Blog Posts of Amanda Adams

More Congressional Hearings to Address Citizens United

 

The Senate Judiciary committee held a hearing tilted, "We the People? Corporate Spending in American Elections after Citizens United." During the hearing opponents of the ruling argued that the case exemplified that the Roberts Court has abandoned judicial restraint. Conversely, witness Bradley Smith, described the responses to the Citizens United decision as "hysteria." Smith also caused hysteria during the hearing when he referenced Vermont legislators as "freaking out" about the decision. This incited a heated exchange between Smith and Chairman Patrick Leahy (D-VT). Leahy interrupted Smith, disagreeing with the characterization of Vermont legislators.

Substantially, the panelists somewhat agreed that it will be very difficult to pass any major legislative changes. Any new campaign finance law is likely to face a legal challenge.

According to BNA Money and Politics ($$), Democratic senators maintained that the decision "represents a major boost to corporate influence in American politics, which is deeply unpopular with their constituents."

In addition, the House Financial Services subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing which primarily focused on the issue of whether corporations should have to report their expenditures to shareholders. A member of the committee, Rep. Mike Capuano (D-MA), has introduced the Shareholder Protection Act of 2010, (H.R. 4790) requiring shareholder approval of corporate expenditures and boards of directors would have to vote on political spending over $50,000.

Again, any legislation is sure to face an uphill battle and possible future litigation. The expected measure from Sen. Chuck Schumer (D-NY) and Rep. Chris Van Hollen (D-MD) after the release last month of a summary of their proposals has yet to be introduced. CQ ($$) reports that the lawmakers are "sorting through the concerns of labor unions, nonprofit organizations and lawmakers as they try to write legislative language and line up cosponsors from both parties."

(Amanda Adams 03/11/10; 1 comment)

Advisory Council Provides Recommendations on Faith-Based and Community Organizations

 

The Chronicle of Philanthropy ($$) details the President's Advisory Council on Faith-Based and Neighborhood Partnerships' new report offering suggestions for the government in its work with charities. The panel provided a 164-page document which included recommendations to ensure that religious charities use government money only for secular activities.

The panel was split on whether houses of worship should be required to set up separate organizations to receive federal money. The report also suggests the federal government "clarify how the constitutional separation of church and state applies to charities that receive government grants and contracts." Charities are not allowed to use direct government money for "inherently religious activities" but, the council proposed that wording be changed to "explicitly" religious activities.

One of the report's recommendations dealt with the proposed Partner Vetting System (PVS), a program that OMB Watch has opposed. PVS would require grant applicants to submit detailed personal information on "key individuals" to be shared with intelligence agencies and screened against terrorist watch lists. The panel rightfully advises that the government work with nonprofits to create an alternative to PVS. "PVS as currently designed would significantly harm partnerships with local communities and compromises the safety of U.S. PVO [private voluntary organizations] personnel."

(Amanda Adams 03/11/10; 1 comment)

Outspent: An influx of Money to the U.S. Chamber of Commerce

 

The LA Times reports on the U.S. Chamber of Commerce's growing grassroots initiative, Friends of the U.S. Chamber, which "has begun to rival those of the major political parties, funded by record-setting amounts of money raised from corporations and wealthy individuals."

"The chamber has signed up some 6 million individuals who are not chamber members and has begun asking them to help with lobbying and, soon, with get-out-the-vote efforts in upcoming congressional campaigns."

According to the article, the group's successful fundraising can be attributed to the administration's legislative initiatives and the recent Supreme Court ruling that corporations may now directly advocate for the election of candidates for federal office. "Industries that are the most directly affected by Washington policies and regulations -- pharmaceuticals, for example -- have always spent lavishly on lobbying and politics. But many others have held back, deterred by concern over violating the complex laws on campaign spending and by a general sense that putting money into politics might open companies to criticism."

As predicted, corporations will increasingly contribute money to the chamber, which then produce ads targeting candidates without disclosing the identity of the donors. Inevitably, the article suggests this system "suggests a rocky road for legislation to require more transparency."

(Amanda Adams 03/09/10; 0 comments)

Localities Look to Charities for New Sources of Revenue

 

Last week, a New York Times article discussed a trend occurring nationwide, proposals to charge nonprofits fees as state and local governments search for revenue. The prospect of having to pay new taxes could have major consequences for nonprofit budgets. Some of the various suggestions to increase revenue include subjecting charities to sales taxes, and revoking property tax exemptions. For example, the Kansas House Tax Committee was considering removing sales tax exemptions for recreational activities, fundraising events, nonprofit charitable groups and religious organizations. In Hawaii, the Honolulu City Council is considering caps on the value of property tax exemptions for nonprofit property.

Nonprofits retort that such efforts would do more harm than good, and force many to cut back on services, such as mental health and emergency foster care. Like governments, charities are also facing declines in revenue.

Some charity leaders say that because so many local governments are behind on payments due to nonprofits for the social services they provide to communities, charities are actually giving a free ride to states and cities. "We’re effectively providing interest-free loans to state governments, which have been very slow to pay what they owe us, and now they're asking us to pay more,' said Lisa Maruyama, chief executive of the Hawaii Alliance of Nonprofit Organizations.'"

(Amanda Adams 03/08/10; 1 comment)

Reactions to Citizens United Persist

 

The American Constitution Society (ACS) hosted an event to discuss the Supreme Court decision in Citizens United v. Federal Election Commission. Five panelists assessed the prospects for congressional legislation. Not surprisingly, their opinions diverged on the ruling's long-term impact. There are numerous practical and constitutional issues involved in passing any of the bills introduced and it is doubtful whether or not legislators would even be able to agree on any of the proposals.

According to BNA Money and Politics ($$), Jan Baran, an attorney who represents the U.S. Chamber of Commerce said that "legislative proposals now being discussed come from congressional leaders who are clear in their intent to simply limit the scope of campaign spending that the Supreme Court has now said is constitutionally protected." James Portnoy, an attorney for Kraft Foods, said that he had "great skepticism" that any campaign finance reform legislation would be passed.

Meanwhile, Senator Chris Dodd (D-CT) has introduced a constitutional amendment to reverse the ruling, with Senator Tom Udall (D-NM) joining as a cosponsor. This is the third proposed constitutional amendment in response to Citizens United. According to Dodd's press release, the amendment "would authorize Congress to regulate the raising and spending of money for federal political campaigns, including independent expenditures, and allow states to regulate such spending at their level." Any constitutional amendment is a long shot, requiring a two-thirds vote in both the House and the Senate followed by ratification of three-fourths of the states.

On the state level, the National Conference of State Legislatures details that there are at least 23 states that currently prohibit or restrict corporate and union spending on candidate elections. Many states will now move forward to change these laws, and if not, there will likely be legal challenges. For example, in Minnesota it is illegal for corporations to try to influence elections by funding campaigns to defeat or endorse candidates. The Minnesota Chamber of Commerce is suing to make Minnesota's laws in sync with the Court decision.

USA Today reports that states nationwide "are rushing to rewrite campaign-finance laws." Bills offered in Iowa and Maryland are moving forward to require shareholder approval of political spending and to force public disclosure of corporate spending in state elections.

For more information on legislation in response to Citizens United, read this article from the latest Watcher.

(Amanda Adams 02/25/10; 1 comment)

Charities Challenge Anti-Terrorism Law

 

The Supreme Court heard arguments today (Feb. 23) in Holder v. Humanitarian Law Project, a case challenging the constitutionality of the definition of material support. Human rights and humanitarian aid charities say the law is so broad that it squelches their speech and advocacy work. The definition of material support includes services, training, expert advice, and could criminalize their work even when they have peaceful goals.

The justices agreed to take up the case after the Ninth Court of Appeals ruled in favor of the Humanitarian Law Project. The group wants to provide training in conflict resolution to the Kurdistan Workers Party and the Liberation Tigers of Tamil Eelam, both classified as terrorist organizations by the U.S.

According to SCOTUSblog, during arguments the justices raised questions about whether a distinction can be drawn among different types of support that individuals provide to terrorist organizations. For more information and background, visit the Charity and Security Network.

(Amanda Adams 02/23/10; 0 comments)

The Problem Remains Money in Politics

 

Global Integrity, an international nonprofit organization that tracks global corruption trends, released the Global Integrity Index: 2009. The report analyzed 35 countries' ability to counter corruption, and the tools available to citizens to hold the government accountable.

"Rather than examine the 'cancer' of corruption, the Index investigates the 'medicine' being used against it — in the form of government accountability, transparency, and citizen oversight." Overall, the U.S. scored 85 out of 100, and was the second least corrupt country in the study.

According to the findings, "The Obama administration's early anti-corruption efforts focused significantly on tighter restrictions around lobbying. While certainly not harmful, there are few data to suggest that increasing the transparency around lobbying activities at the federal level is the solution to corruption challenges in the United States. Rather than lobbying, Global Integrity data point to the corrupting influence of massive amounts of money in the federal elections process as one of the core drivers of corruption in the American system."

Further, the Citizens United decision, "will likely pour fuel on the fire of political corruption in the U.S. While free speech concerns loomed large in the court's decision to overturn longstanding campaign finance controls, the practical reality is that by allowing significant new inflows of private money into the U.S. political process, the court's decision may simply overwhelm an already dysfunctional Federal Elections Commission and undermine prospects for more accountable governance."

Nevertheless, the administration earned high marks for urging federal agencies to disclose information under Freedom of Information Act requests and for the Open Government Initiative. Gary Bass, executive director of OMB Watch, in a peer review section of the document stated "it will take time for Obama to overcome a longtime pattern of secrecy that has been imbedded in the federal bureaucracy. 'The culture in government is that you typically don't give out information that you don't have to.'"

According to the report, "significant progress has not been achieved in curbing corruption at the national level in the U.S." For more information on the report and how the study was conducted, click here.

(Amanda Adams 02/23/10; 0 comments)

Webcast Thursday: The Administration's Approach to Lobbyists

 

The Washington Post reports that, "President Obama is escalating his war on K Street, proposing a series of tough restrictions a year after he first issued policies aimed at tamping down the influence of lobbyists." On Thursday, Feb. 18 OMB Watch will host a webcast where panelists will discuss a review of the administration's efforts to reform lobbying and ethics during the past year. RSVP here for the webcast.

Obama has issued some of the most stringent restrictions ever seen on employing former lobbyists in executive branch agencies and the White House. Panelists will explore questions such as whether the Obama administration has thus far been successful in reducing the influence of lobbyists in Washington; if the focus on lobbyists is the right way to root out corruption; and what it means to reduce the influence of special interests on policymaking.

Tune in to the OMB Watch webcast, "The Obama Administration's Approach to Lobbyists – A One-Year Review" on Thursday, Feb. 18 at 3 p.m. Eastern Time

Location: 2040 S St., NW, Washington, DC 20009 and live on the web There's still time to RSVP for this event!

(Amanda Adams 02/16/10; 0 comments)

Letter Sent to Congress in Support of Civil Access to Justice Act

 

Over 150 national, state and local groups, including OMB Watch signed on to a letter supporting passage of the Civil Access to Justice Act (S.718 / H.R. 3764). The legislation was introduced last year to reauthorize the Legal Services Corporation (LSC) and expand access to civil legal aid.

The letter was sent to every Member of Congress and hopefully such clear support will help motivate lawmakers to prioritize the measure and move it quickly through committee. The number of co-sponsors continues to increase with twenty in the Senate and twenty-three in the House.

The most problematic restrictions on LSC grantees remain those that prevent the use of non-federal funds to advocate on behalf of the neediest of our communities. The Civil Access to Justice Act would expand access to justice to low-income populations by lifting those restrictions and helping to ensure that federally funded legal services providers are able to assist their clients in the most effective way possible.

The letter states; "Severely underfunded, LSC reports that more than half of all eligible clients who seek legal help from LSC-funded programs are turned away due to insufficient resources. Additionally, LSC-funded programs’ ability to help their clients is hampered by outdated restrictions, imposed in the mid-1990s."

(Amanda Adams 02/16/10; 0 comments)

Schumer/Van Hollen Response to Citizens United

 

Sen. Chuck Schumer (D-NY) and Rep. Chris Van Hollen (D-MD) announced a summary, presented as a "framework," of the legislation they plan to introduce to curtail the Supreme Court's ruling in Citizens United v. Federal Election Commission. Their extensive response includes a ban on expenditures by foreign interests, as well as corporations that have federal contracts and those that received funds through the Troubled Asset Relief Program (TARP). Corporations also include 501(c)(4), (c)(5), and (c)(6) organizations. They call for new disclosure rules on corporate spending, both to the government and to shareholders.

Specific provisions in the Schumer-Van Hollen proposal include :

  • Prohibiting corporations from spending money on U.S. elections if they have a foreign ownership of 20% or more, a majority of their board of directors is foreign principals, or their U.S. operations are under the control of a foreign entity.
  • Banning government contractors from making political expenditures, including TARP recipients.
  • Requiring CEOs to appear on camera in political ads to say they "approve this message."
  • Corporations that want to spend money on campaign related ads would have to set up separate "political broadcast spending" accounts. All funds spent or transferred from the accounts must be publicly reported to the Federal Election Commission.
  • All political expenditures made by a corporation have to be disclosed within 24 hours on its website, and disclosed to shareholders in quarterly reports and in the corporation's annual report.
  • Requiring federally registered lobbyists to disclose information on all campaign expenditures over $1,000.
  • Banning coordination between a corporation and candidates on ads referencing Congressional candidates within 90 days of the primary through the general election. For all federal elections, at any time, coordination would be prohibited when the ads promote, support, attack or oppose a candidate.

According to CQ, during a press event, Schumer "pledged that the disclosure proposals in the bill will expose corporate and union financiers using pass-through political organizations and 'AstroTurf' lobbying outfits to obscure their political outlays. 'We will drill down so that the ultimate funder of the expenditure is disclosed,' he said." Reportedly Schumer and Van Hollen will introduce their legislation the week after the Presidents Day recess.

(Amanda Adams 02/12/10; 0 comments)