New Rules for 527s in the Works?

According to BNA Money and Politics ($$), contributors to 527 groups active in the 2004 presidential campaign have been subpoenaed by the Federal Election Commission (FEC) to provide evidence in the SpeechNow.org case challenging FEC restrictions on independent political groups. Reportedly, "the involvement of donors in investigations of the groups' activities was seen as a factor in curbing some donations to similar groups active in subsequent campaigns, including this year's presidential race." "The FEC wants information from donors to bolster its rules for groups that seek to influence federal elections. Such organizations can be designated 'political committees' by the agency and can be subject to FEC rules including an annual $5,000 limit on contributions received from each contributor." According to the BNA article several large donors have agreed to provide documents about how they were solicited for contributions as long the documents remain confidential. Last July SpeechNow.org was denied a preliminary injunction, and subsequently, their lawyers requested to have the case decided on its merits. "Under an unusual provision in campaign finance law, Judge Robertson is expected to make factual findings, then pass the case on to the U.S. Court of Appeals for the District of Columbia Circuit for a decision on the constitutional issues involved."
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