It’s nice work if you can get it—“it,” in this case, being other folks’ hard-earned cash. The world of political fundraising has a big problem.Source: Political Fundraising Has a Big, Nasty Secret
Showing posts with label Super PACs. Show all posts
Showing posts with label Super PACs. Show all posts
Political Fundraising Has a Big, Nasty Secret
Elizabeth Warren to Forgo Receptions and Fund-Raisers With Big Donors
Senator Elizabeth Warren on Monday escalated her presidential campaign’s battle against big money in politics, announcing that her bid for the Democratic nomination will forgo traditional fund-raising methods meant to cultivate a candidate’s relationships with the wealthy.Source: Elizabeth Warren to Forgo Receptions and Fund-Raisers With Big Donors
Super-PACs: So easy, a college student can do it
Three Duke University undergraduate students have started their own super-PAC, FEC filings show. And even the college youths are aware how absurd that sounds.
“We started [the super-PAC] with the intention of highlighting the absurdity of the process itself,” Stefani Jones, a 20-year-old sophomore and the group’s treasurer, told The Hill.
Super-PACs are formally titled independent expenditure-only committees, and came after a string of Supreme Court decisions beginning with Citizens United v FEC. These groups can raise and spend unlimited funds as long as they do not coordinate with a candidate or party.
The group started the super-PAC, Americans for a Better Tomorrow, Yesterday, for a class project. The class is titled “Congressional Gridlock” and focuses on what causes gridlock in Congress and our political system.
via thehill.com
Yes, a college student could file the paperwork to start a Super PAC pretty easily -- it is the ongoing administration and potential legal pitfalls of running a Super PAC that cause PACs to need help from attorneys.
Yes, a college student could file the paperwork to start a Super PAC pretty easily -- it is the ongoing administration and potential legal pitfalls of running a Super PAC that cause PACs to need help from attorneys.
Romney: Throw Out and Rewrite Campaign Finance Laws - Influence Alley
GOP presidential candidate Mitt Romney on Tuesday called the law regulating the relationships between campaigns and Super PACs "a very strange, awkward and inappropriate piece of legislation" and said campaign finance laws need to be rethought.
At an event in Livonia, Mich., a reporter asked Romney about the fact that, as the New York Times reported over the weekend, the Romney campaign and a Super PAC supporting him use some of the same consultants.
Romney's response: "I think we've been very careful to make sure we're following the law as well as the intent of the law. I also think that the law itself is a very strange, awkward and inappropriate piece of legislation. I think this idea that people are limited in giving to a campaign and that they're unlimited in giving to a Super PAC and that, therefore, the campaign can't guide the very advertisement that's affecting its future makes no sense at all. I think our campaign finance laws ought to be thrown out and rewritten to remove this extraordinary anomaly."
Hybrid PACs: Super PACs And Traditional PACs Can Merge
Following its defeat in Carey v. FEC, the Federal Election Commission has announced new rules that allow traditional PACs to open a separate bank account to create a Super PAC.
Related Articles:
The Commission is providing the following guidance to the public on how it intends to proceed consistent with the stipulated order and consent judgment in Carey: The Commission will no longer enforce 2 U.S.C. §§441a(a)(1)(C) and 441a(a)(3), as well as any implementing regulations, against any nonconnected political committee with regard to contributions from individuals, political committees, corporations, and labor organizations, as long as (1) the committee deposits the contributions into a separate bank account for the purpose of financing independent expenditures, other advertisements that refer to a Federal candidate, and generic voter drives (the “Non-Contribution Account”), (2) the Non-Contribution Account remains segregated from any accounts that receive source-restricted and amount-limited contributions for the purpose of making contributions to candidates, and (3) each account pays a percentage of administrative expenses that closely corresponds to the percentage of activity for that account. Until such time as the Commission adopts a new regulation, nonconnected political committees that wish to establish a separate Non-Contribution Account consistent with the stipulated judgment in Carey should: Notify the Commission of their intent to do so. In the case of political committees already registered with the FEC, the committee should notify their Reports Analysis Division analyst(s) by letter or electronic submission(3) of their intent to establish a separate Non-Contribution Account. In the case of newly registering political committees, include the notification letter with their Form 1 (Statement of Organization). The notification letter may state the following: “Consistent with the stipulated judgment in Carey v. FEC, this committee intends to establish a separate bank account to deposit and withdraw funds raised in unlimited amounts from individuals, corporations, labor organizations, and/or other political committees. The funds maintained in this separate account will not be used to make contributions, whether direct, in-kind, or via coordinated communications, or coordinated expenditures, to federal candidates or committees.”This is a huge deal. It means any non-connected PAC can start a Super PAC with the same name and accept unlimited contributions just by filing a paper with the FEC. It means the Super PAC explosion is going to get a whole lot bigger. Obviously, there are still many unanswered legal questions, and any PAC considering doing this should consult an attorney. But this could be a game changer for many PACs. It is also going to be a reporting nightmare until the FEC updates its forms.
Related Articles:
Roll Call: The Federal Election Commission said today that it is changing its rules for a new type of political action committee that is a hybrid of a super PAC and a traditional hard money committee.The agency released a legal guidance saying that it would no longer enforce previous prohibitions on how much corporations and labor unions may give to hybrid PACs as long as funds given to the super PAC component are kept in a separate bank account than the funds for the traditionally regulated PAC.
Huff Post: “This is a fantastic opportunity for grassroots & citizens PACs ... to significantly enhance their electoral & political advocacy, and they’d be nuts not to hire a campaign finance lawyer to help them navigate through this," Dan Backer, National Defense PAC's counsel and the principal attorney for DB Capitol Strategies, said by email. “I think folks have so far radically underestimated the profound changes that Carey v FEC will have on the entire PAC landscape.”The new FEC rules give guidance on how to register and disclose contributions for a hybrid PAC. This guidance includes a new form letter to be appended to PAC registrations announcing the intention of forming a PAC and super PAC under the same umbrella and new directions on how to use the current disclosure forms to differentiate unlimited contributions from limited contributions.
Holtzman Vogel: FEC Provides Guidance To PACs On How To Set Up Unlimited IE Accounts. The FEC issued this statement yesterday, explaining that nonconnected PACs may now established separate accounts that are not subject to the normal contribution limits for the purpose of funding independent expenditures.
And since today is apparently Super PAC Day, here are some general Super PAC articles:
2011 sees super PAC explosion
And since late September, super PACs — which may raise and spend unlimited sums of money to advocate for or against political candidates — have been forming at a rate of about one per day. That’s only happened during one other similar period since the frenzied days immediately preceding the 2010 midterm election.
After together spending more than $65 million last election cycle, campaign finance watchers expect super PACs will easily pump nine figures worth of cash into federal races.
“It’s now the hot, new thing, and my reaction to all of this is, ‘All right!’” said former Federal Election Commission Chairman Brad Smith, who supports campaign finance deregulation and founded the nonprofit Center for Competitive Politics. “Super PACs broaden the playing field. They generate more political speech. Incumbents can’t just chase competitors away with a big war chest because these independent groups can act quickly and nimbly.”
via politico.com
The Influence Industry: Revised primary schedule could shield super PAC donors
Super PACs, a new breed of political group unrestrained by spending or contribution limits, are becoming big players in the 2012 campaigns. Each of the major Republican presidential candidates has at least one of these groups on his or her side, and the super PACs are expected to attract hundreds of millions of dollars by the time the White House race is over.
The next disclosure deadline for super PACs is Jan. 31, when FEC reports covering the last six months of 2011 are due.
Under the old primary schedule, that didn’t matter much because the Iowa caucuses — the first Republican nominating contest — were going to be held in early February. That meant that any super PAC would be required to disclose its 2011 donors by the time the first 2012 ballots were cast.
But the schedule has changed dramatically. The Florida Republican Party is moving its primary to the end of January, prompting a scramble by other early-voting states — New Hampshire, South Carolina, Nevada and Iowa — to move up their dates even more. The Iowa caucuses are now expected to be held on Jan. 2 or 3.
Mr. Colbert: or, How States Might Learn to Love Campaign Finance Reform
This is where Mr. Colbert plays his biggest role in the debate. Through his comedy (and his legion of fans known as the “Colbert Nation”), he has started a real discussion of the issue. An ad he ran during the Iowa caucus parodying Super PAC’s and Rick Perry’s name has become a viral favorite. Countless news outlets have covered and debated his Super PAC. Rarely has campaign finance law been the topic of scuttlebutt and water cooler conversation; but it seems that whatever Mr. Colbert deems relevant these days becomes so overnight.
Either way, for those states with extremely lenient or limiting campaign finance laws, the debate might be coming to a statehouse near you very soon, and it won’t be very funny at all.
Elite Donors Do Double Duty: Presidential Super PACs Attract Wealthy Donors Who Have Maxed Out to Candidates
During the second quarter of 2011, more than 50 individuals donated the legal maximum to Republican presidential candidate Mitt Romney and also dug into their pockets deeper and made additional contributions to Restore Our Future, a candidate-specific Super PAC formed to promote Romney's campaign for president.A new analysis by Democracy 21, the Campaign Legal Center and the Center for Responsive Politics shows that 55 of the 75 individuals that donated to Restore Our Future also contributed to Romney's presidential campaign committee. These double-dipping donors represent almost three-quarters (73 percent) of all of Restore Our Future's individual donors. Their contributions to Restore Our Future ranged in size from as little as $3,500 to as much as $100,000, $500,000 and even $1 million. These contributions are far in excess of the $2,500 limit per individual, per election, that applies to contributions made to Romney or any other federal candidate.
via democracy21.org
Trevor Potter Helps Stephen Colbert Form “Anonymous Shell Corporation” to Avoid Disclosure
| The Colbert Report | Mon - Thurs 11:30pm / 10:30c | |||
| Colbert Super PAC - Trevor Potter & Stephen's Shell Corporation | ||||
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Last night, Trevor Potter appeared again on Comedy Central’s “The Colbert Report” as host Stephen Colbert’s “personal lawyer”. Colbert, concerned about the lack of large corporate contributions to his Super PAC, enlisted Potter to help him form a 501(c)(4) to keep the identities of his big donors a secret.
And thus was born “Anonymous Shell Corporation” which will operate as a 501(c)(4) as "Colbert SuperPac SHH Institute" so that corporations can give to his political efforts anonymously, since they seem shy of admitting their political activities to shareholders and customers.
via clcblog.org & colbertnation.com
Would a PAC By Any Other Name Sound As Sweet? And "organic apple pie"?
Yet based on the names of these groups alone, the average voter rarely has enough information to determine the agenda of a particular PAC -- especially leadership PACs and super PACS.For instance, last year, conservative political operatives created a super PAC known simply as American Crossroads -- a group that raised $28 million thanks, in part, to backing from Karl Rove, the former strategist for President George W. Bush, and its ability to collect unlimited contributions from individuals and corporations.
And this year, liberal political operatives -- led by former Obama administration officials Bill Burton and Sean Sweeney -- established a super PAC called Priorities USA Action.
"PACs want to sound wholesome and healthful, akin to motherhood and organic apple pie," Larry Sabato, the director of the Center for Politics at the University of Virginia, told OpenSecrets Blog. "That way, it is tougher to attack them because people say, 'Whoa, that name seems nice -- who could be against freedom or strength or a better tomorrow?'"
via opensecrets.org
It is "organic" apple pie now?
Super PACs Go Big for 2012
- Make Us Great Again PAC, supporting Texas Gov. Rick Perry, was founded by Perry’s former chief of staff Mike Toomey. The group plans to spend $55 million.
- Restore Our Future, a super PAC backing former Massachusetts Gov. Mitt Romney, raised $20 million from January through June. Charles Spies, the group’s treasurer, was general counsel for Romney during his 2008 White House run.
- Keeping Conservatives United, which supports Rep. Michele Bachmann, R-Minn., is already spending money on television advertising.
Opinion: Democracy loses with super PACs - Fred Wertheimer
In simple terms, the presidential candidate super PAC is nothing more than a shadow arm of the candidate’s campaign created to raise unlimited contributions that cannot be legally raised by the campaign.
The idea that it is some kind of separate operation is nonsense. The candidate super PAC allows donors to bypass the restrictions on contributions to the candidate and provide unlimited and potentially corrupting contributions to directly support the presidential candidate.
via politico.com
Super PACs may leave official campaigns in dust
Public financing for presidential campaigns? Dead.
Contribution limits? On the ropes.
“Super PACs” are the new face of presidential fundraising. These political action committees allow big donors — including corporations, unions and even anonymous donors — to play an outsized role in politics.
While Barack Obama, Mitt Romney and Rick Perry raise contributions $100 or $1,000 at a time for their official campaigns, insiders are busily raising six- and seven-figure donations for supposedly independent Super PACs.
What Is a Super PAC?
Super PACs have become an increasingly popular political vehicle for outside groups, effectively replacing so-called 527 organizations, because Super PACs allow for the acceptance of unlimited individual and corporate contributions while permitting express advocacy in communications. Although 527 organizations could also raise unlimited individual and corporate contributions, they could not engage in express advocacy for fear of triggering FEC registration and the requisite contribution limits and prohibitions. The advent of the Super PAC, therefore, fundamentally changed the political landscape and such entities will likely continue to play a prominent role for many years to come.
via wileyrein.com
Super PAC backing Perry to spend $55 million - politics - Decision 2012 - msnbc.com
The new super PAC backing Rick Perry has drawn up plans to spend $55 million as part of an ambitious campaign strategy aimed at blowing away the Texas governor's rivals in early primary states and securing him the Republican nomination by next spring, according to internal committee documents obtained by NBC News.
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The documents underscore the central role that such super PACs — or super political action committees unconstrained by any limits on how much they can collect from wealthy donors and corporations — will play in the 2012 presidential election.
They also show that the strategists behind the new Perry super PAC, led by a longtime Perry confidant and backed with infusions of cash from major Perry donors, are preparing to mount a full service political operation — complete with TV advertising, direct mail and social media outreach.
via msnbc.msn.com
Huntsman Ad Man Jumps to Super PAC
Davis' move appears designed to provide him and his team with a larger budget to create and distribute pro-Huntsman ads using the unlimited donations that a 2010 Supreme Court ruling allowed 'super PACs' to accept.
Lines Blurring Between PACs and Candidates
The event was not a fund-raiser for Mr. Romney’s campaign, however, but for Restore Our Future, a political action committee founded by his allies. And only when Mr. Romney left the room did one of the group’s officials stand up to brief the donors on their plans: to raise and spend millions of dollars in unrestricted campaign donations — something presidential candidates are forbidden to do themselves — to help elect Mr. Romney president.
Mr. Romney’s appearance underscored the increasingly blurry line between presidential candidates and the so-called Super PACs that have proliferated since a 2010 Supreme Court ruling allowed independent groups to raise unlimited amounts to promote candidates.
Most of this year’s presidential candidates are now backed by one or more dedicated Super PACs. Unlike the broad-based independent groups backing multiple candidates that flooded last year’s Congressional elections with negative advertising — playing a role similar to that of traditional party committees — the new groups are each dedicated to the election of a single candidate.
via nytimes.com
Rick Perry's fundraising could be limited by SEC rules
Nearly two weeks after announcing his presidential bid, Texas Gov. Rick Perry has displayed Texas-size ambition and signs of early success in raising the large sums necessary for a national campaign. But unlike other candidates, Perry may not have ready access to one lucrative source of support: Wall Street.Perry will be hamstrung by new Securities and Exchange Commission rules that inhibit donations from financial services company employees to sitting governors. The regulations are intended to limit contributions that could influence state contracting decisions.
For this and other reasons, Perry is likely to be more reliant on a familiar network of corporate and construction barons and conservative fundraisers who backed his campaigns for governor, as well as a cluster of "super PACs," the new entities that can legally raise unlimited sums from wealthy donors, including corporations, for independent campaign efforts.
via latimes.com
Who's Who in the World of Super PACs? Where does the money come from?
According to research by the Center for Responsive Politics, all liberal super PACs have raised a combined $7.61 million during the first half of 2011 -- with more than 80 percent of their money coming from 23 donors.Of the $6.24 million donated by these elite donors:
Meanwhile, conservative super PACs have collected $17.61 million so far -- with more than 80 percent of their money coming from 35 donors.
- 45 percent came from people in the entertainment industry
- 26 percent came from chief executive officers, excluding those from the entertainment industry
- 25 percent came from unions
Of the $14.155 million donated by these elite givers:
Several Republican presidential candidates have also seen their supporters organize super PACs.
- 66 percent came from chief executive officers
- 18 percent came from corporate treasuries
- 16 percent came from individuals employed by Bain Capital, the company Romney founded in the 1980s
via opensecrets.org
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