[EL] OFA: A Shot Heard 'round the World?

JBoppjr at aol.com JBoppjr at aol.com
Fri Feb 8 06:45:40 PST 2013


Sean is right.  
 
In addition, it is already quite common and clearly legal for Members of  
Congress to work with advocacy groups regarding grass roots lobbying in favor 
of  legislation which the Congressman favors or opposes.
 
It is also not unprecedented for a Presidential campaign to morph into an  
advocacy group -- Pat Robertson's campaign in 1988 became the basis for the  
Christian Coalition.
 
So I see nothing remarkable or illegal about OFA, aside from the remarkable 
 hypocrisy of it all. 
 
But even the hypocrisy of it is not that remarkable.  The campaign  finance 
"reform"  industry works with Members of Congress on their grass  roots 
lobbying and also the groups benefit from the fundraising that  some 
Congressmen do for them. And these groups also provide direct benefits to  various 
Congressmen -- featuring them and praising them in public relations  campaigns 
and paying for their litigation expenses.
 
And of course they accept unlimited corporate contributions of "dark  
money," too, to fund it all.  Jim Bopp
 
 
In a message dated 2/7/2013 1:45:37 P.M. Eastern Standard Time,  
sean at impactpolicymanagement.com writes:

 
I’m  not sure about 501c3 and c4 groups that are used by officeholders to 
keep  family and campaign staff employed, but I do know it’s pretty common 
for  officeholders to sign letters on behalf of a wide variety of c3 and c4 
groups  urging people to donate to them, and there is typically not much of a  
connection between the officeholder and the entity other than they like the 
 group’s work. Some of these groups are fairly ideological – lots of  
Congressman have signed letters on behalf of Heritage over the years, for  
example – while others are not, such as the charity that sent oral surgeons to  
Central America to do cleft lip and cleft palate surgery on children that the 
 Congressman I used to work for signed a letter for (actually, used his  
fundraising list to send it to as well). 
I  only throw this out there because it seems worth recognizing these 
things in a  discussion of officeholders raising funds for c3 and c4 groups.   
 
Sean  Parnell 
President 
Impact  Policy Management, LLC 
6411  Caleb Court 
Alexandria,  VA  22315 
571-289-1374  (c) 
sean at impactpolicymanagement.com
 
 
From:  law-election-bounces at department-lists.uci.edu  
[mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of  Mark Schmitt
Sent: Thursday, February 07, 2013 11:59  AM
To: Paul Ryan; law-election at uci.edu
Subject: Re: [EL]  OFA: A Shot Heard 'round the World?

 
Good points, Paul, and you're right that the idea of  "shutting down" OFA 
is a bit of a straw-man. I think we agree that the issues  around 
office-holder fundraising for OFA or similar organizations are in a  somewhat different 
zone, having to do with activities of elected officials,  than the zone of 
campaign-finance regulation that Steve connects them  to.

I believe, by the way, that a lot of elected officials already have  
501(c)4's and 501(c)3's that they raise money for, and often they use them not  so 
much for issue advocacy as to keep their spouses, family members, and  
campaign staffers employed, and as a platform for fundraising. Rep. Steve  
Buyer's golf charity was, I suspect, the tip of a very big  iceberg.


On 2/7/2013 10:58 AM, Paul Ryan  wrote:

I  appreciate your thoughtful post, Mark.  I think there’s a lot to be  
said for “public official exceptionalism,” not just “electoral  exceptionalism.
”  You note that “there are all sorts of regulations on  the time and 
activity of public officials, as opposed to ordinary citizens,  such as 
revolving-door regulations on later employment, financial disclosure  requirements, 
public meetings laws, etc.”  I would add to your list  important 
restrictions on gifts to public officials, anti-bribery laws,  restrictions on outside 
employment, restrictions on profiting from  information obtained in the 
exercise of official duties, etc..  I  believe that these sorts of restrictions 
on public official involvement in  financial transactions, together with 
election-specific fundraising  restrictions, are vital to a well-functioning 
democracy.  Our campaign  finance fundraising restrictions are supported by 
the governmental interest  in preventing actual and apparent corruption of 
officeholders—the same  governmental interest that supports the rest of the 
money-related ethics  rules/restrictions listed above. 
And  that’s really what I’m talking/writing about when it comes to 
President  Obama and OFA.  You wrote that “as a matter of policy, shutting down  
operations that are intended to organize the public on particular issue  
priorities, but don't intervene in elections, doesn't seem to me like a very  
high priority.  And it's certainly not essential to making other  campaign 
finance reforms work.”  I haven’t advocated “shutting down  operations that are 
intended to organize the public on particular issue  priorities.”  This is 
a straw man.  My concern is with an  officeholder raising big contributions 
for such an operation.   “Operations that are intended to organize the 
public on particular issue  priorities” are free to raise and spend unlimited 
funds and such  organizations have been around a long time doing so.  What’s 
new  here—and troubling to me—is an officeholder’s direct involvement in this 
 activity.  Why must such an organization involve an officeholder when  
doing so raises the threat of corruption?  If donors support the  group’s work, 
won’t they give generously even if doing so won’t result in  access to an 
officeholder? 
As  for your assertion that restricting an officeholder’s fundraising for 
such a  group is “certainly not essential to making other campaign finance 
reforms  work,” I suppose that depends on the goal of the campaign finance  
reforms.  If the goal is for such campaign finance reforms to work in  tandem 
with other officeholder financial activity restrictions like those  listed 
above, in order to prevent actual and apparent corruption, then  limiting 
officeholder fundraising for such a group does seem essential to  me.  You note 
the “challenge is in finding the real borders of the  election.”  Your “
electoral exceptionalism” theory exponentially  increases the importance of 
doing so.  (By contrast, my theory of  “public official exceptionalism” 
requires only that we identify those public  officials whose financial activity 
we deem appropriate to regulate.)   If the President’s operation of OFA isn’
t checked, I have no doubt that  other Members of Congress will soon set up 
their own (c)(4)s for unlimited  fundraising, with sharp lawyers ready to 
defend the activities as “intended  to organize the public on particular issue 
priorities.”  The borders  will be pushed hard.  Existing campaign 
contribution limits will be  severely undermined.  Those who oppose existing 
contribution limits  will take great delight in this development.  The rest of us 
might  reasonably be concerned by the precedent likely to be set by President 
Obama  and OFA. 
Best, 
 
Paul  Seamus Ryan 
Senior  Counsel 
The  Campaign Legal Center 
215  E Street NE 
Washington,  DC 20002 
Ph.  (202) 736-2200 ext. 214 
Mobile  Ph. (202) 262-7315 
Fax  (202) 736-2222 
Website:  _http://www.campaignlegalcenter.org/_ 
(http://www.campaignlegalcenter.org/)  
Blog:  _http://www.clcblog.org/_ (http://www.clcblog.org/)  
To  sign up for the CLC Blog, visit: 
_http://www.campaignlegalcenter.org/index.php?option=com_forme&fid=1&Itemid=63_ 
(http://www.campaignlegalcenter.org/index.php?option=com_forme&fid=1&Itemid=63)  
Follow us on  Twitter @_CampaignLegal_ (http://bit.ly/j8Q1bg)    
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From:  _law-election-bounces at department-lists.uci.edu_ 
(mailto:law-election-bounces at department-lists.uci.edu)   
[_mailto:law-election-bounces at department-lists.uci.edu_ (mailto:law-election-bounces at department-lists.uci.edu) ]  
On Behalf Of Mark Schmitt
Sent: Thursday, February 07, 2013  12:34 AM
To: _law-election at uci.edu_ (mailto:law-election at uci.edu) 
Subject:  Re: [EL] OFA: A Shot Heard 'round the  World?

There's a lot to be said for  "electoral exceptionalism." Money and 
economic inequality influence politics  and policy outcomes in millions of ways, 
but elections are a protected space  in which the potential for corruption is 
much higher (since elections have a  direct, winner-take-all effect on who 
holds power) and in which we  necessarily impose some rules in the interest 
of orderly and balanced  participation. (No campaigning within 75 feet of a 
polling place, for  example, is a restriction on expression but one that we 
generally accept as  common sense and in the interest of an orderly, fair 
election.) Elections  are a structured process, and the rules governing them 
will always be, and  should be, somewhat different from the rules governing 
more freewheeling  debate about policies and ideas. 

The challenge is in finding the  real borders of the election. Sometimes 
ads that say "call your member of  Congress" really mean, "call your member of 
Congress." And sometimes, as we  know, they mean, "vote against that 
tax-raising jerk," and should be  considered a de facto campaign contribution. (In 
the case of gun safety, the  example you used in an earlier piece, Steve, 
"Call your member of Congress"  20 months before the next election, probably 
means exactly that, because  elected officials are unsure where their 
constituents stand right now on  that issue.) Getting that line right can be a 
challenge, but the complexity  and occasional idiosyncratic outcome doesn't 
invalidate the basic  distinction. 

It's not great to have elected officials involved in  raising money to try 
to help them achieve their substantive goals, which may  create a 
relationship of dependency similar to that of campaign  contributions. But it's not 
the same kind of problem, and not as pervasive.  Paul may well be right that 
the Court would accept some regulation of public  officials raising money for 
such organizations  -- there are all sorts  of regulations on the time and 
activity of public officials, as opposed to  ordinary citizens, such as 
revolving-door regulations on later employment,  financial disclosure 
requirements, public meetings laws, etc. But as a  matter of policy, shutting down 
operations that are intended to organize the  public on particular issue 
priorities, but don't intervene in elections,  doesn't seem to me like a very high 
priority. And it's certainly not  essential to making other campaign 
finance reforms work.

Another  interesting dimension of this is the question of when an 
organization is  considered to be aligned with a political party, or pursuing the 
aims of  that party. Twenty years ago, for example, an environmental 
organization  wouldn't have been seen as "aligned" with the Democratic Party; now it 
might  be. The same is true on guns or health reform or any number of issues. 
It  seems difficult to develop a robust legal theory about when an 
organization  is "partisan" when an issue can go from bipartisan to partisan, or 
vice  versa, in days. Organizing to push "the president's agenda" might be  
partisan on some issues, but not on immigration, probably.  




On 2/6/2013 1:04 PM, Doug Hess  wrote:

Not sure I can agree on the "no matter to what ends"  language (by agree, I 
mean thinking through my own views, not what this or  that court has said). 
Surely there is some line, where if the fundraiser  is not taking money for 
their own office or own campaign, they are raising  money for mobilization 
and public organizing that is not candidate  focused. I guess the area in 
between is when they are raising money that  then supports another candidate. 
I.e., three scenarios:  
 

 
1) donor --> official --> official's election  campaign
 
2) donor --> official --> another person's  election campaign
 
3) donor --> official --> organizing the public  on issues 
 

 
The first seems bad, the second I'd be concerned about  as it quickly could 
equal the first, but the third one doesn't strike me  as necessarily 
corrupt or appearing corrupt (although it could need  regulating to keep it 
"clean") . Presumably wealthy donors, in the end,  have plenty of ways of "buying 
off" the fundraiser or organization's  board/staff through other donations 
nowadays.
 
 
 
Doug
 
On Wed, Feb 6, 2013 at 12:01 PM, Paul Ryan <_PRyan at campaignlegalcenter.org_ 
(mailto:PRyan at campaignlegalcenter.org) > wrote: 
 
 
Doug, 
You  wonder, in your email, whether President Obama plans to help raise 
funds  for OFA while in office.  The President “announced the relaunch of  his 
remaining campaign apparatus as a new tax-exempt group called  Organizing 
for Action . . . .”  
(_http://www.politico.com/story/2013/01/obama-campaign-to-relaunch-as-tax-exempt-group-86375.html_ 
(http://www.politico.com/story/2013/01/obama-campaign-to-relaunch-as-tax-exempt-group-86375.html) )   If press 
accounts are accurate, the President and his political team will  be very 
involved in all aspects of running OFA and this presumably  includes 
fundraising for the group. 
My  concern/objection is that an officeholder will be soliciting very large 
 (i.e., unlimited) contributions from unlimited sources (e.g., individuals, 
 corporations, unions, foreign nationals—quite possibly with business  
before the officeholder) and that the law doesn’t even require public  
disclosure of these contributions/sources.   (Though OFA is  apparently planning to 
voluntarily disclose some degree of information  about its donors, other 
officeholders may emulate this strategy without  the voluntary disclosure.) 
As  I explained in my email to the listserv yesterday, the Supreme Court 
has  recognized, in upholding limits on candidate/officeholder fundraising and 
 related disclosure requirements, that unlimited officeholder fundraising  
gives rise to “corruption or the appearance of corruption” “regardless of  
the ends to which those funds are ultimately put.”  I agree with the  Court 
on this point.  In my view, officeholder fundraising for a  501(c)(4) 
dedicated to promoting that officeholder’s political agenda  gives rise to 
precisely the same threat of corruption as officeholder  fundraising for his/her 
reelection campaign.  The threat of  corruption exists “regardless of the ends 
to which those funds are  ultimately put.” 
Best, 
Paul  Seamus Ryan 
Senior  Counsel 
The  Campaign Legal Center 
215  E Street NE 
Washington,  DC 20002 
Ph.  _(202) 736-2200  ext. 214_ (tel:(202)%20736-2200%20ext.%20214)  
Mobile  Ph. _(202) 262-7315_ (tel:(202)%20262-7315)  
Fax  _(202) 736-2222_ (tel:(202)%20736-2222)  
Website:  _http://www.campaignlegalcenter.org/_ 
(http://www.campaignlegalcenter.org/)  
Blog:  _http://www.clcblog.org/_ (http://www.clcblog.org/)  
To  sign up for the CLC Blog, visit: 
_http://www.campaignlegalcenter.org/index.php?option=com_forme&fid=1&Itemid=63_ 
(http://www.campaignlegalcenter.org/index.php?option=com_forme&fid=1&Itemid=63)  
Follow us on  Twitter @_CampaignLegal_ (http://bit.ly/j8Q1bg)    
Become a  _fan on Facebook_ (http://on.fb.me/jroDv2)  
From: _law-election-bounces at department-lists.uci.edu_ 
(mailto:law-election-bounces at department-lists.uci.edu)  
[mailto:_law-election-bounces at department-lists.uci.edu_ (mailto:law-election-bounces at department-lists.uci.edu) ] On  
Behalf Of Doug Hess
Sent: Wednesday, February 06, 2013 10:54  AM
To: _law-election at department-lists.uci.edu_ 
(mailto:law-election at department-lists.uci.edu) 
Subject:  [EL] OFA: A Shot Heard 'round the World? 
 
 
 

 
I don't understand the objection to an organization (the  new OFA) that 
promotes mobilization around community and national issues  receiving 
donations. If the members don't like who funds the group, they  won't fund it (i.e., 
donate or join it) either. 
 

 
I guess for appearances, Obama's involvement raises  questions, but there 
are ways to limit that involvement in reality and in  appearance. It will be 
interesting to see if he plans to help raise funds  for it while in office. 
If it endorses, then things are trickier, I guess.  But a 501(c)4 
organization (I think that is what it is) can only inform  members of its endorsement, 
right? And it would be odd for a sitting  president to endorse many people 
in a primary fight in a systematic way  (FDR learned that) and even odder 
that he would endorse members of the  opposite party. So, what is the concern? 
That people may organize and a  president encourage it?
 

On another topic: It is interesting to note that an  extra-party 
organization is needed to do more creative political  organizing in American politics. 
 

 
-Doug 












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