Archive

Posts Tagged ‘campaign finance’
February 2nd, 2016 at 3:10 pm
CFIF Scores Victory in Campaign Finance Case
On January 21, 2016, a three-judge panel on the U.S. Court of Appeals for the D.C. Circuit unanimously ruled in favor of the Center for Individual Freedom (“CFIF”) in Van Hollen v. FEC, a campaign finance case addressing free speech and compelled disclosure.

The decision marks the second time in the case that the Court of Appeals reversed a decision by District Court Judge Amy Berman Jackson, who twice struck down a Federal Election Commission (“FEC”) rule requiring non-profit organizations that spend more than $10,000 per year on electioneering communications to disclose only donors who give “for the purpose of furthering electioneering communications.”

Congressman Christopher Van Hollen (D-Maryland) brought suit against the FEC, hoping to force organizations engaged in electioneering communications to disclose all donors who contribute over a certain amount, regardless of whether they intended for their donations to fund such speech.

Anticipating that the FEC, due to its split membership, might not appeal any adverse decision at the district court level, CFIF intervened to protect free speech interests and to preserve a right to appeal.

The Court of Appeals’ decision, authored by Judge Janice Rogers Brown and joined by Judges David Sentelle and Raymond Randolph, reversed the district court and upheld the FEC rule as being consistent with the requirements of Chevron and the Administrative Procedure Act.  The court also acknowledged the burdens that compelled disclosure impose on free speech and association guaranteed by the First Amendment.

“By affixing a purpose requirement on BCRA’s disclosure provision, the FEC exercised its unique prerogative to safeguard the First Amendment when implementing its congressional directives,” wrote Judge Brown. “Its tailoring was an able attempt to balance the competing values that lie at the heart of campaign finance law.”

CFIF was represented in the case by Thomas W. Kirby, Jan Witold Baran, Caleb P. Burns and Samuel B. Gedge of Wiley Rein, LLP.

To read the full entire D.C. Circuit Court decision, click here (PDF).

July 16th, 2015 at 5:06 pm
Wisconsin’s “John Doe” Prosecutions Come to an Ignominious End
Posted by Print

One of the more disturbing stories of political censorship of the past half-decade just came to a close in Wisconsin. The state’s Supreme Court ruled 4-2 on Thursday that a section of Wisconsin’s campaign finance law is “unconstitutionally overbroad and vague.” Moreover, the court said, a special prosecutor appointed by Milwaukee District Attorney John Chisolm to probe allegedly unlawful coordination between Governor Scott Walker and independent activist groups during the 2011 and 2012 statewide recall campaigns ended up investigating perfectly legal activities.

In short, the political fishing expedition against Badger State conservatives is finished.

Here are a few backgrounders on the investigation, which made prime targets of Wisconsin Club for Growth executive director Eric O’Keefe and at least 28 other activist groups.

A (very) short version: In 2013, the Milwaukee DA’s office and special prosecutor Francis Schmitz began hitting activists with subpoenas demanding everything from emails and memos to donor lists. As one judge would later put it, Schmitz’s subpoenas were “so extensive that they make the fruits of the legendary Watergate break-in look insignificant by comparison.” Although the subpoenas just happened to coincide with the beginning of Walker’s reelection campaign for governor, prosecutors denied any political motivation for the probe. (What? Did you think they would affirm a political motive?)

O’Keefe and Wisconsin Club for Growth sued Schmitz, et. al., contending the state’s investigation violated their First Amendment rights. A federal court last year agreed, halting a probe that had involved—among other things—SWAT teams conducting pre-dawn raids on citizens’ homes as if they were no different than drug peddlers or mob capos. Such abuses were made possible by Wisconsin’s “John Doe” law, which allows prosecutors to operate in secret—and thus without any meaningful public scrutiny or accountability.

As the Milwaukee Journal-Sentinel reports, “Large sections of court filings have been blacked out—which is highly unusual” because of the law, which lets prosecutors the power to compel people hand over documents and give testimony while forbidding them from speaking about the investigation with anyone except their lawyers. Such proceedings may be common in national security and certain criminal cases, but applying the law to a campaign-finance law investigation smacked of political persecution—which the court recognized.

Writing for the majority, Justice Michael Gableman blasted Schmitz’s conduct of the investigation and made a vigorous defense of political liberty. Here’s the key passage from the ruling:

It is utterly clear that the special prosecutor has employed theories of law that do not exist in order to investigate citizens who were wholly innocent of any wrongdoing. In other words, the special prosecutor was the instigator of a ‘perfect storm’ of wrongs that was visited upon the innocent Unnamed Movants and those who dared to associate with them. It is fortunate, indeed, for every other citizen of this great State who is interested in the protection of fundamental liberties that the special prosecutor chose as his targets innocent citizens who had both the will and the means to fight the unlimited resources of an unjust prosecution. Further, these brave individuals played a crucial role in presenting this court with an opportunity to re-endorse its commitment to upholding the fundamental right of each and every citizen to engage in lawful political activity and to do so free from the fear of the tyrannical retribution of arbitrary or capricious governmental prosecution. Let one point be clear: our conclusion today ends this unconstitutional John Doe investigation.(Emphasis added.)

Although Thursday’s ruling is a triumph for the First Amendment, a peculiar censorious instinct remains alive and well among Madison’s progressive elite. In dissent, Justice Shirley Abrahamson wrote her colleagues’ theme music ought to be “Anything Goes.

“The majority opinion adopts an unprecedented and faulty interpretation of Wisconsin’s campaign finance law and of the First Amendment,” Abrahamson wrote. “In doing so, the majority opinion delivers a significant blow to Wisconsin’s campaign finance law and to its paramount objectives of ‘stimulating vigorous campaigns on a fair and equal basis’ and providing for ‘a better informed electorate.'” It’s hard to see how pre-dawn raids and secret proceedings lead to “fair and equal” campaigns or a “better-informed” electorate, rather than a chilled political climate where dissenters from received partisan wisdom risk incurring the wrath of zealous prosecutors.

Wisconsin’s legislature is turning its attention to overhauling the state’s campaign-finance laws. In particular, some Republicans would like to do away with the “John Doe” provisions. Eliminating arbitrary and capricious rules from the statute books shouldn’t be a partisan matter. Wisconsin has seen what a political prosecution looks like. Avoiding a repeat of such abuses would seem to be a cause both parties could support.

October 1st, 2012 at 6:21 pm
Bureaucrats, Techies, and Higher Ed: Behold the Obama Coalition
Posted by Print

Interesting new data from Open Secrets, which tallies the top donors to the presidential candidates (note: these are not corporate donations, but money from PACs, as well as from individuals and their families associated with these institutions). Here are Barack Obama’s top five contributors:

1.    University of California — $703,781

2.    Microsoft — $544,445

3.    Google Inc — $526,009

4.    Harvard University — $431,860

5.    U.S. Government — $396,550

Peruse the top 20 and this trend holds. In addition to Harvard and the University of California system, schools like Stanford, Columbia, the University of Chicago, and the University of Michigan also populate the list. On the tech side, Microsoft and Google are joined by IBM (there are also a few big media companies — Time Warner and Comcast). And in government, the State Department alone is responsible for over $200,000 in contributions.

Higher ed and the permanent governing class in Washington are so thoroughly suffused with liberalism that their inclinations should be taken as a given. But conservatives would be foolish to give up on Silicon Valley, where the regnant mores are sufficiently libertarian for Republicans to win converts through a sustained emphasis on free markets (it’s no coincidence that Ron Paul was a huge hit there).

The tech industry’s lifeblood is freedom: freedom to experiment, collaborate, and innovate — which means sooner or later they should realize that the party of 2,000 page laws and dictatorial bureaucracy is not for them. But should doesn’t necessarily mean will. One need only look to African-American voters to realize that political parties can win demographics they consistently neglect if the other side doesn’t even bother competing. The GOP (quite literally) can’t afford to let that happen in Silicon Valley.

June 18th, 2012 at 4:10 pm
Scenes from a McCain Presidency
Posted by Print

The margin of victory in the 2008 presidential race was so wide — and the election of Barack Obama so historic — that we rarely stop to imagine what it would have been like were we now well into the third year of John McCain’s presidency.

Needless to say, we’d be better off on a wide variety of fronts. McCain, a consistent fiscal hawk, not only wouldn’t have indulged in a record-setting debt binge like Barack Obama, he may well have made a serious run at entitlement reform. And as a stalwart advocate for a strong national defense, it seems overwhelmingly obvious that McCain would have taken a harder line with Iran than the “diplomacy at all costs” approach embraced by the Obama Administration.

In other areas, however, McCain would have been an utter nightmare. Can anyone imagine how one of the namesakes of the McCain-Feingold political speech law would have reacted to the Supreme Court’s Citizens United decision? Based on this report from the New York Times, it may have been even worse than Obama:

In his 2010 State of the Union address, President Obama roundly criticized the Supreme Court’s Citizens United decision, arguing that it had “reversed a century of law.” That practically sounds like a hymn of praise compared to what Senator John McCain had to say on “Meet the Press” this weekend. He called Citizens United: “arrogant, uninformed, naïve.” …

“I think there will be scandals associated with the worst decision of the United States Supreme Court in the 21st century,” he said. Referring to the justices on the Court, he added, “I just wish one of them had run for county sheriff.”

This was on the heels of McCain criticizing casino magnate Sheldon Adelson’s contributions to Republican causes, saying that the fact that he owns a gaming facility in Macau could mean that “foreign money is coming into American political campaigns.”

This serves as one more reminder that, as McCain himself essentially told us four years ago, he’s basically an economic illiterate. Someone with foreign business interests donating to a political campaign is subversive of the integrity of domestic elections? Does Merrill Lynch, McCain’s biggest donor in 2008, only invest in domestic entities? Does Fed-Ex, another major donor, only ship within the 50 states? Since the obvious answer is no, how was McCain able to escape the corrupting influence of foreign money?

The point here is not to hammer those companies; quite the contrary. They were completely within their rights to give political donations, as is Adelson. The point is that McCain’s fetish for regulating political speech is both hypocritical and inimical to a free society. Giving government the power to regulate what free citizens may say about the government (and when and where they may say it) is a fundamental threat to liberty.

On this one front, at least, we can be happy that McCain was never able to bring the powers of the White House to bear.

May 9th, 2012 at 1:06 pm
SuperPACMediaMOGUL Stephen Colbert Attacks CFIF (which made our dog cry)
Posted by Print
February 9th, 2012 at 8:13 am
Ramirez Cartoon: Obama’s Campaign Finance Hypocrisy
Posted by Print

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

October 18th, 2011 at 12:57 am
Obama’s Campaign Finance Hypocrisy

Once upon a time, candidate Obama promised to participate in the federal campaign finance program in a sop to free speech restrictionists.  Of course, he reneged as soon as he could, claiming that since the system is “broken” it was his right to collect as much money as he could  from willing donors.

Fast-forward to today, and it looks like President Obama has long forgotten his former aversion to privately financed campaigns:

[The President] can also raise large contributions for the Democratic National Committee — topping out at $30,800 per donor rather than the $5,000 limit on contributions to candidates — that are helping finance the party’s broader efforts to help Democrats up and down the ballot. During the last three months, the committee has already transferred funds totaling more than $1.3 million to Democratic organizations in all 50 states and the District of Columbia, according to the party’s filings.

I don’t begrudge any candidate for choosing a free(r) market approach to campaign finance.  What’s galling in Obama’s case, though, is that once again we have an example of how brazenly opportunistic he is when it comes to basic principles.  Whether it’s promising people they can keep their health insurance after Obamacare or campaigning as a post-partisan then saying Republicans want folks to drink dirty water, the man seems incapable of keeping his word. 

The joke on some politicians is a truth applied to the president: you know he’s lying when his lips are moving.

July 22nd, 2011 at 12:54 pm
John Edwards Campaign Experiencing a Different Kind of Transparency

Roll Call reports that former Democratic presidential candidate John Edwards has been ordered by the Federal Election Commission to repay nearly $2.3 million in misused matching funds.

The FEC’s order follows a legally required audit of Edwards’ campaign after the candidate took taxpayer money in return for capping his expenditures.  It turns out Edwards exceeded the cap and violated the law.  (For those familiar with Edwards’ post-2008 history, it’s no surprise his fiscal excess rose to the level of his personal excess.)

What does this have to do with campaign finance law?  Plenty.

To supporters, one of the goals of campaign finance laws is to increase the amount of transparency in who funds a candidate.  That goal is much easier to achieve when the hook of federal auditing is swallowed along with matching funds.  Like most liberals, John Edwards is relentlessly supportive of increasing government oversight on just about everything.  Now, the very transparency and oversight he championed for others is unearthing all kinds of sordid details he would surely prefer stay out of view.

Maybe Edwards’ inner libertarian will awaken and he’ll become an advocate for less government and more privacy.  If nothing else, he would be well advised in the future to practice a lot more discretion.

April 25th, 2011 at 12:50 pm
Obama’s Gray Davis Moment

Along with lying about the size of the budget deficit and imposing a steep rise in the car tax, California Governor Gray Davis did something else to guarantee his historic recall: impose a pay-to-play “donation” schedule on groups wanting to do state business.  Want a permit from the Coastal Commission?  How about a government contract to manage welfare cases?

For Davis & Co. there was only one question: How much did you contribute to my campaign?

Former Federal Elections Commissioner Hans von Spakovsky obtained a draft executive order that would implement the substance of the Disclose Act, a bill promising to chill corporate political speech before it was defeated in Congress last year.

According to von Spakovsky, the proposed executive order claims to “increase transparency and accountability,”

Yet this proposed Executive Order would require government contractors to disclose:

(a) All contributions or expenditures to or on behalf of federal candidates, parties or party committees made by the bidding entity, its directors or officers, or any affiliates or subsidiaries within its control.

(b) Any contributions made to third party entities with the intention or reasonable expectation that parties would use those contributions to make independent expenditures or electioneering communications.

In layman’s terms, that means the federal government wants to know which political groups you’ve been giving money to before it will consider awarding a government contract.

In an editorial today, the Wall Street Journal (subscription required) notes that the order exempts federal employee labor unions and the recipients of federal grants, both dues paying members of the Democratic Party.

At the moment, the Right is deploring the president’s last-ditch effort to silence dissenting political views after losses in the courts, Congress, and the FEC.  (Especially since Obama’s executive order specifically targets only those entities most likely to disagree with him.)

However, the Left should be leery of this latest version of gangster government.   There’s only a hair’s breadth of difference between punishing “bad” political expenditures, and demanding “good” ones.  As the deposed Gray Davis showed in California, a government nosy enough to punish its enemies, is a government powerful enough to tax its friends.