FEC to Consider Advisory on Political Committee Status

On July 28 the Federal Election Commission (FEC) will consider a draft advisory opinion in response to a request from a consulting company called The Black Rock Group (BRG). In June Politico reported that "two Republican strategists are seeking to broaden a recent FEC decision to pave the way for wealthy political players, acting as individual corporations to coordinate with no restrictions their own advertising and direct mail attacks on candidates." At their last meeting on July 16 the FEC commissioners did not have enough votes to approve either of two draft advisory opinions. Commissioners were split on the issue of whether multiple funders of a single advertising effort conducted by BRG would prompt political committee status. BRG would collect unlimited funds to sponsor political advertising, including messages that support or oppose federal candidates.

What if several wealthy people, each acting as an individual corporation, decided to hire the same consultant and shared information with one another about the ads they planned to run, which candidates they wanted to attack or help and when? Would that make them a political committee? "BRG intends to approach multiple individuals and suggest that each individual establish a limited liability company ... for the sole purpose of sponsoring independent expenditures that expressly advocate the election or defeat of one or more federal candidates," their request states. The same BRG personnel will service all of the LLC clients, and BRG will not establish any firewalls that will prevent BRG staff working for each LLC from discussing the private plans, strategies, activities and needs with the personnel working for other LLCs," it continues.

The latest draft advisory opinion to be considered would allow the firm to facilitate ads with unlimited funds from a single source. However, it states that the "commission could not approve a complete response by the required four affirmative votes regarding" when political committee regulations might be triggered.

Update: At the July 28 meeting, the commissioners did not take a final vote and continued to disagree about what triggers political committee status. They may still approve an opinion in the future on some issues involved in this case.

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