FEC Press Releases on Citizens United, Rulemaking Standoff

PRESS RELEASES from the Federal Election Commission

For Immediate Release	Contact:	Judith Ingram
February 5, 2010		Julia Queen
		Christian Hilland

FEC Statement on the Supreme Court’s Decision in Citizens United v. FEC

Washington – The Federal Election Commission today announced that, due to the Supreme Court’s decision in Citizens United v. FEC, it will no longer enforce statutory and regulatory provisions prohibiting corporations and labor unions from making either independent expenditures or electioneering communications. The Commission also listed several actions it is taking to fully implement the Citizens United decision.

In Citizens United v. FEC, issued on January 21, 2010, the Supreme Court held that the prohibitions in the Federal Election Campaign Act (FECA) against corporate spending on independent expenditures or electioneering communications are unconstitutional. The Supreme Court upheld statutory provisions that require political ads to contain disclaimers and be reported to the Commission. Provisions addressed by the decision are described below.

The Court struck down 2 U.S.C. 441b, which prohibits, in part, corporations and labor organizations from making electioneering communications and from making independent expenditures—communications to the general public that expressly advocate the election or defeat of clearly identified federal candidates.

The Court upheld 2 U.S.C. 441d, which requires that political advertising consisting of independent expenditures or electioneering communications contain a disclaimer clearly stating who paid for such communication.

The Court upheld 2 U.S.C. 434, which requires certain information about electioneering communications and independent expenditures, and the contributions received for such spending, to be disclosed to the Commission and to be made public.

The Commission is taking the following steps to conform to the Supreme Court's decision.

The Commission will no longer enforce the statutory provisions or its regulations prohibiting corporations and labor organizations from making independent expenditures and electioneering communications.

The Commission is reviewing all pending enforcement matters to determine which matters may be affected by the Citizens United decision and will no longer pursue claims involving violations of the invalidated provisions. In addition, the Commission will no longer pursue information requests or audit issues with respect to the invalidated provisions.

The Commission is considering the effect of the Citizens United decision on its ongoing litigation.

The Commission intends to initiate a rulemaking to implement the Citizens United opinion. It is reviewing the regulations affected by the invalidated provisions, including but not necessarily limited to the following:

11CFR114.2(b)(2) and (3), which implement the FECA’s prohibition on corporate and labor organization independent expenditures and electioneering communications;
11 CFR 114.4, which restricts the types of communications corporations and labor organizations may make to those not within their restricted class;
11 CFR 114.10, which permits certain qualified nonprofit corporations to use their treasury funds to make independent expenditures and electioneering communications under certain conditions;
11 CFR 114.14, which places restrictions on the use of corporate and labor union funds for electioneering communications; and
11 CFR 114.15, which the Commission adopted to implement the Supreme Court's decision in Wisconsin Right to Life, Inc. v. FEC.

The Commission is also considering the effect of Citizens United on the ongoing Coordinated Communications rulemaking. 74 FR 53893 (Oct. 21, 2009). The Commission is issuing a Supplemental Notice of Proposed Rulemaking so that interested persons may submit comments regarding issues presented by Citizens United. The additional comment period will close on February 24, 2010. The Commission intends to hold a hearing on the Coordinated Communications rulemaking on March 2 and 3, 2010.

Revisions to Commission reporting requirements, forms, instructions, and electronic software, may be required.

Corporations and labor organizations that intend to finance independent expenditures or electioneering communications should:

Include disclaimers on their communications, consistent with FEC regulations at 11 CFR 110.11;
Disclose independent expenditures on FEC Form 5, consistent with FEC regulations at 11 CFR 109.10; and
Disclose electioneering communications on FEC Form 9, consistent with FEC regulations at 11 CFR 104.20.

The Commission notes that the prohibitions on corporations or labor organizations making contributions contained in 2 U.S.C. 441b remain in effect.

Political committees with specific questions regarding their reporting obligations may contact the Reports Analysis Division at (800) 424-9350 (at the prompt, press 5). Others may contact the Information Division at (800) 424-9530.

The Federal Election Commission (FEC) is an independent regulatory agency that administers and enforces federal campaign finance laws. The FEC has jurisdiction over the financing of campaigns for the U.S. House of Representatives, the U.S. Senate, the Presidency and the Vice Presidency. Established in 1975, the FEC is composed of six Commissioners who are nominated by the President and confirmed by the U.S. Senate.

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...rulemaking standoff

For Immediate Release	Contact:	Judith Ingram
January 20, 2011		Julia Queen
		Christian Hilland
		Mary Brandenberger

FEC VOTES ON TWO DRAFTS OF AN NPRM ON INDEPENDENT EXPENDITURES AND ELECTIONEERING COMMUNICATIONS, APPROVES FINAL AUDIT REPORT

WASHINGTON – At its first open meeting of the year, the Federal Election Commission today voted on two drafts of a Notice of Proposed Rulemaking (NPRM) in response to the U.S. Supreme Court’s 2010 decision in Citizens United v. FEC. The Commission also approved the final audit report of a state party committee.

The Commission was unable to approve either of the two NPRM drafts on Independent Expenditures and Electioneering Communications by Corporations and Labor Organizations. The NPRM, if approved, would seek public comment on changes to the FEC’s rules regarding corporate and labor organization funding and reporting of expenditures, independent expenditures and electioneering communications. The two drafts addressed the following issues:

Draft A addressed: 1) eliminating regulations that prohibit the use of corporate and labor organization general treasury funds to finance expenditures, independent expenditures and electioneering communications; 2) eliminating a regulation that permits corporations and labor organizations to make only electioneering communications that are not the functional equivalent of express advocacy; 3) eliminating prohibitive regulations regarding express advocacy in communications to the general public and revising the standards for voter registration and get-out-the-vote (GOTV) drives; 4) revising the Commission’s corporate facilitation rules and related conduit rule; 5) revising certain reporting requirements pertaining to independent expenditures and electioneering communications in order to provide comprehensive disclosure of such spending; and 6) revising the regulations governing financial participation by foreign nationals in the U.S. electoral process.

Draft B addressed: 1) eliminating regulations that prohibit the use of corporate and labor organization general treasury funds to finance expenditures, independent expenditures and electioneering communications; 2) eliminating a regulation that permits corporations and labor organizations to make only electioneering communications that are not the functional equivalent of express advocacy; 3) eliminating prohibitive regulations regarding express advocacy in communications to the general public and revising the standards for voter registration and get-out-the-vote (GOTV) drives; and 4) revising the Commission’s corporate facilitation rules.

"I remain hopeful that the Commission will be able to reach consensus on a Notice of Proposed Rulemaking addressing corporate and labor union expenditures so that stakeholders and the general public have an opportunity to have their voices heard by the Commission,” said Commission Chair Cynthia L. Bauerly. “Today we saw that there continues to be disagreement between the members of the Commission over the proper scope of the proposed rulemaking. Nonetheless, I felt the discussion was positive and necessary towards finding common ground on this topic. "

The Commission also approved a final audit report for the Tennessee Republican Party, covering campaign finance activity between January 1, 2005 and December 31, 2006. The Commission found that the committee (a) misreported its receipts, disbursements, and cash on hand amounts, (b) received contributions from unregistered political organizations, which may have been made with impermissible funds, and (c) failed to properly document salary and wage expenditures. The report also addressed an additional issue related to potential excessive coordinated party expenditures made in 2006 by the committee, noting that the Commission did not approve a staff recommendation by the required four votes.

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