Bloomberg BNA:

The Federal Election Commission has dismissed—on a deadlocked party-line vote—charges that Manwin International, a foreign company producing online pornography, violated the law by bankrolling a campaign committee opposed to a Los Angeles ballot measure requiring the use of condoms in video sex scenes.

According to documents released April 23, the FEC’s three Republican commissioners voted to dismiss the case, supporting recommendations from the agency general counsel’s office.

An FEC counsel’s report concluded that a broad federal ban on foreign contributions in U.S. elections didn’t apply to ballot measure elections.

The three FEC commissioners holding Democratic seats on the FEC voted to pursue enforcement action in the case.