Category Archives: campaign finance

“RFK Jr. uses major cash infusion from his running mate to fund ballot access efforts”

Politico. RFK, Jr.’s campaign currently depends on money from his VP, Nicole Shanahan. In April, she contributed $ 8 million. Independent presidential candidate + wealthy donor as VP is a well-established pattern to avoid campaign contribution limits. In 1980, David Koch ran as the VP for the Libertarian Party for the same purpose. More interestingly, the article notes:

“Kennedy’s campaign received $843,000 from unitemized donors — those giving less than $200 — in April, down from $1.3 million from such donors in March. It was the lowest unitemized donor total for him for any month this calendar year.

Small donor money may not be necessary to fund Kennedy’s campaign if Shanahan keeps cutting big checks. But funds from donors giving only a little are also one gauge of grassroots support.”

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New Index for California Campaign Finance Reformers

California Common Cause has released a first-of-its-kind index and report on campaign finance laws in all California cities. The report, Local Dollars and Local Democracy, is an analysis of all campaign finance reforms in California cities, as of December 2022.

Key statewide findings include:

  • 97% of all California cities now have contribution limits, thanks to AB 571 (Mullin – 2019), compared to just 22% of California cities in 2016.
  • 482 California cities (and other local jurisdictions) now have pay-to-play prohibitions that require governing-body members who accept large campaign contributions from interested parties to recuse themselves, compared to just 35 cities before the passage of SB 1439 (Glazer – 2022).

But the report’s main emphasis is on identifying those cities that go beyond these state-wide norms, and it is set up so that local jurisdictions can the Municipal Campaign Finance Index (MCFI) to see what types of reforms other cities have implemented and determine which are desirable for their jurisdictions.

The report and interactive spreadsheets of the index can be downloaded HERE. The findings in the report are a product of the data collected in the California Municipal Campaign Finance Index (MCFI), which is an organized accounting of campaign finance laws codified in the charters and/or municipal codes of all California cities.

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CNN [UPDATE: and ABC] will host presidential debate with Biden, Trump, but some questions about its criteria

Last November, I blogged some questions about the future of the Commission of Presidential Debates. And my instincts were right. We learned today that the Biden and Trump campaigns have privately back-channeled with one another about an alternative debate format. More at the New York Times. There are lots of political reasons for each campaign to do this–both have grievances with the CPD and apparently have the leverage to jettison it (aging candidates looking to have greater control over timing and conditions)–and have agreed to a debate hosted by CNN on terms they prefer.

To get around campaign finance restrictions, CNN has listed “pre-established objective” criteria to participate in the debate. And here’s where things get complicated.

Continue reading CNN [UPDATE: and ABC] will host presidential debate with Biden, Trump, but some questions about its criteria
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“Charting the Indicted Crimes in Trump’s New York Criminal Trial”

A must-read from Guha Krishnamurthi (University of Maryland, Carey School of Law). Download it while it is hot, as Larry Solum might say.

In April 2023, Manhattan District Attorney Alvin L. Bragg, Jr. announced that his office was bringing a 34-count indictment against former President Donald J. Trump “for falsifying New York business records in order to conceal damaging information and unlawful activity from American voters before and after the 2016 election.” Those charges were brought under New York State Penal Law § 175.10, which requires the prosecution to show that an individual falsified business records with the intent to commit another “predicate” crime.
The prosecution has thus far stated that Trump falsified business records with the intent to commit election and tax crimes, referencing the Federal Election Campaign Act; N.Y. Election Law § 17-152; and Tax Law §§ 1801(a)(3), 1802. Some commentators have expressed doubt that there is any predicate crime to ground Trump’s guilt under Section 175.10.

In this short piece, I attempt to identify crimes in the Federal Election Campaign Act that can serve as predicate crimes for the prosecution of Trump under Section 175.10. I then chart the elements of Section 175.10, with those predicate crimes under the Federal Election Campaign Act.

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“Top RNC lawyer resigns after rift grows with Trump”

WaPo on the campaign losing the adult in the room:

The top lawyer at the Republican Party is resigning after he cited conflicts with his other work obligations and after Donald Trump grew angry about his criticism of the former president’s false claims that the 2020 election was stolen, people familiar with the situation said Saturday night.

The lawyer, Charlie Spies, is a long-respected GOP election operative who was hired by Trump’s top lieutenants in March after the former president engineered a takeover of the Republican National Committee, which in recent years has been the party’s main operation in both fundraising and field operations.

Trump had approved of the hiring but later learned about additional comments the lawyer had made. Spies in the past had worked for, either directly or indirectly, former Florida governor Jeb Bush (R), Sen. Mitt Romney (R-Utah) and Florida Gov. Ron DeSantis (R). He was liked by Trump’s top advisers, who orchestrated his hiring even though they knew he was skeptical of Trump’s false claims of a stolen election….

Spies had been tasked with leading the party’s vast legal spending and election integrity program, and his hire was viewed as a sign Trump’s RNC could attract significant party talent.

Trump aides had worked to save Spies from being ousted after learning Trump was angry about his previous comments. They’re trying to convince Trump that Spies was a stronger election lawyer than others and to forgive the comments, said people familiar with the matter, who spoke on the condition of anonymity to describe private conversations. He was viewed as close with LaCivita and Susie Wiles, Trump’s two top aides….

Spies has also repeatedly defended the presidential election system as being nearly impossible to rig, citing the broad distribution of authority in managing elections. During a 2021 appearance at the Conservative Political Action Conference, he said correctly that allegations of widespread voting machine error in Michigan were false and that repeated recounts in Georgia had failed to show any voter fraud in the 2020 race there.

“Let’s win the elections, and not get worried about things that aren’t true,” he said at that event.

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Trump May Have Some Good Arguments on Appeal in the Hush Money Case If Convicted, But Steven Calabresi is Likely Very Wrong That Donald Trump Would Have a Good First Amendment Defense

I’ve been critical of the NY district attorney seeking to turn the Trump falsifying business records charges into felony charges in the hush money case now on trial in NY. To turn the misdemeanors into felonies, Trump had to be falsifying the business records to further or conceal “other crime.” The three potential baskets of other crimes are (1) violations of the federal campaign finance law (paying campaign expenses with corporate funds, making it an impermissible corporate campaign contribution, failing to disclose the payments, and lying about the payments as legal expenses); (2) violations of a state election law against influencing an election by unlawful means; and (3) violations of state tax law.

Among other things I noted:

Trump also may have serious grounds for appeal in the New York case. It is far from clear that appellate courts would treat the hush money payments as legitimate campaign expenses that needed to be reported, as opposed to personal expenses. And it is uncertain that failing to report a campaign expenditure required by federal law can be a violation of New York state election law against promoting “the election of any person to a public office by unlawful means.” These issues may well have to be sorted out by higher courts.

The trial court rejected these arguments in an order before trial, but I expect they will be back on appeal. I also am uncertain if the trial court will require proof to commit or conceal the other crime beyond a reasonable doubt, which seems like it should be required. And I’ve written about my concern about the apparently novel use of the state election law to go after Trump. If the only unlawful means is a federal campaign finance violation, it’s not clear how that could could as “unlawful means” under state law. The state court inexplicably called this a law against “voter fraud and ballot theft” which don’t seem implicated in this case.

So those arguments have a chance on appeal. Aside from those, Steven Calabresi argues that Trump has a First Amendment right to make hush money payments without disclosure, adding: “All that Donald Trump has to do to get any verdict against him overturned is to insist that the predicate felony, which NY alleges he was concealing is not a crime under the Constitution because the First Amendment trumps campaign finance law (pun intended). To the extent that Buckley v. Valeo sustains any such campaign finance violation, Trump should ask the U.S. Supreme Court on his ultimate appeal to overrule Buckley v. Valeo.”

Let’s put aside the state tax law (and maybe the state election law) and focus on the FECA violation. Trump under the FECA theory could have been charged with causing illegal corporate contributions to the campaign and with violating federal campaign finance disclosure laws. For Calabresi to be right, there would have to be a First Amendment right of candidates not to disclose their campaign expenses truthfully. I don’t think even most opponents of disclosure of contributions would find a First Amendment right of candidates to spend money in campaigns without disclosing them. Such payments help deter corruption, inform voters, and help enforce other campaign finance laws. And the Supreme Court in the 2004 case of FEC v. Beaumont has upheld the ban going back to 1910 on direct corporate contributions to candidates. Without such a ban, someone could simply evade individual contribution limits by creating an unlimited number of corporations. The Supreme Court has repeatedly refused to reconsider the Beaumont case even though other aspects of its reasoning have been undermined by subsequent rulings.

In short, Donald Trump may have some potent argument if he’s convicted and loses on appeal, but the First Amendment is not likely one of them.

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“Trump-nominated FEC leader: let political donors hide their identities”

Raw Story:

A Donald Trump-nominated Federal Election Commission leader wants to make it easier for political donors to hide their identities — a major impediment to post-Watergate interpretations of political transparency that allow anyone to see where politicians are getting their money.

The proposed directive, titled “Requests to Withhold, Redact, or Modify Identifying Information,” was submitted today by Commissioner Allen J. Dickerson for possible consideration at the commission’s public May 16 meeting. Raw Story obtained a copy.

Dickerson’s memorandum says that the Federal Election Campaign Act’s disclosure requirements “are not absolute” and subject to exceptions.

“Where a person or group can show ‘a reasonable probability’ that compelled disclosure ‘will subject them to threats, harassment, or reprisals from either Government officials or private parties,’ they must be excused from disclosing the information that will put them at risk,“ Dickerson’s memorandum says.

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Top New York Election Lawyers Cannot Recall Anyone Ever Prosecuted for the NY Election Law Being Used to Try to Turn Trump’s Hush Money Payments into a Felony

Business Insider confirms what I suspected:

Now, Manhattan prosecutors now say an old, rarely used section of the state election law is their favorite on the menu of potential underlying crimes.

“As the court is aware, falsifying business records in the first degree requires an intent to commit or conceal another crime,” prosecutor Joshua Steinglass told New York State Supreme Court Justice Juan Merchan on Tuesday.

“The primary crime that we have alleged is New York state election law section 17-152,” Steinglass told the judge, lifting into prominence an arcane measure that had previously played only a supporting role in the case.

“There is conspiracy language in the statute,” the prosecutor said, “The entire case is predicated on the idea that there was a conspiracy to influence the election in 2016.”

Business Insider asked two veteran New York election-law attorneys — one a Republican, the other a Democrat — about the law, also known as “Conspiracy to promote or prevent election.”

Neither one could recall a single time when it had been prosecuted.

“I’ve never heard of it actually being used, and I’ve practiced election law for 53 years,” Brooklyn attorney and former Democratic NY state Sen. Martin Connor said of section 17-152.

“I would be shocked — really shocked — if you could find anybody who can give you an example where this section was prosecuted,” agreed Joseph T. Burns, attorney for the Erie County Republican Committee in Buffalo, New York…

Falsifying business records requires proof of at least an attempt to commit an underlying crime to be a felony.

But what if that underlying crime is section 17-152 — conspiring to mess with an election through “unlawful means?”

Things will get “twisty,” Connor said, when prosecutors try to show that Trump’s falsified business records are felonies because of an underlying crime — 17-152 — that itself needs proof of a conspiracy to do something “unlawful.”

“You’re having an underlying crime within an underlying crime to get to that felony,” Connor told BI….

Proof of an intent to violate any of these three laws would be sufficient to satisfy Section 17-152. And once you prove 17-152, you have the underlying crime you need to raise misdemeanor falsifying business records to a felony.

It’s important to remember that Trump is only charged with 34 counts of this one crime: felony falsification of business records, said election-law scholar Jerry H. Goldfeder.

Trump is not charged with actually committing any of the underlying state and federal laws required to prove felony falsification.

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So prosecutors have no legal obligation to prove he’s guilty of any of these underlying laws, 17-152 included, said Goldfeder, senior counsel at Cozen O’Connor and author of Goldfeder’s Modern Election Law.

“They only have to prove he intended to commit these underlying crimes,” which is a far lower bar, said Goldfeder, who also directs the Fordham Law School Voting Rights and Democracy Project.

“I think it’s a very viable case,” he told BI.

“And the testimony so far demonstrates that Trump intended to pursue this catch-and-kill scheme and to falsify business records to cover it up — and did so to influence the election,” he said.

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“Scoop: DNC covered Biden legal bills in special counsel probe”

Axios:

President Biden used campaign donations to help pay his legal bills last year during the special counsel’s probe into his handling of classified documents, according to two people familiar with the matter and an Axios review of campaign finance records.

Why it matters: The payments, made through the Democratic National Committee, are at odds with the Biden campaign’s recent attacks on Donald Trump for spending his campaign funds on legal fees.

Driving the news: The DNC — which has been collecting the biggest donations to Biden’s re-election effort — paid more than $1.5 million to lawyers or firms representing Biden during the probe, according to the committee’s financial filings….

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“Super PACs keep testing the limits of campaign finance law”

Politico:

Super PACs keep pushing the boundaries of campaign finance law this cycle.

They’re using novel financial arrangements, like taking “bridge funding” in the form of undisclosed de facto loans from major donors or receiving ad revenue from a candidate’s podcast. They’re also continuing to take advantage of long standing loopholes in anti-coordination guidelines.

The willingness to push the boundaries suggests that U.S. politics has entered the Wild West campaign financing system that many observers predicted would come in the wake of the court’s weakening campaign finance laws.

It comes as super PACs are taking a more prominent role in campaigning. Total spending on independent expenditures so far this cycle is nearly 2.5 times what it was at this point in 2020. And because candidates are having more and more trouble with small-dollar fundraising, super PAC money could be even more important as the cycle continues.

“As long as super PACs remain relatively under regulated in the way that they have been, the consultants who work for them and for various campaigns are going to continue trying to push the envelope using them in creative ways,” said Saurav Ghosh, director for federal campaign finance reform at the nonprofit Campaign Legal Center. “Because there seems to be very little risk in pushing against the supposed legal limits.”

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