CCP
Center for Competitive Politics Files Cert Petition in Corsi v. OEC
By Joe Trotter“OEC did not conduct a thorough investigation before ruling that GCC must register with the government,” said CCP Legal Director Allen Dickerson. “It appears that the OEC can pick what information to examine, and then subject organizations to registration and reporting requirements based solely on some evidence of some political activity. That is not and should not be the law.”“The Ohio Court of Appeals applied the First Amendment in a manner inconsistent with the major purpose test required by Buckley and Massachusetts Citizens for Life v. FEC,” said CCP Chairman Bradley A. Smith. “Inconsistency in determining which organizations are PACs leaves issue advocacy groups vulnerable to unconstitutional governmental oversight. Ohio’s statute and its enforcement by the OEC are inconsistent with Supreme Court precedents and the First Amendment.”“Corsi v. OEC provides an opportunity for the Court to declare the major purpose test mandatory, and to require the states to undergo analysis already required at the federal level,” added Dickerson.The petition warns that “Unless this Court weighs in, the major purpose requirement is poised to become a dead letter in the states. . . . Many states, including Ohio, have adopted systems whose vague and overbroad triggers ‘offer[] no security for free discussion’ — the very harm Buckley sought to avoid.”
Independent Groups
Fox: The IRS’ power to tax is also the power to destroy
By Dr. James DobsonThe agent said she doubted that Family Talk Action’s application would be approved because it sounded like a “partisan, right-wing group.” She elaborated, “You’re political because you criticized President Obama when he was a candidate.”Our attorney told her that was entirely untrue and said we would just have to litigate. Nine days later, our application was magically approved.How many other organizations would have closed their doors because they lacked the financial resources with which to fight for their free speech?
Wall Street Journal: IRS Scandal Could Boost Tax-Code Overhaul Efforts
By Corey BolesRep. Pat Tiberi (R., Ohio) said that the scandal is reinforcing the notion in lawmakers’ and voters’ minds that the IRS has too much discretion and that the wider tax code is broken.“When you have the IRS scandal, it puts this at the top of people’s minds, it just reinforces that the IRS is broken, that the tax code is broken,” said Mr. Tiberi, speaking to reporters at a tax policy conference in Washington.
Roll Call: Keep Tax-Exempt Groups Out of Politics
By Rep. Charles RangelThis entire situation boils down to an archaic piece of the tax code that has been poorly interpreted and applied. I am, of course, referring to section 501(c)(4), which currently allows an organization to maintain tax-exempt status while openly engaging in political activity and preserving the anonymity of their donors. This is strange since the actual law states that such organizations must be “operated exclusively for the promotion of social welfare” — something that does not include political activity. The confusion comes from a regulation interpreting this law which states that “[a]n organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting” the common good or general welfare of the community. It seems that if an organization is “exclusively” engaged in one activity, then it should not be “primarily” engaged in that activity, it should only be engaged in that activity. When asked why the drafters of this regulation decided to redefine the word “exclusively,” the IRS can only point to the fact that this regulation was put into action in 1959, which was 54 years ago. Perhaps this made sense then; it certainly does not make sense now.
Roll Call: ‘Senator’ Strips for Cash in Campaign Video (Updated)
By Julie ErshadiAn effort to pass a campaign finance overhaul bill gets racy in its most recent move to get money out of politics.In a YouTube video published this morning, the Represent.Us campaign to “end corruption” and “get America back” portrays a fictional senator stripping down to his Old Glory underpants and allowing a pack of lobbyists to jam dollar bills just about everywhere, right up to where the sun don’t shine.
Disclosure
Newsmax: Did the IRS Commit a Federal Offense?
By Reince PriebusThat was the charge from National Organization for Marriage Chairman John Eastman. A list of the organization’s donors and other confidential information appeared on another political group’s website last year. Eastman says there’s no way they could have gotten that information without someone at the IRS providing it.If that’s true, it’s an insidious violation of the First Amendment, which should bother Americans of all political stripes — especially if the IRS takes no action in response to it.And indeed, it doesn’t look like they will. NOM asked the IRS for information about the leak, but the IRS refused to cooperate. They said they can’t talk about such private information.
Soft Money Hard Law: Disclosure Priorities
By Bob BauerCampaign finance law is populated with various requirements for detailed, periodic disclosure. The Federal Election Commission operates a Reports Analysis Division “to ensure that campaigns and political committees file timely and accurate reports that fully disclose their financial activities.” Reports Analysis Division Mission Statement at http://www.fec.gov/rad/index.shtml. The agency also administers a system of administrative remedies for late and non-filing—routinizing the enforcement of the law and seeking to allocate resources as efficiently as possible to cover both large and small cases. 11 CFR § 111.30 et seq. (Subpart B: Administrative Fines). The FEC has reported to Congress that since 2000, the Commission has resolved 2,399 cases and assessed $4.27 million in fines through this system. Federal Election Commission, Performance and Accountability Report (2012) at 23.
Lobbying and Ethics
Politico: Former Rep. Rick Renzi convicted in corruption trial
By John BresnahanFormer Rep. Rick Renzi has been found guilty on 17 federal corruption charges following a lengthy legal battle, including allegations that FBI agents improperly listened in on his phone calls with other lawmakers.The Arizona Republican was found guilty of racketeering, wire fraud, extortion, conspiracy to commit money laundering, making false statements to insurance regulators, and transactions involving criminally derived funds, according to court documents. Renzi’s lawyers said he would appeal the verdict.
State and Local
California –– LA Times: Two former state lawmakers fined for campaign finance violations
By Patrick McGreevyTwo former state lawmakers have agreed to pay fines for violating campaign finance rules, according to documents released Monday by the state Fair Political Practices Commission.Former Assembly members Alberto Torrico (D-Newark) and Anna Caballero (D-Salinas) each agreed to pay $1,000 in fines to the FPPC for not reporting some campaign expenditures by the deadlines.Caballero, a member of Gov. Jerry Brown’s cabinet, admitted her unsuccessful 2010 campaign for state Senate failed to properly report subvendor information for $825,335 in spending.
Connecticut –– Journal Inquirer: Rell chides Malloy and Democrats for weakening campaign finance law
By Ed JacovinoFriday loosens restrictions on campaign spending and fundraising. It also doubles many of the limits on donations and allows political parties to run negative ads and give more money to candidates, even if those candidates are using the public financing system. And statewide political parties now can raise money by selling program book ads.
New York –– NY Times: Bloomberg Asks Donors to Withhold Gifts Over Gun Votes
By NICHOLAS CONFESSORE and JEREMY W. PETERSOn Wednesday, Mr. Bloomberg will send a personal letter to hundreds of the biggest Democratic donors in New York urging them to cut off contributions to the four Democratic senators who helped block a bill in April that would have strengthened background checks on gun purchasers.The move could inflame tensions that have simmered for weeks between Mr. Bloomberg, who blames the four Democrats for the defeat of the bill, and Democratic Senate leaders, who have privately told City Hall that the attacks can serve only to empower a Republican majority openly hostile to Mr. Bloomberg’s priorities.
