Rick writes,

As I told the NY Times, there's no proof that the Chamber has taken a penny of foreign money.

The Chamber themselves admit to taking foreign money. They’ve admitted to taking dues from their foreign affiliates and dues from a “relative handful” of members who are foreign corporations. They have not answered questions about whether they’ve taken direct contributions from foreign corporations, repeating consistently that a) we ought to trust them and their internal controls, and b) they aren’t answering any more questions.

DD

On 10/10/10 2:18 PM, "Smith, Brad" <BSmith@law.capital.edu> wrote:

"It Appears They've Even Taken Secret Foreign Money to Influence Our Elections"
That's the unsubstantiated charge in a new DNC ad <https://webmail.capital.edu/exchweb/bin/redir.asp?URL=http://www.mediaite.com/online/new-dnc-ad-accuses-karl-rove-and-ed-gillespie-of-stealing-our-democracy/> , "Stealing Democracy," against the Republicans and the Chamber.

As I told <https://webmail.capital.edu/exchweb/bin/redir.asp?URL=http://www.nytimes.com/2010/10/09/us/politics/09donate.html?_r=1%26partner=rss%26emc=rss>  the NY Times, there's no proof that the Chamber has taken a penny of foreign money. But there's no way for us to know whether the Chamber, or anyone else engaged in election-related activity, is improperly using foreign money, unless we allow the FEC or another government agency the ability to audit the records of the political activities of such agencies. (These audits would not be made public unless there was proof of wrongdoing, and groups facing harassment should be exempt from the requirement).

**One other quick point on this: What Rick describes has been the case ever since foreign money was first prohibited (with arguably a de jure, but probably not de facto, exception for 3 years in the latter 1970s).  It is also the case as to many other provisions of the FECA, most state campaign finance laws, and indeed many other general laws.  For years there has been no way to know if independent spenders were using illegal union money, illegal corporate money, illegal foreign money, or simply underreporting their expenditures.  As Rick points out, the logic of the complaint against the Chamber applies to anyone (and everyone) else, too.  Right now there is no way for us to know if my university is not illegally pouring undisclosed sums into some of Ohio's close political races, without allowing the FEC or another government agency to audit its political activities.  To some, this will be evidence of the need for disclosure.  For others, this will be evidence that the alleged problem is vastly overblown.   

 
Bradley A. Smith
Josiah H. Blackmore II/Shirley M. Nault Designated Professor of Law
Capital University Law School
303 E. Broad St.
Columbus, OH 43215
(614) 236-6317
http://www.law.capital.edu/Faculty/Bios/bsmith.asp

---

From: election-law-bounces@mailman.lls.edu on behalf of Rick Hasen
Sent: Sun 10/10/2010 1:09 PM
To: Election Law
Subject: [EL] Electionlawblog news and commentary 10/10/10

October 10, 2010
Final Version of My California Law Review Book Review of Heather Gerken's Democracy Index <http://press.princeton.edu/titles/8865.html>  Now Available
You can find Election Administration Reform and the New Institutionalism <http://www.californialawreview.org/assets/pdfs/98-3/Hasen.FINAL.pdf>  at 98 California Law Review 1075 (2010).
Posted by Rick Hasen at 10:08 AM <http://electionlawblog.org/archives/017305.html>  
"Report: Dems planted NJ tea party House candidate"
AP offers this report <http://www.washingtonpost.com/wp-dyn/content/article/2010/10/09/AR2010100903311.html> .
Posted by Rick Hasen at 10:03 AM <http://electionlawblog.org/archives/017304.html>  
"It Appears They've Even Taken Secret Foreign Money to Influence Our Elections"
That's the unsubstantiated charge in a new DNC ad <http://www.mediaite.com/online/new-dnc-ad-accuses-karl-rove-and-ed-gillespie-of-stealing-our-democracy/> , "Stealing Democracy," against the Republicans and the Chamber.

As I told <http://www.nytimes.com/2010/10/09/us/politics/09donate.html?_r=1&partner=rss&emc=rss>  the NY Times, there's no proof that the Chamber has taken a penny of foreign money. But there's no way for us to know whether the Chamber, or anyone else engaged in election-related activity, is improperly using foreign money, unless we allow the FEC or another government agency the ability to audit the records of the political activities of such agencies. (These audits would not be made public unless there was proof of wrongdoing, and groups facing harassment should be exempt from the requirement).

I'll have more to say on the foreign money issue tomorrow in Slate.
Posted by Rick Hasen at 10:00 AM <http://electionlawblog.org/archives/017303.html>  
Linda Greenhouse on Justice Breyer and Statutory Interpretation
Here <http://opinionator.blogs.nytimes.com/2010/10/07/making-congress-all-it-can-be/> .
Posted by Rick Hasen at 09:51 AM <http://electionlawblog.org/archives/017302.html>  

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William H. Hannon Distinguished Professor of Law
Loyola Law School
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