONAL ORGANIZATION FOR MARRIAGE et al v. WALTER F. MCKEE et al, 8/11/2011; NATIONAL ORGANIZATION FOR MARRIAGE v. JOHN DALUZ, 8/11/2011; Policy Shop, 8/16/2011; Think Progress, 8/17/2011] Shortly after the Citizens United ruling, Bopp confirmed that this case, like the Citizens United case and others (see Mid-2004 and After), is part of a long-term strategy to completely dismantle campaign finance law (see January 25, 2010).

Entity Tags: National Organization for Marriage, James Bopp, Jr, Ian Millhiser

Category Tags: Court Procedures and Verdicts, Campaign Finance

Presidential candidate Mitt Romney (R-MA) visits the Iowa State Fair. He is flanked by several campaign volunteers.Presidential candidate Mitt Romney (R-MA) visits the Iowa State Fair. He is flanked by several campaign volunteers. [Source: Washington Post]Presidential contender Mitt Romney (R-MA) delivers a speech at the Iowa State Fair, just before a Republican presidential debate the same evening and an upcoming Iowa straw poll, and after the speech, he tells the crowd that “corporations are people.” Romney has some difficulty with members of the audience during the question-and-answer session. The first questioner asks if Romney, as president, would be willing to raise the cap on payroll taxes so that rich people would have to pay more into the system. Romney, who is worth well over $200 million, answers that such a move would be the same as “attacking people because of their success,” and adds, “You know, there was a time in this country when we didn’t celebrate attacking people based on their success and when we didn’t go after people because they were successful.” He then attacks President Obama’s fiscal policies (later saying that he believes Obama may “take… his political inspiration from the social Democrats of Europe”), and claims that “half” of Americans “pay no taxes at all.” He also claims that if the country intends to pay the same Social Security, Medicare, and Medicaid benefits to citizens in the future as it pays today, taxes for those programs would have to be raised from 15 percent of income to 44 percent. A second questioner asks Romney what he intends to do to strengthen Social Security, Medicaid, and Medicare without cutting benefits. He shouts down the questioner, and answers another crowd member who says, “You came here to listen to the people,” by saying, “No, no, no, no, I came here to speak, and you’ll get to answer your question.” Some in the crowd boo him. He then says about Social Security and Medicare: “I’m not going to raise taxes. That’s my answer.” As he delivers his answer, some in the crowd begin chanting: “Wall Street greed! Wall Street greed!” He tells the crowd that in order to “save” Social Security, “completely eliminating the cap without increasing benefits actually creates a long-term surplus, and eliminating the cap while increasing benefits comes close.” During the exchange, Romney supporters, who make up the majority of the crowd, cheer the candidate on. Ian Millhiser of the liberal news Web site Think Progress writes that Romney “frequently responded belligerently to their anger.” Romney spurs further ire when he says that the US “should consider a higher retirement age” for Social Security and Medicare in order to preserve tax breaks for corporations. He says he does not support preserving Social Security by raising taxes on people, and some in the crowd shout: “Corporations! Corporations!” Romney then responds, “Corporations are people, my friend.” Some in the crowd shout back, “No they’re not!” and Romney replies: “Of course they are. Everything corporations earn ultimately goes to people. Where do you think it goes?” Someone shouts, “It goes into your pocket!” and Romney retorts: “Whose pockets? Whose pockets? People’s pockets. Human beings, my friend.” Millhiser writes of the exchange: “Romney’s antagonists are right that corporate money flows right into Romney’s pockets. Indeed, Romney has taken more money from corporate and other lobbyists than all the other GOP candidates put together, and this will likely only be the beginning for Romney if he becomes the GOP nominee.” Millhiser writes that it is likely Romney is referring to the Citizens United decision (see January 21, 2010) in characterizing “corporations [as] people.” [Washington Post, 8/11/2011; Think Progress, 8/11/2011; Think Progress, 8/11/2011]
'Debate Prep' - The Washington Post’s Philip Rucker calls the “testy” interactions between Romney and the audience “the best debate prep session he could have hoped for.” Democratic National Committee (DNC) chair Debbie Wasserman Schultz (D-FL) is less impressed, saying in a statement that Romney’s characterization of corporations as people is a “shocking admission.” She adds, “Mitt Romney’s comment today that ‘corporations are people’ is one more indication that Romney and the Republicans on the campaign trail and in Washington have misplaced priorities.” [Washington Post, 8/11/2011]
Romney Campaign Defends Characterization - Later in the day, Romney spokesperson Eric Fehrnstrom defends the “corporations are people” statement on Twitter, posting: “Do folks think corporations are buildings? They’re people who incorporate to conduct business. They create jobs and hire more people.” Romney’s Republican opponent Jon Huntsman (R-UT) counters through spokesperson Tim Miller, again on Twitter; Miller posts, “Was American Pad & Paper Company a person/friend?” The reference is to the firm American Pad and Paper (AMPAD), which was a thriving company before Romney’s firm Bain Capital acquired it, closed two of its US plants, laid off 385 workers, and drove the firm into bankruptcy. [TPM DC, 8/11/2011]
'Gift' to Opponents - National Public Radio’s Frank James calls the statement “a gift” to Romney’s political opponents, and says it may well follow him all the way into the November presidential elections if Romney wins the Republican nomination. “He just made their goal of pushing the narrative that he is a tool of corporate America much easier by providing them with that handy piece of video,” James writes. He also notes that Twitter is almost immediately inundated with posts mocking the comment. James’s NPR colleague Liz Halloran, who is in the crowd, later writes of the comment, “Not his best moment.” She praises Romney for being willing to engage with his critics during the exchange. [National Public Radio, 8/11/2011]

Entity Tags: Eric Fehrnstrom, Debbie Wasserman Schultz, Bain Capital, American Pad and Paper, Barack Obama, Tim Miller, Willard Mitt Romney, Liz Halloran, Jon Huntsman, Ian Millhiser, Frank James, Philip Rucker, Iowa State Fair

Category Tags: Campaign Finance

Rolling Stone reporter Ari Berman writes that Republican lawmakers across the nation have launched “an unprecedented, centrally coordinated campaign to suppress the elements of the Democratic vote that helped elect Barack Obama in 2008. Just as Dixiecrats once used poll taxes and literacy tests to bar black Southerners from voting, a new crop of GOP governors and state legislators has passed a series of seemingly disconnected measures that could prevent millions of students, minorities, immigrants, ex-convicts and the elderly from casting ballots.” The initiative is ostensibly to counter the “epidemic” of “voter fraud” that Republicans insist is not only plaguing the nation, but affecting the outcome of elections. (In 2007, the Brennan Center released a report that found the instance of voter fraud vanishingly small, and concluded that more people die by lightning strikes than commit voter fraud—see 2007). Judith Browne-Dianis of the Advancement Project tells Berman, “What has happened this year is the most significant setback to voting rights in this country in a century.” As far back as 1980, powerful Republican operative Paul Weyrich told evangelical leaders: “I don’t want everybody to vote. As a matter of fact, our leverage in the elections quite candidly goes up as the voting populace goes down.” In 2010, the American Legislative Exchange Council (ALEC), a group founded by Weyrich and funded in part by the billionaire Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011), began working to disenfranchise hundreds of thousands, perhaps millions, of legitimate voters, almost of all identified as being part of ethnic or gender groups that are more likely to vote Democratic. Thirty-eight states have submitted legislation designed to impede voting “at almost every step of the electoral process.”
Requiring Proof of Citizenship - Kansas and Alabama now require would-be voters to show proof of US citizenship before being allowed to vote.
Impeding Voter Registration - Florida and Texas have passed legislation making it more difficult for groups like the League of Women Voters, an organization widely considered to lean Democratic, to register new voters. Maine repealed same-day registration, which had been in effect since 1973 and had worked to significantly increase voter participation. The Florida legislature passed a law requiring groups to hand in voter registration forms within 48 hours of collection, and imposed what Berman calls “a barrage of onerous, bureaucratic requirements” and serious criminal penalties for those who fail to comply. As a result, many people who once volunteered to help register voters are afraid to do so again. The League of Women Voters says it will no longer operate in Florida, and called Florida’s efforts “good old-fashioned voter suppression.” The Florida statute took effect one day after its passage, under an emergency statute designed for “an immediate danger to the public health, safety or welfare.” Since 2009, Florida has arrested a total of three people for suspected voter fraud. Republican state senator Mike Fasano, one of the few in his party to oppose the restrictions on registrations, says, “No one could give me an example of all this fraud they speak about.”
Curbing Early Voting - Florida, Georgia, Ohio, Tennessee, and West Virginia have cut short early-voting periods. Six states have moved to impose new restrictions on voter registration drives. In 2004, then-Florida governor Jeb Bush (R-FL) said he thought early voting was “great.… It’s another reform we added that has helped provide access to the polls and provide a convenience. And we’re going to have a high voter turnout here, and I think that’s wonderful.” However, his successor Rick Scott (R-FL) does not agree, and neither do most Republicans. After analysis showed what a benefit early voting was for Obama’s numbers, early voting became a key target. Florida has cut early voting days from 14 to 8 days. Ohio, where early voting numbers gave Obama a narrow victory in 2008, has cut its early voting days from 35 to 11, with only limited hours on weekends. Both states have banned voting on the Sunday before elections, when many black churches historically mobilize their constituents. The Early Voting Information Center at Reed College states, “There is no evidence that any form of convenience voting has led to higher levels of fraud.”
Denying Convicted Felons the Right to Vote - Florida and Iowa have passed laws denying convicted felons the right to vote, disenfranchising thousands of previously eligible voters even if they have already served their sentences and have returned to society. Former Florida Governor Charlie Crist (R-FL) restored the voting rights of 154,000 felons convicted of non-violent crimes. In March 2011, after 30 minutes of public debate, Governor Scott overturned that decision, instantly disenfranchising almost 98,000 citizens and prohibiting another 1.1 million convicts from being allowed to vote after they are released from prison. Former President Bill Clinton asked in July: “Why should we disenfranchise people forever once they’ve paid their price? Because most of them in Florida were African-Americans and Hispanics and would tend to vote for Democrats—that’s why.” Iowa Governor Terry Branstad (R-IA) recently took a similar action, overturning his predecessor’s decision to restore voting rights to some 100,000 ex-felons. Until recent years, Iowa saw up to five percent of its residents ineligible to vote, including 33 percent of its African-American residents. Florida, Iowa, Kentucky, and Virginia require former felons to apply for the right to vote to be restored.
Voter Identification - Six states—Alabama, Kansas, South Carolina, Tennessee, Texas, and Wisconsin, all controlled by Republican governors and legislatures—have passed laws requiring an official government ID to cast a ballot. Berman notes that some 10 percent of US citizens lack such identification, and the number of young and black voters, groups that traditionally lean Democratic, are much higher. The turn towards voter ID requirements began in 2008, when the US Supreme Court upheld an Indiana photo-ID requirement even though state lawyers could not produce a single instance of the kind of voter fraud that photo ID laws are designed to prevent. After the ruling, ALEC orchestrated a nationwide move towards photo ID requirements. ALEC wrote draft legislation for Republican legislators based on Indiana’s ID requirement. Five of the states that passed those laws had their legislation submitted by legislators who belong to ALEC. Heather Smith, president of the voter-registration group Rock the Vote, says: “We’re seeing the same legislation being proposed state by state by state. And they’re not being shy in any of these places about clearly and blatantly targeting specific demographic groups, including students.” In Texas, the Republican-dominated legislature passed “emergency” legislation that was signed into law by Governor Rick Perry saying that a concealed-weapons permit is acceptable ID, but a college ID is not. Republicans in Wisconsin effectively disenfranchised every college student by requiring that acceptable IDs contain information that no colleges put on their IDs. Dane County board supervisor Analiese Eicher says, “It’s like creating a second class of citizens in terms of who gets to vote.” In Wisconsin, for example, about half of African- and Hispanic-American citizens do not have a driver’s license, and the state has an extremely small number of Department of Motor Vehicles (DMV) offices—some of which are only open one day a month. Governor Scott Walker (R-WI) attempted to close 16 DMV offices, all in heavily Democratic-voting areas. Berman notes, “Walker planned to close a DMV in Fort Atkinson, a liberal stronghold, while opening a new office 30 minutes away in the conservative district of Watertown.” Democratic governors in five states—Minnesota, Missouri, Montana, New Hampshire, and North Carolina—have all vetoed ID laws. Voters in Mississippi and Montana are considering ballot initiatives requiring voter IDs. Legislation is currently pending in Pennsylvania. Perhaps the most restrictive law was signed into effect by South Carolina Governor Nikki Haley (R-SC). Voters must have a free state ID to vote—but they must pay for a passport or birth certificate. Brown-Dianis says, “It’s the stepsister of the poll tax.” Many elderly black residents who were born at home in the segregated South and were never issued birth certificates can no longer vote unless they go to family court to prove their identity.
Significant Impact on 2012 Voting - Berman writes that when these measures are taken in the aggregate, the turnout of Democrats to the 2012 votes will be significantly smaller, perhaps enough to throw races to Republican candidates. In July, Clinton told a group of student activists: “One of the most pervasive political movements going on outside Washington today is the disciplined, passionate, determined effort of Republican governors and legislators to keep most of you from voting next time. Why is all of this going on? This is not rocket science. They are trying to make the 2012 electorate look more like the 2010 electorate than the 2008 electorate.” Clinton was referring to the 2010 elections, widely considered a Republican “wave” election in part because of far smaller turnouts among young and minority voters than in 2008, and because of a large number of “tea party” voters. Clinton added, “There has never been in my lifetime, since we got rid of the poll tax and all the Jim Crow burdens on voting, the determined effort to limit the franchise that we see today.”
Cracking Down on Voter Fraud? - Republicans insist that voter fraud is rampant in America. Since George W. Bush took office in 2001 after losing the popular vote (see 9:54 p.m. December 12, 2000), his administration made “voter fraud” a top priority for Justice Department prosecutors. In 2006, the DOJ fired two US Attorneys who refused to prosecute patently fraudulent voter fraud allegations. Bush advisor Karl Rove called voter fraud “an enormous and growing problem.” He told the Republican National Lawyers Association that America is “beginning to look like we have elections like those run in countries where the guys in charge are colonels in mirrored sunglasses.” The Republicans successfully destroyed the community activism group ACORN (Association of Community Organizations for Reform Now) after false allegations were made that it was, as Berman writes, “actively recruiting armies of fake voters to misrepresent themselves at the polls and cast illegal ballots for the Democrats.” A massive DOJ probe in 2006 and 2007 failed to prosecute a single person for intentionally impersonating another person at the polls, an action that the DOJ claimed was at the heart of the voter fraud investigation. Eighty-six cases of voter fraud did win convictions, but most of those were immigrants and former felons who did not intentionally cast illegal votes. An enormous investigation in Wisconsin resulted in 0.0007 percent of the electorate being prosecuted for voter fraud. And the Brennan Center report found the instance of voter fraud in America extraordinarily small (see 2007).
Voter Fraud Allegations Dog Obama Victory - Republican lawmakers and activists made a raft of allegations after the November 2008 elections that placed the White House in the hands of Barack Obama (D-IL). The 29 states that register voter affiliation showed a roughly 2-1 increase in new Democratic voters over Republicans for 2008, and Obama won almost 70 percent of those votes. Election reform expert Tova Wang says flatly, “This latest flood of attacks on voting rights is a direct shot at the communities that came out in historic numbers for the first time in 2008 and put Obama over the top.” Berman cites Kansas Secretary of State Kris Kobach as emblematic of the Republican pushback against the Obama victory. Kobach is a former Bush-era Justice Department advisor who helped push through his state’s requirement that every voter prove his or her citizenship, ignoring the fact that Kansas has prosecuted exactly one case of voter fraud since 2006. Kobach used fear of illegal immigrants to help push his requirement through, stating without evidence, “In Kansas, the illegal registration of alien voters has become pervasive.” He also stated that many people were casting ballots in the name of dead voters, and cited the example of Alfred K. Brewer as a dead voter who mysteriously voted in 2008. However, as the Wichita Eagle showed, Brewer is very much alive. “I don’t think this is heaven,” Brewer told the Eagle, “[n]ot when I’m raking leaves.” Representative John Lewis (D-AL), a civil rights crusader who was brutally beaten during the 1960s effort to win voting rights for African-Americans, says bluntly, “Voting rights are under attack in America.” On the House floor in July, Lewis told the assemblage, “There’s a deliberate and systematic attempt to prevent millions of elderly voters, young voters, students, minority and low-income voters from exercising their constitutional right to engage in the democratic process.”
Fighting Voter Disenfranchisement - Voting-rights organizations are fighting back as best they can. The American Civil Liberties Union (ACLU) is challenging several of the new voter-restriction laws in court. Congressional Democrats are pushing the Department of Justice to block or weaken laws that impede minority voters from exercising their rights. Lewis says, “The Justice Department should be much more aggressive in areas covered by the Voting Rights Act.” Meanwhile, many voting-rights experts predict chaos at the polls in November 2012, as voters react with confusion, frustration, and anger at being barred from voting. “Our democracy is supposed to be a government by, of, and for the people,” says Browne-Dianis. “It doesn’t matter how much money you have, what race you are, or where you live in the country—we all get to have the same amount of power by going into the voting booth on Election Day. But those who passed these laws believe that only some people should participate. The restrictions undermine democracy by cutting off the voices of the people.” [Rolling Stone, 8/30/2011]

Representatives John Conyers (D-MI) and Donna Edwards (D-MD) introduce legislation that, if adopted, would move to amend the Constitution to empower Congress and the states to limit corporate spending on political activities. The legislation is a direct move against the Citizens United ruling (see January 21, 2010). Conyers tells reporters: “Last year, the Supreme Court overturned decades of law and declared open season on our democracy. It is individual voters who should determine the future of this nation, not corporate money.” Edwards adds, “Since that flawed ruling was issued, campaign spending by outside groups including corporations surged more than four-fold to reach nearly $300 million in the 2010 election cycle.” Reversing the Citizens United ruling, she says, “is the only way to once and for all put the American people, and not corporations, in charge of our treasured democracy.” [The Hill, 9/20/2011]

Entity Tags: US Supreme Court, Donna Edwards, John Conyers

Category Tags: Campaign Finance

The New York Times reports that labor unions are attempting to change the way they engage in political activities in light of the 2010 Citizens United ruling (see January 21, 2010), so as to counter enormous corporate donating and influence nonunion households for the 2012 elections. Labor unions had opposed the ruling, but that opposition has borne little fruit. Now the unions are beginning to use an element of the ruling that for the first time allows unions to reach out to nonunion households. Unions can also form their own super PACs, and some are doing just that. Richard L. Trumka, president of the AFL-CIO, says organized labor will function independently of the Democratic Party, refusing to support Democratic candidates who are not union-friendly and perhaps even opposing individual Democrats in some elections. Trumka says the time for Democrats to take union support for granted has ended. Some labor leaders have been critical of Democrats after unions spent more than $200 million to help elect President Obama and Congressional Democrats in 2008, but did not get some of the legislative attention the unions desired from the newly elected Democrats. The Times writes, “In distancing themselves, at least a bit, from the Democrats, unions are becoming part of a trend in which newly empowered outside groups build what are essentially party structures of their own—in this case, to somewhat offset the money flowing into conservative groups that are doing the same thing.” Trumka says the AFL-CIO will infuse $10 million into a new, as-yet-unnamed super PAC in order to begin building a permanent political structure for labor. “The way we used to do politics is we’d set up a structure six months before the election, and after Election Day we’d dismantle it,” he says. “Now we’re going to have a full-time campaign, and that campaign will be able to move, hopefully, from electoral politics to issue advocacy and accountability.” The AFL-CIO’s political director, Michael A. Podhorzer, says that the unions learned a lesson in 2010, when labor-backed Democrats such as former Ohio Governor Ted Strickland (D-OH) lost to Republican challengers. “It became apparent that even in races where union members voted overwhelmingly in support of a pro-worker candidate, we could still lose,” says Podhorzer. “President Trumka asked, ‘How do we get programs that win elections and not just put up a good fight?’” [New York Times, 9/25/2011]

Entity Tags: Michael A. Podhorzer, AFL-CIO, Barack Obama, Democratic Party, Theodore (“Ted”) Strickland, New York Times, Richard L. Trumka

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Senator Mike Lee (R-UT).Senator Mike Lee (R-UT). [Source: Gabe Skidmore / Telestial State (.com)]Senator Mike Lee (R-UT)‘s “leadership PAC,” the Constitutional Conservatives Fund PAC (CCFPAC), writes to the Federal Election Commission (FEC) to ask for permission to collect unlimited contributions from corporations, labor unions, and individual donors for independent spending on behalf of other candidates. So-called “leadership PACs” are political committees set up and run by members of Congress, and other elected officials, to allow them to make contributions to other candidates and spend money on their behalf. It is a well-established method for Congressional members to build influence within their parties. The CCFPAC’s lawyers argue that there is no danger of other candidates being corrupted, because CCFPAC’s spending to help candidates get elected (or to attack their opponents) will be independent of those candidates. The request cites the controversial Citizens United Supreme Court decision (see January 21, 2010) that allowed corporations and labor unions to spend unlimited amounts in independent expenditures on behalf of candidates. Law professor Richard Hasen will argue that such a contention—that a candidate will not be corrupted because the spending on his or her behalf—is specious, and moreover, another danger exists, that of the corruption of the head(s) of the leadership PAC. He will write, “Corporations or labor unions (acting through other organizations to shield their identity from public view) could give unlimited sums to an elected official’s leadership PAC, which could then be used for the official to yield influence with others.” Any member of Congress could use his or her leadership PAC to effectively become the fundraising arm of their party, Hasen will write, merely by funneling all the money through that leadership PAC. Hasen argues that the McCain-Feingold ban on such “soft money” collections (see March 27, 2002) was not set aside by Citizens United, though he will cite a single sentence of the majority opinion in that decision as being a possible means of giving the CCFPAC request a veneer of legal justification: “We now conclude that independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.” That sentence, Hasen will argue, “which denies the reality that large independent spending favoring a candidate can sometimes corrupt or create the appearance of corruption, looks like it may doom those soft-money rules too. The result of all this is that federal campaign finance law is unraveling even faster than pessimists expected after Citizens United.” [PAC, 10/17/2011 pdf file; Slate, 10/25/2011] Think Progress legal analyst Ian Millhiser will agree with Hasen, writing that “[i]n essence, Lee just sought permission to set up his own slush fund, powered by unlimited corporate donors, and use this slush fund to buy influence with his fellow lawmakers by running ads in their districts.… So Lee’s idea is that corporate CEOs, Wall Street tycoons, and other well-moneyed interests can show up at his office and turn over completely unlimited amounts of funds. Lee can then buy new friends in Washington and in state governments by channeling these corporate funds to an army of grateful politicians. And the more money corporate America gives him, the more powerful Lee becomes—and the more he owes this new found power to his brand new corporate sugar daddies.” [Think Progress, 10/26/2011]

Entity Tags: Richard L. Hasen, Federal Election Commission, Ian Millhiser, Michael Shumway (“Mike”) Lee, Constitutional Conservatives Fund PAC

Category Tags: Campaign Finance

A new report by the Brennan Center for Justice shows that just three “independent” corporate political organizations outspent the US labor movement in judicial elections for 2009-10. The report, entitled “The New Politics of Judicial Elections 2009-10,” shows that three corporate interest groups—the Ohio Chamber of Commerce (Partnership for America’s Future), the Business Council of Alabama, and the Illinois Civil Justice League (JustPAC) outspent the US labor movement 13-1 in trying to influence state Supreme Court elections. Together, the three groups spent $3,554,445 on activities involving judicial elections. In total, organized labor groups spent $261,4230. Labor unions have always contended that they could not spend nearly as much on election activities as corporations. [Skaggs et al., 10/2011 pdf file; Think Progress, 10/27/2011]

Entity Tags: Ohio Chamber of Commerce, Illinois Civil Justice League, Brennan Center for Justice, Business Council of Alabama

Category Tags: Campaign Finance

An unofficial logo for the Cain presidential campaign.An unofficial logo for the Cain presidential campaign. [Source: Draft Cain (.org)]Republican presidential candidate Herman Cain (R-GA), who is battling allegations that he sexually harassed two former employees, is further shaken by reports that his campaign may have accepted illegal corporate donations. The apparently-defunct corporation, Prosperity USA, was run by Wisconsin political operatives Mark Block and Linda Hansen, who now serve as Cain’s chief of staff and deputy chief of staff, respectively. The corporation, which incorporated itself as a nonprofit, tax-exempt organization under federal tax law, helped get Cain’s campaign up and running by paying for tens of thousands of dollars in expenses, including computers, chartered flights, and travel to several states. Such payouts are possible violations of federal tax and campaign law. According to documents obtained by the Milwaukee Journal-Sentinel, Prosperity USA claims it was owed about $40,000 by the Cain campaign for a variety of items in February and March. It is unclear whether the Cain campaign has reimbursed Prosperity USA. Cain began taking donations for his presidential bid on January 1, 2011, but records indicate Prosperity USA may have been spending money on behalf of him well before that date. The records have been verified as authentic by sources close to Prosperity USA. Cain’s federal election filings make no mention of monies owed to Prosperity USA, and the figures in the documents do not match payments made by the Cain Campaign. Other payouts include a $100,000 fee to the Congress of Racial Equality (CORE), a conservative black organization; Cain spoke at the organization’s annual Martin Luther King Jr. dinner in mid-January, an event hosted by controversial conservative blogger Andrew Breitbart. CORE is heavily involved in tea party events. Apparently Cain was not paid for the appearance, inasmuch as his personal financial disclosure forms do not show any honorariums for speeches. [Milwaukee Journal-Sentinel, 10/30/2011; USA, 10/31/2011 pdf file]
Apparent Violations of Tax, Campaign Law - Election law experts say the transactions raise many questions about Priorities USA and its connection to the Cain campaign. A Washington, DC, lawyer who advises many Republican candidates and conservative groups on campaign issues, and refuses to be publicly identified, says, “If the records accurately reflect what occurred, this is way out of bounds.” She says it is a violation of tax law for Prosperity USA to advance money to the Cain campaign for the items invoiced, and the expenditures also seem to violate federal campaign regulations. “I just don’t see how they can justify this,” she says. “It’s a total mess.” Wisconsin campaign attorney Michael Maistelman, a Democrat who has worked for candidates from both parties, agrees, saying, “The number of questionable and possibly illegal transactions conducted on behalf of Herman Cain is staggering.” Think Progress legal expert Ian Millhiser writes that “if Prosperity USA effectively donated money to the Cain campaign by fronting money to them and agreeing not to be paid back, that is a violation of federal election law,” even if the Cain campaign eventually pays the money back. Block and Hansen have refused to comment on the issue. In 1997, Block, then advising the campaign of former Wisconsin Supreme Court Justice Jon Wilcox, settled allegations of election-law violations by agreeing to pay a $15,000 fine and to stay out of Wisconsin politics for three years. [Milwaukee Journal-Sentinel, 10/30/2011; Think Progress, 10/31/2011] Election lawyer Lawrence H. Norton, who formerly served as a general counsel for the Federal Election Commission (FEC), later says, “If they are supporting his campaign, whether directly or indirectly, they are violating the law.” [New York Times, 11/3/2011]
Connections to Koch-Funded Political Organization - In recent years, Block has run the Wisconsin chapter of Americans for Prosperity (AFP—see Late 2004), a nonprofit conservative lobbying and political action group co-founded by the conservative Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). AFP played a key role in organizing the tea party movement. Block met Cain through AFP, and encouraged him to run for president. Block has incorporated a number of offshoot organizations and corporations from AFP, most of which bore the word “prosperity” in their names. AFP officials insist that Block’s organizations are legally separate from theirs. Documents show that when Block left AFP at the beginning of 2011, he left behind tens of thousands of dollars in unpaid invoices.
History of Involvement with Cain Campaign - Block’s largest group was the now-defunct Wisconsin Prosperity Network (WPN), envisioned as an umbrella organization that would spend over $6 million a year underwriting other conservative political organizations. Hansen was the group’s executive director. WPN was also set up as a tax-exempt nonprofit organization. Under the law, neither WPN nor Prosperity USA can have direct political involvement with any candidate or candidate organization. Sources familiar with the situation say the two organizations were closely linked, and raised hundreds of thousands of dollars from Wisconsin conservatives. One supporter, who still advocates for Cain and thusly refuses to have his name publicly disclosed, says he and many others are very upset with the groups for failing to use the money they raised for their intended purposes. The supporter names Hansen as being particularly responsible for the groups’ money usage. By February 2011, both groups were deeply in debt, with WPN showing a net loss of $62,000 and Prosperity USA showing net losses of $110,000. Prosperity USA’s biggest debt was an almost-$40,000 debit to “FOH,” which records show means “Friends of Herman Cain,” the name of Cain’s presidential operation. The debt includes almost $15,000 for what is called an “Atlanta invoice”; $17,000 for chartered flight service; $5,000 for travel and meetings in Iowa, Las Vegas, Dallas, Houston, and Louisiana; and $3,700 for iPads purchased for the Cain campaign. Other small-ticket items for travel and expenses by Block are listed as “not billed to FOH but due from them.” Other expenses include a September 2010 bill for $5,000 for costs incurred by Cain’s speech to the conservative Right Nation rally in Chicago, which records show Cain attended at the request of AFP; the Cain campaign later used a segment from that speech in a campaign ad. Prosperity USA also paid for a trip by Block to Washington, DC, to meet with billionaire oil magnate and conservative financier David Koch. Singer Krista Branch, who recorded “I Am America,” the unofficial anthem of the tea party movement, was supposed to be paid $3,000 by Prosperity USA; Cain has since adopted the song as his campaign theme. Branch’s husband, Michael, is a Cain campaign and fundraising consultant. The records also show $150,000 in loans from individuals who are not identified. Sources say Hansen paid much of that loan money to CORE earlier in the year. Michael Dean, the attorney for both Prosperity USA and WPN, resigned his position with WPN in the summer of 2011, and contacted the IRS about the organization’s tax-exempt status. And WPN is a listed litigant in a case pending before the Wisconsin Supreme Court.
'Outside Counsel' Will Review Allegations - The Cain campaign will respond by saying that an “outside” lawyer will review the allegations. “As with any suggestions of this type, we have asked outside counsel to investigate the Milwaukee Journal Sentinel’s suggestions and may comment, if appropriate, when that review is completed,” says campaign spokesman J.D. Gordon. Gordon refuses to identify the “outside counsel,” or give a time frame as to when the review will be complete. [Milwaukee Journal-Sentinel, 10/30/2011; New York Times, 11/3/2011]

Entity Tags: Herman Cain, Americans for Prosperity, Ian Millhiser, Andrew Breitbart, Congress of Racial Equality, Herman Cain presidential campaign (2012), Wisconsin Prosperity Network, J.D. Gordon, Milwaukee Journal-Sentinel, Prosperity USA, Linda Hansen, Lawrence H. Norton, Mark Block, Michael Dean, Michael Maistelman, Jon Wilcox

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Six US Senators led by Tom Udall (D-NM) introduce a constitutional amendment that would give Congress the right to regulate the federal campaign finance system. The amendment is directed towards overturning the Citizens United decision that allows almost unregulated spending by corporations, unions, and special interests in political campaigns (see January 21, 2010). Udall is joined in sponsoring the amendment by Michael Bennett (D-CO), Tom Harkin (D-IA), Richard Durbin (D-IL), Charles Schumer (D-NY), Sheldon Whitehouse (D-RI), and Jeff Merkley (D-OR). In a press release from his office, Udall is quoted as saying: “As we head into another election year, we are about to see unprecedented amounts of money spent on efforts to influence the outcome of our elections. With the Supreme Court striking down the sensible regulations Congress has passed, the only way to address the root cause of this problem is to give Congress clear authority to regulate the campaign finance system.” In the same release, Bennett adds: “The Supreme Court’s reversal of its own direction in the Citizens United decision and other recent cases has had a major effect on our election system. State legislatures and Congress now may not be allowed to approve even small regulations to our campaign finance system. This proposal would bring some badly needed stability to an area of law that has been thrown off course by the new direction the Court has taken.” Harkin is quoted as saying: “By limiting the influence of big money in politics, elections can be more about the voters and their voices, not big money donors and their deep pockets. We need to have a campaign finance structure that limits the influence of the special interests and restores confidence in our democracy. This amendment goes to the heart of that effort.” And Merkley is quoted as saying: “It was President Lincoln who described the genius of American democracy as ‘government of the people, by the people, and for the people.’ We office holders work for the people. They elect us. They are in charge. Citizens United puts in motion the opposite: it moves us towards government by and for the powerful. As such, it is a dagger poised at the heart of American democracy. If we are going to preserve a government responsive to its citizens, we need commonsense reforms that give the American people a full voice. This constitutional amendment is essential for the people to be heard.” The amendment would:
bullet authorize Congress to regulate and limit the raising and spending of money for federal political campaigns and allow states to regulate such spending at their level;
bullet include the authority to regulate and limit independent expenditures, such as those from Super PACs, made in support of or opposition to candidates;
bullet not dictate any specific policies or regulations, but instead allow Congress to pass campaign finance reform legislation that withstands constitutional challenges. [US Senate, 11/1/2011]
Passing a constitutional amendment is not an easy task. Two-thirds of Congress must agree to the amendment, or two-thirds of state legislatures must call for the amendment. Once proposed, three-quarters of state legislatures must vote to ratify the amendment. [Think Progress, 11/2/2011] This is not the first proposal to amend the Constitution to limit corporate spending (see September 20, 2011).

Entity Tags: Tom Harkin, Jeff Merkley, Michael Bennet, Charles Schumer, Richard (“Dick”) Durbin, US Supreme Court, Tom Udall, Sheldon Whitehouse

Category Tags: Campaign Finance

’We Are Ohio’ logo.’We Are Ohio’ logo. [Source: ProgressOhio (.org)]Ohio Senate Bill 5, known as the Ohio Collective Bargaining Limit Repeal, is defeated by a voter referendum. The bill would enable severe limitations on collective bargaining for public employees in the state, and make it difficult for those employees to strike and collectively bargain for wages, health insurance, and pensions, and would have increased employee contributions for pensions and health insurance. The hard-fought campaign pitted Governor John Kasich (R-OH) and Ohio Republicans against the state’s teachers, firefighters, police officers, and unions. The bargaining limit repeal was supported by farmers and a number of independent corporate organizations, including Citizens United, the Ohio Chamber of Commerce, and the National Federation of Independent Business; it was opposed by labor unions, Democrats, and some independent organizations, including the bipartisan political action committee We Are Ohio, which helped launch the referendum. Over $50 million was spent on the campaign by outside parties and both political parties. Ohio Democrats and labor leaders call the repeal a win for progressives and worker rights, and the first step in recapturing the state government, which has been dominated by Republicans since the 2010 elections. Doug Stern, a firefighter who joined We Are Ohio, says: “Hey, I’m a Republican, but I’m telling you, Republican firefighters and police officers aren’t going to be voting Republican around here for a while. We’ll see what happens in 2012, but our guys have a long memory. We’re angry and disgusted.” Supporters, relying on large infusions of cash from corporate and other interests, relied largely on media advertising to support the repeal, while opponents staged mass protests and organized grassroots volunteers who they say will continue to work to defeat Republican interests. One $100,000 television ad paid for by Citizens United depicted schoolchildren while a voiceover told viewers that the bill allows schools to “replace” bad teachers, and added, “We parents and educators deserve the right to run our own schools.” Citizens United president David Bossie (see May 1998) told a reporter that his organization “decided to get in and play a role right at the end to educate the voting public and try to persuade them that this is the right way to go.” We Are Ohio called such ads “desperate attempt[s] by another shadowy out-of-state group that refuses to disclose the source of its money” (see January 21, 2010). Kasich repeatedly argued that the harsh measures against public employees and labor unions were necessary to balance the state’s budget. One senior state Republican says that Kasich “snatch[ed] defeat from the jaws of victory” by alienating labor-friendly independents in the state. [Politico, 11/2/2011; Think Progress, 11/3/2011; Politico, 11/8/2011]

Entity Tags: Ohio Chamber of Commerce, David Bossie, Citizens United, Doug Stern, National Federation of Independent Business, Ohio Collective Bargaining Limit Repeal, We Are Ohio, John Kasich

Category Tags: Impositions on Rights and Freedoms, Campaign Finance

Representative Ted Deutch (D-FL) introduces a resolution proposing a constitutional amendment that would ban corporate money in politics and end “corporate personhood.” Deutch calls his proposal the Outlawing Corporate Cash Undermining the Public Interest in our Elections and Democracy (OCCUPIED) Amendment. The proposal reads, “Proposing an amendment to the Constitution of the United States to expressly exclude for-profit corporations from the rights given to natural persons by the Constitution of the United States, prohibit corporate spending in all elections, and affirm the authority of Congress and the states to regulate corporations and to regulate and set limits on all election contributions and expenditures.” The amendment, if adopted, would overturn the Citizens United decision (see January 21, 2010), re-establish the right of Congress and the states to regulate campaign finance laws, and effectively outlaw the ability of for-profit corporations to contribute to campaign spending. Deutch says in a statement that refers to the Occupy protesters demonstrating throughout the nation: “No matter how long protesters camp out across America, big banks will continue to pour money into shadow groups promoting candidates more likely to slash Medicaid for poor children than help families facing foreclosure. No matter how strongly Ohio families fight for basic fairness for workers, the Koch brothers will continue to pour millions into campaigns aimed at protecting the wealthiest 1 percent (see November 8, 2011). No matter how fed up seniors in South Florida are with an agenda that puts oil subsidies ahead of Social Security and Medicare, corporations will continue to fund massive publicity campaigns and malicious attack ads against the public interest. Americans of all stripes agree that for far too long, corporations have occupied Washington and drowned out the voices of the people. I introduced the OCCUPIED Amendment because the days of corporate control of our democracy. It is time to return the nation’s capital and our democracy to the people.” [US House of Representatives, 11/18/2011 pdf file; Think Progress, 11/18/2011] Three weeks ago, a group of Democratic senators introduced a similar amendment (see November 1, 2011). On December 8, Senator Bernie Sanders (I-VT) will introduce a version of the OCCUPIED Amendment in the Senate that he calls the Saving American Democracy Amendment. Deutch will say of Sanders’s action: “There comes a time when an issue is so important that the only way to address it is by a constitutional amendment. I am thrilled that Senator Bernie Sanders has introduced the Saving American Democracy Amendment, a companion bill to H.J. Res 90, my legislation in the House. The dominance of corporations in Washington has imperiled the economic security of the American people and left our citizens profoundly disenchanted with our democracy. I look forward to working with Senator Sanders to save American democracy by banning all corporate spending in our elections and cracking down on secret front groups using anonymous corporate cash to undermine the public interest.” [Think Progress, 12/8/2011] Two House Democrats introduced similar legislation in September 2011 (see September 20, 2011).

Entity Tags: 2011 Outlawing Corporate Cash Undermining the Public Interest in our Elections and Democracy (OCCUPIED) Amendment, Bernie Sanders, Theodore E. (“Ted”) Deutch, 2011 Saving American Democracy Amendment

Category Tags: Campaign Finance

The Federal Election Commission (FEC) unanimously rejects a petition by Senator Mike Lee (R-UT) for him to be allowed to head his own “super PAC” (see March 26, 2010). Lee’s “leadership PAC,” the Constitutional Conservatives Fund PAC (CCFPAC), had requested permission from the FEC to turn itself into a PAC capable of accepting donations directly from corporations and unions (see October 17, 2011). Previously, the FEC had released a draft opinion opposing the request, but Lee’s lawyer Dan Backer had said he felt the FEC would approve the request. Lee spokesperson Brian Phillips calls the decision “a head-scratcher.” Backer and Lee had counted on the controversial Citizens United Supreme Court decision (see January 21, 2010) that allowed corporations and labor unions to spend unlimited amounts in independent expenditures on behalf of candidates, and essentially say that if corporations and unions can run super PACs, politicians should be able to do so as well. They argued that because the law bars Lee from spending the money on his own reelection efforts, and because he is willing to pledge that he would not personally solicit large donations, the FEC should grant the request. The draft opinion said that Lee’s request violates campaign finance law that expressly prohibits elected officials from being associated with a political entity that collects money beyond the legal limits (see March 27, 2002), and the unanimous decision echoes that finding. A PAC such as the CCFPAC is limited to collecting $5,000 per person per year and is banned entirely from accepting corporate donations. Lee, a “tea party” favorite, would have been the first politician in the country to have his own super PAC. Commissioner Donald McGahn, the most conservative commissioner and an opponent of most campaign finance laws, told Lee and his legal team: “Your argument essentially does away with contribution limits. It’s well beyond what we do here and well beyond what I do here, which is saying something.” McGahn says he agrees that the government should not discriminate when applying regulations on independent expenditures, but that the statute and regulations clearly limit contributions to members of Congress to protect against corruption or the appearance of corruption. Lee’s office says that letting Lee run a super PAC of his own would actually increase transparency and accountability. Lee may yet appeal the decision to the Supreme Court. [Salt Lake Tribune, 11/24/2011; Think Progress, 11/28/2011; Deseret News, 12/1/2011]

Entity Tags: Federal Election Commission, Brian Phillips, Constitutional Conservatives Fund PAC, Donald McGahn, Michael Shumway (“Mike”) Lee

Category Tags: Campaign Finance

The House of Representatives votes 235-190 to eliminate the Presidential Election Campaign Fund (PECF), which provides for voluntary public funding of presidential candidates. The legislation would also shut down the Election Assistance Commission (EAC), a national clearinghouse on the mechanics of voting. Public financing of campaigns has been a target of Republicans since the Citizens United decision allowed corporations and labor unions to give unlimited amounts to campaigns (see January 21, 2010 and June 27, 2011). House Republicans failed in a previous attempt to eliminate the PECF (see January 26, 2011 and After). Representative Zoe Lofgren (D-CA) gives an impassioned defense of the PECF, saying that it is one of the few obstacles that remains to impede what she calls the takeover of the US political system by well-financed special interests. She asks her colleagues whether they believe the “99 percent of Americans that don’t have lobbyists” would benefit in any way by abolishing PECF. She then notes that the Republican National Committee (RNC) got 18 million dollars from this fund and suggests it give the money back, saying: “The level of spending by corporations and special interests since the Supreme Court’s decision in Citizens United should give every American reason for concern. So do my Republican colleagues really believe that more corporate and special interest money in politics is going to benefit in any way the 99 percent of Americans who don’t have lobbyists? The current public financial [sic] system for the presidential elections has problems. Most notably, it has not kept pace with the cost of modern campaigns. So we should fix it instead of eliminating it. I would note that the Republican National Committee recently received 18 million dollars from this fund. If the Republicans think it’s such a bad idea, perhaps they should ask the RNC to return the money.” Senate Majority Leader Harry Reid (D-NV) says the bill has no chance in the Senate, and is critical of House Republicans for advancing it, stating: “Instead of making it so it’s easier for people to vote, they want to do everything they can to make it harder for people to vote. I don’t understand this. They want to have as few people to vote as possible.” Representative Gregg Harper (R-MS), the sponsor of the bill, says the elimination of the PECF would help reduce the deficit. “If we do not eliminate some programs, then a $15 trillion debt will be our decline into a European-style financial crisis,” he says. [Roll Call, 12/1/2011; Think Progress, 12/1/2011] The bill will not pass the Senate.

Entity Tags: US House of Representatives, Gregg Harper, Election Assistance Commission, Harry Reid, Republican National Committee, Zoe Lofgren, Presidential Election Campaign Fund, US Supreme Court

Category Tags: Campaign Finance

According to a Washington Post analysis, 10 percent of US billionaires have given to the presidential campaign of Mitt Romney (R-MA), who seems to be securing enough primary wins to be named the Republican Party’s presidential nominee. Romney himself is a former venture capitalist worth at least $250 million. Forty-two of the US’s 412 billionaires have donated to Romney’s campaign and third-party “super PACs” (see March 26, 2010, June 23, 2011, and November 23, 2011). President Obama has 30 billionaires on his donor list, or something over 7 percent. Romney opponents Rick Perry (R-TX) and Jon Huntsman (R-UT) have 20 and 12, respectively. The Washington Post reports: “Very wealthy donors are likely to play a greater role in this election cycle in the wake of recent court decisions that have loosened rules for campaign contributions (see January 21, 2010). That will only heighten one of the dominant narratives of the 2012 campaign: the nation’s rising income inequality and the outsize political influence of the super-wealthy.” Donors can only give $5,000 directly to candidates’ campaigns, but under the Citizens United ruling, they can give unlimited amounts to super PACs that run independent ads on behalf of, or in opposition to, candidates. “The only limit on the resources is the willingness of the donors to give,” says government professor Anthony Corrado, a former Democratic official. “It doesn’t take long to transfer $500,000 from one account to another.” Obama had a head start in raising campaign funds going into October 2010, largely because the Republican candidates were spending money against one another in primary battles. But now that Romney seems more and more assured as the Republican nominee, Republican donors are expected to focus on donating to his campaign and super PACs, and are expected to catch up to and surpass Obama and the Democrats in short order (see August 2, 2010, September 20, 2010, September 13-16, 2010, October 2010, Around October 27, 2010, May 5, 2011, and August 4, 2011). In 2008, Obama distanced his campaign from third-party donors, and donations from those individuals and interests were relatively down. But, perhaps recognizing the advantage Republicans have in raising money from the wealthy, Obama no longer objects to those donations. Romney’s largest donor so far is hedge-fund billionaire John Paulson, who has given $1 million to Romney’s super PAC Restore Our Future (see June 23, 2011). Think Progress’s Travis Waldron notes that Paulson made millions by shorting the housing market before the mortgage collapse that sparked the global financial crisis and drove the US economy into a recession. Other billionaires supporting Romney include Washington Redskins owner Dan Snyder, California real estate developer Donald Bren, and developer and publisher Sam Zell. Several billionaires who used to support Romney’s primary opponent Newt Gingrich (R-GA), including casino mogul Sheldon Adelson and Amway founder Richard DeVos, are expected to begin giving generously to the Romney campaign or to his super PAC. Obama’s richest donor is Len Blavatnik, a Russian-American industrialist who has also donated to Romney. Other billionaires supporting Obama include insurance magnate Peter Lewis, former Google executive Eric Schmidt, and venture capitalist John Doerr. Obama campaign spokesman Ben LaBolt downplays the billionaire contributions, saying, “Our campaign is fueled by donations from more than 1 million Americans, 98 percent of which were in amounts of $250 or less.” Corrado says that as the November elections approach, spending will only increase. “One of the things about large investors in campaigns is that they’re very interested in getting results,” he says. “And it is much easier to get a large effect in a race if you can give to directly advocate for and against a candidate.” [Washington Post, 12/1/2011; Think Progress, 12/6/2011]

Entity Tags: Dan Snyder, Sam Zell, Sheldon Adelson, Washington Post, Willard Mitt Romney, Anthony J. Corrado Jr., 2012 Obama presidential election campaign, Ben LaBolt, Restore Our Future, Richard DeVos, Newt Gingrich, James Richard (“Rick”) Perry, Eric Schmidt, Donald Bren, Peter Lewis, Mitt Romney presidential campaign (2012), John Paulson, Barack Obama, Len Blavatnik, Jon Huntsman, John Doerr

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Presidential candidate Mitt Romney (R-MA) criticizes the influence of super PACs and third-party organizations in political campaigns, calling the “new entities” a “disaster” and claiming that campaign finance laws have “made a mockery of our political campaign season.” Romney was the first to form a presidential super PAC, Restore Our Future (ROF—see June 23, 2011), and that organization has been extraordinarily successful in raising money to use for Romney’s benefit (see January 31, 2012, February 6, 2012, March 11, 2012, May 21, 2012, and Late May 2012). In an appearance on MSNBC, Romney says: “This is a strange thing in these campaign finance laws. They set up these new entities, which I think is a disaster, by the way. Campaign finance law has made a mockery of our political campaign season.… We really ought to let campaigns raise the money they need and just get rid of these super PACs.” Republicans have advocated for unlimited direct contributions (see April 27, 2011, May 26, 2011 and After, January 10, 2012, January 21, 2012, and January 31, 2012) to candidates’ campaigns. Such direct contributions are currently illegal. Asked if he would ask ROF to stop running an ad that drew criticism from its target, Romney’s primary challenger Newt Gingrich (R-GA), he answers: “It’s illegal, as you probably know. Super PACs have to be entirely separate from a campaign and a candidate. I’m not allowed to communicate with a super PAC in any way, shape, or form. If we coordinate in any way whatsoever, we go to the big house.” Gingrich has recently said that the idea of super PACs running entirely independently of the campaigns they work to assist is “baloney,” stating: “They ought to take this junk [negative ads] off the air. And don’t hide behind some baloney about, this ‘super PAC that I actually have no control over that happens to be run by five of my former staff.’ That’s just baloney.” ROF was created by, and is staffed by, many former aides and colleagues of Romney’s. Gingrich has named a former aide, Rick Tyler, to work with his super PAC, Winning Our Future. [CBS News, 12/11/2011]

Entity Tags: Winning Our Future, Restore Our Future, Willard Mitt Romney, Newt Gingrich

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

A federal appeals court strikes down a Wisconsin law limiting how much a single person can donate to independent political action committees, or PACs. The ruling is made in favor of a lawsuit filed by Wisconsin Right to Life (WRTL), which sued in August 2011 just before a round of recall elections targeting nine state senators. The courts issued a temporary injunction on the law, and the appeals court makes the repeal permanent. Before the ruling, Wisconsin law mandated that individuals could give no more than $10,000 to a PAC. The court rules that such limitations restrict free speech. WRTL’s Barbara Lyons calls the ruling a “sweeping victory” that will allow the group to “significantly contribute to the state and national dialogue on speech and elections.” But Mike McCabe of the Wisconsin Democracy Campaign disagrees, saying that the ruling renders candidates almost irrelevant as special interest groups and their money become dominant in campaigns: “I’m not sure that very many people will notice a difference because money is flowing so freely in Wisconsin politics,” he says. “There’s no shortage of channels through which special interest funds can flow.” The court cites the Supreme Court’s Citizens United decision, which allows unlimited contributions to campaign organizations by corporate and union donors (see January 21, 2010), as the basis for its ruling. Judge Diane Sykes writes in the majority opinion: ”Citizens United held that independent expenditures do not pose a threat of actual or apparent quid pro quo corruption, which is the only governmental interest strong enough to justify restrictions on political speech. Accordingly, applying the $10,000 aggregate annual cap to contributions made to organizations engaged only in independent spending for political speech violates the First Amendment.” The ruling is expected to have a tremendous impact on recall elections scheduled for 2012, including the recall of Governor Scott Walker (R-WI), as groups both in support of and opposition to the recalls can spend large amounts of money on campaign advertising. [Associated Press, 12/11/2011; Think Progress, 12/13/2011] WRTL won a landmark Supreme Court case in 2007 that struck down restrictions on so-called “issue advertising” (see June 25, 2007), a ruling that directly impacted today’s court finding. Days later, the local Chippewa Herald will write an editorial criticizing the ruling. The editorial specifies the “dialogue” that WRTL’s Lyons means “a heavy rotation of television and radio ads, phone calls, and direct-mail pieces.” WRTL’s purpose in its electioneering is fairly transparent, the Herald states, but many of the special interest groups involved in such electioneering are not transparent at all. “Do we want our campaigns to be about what the candidates stand for—heard directly from them—or about issue ads where candidates are either supported or attacked through a thinly veiled message urging people to contact a particular candidate?” The Herald notes that much of the $44 million spent on the state senate recalls “came from groups not subject to the state campaign contribution limit,” and few Wisconsin citizens know who those groups are. “The courts have ruled that political contributions and campaign spending is a First Amendment right,” the Herald states. “But those contributions and spending should not be done in secret or through a maze of groups and organizations that operate like legal money launderers.” The Herald advocates “complete disclosure” to “ensure openness and a clean and healthy democracy.” [Chippewa Herald, 12/14/2011]

Entity Tags: Chippewa Herald, Wisconsin Right to Life, Barbara Lyons, Mike McCabe, Scott Kevin Walker, Diane Sykes

Category Tags: Campaign Finance

The logo of InfoCision, the telemarketing firm that received much of the ASWF monies.The logo of InfoCision, the telemarketing firm that received much of the ASWF monies. [Source: InfoCision]Presidential candidate Newt Gingrich (R-GA) has apparently exploited a loophole in campaign finance law that has allowed him to build what McClatchy News calls “a political money machine that raised $54 million over five years,” according to McClatchy reports. Gingrich has used “a supposedly independent political committee that collected unlimited donations” to “finance… a coast-to-coast shadow campaign that raised his profile and provided a launch pad for his presidential run.” Critics call the ASWF issue another aftereffect of the Citizens United decision (see January 21, 2010).
$54 Million over 5 Years - The Gingrich-supporting PAC, “American Solutions for Winning the Future” (ASWF) was closed down in July 2011. Organized as a so-called “527 group” (see 2000 - 2005 and June 30, 2000), the tax-exempt, “nonprofit” organization raised $28.2 million in the two-year period ending December 31, 2010, the last period for which McClatchy has data. The Center for Responsive Politics reports that ASWF raised almost double the amount garnered by the next closest 527. The organization raised some $54 million throughout its existence, from 2006 to July 2011. McClatchy has learned some of the details behind ASWF and is now revealing them to the public. The organization provided at least $8 million to pay for the chartered luxury jets that Gingrich used to fly back and forth around the nation for public appearances and campaigning for president. The jet charters occurred during the 2008 and 2012 presidential primaries.
Largely Financed by Billionaire, Corporate Donations - ASWF has accepted enormous cash donations from billionaires such as Sheldon Adelson, a Las Vegas casino owner, who has emerged as Gingrich’s primary benefactor. Adelson has given $7.65 million to ASWF, including a million-dollar startup contribution in 2006. According to an Adelson spokesperson, “he and Speaker Gingrich go back a number of years.” Adelson is a prominent supporter and financier of Israeli Prime Minister Benjamin Netanyahu, and like Gingrich holds far-right, aggressively territorial views about Israel. Gingrich has made provocative statements about Israel and the Palestinian people over the years, denying that the Palestinians are a separate people and declaring his support for Israel’s forced-settlement plans that have displaced many Palestinians. A Gingrich spokesman says Adelson and others merely gave to the organization because they agree with Gingrich’s views. Charlotte, North Carolina, real estate developer Fred Godley gave ASWF $1.1 million in 2007 and another $100,000 in 2009. Energy firms donated heavily to ASWF: Peabody Energy, the world’s largest private coal producer, and its chief lobbyist Fred Palmer gave ASWF $825,000. Arch Coal, the US’s second-largest coal company, gave $100,000. Oil and gas firm Devon Energy gave $400,000, as did American Electric Power Company and its CEO Michael Morris. Plains Exploration Company gave $200,000. The late Cincinnati billionaire Carl Lindner gave $690,000. Dallas real estate firm Crow Holdings gave $600,000. Minnesota broadcasting mogul Stanley Hubbard gave $385,000. Wisconsin businessman Terry Kohler gave $328,082. California businessman Fred Sacher gave $275,000. NASCAR president James France gave $264,000. Home Depot co-founder Bernie Marcus gave $250,000. Another Las Vegas casino owner, the late Frank Fertitta Jr., gave $250,000, along with his sons; together the three of them co-owned a casino and the Ultimate Fighting Championship sports league. Former CarMax and Circuit City chief Richard Sharp gave $150,000. Stock brokerage titan Charles Schwab gave $150,000. Cincinnati Reds owner Robert Castellini gave $146,000. Political science professor Larry Sabato says that in light of such enormous contributions, “there’s no way that any politician is going to deny you much of anything that you want.”
New Super PACs Supplanting ASWF - In place of ASWF, two new pro-Gingrich super PACs have formed to support Gingrich’s attempt to close the gap between himself and frontrunner Mitt Romney (R-MA) in the Republican primary.
'Diabolical Scheme' to 'Circumvent' Campaign Finance Law - Campaign expert Lawrence Jacobs calls Gingrich’s use of ASWF “clever,” and adds, “Looking back, and now seeing Gingrich as the frontrunner… it’s an ingenious, diabolical scheme to circumvent what’s left of the campaign finance regime.” Jacobs says of the organization: “The money wasn’t used literally to finance a campaign for a particular office. It was used for a general, over-time campaign to keep Gingrich alive politically—an enormously luxurious campaign operation to sustain his political viability for the right time to jump into the presidential race. It’s no accident that he’s popped in in 2012.” Jacobs says ASWF operated “right on the line” of legality. Sabato says ASWF played a key role in resuscitating Gingrich’s flagging political career. His term as speaker of the House ended in scandal and resignation, and his high-profile divorces and profligate personal and campaign spending had led many to assume that Gingrich’s political career was over. But Sabato says Gingrich used ASWF to create what he calls a new kind of informal candidacy, one that shows the inherent weakness of campaign finance laws that are supposed to ensure “nobody could give so much money that they would become too influential, too powerful.” ASWF was always nominally independent, as required by law, but in 2009 Gingrich ousted its board of directors and took the title of general chairman. Gingrich never formed a formal exploratory committee before declaring his candidacy for president. McClatchy observes, “None of his Republican presidential rivals, nor any other federal candidate for that matter, is known to have operated such a committee before formally declaring his or her candidacy.” Gingrich spokesperson R.C. Hammon says Gingrich did not begin considering a presidential campaign until April 2011, and all of his committee activities were “legitimate.” Hammond says: “The purpose of American Solutions was to advance an agenda of free enterprise and tri-partisan solutions. Those were the activities he was undertaking.” ASWF is just one of a network of political entities that Gingrich has created over the last 10 years. He has managed to enrich himself by charging lucrative fees for speeches, consulting for undisclosed health care industry firms, and selling historical documentaries and books. After the group was formed in the fall of 2006, Gingrich sent a letter to potential backers calling it a unique organization “designed to rise above traditional gridlocked partisanship” and to develop “breakthrough solutions to the most important issues facing this country.” Vin Weber, a former Minnesota congressman who served on ASWF’s board for two years, says the group “certainly helped build his path back into political prominence.” He adds, “They basically sent Newt around the country promoting American Solutions.” Weber is now supporting Romney for the presidency. He says that ASWF had “not gotten really up to speed in terms of programming” when he received a call, apparently in 2008, advising him that the board was being abolished. Gingrich then took over as the group’s general chairman.
Relatively Little Spent on Campaign Initiatives, Most Spent on Raising More Money - ASWF proposed a number of campaign and advertising initiatives that would appeal to conservative donors, including:
bullet a “Drill Now!” movement aimed at increasing US oil exploration;
bullet attempts to rally opposition to President Obama’s health care reform efforts;
bullet a campaign to fight climate change legislation that would call for reduced carbon emissions by industrial concerns.
But of $37.9 million raised from 2006 through 2009, the committee spent just $7.2 million on programs, according to its filings with the Internal Revenue Service. Most of the ASWF money was spent on telemarketers and direct-mail appeals to develop a loyal pool of wealthy contributors. InfoCision, an Ohio telemarketing firm that specializes in building lists of “small” donors, was paid some $30 million over the course of the organization’s existence, exhausting much of the money contributed. $17 million of that money was used to finance Gingrich’s travel. [McClatchy News, 12/19/2011; Think Progress, 12/19/2011]

Entity Tags: Bernie Marcus, Benjamin Netanyahu, Richard Sharp, R.C. Hammon, Plains Exploration Company, Sheldon Adelson, Stanley Hubbard, Terry Kohler, Vin Weber, American Electric Power Company, Barack Obama, American Solutions for Winning the Future, Willard Mitt Romney, Arch Coal, Newt Gingrich, Robert Castellini, McClatchy News, Michael Morris, Crow Holdings, Charles Schwab, Center for Responsive Politics, Carl Lindner, Devon Energy, Frank Fertitta Jr., Peabody Energy, Fred Palmer, Internal Revenue Service, InfoCision, James France, Fred Sacher, Larry J. Sabato, Fred Godley, Lawrence Jacobs

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Newt Gingrich 2012 presidential campaign logo.Newt Gingrich 2012 presidential campaign logo. [Source: Logo Design Love (.com)]The political watchdog organization Citizens for Responsibility and Ethics in Washington (CREW) files a complaint against presidential candidate Newt Gingrich (R-GA) alleging that he sold his mailing list to his own campaign for $42,000. CREW files the complaint with the Federal Election Commission (FEC), and calls the transaction an unlawful personal use of campaign funds. The complaint also alleges that Gingrich seems to be improperly commingling book sales and campaign events. The mailing list sale was never listed on FEC disclosure forms. CREW executive director Melanie Sloan says: “Newt Gingrich will do anything to make a buck, even sell his own mailing list to his campaign. He has a long history of playing fast and loose with ethics rules, so it should surprise no one to learn he is at it again.” Gingrich campaign spokesman R.C. Hammond says in response that “if the FEC considers the complaint, they will find that the rules are being followed and published regulations are being enforced.” It is not unusual for political campaigns to buy and sell mailing lists, but the Gingrich case is unusual because Gingrich’s campaign says it bought the mailing list directly from Gingrich, and not from a political committee or group. Documents show that Gingrich stated in July 2011 that he was owed $47,005 by the campaign for “direct mail list/travel.” At the time, Hammond said the campaign paid Gingrich $42,000 for the mailing list. Hammond claims that he, not Gingrich, owned the mailing list, and that the failure to disclose the payment was merely an oversight. In its complaint, CREW notes that the mailing list was not included as an asset in Gingrich’s financial disclosure records, which are filed by presidential candidates. Therefore, the group argues, the list appears to be owned by Gingrich Productions, which is the name of the holding firm now headed by Gingrich’s wife Callista. Gingrich Productions routinely sells books and other materials at the same venues as Gingrich holds campaign-related events, an improper “commingling” of sales and campaign appearances. Federal law prohibits candidates from using campaign resources to profit personally or from using corporate funds to subsidize a campaign. [Washington Post, 12/19/2011] On the same day as the complaint filing, the press reveals an “extraordinary” and potentially illegal relationship between Gingrich and an “independent” political PAC (see December 19, 2011).

Entity Tags: Newt Gingrich, Citizens for Responsibility and Ethics in Washington, Federal Election Commission, Melanie Sloan, R.C. Hammond, Newt Gingrich presidential campaign (2012)

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Representatives John Yarmuth (D-NY) and Walter Jones (R-NC) file a bill, the Yarmuth-Jones Disclose Act, that would amend the US Constitution to overturn the Citizens United ruling (see January 21, 2010) and take special-interest money out of American politics. The proposed amendment establishes that financial expenditures and in-kind contributions do not qualify as protected free speech under the First Amendment (see January 30, 1976, April 26, 1978, June 25, 2007, June 26, 2008, January 21, 2010, January 21, 2010, January 22, 2010, March 26, 2010, and December 12, 2011). It also makes Election Day—the first Tuesday in November—a legal holiday, and enables Congress to establish a public financing system that would serve as the sole source of funding for federal elections (see 1974, January 26, 2011 and After, June 27, 2011, and December 1, 2011). Yarmuth explains his proposal in the context of the Citizens United case, saying: “Corporate money equals influence, not free speech. The last thing Congress needs is more corporate candidates who don’t answer to the American people. Until we get big money out of politics, we will never be able to responsibly address the major issues facing American families—and that starts by ensuring our elections and elected officials cannot be bought by the well-off and well-connected.” Jones says in a statement: “If we want to change Washington and return power to the citizens of this nation, we have to change the way campaigns are financed. The status quo is dominated by deep-pocketed special interests, and that’s simply unacceptable to the American people.” Jones is one of the very few Republicans in Congress who is willing to advocate for campaign finance reform. It is unlikely the bill will pass the Republican-controlled House, and Senate Republicans would likely block it if it made it to that chamber. Amendments to the Constitution require a two-thirds vote in both chambers of Congress before being approved by three-fourths of state legislatures. [US House of Representatives, 12/20/2011; WFPL, 12/20/2011; Think Progress, 12/20/2011] This is not the first attempt to amend the Constitution to overturn Citizens United and regulate campaign financing (see September 20, 2011, November 23, 2010, November 1, 2011, and November 18, 2011).

Entity Tags: Walter Jones, 2012 Yarmuth-Jones Disclose Act, John Yarmuth

Category Tags: Campaign Finance

Republican presidential frontrunner Mitt Romney (R-MA) tells MSNBC reporter Chuck Todd that wealthy donors should be able to give unlimited amounts directly to candidates in lieu of donating to “independent” organizations such as super PACs (see March 26, 2010, June 23, 2011, and November 23, 2011). The US history of campaign finance law (see 1883, 1896, December 5, 1905, 1907, June 25, 1910, 1925, 1935, 1940, February 7, 1972, 1974, May 11, 1976, January 30, 1976, January 8, 1980, March 27, 1990, March 27, 2002, and December 10, 2003), including the 2010 Citizens United decision (see January 21, 2010), has always put stringent limitations on what donors can contribute directly to candidates. Asked if he thinks the Citizens United decision was a poor one, Romney responds: “Well, I think the Supreme Court decision was following their interpretation of the campaign finance laws that were written by Congress. My own view is now we tried a lot of efforts to try and restrict what can be given to campaigns, we’d be a lot wiser to say you can give what you’d like to a campaign. They must report it immediately and the creation of these independent expenditure committees that have to be separate from the candidate, that’s just a bad idea.” Ian Millhiser, a senior legal analyst for the liberal news Web site Think Progress, responds: “It’s not entirely clear from this interview that Romney understands what happened in Citizens United. That decision emphatically did not follow any ‘interpretation of campaign finance laws that were written by Congress.’ Rather, Citizens United threw out a 63-year-old federal ban on corporate money in politics.… [I]t was not a case of judges following the law. More importantly, however, Romney’s proposal to allow wealthy donors to give candidates whatever they’d ‘like to a campaign’ is simply an invitation to corruption (see October 17, 2011). Under Romney’s proposed rule, there is nothing preventing a single billionaire from bankrolling a candidate’s entire campaign—and then expecting that candidate to do whatever the wealthy donor wants once the candidate is elected to office. Romney’s unlimited donations proposal would be a bonanza for Romney himself and the army of Wall Street bankers and billionaire donors who support him, but it is very difficult to distinguish it from legalized bribery.” Millhiser notes that Romney had a different view on the subject in 1994, saying then that when you allow special interest groups to buy and sell candidates, “that kind of relationship has an influence on the way that [those candidates are] going to vote.” [Think Progress, 12/21/2011]

Entity Tags: Willard Mitt Romney, Charles David (“Chuck”) Todd, Ian Millhiser

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

The Virginia Republican Party will require voters to sign a loyalty oath in order to participate in the March 6 presidential primary. In order to vote in the primary, Virginians will have to sign a form at the polling place pledging to support the eventual Republican nominee for president. Any voter who refuses to sign the oath would not be allowed to vote. The State Board of Elections voted 3-0 to approve the forms as requested by the Virginia GOP. The oath is legal under Section 24.2-545 of the Code of Virginia. The oath reads, “I, the undersigned, pledge that I intend to support the nominee of the Republican Party for president.” The voter must then sign the form and print his or her name. Only two candidates, Mitt Romney (R-MA) and Ron Paul (R-TX), will be on the ballot; other Republican candidates either did not garner enough signatures to qualify or did not seek to be placed on the ballot. Virginia has “open” primaries, which means that voters from any party, or unaffiliated voters, may vote in any party’s primary, although voters must only vote in one primary of their choosing. In the 2000 GOP presidential primary, voters were required to sign a pledge reading, “I, the undersigned, state that I do not intend to participate in the nomination process of any other party than the Republican Party.” Virginia did not hold a GOP primary election in 2004 because President Bush was running uncontested for re-election. For the 2008 elections, the Virginia GOP chose not to require a loyalty oath, partially because Democrats were voting in their own primary election. In 2012, there will be no Virginia Democratic primary because President Obama will be the only Democrat on the ballot. GOP State Delegate Robert Marshall says he disagrees with the idea of a loyalty oath, and that such a thing does not fit in with the philosophy espoused by the Republican Party. “Ironically, requiring a loyalty oath will bar even former US House Speaker Newt Gingrich [another presidential candidate who is not on the ballot] from voting in the primary because he already has said unequivocally that he will not vote for Ron Paul for president if he’s the Republican nominee,” Marshall says. “Virginia’s Republican leadership wants to mandate a loyalty oath when Virginia’s Republican officials are in court fighting the Obamacare mandate? This sends the wrong message.” [Inside NoVA, 12/29/2011; Inside NoVA, 12/29/2011]

Entity Tags: Virginia State Board of Elections, Newt Gingrich, Republican Party, Virginia Republican Party, Robert Marshall, Ron Paul, Willard Mitt Romney

Category Tags: Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement

The Montana Supreme Court rules 5-2 in the case of Western Tradition Partnership v. Bullock that a century-old law prohibits corporate spending in state and federal elections conducted within the state. The ruling seems to challenge the US Supreme Court’s Citizens United ruling (see January 21, 2010). The case stems from a challenge by a “social welfare organization,” Western Tradition Partnership (WTP, which changed its name to American Tradition Partnership after the original lawsuit was filed), joined by two other corporate entities, to Montana’s 1912 Corrupt Practices Act (CPA). The law banned corporate spending in elections, after two out-of-state copper industry magnates attempted to “buy” the Montana legislature by pouring money into the 1894 state elections. The law declares that “corporations may not make… an expenditure in connection with a candidate or a political committee that supports or opposes a candidate or a political party.” The Montana Supreme Court finds that the CPA is needed to ensure the integrity of Montana’s elections, and to make sure that citizens and not corporations are running the state. However, the Court acknowledges that its ruling conflicts with the Citizens United decision, though it says that the Citizens United decision allows for restrictions on corporate political speech if the government can demonstrate that the restrictions are as minimal as possible to achieve a compelling governmental interest. The Montana Court rules that because of Montana’s history of corporate vote-buying and the narrow restrictions of the CPA, the law should stand. It also notes that Western Tradition Partnership argued in its original suit that disclosure laws, as opposed to outright bans, would serve the public interest and guard against corruption; however, the organization is currently involved in another lawsuit in which it argues that those same disclosure laws are unconstitutional restrictions of the freedom of speech. [Western Tradition Partnership v. Bullock et al, 12/30/2011 pdf file; Los Angeles Times, 1/4/2012; Reuters, 6/25/2012; OMB Watch, 6/25/2012; Washington Post, 6/25/2012; OMB Watch, 7/10/2012] Even one of the dissenters, Justice James C. Nelson, disagrees with the Citizens United characterizations that corporations are legally people, writing: “Corporations are not persons. Human beings are persons, and it is an affront to the inviolable dignity of our species that courts have created a legal fiction which forces people—human beings—to share fundamental, natural rights with soulless creatures of government. Worse still, while corporations and human beings share many of the same rights under the law, they clearly are not bound equally to the same codes of good conduct, decency, and morality, and they are not held equally accountable for their sins. Indeed, it is truly ironic that the death penalty and hell are reserved only to natural persons.” WTP’s director Donald Ferguson says after the decision that the case hinges on freedom of speech (see January 21, 2010): “The current state law says that if you own a business and you would like to use the resources of the business to speak out about how you see the law, you essentially have to ask prior permission from the state. Under the current regime, the state regulatory agencies and the newspapers basically have a monopoly on information. We’re simply trying to put more free speech in motion.” [Los Angeles Times, 1/4/2012; Huffington Post, 1/4/2012]
Legal Scholars Anticipate Montana Ruling to be Overturned - Paul Ryan of the Campaign Legal Center calls the Montana high court’s ruling “an antidote to the crabbed view of corruption” displayed in Citizens United. Ryan, like many others, anticipates the US Supreme Court will overturn today’s ruling. [Huffington Post, 1/4/2012] One of those others is law professor Richard Hasen, who writes: “[I]f the Court were being honest in Citizens United, it would have said something like: ‘We don’t care whether or not independent spending can or cannot corrupt; the First Amendment trumps this risk of corruption.’ But the Court didn’t say that, because it would have faced even greater criticism than it already has. So it dressed up its value judgment (no corruption ‘implied in law’) as a factual statement. The Montana Supreme Court called SCOTUS [the US Supreme Court] on this. And when SCOTUS reverses, the disingenuousness of this aspect of CU will be on full display for all.” Hasen is referring to the Court’s finding in Citizens United that independent spending in elections does not legally imply corruption. [Rick Hasen, 1/1/2012]
Appeal to Supreme Court - Attorneys for WTP and the other corporate plaintiffs will appeal to the US Supreme Court on the grounds that Montana is bound by the Citizens United decision and that the decision applies to state as well as federal elections. Attorney James Bopp, in filing the appeal, will say: “If Montana can ban core political speech because of Montana’s unique characteristics, free speech will be seriously harmed. Speakers will be silenced because of corruption by others over a century ago.” The US Supreme Court will quickly issue a stay of that decision. [Reuters, 6/25/2012; OMB Watch, 6/25/2012] When the case reaches the US Supreme Court, the name of the plaintiff will change into “American Tradition Partnership,” and the Court’s documentation will reflect that change. The Court will overrule the Montana decision (see June 25, 2012). After the decision, American Tradition Partnership’s Web site will disappear, but the liberal accountability organization SourceWatch will describe the organization’s parent, the American Tradition Institute, as described in the group’s mission statement: “a public policy research and educational foundation… founded in 2009 to help lead the national discussion about environmental issues, including air and water quality and regulation, responsible land use, natural resource management, energy development, property rights, and free-market principles of stewardship.” ATI and its affiliates are pro-development and against expanded environmental regulation, according to SourceWatch’s documentation, made up of “a broader network of groups with close ties to energy interests that have long fought greenhouse gas regulation.” [SourceWatch, 2012]

Entity Tags: American Tradition Institute, American Tradition Partnership, Donald Ferguson, James C. Nelson, 1912 Corrupt Practices Act (Montana), SourceWatch, US Supreme Court, Paul S. Ryan, Montana Supreme Court, James Bopp, Jr, Richard L. Hasen

Category Tags: Court Procedures and Verdicts, Campaign Finance

Washington Post columnist Ruth Marcus sharply criticizes the actions of so-called “super PACs.” Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization. A mere 12 donors, including several corporations, one union, and a number of billionaires, made up over half of the donations given to super PACs in the first half of 2011, and Republican super PACs have outraised Democratic super PACs by more than a 2-1 margin (see August 4, 2011). Marcus writes that the presidential election is already devolving into an affair “without meaningful contribution limits or timely disclosure, outsourced to political action committees whose spending often dwarfs that of the candidates they support.” The PACs and super PACs rarely obey the law and operate independently of the candidates they support. The Republican primary season demonstrates just how powerful they are: the super PAC supporting presidential candidate Mitt Romney (R-MA), “Restore Our Future,” has spent $4 million attacking Republican candidate Newt Gingrich (R-GA). The veneer of independence for Restore Our Future is thin: it is run by former Romney political director Carl Forti, its treasurer Charles Spies was Romney’s general counsel, its head fundraiser Steve Roche used to head the Romney 2012 finance team, and Romney has spoken at Restore Our Future events (see June 23, 2011). However, Marcus notes, “up-to-date information about who is bankrolling this effort will not be available until the end of January, by which point four states will have voted and Romney may have the nomination wrapped up.” Restore Our Future was last required to report its donors to the Federal Election Commission (FEC) in July 2011, when it reported raising $12 million. Gingrich’s own super PAC, “Winning Our Future,” is primarily funded by billionaire casino owner Sheldon Adelson, and their fellow Republican candidate Governor Rick Perry (R-TX) has the super PAC “Make Us Great Again.” Long-shot Republican candidate Jon Huntsman’s super PAC, “Our Destiny,” is reportedly funded primarily by Huntsman’s wealthy father. And President Obama’s super PAC, “Priorities USA Action,” has launched anti-Romney ads. Marcus writes, “The rise of these groups erodes the twin pillars of a functional campaign finance system: limits on the size of contributions and timely information about who is writing the checks.” Her concerns are echoed by veteran campaign finance reformer Fred Wertheimer, who recently said: “The establishment of the candidate-specific super PAC is a vehicle to completely destroy candidate contribution limits. It is a vehicle that will spread to Congress and it will lead us back to a system of pure legalized bribery, because you will be back, pre-Watergate, to unlimited contributions that are going for all practical purposes directly to candidates.” For now, super PACs, with their supposed independence, are free to air advertisements attacking opposing candidates while the candidate they support, Marcus writes, “gets to remain above the fray, not required to appear on camera to say that he or she approved this message.” FEC official Ellen Weintraub tells Marcus, “I view the super PAC as the evil twin of the candidate’s campaign committee.” Referring to the legal limit of $2,500 for donations to candidates from individual or corporate donors, Weintraub says, “How can it possibly be true that to give more than $2,500 to a candidate is potentially corrupting but to give millions to an outside group that is acting on the candidate’s behalf is not?” Marcus concludes by saying that “dangerous” super PACs will only increase their influence as the presidential campaign season continues. [Washington Post, 1/3/2012]

Entity Tags: Fred Wertheimer, Willard Mitt Romney, Winning Our Future, Charles R. Spies, Carl Forti, Barack Obama, Washington Post, Federal Election Commission, Steve Roche, Ruth Marcus, Make Us Great Again, Jon Huntsman, James Richard (“Rick”) Perry, Newt Gingrich, Priorities USA Action, Ellen L. Weintraub, Our Destiny, Sheldon Adelson, Restore Our Future

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Former Governor Mike Huckabee (R-AR), a 2008 presidential contender, speaks on Fox News about his dislike for “super PACs” (see March 26, 2010, June 23, 2011, and November 23, 2011) and what he calls their corrosive effect on US politics. Huckabee says that the pretense of super PACs’ independence from the candidates they support is untrue and debilitating. He objects to the way that such groups allow candidates to pretend to stay above the fray while unidentifiable “snipers from the trees,” meaning the super PACs, run negative attack ads against opponents, calls super PACs “one of the worst things that ever happened in American politics,” and says they have “killed civility.” Huckabee advocates for greater transparency, saying anyone who gives money to fund attack ads should have to put their name on them. He says in part: “I think one of the worst things that ever happened in American politics is the rise of the independent expenditure groups that really don’t have accountability. You don’t know where this money is coming from. You don’t know where the accountability is coming from, and the candidates have no coordination.… I wish that every person who gives any money [to fund an ad] that mentions any candidate by name would have to put their name on it and be held responsible and accountable for it. And it’s killing any sense of civility in politics because the cheap shots that can be made from the trees by snipers that you never can identify. It’s just the worst part of this process.” [Think Progress, 1/3/2012] Liberal Washington Post columnist Ruth Marcus writes a column the same day that agrees with much of what Huckabee says (see January 3, 2012).

Entity Tags: Ruth Marcus, Mike Huckabee

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Presidential candidate Newt Gingrich (R-GA) says that his primary opponent, frontrunner Mitt Romney (R-MA), is lying about having no control or influence over his “independent” super PAC, Restore Our Future (see June 23, 2011). Gingrich, asked if he is accusing Romney of lying about his involvement with the organization, affirms the suggestion, saying: “This is a man whose staff created the PAC (Restore Our Future), his friends fund the PAC, he pretends he has nothing to do with the PAC. It’s baloney. He’s not telling the American people the truth.” [NBC News, 1/3/2012] Gingrich is facing allegations that he has misused a super PAC that advocated on his behalf (see December 19, 2011).

Entity Tags: Newt Gingrich, Restore Our Future, Willard Mitt Romney

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Page 4 of 5 (485 events)
previous | 1, 2, 3, 4, 5 | next

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike