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The Republican presidential primaries are being largely controlled, at least from a financial standpoint, by a very few extraordinarily wealthy individuals, according to research provided by former Treasury Secretary Robert Reich and the news organization ProPublica. In January 2012, the campaign of frontrunner Rick Santorum (R-PA) was almost entirely funded by billionaires William Dore and multi-millionaire Foster Friess (see February 16-17, 2012), who between them supplied over three-quarters of the $2.1 million donated to Santorum’s “super PAC” “Red White and Blue Fund.” Dore is the president of a Louisiana energy corporation and Friess is a fund manager in Wyoming. Of the $11 million raised by the super PAC supporting Newt Gingrich (R-GA), $10 million came from Sheldon Adelson and his wife, Miriam. Adelson runs a casino ownership group in Las Vegas. Most of the rest of Gingrich’s funding came from Texas billionaire Harold Simmons. PayPal co-founder Peter Thiel provided $1.7 million of the $2.4 million raised in January by the super PAC for Ron Paul (R-TX). As for Mitt Romney (R-MA), himself a multi-millionaire, his super PAC “Restore Our Future” raised $6.6 million in January. Almost all of it came from 40 donors, including hedge fund billionaires Bruce Kovner, Julian Robertson (the largest donor at $1.25 million), and David Tepper, hotel owners J.W. Marriott and Richard Marriott, and Hewlett-Packard CEO Meg Whitman. The lobbying firm FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011) has contributed over $1.4 million to various Republican candidates. Reich writes, “Whoever emerges as the GOP standard-bearer will be deeply indebted to a handful of people, each of whom will expect a good return on their investment.” Reich goes on to cite American Crossroads’s “super PAC” Crossroads GPS, founded by Republican political consultant Karl Rove, and its lineup of corporate moguls contributing hundreds of millions of dollars. The lineup of Crossroads supporters includes Charles and David Koch (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011, April 2010 and After and October 4, 2011), and Harold Simmons, owner of Contran Corporation, who has contributed $10 million to the organization. Reich says there is no legal way to know exactly how much the Kochs and their fellows have contributed: “The public will never know who or what corporation gave what because, under IRS regulations, such nonprofit ‘social welfare organizations’ aren’t required to disclose the names of those who contributed to them.” The previous limit of $5,000 per year per individual was erased by the 2010 Supreme Court Citizens United v. Federal Election Commission decision, a decision Reich calls “grotesque.” Reich writes: “In a sense, Santorum, Gingrich, Paul, and Romney are the fronts. Dore et al. are the real investors.… Now, the limits are gone. And this comes precisely at a time when an almost unprecedented share of the nation’s income and wealth is accumulating at the top. Never before in the history of our Republic have so few spent so much to influence the votes of so many.” [The Atlantic, 2/2/2012; Salon, 2/21/2012; ProPublica, 2/21/2012] President Obama’s super PAC, “Priorities USA Action,” has received $2 million from Hollywood mogul Jeffrey Katzenberg and another $1 million from the Service Employees International Union’s Committee on Political Education (SEIU COPE). However, Priorities USA has raised relatively paltry sums in comparison to the monies raised by the Republican super PACs, according to a Reuters report. Obama and his re-election campaign had originally distanced themselves from the super PAC operating in their name, in part because they disapprove of the Citizens United decision and the influence of super PACs in electoral politics. Since the Obama campaign officially endorsed the organization, donations have risen. Obama campaign advisor David Axelrod says that Obama “believes that this is an unhealthy development in our political process, but it is a reality of the rules as they stand. This was not a quick decision, but he also feels a responsibility to win this election. There’s a lot hanging on this beyond him.” By the end of January, Priorities USA had raised $4.2 million. In contrast, Romney’s “Restore Our Future” had raised $36.8 million by the end of last month. [Reuters, 2/2012; ProPublica, 2/21/2012] Partly in response to reports of billionaires’ influence on the 2012 elections, comedian Bill Maher will announce his donation of $1 million to the Obama super PAC. Maher will tell an audience that an Obama victory over any of the Republican contenders is “worth a million dollars” and will describe the donation as “the wisest investment I think I could make.” [Los Angeles Times, 2/24/2012] Friess is often described in the press as a “billionaire,” but both Friess and Forbes magazine say that appellation is inaccurate. [Forbes, 2/8/2012]

Entity Tags: Republican Party, Richard Marriott, Rick Santorum, Peter Thiel, Robert Reich, William Dore, Service Employees International Union Committee on Political Education, Newt Gingrich, Willard Mitt Romney, Sheldon Adelson, Ron Paul, Miriam Adelson, ProPublica (.org), Karl C. Rove, Charles Koch, American Crossroads, David Axelrod, American Crossroads GPS, Meg Whitman, Bill Maher, Barack Obama, David Koch, David Tepper, Foster Friess, Julian Robertson, Jeffrey Katzenberg, Bruce Kovner, J. W. (“Bill”) Marriott, FreedomWorks, Harold Simmons

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Sheldon Adelson, the owner of casinos in Nevada and Southeast Asia, says he may contribute up to $100 million to the presidential campaign of Newt Gingrich (R-GA). Adelson has already given some $11 million to Gingrich’s campaign, bolstering Gingrich’s otherwise-floundering efforts to become the Republican presidential nominee (see December 19, 2011, January 6, 2012, and January 23, 2012). He mocks the idea that he is trying to personally buy the presidential election for Gingrich, saying of his detractors: “Those people are either jealous or professional critics.… They like to trash other people. It’s unfair that I’ve been treated unfair—but it doesn’t stop me. I might give $10 million or $100 million to Gingrich.” Adelson, one of the world’s richest people, is well able to afford the largesse: according to Forbes magazine, Adelson’s $11 million gift to Gingrich only amounts to 0.044 percent of his fortune. But Adelson says he does not believe in the wealthy trying to influence US politics. “I’m against very wealthy people attempting to or influencing elections,” he says. “But as long as it’s doable I’m going to do it. Because I know that guys like [George] Soros (see January - November 2004) have been doing it for years, if not decades. And they stay below the radar by creating a network of corporations to funnel their money. I have my own philosophy and I’m not ashamed of it. I gave the money because there is no other legal way to do it. I don’t want to go through 10 different corporations to hide my name. I’m proud of what I do and I’m not looking to escape recognition.” Adelson, whose net worth has increased more than any other American’s during the Obama administration, says he wants to see President Obama removed from office for economic reasons. “What scares me is the continuation of the socialist-style economy we’ve been experiencing for almost four years,” he says. “That scares me because the redistribution of wealth is the path to more socialism, and to more of the government controlling people’s lives. What scares me is the lack of accountability that people would prefer to experience, just let the government take care of everything and I’ll go fish or I won’t work, etc.… US domestic politics is very important to me because I see that the things that made this country great are now being relegated into duplicating that which is making other countries less great.… I’m afraid of the trend where more and more people have the tendency to want to be given instead of wanting to give. People are less willing to share. There are fewer philanthropists being grown and there are greater expectations of the government. I believe that people will come to their senses and not extend the current administration’s quest to socialize this country. It won’t be a socialist democracy because it won’t be a democracy.” He refuses to say whether he would support another Republican candidate if Gingrich fails to secure the nomination, though he admits: “The likelihood is that I’m going to be supportive of whoever the candidate is. I just haven’t decided that yet and will wait to see what happens.” Adelson, whose Gingrich donations went mostly for negative ad campaigns against fellow Republican Mitt Romney (see December 19, 2011), adds: “I don’t believe in negative campaigning. I believe in saying that my opponents are very good people and I’m confident a lot of them would do a good job, but I would do a better job, and here’s why. Money is fungible, but you can’t take my money out of the total money you have and use it for negative campaigning.” Adelson denies that his money went towards the negative campaign ads that helped Gingrich win over Romney in South Carolina, saying: “That’s what everybody says, but that doesn’t mean it’s true. Most of what’s been written about me in this is untrue.” [Forbes, 2/21/2012]

Entity Tags: Obama administration, George Soros, Newt Gingrich, Willard Mitt Romney, Sheldon Adelson

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

A 2012 Vermont town meeting comes to order.A 2012 Vermont town meeting comes to order. [Source: Vermont Public Radio]Fifty-three Vermont towns and communities pass resolutions today urging Congress to amend the US Constitution to keep wealthy special interests from having an undue influence in politics. Today is Town Meeting Day across Vermont. Supporters want an amendment to invalidate the 2010 Citizens United decision that allows corporations and labor unions to spend unlimited amounts of money in political campaigns (see January 21, 2010). State Senator Virginia Lyons says while the process of amending the Constitution “is a long one… if we don’t do this we stand to lose a great deal more.” New York City (see January 4, 2012), Los Angeles (see December 6, 2011), Portland, Maine (see January 18, 2012), Boulder, Colorado, Madison, Wisconsin, Corvallis, Oregon, and other towns and cities have adopted similar resolutions. [NECN News, 3/7/2012; Think Progress, 3/7/2012] Several efforts have been made to introduce such an amendment (see September 20, 2011, November 23, 2010, November 1, 2011, November 18, 2011, and December 20, 2011).

Entity Tags: Virginia Lyons

Category Tags: Campaign Finance

Author and political science professor Richard Hasen provides data showing that the Supreme Court’s 2010 Citizens United decision (see January 21, 2010) is directly responsible for a huge rise in corporate “outside” spending on behalf of political campaigns. Recent arguments in defense of the decision have said that “super PACs,” the “independent” political entities that take corporate, labor union, and individual donations for the purpose of making television ads in support of, or opposition to, a particular candidate or party (see March 26, 2010, June 23, 2011, November 23, 2011, January 4, 2012, January 4, 2012, and February 20, 2012) were not created by the Court’s decision, and therefore Citizens United cannot be held responsible for the enormous surge in spending since the decision was rendered. The arguments equate older “527” organizations (see 2000 - 2005, March 2000 and After, and June 30, 2000) and the enormous donations made on their behalf (see January - November 2004) with the activities of super PACs after the Citizens United decision. “The purpose of the drumbeat appears to be to insulate the Supreme Court from further criticism of the Frankenstein’s monster they’ve created,” Hasen writes. He shows that the two types of organizations—527s and super PACs—are quite different. “It is true that before Citizens United people could spend unlimited sums on independent advertising directly supporting or opposing candidates,” Hasen explains. “But that money had to be spent by the individual directly. It could not be given to a political action committee, which had an individual contribution cap of $5,000 and could not take corporate or union funding. In many cases, wealthy individuals did not want to spend their own money on advertising, which would say, ‘Paid for by Sheldon Adelson’ or ‘Paid for by George Soros,’ so fewer of these ads were made. The only way to avoid having your name plastered across every ad was to give to the 527s, which claimed they could take unlimited money from individuals (including, sometimes, corporate and labor union money) on grounds that they were not PACs under the FEC’s definition of PACs. These organizations were somewhat successful, but a legal cloud always hung over them.” After Citizens United, courts and the Federal Election Commission ruled that super PACs could collect unlimited sums from corporations, unions, and individuals for unlimited independent spending. Hasen writes: “The theory was that, per Citizens United, if independent spending cannot corrupt, then contributions to fund independent spending cannot corrupt either. (I am quite critical of this theory about corruption, but that’s besides the point here.) So what was once of questionable legality before the court’s decision was fully blessed after Citizens United.” Using data from the Center for Responsive Politics and its OpenSecrets (.org) Web site, Hasen compares spending during presidential election years.
bullet 1992: Wealthy individuals, organizations, and corporations are allowed to spend unlimited sums (see January 30, 1976). Outside spending in that campaign, up through early March 1992, was about $1.5 million.
bullet 2000: The law remains essentially unchanged. By March 2000, outside spending was around $2.6 million.
bullet 2004: With the advent of “527” groups, by March 2004, outside spending rose to $14 million.
bullet 2008: Under similar conditions as 2004, by March 2008, outside spending rose to $37.5 million.
bullet 2012: In the first presidential campaign year after the Citizens United decision, spending as of early March 2012 is over $88 million.
2012 outside spending is at 234 percent of 2008 spending, and 628 percent of 2004 outside spending. Hasen writes, “If this was not caused by Citizens United, we have a mighty big coincidence on our hands.” Hasen expects outside spending to rise dramatically once the Republican primary is concluded and the presumptive Republican nominee begins campaigning against President Obama. “Wait until the super PACs and other organizations start raising their unlimited sums for the general election,” Hasen warns. “Further, lots of groups are now using 501(c) organizations rather than super PACs for their campaign spending, in an effort to hide their donors.” Data from the Center for Responsive Politics shows that during the 2010 midterm elections, spending from groups that used the law to hide their donors rose from 1 percent in 2006 to 47 percent. Moreover, “501(c) non-profit spending increased from 0 percent of total spending by outside groups in 2006 to 42 percent in 2010.” And 72 percent “of political advertising spending by outside groups in 2010 came from sources that were prohibited from spending money in 2006.” The record-breaking spending in the 2008 presidential election—$301 million—was eclipsed in the first post-Citizens United election, the 2010 midterms, when corporate and other outside spending topped out at $304.6 million. Hasen writes: “It was an incredible number for a midterm election season. Why did that happen? Citizens United was decided early in 2010.” [Slate, 3/9/2012]

Entity Tags: Sheldon Adelson, Federal Election Commission, Center for Responsive Politics, Barack Obama, George Soros, US Supreme Court, Richard L. Hasen

Category Tags: Campaign Finance

Kenneth Griffin.Kenneth Griffin. [Source: Start a Hedge Fund (.com)]Billionaire hedge fund investor Kenneth Griffin tells a Chicago reporter that he does not believe the extraordinarily wealthy wield enough political influence in America, and says that they must step up to stop America’s “drift” towards Soviet-style “socialism.” Griffin, alone and in conjunction with his wife Anne, has given $150,000 to Restore Our Future, the super PAC that supports Mitt Romney (see June 23, 2011). He has also given over $560,000 to the Republican Governors Association and $300,000 to American Crossroads, the advocacy organization founded by Republican strategists Ed Gillespie and Karl Rove. The Griffins have been heavy Republican donors in previous election cycles, and have given around $1.5 million to Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization founded and sponsored by the billionaire oil magnates Charles and David Koch. Of his contributions to AFP, he explains: “Charles and David Koch are huge advocates for free markets (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). I have a tremendous respect for their intellectual and financial commitment to embracing a set of economic policies that will give us global competitiveness.… I share their fundamental belief that economic freedom is core to the ethos of our country. It’s the idea that any person can pursue their dreams, whether it’s starting a business or who they choose to work for.” Asked, “Do you think the ultrawealthy have an inordinate or inappropriate amount of influence on the political process?” Griffith replies: “I think they actually have an insufficient influence. Those who have enjoyed the benefits of our system more than ever now owe a duty to protect the system that has created the greatest nation on this planet. And so I hope that other individuals who have really enjoyed growing up in a country that believes in life, liberty, and the pursuit of happiness—and economic freedom is part of the pursuit of happiness—[I hope they realize] they have a duty now to step up and protect that.… At this moment in time, these values are under attack. This belief that a larger government is what creates prosperity, that a larger government is what creates good [is wrong]. We’ve seen that experiment. The Soviet Union collapsed. China has run away from its state-controlled system over the last 20 years and has pulled more people up from poverty by doing so than we’ve ever seen in the history of humanity. Why the US is drifting toward a direction that has been the failed of experiment of the last century, I don’t understand. I don’t understand.” Asked if he believes he should continue to be allowed to make unlimited donations on behalf of candidates (see January 21, 2010), he answers: “In my opinion, absolutely. Absolutely. The rules that encourage transparency around that are really important.… My public policy hat says transparency is valuable. On the flip side, this is a very sad moment in my lifetime. This is the first time class warfare has really been embraced as a political tool. Because we are looking at an administration that has embraced class warfare as being politically expedient, I do worry about the publicity that comes with being willing to both with my dollars and, more importantly, with my voice to stand for what I believe in (see July 20, 2011).… I live in financial services, and every bank in the United States is really under the thumb of the government in a way it’s never been before. And that’s really worrisome to me, as someone who’s willing to say, ‘Wait, we need to step back and try to push government outside the realm of every dimension of our lives.’” [Think Progress, 3/10/2012; Chicago Tribune, 3/11/2012]

Entity Tags: David Koch, American Crossroads, Americans for Prosperity, Charles Koch, Republican Governors Association, Willard Mitt Romney, Kenneth Griffin, Anne Griffin, Restore Our Future

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

The liberal news Web site Think Progress cites the two-year anniversary of the SpeechNow.org v. Federal Elections Commission ruling (see March 26, 2010), which allowed the creation of “super PACs,” or “independent expenditure” organizations. Think Progress writes, “Combined with the unlimited corporate expenditures enabled by the Supreme Court’s earlier Citizens United decision (see January 21, 2010), this case brought the campaign finance system to where it is now: more than $80 million spent already this cycle by super PACs and more than two-thirds of their funding coming from just 46 rich donors.” $67 million of the $80 million spent so far comes from 46 extraordinarily wealthy citizens. Almost all of them are owners and/or senior executives of oil and energy companies, hoteliers, and financial executives. Almost all are white and male. And almost all of them contribute to conservative and Republican-supporting groups (see February 21, 2012). John Dunbar of the Center for Public Integrity says, “We’re looking at a singularly weird phenomenon.” The super PAC supporting Republican presidential candidate Mitt Romney (R-MA), himself a former financial services CEO, is primarily funded by Wall Street executives, mostly private equity and hedge fund executives. One major Romney contributor, hedge fund manager John Paulson, has contributed $1 million. Paulson made enormous profits in 2008 by investing funds in ventures based on the mortgage industry collapse. Viveca Novak of the Center for Responsive Politics says, “The financial sector is one where there’s a lot of money, and it’s a sector with which Romney is very familiar, so it’s not surprising that it would be a big source of contributions.” Other Republican candidates such as Newt Gingrich (R-GA), Rick Santorum (R-PA), and Ron Paul (R-TX) also garner big contributions from billionaires. Gingrich is primarily funded by casino owner Sheldon Adelson, who makes much of his money in Las Vegas and China’s Macau. Paul has the backing of billionaire Peter Thiel, a Silicon Valley venture capitalist, and Santorum is primarily supported by billionaire Foster Friess (see February 16-17, 2012)—arguably all three candidates’ campaigns are being supported by single donors who decide whether their campaigns will continue by virtue of granting or withholding donations. Attorney Paul S. Ryan of Campaign Legal Center says: “We’ve had a small group of donors maintain the viability of certain candidates. It’s an Alice in Wonderland situation. It defies logic.… American elections are funded by a very narrow range of special interests, and that has the effect of making our democracy look a lot more like a plutocracy.” Thomas Mann of the Brookings Institution says it is sometimes difficult to discern the motivations behind billionaires’ funding of certain candidates, but billionaire Harold Simmons, who made his fortune in leveraged buyouts and corporate takeovers, says he is funding conservative super PACs because President Obama is a “socialist.” The Wall Street Journal has noted that Simmons and others like him would profit greatly if their industries were less regulated by government agencies. If Republicans do well in the November elections, Simmons told the Journal that “we can block that crap [regulations].” Conservative super PACs are far outstripping the super PAC backing the Obama re-election campaign as well as other Democrats running for office. Mann says, “The pool of billionaires who can throw tens of millions into the game—and are inclined to do so—is concentrated on the right.” Obama has so far been reluctant to get involved in his super PAC’s fundraising activities, but recent statements by his campaign indicate that White House aides will try to help Priorities USA Action, the Obama super PAC, raise more money in the near future. Obama campaign manager Jim Messina says the Obama campaign is in danger of being overwhelmed by the fundraising from conservative billionaires. CNN states that the most notable effect of super PAC funding might not be on the presidential race, but on “downticket” races for Congress. Much smaller outlays of super PAC money can have extraordinary impacts on such races. Dunbar says, “An individual donor and a super PAC could go off to some district in Kentucky and just completely destroy some candidate because he doesn’t favor what’s good for your business.” [Think Progress, 3/26/2012; CNN, 3/26/2012; Huffington Post, 6/16/2012]

Entity Tags: Jim Messina, Harold Simmons, Viveca Novak, Wall Street Journal, Willard Mitt Romney, CNN, Barack Obama, Thomas Mann, Think Progress (.org), US Supreme Court, Foster Friess, Newt Gingrich, John Paulson, John Dunbar, Sheldon Adelson, Ron Paul, Paul S. Ryan, Rick Santorum, Priorities USA Action, Peter Thiel

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Senator John McCain (R-AZ), the co-author of the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002), criticizes the Supreme Court’s 2010 Citizens United ruling that gutted the BCRA and allows corporations and labor unions to make unlimited contributions to election and campaign activities (see January 21, 2010). In a panel discussion, McCain calls the ruling “a combination of arrogance, naivete, and stupidity, the likes of which I have never seen.” He goes on to predict scandals as a result of the ruling enabling unlimited corporate contributions and a lack of disclosure surrounding those contributions (see October 2010, June 23, 2011, October 30, 2011, and December 19, 2011), saying: “I promise you this. I promise you there will be huge scandals… because there’s too much money washing around, too much of it… we don’t know who, who contributed it, and there is too much corruption associated with that kind of money. There will be major scandals.” Asked if he intends to give up on passing campaign reform legislation, he answers: “No. But I’ve got to wait until we think that can pass legislation. And I’m not sure right now, frankly, that we could get it passed.” The next day, Josh Israel of the liberal news Web site Think Progress notes that McCain is somewhat responsible for the inability of Congress to pass meaningful campaign finance legislation. He refused to vote for the Democratically-sponsored DISCLOSE Act (see July 26-27, 2010), decrying it as “a bailout for the unions.” Had McCain voted with Senate Democrats to end the Senate Republican filibuster against the DISCLOSE Act, the bill could have been brought to the floor for an up or down vote. Israel calls McCain’s “grumbling” about campaign finance regulation “little more than grandstanding.” [Think Progress, 3/28/2012]

Entity Tags: DISCLOSE Act of 2010, Bipartisan Campaign Reform Act of 2002, US Supreme Court, John McCain, Josh Israel

Category Tags: Campaign Finance

A federal court rules that the Federal Election Commission (FEC) has exceeded its authority by requiring only corporations and labor unions, and not all contributors, to report contributions made for the purpose of furthering electioneering communications as defined in the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002). Judge Amy Berman Jackson of the US District Court in Washington, DC, issues the ruling in the case of Van Hollen v. Federal Election Commission, filed by US Representative Chris Van Hollen (D-MD—see April 21, 2011 and After). Under the BCRA, corporations or labor unions who do not segregate their funds for campaign purposes as opposed to more general purposes must report all contributions of $1,000 or more. (The Citizens United decision of 2010 rendered such segregation of funds optional—see January 21, 2010.) Those contributions include money donated by anyone who gives to a corporation or labor union. In December 2007, the FEC revamped its disclosure regulation in the wake of the Right to Life v. Federal Election Commission ruling (the so-called “WRTL ruling”—see June 25, 2007) to create a loophole allowing corporations to evade disclosure requirements. 501(c)4 groups such as Crossroads GPS have avoided disclosure of their donors by using this loophole. Jackson agrees with Van Hollen, ruling that the FEC’s revision violates the plain language and legislative purpose of the BCRA. Jackson writes: “Congress spoke plainly, that Congress did not delegate authority to the FEC to narrow the disclosure requirement through agency rulemaking, and that a change in the reach of the statute brought about by a Supreme Court ruling did not render plain language, which is broad enough to cover the new circumstances, to be ambiguous. The agency cannot unilaterally decide to take on a quintessentially legislative function; if sound policy suggests that the statute needs tailoring in the wake of WRTL or Citizens United, it is up to Congress to do it.” She rejected arguments that broader reporting requirements would place an undue burden on corporations and unions, and thusly would violate their First Amendment freedoms, ruling that the Citizens United decision already invalidated those arguments by upholding BCRA reporting requirements. If Jackson’s ruling survives an appeal, the FEC will have to go back and revamp its regulatory language to require disclosure of all contributors, no matter what the purpose, for any corporation or labor union that uses general, unsegregated funds for campaign purposes. Or, corporations and unions may choose to create segregated funds for campaign purposes in order to avoid reporting their contributors. Josh Israel of the liberal news Web site Think Progress writes that even if the FEC chooses to rewrite its rules to comply with Jackson’s ruling, “countless loopholes remain” to allow corporations and unions to shield the identities of their donors. For instance, donors and companies could more-or-less launder donations through middle-man groups, shielding their own identities. “Even if we somehow achieved full disclosure… for all political spending,” Israel writes, “any meaningful reforms to the campaign finance system will require the high court to reverse the 5-4 Citizens United ruling.” [Law Librarians' Society of Washington, D.C., 9/2002; National Archives and Records Administration, 2012; Van Hollen v. Federal Election Commission: Memorandum Opinion, 3/30/2012; Constitutional Law Prof Blog, 4/3/2012; Think Progress, 4/9/2012] On May 14, an appeals court will refuse a stay of the decision, filed by an organization identified in the court order as the Center for Individual Freedom. [US Court of Appeals for the District of Columbia Court, 5/14/2012 pdf file]

Entity Tags: Bipartisan Campaign Reform Act of 2002, Amy Berman Jackson, American Crossroads GPS, Federal Election Commission, Center for Individual Freedom, Chris Van Hollen, Josh Israel, US Supreme Court

Category Tags: Court Procedures and Verdicts, Campaign Finance

American Energy Alliance logo.American Energy Alliance logo. [Source: NJI Media]The press learns that a recent $3.6 million television ad campaign attacking President Obama on gasoline prices was funded by the oil billionaires Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011 and February 14, 2011). The ad campaign was launched by the American Energy Alliance (AEA), the political arm of the Institute for Energy Research. Both organizations are heavily funded by the Koch brothers and their donor network, though information about their finances is sketchy, as the groups do not have to disclose their donor rolls to the public. The two groups are run by Tom Pyle, a former lobbyist for Koch Industries. Pyle regularly attends what news Web site Politico calls “the mega-donor summits organized by the Koch brothers.” Koch-funded organizations intend to spend well over $200 million on behalf of conservative groups before the November elections. The AEA ad claims that the Obama administration is responsible for the recent surge in gasoline prices. Democratic National Committee (DNC) spokesman Brad Woodhouse says that the Koch brothers are “funding yet another shadowy outside group to defend the interests of Big Oil and protect their own tax breaks and profits with [Republican presumptive presidential nominee] Mitt Romney being the ultimate beneficiary.” The DNC and the Obama campaign have targeted the Koch brothers in previous statements, calling them some of the “secretive oil billionaires” funding the Romney campaign. AEA spokesman Benjamin Cole accuses the DNC and the Obama campaign of playing “shadowy” politics intended “to delay, deny, and deceive the American public about the president’s record on energy prices.” The AEA ad is not connected to the Romney campaign, Cole says, and adds that the ad campaign is not intended to benefit Romney, stating, “[W]e have been public and unashamed of criticizing Mitt Romney or any candidate for office, Republican or Democrat, that doesn’t support free market energy solutions.” Cole refuses to confirm that the Koch brothers are financing the ad campaign, instead saying: “People ask if Koch is behind this ad. There is only one person behind this ad and it is President Barack Obama.” The Koch brothers are becoming increasingly involved in the 2012 presidential campaign, sending representatives like Marc Short to network with former Bush advisor Karl Rove, who runs the super PAC American Crossroads and its sibling Crossroads GPS. [Politico, 3/29/2012]

Entity Tags: Karl C. Rove, Barack Obama, American Energy Alliance, Benjamin Cole, Brad Woodhouse, Obama administration, Charles Koch, David Koch, Thomas Pyle, Willard Mitt Romney, Marc Short

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Logo of American Crystal Sugar, one of the corporate donors making contributions to Steve King’s re-election campaign.Logo of American Crystal Sugar, one of the corporate donors making contributions to Steve King’s re-election campaign. [Source: ACSC]US Representative Steve King (R-IA) tells an audience at a town hall meeting in Jefferson, Iowa, that he has accepted no corporate contributions for his campaign. Yet King has indeed accepted over $100,000 in corporate contributions. The denial comes after a constituent asks him about the impact of the 2010 Citizens United decision, which allows unlimited contributions by corporations and labor unions (see January 21, 2010). The constituent says: “The whole question of what’s wrong with our country here is corruption. Money buying elections. Money buying corporate messages.” King replies: “That’s another thing. I will listen to him. I just want to tell you. I don’t have any corporate contributions into my campaign.” King’s campaign has accepted contributions from the PACs of Koch Industries, American Crystal Sugar, AT&T, Berkshire Hathaway, Exxon, First American Bank, Kirke Financial Services, Mail Services LLC, Mobren Biological, Silverstone Group, Sukup Manufacturing, and a large number of corporate trade associations. Scott Keyes of the liberal news Web site Think Progress writes: “King is technically correct that corporations haven’t contributed directly to his campaign. Federal election law (see March 27, 2002) prohibits corporations from making such contributions to any candidate. However, corporations establish their own PACs precisely so that their leadership and investors can donate to candidates. King’s campaign has benefited immensely from these corporate PACs, receiving more than $100,000 for his reelection bid.” [Think Progress, 4/25/2012; Center for Responsive Politics, 7/9/2012]

Entity Tags: Kirke Financial Services, Berkshire Hathaway, American Crystal Sugar, AT&T, First American Bank, Sukup Manufacturing, Scott Keyes, Silverstone Group, Koch Industries, Mail Services LLC, Steve King, Mobren Biological, ExxonMobil

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

AFC logo.AFC logo. [Source: Think Progress]A Republican House primary in North Carolina is one of the first US House races to feature the involvement of an active super PAC. After North Carolina’s House districts were remapped, Representative Brad Miller (D-NC) chose not to seek re-election. The two strongest Republican candidates for the position, former US Attorney George Holding and Wake County Commissioner Paul Coble, are engaged in a heated primary challenge, with each candidate’s campaign accusing the other candidate of being more moderate than their candidate. Holding is being supported by the American Foundation Committee (AFC), a super PAC that began operation on February 28. Though the organization’s Web site does not mention either candidate, the AFC has made the total of its expenditures—$366,715 so far—in support of Holding and against Coble. AFC has outspent both candidates. According to data provided by liberal news Web site Think Progress, not counting super PACs working on behalf of presidential candidates, the AFC is among the top 10 highest-spending super PACs of this election cycle. Coble’s campaign calls AFC “a shadowy group” with “dirty money” from “special interest… trial lawyers.” Holding notes that AFC discloses its donors, most of whom are relatives and close friends of Holding. The average contribution from each donor is $26,000. Think Progress’s Josh Israel writes, “Voters around the country, already fed up with super PACs, should expect to see a lot more of them in the coming months.” [Think Progress, 4/13/2012; Center for Responsive Politics, 8/9/2012] Data released in mid-August 2012 will show that AFC spends $312,245 in campaign activities attacking Coble, and $222,837 on behalf of Holding, for a total of $535,082. [Center for Responsive Politics, 8/9/2012] Holding will win the primary race against Coble and a third candidate. [Raleigh News and Observer, 5/8/2012] He will go on to win the main election easily over his Democratic challenger. [National Journal, 11/9/2012]

Entity Tags: Paul Coble, Brad Miller, George E. B. Holding, American Foundation Committee, Think Progress (.org), Josh Israel

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

The Washington Post reports that an anonymous donor gave the political advocacy organization Crossroads GPS $10 million to run television ads attacking President Obama and Democratic policies, part of the almost $77 million in secret donations the group has received. It also received another $10 million from an anonymous donor to use during the 2010 midterm elections. The Post says the donations are emblematic of “the money race that is defining the 2012 presidential campaign.” According to data provided by the Center for Public Integrity, $76.8 million of the money raised in 2010 and 2011—62 percent—was secretly contributed to Crossroads GPS. The money came from fewer than 100 individual donors, which works out as an average donation of over $750,000; 90 percent of its donors gave over $1 million in individual donations. Crossroads GPS is a conservative nonprofit 501(c)(4) group co-founded by former Bush administration political advisor Karl Rove. The information about the donations comes from draft tax returns that provide a limited insight into the donations received by the group. Under the law (see January 21, 2010 and March 26, 2010), Crossroads GPS is not required to identify its donors. The Post says it is possible both donations came from the same source, but it has no way to confirm that supposition.
Explanations and Criticisms - Crossroads GPS is the sister organization of American Crossroads, the super PAC also co-founded by Rove. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, they have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads. Crossroads GPS spokesperson Jonathan Collegio says that the organization “advocates for free markets, free trade, limited government, and personal responsibility.” The group’s donors are “individuals and businesses that support our vision of lower taxes and smaller government. We believe President Obama’s tax and regulatory policies are strangling economic growth through excessive regulation and government spending that is crowding out private investment.” Bill Allison of the Sunlight Foundation, which advocates for transparency in government and politics, says that the two groups are “certainly not a grassroots movement.… These donors can have a very disproportionate effect on politics, and the fact that we don’t know who they are and what kind of favors they will ask for is very troubling.” Allison speculates that some of the anonymous Crossroads GPS donors may be large public corporations, which according to the Post have “for the most part… not donated to super PACs or other groups that disclose donors.” American Crossroads is required to disclose its donors, which include Texas billionaire Harold Simmons ($12 million) and Texas home builder Bob Perry ($2.5 million). The Republican Jewish Coalition has identified itself on its tax returns as a donor to Crossroads GPS, having given $4 million to the organization. (Crossroads GPS donated back $250,000.) Sunlight and other critics have questioned Crossroads GPS’s status as a nonprofit “social welfare” group. Under IRS regulations, such groups cannot have as their primary purpose influencing elections, but they can spend up to half their money on political campaigning. The group has asked the IRS to grant it tax-exempt status. Critics have asked the IRS to revoke the group’s nonprofit status, saying that it is patently a political organization. A complaint filed by the Campaign Law Center and Democracy 21 in December 2011 said in part, “We are deeply concerned about the failure of the IRS to take any public steps to show that the agency is prepared to enforce the tax laws.” Crossroads GPS claims it has spent $17 million on direct election activities and $27 million on “grassroots issue advocacy,” including a $16 million expenditure in the summer of 2011 on ads pushing against tax increases during debate on raising the debt ceiling (see August 5, 2011). It has also given some $16 million to a network of conservative advocacy groups, including $4 million to Americans for Tax Reform (ATR), $3.7 million to the National Federation of Independent Business, and $2 million to the National Right to Life Committee. According to Crossroads GPS, all of its donation recipients are instructed to use the funds “only for exempt purposes and not for political expenditures.” In 2010, ATR spent $4 million—almost exactly the amount it received from Crossroads GPS—on political ads in 2010. Melanie Sloan of Citizens for Responsibility and Ethics in Washington (CREW) says that even if ATR did not spend the Crossroads GPS money on ads, the donation allowed it to divert $4 million of its own money to election ads. “It’s the same amount—does that seem likely to be a coincidence to you?” she asks a reporter. An ATR spokesperson says the Crossroads GPS donation was “in support of our work fighting tax hikes.” [Washington Post, 4/13/2012; iWatch News, 4/20/2012; Think Progress, 4/20/2012]
High Compensation - Steven Law, the former deputy secretary of labor under President Bush and the former general counsel for the US Chamber of Commerce who serves as the president of both organizations, pulled down $1.1 million in salaries and bonuses for the two groups. Collegio explains the high compensation to a reporter, saying: “Crossroads is a serious organization. Free market conservative donors know that hiring top CEO talent requires real compensation.” [iWatch News, 4/20/2012]

Entity Tags: American Crossroads, National Right to Life Committee, Karl C. Rove, Barack Obama, American Crossroads GPS, Washington Post, National Federation of Independent Business, Americans for Tax Reform, Melanie Sloan, Campaign Law Center, Bill Allison, Jonathan Collegio, Steven Law, Harold Simmons, Center for Public Integrity, Democracy 21, Republican Jewish Coalition, Bobby Jack Perry

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

USA Today, using data provided by the Federal Election Commission (FEC), reports that much of the unprecedentedly high political contributions in the 2012 presidential campaigns comes from anonymous donors. The report also shows that eight out of the top 10 donors give to Republican and/or conservative super PACs. The pattern is similar to that described in earlier reports, such as an August 2011 report that found a dozen wealthy donors made up the majority of super PAC donations, and most of those donors contributed to Republican or conservative organizations (see August 4, 2011), and a February 2012 analysis that found a quarter of the donations flowing into the super PACs came from just five wealthy donors, four of whom are Republican contributors (see February 21, 2012). The latest data shows that eight out of 10 of the top super PAC donors are either individuals or corporations who donate to Republican causes. One of the remaining two donors, the Cooperative of American Physicians, supports a single Democratic candidate and a range of Republicans. The other is a teachers’ union, the National Education Association. The top three donors—casino billionaire Sheldon Adelson and his wife Miriam, Dallas industrialist Harold Simmons and his wife Annette, and Houston real-estate mogul Bob Perry—have between them contributed over $45 million, more than four times the donations coming from the “bottom” six donors. Much of the money collected by nonprofit political advocacy organizations remains undocumented; for example, 80 percent of the donations collected by the Republican-aligned American Crossroads super PAC and its 501(c)4 sister organization Crossroads GPS is from anonymous donors (see April 13-20, 2012). The groups plan on spending at least $300 million during the campaign. FreedomWorks for America, the super PAC arm of the “astroturf” lobbying organization FreedomWorks (see April 14, 2009), garnered about a third of its contributions from anonymous donors who gave to the organization’s nonprofit arm. Law professor and campaign finance expert Richard Hasen says, “We have a dysfunctional system for financing our elections,” when anonymous donations can fund political activity. “It’s bad for our democracy when people refuse to be held accountable.” Russ Walker, the national political director of FreedomWorks for America, says simply, “Everything we are doing is within the law.” [USA Today, 4/22/2012; Think Progress, 4/23/2012]

Entity Tags: Cooperative of American Physicians, USA Today, American Crossroads GPS, American Crossroads, Bobby Jack Perry, Russ Walker, Sheldon Adelson, National Education Association, FreedomWorks for America, FreedomWorks, Federal Election Commission, Richard L. Hasen, Miriam Adelson, Annette Simmons, Harold Simmons

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Senate Minority Leader Mitch McConnell (R-KY) and the US Chamber of Commerce file amicus curiae briefs with the US Supreme Court urging it to reverse the Montana Supreme Court’s support for Montana’s ban on corporate financing of political campaigns (see December 30, 2011 and After). The conservative lobbying and advocacy group Citizens United (CU) has already filed such a brief. Former officials of the ACLU, along with advocacy groups such as Free Speech for People, have filed an amicus brief asking the Court to review the decision. Many observers have predicted the Court will overturn the Montana high court’s ruling (see January 4, 2012) because it seems to conflict with the 2010 Citizens United Supreme Court decision (see January 21, 2010), but a summary reversal—in essence, a decision without allowing the two sides to present arguments—would be somewhat unusual. Four justices are required to accept the case for review, while five must vote for summary judgment. The Court issued a stay on the Montana court’s decision soon after its issuance (see February 10-17, 2012). The case is American Tradition Partnership, et al., v. Bullock. CU lawyers have asked the Court to protect the ruling it issued in the case bearing its name, accusing the Montana court of “constitutional mischief” and advising the Court to “reaffirm its position as the final arbiter of the Constitution’s meaning” by summarily reversing the Montana court’s decision. On the other side, the ACLU officials and other briefs have urged the Court to review its Citizens United decision, saying the ruling is “in serious doubt” because of “massive” spending in the 2012 federal campaigns “by corporations and wealthy elites.” The Free Speech for People brief focuses on the issue of spending by “independent” outside groups and individuals since the Citizens United decision (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, October 30, 2011, December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, January 10, 2012, February 21, 2012, February 21, 2012, and March 26, 2012), and says the massive spending undercuts the rationale for the decision: “In view of the increasingly dominant role of corporate and private independent expenditures in our electoral politics, this Court should grant certiorari and reexamine whether its long-standing precedent permitting regulations designed to prevent the use of wealth from drowning out other voices provides an additional basis for upholding restrictions on independent expenditures.” The Free Speech for People brief also argues that the Court should use the American Tradition Partnership case to rule that corporations are not entitled to the protections of the First Amendment free speech clause or other provisions in the Bill of Rights. CU lawyers have argued that the Citizens United decision is not the issue, but the Montana high court’s decision to uphold its state ban on unlimited corporate spending because of what the CU brief calls “Montana’s supposedly unique history, geography, politics, and economy.” The CU brief continued, “The Montana Supreme Court’s state-specific analysis makes this case an exceedingly poor vehicle to reexamine the broader constitutional questions settled in Citizens United.” The US Supreme Court’s ruling in Citizens United should bind Montana as well as the other 49 states, the CU brief argued, saying that “state courts—like federal courts—have an unwavering obligation to uphold the Constitution of the United States and follow this Court’s decisions until they are withdrawn or modified.… They are not freed from that constitutional obligation where the decision of this Court is controversial or unpopular, where it was rendered by a divided Court, or where state officials disagree with the decisions as a matter of policy.” Instead, the brief claimed, Montana’s high court has promulgated “a transparent attempt to circumvent the application of this Court’s precedent to a state statute that is materially indistinguishable from the federal prohibition on corporate independent expenditures struck down by this Court in Citizens United. Such constitutional mischief should proceed no further.” The liberal news Web site Think Progress notes that Senator McConnell, who files a brief urging summary reversal today, has argued against campaign finance reform for a decade, and was one of the plaintiffs in an unsuccessful 2002 lawsuit attempting to reverse a legislative ban on corporate donations (see December 10, 2003). And, it notes, the US Chamber of Commerce is one of the biggest donors in the 2012 elections. [Lyle Denniston, 5/1/2012; Think Progress, 5/2/2012] The Supreme Court will indeed overrule the Montana high court’s decision (see June 25, 2012).

Entity Tags: US Chamber of Commerce, Citizens United, Free Speech for People, Mitch McConnell, US Supreme Court, Montana Supreme Court, Think Progress (.org)

Category Tags: Court Procedures and Verdicts, Campaign Finance

A screenshot from an ad attacking Mitt Romney, sponsored by a super PAC on behalf of Newt Gingrich.A screenshot from an ad attacking Mitt Romney, sponsored by a super PAC on behalf of Newt Gingrich. [Source: Think Progress]The Wesleyan Media Project (WMP), a nonpartisan political analysis group working out of Connecticut’s Wesleyan University, finds that negative political advertising has become the mainstay of political broadcast advertising in the 2012 presidential campaign. Only about 8 percent of ads in the 2008 presidential campaign could be considered negative, the WMP writes, but in 2012, 70 percent of ads are negative. (The WMP defines negative as “mentioning an opponent.”) Erika Franklin Fowler, the WMP’s co-director, says: “One reason the campaign has been so negative is the skyrocketing involvement of interest groups, who have increased their activity by 1,100 percent over four years ago. But we cannot attribute the negativity solely to outside groups. Even the candidates’ own campaigns have taken a dramatic negative turn.” Interest-group advertising, i.e. ads financed by “independent” third-party organizations that support one candidate or another, were 75 percent positive in 2008, but only 14 percent positive in 2012. In 2008, ads financed directly by candidate campaigns were 9 percent negative, but this year are 53 percent negative.
Huge Spike in Third-Party Advertising from 2008 - Almost two-thirds of the ads aired in 2012 are paid for by “third party” organizations such as super PACs and “nonprofit” groups. Super PACs alone have financed 60 percent of the ads during this cycle; that figure for 2008 was 8 percent. The WMP writes: “An estimated $112M [million] has been spent to date on 207,000 ads compared to $190M spent on just under 300,000 ads in 2008. Much of this decline in spending and ad volume is due to the lack of a nomination contest on the Democratic side this year.” The project refers to the Republican presidential primary, which is featuring massive spending on behalf of candidates by third-party organizations. “Such levels of outside group involvement in a presidential primary campaign are unprecedented,” according to co-director Travis Ridout. “This is truly historic. To see 60 percent of all ads in the race to-date sponsored by non-candidates is eye-popping.” One of the most prominent organizations, the nonprofit Crossroads GPS (see April 13-20, 2012), has already aired some 17,000 ads, mostly attacking President Obama. Those ads are joined by commercials paid for by another conservative advocacy group, Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has aired some 7,000 ads. The Obama campaign and the Democratic National Committee (DNC) have combined to air some 20,342 ads. WMP data shows that 33,420 anti-Obama, pro-Republican spots have aired as opposed to 25,516 anti-Republican, pro-Obama ads.
Most Ads Paid for by Anonymous Donations - Unlike the majority of the ads that aired in the primary election, most of the ads airing for the general election have “come from groups that do not need to disclose their donors,” according to WMP co-founder Michael M. Franz. “That’s a lot of money and airtime backed by undisclosed sources.” Republican presidential candidates Newt Gingrich (R-GA), Jon Huntsman (R-UT), Mitt Romney (R-MA), and Rick Santorum (R-PA) were very reliant on super PAC advertising, with Ron Paul (R-TX) less so. About 20 percent of ads aired on Obama’s behalf have come from his super PAC, Priorities USA Action, though the DNC has aired a number of ads on behalf of Obama. Priorities USA Action is answering negative ads from Crossroads GPS with its own advertising, mainly in “battleground” states such as Iowa, North Carolina, Ohio, Colorado, Florida, Virginia, and Nevada. Ridout says: “Early general election spending reveals that both parties are focused on markets in the same key battleground states. The past couple of weeks, Obama and his super PAC have been on the air in a few more markets than Crossroads GPS, but both sides have focused their advertising in markets in Nevada, Colorado, Florida, Virginia, Iowa, and Ohio.” Groups such as the conservative Club for Growth, the American Action Network (AAN—see Mid-October 2010), and AFP are airing ads in Senate races in Florida, Indiana, and Nebraska. And some $6 million in advertising has flooded Wisconsin and its gubernatorial recall election involving Governor Scott Walker (R-WI). Walker and the super PAC supporting him, Right Direction Wisconsin PAC (an arm of the Republican Governors’ Association), have outspent their Democratic opponents; of the 17,000 ads aired in Wisconsin about the recall election, 10,000 have either been pro-Walker or negative ads attacking the recall and Walker’s challengers. Franz says: “Wisconsinites have been inundated with advertising surrounding the gubernatorial recall election. Walker and his allies hold a substantial advantage to date in the air war in all markets except Madison, and the incumbent governor’s ads have been more positive than his competitors’ ads.” The liberal news Web site Think Progress notes that the 2010 Citizens United decision is largely responsible for the increased spending by third-party groups (see January 21, 2010). [Wesleyan Media Project, 5/2/2012; Think Progress, 5/3/2012]

Entity Tags: Club for Growth, Americans for Prosperity, Travis Ridout, Wesleyan Media Project, Willard Mitt Romney, American Action Network, 2012 Obama presidential election campaign, Scott Kevin Walker, Ron Paul, Think Progress (.org), Rick Santorum, Jon Huntsman, Erika Franklin Fowler, Democratic National Committee, American Crossroads GPS, Right Direction Wisconsin PAC, Mitt Romney presidential campaign (2012), Michael M. Franz, Priorities USA Action, Newt Gingrich

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

The New York Times reports that wealthy liberal donors, after months of relative inactivity, are gearing up to make large donations on behalf of Democratic candidates. But unlike their Republican counterparts, these donors are not going to give millions to super PACs. Instead, the Times reports, they will give most of their money to organizations focused on grassroots organizing, voter registration, and “get out the vote,” or GOTV, efforts. The Times reports, “The departure from the conservatives’ approach, which helped Republicans wrest control of the House in 2010, partly reflects liberal donors’ objections to the Supreme Court’s Citizens United decision (see January 21, 2010), which paved the way for super PACs and unbridled campaign spending.” Also, donors and strategists do not believe they can go head-to-head with wealthy Republican donors who are giving to groups like American Crossroads and Americans for Prosperity (AFP). Instead, they say they feel Democrats can press an advantage in grassroots organizing. Rob Stein of the Democracy Alliance, a group of liberal donors, says that while super PACs “are critically important,” local efforts and social-media outreach “can have an enormous impact in battleground states in 2012.” Billionaire financier and philanthropist George Soros (see January - November 2004) will give $1 million to America Votes, an organization that coordinates political actions for environmental, abortion rights, and civil rights groups, and another $1 million to American Bridge 21st Century, a super PAC that focuses on election research. Soros has not yet given significantly during the 2012 cycle. A Soros spokesperson, Michael Vachon, says: “George Soros believes the Supreme Court’s decision in Citizens United opened the floodgates to special interests’ paying for political ads. There is no way those concerned with the public interest can compete with them. Soros has always focused his political giving on grass-roots organizing and holding conservatives accountable for the flawed policies they promote. His support of these groups is consistent with those views.” President Obama’s reelection campaign is in the process of unleashing a $25 million ad campaign against the presumptive Republican nominee, Mitt Romney (R-MA), directed and financed by the campaign itself. Romney and other Republicans have relied more heavily on “independent” spending by American Crossroads, AFP, and other “third party” groups. An Obama-aligned super PAC, Priorities USA Action, has raised relatively little money in comparison to its Republican counterparts, though it has been active in some battleground states (see May 2, 2012). Obama’s opposition to super PACs and his reluctance to have his campaign rely on their efforts (see January 18, 2012) has slowed super PAC fundraising efforts on his behalf, though he has recently given his approval for the group to operate at maximum capacity (see February 6, 2012). David Brock, the founder of American Bridge 21st Century and the liberal watchdog organization Media Matters for America, says, “The idea that we’re going to engage in an arms race on advertising with the Republicans is not appealing to many liberal donors.” While Priorities USA and two other groups founded to help Democrats in Congress remain on the list of organizations that the Democracy Alliance recommends to its members, Robert McKay, the chairman of the group and a board member of Priorities USA, says that much of the money expected to be spent this year—up to $100 million—by the group’s donors will go to organizing and research, and far less to television advertising. “There is a bias towards funding infrastructure as it relates to the elections,” McKay says. “That means get-out-the-vote efforts” aimed at minority voters, women, and younger voters. Organizations involved in Democracy Alliance include Catalist, a voter database organization; ProgressNow, which organizes Internet-based groups in different states; and the newly created Latino Engagement Fund, an organization that works to organize Latino voting on behalf of Democrats. Groups outside Democracy Alliance will also be involved, particularly labor unions and advocacy groups such as the Sierra Club. San Francisco philanthropist Steve Phillips, who intends to spend some $10 million on efforts to increase turnout among Latino voters, says: “You can dump 10 or 20 million in TV ads in Ohio and try to reach the persuadable swing voters there, or you can up voter turnout among Latinos in Colorado and Arizona and win that way. It’s much cheaper.” [New York Times, 5/7/2012]

Entity Tags: American Crossroads, Steve Phillips, Willard Mitt Romney, 2012 Obama presidential election campaign, Robert McKay, American Bridge 21st Century, Rob Stein, New York Times, Americans for Prosperity, David Brock, Priorities USA Action, Michael Vachon, America Votes, George Soros, Democracy Alliance

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

In an interview with reporter/pundit Sam Seder, former US Senator Russ Feingold (D-WI) says that he feels Supreme Court Justice Anthony Kennedy is embarrassed by the “almost lawless decision” rendered by the Court in its 2010 Citizens United ruling (see January 21, 2010). That ruling allows corporations and labor unions to spend unlimited amounts in political campaigns, and is widely credited with the enormous influx of corporate money in the 2012 presidential elections. Kennedy wrote the majority opinion. Feingold says: “This is a guy who is usually a careful justice. He just started making these sweeping assertions about what corruption was, what companies do, like he was talking at a bar with somebody over a beer rather than anything that was a legal decision. It was really reckless. I am guess[ing] he might even be a little bit embarrassed at this point about what a sloppy opinion it was, and how it just asserted things that aren’t proven.” Feingold, who co-authored the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002), says the current campaign finance system is nothing less than “legalized extortion.” He adds: “It’s not like corporate CEOs sit around their office and go, ‘You know, I’d like to throw some money around in the political process.’ It works the other way. The politicians call up and ask for the money.” [Raw Story, 5/7/2012]

Entity Tags: US Supreme Court, Anthony Kennedy, Bipartisan Campaign Reform Act of 2002, Sam Seder, Russell D. Feingold

Category Tags: Court Procedures and Verdicts, Campaign Finance

Jeffrey Toobin in 2007.Jeffrey Toobin in 2007. [Source: Wikimedia]Author and political pundit, Jeffrey Toobin, publishes an in-depth article for the New Yorker showing that Chief Justice John Roberts engineered the 2010 Citizens United Supreme Court decision (see January 21, 2010), moving it from a case that could well have been considered and decided on a relatively narrow basis to a sweeping decision that reformed the nation’s campaign finance structure. Toobin writes that the underlying issue was quite narrow: the conservative advocacy organization Citizens United (CU) wanted to run a documentary attacking presidential candidate Hillary Clinton (D-NY) on “video on demand” cable broadcast (see January 10-16, 2008). Under the McCain-Feingold campaign finance legislation (see March 27, 2002 and December 10, 2003), the Federal Election Commission (FEC) disallowed the broadcast because it would come 30 days or less before primary elections. CU challenged the decision in court (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009). [New Yorker, 5/21/2012] Toobin’s article is an excerpt from his forthcoming book The Oath: The Obama White House vs. The Supreme Court. It is dated May 21, but appears on the New Yorker’s Web site on May 14. [Tom Goldstein, 5/14/2012]
Oral Arguments - During the initial arguments (see March 15, 2009), attorney Theodore Olson, the former solicitor general for the Bush administration, argued a narrow case: that McCain-Feingold’s prohibitions only applied to television commercials, not to full-length documentary films. Olson argued, “This sort of communication was not something that Congress intended to prohibit.” Toobin writes: “Olson’s argument indicated that there was no need for the Court to declare any part of the law unconstitutional, or even to address the First Amendment implications of the case. Olson simply sought a judgment that McCain-Feingold did not apply to documentaries shown through video on demand.… If the justices had resolved the case as Olson had suggested, today Citizens United might well be forgotten—a narrow ruling on a remote aspect of campaign-finance law.” However, Justice Antonin Scalia, one of the most vocal opponents of campaign finance restrictions on the Court (see September 26, 1986, December 15, 1986, March 27, 1990, June 26, 1996, June 16, 2003, December 10, 2003, and June 25, 2007), seemed disappointed in the limited nature of Olson’s argument, Toobin writes. The oral arguments expand the case far beyond Olson’s initial position. Olson’s initial intention was to narrow the case so that the Court would not have to expand its scope to find in favor of CU.
Change of Scope - Ironically, the government’s lead lawyer, Deputy Solicitor General Malcolm Stewart, may well have changed the scope of the case in favor of a broader interpretation. Traditionally, lawyers with the solicitor general (SG)‘s office are far more straightforward with the Court than is usual in advocacy-driven cases. Toobin writes: “The solicitor general’s lawyers press their arguments in a way that hews strictly to existing precedent. They don’t hide unfavorable facts from the justices. They are straight shooters.” Stewart, who had clerked for former Justice Harry Blackmun and a veteran of the SG office since 1993, is well aware of the requirements of Court arguments. But, Toobin writes, Stewart fell into a trap, prompted by Justice Samuel Alito’s pointed questioning about the government’s ability to ban or censor printed materials—i.e. books—under McCain-Feingold—and follow-up questions by Roberts and Justice Anthony Kennedy, that led him to claim incorrectly that the government could indeed censor books under the law. Stewart’s incorrect assertion gave Roberts and his colleagues the chance to overturn McCain-Feingold on the grounds of the First Amendment right to freedom of speech.
Second Arguments - The second arguments were held on September 9, 2009 (see September 9, 2009). The concept of “money equals speech” goes back at least as far as the 1976 Buckley decision (see January 30, 1976), and the five conservative justices were poised to stretch that definition much farther than has previously been done.
Majority Opinion - Toobin writes that Roberts’s decision was then to decide “how much he wanted to help the Republican Party. Roberts’s choice was: a lot.” Roberts assigned the opinion to Kennedy, the “swing” justice who had already written an expansive opinion gutting almost a century’s worth of campaign finance legislation. Kennedy tends to “swing wildly in one direction or another,” Toobin writes, “an extremist—of varied enthusiasms.” In the area of campaign finance, he has consistently “swung” to the conservative side of the argument. He is, Toobin writes, “extremely receptive to arguments that the government had unduly restricted freedom of speech—especially in the area of campaign finance.” Moreover, Kennedy enjoys writing controversial and “high-profile” opinions. Toobin says that Roberts’s choice of Kennedy to write the opinion was clever: Roberts came onto the Court promising to conduct himself with judicial modesty and a respect for precedent. Kennedy, with his draft opinion at the ready, was a better choice to write an opinion that lacked either modesty or a respect for Court precedence. Roberts, Toobin writes, “obtained a far-reaching result without leaving his own fingerprints.” Kennedy, in an often-eloquent opinion that did not deal with the gritty reality of the Citizens United case, stated that any restraint of money in a campaign risked infringing on free speech. “Speech is an essential mechanism of democracy, for it is the means to hold officials accountable to the people. The right of citizens to inquire, to hear, to speak, and to use information to reach consensus is a precondition to enlightened self-government and a necessary means to protect it.… By taking the right to speak from some and giving it to others, the government deprives the disadvantaged person or class of the right to use speech to strive to establish worth, standing, and respect for the speaker’s voice. The government may not by these means deprive the public of the right and privilege to determine for itself what speech and speakers are worthy of consideration. The First Amendment protects speech and speaker, and the ideas that flow from each.” Kennedy also reaffirmed the Court’s perception that corporations deserve the same First Amendment protections enjoyed by individuals. Kennedy’s opinion found, in Toobin’s words, that “[t]he Constitution required that all corporations, for-profit and nonprofit alike, be allowed to spend as much as they wanted, anytime they wanted, in support of the candidates of their choosing.” One of the only provisions remaining in McCain-Feingold after Kennedy’s opinion was the ban on direct corporate contributions to candidates.
Fiery Dissent from 'Liberal' Stevens - Toobin reminds readers that the elder statesman of the “liberal” wing of the Court at the time, John Paul Stevens, is a “moderate Midwestern Republican,” one of the last of a “vanishing political tradition.” Though Stevens’s views have migrated left on some issues, such as the death penalty, Toobin writes that the perception of Stevens as a Court liberal is mostly because of the Court’s steady progression to the right. Toobin writes that the 90-year-old Stevens has grown dispirited in recent years, as the conservative wing of the Court, led by Scalia, Alito, and Roberts with Clarence Thomas and often Kennedy in tow, overturned one Court precedent after another. “The course of Citizens United represented everything that offended Stevens most about the Roberts Court,” Toobin writes. Much of Stevens’s objections to the Roberts Court are rooted in procedure; he is deeply troubled by the Citizens United case being transformed by Roberts and his conservative colleagues from a narrowly focused case about a single McCain-Feingold provision to what Toobin calls “an assault on a century of federal laws and precedents. To Stevens, it was the purest kind of judicial activism.” Stevens wrote in his angry dissent, “Five justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.” A simple change in the McCain-Feingold law to disallow its application to full-length documentaries the CU case was sparked by, or even to nonprofit organizations such as CU, would have been appropriate, Stevens wrote. He penned a 90-page dissent, the longest of his career, blasting almost every aspect of Kennedy’s decision, starting with Kennedy’s ignoring of precedent and continuing with a refutation of Kennedy’s perception of the Constitutional definitions of “censorship” and “free speech.” Stevens was angered by Kennedy’s equivocation of corporations with people. “The Framers thus took it as a given that corporations could be comprehensively regulated in the service of the public welfare,” he wrote. “Unlike our colleagues, they had little trouble distinguishing corporations from human beings, and when they constitutionalized the right to free speech in the First Amendment, it was the free speech of individual Americans that they had in mind.” Congress has drawn significant distinctions between corporations and people for over a century, he wrote: “at the federal level, the express distinction between corporate and individual political spending on elections stretches back to 1907, when Congress passed the Tillman Act” (see 1907). He even challenged Kennedy’s stated fear that the government might persecute individuals’ speech based on “the speaker’s identity,” sarcastically noting that Kennedy’s opinion “would have accorded the propaganda broadcasts to our troops by ‘Tokyo Rose’ [a famed Japanese propagandist] during World War II the same protection as speech by Allied commanders.” According to Toobin, Stevens’s law clerks disliked the dated reference, but Stevens, a Navy veteran, insisted on keeping it. Toobin writes that “Stevens’s conclusion was despairing.” Stevens concluded: “At bottom, the Court’s opinion is thus a rejection of the common sense of the American people, who have recognized a need to prevent corporations from undermining self-government since the founding, and who have fought against the distinctive corrupting potential of corporate electioneering since the days of Theodore Roosevelt.… It is a strange time to repudiate that common sense. While American democracy is imperfect, few outside the majority of this Court would have thought its flaws included a dearth of corporate money in politics.” Toobin notes that as “impressive” as Stevens’s dissent may have been, it was Kennedy’s opinion that “was reshaping American politics.”
Reaction - In his State of the Union address six days after the verdict, President Obama referenced Justice Ruth Bader Ginsburg’s concerns about foreign influence in American politics by saying, “With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests—including foreign corporations—to spend without limit in our elections” (see January 27-29, 2010). Democrats cheered as Obama said, “I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities.” Alito’s mouthing of the words “not true” stirred some controversy; Toobin notes that Alito was technically correct, as “Kennedy’s opinion expressly reserved the question of whether the ruling applied to foreign corporations.” However, Toobin notes, “as Olson had argued before the justices, the logic of the Court’s prior decisions suggested that foreign corporations had equal rights to spend in American elections.” With the Citizens United decision and a March 2010 decision that allowed for the formation of “super PACs” (see March 26, 2010), the way was clear for what Toobin calls “presidential campaigns in 2012 that were essentially underwritten by single individuals.” He notes the billionaires that almost single-handedly supported Republican presidential candidates (see February 21, 2012, February 16-17, 2012, February 21, 2012, March 26, 2012, and April 22, 2012), and the efforts of organizations like Crossroads GPS that have to date raised tens of millions of dollars for Republican candidates (see May 2, 2012). Toobin believes that the Court will continue to deregulate campaign finance, noting the 2011 decision that invalidated Arizona’s system of public financing that state enacted after a series of campaign finance scandals (see June 27, 2011). He concludes, “The Roberts Court, it appears, will guarantee moneyed interests the freedom to raise and spend any amount, from any source, at any time, in order to win elections.” [New Yorker, 5/21/2012]
Criticisms of the Article - Toobin’s article will engender significant criticism, from nuanced questioning of particular elements of Toobin’s story (see May 14, 2012) to accusations of outright “fictionalizing” (see May 17, 2012) and “libelous” claims (see May 15-17, 2012).

Entity Tags: Clarence Thomas, US Supreme Court, Citizens United, Barack Obama, Antonin Scalia, Anthony Kennedy, American Crossroads GPS, Tillman Act, Bipartisan Campaign Reform Act of 2002, Theodore (“Ted”) Olson, Ruth Bader Ginsberg, John Paul Stevens, John G. Roberts, Jr, Malcolm Stewart, Jeffrey Toobin, Republican Party, Hillary Clinton, Samuel Alito, Federal Election Commission

Category Tags: Court Procedures and Verdicts, Media Involvement and Responses, Campaign Finance

Law professors Thomas Goldstein, the publisher of the well-regarded Supreme Court blog “SCOTUSBlog,” and Jonathan Adler, a contributor to the renowned “Volokh Conspiracy” legal blog, write of their reactions to the article published by Jeffrey Toobin in the New Yorker alleging that Chief Justice John Roberts managed the Citizens United case into becoming a vehicle for rewriting and gutting the nation’s campaign finance laws (see May 14, 2012). Goldstein describes himself as “naturally inclined towards that reading of the history” and an opponent of the Citizens United decision, but takes issue with some of Toobin’s claims. Adler is less inclined to accept Toobin’s interpretations.
Doubt that Roberts Orchestrated Decision - Both Goldstein and Adler write that Toobin’s facts do not lead to his conclusion that Roberts orchestrated the process to allow the Court to overturn the bulk of the nation’s campaign finance legal structure (see March 27, 1990, March 27, 2002 and December 10, 2003); Adler goes one step further and says Toobin’s article “contains plenty of subtle (and not-so-subtle) spin in service of Toobin’s broader narrative of an out-of-control conservative court.” Had Roberts orchestrated the outcome from the beginning, Goldstein writes, it does not follow that Roberts would have written an original opinion much more narrowly focused than the final, transformative opinion written by Justice Anthony Kennedy (see March 15, 2009). Adler echoes this conclusion. Adler also notes that even from the outset, none of the liberal Justices were willing to rule directly against the Citizens United claim, “in no small part because the statutory argument was so weak.” Goldstein does not make this claim. Goldstein also believes that at the outset, the Court’s five conservatives—Kennedy, Roberts, Samuel Alito, Antonin Scalia, and Clarence Thomas—may not have been as solid in their support for Kennedy’s more sweeping opinion as Toobin claims.
Doubts about 'Censorship' Claim - Adler notes that Toobin’s interpretation of the “censorship” argument as stumbled into by the government’s lead legal counsel during the first argument is incorrect, saying that the government’s claim that books and magazines could be censored under a strict interpretation of the McCain-Feingold legislation is accurate. He acknowledges that during the second round of arguments, the government backed away from the claim, but not convincingly and not completely. Adler gives more credence to that legal argument than does either Toobin or Goldstein.
Doubts that Roberts Alone Decided to Reargue Case - Both authors claim that Toobin erred in claiming Roberts alone decided that the Citizens United case should be reargued (see June 29, 2009); Goldstein writes, “even if he did, that decision does not seem like an effort to decide Citizens United as broadly as possible as quickly as possible.” Goldstein says that Roberts’s decision to assign the final opinion to Kennedy was not as clever a tactical move as Toobin writes: “Kennedy had already written an opinion deciding the case on that basis that had the support of several members of the majority. It would have been fairly insulting for Roberts to take the assignment away.” He also notes that in June 2010, the Court refused to hear a lawsuit by the Republican National Committee (RNC) that would, if accepted, terminated Congressional restrictions on corporate donations to political parties. Only three of the five conservatives—Kennedy, Scalia, and Thomas—voted to hear argument. “If the Chief Justice were actually leading the charge for revisiting campaign finance law, he presumably would not have voted to affirm,” Goldstein writes.
Some Agreement that Majority Erred - Goldstein agrees with Toobin that the conservative majority may have erred in deciding Citizens United on First Amendment grounds (Adler supports the decision), but he does not agree with Toobin’s choice to single Roberts out for special attention: “[T]hat is a criticism that is just as applicable to the entire majority, as opposed to an indication of maneuvering by him. It also ignores that the alternative may have been no clear holding whatsoever—with dueling members of the majority articulating inconsistent rationales that left the law in flux.” Adler disagrees entirely with Toobin’s characterization of the Citizens United case as “judicial activism,” a characterization that Goldstein does not entirely accept, either.
Speculation about Sources - Adler speculates on Toobin’s sources, musing that to have such detail on the decision-making process would almost certainly indicate that Toobin’s sources are sitting Justices, clerks for said Justices, or others inside the Court itself, and writes: “We don’t know the identities of Toobin’s sources, and some of his claims are difficult to check. His story may reflect how some justices or clerks saw the case, but there may well be another side, and we won’t know until such time as the relevant court documents are released. I also cannot help but wonder whether some of Toobin’s sources, such as former Supreme Court clerks, may have violated their own ethical obligations in disclosing portions of the Court’s internal deliberations. Even if Toobin’s sources were sitting or former [J]ustices, there is something unseemly about the selective disclosure of what went on inside the Court on such a recent case.”
Conclusions - Goldstein concludes by writing that in the future, with a liberal perhaps replacing Kennedy on the Court, if an opportunity occurs for the Court’s new liberal majority to overturn Citizens United in its entirety, “[w]ill progressives really contend that the new and more liberal majority should leave that decision standing? I don’t think so. They will want the Court to get the decision ‘right’.” Regardless of his criticisms, he writes, Toobin’s book is a “must read,” as is the article. Adler is more measured in his praise, writing: “In any event, the article is still worth reading—as I am sure Toobin’s book will be as well. Some portions will just go down better with a healthy dose of salt.” [Tom Goldstein, 5/14/2012; Jonathan H. Adler, 5/14/2012]

Entity Tags: Antonin Scalia, Clarence Thomas, Jonathan Adler, Anthony Kennedy, Republican National Committee, John G. Roberts, Jr, Samuel Alito, Thomas Goldstein, US Supreme Court, Jeffrey Toobin

Category Tags: Court Procedures and Verdicts, Campaign Finance

Writing for the Atlantic Wire, John Hudson notes the angry draft dissent penned by retiring Supreme Court Justice David Souter in the process of the Citizens United decision that accused Chief Justice John Roberts “of engineering the outcome of the” case, as revealed in a New Yorker article by Jeffrey Toobin (see May 14, 2012). Hudson says that while many people would be interested in Souter’s unpublished dissent, they will not be able to read it any time soon. Souter has donated all of his Court documents to the New Hampshire Historical Society, where they will remain closed for 50 years. Law professor Richard Hasen makes a similar observation on his Election Law Blog. He also notes that Toobin’s account verifies much of his previous speculation as to why the Court chose to re-argue the case rather than issue an opinion after the first set of arguments (see March 15, 2009, June 29, 2009, and September 9, 2009)—Roberts and the other conservatives wanted to establish a clear guideline in the arguments for overturning campaign finance law. Hasen writes, “Perhaps one day in my lifetime some justice’s papers (but not Justice Souter’s) will reveal Justice Souter’s draft dissent.” [Atlantic Wire, 5/14/2012; Rick Hasen, 5/14/2012] Two days later, Hasen writes a column urging Souter, or another justice such as the also-retired John Paul Stevens, to release Souter’s draft dissent, even as he concedes such an event is unlikely to happen. Hasen says that Souter’s dissent may cast light on the pending Supreme Court decision over the Montana Supreme Court’s decision to “thumb… its nose at Citizens United by holding that Montana could bar corporate money from elections, given the state’s history of corruption” (see April 30, 2012). Hasen says although it is all but certain the Court will reverse the Montana high court’s decision, “Justice Souter was one of the Court’s most passionate and articulate thinkers about campaign finance, and his dissent in Citizens United likely makes a top-notch argument for the constitutionality of corporate spending limits—an argument that’s directly relevant to the Montana case. Airing his dissent could help arguments against Citizens United we already have, in the published dissent of Justice Stevens, which is somewhat meandering and ineffective—not one of his best. Souter’s retirement is no reason for him to keep quiet.… Justice Souter cares deeply about campaign finance—why not make this his continuing cause?” Hasen continues: “The Souter opinion also might reveal just how far the conservative justices on the Supreme Court were willing to go to reach out and grab Citizens United. The Court is decidedly not a place in which justice-umpires simply call balls and strikes, and Souter could remind us of that in the run-up to June’s rulings on health care reform and Arizona’s immigration law. Better to have a clear understanding of how ideology plays into some of the Court’s decisions than to preserve an illusion of pure lawyerly analysis.” Hasen concludes that releasing the dissent “isn’t about airing the Court’s dirty laundry. It’s about telling the truth about how the Court handed down Citizens United and making the best argument for why it should be overturned—and that would be a real public service.” [Slate, 5/16/2012]

Entity Tags: Montana Supreme Court, Jeffrey Toobin, David Souter, John G. Roberts, Jr, John Paul Stevens, Richard L. Hasen, John Hudson, New Hampshire Historical Society

Category Tags: Court Procedures and Verdicts, Campaign Finance

Ed Whelan of the conservative National Review is highly critical of a recent article by the New Yorker’s Jeffrey Toobin about the internal decision-making process behind the 2010 Citizens United decision (see January 21, 2010 and May 14, 2012). Elements of Toobin’s narrative have already been questioned by law professors Thomas Goldstein and Jonathan Adler (see May 14, 2012), though both professors are generally supportive of the article and recommend it for reading. In his first article, Whelan writes that the evidence “doesn’t support his thesis,” and promises a followup article that addresses “some of Toobin’s wild distortions about” the decision, including what he calls Toobin’s “baseless libel” against Chief Justice John Roberts, referencing Toobin’s implication that Roberts engineered the sweeping campaign finance reform of the decision in order to aid Republican candidates. Whelan interprets Toobin’s evidence to say that it shows Justice Anthony Kennedy, not Roberts, enlarged the scope of the Citizens United decision; however, Whelan believes neither interpretation. Some of Toobin’s interpretation of events hinges on a draft dissent penned by Justice David Souter that was withdrawn after Roberts agreed to let the case be re-argued (see June 29, 2009 and September 9, 2009). Whelan implies that he doubts the existence of such a dissent, an implication that cannot be disproven, as Souter sealed his Court records after his retirement (see May 14-16, 2012). If the dissent does exist, Whelan doubts that Toobin has read it. He concludes by casting aspersions on Toobin’s assertion that Roberts engineered the results of the decision “without leaving his own fingerprints.” Roberts cast the deciding vote in the 5-4 split, Whelan notes, and adds that Roberts did not entirely escape criticism for the ruling after it was issued. [National Review, 5/15/2012]
Part Two - The next day, Whelan publishes the second part of the article, and condemns Toobin for asserting that Roberts crafted the decision with the intention of helping Republican candidates in upcoming elections. He calls the assertion “scurrilous,” and says Toobin presents “not an iota of evidence” for the claim. Whelan then writes that no evidence exists to show that the decision has helped Republican candidates more than Democrats (see November 1, 2010 and January 21, 2012), apparently ignoring two years’ worth of evidence showing that in the wake of decisions, outside funding of Republican candidates has swamped Democrats’ efforts to retain parity (see August 2, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, October 30, 2010, Mid-November 2010, January 26, 2011 and After, March 2011, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 8, 2011, December 1, 2011, January 6, 2012, January 23, 2012, February 6, 2012, February 9, 2012, February 21, 2012, February 21, 2012, February 21, 2012, March 9, 2012, March 26, 2012, Late March 2012, April 13-20, 2012, April 22, 2012, and May 2, 2012). He cites an article by Weekly Standard contributor Andrew Ferguson that denies the “rich and powerful” donate more to Republicans than Democrats, where the only “evidence” Ferguson cited was his assertion that “Democrats are the party of what Democrats used to call the superrich. Only Democrats seem not to realize this.” [National Review, 5/16/2012]
Final Thoughts - Whelan’s final article on the subject approvingly cites an equally negative critique of the Toobin article from Weekly Standard writer Adam White (see May 17, 2012), and insults law professor Richard Hasen’s perspective on the matter (see May 14-16, 2012); after noting that Hasen is a “[l]aw professor and election-law expert,” Whelan advises Hasen to read White’s column more closely. He also derides the idea that the Souter dissent is “secret,” noting that it would have been circulated among the other eight justices, and Justice John Paul Stevens would have had it available to him for his own published dissent. He then quotes Hasen’s critique of Stevens’s “somewhat meandering and ineffective” dissent, turns the phrasing around to insult Souter’s writing style, and says that Souter’s dissent may “reflect… too much of Souter’s draft dissent.” In attacking Hasen’s request for Souter to release the dissent, he contradicts himself by noting that the dissent is “confidential case information” that should remain out of public view. [National Review, 5/17/2012]

Entity Tags: John G. Roberts, Jr, Anthony Kennedy, Andrew Ferguson, Adam White, David Souter, Jeffrey Toobin, Richard L. Hasen, Thomas Goldstein, John Paul Stevens, Jonathan Adler, Ed Whelan

Category Tags: Court Procedures and Verdicts, Campaign Finance

US District Court Judge Katherine B. Forrest (Southern Division, New York) finds a controversial section of the 2012 National Defense Authorization Act (NDAA) unconstitutional and issues a preliminary injunction barring enforcement. Section 1021(b)(2) of the NDAA authorizes indefinite military detention without trial of any person “who was a part of or substantially supported al-Qaeda, the Taliban, or associated forces that are engaged in hostilities against the United States or its coalition partners, including any person who has committed a belligerent act or has directly supported such hostilities in aid of such enemy forces” (see December 15, 2011). The law makes no exception for US persons. It has been under review by the court because seven individuals (journalists, activists, and politicians) sued, alleging this section is unconstitutional because it violates their First Amendment right to freedom of speech and association and Fifth Amendment right to due process, and that it imposes military jurisdiction on civilians in violation of Article III and the Fifth Amendment (see January 13, 2012). [OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021, 5/16/2012]
Judge Finds NDAA Undermines Protected Speech and Association - The plaintiffs argued that, due to their association with and/or reporting on al-Qaeda and the Taliban in the course of their work as journalists and activists, they might be subject to detention under § 1021, and that, due to the vagueness of the law, there was no way to know if the law could be used against them. In testimony and briefs, the plaintiffs gave examples of how they had altered their speech and behavior out of fear they might be subject to detention. In her Opinion and Order, Forrest notes: “The Government was unable to define precisely what ‘direct’ or ‘substantial’ ‘support’ means.… Thus, an individual could run the risk of substantially supporting or directly supporting an associated force without even being aware that he or she was doing so.” And: “The Government was given a number of opportunities at the hearing and in its briefs to state unambiguously that the type of expressive and associational activities engaged in by plaintiffs—or others—are not within § 1021. It did not. This Court therefore must credit the chilling impact on First Amendment rights as reasonable—and real. Given our society’s strong commitment to protecting First Amendment rights, the equities must tip in favor of protecting those rights.” [OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021, 5/16/2012]
Judge Rejects All Three Arguments Made by the Government - Forrest summarizes the government’s position in this way: “[F]irst, that plaintiffs lack standing; second, that even if they have standing, they have failed to demonstrate an imminent threat requiring preliminary relief; and finally, through a series of arguments that counter plaintiffs’ substantive constitutional challenges, that Section 1021 of the NDAA is simply an ‘affirmation’ or ‘reaffirmation’ of the authority conferred by the 2001 Authorization for Use of Military Force.” Rejecting the first and second arguments, Forrest finds the plaintiffs do have standing because their fear of imminent indefinite detention without charge or trial is reasonable, due to the vagueness of § 1021 and the government’s failure to state that the plaintiff’s activities aren’t covered under section 1021, leaving the plaintiffs with no way of knowing if they might be subject to detention. Furthermore, Forrest finds the plaintiffs have suffered actual harm, evidenced by incurring expenses and making changes in speech and association due to fear of potential detention. Regarding the third argument, Forrest rejects the idea that § 1021 could simply be affirming the AUMF, because “[t]o so hold would be contrary to basic principles of legislative interpretation that require Congressional enactments to be given independent meaning”; otherwise § 1021 would be “redundant” and “meaningless.” Furthermore, Forrest finds § 1021 of the NDAA is substantively different than the AUMF; it is not specific in its scope and “lacks the critical component of requiring… that an alleged violator’s conduct must have been, in some fashion, ‘knowing.’” [OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021, 5/16/2012]
Judge Finds Lawsuit Will Likely Succeed on Merits, Justifying Injunction - Based on the information put forward by the seven plaintiffs and the government, Forrest concludes the lawsuit will likely succeed on its merits, thus it should be allowed to proceed, stating: “This Court is left then, with the following conundrum: plaintiffs have put forward evidence that § 1021 has in fact chilled their expressive and associational activities; the Government will not represent that such activities are not covered by § 1021; plaintiffs’ activities are constitutionally protected. Given that record and the protections afforded by the First Amendment, this Court finds that plaintiffs have shown a likelihood of succeeding on the merits of a facial challenge to § 1021.” Forrest also notes that issuing a preliminary injunction barring enforcement is unusual, but called for given the evidence and circumstances, stating: “This Court is acutely aware that preliminarily enjoining an act of Congress must be done with great caution. However, it is the responsibility of our judicial system to protect the public from acts of Congress which infringe upon constitutional rights.” [OPINION AND ORDER: 12 Civ. 331 (KBF) Hedges et al v. Obama, preliminary injunction enjoining enforcement of NDAA Section 1021, 5/16/2012]

Crossroads GPS, a Republican “nonprofit” organization working on behalf of presidential candidate Mitt Romney (R-MA) and other Republicans, plans on spending some $25 million on ads attacking President Obama. The ads will air in 10 states. $8 million of that money is allocated towards ads beginning to run in Colorado, Florida, Iowa, Michigan, North Carolina, New Hampshire, Nevada, Ohio, Pennsylvania, and Virginia. The ad, according to Associated Press reports, attacks Obama on his economic policies. The Obama campaign, which operates under different campaign finance restrictions than the “independent” Crossroads GPS, has aired anti-Romney ads in recent days. [National Journal, 5/16/2012]

Entity Tags: Barack Obama, Willard Mitt Romney, American Crossroads GPS

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Columnist Adam White, writing for the conservative Weekly Standard, lambasts a recent article by the New Yorker’s Jeffrey Toobin about the internal decision-making process behind the 2010 Citizens United decision (see January 21, 2010 and May 14, 2012). Most publications describe the decision as allowing corporations and labor unions to spend money freely in campaigns, but White defines it differently, calling it an affirmation of “a corporation’s First Amendment right to spend money on independent speech on political issues, even when that speech criticizes candidates for office” (see January 21, 2010, January 22, 2010, and February 2, 2010). Law professors Tom Goldstein and Jonathan Adler have found some “spin” in Toobin’s account of events (see May 14, 2012), and law professor Richard Hasen has asked that a draft dissent highly critical of the decision and its methodology be made public to shed light on Toobin’s narrative (see May 14-16, 2012). However, White goes significantly further than any of the professors in tarring Toobin’s article, and in some instances Toobin himself. White writes flatly that everyone outside of “Toobin’s base,” presumably meaning liberals who comprise “Chief Justice [John] Roberts’s critics,” is “skeptical” of the article, and cites Goldstein and National Review columnist Ed Whelan (see May 15-17, 2012) as examples of those presumed skeptics who have “poured cold water” on the story. According to White, Toobin “front-load[ed] his story with easily disprovable mischaracterizations of the case” that [e]ven a cursory review of the case’s briefs, and contemporary news coverage, disproves Toobin’s thesis” of Roberts using a narrowly drawn case to revamp and invalidate most of US campaign finance law. White writes that Toobin’s characterization of the narrow focus of the case is wrong: “The First Amendment stakes were well known, and much discussed, in the run-up to oral argument.” He cites the New York Times editorial published at the time of the first arguments, in March 2009 (see March 23, 2009), warning that if the Court ruled in favor of Citizens United, “it would create an enormous loophole in the law and allow corporate money to flood into partisan politics in ways it has not in many decades. It also would seriously erode the disclosure rules for campaign contributions.” He also notes that respected court reporter Lyle Denniston warned before the oral arguments that the Citizens United case threatened to deliver “a sweeping rejection of Congressional authority to regulate campaign spending by corporations.” Toobin himself made some of the same arguments on CNN the day of the arguments, White notes. He calls Toobin’s version of events in the article a “clumsy fictionalization of the case” designed to vilify Roberts. He also questions Toobin’s characterization of the first arguments from Citizens United (CU) lawyer Theodore Olson, going considerably further than either Goldstein or Adler in accusing Toobin of fundamentally misrepresenting Olson’s original, narrowly focused case. According to White, Olson’s opening argument claimed that the restriction being challenged by CU was “unconstitutional as applied to the distribution of Citizens United’s documentary film through video on demand… [it] plainly exceeds Congress’s sharply limited authority to abridge the freedom of speech.” White claims that Olson cited First Amendment grounds in a portion of the arguments not reported by Toobin, and quotes from Olson’s argument; that quote describes Olson’s citation of the 2007 case Wisconsin Right to Life (WRTL—see Mid-2004 and After and June 25, 2007), which indeed used First Amendment grounds for its successful positioning, and quotes Olson as saying the WRTL decision “errs on the side of permitting the speech, not prohibiting the speech.” White accuses Toobin of deliberately misrepresenting Olson’s argument to “advanc[e] his own anti-Roberts narrative.” White is unable to check the accuracy of Toobin’s behind-the-scenes narrative, as Toobin’s sources are not revealed in the article, but White is “skeptical,” writing, “Given Toobin’s inability of accurately handling straightforward, easily confirmable facts, why should anyone take at face value Toobin’s description of the justices’ private discussions, and their draft opinions—especially when Toobin only describes, never quotes, those deliberations or draft opinions?” Like Adler, Toobin questions the ethics of the person or persons at the Court who “leaked” the story to Toobin. [Weekly Standard, 5/17/2012]

Entity Tags: New York Times, Ed Whelan, Adam White, Jeffrey Toobin, Lyle Denniston, John G. Roberts, Jr, Theodore (“Ted”) Olson, Jonathan Adler, Richard L. Hasen, Thomas Goldstein

Category Tags: Court Procedures and Verdicts, Campaign Finance

Twenty-one states and the District of Columbia join a brief filed by New York Attorney General Eric Schneiderman asking the US Supreme Court to reaffirm Montana’s ban on corporate spending. The brief is in response to an upcoming Court hearing on the Montana Supreme Court’s upholding of the Montana ban, which contradicts the 2010 Citizens United ruling (see January 21, 2010, December 30, 2011 and After, January 4, 2012, February 10-17, 2012, and April 30, 2012). The brief is signed by Schneiderman, a Democrat, and 22 other attorneys general, both Democrats and Republicans. In the brief, Schneiderman writes, “The Montana law at issue here, like many other state laws regulating corporate campaign expenditures in state and local elections, is sharply different from the federal law struck down in Citizens United, and the Court need not revise its ruling in Citizens United in order to sustain the challenged Montana law.” Referring to briefs asking the Court to reverse the Montana high court ruling without a review, Schneiderman writes, “Even if the challenged Montana law were identical to the federal statute struck down in Citizens United—and, as shown below, it is far from identical—disposing of this case on the merits would require a fully considered analysis that takes these constitutional distinctions into account.” The states with Democratic attorneys general include Arkansas, California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, Rhode Island, Vermont, and West Virginia. States with Republican attorneys general include Idaho, Utah, and Washington. [International Business Times, 5/21/2012; Think Progress, 5/21/2012]

Entity Tags: US Supreme Court, Montana Supreme Court, Eric Schneiderman

Category Tags: Court Procedures and Verdicts, Campaign Finance

The press reports that Harold Hamm, the billionaire CEO of oil firm Continental Resources, gave $985,000 to the “independent” super PAC supporting the presidential campaign of Mitt Romney, Restore Our Future (ROF—see June 23, 2011), three days after he became a Romney campaign advisor. The information comes from financial disclosure forms filed today with the Federal Election Commission (FEC). Hamm gave the Romney campaign the maximum allowed donation of $2,500 in October 2011. He has also contributed $61,600 to the Republican National Committee (RNC). On April 1, 2012, Hamm became the Romney campaign’s top advisor, and made the huge donation to ROF on April 3. NBC reporter Michael Isikoff writes that Hamm’s donation “is a new example of how big super PAC donors can make their policy views heard by the campaigns they are supporting.” Hamm’s contribution was the second largest donation garnered by ROF during April. Hamm’s company is the largest leaseholder of the Bakken, the large shale formation in North Dakota; as a result, Hamm is a strong proponent of the proposed Keystone XL pipeline project and a vocal critic of the Obama administration’s energy policies, particularly the administration’s decision to postpone the Keystone project and its efforts to curb tax breaks for oil exploration. Hamm chairs the Romney campaign’s “Energy Policy Advisory Group,” tasked with creating a new “pro-jobs, pro-market, pro-American” energy agenda, as the campaign has described it. The day Hamm was announced as the advisor for the Romney campaign, he said he was backing Romney in part because he was “acutely aware” of “how outrageously [Obama] has attacked energy producers in particular.” Isikoff writes that Hamm’s donations to ROF “could potentially raise questions about the connections between his donations and his role in shaping campaign policies that might benefit his company.” Neither Romney’s campaign nor Continental Resources will reveal the names of the other members of the Energy Policy Advisory Group, or answer questions about Hamm’s role in the campaign. [MSNBC, 5/21/2012] Two days after the filing, Rebecca Leber of the liberal news Web site Think Progress will write, “Campaigns and super PACs are not legally allowed to coordinate, but in reality many of Romney’s donors have turned to super PACs to escape contribution ceilings” (see January 31, 2012). [Think Progress, 5/23/2012]

Entity Tags: Mitt Romney presidential campaign (2012), Energy Policy Advisory Group, Continental Resources, Federal Election Commission, Michael Isikoff, Republican National Committee, Harold Hamm, Rebecca Leber, Restore Our Future, Obama administration

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Senator Sheldon Whitehouse (D-RI) tells a reporter that the Supreme Court issued its 2010 Citizens United decision (see January 21, 2010) in part because none of its members have ever been elected officials and thusly they have no personal experience with the corruption that comes with unregulated money being allowed into political campaigns. The Court’s majority opinion found that “independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.” Whitehouse says in part: “Unfortunately you had the five right-wing judges, none of whom have ever run for any office ever and have zero political experience between the five of them, offering opinions about what money can do in elections.… So clearly the finding of fact in Citizens United that unlimited corporate spending cannot either increase the risk of corruption or increase the appearance to the public that there’s corruption is ludicrous.… The president asked me who I thought, you know, what were the characteristics of somebody that should be appointed to the Court, and I said I think it should be somebody who has some actual political experience out there so that they are not operating in this political arena with absolutely no knowledge. Even if they wanted to come to the result that Citizens United came to, I think those judges would have had a hard time getting there if they’d had actual practical political experience because they would have known what a preposterous finding they were making.” Legal scholar Ian Millhiser of the liberal news Web site Think Progress writes: “The current Supreme Court includes eight former US Court of Appeals judges and one former law school dean. Four of the five current justices responsible for Citizens United served as political appointees in Republican administrations. The justices who decided Brown v. Board of Education (see May 17, 1954), by contrast, included one former governor, three former US senators, and one former state lawmaker.” [Think Progress, 5/23/2012]

Entity Tags: Ian Millhiser, US Supreme Court, Sheldon Whitehouse

Category Tags: Court Procedures and Verdicts, Campaign Finance

President Obama’s Justice Department files a motion urging a federal judge to reconsider a ruling and order that blocked enforcement of a law authorizing indefinite military detention. The case is Hedges v. Obama and the law at issue is section 1021 of the 2012 National Defense Authorization Act (NDAA). The filing calls Judge Katherine B. Forrest’s preliminary injunction barring enforcement of Section 1021(b)(2) of the NDAA (see May 16, 2012) “extraordinary” as it restricts the president’s authority during wartime. It also questions whether “an order restraining future military operations could ever be appropriate,” and disputes Forrest’s finding that the plaintiffs who had sued to overturn the law (see January 13, 2012) have standing to sue. In footnote 1, the government states that it is construing the order “as applying only as to the named plaintiffs in this suit.” Forrest will clarify in a subsequent Memorandum Opinion and Order that by blocking enforcement of § 1021(b)(2), the only remaining persons covered are those defined in § 1021(b)(1): “A person who planned, authorized, committed, or aided the terrorist attacks that occurred on September 11, 2001, or harbored those responsible for those attacks” (see June 6, 2012). [Hedges v. Obama: Government's Memorandum of Law in Support of Its Motion for Reconsideration of the May 16, 2012, Opinion and Order, 5/25/2012]
Background - The NDAA was passed by Congress on December 15, 2011 (see December 15, 2011) and signed into law by President Obama on December 31 (see December 31, 2011). The provision for indefinite military detention of any person accused of supporting groups hostile to the United States, without charge or trial, began to generate controversy soon after it was disclosed (see July 6, 2011 and after).

Entity Tags: Noam Chomsky, US Congress, White House, US Department of Justice, United States District Court, New York, Southern Division, US Department of Defense, Mitch McConnell, Nancy Pelosi, Katherine B. Forrest, Carl Mayer, Bruce Afran, Birgitta Jónsdóttir, Barack Obama, Alexa O’Brien, Chris Hedges, Leon Panetta, Kai Wargalla, Daniel Ellsberg, John McCain, John Boehner, Jennifer Bolen, Eric Cantor, Harry Reid

Category Tags: Impositions on Rights and Freedoms, Expansion of Presidential Power, Detainments Outside US, Detainments in US, Gov't Violations of Prisoner Rights

Senate races are seeing the impact of huge “independent” expenditures that resulted from the 2010 Citizens United decision (see January 21, 2010), and as in so many other instances, Republicans are reaping most of the benefits of these expenditures (see August 2, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, October 30, 2010, Mid-November 2010, January 26, 2011 and After, March 2011, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 8, 2011, December 1, 2011, January 6, 2012, January 23, 2012, February 6, 2012, February 9, 2012, February 21, 2012, February 21, 2012, February 21, 2012, March 9, 2012, March 26, 2012, Late March 2012, April 13-20, 2012, April 22, 2012, and May 2, 2012). Senator Sherrod Brown (D-OH) and former Governor Tim Kaine (D-VA) are being outspent by more than a 3-1 ratio by their Republican opponents and the third-party groups that support those opponents. Brown and his allies have spent some $2.5 million on television advertising, but are being challenged by an $8 million expenditure by such groups as American Crossroads and Crossroads GPS. Brown says: “These individuals, these billionaires, realize that small numbers of people can have a huge impact. It’s very one-sided. This outside money is bad for the system.” Kaine and his supporters have spent $385,000, but face a $1.9 million expenditure by such groups as the US Chamber of Commerce. Crossroads GPS is airing a series of ads accusing Kaine of having a “reckless” spending record as governor, including turning a $1 billion surplus into an almost-$4 billion shortfall, an assertion fact-checking organizations have declared to be false. In turn, Crossroads GPS spokesperson Jonathan Collegio upped the claim, telling a reporter that Kaine had left office with a $3 trillion shortfall. The Virginia Constitution requires the state to maintain a balanced budget, and factcheckers have said that Kaine balanced budgets during his term. Missouri Republicans are enjoying a $7 million-$2 million disparity in their challenge to Senator Claire McCaskill (D-MO). In Florida, US Representative Connie Mack (R-FL) and his supporters have run almost 6,500 television ads against Senate incumbent Bill Nelson (D-FL) with no response from Nelson’s campaign. One Mack ad accused Nelson of supporting a tax-funded program to research the effects of cocaine on monkeys, a claim factcheckers have found to be false. Another Mack ad attempts to link Nelson to the Obama administration’s health care reform legislation, which Republicans have dubbed “Obamacare,” and says 20 million people will lose medical coverage because of the reform, a claim factcheckers have found to be false. The re-election campaign of President Obama is hoarding resources, expecting to have to combat an onslaught of spending by Republican contender Mitt Romney (R-MA) and his supporters (see Late May 2012), and is thusly contributing little to Congressional races. Advertising executive Ken Goldstein says: “There’s so much oxygen being sucked up by the Obama campaign. Democrats are also not going to have the same kind of money that Republican outside groups are going to have.” Obama campaign manager Jim Messina confirms that the Obama campaign is not prepared to contribute large sums to Congressional contenders, saying: “Our top priority and focus is to secure the electoral votes necessary to re-elect the president. There’s no doubt that Democratic campaigns face a challenging new political landscape with special interests giving unlimited amounts to super PACs.” Scott Reed, a US Chamber of Commerce official who worked on the 1996 Bob Dole presidential campaign, says the sharp disparity in spending will not matter at the end of the campaigns: “It comes out in the wash at the end of the day in the sense that Obama is a ferocious fundraiser-in-chief. There’s no question the pro-business and pro-growth groups are spending early and more aggressively than ever because they recognize the stakes of the election are so high.” [Bloomberg News, 5/29/2012]

Entity Tags: Clarence W. (“Bill”) Nelson, US Chamber of Commerce, American Crossroads, 2012 Obama presidential election campaign, Claire McCaskill, Sherrod Brown, Tim Kaine, Obama administration, Connie Mack, Jim Messina, Scott Reed, Ken Goldstein, American Crossroads GPS, Mitt Romney presidential campaign (2012)

Category Tags: Campaign Finance

Retired Supreme Court Justice John Paul Stevens lambasts the Court’s 2010 Citizens United decision (see January 21, 2010), in which he strongly dissented (see May 14, 2012). Stevens has criticized the decision in earlier statements. He continues that trend in a speech given to the Clinton School of Public Service at the University of Arkansas. He agrees with President Obama’s warning that “foreign entities” could bankroll US elections (see January 27-29, 2010 and October 2010), and challenges the Court to prove that such concerns are “not true,” as Justice Samuel Alito famously mouthed during Obama’s speech at the time by reconciling the Court’s finding that the First Amendment “generally prohibits the suppression of political speech based on the speaker’s identity” with its subsequent decision to uphold a ban on campaign spending by non-citizens in Bluman v. Federal Election Commission (see August 8, 2011). Alito’s reaction to Obama’s warning “persuade[s] me that that in due course it will be necessary for the Court to issue an opinion explicitly crafting an exception that will create a crack in the foundation of the Citizens United majority opinion,” Stevens says. In doing so, “it will be necessary to explain why the First Amendment provides greater protection to the campaign speech of some non-voters than to that of other non-voters.” Stevens is referring to corporations and labor unions as “non-voters,” as is the Canadian citizen who filed the Bluman lawsuit. The Bluman case, Stevens says, “unquestionably provided the Court with an appropriate opportunity to explain why the president had misinterpreted the Court’s opinion in Citizens United. [T]he Court instead took the surprising action of simply affirming the district court without comment and without dissent.” Stevens says the two cases pose a legal conundrum—“notwithstanding the broad language used by the majority in Citizens United, it is now settled, albeit unexplained, that the identity of some speakers may provide a legally acceptable basis for restricting speech.” At some point, Stevens says, the Court will have to grapple with the effects of the decision. “I think it is likely that when the Court begins to spell out which categories of non-voters should receive the same protections as the not-for-profit Citizens United advocacy group, it will not only exclude terrorist organizations and foreign agents, but also all corporations owned or controlled by non-citizens, and possibly even those in which non-citizens have a substantial interest. Where that line will actually be drawn will depend on an exercise of judgment by the majority of members of the Court, rather than on any proposition of law identified in the Citizens United majority opinion.” Stevens does not explicitly reference the upcoming Court case where it will have to rule on Montana’s ban on corporate spending (see December 30, 2011 and After, January 4, 2012, February 10-17, 2012, and April 30, 2012), but he says the Court was wrong to overturn a precedent that allows states to bar corporate spending from outside their borders. For states such as Montana with those laws in effect, “those corporate non-voters were comparable to the non-voting foreign corporations that concerned President Obama when he criticized the Citizens United majority opinion.” He says, “If the First Amendment does not protect the right of a graduate of Harvard Law School to spend his own money to support the candidate of his choice simply because his Canadian citizenship deprives him of the right to participate in our elections, the fact that corporations may be owned or controlled by Canadians—indeed, in my judgment, the fact that corporations have no right to vote—should give Congress the power to exclude them from direct participation in the electoral process.” [Huffington Post, 5/30/2012; University of Arkansas Clinton School of Public Service, 5/30/2012 pdf file]

Entity Tags: Samuel Alito, Barack Obama, Citizens United, US Supreme Court, Clinton School of Public Service, John Paul Stevens

Category Tags: 2006 US Attorney Firings

Politico reports that Republican super PACs and other outside groups are coordinating under the leadership of what it calls “a loose network of prominent conservatives, including former Bush political advisor Karl Rove, the oil billionaire Koch brothers, and Tom Donohue of the US Chamber of Commerce,” to spend an unprecedented $1 billion between now and November to help Republicans win control of the White House and Congress. The plans include what Politico calls “previously undisclosed plans for newly aggressive spending by the Koch brothers” (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, and Late March 2012) to organize funding for county-by-county operations in key states, using tools such as the voter database Themis (see April 2010 and After) to build “sophisticated, county-by-county operations in key states.” The Kochs’ organizations have upped their spending plans to $400 million. Just the Kochs’ spending will outstrip the $370 million spent by the 2008 John McCain presidential campaign, and the $1 billion will exceed the $750 million spent by the 2008 Barack Obama campaign. The “independent” super PAC supporting the presidential campaign of Mitt Romney, Restore Our Future (ROF—see June 23, 2011 and January 31, 2012), plans on spending $100 million on the campaign to unseat Obama. American Crossroads and Crossroads GPS, the two Rove-led groups coordinating much of the Republican spending efforts, plan to spend $300 million on efforts to elect Romney and other Republicans (see February 21, 2012). The raised millions will go to, among other things, television, radio, and Web advertising; voter turnout efforts; mail and telephone appeals; and absentee- and early-balloting drives. The $1 billion is entirely “outside” spending. Romney and the Republican National Committee (RNC) intend to raise some $800 million on their own. According to Politico: “The Republican financial plans are unlike anything seen before in American politics. If the GOP groups hit their targets, they likely could outspend their liberal adversaries by at least two-to-one, according to officials involved in the budgeting for outside groups on the right and left.… The consequences of the conservative resurgence in fundraising are profound. If it holds, Romney and his allies will likely outraise and outspend Obama this fall, a once-unthinkable proposition. The surge has increased the urgency of the Democrats’ thus-far futile efforts to blunt the effects of a pair of 2010 federal court rulings—including the Supreme Court’s seminal Citizens United decision (see January 21, 2010)—that opened the floodgates for limitless spending, and prompted Obama to flip-flop on his resistance to super PACs on the left.” The super PAC supporting Obama’s re-election, Priorities USA Action, has not raised anywhere near the amount of money being garnered by Rove and the Koch brothers, partly because of Obama’s initial reluctance to have such groups operating on his behalf (see January 18, 2012). US labor unions may be able to raise some $200 to $400 million on behalf of Obama and other Democrats. The AFL-CIO’s Michael Podhorzer says his organization does not intend to try to match the Republican donor groups, but instead will spend most of its money reaching out to union members and other workers: “Progressives can’t match all the money going into the system right now because of Citizens United, so we have to have a program that empowers the worker movement.” Politico notes that billionaire Sheldon Adelson single-handedly kept the Newt Gingrich (R-GA) primary challenge afloat (see December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, January 23, 2012, February 21, 2012, February 21, 2012, March 26, 2012, April 22, 2012, and May 2, 2012), and billionaire Foster Friess (see February 16-17, 2012) was the key funder for Republican primary challenger Rick Santorum (R-PA). Outside money helped “tea party” challengers defeat incumbents like Senator Richard Lugar (R-IN) in the 2012 primaries (see February 21, 2012). “Republicans have taken one big lesson away from campaigns conducted to date in 2011 and 2012,” Politico states: “outside money can be the difference-maker in elections.” [Politico, 5/30/2012]

Entity Tags: Foster Friess, Sheldon Adelson, Tom Donohue, American Crossroads GPS, American Crossroads, David Koch, Richard Lugar, Rick Santorum, Republican National Committee, Karl C. Rove, Michael Podhorzer, Newt Gingrich, Priorities USA Action, Charles Koch, Politico, Restore Our Future

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Data analysis by the liberal news magazine Mother Jones for campaign fundraising in the presidential campaigns has the Republicans and their supporters outraising and outspending Democrats almost across the board. Super PACs continue to lead in money raised and spent; Republicans outraised Democrats by a 7.7:1 ratio. These third-party “independent” groups (see March 26, 2010) have raised $218 million between them. President Obama has outraised challenger Mitt Romney (R-MA) by over two to one, $217.1 million to $97.9 million. But super PACs operating on Romney’s behalf have more than closed that gap. Two ads released almost simultaneously by the Romney campaign and the super PAC American Crossroads in recent days criticize Obama on the same grounds, both criticizing federal investments in energy companies like Solyndra. A similar pattern has recently been observed when the Obama campaign and his super PAC Priorities USA recently released television ads during the same time period. Mother Jones observes, “It’s illegal for candidates and super PACs to coordinate their messages, but even if they did, the fines would likely be negligible, and the Federal Election Commission can’t even agree on what exactly defines ‘coordination.’” [Center for Responsive Politics, 2012; Mother Jones, 6/1/2012]

Entity Tags: Mother Jones, Mitt Romney presidential campaign (2012), 2012 Obama presidential election campaign, American Crossroads

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

A federal judge denies the US government’s request (see May 25, 2012) to reconsider her order (see May 16, 2012) blocking enforcement of a law authorizing indefinite military detention, without charge or trial, of anyone, including US citizens arrested in the United States, accused of supporting groups hostile to the United States. Section 1021 of the 2012 National Defense Authorization Act (NDAA—see December 15, 2011) is under review in the case of Hedges v. Obama (see January 13, 2012) and Judge Katherine B. Forrest of the US District Court, New York Southern Division had issued a preliminary injunction enjoining enforcement of the law after finding it unconstitutional.
Controversy over Scope of Detention Authority - The US government had also stated in its request for reconsideration that it was interpreting Forrest’s order as applying only to the plaintiffs in the case. Forrest clarifies in her subsequent Memorandum Opinion and Order that by enjoining enforcement of § 1021(b)(2), the only remaining persons the law can be applied to are those defined in § 1021(b)(1): “A person who planned, authorized, committed, or aided the terrorist attacks that occurred on September 11, 2001, or harbored those responsible for those attacks.” This definition of covered persons is the same as the one given in the 2001 Authorization for Use of Military Force, passed by Congress following the September 11 attacks (see September 14-18, 2001). The Supreme Court has only ruled on a narrow range of relevant detention issues; one oft-cited case is Hamdi v. Rumsfeld (see June 28, 2004). Lower courts have produced a variety of opinions, some upholding an expansive view of detention authorities, others challenging it. In § 1021 of the NDAA, Congress asserted that it “affirms” detention authority granted under the AUMF, and does not “expand… the scope of the [AUMF].” Senator Carl Levin (D-MI), during a debate on the NDAA, explained the language in this way: “[W]e make clear whatever the law is. It is unaffected by this language in our bill” (see December 15, 2011). Congress included a separate, broader definition of covered persons in § 1021(b)(2) that potentially covered anyone alleged by the government to have supported groups hostile to the US, including US citizens arrested in the United States. This section is what prompted Hedges to sue, alleging these provisions violated his First and Fifth Amendment rights (see January 13, 2012). Forrest found the bill’s broad and vague provisions for indefinite military detention to be unconstitutional, and Congress’s statement that it was only affirming established law to be “contrary to basic principles of legislative interpretation that require Congressional enactments to be given independent meaning” (see May 16, 2012). [MEMORANDUM OPINION & ORDER: Hedges et al v. Obama 12 Civ. 331 (KBF) affirming preliminary injunction and scope, 6/6/2012]

Entity Tags: US Department of Justice, Katherine B. Forrest, Carl Levin, United States District Court, New York, Southern Division, National Defense Authorization Act of 2012

Category Tags: Impositions on Rights and Freedoms, Expansion of Presidential Power, Detainments Outside US, Detainments in US, Gov't Violations of Prisoner Rights

Republicans on the House Appropriations Committee block a proposal that would force television stations to make records about political advertisement buys public on the Internet. The Federal Communications Commission (FCC) had approved the proposal in April 2012. It would require television stations affiliated with the four top networks in the 50 largest markets to post political ad sales online; stations are already required to make the records available on request, but most stations keep the records on paper, making it difficult to compile and track the information as it is recorded. The data includes the rates charged for political spots, the dates the spots aired, and the class of time purchased. Broadcasters had argued against the proposal, claiming that it would cost them money and would force them to reveal information that would make them less competitive. Broadcasters are expected to make as much as $3 billion this year from political advertisement sales. Committee chair Hal Rogers (R-KY) argued that “television station fiscal matters are private and should be kept private.” But Meredith McGehee of the Campaign Legal Center says Rogers’s argument is “contrary to existing laws that have been on the books for decades,” because the information is already available to the public. She calls the idea that switching from paper would be a burden for stations “ridiculous.” [Los Angeles Times, 6/8/2012]

Entity Tags: Meredith McGehee, Federal Communications Commission, House Committee on Appropriations, Hal Rogers

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

YG Network logo.YG Network logo. [Source: BizPacReview]The YG Network, a Republican political organization nicknamed the “Young Guns,” tells Republican House members that if they vote for specific House proposals, they will be rewarded by advertisements on their behalf to be paid for by YG. The organization is run by former aides to House Majority Leader Eric Cantor (R-VA), but denies having any ties to the lawmaker. Congressional leaders such as Cantor are not permitted to offer anything in exchange for a vote. YG is launching a radio advertising campaign that will run ads praising Republican House members who voted with Cantor to repeal a tax on medical devices, and advises those members to “keep voting to stop tax increases arriving next year,” referring to a group of tax rates that will expire at the end of 2012. An aide says the YG Network is trying to “leverage the floor schedule and votes scheduled by Cantor to help members at home.” According to Politico, “[i]f a [Republican House] member—specifically, an ally of Cantor and Majority Whip Kevin McCarthy (R-CA)—votes for a leadership priority, they can look forward to an ad in their district.” The aide says that YG hopes the effort becomes “another tool in the belt to call attention to members and help encourage cohesion on difficult-to-whip votes.” YG advisor Brad Dayspring explains: “For too long, a lot of the good legislation that the House has passed has gone unnoticed because [Senate Democrats] have sat on [their] hands for a year and a half. Too often, the only outside group activity occurring back in districts comes in the form of an attack against new conservative lawmakers. The YG Network hopes to change the conversation by highlighting the positive work that the new generation of conservatives have done, calling attention to legislative votes that would help create jobs, remove the red tape weighing down small business, and to repeal ‘Obamacare.’” A number of “Young Guns” legislators will receive radio ads on their behalf. [Politico, 6/10/2012] Paul Ryan of the Campaign Legal Center says that what YG is doing is probably legal, but, he adds, “many would characterize the way Washington politics has long worked as ‘legalized bribery.’” The Supreme Court’s 2010 Citizens United ruling (see January 21, 2010) is what makes activities like this possible, he says: “When you allow unlimited special interest money in politics, this type of behavior should be expected. Criticism is fair, but nevertheless, it’s predictable. This is the world that this Supreme Court majority has given us with the Citizens United decision. It’s troubling, but entirely predictable. Even more troubling is the likelihood of conversations behind closed doors—threats of huge corporate-funded independent spending campaigns made [for those who don’t act in the corporation’s interest on a given piece of legislation]. And much of it, we will never hear about.” Ryan warns that he expects lobbyists to meet with legislators and say, “you saw what we did to so-and-so,” referring to a lawmaker who did not behave in the interest of the lobbyist’s client. Ryan says the lobbyist will ask, “Do you want that to happen to you?” [Think Progress, 6/11/2012]

Entity Tags: Brad Dayspring, YG Network, Kevin McCarthy, Paul S. Ryan, Eric Cantor

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Rolling Stone magazine reports that despite no evidence of voter fraud except in extremely isolated incidents, Republicans in over a dozen states are passing laws that disenfranchise voters under the guise of “protecting the vote” (see August 30, 2011). The voters most affected by these laws, the magazine reports, are more likely to vote Democratic in national and state elections. Governor Rick Scott (R-FL), who is fighting the Justice Department to allow him to purge hundreds of thousands of voters from the state electoral rolls, has said: “We need to have fair elections. When you go out to vote, you want to make sure that the other individuals that are voting have a right to vote.” However, a 2007 study by the Brennan Center for Justice at New York University School of Law shows that almost every allegation of voter fraud is false. The chance of a vote being fraudulent, according to the study, is 0.0004 percent (see 2007).
Double Voting - Many claim that “double voting,” or a single voter casting a vote twice or more, is a rampant issue. In reality, it almost never occurs. The allegations that are made almost always result from different people with similar or even identical names casting separate votes, or simple clerical errors, such as voters being counted as having cast their ballots when in reality they did not. In Missouri in 2000 and again in 2002, hundreds of “double votes” were alleged to have been cast, with some allegations saying that the same voter cast their votes in Kansas and Missouri. When reporters and other investigators looked into the claims, only four cases were shown to have been actual double voting, for a documented fraud rate of 0.0003 percent.
Dead Voters - These are allegations that living people cast ballots using the names of dead voters. Almost every allegation of this nature has proven to stem from flawed matches of death records and voter rolls. In the 2000 Georgia elections, allegations of 5,412 “dead voter” votes were made over the last 20 years. All but one of those allegations turned out to be an incorrect match between death records and voter rolls. One example: “Alan J. Mandel,” who died in 1997, apparently cast a vote in 1998. In reality, voter Alan J. Mandell—two Ls—cast a legitimate vote. Election workers checked the wrong name off their list.
Voting with Fraudulent Addresses - The allegation is that people use fraudulent addresses to register to vote. Such allegations usually stem from mail coming back from the given address marked undeliverable. In almost every instance, the person in question has moved, the individual piece of mail was misdelivered or misaddressed, or the address is recorded incorrectly. In one instance, New Hampshire election officials became concerned when 88 voters had registered to vote using similar addresses from property belonging to Daniel Webster College. The addressees were legitimate: all 88 voters were students at that school who lived on college property.
Voting by Convicted Felons - This is a favorite allegation: that convicted felons stripped of their right to vote have voted anyway. It happens more often than some other forms of alleged voter fraud, but in almost every case, the felon in question was unaware that his or her right to vote had been taken away, a misapprehension often reinforced by misinformed election officials. Even then, almost every instance of “felon voters” turns out to be a case of clerical error: someone was convicted of a crime that does not result in their right to vote being removed, typographical errors, voters with names similar to that of convicted felons, and so forth. In the 2000 Florida elections, the state claimed that 5,643 ineligible felons had cast illegal votes. The list provided by the state was almost completely populated by eligible voters who were misidentified as ineligible felons.
Voting by Noncitizens - Allegations that US elections are being “thrown” by huge numbers of illegal immigrants casting their votes are widespread. In reality, there is not one case of an illegal immigrant intentionally casting an illicit vote. For example, Washington state officials investigated the citizenship of 1,668 registered voters in 2005, after allegations that they were illegal aliens were raised based on their “foreign-sounding names.” Every one of the voters on the list was legitimate.
Registration Fraud - On occasion, fraudulent registration forms do get submitted. However, the number of cases where a person submitted a form in someone else’s name in order to impersonate that person is extremely small. Some people fill out the forms with deliberately ridiculous information (such as claiming their name to be “Mickey Mouse”), while others make honest mistakes filling out the forms. In a few cases, voter registration workers working on commission have committed fraud in order to make more money. The Brennan Center report found: “Most reports of registration fraud do not actually claim that the fraud happens so that ineligible people can vote at the polls. Indeed, we are aware of no recent substantiated case in which registration fraud has resulted in fraudulent votes being cast.”
Voting by Dogs - The Brennan Center found nine instances of people registering their dogs to vote. Six of those were from people trying to prove a point: that they could register their dogs to vote. (The penalty for registering a dog to vote is up to 30 years in federal prison.) The Brennan report documented two cases of someone casting a vote in the name of a dog. One was submitted in Venice, California, with the word “VOID” and a paw print drawn on the ballot, and another, also cast in Venice, California, was submitted under the name of “Raku Bowman.”
Vote Buying - Rolling Stone notes that this does happen on rare occasions, with campaign officials or others convincing voters to vote for a particular candidate in return for money, food, or cigarettes. But, the magazine notes, this is vote buying, not voter fraud. It, too, is illegal, and will not be curbed by voter ID laws and the like.
Fraud by Election Officials - Like vote buying, this happens on rare occasions, but is not voter fraud per se. Rolling Stone writes, “If election officials are willing to break the law, rules designed to restrict voting won’t stop them.” [Rolling Stone, 6/12/2012]

Entity Tags: US Department of Justice, Brennan Center for Justice, Rolling Stone, Rick Scott

Timeline Tags: 2012 Elections

Category Tags: Election, Voting Laws and Issues, Voter Fraud/Disenfranchisement

Sheldon Adelson and his wife Miriam have given $10 million to the super PAC supporting presumptive Republican presidential nominee Mitt Romney, and a source close to Adelson says the billionaire’s further donations will be “limitless.” Adelson owns a global network of casinos, including the Las Vegas Sands and a consortium of casinos on the Chinese island of Macau. Adelson, one of the world’s 15 richest people, once supported Republican presidential candidate Newt Gingrich, donating over $21 million to Gingrich’s failed candidacy, and said he was willing to give up to $100 million to keep Gingrich’s candidacy viable. Forbes reporter Steven Bertoni says that Adelson may be willing to give hundreds of millions to the Romney election effort (see March 26, 2012). “[N]o price is too high” to defeat President Obama’s re-election, says the source close to Adelson. Obama is presiding over what Adelson calls the “socialization” of America, and the source says Adelson considers this the most important election of his lifetime. Because of the Citizens United decision (see January 21, 2010), Adelson faces no restrictions whatsoever on the amount of money he can donate to super PACs supporting Romney. The current recipient of Adelson’s largesse is Romney’s campaign super PAC, Restore Our Future. (To give context, Bertoni writes, “The $10 million donation he just made to Romney is equivalent to $40 for an American family with a net worth of $100,000.” He also notes that Adelson has seen his personal and business profits soar during the Obama administration.) Adelson says: “I’m against very wealthy people attempting to or influencing elections. But as long as it’s doable I’m going to do it. Because I know that guys like [billionaire George] Soros have been doing it for years, if not decades. And they stay below the radar by creating a network of corporations to funnel their money (see January - November 2004). I have my own philosophy and I’m not ashamed of it.” Adelson’s primary cause is the security of Israel and its right-wing government. Adelson is also firmly against the Obama administration’s economic policies, telling Bertoni: “What scares me is the continuation of the socialist-style economy we’ve been experiencing for almost four years. That scares me because the redistribution of wealth is the path to more socialism, and to more of the government controlling people’s lives. What scares me is the lack of accountability that people would prefer to experience, just let the government take care of everything and I’ll go fish or I won’t work, etc. US domestic politics is very important to me because I see that the things that made this country great are now being relegated into duplicating that which is making other countries less great.… I’m afraid of the trend where more and more people have the tendency to want to be given instead of wanting to give. People are less willing to share. There are fewer philanthropists being grown and there are greater expectations of the government. I believe that people will come to their senses and not extend the current administration’s quest to socialize this country. It won’t be a socialist democracy because it won’t be a democracy.” [Forbes, 6/13/2012; Huffington Post, 6/16/2012]

Entity Tags: Restore Our Future, George Soros, Barack Obama, Miriam Adelson, Obama administration, Steven Bertoni, Newt Gingrich, Willard Mitt Romney, Sheldon Adelson

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Senator John McCain (R-AZ) lambasts the campaign finance system being used by presidential candidate Mitt Romney (R-MA). McCain has been quite visible in supporting Romney, but he is not a supporter of Romney’s super PAC, Restore Our Future. McCain points out that one of Romney’s most prominent and generous supporters, billionaire casino owner Sheldon Adelson (see June 13, 2012 and Mid-June, 2012), makes much of his money from a casino in Macau, and thusly may be using foreign money to help Romney. McCain says to PBS reporter Judy Woodruff: “Mr. Adelson, who gave large amounts of money to the Gingrich campaign (see January 6, 2012, January 23, 2012, February 21, 2012, February 21, 2012, March 26, 2012, and May 2, 2012) and much of Mr. Adelson’s casino profits, that go to him, come from this casino in Macau. [That says] obviously, maybe in a roundabout way, foreign money is coming into an American campaign, political campaigns.… [T]hat is a great deal of money. And, again, we need a level playing field and we need to go back to the realization that Teddy Roosevelt had that we have to have a limit on the flow of money and that corporations are not people (see August 23, 1902 and December 5, 1905). That’s why we have different laws that govern corporations than govern individual citizens. And so to say that corporations are people (see August 11, 2011), again, flies in the face of all the traditional Supreme Court decisions that we have made—that have been made in the past.” Josh Israel of the liberal news Web site Think Progress notes, “Though it is illegal for non-citizens to spend any money to influence US elections directly, the Supreme Court’s 5-4 Citizens United ruling (see January 21, 2010) left the door wide open for the American employees of American subsidiaries of foreign owned corporations—and even sovereign wealth funds—to spend millions or billions from their corporate treasuries on ‘independent’ expenditures.” [Think Progress, 6/15/2012]

Entity Tags: Josh Israel, John McCain, Sheldon Adelson, Willard Mitt Romney, Restore Our Future, Judy Woodruff

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Former Senator Russ Feingold (D-WI) writes an article for the Stanford Law Review discussing the dominance of “big money” in the nation’s elections in the wake of the 2010 Citizens United decision (see January 21, 2010), documenting his belief that the rise in small-donor contributions that put Democrats in office in 2006 and 2008 led to the Citizens United backlash, and calling for sweeping campaign finance reform. Feingold writes, “Without a significant change in how our campaign finance system regulates the influence of corporations, the American election process, and even the Supreme Court itself, face a more durable, long-term crisis of legitimacy.” Feingold heads Progressives United, an advocacy group that pushes for the overturning of the Citizens United decision and campaign finance legislation.
Background - Feingold gives the background of campaign finance reform in America: the 1907 Tillman Act which banned corporations from spending their money in elections (see 1907), which he says was spurred by the realization that “corporate influence corrupts elections”; the Taft-Hartley Act of 1947, which extended the Tillman ban to labor unions (see June 23, 1947); and more recent legislation, including the Bipartisan Campaign Reform Act of 2002 (BCRA—see March 27, 2002), which Feingold co-authored with Senator John McCain (R-AZ). “And for several election cycles, between 2004 and 2008, our system seemed headed towards more fair and transparent elections,” he writes. “But Citizens United changed everything.” The “road to corruption” in modern elections, he says, began when Democrats in the early 1990s began exploiting a loophole in finance regulation that allowed the creation of “soft money” groups (see January 8, 1980, November 28, 1984, December 15, 1986, and December 10, 2003) that allowed parties to solicit unlimited amounts of donations from corporations, labor unions, and individuals. “This system was corrupting,” Feingold writes. “Senators would solicit gigantic, unregulated contributions from the same corporations that had legislation pending on the Senate floor. Both parties were guilty.” The BCRA plugged the “soft money” loophole. Even as the BCRA began to reform campaign finance practices, Feingold writes, “the same corporate interests that fought McCain-Feingold set to work to dismantle it. In what was clearly an orchestrated effort by opponents of campaign reform (see January 25, 2010), a group called Citizens United produced a movie savaging the record of then-Senator Clinton (see January 10-16, 2008). Ostensibly intended to educate the public about conservative concerns regarding Clinton’s run for the presidency, the film was little more than a legal vehicle to challenge some of the common-sense restrictions enacted by the BCRA (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009). Specifically, the creators of the film sought to challenge the BCRA’s requirement that electioneering communications—commonly known as ‘phony issue ads’ that attack a candidate in the days before the election, but don’t explicitly advocate voting for or against that candidate—be subject to the same disclosure requirements and contribution limits as other campaign ads.” The case was argued on narrow grounds about a specific provision of the BCRA, but the Court’s conservative justices, led by Chief Justice John Roberts, “manipulated the Court’s process to achieve that result” (see May 14, 2012). Justice John Paul Stevens wrote in his dissent to the majority opinion, “[F]ive justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.” The ruling, Feingold writes, “created a framework for corruption parallel to ‘soft money.’” Instead of “soft money” organizations, Citizens United led to the creation of the “super PAC” (see March 26, 2010, June 23, 2011, November 23, 2011, January 4, 2012, January 4, 2012, January 13, 2012, and February 20, 2012). It has also called into doubt the legitimacy of US elections themselves, due to the “increasing skepticism about the campaign finance system.” Many voters now believe “that the average participant’s small contribution is irrelevant, and that the average person’s vote is grossly outweighed by the gigantic contributions now allowed.”
Internet Politics and Small-Donor Contributions - In part due to the BCRA, Feingold writes, “[f]or three election cycles, in 2004, 2006, and 2008, our system of campaign financing began to take shape in a way that channeled citizen participation and provided incentive for candidates to turn to the democratic support of online activists and small-dollar contributors.” He cites the 2004 presidential campaign of Howard Dean (D-VT), who went on to chair the Democratic National Committee (DNC), as the first powerful instance of “online organizing,” using the Internet to garner millions of dollars in small donations from individual citizens. In 2008, the presidential campaign of Barack Obama (D-IL) pushed the Dean innovation even further. The Obama campaign “raised a historic amount in small-dollar contributions,” Feingold writes, and created an online platform to engage supporters. All told, the Obama campaign raised $500 million online.
An Ineffective FEC - By 2008, he writes, the Federal Election Commission (FEC) was completely impotent. The agency “has been fatally flawed since the time of its creation—any administrative law professor will point out that a law enforcement commission with an even number of commissioners [six] is probably designed specifically not to enforce the law at all,” he writes. By 2008, the FEC only had two seated commissioners, and in effect was not enforcing campaign laws whatsoever. Even after eventually receiving a full complement of commissioners, he writes, the agency “remains ineffective, as even Democratic violators go unpunished as conservative commissioners remain unwilling, philosophically, to enforce any campaign finance law.”
2012: Corporations Trump Citizens - In 2012, corporate contributions far outweigh small-dollar donations by individuals. “[T]he most prominent actors in the 2012 election cycle are unnamed corporations and a small group of influential—primarily conservative—billionaires.” Seventy percent of registered voters think super PACs should be illegal, according to polls, and the favorability rating of the Court has dropped a significant amount. Overall, Feingold writes, the public is firmly against the Citizens United paradigm of campaign finance. He advocates strong legislation from Congress, fixing the “broken system of presidential public financing,” and replacing the “dysfunctional” FEC “with a true enforcement agency.” The ultimate repair of campaign finance lies with the Court, he says, noting that the Court has a chance to do some early repair with the Montana case it is now considering (see June 25, 2012). Regardless of what the Court does or does not do in the Montana case, he concludes, “[t]oday’s framework for corruption cannot stand.” [Stanford Law Review, 6/14/2012]

Entity Tags: Howard Dean, Bipartisan Campaign Reform Act of 2002, Barack Obama, Citizens United, Hillary Clinton, Russell D. Feingold, Federal Election Commission, John McCain, John G. Roberts, Jr, Stanford Law Review, John Paul Stevens

Category Tags: Court Procedures and Verdicts, Campaign Finance

Politico reporters Kenneth P. Vogel and Tarini Parti report on the difficulty of getting solid information about the donors being organized by the billionaire Koch brothers. Oil magnates Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) intend to raise at least $400 million to defeat President Obama in the 2012 election (see Late May 2012), and to ensure victory for Republicans in state and local races around the nation (see February 21, 2012). Vogel and Parti call the Koch political operation “its own political party,” almost, even going so far as to hold its own semi-annual conventions, including one scheduled for late June in San Diego. That convention will bring together dozens of millionaire and billionaire conservatives, who will write big checks for the Koch efforts. Additionally, the Kochs will unveil their new voter database, Themis (see April 2010 and After), which they expect will help in targeting potential Republican voters around the country. Themis played a big part in a recent successful effort to stop Governor Scott Walker (R-WI) from being recalled, as did huge amounts of Koch-organized donations on behalf of Walker. Three of the prime figures in the Koch efforts are convention “emcee” Kevin Gentry and political operatives Marc Short and Tim Phillips (see May 29, 2009); the operation is orchestrated primarily by Koch advisor and operative Richard Fink. Additionally, the Koch brothers intend to take over the Cato Institute think tank (see February 29, 2012) and make it more politically active. Minnesota television station owner Stanley Hubbard, a longtime Koch supporter, says: “They ask for support—and they get it because we all love our country and we have a different vision than do the liberals. I’ve gotten friends to be involved, and I think others have, too, so I would guess, yes, that’s expanding.” Vogel and Parti expand on how secretive the Koch network (which they call “Koch World”) actually is. They are unable to find out where the San Diego convention is to be held, though they did determine that it is scheduled to take place over the weekend of June 23. A Republican who has worked with Koch-backed groups says: “The Koch groups are very complex in the way they do things. They’re difficult to penetrate from the outside, which is smart. You often need a Sherpa.” The conventions are heavily patrolled by hired security guards, who at one recent convention threw out a Politico reporter under threat of arrest. Participants are required not to discuss the convention with outsiders, including making posts on Facebook or Web blogs. (The winter 2011 convention in Rancho Mirage, California, leaked to the press, sparking what Politico calls “raucous protests” outside the exclusive resort hosting the conference.) According to Vogel and Parti, Phillips runs the lobbying organization Americans for Prosperity (AFP—see Late 2004 and November 2009). Short oversees the spending of Koch network monies by other approved groups, some of which air television ads attacking Democrats. Gentry raises money for the Koch network. Gentry often uses urgent and even apocalyptic rhetoric in his fundraising appeals, warning potential donors of “dangerous and imminent threats” to American society and comparing the Koch conventions to the Continental Congress of 1776. One recent email lauded efforts by Supreme Court Justice Clarence Thomas to help the Koch brothers’ fundraising. Gentry also spearheads the fundraising efforts for an informal network of conservative think tanks such as the Heritage Foundation, AFP, and the Texas Public Policy Foundation. Some conservatives are uncomfortable with the Koch brothers’ attempts to gain dominance in conservative party politics. “Koch has been angling for the last three or four years to consolidate more of the conservative movement within their network,” says one conservative operative. “That’s why they do these seminars—to try to consolidate more big donors’ money and direct it into their projects.” The operative admits that the Koch fundraising efforts are very effective, saying, “Some of the donors believe giving to one source makes it easier for them instead of having to give to a dozen different places, and others just want to come out to hang with the billionaire brothers and be part of a very elite universe.” Koch conventions regularly feature prominent conservatives like Thomas and fellow Supreme Court Justice Antonin Scalia, Texas Governor Rick Perry, New Jersey Governor Chris Christie, Virginia Governor Bob McConnell, House Majority Leader Eric Cantor (R-VA), and right-wing radio hosts Rush Limbaugh and Glenn Beck. While federal documents track some $120 million in donations from recent Koch summit donors, most of the money raised and spent goes untracked, instead being hidden away by “nonprofit” groups that purport to be non-political social advocacy groups. Gentry has assured donors, “There is anonymity that we can protect.” [Politico, 6/15/2012]

Entity Tags: Cato Institute, Stanley Hubbard, Scott Kevin Walker, Tarini Parti, Texas Public Policy Foundation, Themis, Tim Phillips, Rush Limbaugh, Americans for Prosperity, Antonin Scalia, Bob McConnell, Richard Fink, Marc Short, Clarence Thomas, Christopher J. (“Chris”) Christie, Charles Koch, Politico, Eric Cantor, David Koch, Heritage Foundation, Barack Obama, Kenneth Vogel, James Richard (“Rick”) Perry, Kevin Gentry, Glenn Beck

Category Tags: Campaign Finance

Senate Minority Leader Mitch McConnell (R-KY) accuses President Obama and Congressional Democrats of subverting the constitutional guarantees of free speech by trying to restrict political campaign contributions, and says Democrats are using “mob” tactics against their critics. McConnell, speaking at the American Enterprise Institute, says that the White House has shown “an alarming willingness itself to use the powers of government to silence” political speech of groups with which it disagrees. “It is critically important for all conservatives—and indeed all Americans—to stand up and unite in defense of the freedom to organize around the causes we believe in, and against any effort that would constrain our ability to do so,” he says. McConnell is referring to Democrats’ push for the DISCLOSE Act, a campaign finance bill that would force disclosure of the identities of campaign donors that was defeated by a Republican filibuster in 2010 (see July 26-27, 2010) and is being brought up again. The DISCLOSE Act would affect both corporations and unions. Corporate spending in elections tends to favor Republicans, while union spending tends to favor Democrats. McConnell says the act would require “government-compelled disclosure of contributions to all grass-roots groups, which is far more dangerous than its proponents are willing to admit. This is nothing less than an effort by the government itself to expose its critics to harassment and intimidation, either by government authorities or through third-party allies.… The courts have said that Congress doesn’t have the authority to muzzle political speech. So the president himself will seek to go around it by attempting to change the First Amendment.” McConnell cites the Internal Revenue Service (IRS) as one government agency “persecuting” Republican-allied groups, saying, “Earlier this year, dozens of tea party-affiliated groups across the country learned what it was like to draw the attention of the speech police when they received a lengthy questionnaire from the IRS demanding attendance lists, meeting transcripts, and donor information.” The IRS has denied targeting groups based on their political views. IRS Commissioner Douglas H. Shulman says the information requirements stemmed from the tea party groups’ applications for nonprofit status, which triggered automatic IRS review procedures. “There’s many safeguards built in so this has nothing to do with election cycles and politics,” Shulman said before a House Appropriations subcommittee. “This notion that we’re targeting anyone is off.” McConnell says of Obama, “Not only did his campaign publish a list of eight private citizens it regards as enemies—an actual old-school enemies list—it recently doubled down on the effort when some began to call these thuggish tactics into question.” McConnell is referring to an Obama campaign “truth team” document that publicized information about eight wealthy Republican donors. “The tactics I’m describing extend well beyond the campaign headquarters in Chicago. To an extent not seen since the Nixon administration, they extend deep into the administration itself.” McConnell cites the example of Idaho businessman Frank VanderSloot, the national finance co-chair of the Mitt Romney presidential campaign, who was “smeared” as being “a bitter opponent” of gay rights by the Obama campaign. [Bloomberg, 6/15/2012; New York Times, 6/15/2012] VanderSloot is an outspoken opponent of gay rights, though he has hotly denied advocating such positions and often threatens lawsuits against those reporting his positions (see February 17-21, 2012). [Salon, 2/17/2012; KIFI Local News 8, 3/1/2012] The New York Times calls McConnell’s remarks “incendiary.” Fred Wertheimer of Democracy 21, a campaign-finance reform advocacy group, says McConnell “doesn’t have a constitutional or policy leg to stand on.” Democrats note that McConnell has failed to criticize organized efforts by the Romney campaign to heckle and disrupt campaign press conferences, nor has he criticized tea party efforts to disrupt and shout down Democrats during town hall meetings around the country. Wertheimer says McConnell is using his fiery rhetoric to, in the Times’s phrasing, “run interference for the secret donors pumping hundreds of millions of dollars into the US Chamber of Commerce and American Crossroads.” Obama campaign spokesperson Ben LaBolt says, “Senator McConnell has been running a cover-up operation for the special interest donors attempting to buy the election for the GOP in order to promote their agendas over the national interest.” [Bloomberg, 6/15/2012; New York Times, 6/15/2012]

Entity Tags: Barack Obama, Ben LaBolt, Douglas H. Shulman, Internal Revenue Service, Frank VanderSloot, US Congress, Fred Wertheimer, Mitch McConnell, New York Times

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Casino billionaire Sheldon Adelson, one of the world’s 15 richest people, is on course to contribute at least $71 million to efforts to unseat President Obama in the November presidential elections and elect Republicans to national and state office (see February 21, 2012). Adelson’s contributions are cloaked in secrecy, as much of his contributions go to “nonprofit” political organizations that under the law do not have to disclose their donors. Adelson and his wife Miriam have already contributed $10 million to a “super PAC” backing Republican presidential candidate Mitt Romney (see June 13, 2012), and have either given or pledged to give up to $35 million to other organizations, including Crossroads GPS, a “nonprofit” organization led by former George W. Bush advisor and longtime Adelson friend Karl Rove, the Koch-financed Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), and another organization linked to House Majority Leader Eric Cantor (R-VA). Adelson is a strong supporter of Israel’s far-right government and a staunch opponent of US labor unions. Adelson has told friends that he may give up to $100 million in efforts to unseat Obama and elect Republicans in state races; indications are that he may give much, much more. Some of Adelson’s donations may go to another Koch-funded organization, the Center to Protect Patients’ Rights, which in 2010 was used to funnel tens of millions of dollars to other conservative organizations (see October 12, 2010). The Young Guns Network is a nonprofit group set up by Cantor, and has received $5 million from Adelson (see June 10, 2012). So has the “super PAC” the Congressional Leadership Fund, a group linked to House Speaker John Boehner (R-OH). Adelson’s Las Vegas casino The Sands is under investigation by the Securities and Exchange Commission (SEC) and the Justice Department for possible violations of the Foreign Corrupt Practices Act, which exists to prevent bribery of foreign business officials. The Sands denies any wrongdoing. Adelson previously backed Romney’s opponent Newt Gingrich (R-GA), but as Gingrich’s hopes for the presidential nomination faded, Adelson indicated that he would shift his support to Romney. Adelson has told GOP colleagues he intends to make most of his contributions to nonprofits like Crossroads GPS, which are not required to make the names of their donors, or the amounts of their donations, public. Although the law bars candidates like Romney from soliciting donations exceeding $5,000, Republican fundraisers say that candidates and their representatives have flocked to Adelson in recent months, as have representatives from organizations such as the US Chamber of Commerce, which intends to spend $50 million in efforts to elect Republicans to Congress. The nonprofit Republican Jewish Coalition has received millions from Adelson in the past, and says it intends to spend some $5 million this year on behalf of candidates such as Josh Mandel (R-OH), running to unseat Senator Sherrod Brown (D-OH). Adelson also donated $250,000 to help turn back efforts to recall Governor Scott Walker (R-WI) and $250,000 to a political committee backing Governor Rick Scott (R-FL), who is battling the Justice Department to be allowed to purge hundreds of thousands of minority voters from the voting rolls. [Huffington Post, 6/16/2012] In March 2012, 80 billionaires such as Adelson gave two-thirds of the monies raised by super PACs, creating an outsized influence on the presidential and “downticket” election campaigns (see March 26, 2012).

Entity Tags: Congressional Leadership Fund, US Chamber of Commerce, US Department of Justice, US Securities and Exchange Commission, Willard Mitt Romney, Young Guns Network, Center to Protect Patients’ Rights, American Crossroads GPS, Americans for Prosperity, Sherrod Brown, The Sands, Barack Obama, Josh Mandel, John Boehner, Eric Cantor, Sheldon Adelson, Scott Kevin Walker, Miriam Adelson, Rick Scott, Republican Jewish Coalition, Newt Gingrich, Karl C. Rove

Category Tags: Campaign Finance

Black Rock Group logo.Black Rock Group logo. [Source: Black Rock Group]The 2010 Citizens United decision (see January 21, 2010) requires third-party groups working on behalf of candidates or parties not to coordinate their efforts with those candidates or parties—to remain “independent.” Many political observers have suspected that some of these groups are coordinating their efforts with the campaigns and/or with one another. Two of the groups under suspicion are American Crossroads, a super PAC, and Crossroads GPS. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, the two have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads (see April 13-20, 2012). In early June, Crossroads GPS spent $70,000 in advertisements attacking Democratic Senate candidate Heidi Heitkamp (D-ND), half of its $140,000 spent on that race. Shortly before that run of advertisements began, Heitkamp’s Republican challenger, Rick Berg (R-ND), paid the Black Rock Group, a Republican consulting firm in Virginia, thousands of dollars for “communications consulting.” Black Rock is also contracted to perform “advocacy and communications consulting” for American Crossroads. Black Rock’s founding partner, Carl Forti, is American Crossroads’s political director and formerly served as Crossroads GPS’s advocacy director. (Forti also helped start Restore Our Future, presidential candidate Mitt Romney’s super PAC—see June 23, 2011). Black Rock partner Michael Dubke is the founder of Crossroads Media, which buys ads for American Crossroads and Crossroads GPS. Crossroads Media and Black Rock share offices. It would be illegal for Berg’s campaign to consult or coordinate with Crossroads GPS on advertisement strategies. It would not be illegal for Berg’s campaign to consult with Black Rock, and then for Black Rock to consult with Crossroads GPS. “The real scandal is what’s legal,” says Paul Ryan of the Campaign Legal Center. The Citizens United ruling said that groups would disclose their donors and activists, and groups would not coordinate with one another. Yet both provisions are either being ignored or dodged. Fred Wertheimer of Democracy 21 says: “The statu[t]e and the Supreme Court have been very strong on preventing coordination. But the FEC regulations have basically gutted the laws and given us very weak laws to prevent coordination between outside spenders and candidates… despite the fact that the Court’s entire decision in Citizens United is based on the notion that the expenditures are going to be entirely independent from the campaign.” Bill Allison of the Sunlight Foundation says, “[T]he FEC [Federal Election Commission] has a very narrow definition of what coordination actually is.” As long as a campaign and an outside group do not directly communicate, their use of a “common vendor” such as Black Rock is perfectly legal as long as several specific criteria are avoided. “It kind of boggles the mind, but that’s what the FEC has defined and there’s nothing illegal about it.” Ryan says: “It makes the coordination rules pretty meaningless. We have all of this special interest money that we feared might be in the system, and none of the meaningful restraints on coordination, and very limited disclosure.” Allison gives a hypothetical example: “If they’re using the same people to buy ads, and the campaign is telling the ad buyer, ‘We want you to buy ads in such and such and such,’ and the ad buyer does that, the super PAC can then say, ‘Well, run ads where they’re not running ads, or double their ads,’ or whatever. These guys are professionals and they know how to do this. That’s still not coordination.” There is no evidence that Black Rock is ferrying communications between Crossroads GPS and the Berg campaign; according to Black Rock spokesperson Chelsea Wilson, “Black Rock has had firewalls in place since last year which allows the firm to legally engage in federal campaign and independent expenditure or issue advocacy campaigns.” Crossroads GPS is not legally bound to disclose much of its information to the FEC, and it is impossible to know precisely what Crossroads GPS is paying Black Rock to do for it. The Berg campaign denies any coordination, saying in a statement: “While we do work with Black Rock, there is no coordination between our campaign and outside groups and we have no knowledge of what their plans are. We cannot control what outside groups will do.” Allison says that even if Berg’s campaign is being truthful, there are many ways campaigns and outside groups can legally coordinate, using a common advisor such as Black Rock or even individual consultants. “There can be coordination at the level of consultants, even if they’re not at same company,” he says, noting that many consultants know one another socially or have worked together in previous campaigns. It is also possible, and legal, for super PACs to find out where campaigns they are supporting are buying ads by contacting the campaigns of the opposing candidates, which keep track of such information. Forti, the CEO of Black Rock, is in a unique position to facilitate what reporter Alex Seitz-Wald calls “GOP non-coordination coordination,” as he “sits in the middle of a powerful nexus of outside spending groups and GOP political firms all run out of the same office suite in Alexandria, Virginia.” Charles Spies, the treasure of Romney’s Restore Our Future, says of Forti, “I don’t know of anybody who’s got as important of a role with the major outside organizations, both in 2010 and in 2012.” [Salon, 6/19/2012]

Entity Tags: Charles R. Spies, Bill Allison, American Crossroads GPS, American Crossroads, Alex Seitz-Wald, Carl Forti, Rick Berg, Steven Law, Paul S. Ryan, Chelsea Wilson, Crossroads Media, Fred Wertheimer, Black Rock Group, Michael Dubke, Restore Our Future, Heidi Heitkamp

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Analysis from the Annenberg Public Policy Center shows that 85 percent of the spending by the top 501(c)4 groups involved in the 2012 presidential campaign has been on ads found to be “deceptive” by fact-checking organizations. Spending from third-party groups, including “nonprofit” 501(c)4 groups, is up by 1,100 percent since the 2008 presidential campaign (see May 2, 2012). All of the ads are by Republican or conservative groups; Democratic 501(c)4 groups have not yet spent any money on the race. The ads, which aired between December 1, 2011 and June 1, 2012, have either targeted Republican presidential primary candidates or President Obama. The Washington Post’s Glenn Kessler, part of the Post’s “Fact Checker” team, recently criticized the wave of untruthful advertising, writing that “watching these ads is a depressing duty for The Fact Checker.… The erroneous assertions emerge… without any shame, labeled as ‘the truth’ or ‘fact.’” Kessler was criticizing ad campaigns by Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009) and the American Future Fund (see October 12, 2010), which spent $8 million to attack Obama’s approval of the expense of “stimulus” money for “wasteful” programs that the ads falsely claimed sent American jobs to foreign countries. According to the Annenberg analysis, the four top groups spending money on deceptive ads are:
bullet The American Energy Alliance, a trade organization that advocates “free market energy policies,” with expenditures of $3,269,000;
bullet Americans for Prosperity, advocating lower taxes and less government spending, with expenditures of $5,018,000;
bullet The American Future Fund, with expenditures of $6,365,930; and
bullet Crossroads GPS, a conservative public policy advocacy group founded by former Bush administration political chief Karl Rove and former Republican National Committee director Ed Gillespie, with expenditures of $10,263,760.
Like the ads Kessler cited, many of the ads bought by the above-listed expenditures went to attack Obama over government financing of green energy companies such as the bankrupt solar company Solyndra. According to Bloomberg News, 81 percent of the attack ads against Obama in the first quarter of 2012 were about energy. [Washington Post, 4/30/2012; Annenberg Public Policy Center, 6/20/2012; Think Progress, 6/27/2012]

Entity Tags: American Crossroads GPS, Barack Obama, American Energy Alliance, Annenberg Public Policy Center, American Future Fund, Americans for Prosperity, Karl C. Rove, Bloomberg News, Ed Gillespie, Glenn Kessler, Solyndra Corporation

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Casino billionaire Sheldon Adelson gives $10 million to the billionaire Koch brothers, joining them in their efforts to defeat President Obama in the November presidential elections. Charles and David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, Late March 2012, and June 15, 2012) are planning to spend some $400 million to elect Republican candidate Mitt Romney (R-MA) and defeat Obama. The information about Adelson’s donation comes from a Republican Party source in Nevada. Adelson makes his pledge at a Koch donor convention in San Diego, the first time he has attended a Koch-sponsored political event. He has already given $10 million to a Romney “super PAC” (see June 13, 2012), $10 million to a “super PAC” operated by former Bush White House advisor Karl Rove, and $10 million to two groups backing Republican House candidates (see Mid-June, 2012). The Kochs are the driving force behind the “astroturf” organization Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has spent millions of dollars on advertisements attacking Obama and other Democrats. The Kochs are also funding Themis, a voter information database (see April 2010 and After). Koch funding extends well into state and even local elections. [Huffington Post, 6/16/2012; Washington Post, 6/29/2012]

Entity Tags: Sheldon Adelson, Barack Obama, Charles Koch, Willard Mitt Romney, David Koch, Karl C. Rove

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Mike Turzai.Mike Turzai. [Source: Wikipedia / Flickr]Mike Turzai (R-Allegheny), the majority leader of Pennsylvania’s House of Representatives, says in a speech to Pennsylvania’s Republican committee that newly passed voter identification laws would help Republican presidential candidate Mitt Romney win the state (see August 30, 2011 and June 12, 2012). “We are focused on making sure that we meet our obligations that we’ve talked about for years,” he says, and begins ticking off a list of what he considers accomplishments: “Pro-Second Amendment? The Castle Doctrine, it’s done. First pro-life legislation—abortion facility regulations—in 22 years, done. Voter ID, which is gonna allow Governor Romney to win the state of Pennsylvania, done.” Critics immediately take Turzai’s remarks as evidence that voter ID laws such as those passed by Pennsylvania are intended to disenfranchise minority voters who are more likely to vote Democratic. Turzai and Republicans who support voter ID laws insist that such laws are intended to stop voter fraud. Pennsylvania Democratic Party spokesman Mark Nicastre says: “Instead of working to create jobs and get our economy back on track, Mike Turzai and the Republicans in Harrisburg have been laser focused on a partisan agenda that simply helps their donors and political allies.… Mike Turzai’s admission that Voter ID only serves the partisan interests of his party should be shocking, but unfortunately it isn’t. Democrats are focused on protecting Pennsylvanians’ rights to vote, and we are working hard to ensure that everyone who is eligible to vote can vote this fall.” Turzai spokesman Stephen Miskin says that voter fraud is a nationwide problem, though no evidence of such a claim has ever been advanced, and anyone who believes Turzai was saying anything untoward “has their own agenda.” Pennsylvania Senator Daylin Leach (D-Montco) disagrees, saying: “This is making clear to everyone what Voter ID was all about. This is about one thing: disenfranchising Democratic voters and rigging elections for Republicans. When they get behind closed doors, they admit it. And that’s exactly what Turzai did.” Pennsylvania has voted for a Democratic presidential candidate in every election since 1988. Political blogger and reporter Kelly Cernetich writes that in 2004, President Bush lost Pennsylvania by 144,248 votes: “That’s at least 144,000 higher than the number of voter fraud convictions in PA since 1988.” [The Grio, 6/25/2012; PoliticsPA, 6/26/2012] Political blogger and reporter Mychal Denzel Smith writes: “The Republican strategy for winning the youth vote, black vote, and low-income vote has been to ensure that no one belonging to any of those three groups is able to vote. The GOP has aggressively pursued some of the most stringent voter ID laws, and since 2010, 16 states have enacted the most restrictive barriers to voting since poll taxes and literacy tests. With the exception of one state, all of these laws have been voted on party lines, with Republican officials voting in favor. Up until now, the party line has been they are ‘protecting the integrity of the vote’ by protecting the American public from the nonexistent issue of voter fraud. In reality, all they have done is made it harder for those constituencies (youth, blacks, low-income) who do not traditionally lean Republican to get into the voting booth.… Turzai just committed a gaffe that will likely garner little public attention but reveals the true motives of the GOP efforts to curb voter fraud.” He notes that a Brennan Center study found that voter fraud occurs in 0.0004 percent of the votes cast throughout the nation (see June 12, 2012). [The Grio, 6/27/2012]

Entity Tags: Pennsylvania House of Representatives, Kelly Cernetich, Daylin Leach, Mark Nicastre, Mychal Denzel Smith, Willard Mitt Romney, Mike Turzai, Stephen Miskin

Timeline Tags: 2012 Elections

Category Tags: Voter Fraud/Disenfranchisement, Voting Rights

The First National Romney Victory Leadership Retreat, a two-day, invitation-only conference in Park City, Utah, features a number of prominent Republican lawmakers and financiers gathered to coordinate strategy for the presidential campaign of Mitt Romney (R-MA). The Washington Post describes the event as three days of “strategizing and fraternizing.” One donor and member of Romney’s national finance team told a reporter before the event that a “well organized, committed team” is expected who are “subordinating individual ego for the greater goal.” Perhaps the most controversial figure attending is Karl Rove, the former Bush administration political advisor who now helps run American Crossroads and Crossroads GPS (see April 13-20, 2012). The two groups have been heavily involved in running advertisements and other activities on behalf of the Romney campaign, but the law says the groups must conduct themselves independently of the Romney campaign. The Post reports, “Rove’s appearance could raise questions because of laws barring any coordination between super PACs and campaigns.” Common Cause’s Mary Boyle says that Rove’s appearance “seems to make a mockery of the rule that bans coordination between a super PAC and a candidate.” Tara Malloy, senior counsel for the Campaign Legal Center, agrees with Boyle, but says Rove’s participation in the event is probably legal. “[T]he coordination rule is a pretty slim reed between candidates and the super PACs that support those candidates,” she says. “It’s not by any means an airtight barrier between those two.” To break the law, Romney campaign officials would have to have a “substantial discussion” with Rove about advertising strategies. Malloy says, “The scandal in Washington is what is legal, not what’s illegal.” Other attendees include former Secretary of State James A. Baker; former Minnesota Senator Norm Coleman, the founder of the American Action Network (AAN), another influential “independent” super PAC (see Mid-October 2010); Senators Bob Corker (R-TN) and Rob Portman (R-OH), a possible vice-presidential contender for Romney; former Utah Governor Mike Leavitt (who will lead Romney’s transition team if Romney wins the presidential election); Governor Bob McDonnell (R-VA), another possible vice-presidential choice; former Governor Tim Pawlenty (R-MN), also on the vice-presidential “short list”; former Governor John Sununu (R-NH); and Weekly Standard editor William Kristol. Senator John McCain (R-AZ) speaks to the assemblage, as does former Secretary of State Condoleezza Rice and former Governor Jeb Bush (R-FL). Governor Bobby Jindal (R-LA), a possible vice-presidential pick, moderates a panel discussion on “Innovation in America,” joined by Hewlett Packard CEO Meg Whitman, billionaire donor Ken Langone, and two other possible vice-presidential choices, Representative Paul Ryan (R-WI) and Senator John Thune (R-SD). Rove takes part in a panel discussion called “Media Insight,” along with Romney counsel Ben Ginsberg, Kristol and his Weekly Standard colleague Fred Barnes, and GOP strategist Mary Matalin. A “Women for Romney Victory Tea” features Romney’s wife Anne and former Olympic figure skater Dorothy Hamill. Possible vice-presidential choices Senator Kelly Ayotte (R-NH), Senator Marco Rubio (R-FL), Governor Susana Martinez (R-NM), and Governor Nikki Haley (R-SC) do not attend the conference. Nor does Governor Chris Christie (R-NJ), a popular Republican who is not known to be on the vice-presidential list. Many Wall Street and private equity donors are also in attendance, welcomed by Woody Johnson, the owner of the New York Jets and the co-chair of Romney’s national finance team. One finance team member predicts the three-day event will raise as much as $700 million for Romney’s campaign. [ABC News, 6/20/2012; Washington Post, 6/20/2012; Think Progress, 6/21/2012]

Entity Tags: Bob McDonnell, Susana Martinez, Robert Jones (“Rob”) Portman, Paul Ryan, Norm Coleman, Bob Corker, Tara Malloy, Tim Pawlenty, Washington Post, Willard Mitt Romney, American Crossroads, American Crossroads GPS, Anne Romney, Woody Johnson, William Kristol, Mitt Romney presidential campaign (2012), Mike Leavitt, Nikki Haley, Ben Ginsberg, Fred Barnes, Dorothy Hamill, Condoleezza Rice, Christopher J. (“Chris”) Christie, Bobby Jindal, Meg Whitman, John Ellis (“Jeb”) Bush, James A. Baker, John Sununu, Ken Langone, Marco Rubio, Mary Boyle, Kelly Ayotte, John McCain, Mary Matalin, Karl C. Rove, John Thune

Category Tags: Campaign Finance

The US Supreme Court, without hearing arguments, strikes down a century-old Montana ban on corporate spending in elections (see December 30, 2011 and After), effectively reaffirming its Citizens United decision to allow unlimited, untraceable corporate spending on elections (see January 21, 2010). Some observers expected the Court to temper its original finding in the Citizens United decision, but such is not the outcome. The case, American Tradition Partnership v. Bullock, originates in Montana’s 19th-century ban on corporate spending in elections. In December 2011, the Montana Supreme Court upheld the law (see December 30, 2011 and After), finding that the Citizens United ruling allowed for restrictions on corporate political speech if the government could demonstrate that the restrictions were as minimal as possible to achieve a compelling governmental interest. Today, the US Supreme Court rules 5-4 that the Montana Supreme Court’s argument is invalid, saying there is “no serious doubt” that the Citizens United ruling supersedes Montana state law. Two dissenting Justices, Ruth Bader Ginsberg and Stephen Breyer, argued for the case to be presented to the Court, viewing the case as “an opportunity to consider whether, in light of the huge sums currently deployed to buy candidates’ allegiance, Citizens United should continue to hold sway.” However, the Court’s conservative majority strikes down the Montana Supreme Court’s decision and invalidates the CPA. Breyer writes in his dissent, “Even if I were to accept Citizens United, this Court’s legal conclusion should not bar the Montana Supreme Court’s finding, made on the record before it, that independent expenditures by corporations did in fact lead to corruption or the appearance of corruption in Montana.” The next recourse for Montana citizens is Ballot Initiative I-166, which would establish that corporations are not people in Montana and would call on Montana’s Congressional delegation to support a constitutional amendment to overturn Citizens United. [American Tradition Partnership, Inc., FKA Western Tradition Partnership, Inc., et al v. Steve Bullock, Attorney General Of Montana, et al, 6/25/2012 pdf file; SCOTUSBlog, 6/25/2012; Reuters, 6/25/2012; OMB Watch, 6/25/2012; OMB Watch, 7/10/2012] Democratic campaign lawyer Marc Elias says of the decision: “To the extent that there was any doubt from the original Citizens United decision broadly applies to state and local laws, that doubt is now gone. To whatever extent that door was open a crack, that door is now closed.” Senator Charles Schumer (D-NY) says that the Court is “[f]or apparently political reasons… further tipping the balance of power in America in favor of deep-pocketed, outside interests.” Senate Minority Leader Mitch McConnell (R-KY) calls the decision an “important victory for freedom of speech.” [Washington Post, 6/25/2012]

Entity Tags: Stephen Breyer, Mitch McConnell, Marc Elias, Charles Schumer, Montana Supreme Court, US Supreme Court, Ruth Bader Ginsberg

Category Tags: Court Procedures and Verdicts, Campaign Finance

Former Secretary of State Condoleezza Rice holds a fundraiser for ShePAC, a super PAC focused on helping Republican women win elections. She holds a private briefing for Republican women serving in Congress and a larger briefing for PAC members, and gives a speech to a general reception. General attendance at the reception costs $1,000 a plate and up. In an email, ShePAC writes: “Though the population of the United states is 51 percent female, Republican women hold only 5.5 percent of our Congressional seats. Secretary of State Condoleezza Rice is joining our efforts to change that percentage by helping us support Republican women.” The organization began operations in February, and garnered national attention by attacking comedian Bill Maher, who publicly donated $1 million to the super PAC supporting President Obama. Rice recently appeared at a retreat for presidential candidate Mitt Romney (R-MA) in Park City, Utah. The retreat was attended by, among others, Senator John McCain (R-AZ), Governor Bobby Jindal (R-LA), and former Governor Jeb Bush (R-FL). [CNN, 6/25/2012; The Hill, 6/25/2012]

Entity Tags: John McCain, Bill Maher, Bobby Jindal, John Ellis (“Jeb”) Bush, ShePAC, Condoleezza Rice, Willard Mitt Romney

Timeline Tags: 2012 Elections

Category Tags: Campaign Finance

Judge Robert Hinkle.Judge Robert Hinkle. [Source: Eddie Curran]US District Judge Robert Hinkle rejects an attempt by the US Department of Justice to block Florida’s attempted purge of what it calls non-citizens, in part because Florida has temporarily suspended the purge. Hinkle says that federal law prohibiting the systematic removal of voters in the months before an election does not apply to non-citizens. Hinkle also accepts Florida’s assurance that it has ended its purge efforts. The Justice Department argued that the purge violates the National Voter Registration Act of 1993 (NVRA—see May 20, 1993), which makes it illegal to perform what the law calls a systematic removal of voters before a federal election. Florida’s primary will be held on August 14. In 2011, Florida’s state motor vehicle agency created a database of some 2,600 people whose citizenship was determined to be “questionable,” but county election supervisors stopped using the database to remove voters from their rolls after concluding the list was unreliable and contained the names of many eligible voters. Justice Department lawyer John Bert Ross called Florida’s effort to purge “non-citizens” a “dragnet” that illegally forces US citizens to prove their legitimacy, though Ross was unable to cite an instance of a legitimate voter being removed from the voting rolls. Ross asked Hinkle to restore the voting rights of everyone purged from the voting rolls, a request that Hinkle rejected, saying: “Leaving ineligible voters on the list is not a solution. Non-citizens should not be voting. People need to know we are running an honest election.” The Florida Secretary of State, Ken Detzner, is suing for access to a US Department of Homeland Security (DHS) database to “better ascertain the citizenship status of voters,” according to Detzner’s attorney Michael Carvin. DHS has so far refused the request. Carvin says that if Detzner receives the data, “I do expect the state to proceed [with the purge] and protect the integrity of the voter rolls.” Hinkle accepts the state’s arguments that it is carrying out its duty to make sure non-citizens do not “dilute” the votes of actual citizens. Hinkle showed some concern that over half of the people on Florida’s “purge list” are Hispanic, saying: “That’s discriminatory, at least in effect. I don’t suggest that that was the purpose of this.” Hinkle also chided Collier County for sending letters to “potential non-citizens” challenging whether people born in Puerto Rico are legitimate US citizens. People born in Puerto Rico are US citizens by law. Collier County elections staffer Tim Durham says the county never sent such a letter. Hinkle says that with the elections approaching, “[t]he federal government and the state government ought to be working together to try to minimize the mistakes” instead of trying to settle the problem in court. Florida Governor Rick Scott (R-FL) praises the ruling, saying, “The court made a commonsense decision consistent with what I’ve been saying all along: that irreparable harm will result if non-citizens are allowed to vote.” Democrats say Scott is trying to suppress legitimate votes in Florida; liberal advocacy group MoveOn.org calls the purge “racist” because of its focus on Hispanics. [Miami Herald, 6/27/2012]

Entity Tags: National Voter Registration Act, John Bert Ross, County of Collier (Florida), Ken Detzner, MoveOn (.org), Robert Hinkle, Michael Carvin, US Department of Justice, Tim Durham, US Department of Homeland Security, Rick Scott

Category Tags: Voter Fraud/Disenfranchisement, Voting Rights

Former Senator Russ Feingold (D-WI) says that the US Supreme Court’s recent summary reversal of a Montana Supreme Court decision to uphold Montana’s ban on corporate political spending (see June 25, 2012) proves that the US Supreme Court is actively working to dismantle representative democracy. Referring to the 2010 Citizens United case that formed the basis for the Court’s recent decision (see January 21, 2010), Feingold says: “This court had one fig leaf left after this one awful decision two years ago.” The justices could claim “they were politically naive or didn’t know what would happen when they overturned 100 years of law on corporate contributions.” But after the American Tradition Partnership decision that reversed the Montana high court, he says, “They have shown themselves wantonly willing to undo our democracy.” Feingold continues: “This is one of the great turning points, not only in campaign finance but also in our country’s history. I believe we’re in a constitutional crisis.” Feingold heads an anti-Citizens United group called Progressives United, which works to raise awareness about the effects of the decisions and to persuade Congress to overturn the decision via legislation. He says the Supreme Court has “clearly become… a partisan arm of corporate America. This is a real serious problem for our democracy. It’s essentially a court that rules in one direction.… [T]his court is no longer perceived as the independent arbiter of the law that the people expect them to be.” A recent study by the Constitutional Accountability Center shows that during the tenure of Chief Justice John Roberts, the US Chamber of Commerce, the nation’s most powerful business lobbying organization (see January 21-22, 2010, June 26-28, 2010, July 26, 2010, August 2, 2010, October 2010, and February 10, 2011), which filed a brief asking the Supreme Court to rule against the Montana high court (see April 30, 2012), has seen victory in 68 percent of the cases in which it has filed briefs, a much higher success record than in earlier years. Feingold wrote an article for the Stanford Law Review claiming that the 2006-2008 rise in small donor contributions spurred corporations and the Supreme Court to create the Citizens United decision (see June 14, 2012). Feingold says: “The corporate interest in America saw the face of democracy, and so what they did was engineer this decision. They used it as an excuse to stop citizen democracy in this country.” Nevertheless, Feingold is confident that grassroots organizations such as Progressives United and efforts in other venues, including Congress and the Obama administration, will eventually see Citizens United overturned. For now, he quotes his campaign finance reform partner, Senator John McCain, who recently said, “I promise you there will be huge scandals” (see March 27, 2012). Feingold says, “There already is a scandal.” [Huffington Post, 6/27/2012]

Entity Tags: Russell D. Feingold, Constitutional Accountability Center, John G. Roberts, Jr, Progressives United, John McCain, Obama administration, US Chamber of Commerce, US Supreme Court

Category Tags: Campaign Finance

A Fourth Circuit federal appeals court rules that while the Supreme Court’s controversial Citizens United decision (see January 21, 2010) allows corporations to make independent expenditures to support or oppose candidates for public office, corporations cannot make direct contributions to candidates. The court’s ruling strikes down an earlier judge’s finding that corporations have exactly the same political speech rights as individuals (see May 26, 2011 and After). [OMB Watch, 7/10/2012]

Entity Tags: US Supreme Court

Category Tags: Court Procedures and Verdicts, Campaign Finance

The Minnesota branch of the nonpartisan voting rights organization Common Cause files a complaint against the conservative voting activist group Minnesota Majority, claiming that the nonprofit group broke state law by not registering itself as a lobbying organization. Minnesota Majority is working to implement restrictive voter ID laws in Minnesota. In 2010, the group falsely claimed that felons voting illegally gave Al Franken (D-MN) the victory in the state’s hotly contested 2008 US Senate race (see July 12-14, 2010). Mike Dean of Common Cause Minnesota says: “Minnesota Majority has been caught red-handed in an effort to circumvent Minnesota lobbyist laws. It is time for the Campaign Finance and Public Disclosure Board to more effectively enforce Minnesota’s rules for lobbyists.” The complaint states that Minnesota Majority executive director Dan McGrath should have registered himself as a lobbyist. In recent court filings, McGrath said he started working with legislators “to construct and promote” a photo ID bill for voters in November 2010. The legislature passed the bill in 2012, which places a state constitutional amendment on the November 2012 ballot that would require Minnesotans to show photo ID before voting. McGrath says the complaint is ridiculous, and says he merely offered “expert advice” to legislators on the subject of voter ID. “I’m not a lobbyist,” he says. “A lobbyist would be somebody paid by a corporation to twist arms at the Legislature.” According to state law, a lobbyist is someone who is paid more than $3,000 to lobby, or who spends more than $250 on lobbying or more than 50 hours a month on lobbying. Common Cause says McGrath and Minnesota Majority have spent “significant time and money lobbying in support of the voter ID amendment.” State law prohibits the Campaign Finance and Public Disclosure Board, the entity that is charged with investigating such complaints, from commenting on them until it has ruled. The board’s executive director, Gary Goldsmith, says that there are executive directors of nonprofits who appear at the Capitol to speak about legislation but do not meet the definition of a lobbyist. “It’s fairly easy to separate the pros from the ordinary Joes” when it comes to lobbying, he says. [Minneapolis Star-Tribune, 7/4/2012]

Entity Tags: Common Cause Minnesota, Al Franken, Campaign Finance and Public Disclosure Board (Minnesota), Minnesota Majority, Dan McGrath, Gary Goldsmith, Mike Dean

Category Tags: Voter Fraud/Disenfranchisement

Senate Democrats try twice within a two-day period to bring the DISCLOSE Act, a campaign finance bill that would require the disclosure of the identities of political donors (see July 26-27, 2010), to the floor for a vote. If enacted, the Democracy Is Strengthened by Casting Light On Spending in Elections (DISCLOSE) Act would overturn many elements of the Supreme Court’s controversial Citizens United decision that allows virtually unlimited and anonymous political spending by corporations and other entities (see January 21, 2010). If passed, it would create new campaign finance disclosure requirements and make public the names of “super PAC” contributors (see March 26, 2010). Individuals, corporations, labor unions, and tax-exempt charitable organizations would, under the act, report to the Federal Election Commission (FEC) each time they spend $10,000 or more on campaign-related expenditures. The bill would also “prohibit foreign influence in federal elections [and] prohibit government contractors from making expenditures with respect to such elections.” Both Senate Democratic efforts are thwarted by a Republican filibuster. Democrats are unable to muster the 60 votes needed to grant “cloture,” which would break the filibuster and bring the bill to the floor to be voted up or down. The last vote supports cloture 53-45, not enough to invoke cloture; the first vote was 51-44 in favor. Senators Mark Kirk (R-IL), who is recovering from a seizure, and Richard Shelby (R-AL) do not vote. Democrats force an official recording of each senator’s vote, placing the names of senators voting for and against the bill in the public record. Democrats have tried since 2010 to pass the bill (see July 26-27, 2010). The bill, sponsored in its latest iteration by Sheldon Whitehouse (D-RI), would force unions, nonprofits, and corporate interest groups that spend $10,000 or more during an election cycle to disclose donors who give $10,000 or more. Whitehouse modified the original version of the bill to no longer require sponsors of “electioneering” ads to put a disclaimer at the end, and pushed the effective date of the bill to 2013, meaning it would not impact the 2012 presidential campaign. Whitehouse and 15 other senators take to the floor to press for its passage. “When somebody is spending the kind of money that is being spent, a single donor making, for instance, a $4 million anonymous contribution, they’re not doing that out of the goodness of their heart,” he tells the Senate. Democrats urge Republicans who have previously spoken out in favor of transparency and campaign finance reform to vote for the bill, targeting Senators Lamar Alexander (R-TN), Scott Brown (R-MA), John McCain (R-AZ), and Susan Collins (R-ME). However, none of them break ranks with their fellow Republicans. McCain, who co-authored the McCain-Feingold campaign finance bill of 2002 (see March 27, 2002) and has spoken out against the Citizens United Supreme Court decision that allows corporations and unions to anonymously spend unlimited amounts on “electioneering” activities (see January 21, 2010), refuses to join Democrats in supporting the bill. He tells the Senate before the final vote, “The American people will see it for what it is—political opportunism at its best, political demagoguery at its worst.” McCain asks Senate Democrats “to go back to the drawing board and bring back a bill that is truly fair, truly bipartisan, and requires true full disclosure for everyone.” Senate Minority Leader Mitch McConnell says the bill would “send a signal to unions that Democrats are just as eager to do their legislative bidding as ever,” and that it “amounts to nothing more than member and donor harassment and intimidation.” In his weekly press conference shortly before the floor votes, McConnell says of the bill: “This could best be described as a selective disclosure act. It has managed to generate opposition from everybody from the ACLU to [the] NRA. That’s quite an accomplishment.” Senate Majority Leader Harry Reid (D-NV) says of the bill: “[I]n a post-Citizens United world, the least we should do is require groups spending millions on political attack ads to disclose their largest donors. We owe it to voters to let them judge for themselves the attacks—and the motivations behind them.” And Ellen Miller of the Sunlight Foundation says that the Senate is “thumbing their noses at the very notion of democratic elections.” [Politico, 7/14/2012; OMB Watch, 7/24/2012] After the bill fails to pass, Reid says, “It is obvious Republicans’ priority is to protect a handful of anonymous billionaires—billionaires willing to contribute hundreds of millions of dollars to change the outcome of a close presidential contest.” [The Hill, 7/24/2012]

Entity Tags: Mitch McConnell, Harry Reid, Ellen Miller, DISCLOSE Act of 2010, John McCain, Mark Steven Kirk, Susan Collins, Lamar Alexander, US Senate, Scott Brown, Richard Shelby, Sheldon Whitehouse

Category Tags: Campaign Finance

House Democrats try yet again to bring the DISCLOSE Act, which would require corporate and union donors to publicly disclose their campaign contributions, to the chamber for a vote. They are joined by a lone Republican, Walter Jones (R-NC). Democrats so far have 167 signers on the motion to move the bill to the floor for a vote; they need 218. Most observers agree that House Democrats will not get the 218 signatures they need. Recently, Democrats were blocked by Senate Republicans from bringing the bill to a vote (see July 14-17, 2012). [The Hill, 7/24/2012]

Entity Tags: Walter Jones, DISCLOSE Act of 2010, US House of Representatives

Category Tags: Campaign Finance

A bar graph issued by the Center for Responsive Politics shows, in the words of the liberal news Web site Think Progress, why Republicans are so strongly in favor of the January 2010 Citizens United decision that lifted restrictions on corporate donations for election and campaign purposes (see January 21, 2010). In 2010, the first election cycle that the decision was in effect, conservative outside groups outpaced liberal/progressive outside groups in spending for the first time since 1996. The data, compiled by the Center, is as follows:
1990 - Conservative outside groups outspent liberal outside groups $3.2 million to $2.4 million.
1992 - Conservative outside groups outspent liberal outside groups $9.4 million to $7.1 million.
1994 - Conservative outside groups outspent liberal outside groups $6.3 million to $2.6 million.
1996 - Liberal outside groups outspent conservative outside groups $9.9 million to $6.5 million.
1998 - Liberal outside groups outspent conservative outside groups $7.5 million to $5.2 million.
2000 - Liberal outside groups outspent conservative outside groups $29 million to $17 million.
2002 - Liberal outside groups outspent conservative outside groups $17.9 million to $4.6 million (see March 27, 2002).
2004 - Liberal outside groups outspent conservative outside groups $121.3 million to $68.5 million (see January - November 2004).
2006 - Liberal outside groups outspent conservative outside groups $38.7 million to $19.6 million.
2008 - Liberal outside groups outspent conservative outside groups $159 million to $120.3 million.
2010 - Conservative outside groups outspent liberal outside groups $183.3 million to $98.9 million (see January 21, 2010).
2012 (to date) - Conservative outside groups outspent liberal outside groups $166 million to $46.9 million.
The chart shows that outside spending was on the rise well before the Citizens United decision, but, as Think Progress legal analyst Ian Millhiser wrote in May 2012: “[A]nother trend is also clear. Prior to Citizens United, which was decided in 2010, left-leaning groups held a moderate-to-significant advantage in election spending. After Citizens United, conservatives absolutely dominated the field.” Millhiser acknowledged that Republican primary spending in the first few months of 2012 played a significant role in the $119.1 million disparity. “Nevertheless, the last two election cycles suggest that conservatives will continue to benefit from Citizens United even once the general election kicks into full gear,” he wrote. ”Citizens United gave such a boost to Republican candidates that outside spending by conservatives grew by more than $70 million from 2008 to 2010, even though 2008 was a presidential election year and outside spending has historically been much higher in these cycles than in off-year [midterm] elections.” [Think Progress, 5/2/2012; Center for Responsive Politics, 8/2012]

Entity Tags: Ian Millhiser, Center for Responsive Politics, Think Progress (.org)

Category Tags: Campaign Finance

Ohio Secretary of State Jon Husted (R-OH) suspends the two Democrats on the Montgomery County Board of Elections after they refuse to give ground in a conflict over extended in-person early voting hours for the November 2012 election. The elections boards in each Ohio county are made up of two Republicans and two Democrats. Dennis Lieberman and Tom Ritchie Sr. must appear at a hearing in Columbus that will determine whether Husted will remove them from office. Husted’s action is announced in a letter delivered to each of the two, which reads in part, “You leave me no choice but to begin the process necessary to remove you as members of the Montgomery County Board of Elections.” Early voting for Ohio citizens begins on October 2. The debate over in-person absentee voting, often called early voting, has been rancorous in some counties. In counties with strong Republican majorities, both Republicans and Democrats have voted to extend early voting hours for those counties’ residents. But in counties with strong Democratic majorities, Republicans have voted against extending those same voting hours. By law, Husted must cast the tie-breaking votes for those counties, and he has always voted against the voting hour extensions. Democrats in Ohio and other states were furious, saying that Husted was conspiring to dilute the Democratic vote in Ohio; Husted’s explanations have been that his votes saved Ohio money and that voters in those counties had “sufficient time already” for voting. Husted eventually agreed on uniform early voting hours for all 88 of Ohio’s counties, but the uniform hours fail to include weekend hours. Today, before his suspension, Lieberman proposed that Montgomery County continue to offer weekend voting hours, saying that Husted’s directive on the issue did not specifically forbid it. After a heated discussion, the Montgomery elections board voted 2-2 on the issue, sending the matter to Husted. Within hours, Husted replied with a sharply worded letter to the board forbidding the weekend voting hours, ordering the board to meet again that afternoon and rescind the motion, and threatened board members opposing his directive with firing. In the afternoon meeting, Lieberman refuses to rescind his motion. He is joined by Ritchie. Both are suspended later in the afternoon. Lieberman says during the discussion: “I believe that this is so critical to our freedom in America, and to individual rights to vote, that I am doing what I think is right, and I cannot vote to rescind this motion. In 10 years, I’ve never received a threat that if I don’t do what they want me to do, I could be fired. I find this reprehensible.” Republican board member Greg Gantt says during the Friday meeting that he has no intention of challenging Husted on this issue. When Lieberman compares Gantt’s position to that taken at the 1947 Nuremberg trials by Nazi war criminals, Gantt becomes irate, saying: “That’s not called for. Rescind the motion or not and let’s get out of here. I’m not going to sit here and listen to comments like that.… I am so disappointed that we’ve had such a great rapport on this board for the past decade, but it’s all [gone].” Lieberman retorts that Gantt has mocked Democrats’ concerns about being disenfranchised in previous discussions, saying, “I’m sorry if I’ve offended you Greg, but when you refer to our arguments as ‘hypothetical crap,’ I think you should expect some push back, and you got it.” Dozens of county residents attend the meeting, and their comments generally mirror the discussion among board members. Resident Elaine Herrick downplays any hardship caused by the restricted early hours, while Reverend Marty McMichael of a local Methodist Church says the refusal will deny some citizens the opportunity to vote, and predicts: “Whatever happens here today, the community will be strengthened by it. Because either the right thing will happen or the wrong thing will happen, and then we will make our voices known.” After he and Lieberman are suspended, Ritchie says that neither of the Republicans on the board moved to rescind his motion either, and he asks why they, too, were not suspended. “I intend to fight this,” he says. “I already have been in contact with legal counsel, and I’ll be prepared [at the hearing] to answer [Husted’s] allegations.” Ritchie calls the elimination of weekend voting “a continued attempt to suppress Americans from exercising their right to vote.” It is a tradition in many African-American churches for their congregations to go en masse to vote on the Sunday before the scheduled election—sometimes nicknamed “Souls to the Polls”—a tradition that will not be observed this election if Husted’s ruling stands. After suspending Lieberman and Ritchie, Husted announces that he has broken the Montgomery County tie, rejecting the weekend voting, and threatens other board members with suspension and possible firing if they cast their votes for weekend voting times. [Dayton Daily News, 8/17/2012; Buzzfeed, 8/17/2012]

Entity Tags: Marty McMichael, Dennis Lieberman, Elaine Herrick, Montgomery County (Ohio) Board of Elections, Greg Gantt, Tom Ritchie, Sr., Jon Husted

Category Tags: Voter Fraud/Disenfranchisement, Voting Rights

A campaign button for Gary Johnson, who bills himself as ‘The People’s President.’A campaign button for Gary Johnson, who bills himself as ‘The People’s President.’ [Source: Marsh Enterprises / CafePress (.com)]The third-party presidential campaign of former New Mexico Governor Gary Johnson (L-NM) accuses the Pennsylvania Republican Party of breaking the law in trying to keep Johnson off the ballot in that state. Johnson is running on the Libertarian ticket after failing to secure the Republican presidential nomination. Attorney Alicia Dearn writes a letter to the Philadelphia District Attorney’s office asking it to investigate allegations of attempted bribery and false impersonation of an FBI agent by Pennsylvania Republican Party operatives. Dearn writes in part, “Based on what I have been told by witnesses, it is my opinion that the Pennsylvania Republican State Committee has engaged in Watergate-style dirty tricks, in an attempt to keep Gov. Johnson off the ballot.” The allegations center around a private investigator, Reynold Selvaggio, allegedly hired by the Pennsylvania GOP to try to invalidate signatures submitted by the Johnson campaign. The Johnson campaign says that it submitted enough citizen signatures to obtain a place on the state ballot, a claim the Pennsylvania GOP is disputing. Dearn writes that Selvaggio either passed himself off as an FBI agent or implied that he was one (he is a retired FBI agent), and offered $2,000 to Johnson campaign volunteers in return for their testimony that they falsified signatures. Dearn also claims that Selvaggio threatened the volunteers with prosecution when they declined to cooperate. The state Republican Party calls Dearn’s allegations “baseless,” and, according to party spokesperson Valerie Caras, “This is simply a distraction from their own questionable activities.” They allege that Johnson has been working with Pennsylvania Democrats to gain signatures. Selvaggio tells a reporter: “That’s a lie. That’s completely a lie.” Dearn says she has heard similar stories from six different campaign volunteers, and writes, “Should these witness accounts indeed be true, it appears that, in order to bolster their challenge to the Johnson campaign’s candidacy, the Pennsylvania Republican State Committee or its agents sought to obtain witness testimony by unlawful means.” Johnson is on the ballot in 47 states plus the District of Columbia. Republicans in Pennsylvania have succeeded in getting tens of thousands of Johnson signatures invalidated. [Daily Caller, 10/5/2012; New York Times, 10/14/2012] Johnson will succeed in remaining on the Pennsylvania ballot, where state Republicans fear he will drain much-needed votes from the Republican candidate, Mitt Romney (R-MA), even though Republican National Committee (RNC) chairman Reince Priebus calls Johnson a “non-factor” in the election. The chairman of the Pennsylvania GOP, Robert Gleason, is more worried, comparing Johnson’s impact on the race to Green Party candidate Ralph Nader in 2000, when Nader drew just enough votes in Florida to mar Democrat Al Gore’s chance for victory. “This election will be close—if you remember, [former President George W.] Bush lost by only something like 143,000 votes in 2004,” he says. “So we play the game hard here.” Some pundits believe Johnson will hurt President Obama’s chances in Colorado. Republicans say that Conservative Party candidate Virgil Goode, on the ballot in Virginia and 28 other states, may also draw key votes from Romney in several states. Democrats say Johnson may draw key votes from Romney in Nevada, where polls show Romney and Obama essentially tied. [New York Times, 10/14/2012]

Entity Tags: Valerie Caras, Gary Earl Johnson, Barack Obama, Alicia Dearn, Pennsylvania Republican Party, Reince Priebus, Willard Mitt Romney, Virgil Goode, Robert Gleason, Reynold Selvaggio

Category Tags: Voter Fraud/Disenfranchisement, Voting Rights

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