CQ TODAY ONLINE NEWS
June 22, 2009 – 7:18 p.m.
FEC Dismisses Cases Against 527s
By Alex Knott, CQ Staff
The Federal Election Commission has dismissed two investigations against pro-Democratic 527 organizations without any penalties.
The dismissals, detailed in documents released by the agency Monday, contrasted sharply with the FEC’s actions following the 2004 presidential campaign, when six-figure fines were levied against 527 groups, such as the MoveOn.org Voter Fund, the Club for Growth and Swiftboat Veterans and POWs for Truth. Those groups had been accused of violating federal campaign law by using corporate and union money to help elect federal candidates.
According to the documents the FEC took no action against the American Leadership Project, a 527 that was organized during the Democratic presidential primaries and spent soft money donations on ads in support of former Sen. Hillary Rodham Clinton ’s campaign for the nomination. The group raised more than $3.4 million, with most of the money coming from unions. Other project ads took aim at Barack Obama, leading to complaints from his supporters.
The FEC also dismissed a second investigation against Majority Action, a group that spent almost $2 million in soft money donations from unions on the 2006 congressional elections.
The makeup of the FEC has changed significantly during the last two years. During that time, the six-person panel has picked up four new members.
“It’s not a switch, it’s a complete abandonment of enforcement,” said Fred Wertheimer, the President and CEO of Democracy 21, a complainant in both FEC investigations.
He blames the three Republican commissioners, who he says “are operating in opposition to the campaign finance laws.”
The commission did split its vote along party lines, so to speak, with the Republican commissioners voting to dismiss the cases and Democratic members voting to fine the organizations.
In the case of Majority Action, the vote was 2-2, with two members — a Republican and a Democrat — not voting. The tie resulted in a dismissal.
In the case of the American Leadership Project, the vote was 3-2 to dismiss with one member, a Democrat, not voting.
Comments
This story omits an important perspective. At this point, it's akin to listening to a broken record to hear Wertheimer's complaints that the Republican commissioners are "operating in opposition to the campaign finance laws," or "abandon[ing] enforcement." Do Wertheimer & Co. really believe previous FEC Commissioners are infallible? We argue that the earlier Commission was in error -- misreading McConnell v. FEC to resuscitate a failed definition of express advocacy that several inferior courts earlier found to be unconstitutional. When the Supreme Court, however, decided Wisconsin Right to Life -- after the FEC launched its attacks against the 2004 527s -- there was no pretending any longer: the federal government has no ability to shut down issue advocacy organizations, like the ALP, no matter how much campaign operatives, their lawyers, and even "reformers," may wish otherwise. These votes represent genuine disagreements between the commissioners and are shaped by Supreme Court rulings -- not partisanship or flouting the law. "Reform" groups have little patience for any FEC vote -- split or otherwise -- that fails to limit political speech by independent groups, parties and candidates alike. Jeff Patch Communications Manager, Center for Competitive Politics www.campaignfreedom.org
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