In the News
More Soft Money Hard Law: Of “Dereliction” and “Power Grabs” And Another Year of More of the Same
By Bob Bauer
After Brad Smith of the Center for Competitive Politics took to the pages of The Wall Street Journal to criticize the IRS’s proposed rules on tax-exempt political activity, Paul Ryan of the Campaign legal Center answered in a letter to the editor. Smith had complained about an agency “power grab” cheered on by anti-speech zealots on the left. Ryan’s villain was the same—the IRS—but in this instance he depicted an agency struggling to its feet after years of “derelict” failure to police special interest misuse of the law.
CCP
Forgoing Non-Profit Status?
By Joe Trotter
Like non-profit organizations, there are some limitations to what for-profit businesses can do politically.
For example, companies must have a legitimate business interest beyond electioneering, and they cannot accept donations to directly fund advertisements. Otherwise, companies that do this could fall under the FEC’s definition of a political action committee.
However, for-profit entities can provide services, even to campaigns, without running afoul of the law. One company in particular, Catalist, pointed out that while their goal is only to break even financially, they have been able to successfully provide significant services to candidates.
Independent Groups
Bloomberg: Wal-Mart to HP Reap Worker Political Donations Through Charities
By Renee Dudley
David Tovar, a Wal-Mart spokesman, said in a telephone interview that the match has been well received by management employees and is “a great way for people who contribute to the PAC to also do good for fellow associates. This provides them an opportunity to support the company and the things we’re advocating for on behalf of our shareholders, our associates, our customers in places like D.C. and state capitals.”
USA Today: Super PACs gear up for individual Senate battles
By Fredreka Schouten
WASHINGTON — A growing number of politicians facing tough battles in November’s congressional elections will reap the benefits of unlimited political spending by super PACs dedicated solely to their campaigns.
Many of these amped-up PACs have been established by the candidates’ allies or their former aides.
Federal law prevents an individual from donating more than $2,600 to a congressional candidate for a primary or general election and prohibits candidates from accepting corporate or union money. Federal super PACs can accept unlimited amounts of corporate, union and individual donations but are required to operate independently of candidates.
SCOTUS/Judiciary
AP: Former Nevada lobbyist Harvey Whittemore trying to postpone prison time
By Scott Sonner
Lawyers appealing an ex-Nevada lobbyist’s conviction for illegally contributing to Sen. Harry Reid’s re-election say he should be kept out of prison while the U.S. Supreme Court ponders a forthcoming ruling on campaign finance laws that they say have been “twisted into a pretzel” through a series of recent court decisions.
Harvey Whittemore faced a Tuesday deadline to file formal briefs for his appeal, but the 9th U.S. Circuit Court of Appeals extended it until Jan. 30.
Candidates, Politicians, Campaigns, and Parties
Time Swampland: Hillary Clinton Campaign Rents Email List to Pro-Hillary Super PAC
By Zeke J Miller
Hillary Clinton’s 2008 presidential campaign has rented its email list to Ready for Hillary, the super PAC laying the groundwork for a potential second attempt at the White House.
On Sunday, the group emailed the Clinton list offering free “I’m Ready for Hillary” bumper stickers, but unlike dozens of recent emails from the group offering swag, this one had the return address info@hillaryclinton.com.
State and Local
California –– LA Times: Ex-employee accuses lobbying firm of directing illegal contributions
By Patrick McGreevy and Paige St. John
SACRAMENTO — A lawsuit filed Christmas Eve alleges that a prominent California lobbying firm sought influence by directing illegal contributions to dozens of politicians — including nearly a third of the Legislature.
The suit charges that Sloat Higgins Jensen and Associates tapped its roster of Fortune 500 clients to steer hundreds of thousands of dollars in checks to favored politicians — although the document fails to name any.
California –– CBS: FPPC Won’t Investigate Senator’s Connections To Calderon Donation
The Fair Political Practices Commission told Sen. Kevin de Leon, D-Los Angeles, that it will not investigate whether he was involved in the transfer of a $25,000 contribution from a Latino political action committee to a nonprofit.
The nonprofit, Californians for Diversity, is run by former Assemblyman Tom Calderon. FBI agents raided the offices of Calderon’s brother, state Sen. Ron Calderon, D-Montebello, in June as part of an investigation.
Virginia –– Washington Post: Virginia taxpayers may continue to pay legal fees for McDonnell, staff members
By Rosalind S. Helderman
Virginia taxpayers may continue to foot the bill for two private law firms representing Gov. Robert F. McDonnell and his staff in connection with state and federal criminal investigations, even after the governor leaves office Jan. 11.
A spokesman for Attorney Gen. Ken Cuccinelli II said Thursday that the appointments could continue after McDonnell’s term ends in nine days. Cuccinelli, who would ordinarily represent the governor, appointed the firms in his place after determining that he had a conflict of interest.
