Disclosure Requirements Endure After SpeechNow.org Case Decided

In SpeechNow.org v. Federal Election Commission, a federal appeals court unanimously struck down limits on contributions to independent political groups that want to spend money in support or opposition to candidates. The court ruled as unconstitutional the $5,000 annual limit on donations from individuals to groups like SpeechNow.org.

SpeechNow.org challenged the constitutionality of restrictions on independent campaign spending in 2008 after the Federal Election Commission (FEC) said the group would have register as a political committee and follow reporting and funding requirements. The group wanted to run campaign ads in favor of "pro-free speech" candidates.

The court decided that because the opinion in the Citizens United case affirmed that the government has no anti-corruption interest in limiting independent expenditures, there was no reason to limit the donations to the groups that engage in such spending. The FEC argued that the case did not apply because it involved spending limits and not contribution limits.

However, the court ruled that SpeechNow.org still has to register with the FEC as a political committee and comply with the financial reporting requirements, including disclosing its donors. The opinion states that, "the public has an interest in knowing who is speaking about a candidate and who is funding that speech, no matter whether the contributions were made towards administrative expenses or independent expenditures."

The ruling is the first major application of the Citizens United case and broadens its impact. The Washington Post reports that SpeechNow.org group is considering whether to appeal the disclosure requirement ruling to the Supreme Court.

In another campaign finance case decided today (March 26), the Republican National Committee (RNC) lost its challenge to the "soft money" provisions in the Bipartisan Campaign Reform Act (BCRA). The law prohibits political parties from accepting unlimited contributions from individuals, companies and unions.

The court said it does not have the authority to overturn the Supreme Court ruling in McConnell v. FEC, which upheld the ban on soft money fundraising by national party committees. The RNC wanted to raise soft money for state elections, congressional redistricting, and other activities outside of federal elections. The RNC will likely appeal the case to the Supreme Court.

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