Tag Archives: Federal Elections Commission

Federal Elections Commission dysfunctional and not doing its job

The Federal Elections Commission is clearly dysfunctional and not able to do its job. It is helping to foster public cynicism and disgust with the current political process. Comprised of two Republicans and two Democrats it is gridlocked in partisan politics and seems like a deer caught in the headlights – unable to move or respond. It’s decisions are repeated tie votes or no action.

One of the recent glaring examples is their continued non response to what are called “ghost corporations” funneling money into political campaigns and skirting public disclosure of donors and public accountability. The Washington Post in several recent articles has focused light on the issue arising out of the 2011 US Supreme Court corporate “Citizens United” decision which opened the floodgates on money in elections.

A March 11, 2016 Washington Post article entitled “How ‘ghost corporations’ are funding the 2016 election” by Matea Gold and Anu Narayanswany  outlines the situation:

“The 2016 campaign has already seen the highest rate of corporate donations since the Supreme Court unleashed such spending with its 2010 Citizens United v. FEC decision.
One out of every eight dollars collected by super PACs this election cycle have come from corporate coffers, including millions flowing from opaque and hard-to-trace entities, according to a Washington Post analysis of federal campaign finance filings.
So far, 680 companies have given at least $10,000 to a super PAC this cycle, together contributing nearly $68 million through Jan. 31, The Post found. Their donations made up 12 percent of the $549 million raised by such groups, which can accept unlimited donations.

The main problem is that many of these PAC donations are untraceable and allow donors to be anonymous while making multi-million dollar donations. The ghost corporations in question making the donations  only list a corporate name and an agent, leaving the public with no idea who is trying to influence the election.

This is a reason why the US Supreme Court’s corporate Citizens United decision needs to be overturned. Sixteen states so far have urged Congress to amend the US Constitution to say that money is not free speech, corporations do not have the sames rights as people and all campaign money must be regulated and disclosed.

Washington State this November is voting on Initiative 735 to become the 17th state to urge Congress to amend the US Constitution to overturn the corporate Citizens United and othed decisions which have opened the anonymous floodgate of corporate and other dark money in elections.

Two recent cases provide clear evidence that the Federal Elections Commission is broken

Two recent decisions by the Federal Elections Commission provide clear evidence that the Commission is broken and nonfunctional just like Congress. On split partisan votes it took no action on two separate cases.

As the Washington Post reported in an article entitled, “FEC deadlocked on allegations that Gingrich used 2012 campaign to sell books“:

“Former House speaker Newt Gingrich will not face a Federal Election Commission investigation into allegations that he broke federal law by using his 2012 presidential campaign to promote books that he and his wife wrote, documents released Friday show.

…The FEC’s top attorney recommended in 2013 that the agency investigate Gingrich, but the case languished and the six-member commission eventually deadlocked along partisan lines in June, with the three Republican commissioners voting against an inquiry.

The general counsel’s initial review found evidence of seven violations of campaign finance laws, the FEC documents show. Among the findings: Gingrich’s campaign staff and the employees of his production company at times swapped duties as the then-candidate was holding concurrent campaign rallies and book-signing events….

The general counsel also found evidence that the campaign’s resources benefited Gingrich personally, noting that his campaign website included more than 80 links to the Gingrich Productions website, along with blog entries promoting book signings and movie screenings. Many of the links went to pages urging supporters to buy books written by Newt and Callista Gingrich.”

The second case also was decided on a split partisan vote, meaning no action was taken on what clearly appeared to be political action and avoidance of reporting of campaign donations. As the Washington Post reported “How a film about Obama’s communist ‘real father’ won at the FEC “ was also won because of a partisan split. It is a revisit of the Hillary Clinton case that was decided in the so called “Citizens United” decision by the US Supreme Court which opened the floodgates on money in elections since then. The film in that case mailed also right before the election was  “Hillary:  the movie”

As the Washington Post post reported:

“Four years ago, voters in Ohio and a few other swing states opened their mailboxes to discover a documentary they’d never ordered. “Dreams From My Real Father” posited that the president of the United States was not the son of Barack Obama Sr., but of Frank Marshall Davis, a Communist activist and poet who moved to Hawaii late in life ….

In 2014, a progressive activist named Loren Collins filed a Federal Election Commission complaint against Gilbert, arguing that the filmmaker had a responsibility to disclose his donors. The FEC finally weighed in last month, and in a typical 3-3 split decision — by law, the FEC is perpetually split between Democratic and Republican commissioners — Gilbert’s DVD mailing was considered “press,” not subject to donor disclosure, comparable to any political documentary.

“With the right framing, even the most dishonest, smear-mongering attacks can skirt FEC regulations under our current regulations,” said Collins. “His mailing cost at least $1 million, and that could’ve been paid for by Mitt Romney or Donald Trump, and there’s no way to know. Taken together with [the Supreme Court’s Citizens United decision], this could have very serious negative ramifications. The general counsel’s report might as well be an instruction manual on how to avoid the transparency that comes with public disclosure of financiers.”

Asking a Commission composed of partisan politicians divided evenly between Republicans and Democrats in a clearly highly charged partisan Washington DC atmosphere is a sure way to have more gridlock. If anything the decisions need to be made by those without a direct stake in a partisan outcome. Time to restructure the FEC to  enable it to make decisions. The simplest  solution is to add a fifth member chosen by the other four members. Another alternative is to remove partisan politicians  and to have the issues decided by a panel of judges. Clearly the current  system is broken.

 

Lack of Timely Congressional Public Disclosure is an Insult to the Voters

The latest campaign contribution and expenditure figures for Congressional races reported by the Federal Elections Commission (FEC) are dated from the end of July 2010 for a report only through June 30, 2010. In an age of electronic and computer nimbleness when news can circulate the globe in a matter of seconds, campaign finance disclosure by candidates running for the US Senate and the House seem to be in the pre-telegraph era.

This antiquated campaign disclosure system hurts the democratic process by denying the public access to campaign spending and contribution information.  It is an insult to the public and benefits special interests trying to obscure and cloud the impact money is having in Congressional races. The public has a right to know who is contributing to candidates and how much is being spent. The current system is a failure for timely disclosure.

And this is not even discussing the most recent insult – the unfettered and unrestricted flow of special interest and corporate dollars flowing into committees and organizations, including those that are filed with the IRS as 501-c-4 organizations that are not required to disclose their donors at all.  This is all the result of the conservative faction put on the US Supreme Court which in their 5 to 4 decision of Citizens United vs the Federal Elections Commission ruled that money and free speech are one and the same.

Current reporting to the FEC by US Senate and House candidates is on a quarterly basis.  Reports are due April 15, July 15, Oct 15, and Jan 31.  There is an additional Pre-Primary and Pre-General Election report. The Pre-General Election report covers Oct 1 -13 and is due Oct 21.

Meanwhile amazingly, Presidential campaigns are required to report monthly as are Party organizations and PAC’s.  Monthly reports are due on the 20th of the following month.

If you haven’t yet figured it out, its Congress who set the reporting requirements for Congress to only report quarterly.  And a further delay is that while the House and Presidential campaigns file directly electronically with the FEC,  the Senate adds additional delay in reporting by first requiring that a PAPER copy be filed with the US Senate which then forwards that to the FEC. Yes the word PAPER is correct. Talk about being behind the times.

Meanwhile here in Washington State  reports for candidates are filed with our Public Disclosure Commission monthly, electronically and the deadline is the 10th of the following month.  This includes races for statewide office like Governor which encompasses obviously the same geographical area as a US Senate race.

Two separate bills are before Congress to increase public disclosure that deserve public support. The first is a perennial bill to require Senate candidates to file electronic copies of their reports. This is Russ Feingold’s bill,  the Senate Campaign Disclosure Parity Act. He notes it would save taxpayers $250,000.  As Feingold states,

Under the current paper filing system, the FEC’s detailed coding, which allows for more sophisticated searches and analysis, is completed over a week later for Senate reports than for House reports. This means that the final disclosure reports covering contributions made during the first two weeks of October are often not subject to detailed scrutiny before the election. Detailed campaign expenditure information is never available electronically because the FEC does not enter that information into its databases.

Help urge the US Senate to join the electronic computer era. Send an e-mail to your Senators urging they join the digital revolution in reporting campaign contributions. Click on the link to email Washington State’s Senators:

Senator Maria Cantwell
Senator Patty Murray
To e-mail Senators in other states go to the US Senate website.

The other legislation that Republicans have blocked to date is the DISCLOSE Bill.  As noted in a citizen co-sponsor website at http://www.discloseact.com/

The DISCLOSE Act legislation will address seven major points:

1. Enhance Disclaimers

Make CEOs and other leaders take responsibility for their ads.

2. Enhance Disclosures

It is time to follow the money.

3. Prevent Foreign Influence

Foreign countries and entities should not be determining the outcome of our elections.

4. Shareholder/Member Disclosure

We should allow shareholders and members to know where money goes.

5. Prevent Government Contractors from Spending

Taxpayer money should not be spent on political ads.

6. Provide the Lowest Unit Rate for Candidates and Parties

Special interests should not drown out the voices of the people.

7. Tighten Coordination Rules

Corporations should not be able to “sponsor” a candidate

Please also urge your Senatore to pass this bill. The House has already done so.

For previous discussion of these issues see also:

US Senators Still Trying to Figure out Computers and Internet

Republicans in US Senate Stop Campaign Disclosure Bill

Obama Still Top Fundraiser Despite Clinton’s Latest Efforts

To date Barack Obama has raised some $75 million in his quest for the Presidency. Hillary Clinton has raised $63 million – some $12 million less.

Much hoopla is being raised about the fact that Clinton raised some $3 million more in the third quarter numbers through September 30th than Obama did. The New York Times claims in its headline that “Clinton Steals Obama’s Fund Raising Thunder” But one can look at these numbers in different ways. Hillary’s figure go from $20 million to $22 million to $23 million for the three quarters of this year. Pretty consistent numbers.

Barack’s number go from $25 million to $31 million to $19 million. In my mind $19 million is pretty close to $22 million. A shift in momentum -maybe but he is keeping pace with Hillary despite lower third quarter numbers and is still the overall leader in fundraising. In addition he has some 140,000 more new donors than Hillary does.

In reality both candidates are to be commended for their strong campaigns, reaching out to new donors and continuing to show fundraising strength. Individual donors are limited to $2100 for the primary election. An additional $2100 individual contribution can be made for the general election. Both Obama and Clinton have raised additional cash (beyond the figures reported above for the primary) which can only be used for the general election. Whoever loses will have to return these funds to the donors.

When all is said and done, summer is a hard time for any candidate to raise money. The remaining quarter before the caucuses and primaries start in January will be a real measure of whether a significant change has taken place. Once the primaries and caucuses start all bets are off as voting results will skew fundraising momentum day to day.

CNN politics reports that John Edwards came in third in fundraising with $7 million raised for the third quarter. Bill Richardson reports that he raised $5.2 million.

Official 3Q fundraising reports for all candidates are due on October 15th and are filed with the Federal Elections Commission.

In truth the public deserves better reporting than the current system requires. All candidates should be required to file monthly reports rather than quarterly reports. Washington State has had monthly reporting for a number of years, with reports due by the 10th of each month. See Washington State Public Disclosure Commission.

Monthly reporting would give the public quicker access to campaign finance records and more accountability on who’s supporting campaigns.