[EL] query on 501c4 IEs and the FEC PAC rules

[Steve Hoersting]

Respectfully, it seems the following statement puts the *penalizing
cart*before the
*investigative* *horse*:

and lawsuits against the FEC if it does not *take action against* such
groups *for violating the PAC rules.*

Best,

Steve


On Fri, Mar 16, 2012 at 6:38 PM, Rick Hasen <rhasen at law.uci.edu> wrote:

> It seems to me that there will likely be excesses in this election by
> c4s which are acting as shadow super PACs, which will lead to
> complaints, potential investigations, and lawsuits against the FEC if it
> does not take action against such groups for violating the PAC rules.
>
> Thanks to both of you and to others who weighed in on this issue in
> private messages.
>
>
> On 3/16/12 3:34 PM, Trevor Potter wrote:
> > Presumably John's comments that c4s claim " validly" that they do not
> have as their "major purpose" the influencing of federal elections do not
> apply universally to all entities that chose to claim c4 status. Rather,
> that is a factual question to be answered by each entity that expends more
> than a significant portion of their resources on federal election activity.
> > Trevor Potter
> >
> > Sent from my iPad
> >
> > On Mar 16, 2012, at 6:25 PM, "John Pomeranz"<jpomeranz at harmoncurran.com>
>  wrote:
> >
> >> Correct.  501(c)(4)s argue (validly, I think) that their "major
> purpose" is not efforts to influence federal elections.  Significant
> support for that argument comes from the tax law's requirements for
> 501(c)(4) status.  To qualify for its exemption from federal income tax, a
> 501(c)(4) must have a primary "social welfare" purpose, which does not
> include efforts to intervene in any political campaign.
> >>
> >> There was some interesting debate on these issues, including the
> intersection of FECA's (or, really, the Supreme Court's) "major purpose"
> and the tax law's "primary purpose," during the FEC's efforts to craft a
> political committee rule in 2004.   Yet what constitutes major purpose and
> primary purpose remain, as you know, a hot topic of debate.
> >>
> >>
> >> John Pomeranz
> >> Harmon, Curran, Spielberg&  Eisenberg, LLP
> >> 1726 M Street, NW, Suite 600
> >> Washington, DC  20036
> >> office: 202.328.3500
> >> mobile: 703.597.7663
> >> fax: 202.328.6918
> >> e: jpomeranz at harmoncurran.com
> >>
> >>
> >>
> >> -----Original Message-----
> >> From: law-election-bounces at department-lists.uci.edu [mailto:
> law-election-bounces at department-lists.uci.edu] On Behalf Of Rick Hasen
> >> Sent: Friday, March 16, 2012 6:07 PM
> >> To: law-election at uci.edu
> >> Subject: [EL] query on 501c4 IEs and the FEC PAC rules
> >>
> >> I understand that in this election cycle and the last (since CU) 501c4
> organizations (which did not qualify as MCFL/QNC corporations) have been
> running not just electioneering communications ads, but also making
> independent expenditures (including express advocacy).
> >> How do 501c4s which are making IEs argue that they need not register
> with the FEC as a political action committee?  Are they arguing that
> electioneering is not their major purpose (along the lines of how they
> argue to the IRS that election related activity is not the "primary
> activity" for tax purposes)?
> >>
> >> Thanks.
> >> Rick
> >> --
> >> Rick Hasen
> >> Chancellor's Professor of Law and Political Science UC Irvine School of
> Law
> >> 401 E. Peltason Dr., Suite 1000
> >> Irvine, CA 92697-8000
> >> 949.824.3072 - office
> >> 949.824.0495 - fax
> >> rhasen at law.uci.edu
> >> http://law.uci.edu/faculty/page1_r_hasen.html
> >> http://electionlawblog.org
> >> _______________________________________________
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> >>
>
> --
> Rick Hasen
> Chancellor's Professor of Law and Political Science
> UC Irvine School of Law
> 401 E. Peltason Dr., Suite 1000
> Irvine, CA 92697-8000
> 949.824.3072 - office
> 949.824.0495 - fax
> rhasen at law.uci.edu
> http://law.uci.edu/faculty/page1_r_hasen.html
> http://electionlawblog.org
> _______________________________________________
> Law-election mailing list
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>



-- 
Stephen M. Hoersting
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