Thursday, September 11, 2008

FEC to Vote on Proposed Bundling Rule

The Federal Election Commission (FEC) will hold a public hearing Sept. 17 on proposed bundling rules for reporting contributions bundled by lobbyists, lobbying organizations, and the political action committees of lobbyists. The FEC will hear from some of those who commented in writing on the proposed rule issued Nov. 2007.

The Honest Leadership and Open Government Act called on the FEC to write a rule on bundling, requiring for the first time disclosure of campaign funding that is collected by a lobbyist from other contributors and passed along to a candidate. An important component is whether the law will cover only registered lobbyists or all employees of organizations that lobby Congress, including senior officials. The commission was not able to follow through with the rulemaking process because of the controversy that ensued over confirming new FEC commissioners.

The new rule is not expected to be written in time for the public to see bundling activity for this election, but may provide increased disclosure in future elections. According to BNA Money and Politics ($$), Chairman Donald "McGahn said that simple math dictated that there were not enough days left in the 2008 campaign season for the bundling rule to be completed in time. Even if the FEC promptly finished the rulemaking process, the law that calls for bundling disclosure requires a three-month waiting period before a new rule could actually go into effect."