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Friday, March 31, 2006

527 Court Opinion - Will the FEC appeal or make a rulemaking?
Wednesday, a federal district court judge ruled against the Federal Election Commission (FEC) for not requiring 527 groups to register as political committees, thereby allowing the soft-money groups to avoid spending limitations, because, “the FEC has failed to present a reasoned explanation for its decision that 527 organizations will be more effectively regulated through case-by-case adjudication rather than general rule.” Judge Emmet Sullivan said.

The case was remanded back to the FEC for “further proceedings consistent” with his opinion. This means that unless the FEC appeals the decision, they will now have to reopen rulemaking on 527s.

The House is planning to act on legislation next week that would restrict their activities. The Court's opinion.

Check out a Washington Post article.

Posted by Jennifer Lowe, 12:26:02 PM



Monday, March 27, 2006

FEC Unanimously Approves Internet Rulemaking
From Bob Bauer's blog:

The new rules provide that computer equipment and service use by company employees, or union employees, members and officeholders, engaged in personal volunteer political activities, would not be subject to a 1 hour per week or four per month "safe habor" allowance under current rules for these uses of office facilities. The use would still be considered "occasional, isolated, or incidental" use of office facilities--therefore permissible and unlimited--so long as the use 1) did not prevent those engaged in these activities from completing their assigned work; 2) was not "coerced" by their employer; and 3) did not result in increased overhead costs to the employer.


Posted by Jennifer Lowe, 01:09:47 PM



Friday, March 24, 2006

FEC Draft Internet Rules
Commissioners Lenhard and Weintraub provide a summary of the FEC draft Internet rules published today. The summary is available at www.moresoftmoneyhardlaw.com

Posted by Jennifer Lowe, 06:24:41 PM



Thursday, March 23, 2006

CREW Files Complaint Against PA Pastors
Today, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Internal Revenue Service (IRS) alleging that a get-out-the-vote training session offered by the Pennsylvania Pastors Network (PPN) may have violated IRS rules governing charities.

Visit CREW's website

Posted by Jennifer Lowe, 04:45:55 PM



FEC Delays Internet Rule
From Rick Hasen's blog:

My own take on what is happening at the FEC: the commissioners are likely looking for a compromise that would garner a majority vote on the Commission and be upheld against an inevitable court challenge no matter what the FEC does. This is a tall task. This is likely to be the most salient action of the FEC since its summer 2004 decision not to regulate 527s as political committees during that election.

The commissioners are in a tough spot. If they do very little (such as simply regulating paid ads and spam, as the Skeptic has suggested in Seussian poetry), the reform community will go back to Judge Kollar-Kotelly and complain that the Commission still has not done its job---only now the schedule will have to be expedited to deal with the upcoming 2006 elections. And if they do little, they can expect a flood of complaints filed against political websites arguing that they need to register as a political committee. If they do more, and set forth detailed rules, including rules on who gets the "media exemption," they are going to have to make some important and tough value choices. It may be hard to get at least 4 commissioners to agree on the precise contours of the rules that should be put in place.



Posted by Jennifer Lowe, 02:37:28 PM



Wednesday, March 15, 2006

CREW Files IRS Complaint Against Norquist Group
Citizens for Responsibility and Ethics in Washington (CREW) has filed an Internal Revenue Services (IRS) complaint against Americans for Tax Reform (ATR), and American for Tax Reform Foundation (ATR Foundation), asking the IRS to investigate activities by the groups which may violate IRS regulations and require a revocation of their tax-exempt status.

ATR is a conservative, non-profit organization led by right-wing activist Grover Norquist. CREW accuses Norquist of useing either or both ATR and ATR Foundation as commercial enterprises by laundering money derived from Indian casino clients of former lobbyist and convicted felon Jack Abramoff.

For more information, or to view the complaint, visit CREW's website

Posted by Jennifer Lowe, 09:34:59 AM



Tuesday, March 14, 2006

Nonprofit May Be Under IRS Scrutiny Soon
An article in the Hill says that the nonprofit group, Citizens for Responsibility and Ethics in Washingington (CREW) may be the recipient of a complaint filed with the IRS.

Tax experts say that CREW’s seemingly lopsided focus on Republicans will raise flags at the IRS, but they caution that determining violations of tax status so depends on the specific facts and circumstances of each case that it is impossible to predict how the IRS will act.

“At least preliminarily, I think they have a good case,” said former IRS official Richard J. Wood, referring to the concerns of Republican officials. “It looks to me that they’re probably right.”



Posted by Jennifer Lowe, 11:16:25 AM



Thursday, March 09, 2006

FEC Will Open OMB Watch Petition Up For Public Comment
The FEC Commissioners announced that they would not act this week, but instead take up proposed rules this coming Monday, March 13.

The Commissioners voted 4:2 to publish the Notice in the Federal Register and open the Petition up for public comment.

Posted by Jennifer Lowe, 05:13:52 PM



H.R. 1606 Will See Action Next Week
This morning, House Administration Committee unanimously approved H.R. 1606, a bill to exempt blogs, e-mail and other Internet speech from campaign finance regulations.

The bill is expected to go to the House floor next week. Reportedly, refomers such as Shays and Meehan are backing an alternate proposal.

The House already voted on the bill in early Nov, but it was defeated 225-182 under suspension rules. Members were upset it had been brought up under suspension rules, a process that requires a two-thirds vote for passage and limits debate. It is usually used for noncontroversial measures.

Next week's vote will be under a regular rule, requiring a simple majority vote to pass.

Posted by Jennifer Lowe, 04:02:54 PM



Wednesday, March 08, 2006

Tomorrow's FEC Agenda Includes OMB Watch Petition for Rulemaking
Federal Election Commission to discuss the petition filed by OMB Watch, Alliance for Justice, Chamber of Commerce and National Education Association tomorrow at 10 am.

For the FEC agenda and petition, click here

Posted by Jennifer Lowe, 02:41:18 PM



Friday, March 03, 2006

Online Freedom of Speech Act May See Consideration Next Week
We are hearing that the House will be re-considering H.R. 1606, the Online Freedom of Speech Act, introduced by Rep. Hensarling, sometime next week.

The bill would affirm the FEC's original decision to exclude the Internet from the definition of "public communications" under campaign finance law. The result would be to exclude the Internet from issues of soft money and illegal coordination. Congressional action would also point the FEC in the direction of a similar rulemaking.

Daily Kos has more.

Posted by Jennifer Lowe, 11:25:25 AM




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