In a post, titled “A HUGE DEVELOPMENT IN FEC 527 ENFORCEMENT?” from Rick Hansen’s Election Law Blog (http://electionlawblog.org), it appears the FEC has made a recent ruling on allowing more flexibility on communications for 527 political committees.

According to Hansen:

The FEC, without a press release, recently posted this letter (see also here) in regards to a complaint filed by Democracy 21 and the Campaign Legal Center against the Lantern Project (MUR 5854). The Lantern Project ran ads that were critical of Rick Santorum, then running for U.S. Senate reelection, but that did not contain express advocacy. For example, one ad said: “From privatizing Social Security to cutting student loans for the middle class, when Rick Santorum has to choose between siding with George Bush or middle class Pennsylvanians, Santorum supports Bush. What is he thinking?” The group’s mission statement said its purpose was to “shine the light on Rick Santorum’s extreme positions, failed policies and hypocritical statements — and let the facts speak for themselves.”

Though the FEC agrees the ads are critical of Santorum, and arguably at least one of them attacked his character or fitness for office, they did not constitute an expenditure because they neither contain express advocacy nor do they meet a WRTL-type test for the functional equivalent of express advocacy.

If this is going to be the standard for what 527s can do in the next election without running into the danger of being classified as a political committee, I expect the next few elections will see a great growth in this activity. I think this ruling will take a lot of fear away from potential 527 donors in the next election.

For political parties, interest groups and political advertisers this could be considered big news.

Over the past several years, 527’s teeth have been filed down as a result of rulings and legislation that ramped up regulations in what a 527 could or could not say in their communications within the theater of a particular election.  There have also been new regulations on 527 donor reporting, in an attempt to shed light on the funders of these groups, which pared back their ability to get large donations from individuals who desire to have their identity and contribution completely veiled.

Hat Tip: @politicsmag via twitter

Andy Sullivan’s piece about Indy groups in Reuters, titled “Independent spending takes back seat in 2008 race“, misses the point regarding the nature and purpose of independent expenditure groups, which I call “Indys”.

Sullivan’s first point – Indy Groups are on the sidelines this year:

Independent political groups like Swift Boat Veterans for Truth that spent millions of dollars on attack ads in 2004’s presidential race have so far kept a low profile this time around, leaving the stage largely to Republican candidate John McCain and his Democratic rival, Barack Obama.

Analysts say these groups are not likely to play as prominent a role as they did in 2004, when the Swift Boat group questioned Democratic candidate John Kerry’s Vietnam War service with devastating effect and liberal groups like the Media Fund spent $48 million attacking President George W. Bush.

If you look back at the short history of Independent Expenditures campaigns, you’ll see that most ad spending takes place closer to the election – late July and early August usually marks the beginning of such.  So yes, most groups are on the sidelines now.  However, that’s because they are building war chests, planning their buys, writing their scripts and getting ready to produce their spots to air when political advertising is most effective – closest to the actual election.

The Swift Boat Veterans for Truth didn’t actually air their first 60 second spot in 2004 until the first week in August (August 5th to be exact).  Buying airtime this early in the summer, prior to Olympics, only makes sense for organizations with enormous war chests – ie the actual presidential campaigns and the party organizations.  So it’s no surprise Indy groups are on the sidelines now.  This will change soon and they will jump in the game soon. 

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