In the News
Chronicle of Philanthropy: Utah Groups File Suit Against Donor-Disclosure Law
The measure requires a nonprofit to disclose its donors if it spends $750 or more “to influence or tend to influence, directly or indirectly” any election. It was adopted in 2013 in the wake of a scandal involving former state Attorney General John Swallow, who was accused of funneling hundreds of thousands of dollars in campaign contributions from payday lenders through a nonprofit to shield donors’ identities.
The Utah Taxpayers Association, the Utah Taxpayers Legal Foundation, and the Libertas Institute say the law would have a chilling effect on the free-speech rights of groups ranging from Planned Parenthood to the Mormon Church. The measure presents nonprofits with “an impossible choice” between taking part in the public debate and protecting donors’ privacy, said Allen Dickerson, legal director of the Center for Competitive Politics, which is representing the plaintiffs.
San Antonio Express News: Texas ‘dark money’ rule set for court fight ahead of primaries
David Saleh Rauf
The commission has been working over the last several months to amend the rule to clarify how a nonprofit can calculate its contributions to determine whether they need to be counted against its threshold.
David Keating, president of the Center for Competitive Politics, a conservative group that advocates for free speech and free spending in politics, said the commission’s proposed changes so far are a step in the right direction. But, he said, Texas regulators still have a long way to go.
“We think 25 percent is too low, but the reality is they’ve made a lot of progress on this front,” Keating said. “That being said they still have some loose language that tends to make things more difficult to understand than what it should be.”
San Diego Union-Tribune: Is the AG chilling charitable giving?
Steven Greenhut
The AFP Foundation said in its lawsuit that it has been filing such forms every year since 2001 without problem – but that in the last two years Harris has demanded the Section B information. As this column previously reported, the AG’s office said that was needed for potential enforcement issues – and that its policy was to keep the donor information in confidence. The deposition certainly raises questions about the security of the information…
This case is expected to go to court in February. In a similar case, the U.S. Supreme Court recently declined hearing the Center for Competitive Politics’ challenge to the attorney general’s rule. The center’s president, David Keating, told me the high-court’s decision dealt only with its call for a preliminary injunction, so the case goes back to district court for a ruling on its merits. So the matter is far from resolved and other cases target similar rules in New York and Florida.
Independent Groups
OC Register: State campaign finance rules stifle free speech
Kyle Maichle
On Oct. 15, the California Fair Political Practices Commission issued new regulations on so-called “coordination” between candidates and super political action committees. The new rules are widely considered to be the toughest in the nation. In fact, they’re an outrageous infringement of freedom of speech…
Americans, including Californians, frequently gripe about the increased amount of political spending, but the FPPC is creating a new problem by over-reacting to such concerns. It appears California’s campaign finance regulators are deliberately stifling the First Amendment rights of charter school proponents while leaving the California Teachers Association carte blanche to push its anti-reform agenda, thanks to state laws allowing unions to make unlimited campaign contributions.
Center for Public Integrity: Secret donors fuel Democratic political powerhouse
Michael Beckel
Patriot Majority USA was a major player in the Democrats’ failed bid to retain control of the U.S. Senate last year — a time when many Democratic candidates decried the influx of “dark money” in politics.
The group aired more than 15,000 TV ads in key Senate races, according to a Center for Public Integrity analysis of data provided by advertising firm Kantar Media/CMAG, which monitors broadcast and national cable TV ads. Not a single one was positive.
In all, 40 percent of the $34 million Patriot Majority USA spent in 2014 went toward “direct and indirect political campaign activities,” according to the group’s new tax filing — nearly $13.7 million.
The Hill: Latest foreign money complaint to FEC: ‘Deja vu all over again’
Former Rep. Bob Barr
While Super PAC spending is a legitimate and lawful way for individuals to advocate for candidates of their choice, it does increase pressure on campaigns to make sure their candidates do not become so eager to obtain monies from Super PAC donors, that they wind up being linked to illegal and possibly criminally-tainted foreign monies that have been commingled with legitimate, domestic dollars.
For some candidates, however, the temptation to secure a large infusion of cash for a supportive Super PAC can override the time-consuming and often complex due diligence necessary to ensure such taint is not present. But they would do so at their own peril.
Campaign Law Enforcement
New York Post: Assembly candidate arrested for not filing finance reports
Kirstan Conley
Michelle Adolphe, a candidate who ran for a Brooklyn state Assembly seat last year and lost, joined a growing line of politicians busted for alleged wrongdoing…
In a highly unusual move, Attorney General Eric Schneiderman and Board of Elections Chief Enforcement Counsel Risa Sugerman charged Adolphe with the crime for failing to report her campaign money came from and how it was spent…
Adophe’s attorney, Steven Alfasi, defended his client by noting how unusual the charges are.
“The officer taking down Ms. Adolphe’s pedigree and information said that it’s only the second time he’s ever even seen these charges brought in his 20-year-career,” Alfasi said. “That speaks volumes and it shouldn’t go unnoticed that Ms. Adolphe switched parties in 2015 from Democrat to Republican.”
Free Speech
Pew Research Center: Where the world sees limits to free speech
Jacob Poushter & Dionna Givens
A new survey of people in 38 countries finds that for many provocative forms of speech, such as sexually explicit statements or calls for violent protests, most people draw a line between protected speech and speech that goes too far. And compared with the rest of the world, Americans generally are more accepting of free speech of any kind.
Criticizing government policies is the most accepted form of speech from our global poll, among the five statements that we tested. A median of eight-in-ten people across 38 countries say people should be able to express dissatisfaction with the government publicly. And about half or more in every country surveyed say this is acceptable. In many countries, people with a higher level of education are more likely than those with less education to support being able to criticize government policies in public.
Candidates and Campaigns
Washington Post: Inside the Clinton Donor Network
Matea Gold, Tom Hamburger and Anu Narayanswamy
Over four decades of public life, Bill and Hillary Clinton have built an unrivaled global network of donors while pioneering fundraising techniques that have transformed modern politics and paved the way for them to potentially become the first husband and wife to win the White House.
The grand total raised for all of their political campaigns and their family’s charitable foundation reaches at least $3 billion, according to a Washington Post investigation.
CNN: Bernie Sanders backed by $570,000 from union super PAC
Dan Merica
A super PAC tied to a union supporting Bernie Sanders has spent almost $570,000 to help his presidential run, according the Sunlight Foundation and representatives from the group, spending that contradicts some of what the Vermont senator has said in the past about campaign finance reform.
National Nurses United For Patient Protection, a independent expenditure group, or super PAC, has spent $569,000 backing Sanders. National Nurses United, the union associated with the group, endorsed Sanders in August, the first national union to do so, and has since been seen supporting him at events across the country.
New Orleans Times-Picayune: Bobby Jindal: Blame me for failed presidential campaign
Kevin Litten
Asked whether not appearing in the debates was a drag on fundraising, Jindal said, “there were many factors in deciding this wasn’t our time.
“It is what it is. And that’s fine. You live to fight another day and move on. You can’t really go back and change what happened,” Jindal said. “I’m not blaming the RNC, I’m not blaming anybody. The reality is, I take full responsibility for this campaign. Anybody running for president, you know the rules going in, and the reality is, if you want to be president of this country, it is an incredibly important and challenging job. You’ve got to be able to handle whatever comes your way, no excuses.”
The States
Connecticut Mirror: Democrats’ campaign finance cuts losing steam
Mark Paznioskas
Few trial balloons at the State Capitol have deflated as quickly as a proposal this week by Democratic legislative leaders to save $11.7 million by suspending Connecticut’s groundbreaking system of publicly financed campaigns.
The administration of Gov. Dannel P. Malloy and the Connecticut Democratic Party distanced themselves from the proposed budget cut in messages delivered to outraged constituency groups. Young legislators publicly opposed their leaders.
ABC News: Montana Is Latest State to Reform Campaign Finance Rules
Matt Volz
“You can put a lightbulb in a big cave and not see very far,” Montana Commissioner of Political Practices Jonathan Motl said. “In Montana, you’re going to see a lot of corners.”
The changes — expected to be adopted by next week — will require more organizations to disclose their donors and spending, add restrictions to coordination between candidates and outside organizations, and require candidates to file same-day electronic disclosures of their contributions.
Some people aren’t convinced the reforms will live up to the promises. Paul Ryan, deputy executive director of the nonprofit Campaign Legal Center in Washington, D.C., called Montana’s efforts a squandered opportunity.
San Jose Mercury News: San Jose Ethics Commission can end the madness
Editorial Board
City Attorney Rick Doyle cleared the way out of the mess this month by ruling that Councilman Manh Nguyen does not have to pay a $10,000 fine levied by the city’s Ethics Commission last spring for filing reports late. Nguyen did miss deadlines, but he had conscientiously followed the campaign manual issued by City Clerk Tami Taber, supposedly the city’s authority on the election laws.
Listening to her was a reasonable thing to do, Doyle said of Nguyen’s claim. Of course it was.
At every step, the Ethics Commission did what the law required. When it learns of violations, it has to levy at least minimum penalties, regardless of extenuating circumstances. It couldn’t just absolve Nguyen on its own, frustrating as the case was.
Nguyen and other candidates who missed deadlines came from all over the political spectrum and had not shown intent to dodge regulation. Mayor Sam Liccardo and his opponent last fall, County Supervisor Dave Cortese, both fell into the trap.
