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Advocacy Blog
Thursday, October 11, 2007
Democracy 21 Asks FEC for a Statement of Policy on 527s
Democracy 21 President Fred Wertheimer has asked the Federal Election Commission (FEC) to issue a clear notice so that 527 groups understand that the organization and its funders could face penalties in the future. The message from the FEC has been that the recent settlements will provide sufficient guidance to others thinking of carrying out similar activities in the future.
The Democracy 21 letter states; "We strongly urge the FEC to issue a Statement of Policy that provides clear notice that 527 groups that engage in the kind of illegal activities the FEC found to have occurred in the 2004 election, and the individuals who organize and manage these groups, including major donors who play such a role, will face substantial penalties, commensurate with the size of the violations, and that such violations face being treated by the FEC as 'knowing and willful' violations."
According to BNA Money and Politics ($$), the Wisconsin Right to Life (WRTL) case has been refered to in ongoing litigation challenging a regulation that the FEC has relied upon in its settlements with Section 527 groups. The rule says the FEC can regulate organizations if they solicit money based on an appeal to support or oppose particular federal candidates, and groups with a federal political action committee (PAC) must finance their activities with at least 50 percent FEC-regulated "hard money." The rule was challenged by Emily's List, a federal PAC that also has a 527 geared towards state and local elections. In recent court filings, Emily's List attorney said the WRTL ruling prevents the FEC from regulating the organization's state and local activities just because its messages included references to federal candidates.
A filing by the FEC said the commission has wide latitude to regulate organizations involved in federal elections and that the WRTL case had nothing to do with Emily's List. The Supreme Court ruling involved corporate and labor union funding of "grass roots lobbying" messages that referred to candidates but were intended to influence legislation or policy, not elections.
Posted by Amanda Adams
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