Federal, State and Local Nonprofits: Our Regulatory Policy Department is asking for sign-ons for a letter for organizations opposing sunset commissions. As you know, for nonprofits, sunset commissions would make all government programs be forced to plead for their lives on a periodic basis, such as every ten years, before an unelected sunset commission which would recommend whether they live, die, or be “streamlined.” In the proposals that have circulated from the White House and in several bills introduced in the 109th, sunset and government reorganization proposals from these commissions would then be rammed through Congress on a fast-track, take-it-or-leave-it basis — with limited room for debate, and no chance for amendments. Leading proposals would also exempt the sunset commission from the open government and balance requirements of the Federal Advisory Committee Act, thus making it possible for the White House to name industry lobbyists to the sunset commission and then allow them to make these important decisions in secret proceedings. The House is trying to get a vote on the budget resolution by the end of this week, so the bargaining within the caucus is taking place as we speak.

The House is scheduled to take up 527 legislation (H.R. 513) this week to reform organizations created under section 527 of the tax code. The legislation, sponsored by Reps. Christopher Shays and Marty Meehan would place contribution limits on groups that took in millions of dollars in unlimited contributions in the 2004 campaign. There are questions about the terms of the House debate. Rep. Mike Pence has said he wants to offer an amendment that would repeal the aggregate limit on "hard money" contributions to federal candidates and national political parties.

Wednesday, a federal district court judge ruled against the Federal Election Commission (FEC) for not requiring 527 groups to register as political committees, thereby allowing the soft-money groups to avoid spending limitations, because, “the FEC has failed to present a reasoned explanation for its decision that 527 organizations will be more effectively regulated through case-by-case adjudication rather than general rule.” Judge Emmet Sullivan said.

(But WITH grassroots lobby disclosure!) Today, the Senate passed S. 2349, the Legislative Transparency and Accountability Act, by a roll call vote of 90-8 — which did not include amendments introduced by Sen. James Inhofe (R-OK) to add a provision to the Lobby Disclosure Act stating that if a 501 (c) organization engages in lobbying activities with federal funds, an officer of the organization can be imprisoned for not more than 5 years and fined.