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Court ruling may force advocacy groups to disclose secret
donors

By Matea Gold

http://www.latimes.com/news/politics/la-pn-court-ruling-may-force-advocacy-groups-to-disclose-secret-donors-20120515%2c0%2c6306060.story

May 15, 2012, 9:57 a.m.

WASHINGTON -- Advocacy groups spending millions of dollars
in the 2012 campaign are now faced with the prospect of
having to reveal the donors who have been secretly
financing their efforts after a federal appellate court
panel refused to block a lower court order requiring the
move.

In a 2 to 1 decision issued Monday evening, a U.S. Court
of Appeals panel in Washington declined to stay a ruling
by a federal judge requiring organizations that run
election-related television ads to disclose their donors.

The court's decision was a significant victory for
campaign finance reform advocates who have been fighting
against the deluge of secret money that has flooded the
political landscape in the wake of the Supreme Court's
Citizens United ruling in 2010.

Until the appeal of the current case is decided sometime
this fall, any group that runs a type of election-related
ad known as "electioneering communications" will have to
disclose all of its donors since the beginning of 2011.

The stakes are high for trade associations such as the
U.S. Chamber of Commerce and an array of well-financed
conservative nonprofit groups such as Crossroads GPS and
Americans for Prosperity that planned to pump millions of
dollars more into television commercials attacking the
policies of President Obama and congressional Democrats.

Election law lawyers expect most groups will now try to
find alternative methods of communicating rather than
reveal the sources of their funding. But just the
possibility that the curtain will be pulled back to reveal
who has been driving campaign-related ads has buoyed
reform advocates.

"It's the first major breakthrough in overcoming the
massive amounts of secret contributions that are flowing
into federal elections," said Fred Wertheimer, president
of the reform group Democracy 21. "It certainly gives us
momentum."

The case, brought by Democratic Rep. Chris Van Hollen of
Maryland against the Federal Election Commission,
challenged a 2007 FEC regulation that allowed limited
disclosure by groups that engage in electioneering
communications. Those are ads that refer to federal
candidates but stop short of advocating for their election
or defeat and air 30 days before a primary and 60 days
before the general election.

The FEC only required advocacy groups to disclose the
names of donors that gave explicitly to finance a
particular ad. In his suit, Van Hollen argued that
undermined the 2002 McCain-Feingold Act, a sweeping
campaign finance reform law that required groups running
election-related ads to reveal their funding sources,
among other measures.

A federal judge agreed, ruling March 30 that the FEC had
overstepped its authority.

"Congress intended to shine light on whoever was behind
the communications bombarding voters immediately prior to
elections," Judge Amy Berman Jackson wrote in her
decision.

Her ruling threw out the 2007 rule and reinstated a 2003
regulation that mandates that independent organizations
paying for electioneering ads report all donations of
$1,000 or more dating back to the first day of the
preceding year.

The FEC decided not to appeal the decision, but a reversal
is being sought by two advocacy groups who say the ruling
infringes on their 1st Amendment right and will force them
to alter their plans for the 2012 election.

On Monday, a divided appeals court panel denied their
request for a stay of the rule pending their appeal. In a
statement, the two judges in the majority noted that the
Supreme Court endorsed public disclosure in its Citizens
United decision, which allowed direct political spending
by corporations.

"The public interest is best served by access to more, not
less, information," they wrote.

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