Editorials: How to shine a light on dark money | Lawrence Norden and Daniel Weiner/MSNBC

The 2016 campaign is just beginning, but we already know that hundreds of millions of secret dollars will be spent over the next 18 months. A few years ago, this tide of “dark money” would have been unimaginable. Today, it represents one of the biggest threats to our democracy. President Obama has spoken out against the rise of dark money, but has done little else to combat it. With a hostile Supreme Court and Congress, many have assumed this is the best he can do – but that’s just not true. In fact, the president has the power to strike a major blow against dark money in our elections now, without congressional approval, and without running afoul of Supreme Court precedent. He can issue an executive order to expose secret political spending by federal contractors. The only question is whether he will follow through.

Editorials: Keep Shining the Light on ‘Dark Money’ | Robert Bauer and Samuel Issacharoff/Politico

The money hunt for the 2016 election cycle is in full swing, and there is no surer sign of it than the first complaints recently filed by reform organizations. While, as in the past, there is intense interest in the likelihood of record-breaking sums and innovative spending strategies, this year, perhaps more than in the past, attention has turned to transparency. “Dark money” is dominating the campaign finance lexicon. Current conversations on this topic have a Groundhog Day quality, and it seems that they are stuck between the dreary and the dreadful. Part of the problem is that nearly 40 years ago, the Supreme Court limited the objective of campaign finance regulation to the prevention of corruption or its appearance, and decades of debate ensued about what is and what is not corruption. And all this in the service of identifying when candidates and political parties come under the “undue influence” of money.

Editorials: Which Companies Are Buying the Election? | New York Times

Midway into a three-and-a-half-hour congressional hearing this week featuring Mary Jo White, the chairwoman of the Securities and Exchange Commission, none of the legislators had bothered to ask if or when her agency would require that corporations disclose their political spending. The bipartisan silence testified to the growing importance to both parties of anonymous campaign donations. With each passing year since 2010, when the Supreme Court’s decision in Citizens United opened the floodgates to secretive political giving, politicians appear to value so-called dark money more and value disclosure of unnamed donors less.

National: Money Chase for 2016 Is Wild, Wild West – Bloomberg View

As a result of the different funding vehicles, some candidates are required to limit donations while others are only prohibited from taking checks from certain categories of givers. A few, including Santorum, have organizations that are not bound by contribution caps or public reporting requirements — their trips to Iowa and New Hampshire may be funded by unregulated, anonymous donations. “Nearly every prospective 2016 presidential candidate is raising and spending funds outside the candidate contribution limits, through super-PACs, leadership PACs and other groups,” said Paul S. Ryan, senior counsel at the Campaign Legal Center and author of the organization’s analysis of the presidential campaign free-for-all. “They’re traveling to Iowa and New Hampshire; they’re hiring campaign staff; one has even opened an office in Iowa. They claim they’re not ‘testing the waters,’ but they look soaking wet to me.”

National: New IRS Rules on Dark Money Likely Won’t Be Ready Before 2016 Election | ProPublica

The Internal Revenue Service says it won’t come out with new proposed rules for so-called dark money groups until late spring at the earliest, increasing the likelihood that no changes will take effect before the 2016 elections. These groups 2014 social welfare nonprofits that can engage in politics, but do not have to disclose their donors 2014 have become a major force in elections, pouring at least $257 million into the 2012 elections. The Wesleyan Media Project estimates that dark money paid for almost half the TV ads aired in the 2014 Senate races. The IRS originally issued a draft version of the rules for dark money groups more than a year ago, but withdrew them for revisions after receiving intense criticism from both ends of the political spectrum.

Editorials: How Dark Money Is Distorting Politics and Undermining Democracy | Bruce Freed & Karl Sandstrom/ Fiscal Times

The Supreme Court’s 2010 Citizens United decision and subsequent court rulings deregulating political spending have greatly increased the influence of corporate special interests. Today, corporations are among the leading underwriters of Washington politics and a dominant force shaping its policy-making. Long gone are the days when unions and government could balance the impact of corporations. At the same time, a large swath of political spending has gone underground. Prior to Citizens United, election spending by companies, unions and individuals was subject to limits and carried out with disclosure of donors. Post-Citizens United, the limits are gone for corporations. Donor secrecy reigns. Corporations can spend to influence elections directly, or indirectly through trade associations or so-called “social welfare” organizations as long as these groups don’t coordinate with a political candidate. The result is significant growth in “dark money” influence.

Editorials: The Rise of Dark Money and the Koch Party | Ron Fournier/National Journal

This week may be remembered as the birth of the Koch Party. A usurper of the GOP and a rival to Democrats, the network of conservative advocacy groups backed by Charles and David Koch pledged Monday to spend $889 million on the 2016 election. Financially, the tax-exempt Koch coalition could be as big as either of the two major parties, spending more than the combined 2004 campaign budgets of President George W. Bush and Democratic challenger John Kerry. Koch operatives will poll, track, and target voters—mirroring the activities of a traditional political party. Except for one thing: dark money. The Democratic and Republican parties are required by law to disclose their donors. Not so for outside groups. While the Koch alliance disclosed some of its contributors last year, most of its money comes from anonymous sources. Secrecy breeds distrust, if not corruption, as voters are left to guess what politicians do to repay their donors.

Editorials: Here’s what I learned when I helped Stephen Colbert set up his Super PAC | Trevor Potter/The Washington Post

It’s been five years since the Supreme Court handed down its Citizens United decision. The ruling gave rise to a complicated mess of super PACs, dark money, and “coordinated non-coordinated expenditures” — a world that likely surprised even the Supreme Court. Viewers of Stephen Colbert’s late lamented “Colbert Report,” however, knew just how tricky this new world had become. In 2011, Colbert formed his own Super PAC. And he reported on the process every step of the way, explaining to viewers how the wacky post-Citizens United world worked (or, perhaps, didn’t work). I was his lawyer for the venture, which meant I did everything from drafting a Federal Election Commission Advisory Opinion Request to accompanying Colbert to hearings. I even figured out how to make the money “disappear” from public view when the PAC was closing. (Hint: It’s not that hard.)

Editorials: The legacy of ‘Citizens United’ strays from the Supreme Court’s vision | The Washington Post

Five years ago, the Supreme Court turned a corner on campaign finance. In Citizens United v. Federal Election Commission , the court held that corporations could undertake unrestricted independent spending in election campaigns, overturning decades of restrictions on corporate money in politics by saying that the money represented free speech . At the same time, the court, in a decision written by Justice Anthony M. Kennedy, emphasized the importance of disclosure of the sources of campaign money. The court declared, “With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable for their positions and supporters.” It also said that disclosure “permits citizens and shareholders to react to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.” And the court expressed enthusiasm that technology today makes disclosure “rapid and informative.”

Editorials: Tycoon dough: The ultimate electoral martial art | Lawrence Norden and Daniel Weiner/Reuters

Jan. 21 marks the fifth anniversary of Citizens United v. Federal Election Commission, the Supreme Court ruling that corporations (and, by extension, unions) have a First Amendment right to spend unlimited money on elections. Few recent U.S. Supreme Court decisions have received as much attention — or generated as much public backlash – as Citizens United v. Federal Election Commission. The court and its defenders promised that the ruling – which gave corporations (and, by extension, unions) a First Amendment right to spend unlimited money on elections — would free up more voices to enrich U.S. political debates. Critics predicted a deluge of corporate cash into U.S. elections. Yet neither has been the most striking result of Citizens United. The most stunning consequence is the influence that a few tycoons and other wealthy donors now wield in U.S. elections. Running a close second is the tidal wave of “dark money” from unknown sources making it impossible for citizens to know who is supporting candidates in pivotal races. Both these unexpected and troubling developments undermine American democracy.

National: New IRS Rules on Dark Money Won’t Be Ready By 2016 | Pacific Standard

The Internal Revenue Service says it won’t come out with new proposed rules for so-called dark money groups until late spring at the earliest, increasing the likelihood that no changes will take effect before the 2016 elections. These groups—social welfare non-profits that can engage in politics, but do not have to disclose their donors—have become a major force in elections, pouring at least $257 million into the 2012 elections. The Wesleyan Media Project estimates that dark money paid for almost half the TV ads aired in the 2014 Senate races. The IRS originally issued a draft version of the rules for dark money groups more than a year ago, but withdrew them for revisions after receiving intense criticism from both ends of the political spectrum. It’s unknown how aggressive the IRS’ new proposal will be in attempting to rein in political activity by social welfare non-profits. Some observers expect the agency to set a hard limit on how much of groups’ spending can be devoted to politics, perhaps 40 percent or less.

National: New IRS Rules on Dark Money Likely Won’t Be Ready Before 2016 Election | ProPublica

The Internal Revenue Service says it won’t come out with new proposed rules for so-called dark money groups until late spring at the earliest, increasing the likelihood that no changes will take effect before the 2016 elections. These groups — social welfare nonprofits that can engage in politics, but do not have to disclose their donors — have become a major force in elections, pouring at least $257 million into the 2012 elections. The Wesleyan Media Project estimates that dark money paid for almost half the TV ads aired in the 2014 Senate races. The IRS originally issued a draft version of the rules for dark money groups more than a year ago, but withdrew them for revisions after receiving intense criticism from both ends of the political spectrum. Some advocates of campaign finance reform have touted tighter IRS controls as the best shot of reining in the influence of such groups ahead of the 2016 presidential race.

Editorials: Arizona election law is broken, but fixing it is easy | The Arizona Republic

Arizona election law lies broken and in disarray after a federal judge’s decision. But it can be fixed easily. U.S. District Judge James Teilborg found that Arizona’s definition of a political committee is “vague, overbroad and consequently unconstitutional in violation of the First Amendment.” With the definition tossed out, the rest of campaign law tumbles. You can’t place reporting requirements, contribution limits or deadlines on committees that no longer legally exist. That creates the potential for an election in which people can contribute as much as they want to candidates and issues, with nothing revealed to voters. That runs counter to a generation of law and policy that holds that transparency protects against corruption.

Arizona: Groups no longer required to disclose money sources to Secretary of State’s Office | Arizona Capitol Times

A federal judge late Friday voided state laws requiring groups to register before spending money on campaigns – and with it, the reports they’re supposed to file on who is behind all that cash. Judge James Teilborg accepted arguments by challengers that the statute dictating who must register is “vague, overbroad, and consequently unconstitutional in violation of the First Amendment.” Teilborg said that means it cannot be enforced.
Deputy Secretary of State Jim Drake said his office will ask Teilborg to delay the effect of the ruling to provide a chance for an appeal. If nothing else, Drake said his office needs time to figure out how badly this undermines years of laws designed to give the public a better idea of who is contributing to political campaigns. But Drake said he’s not optimistic. “It does kind of turn campaign finance on its head,” he said. At the very least, Drake said Teilborg’s order eliminates the requirements for disclosure of funding by groups pushing or opposing ballot measures. It is not unusual for these campaigns to cost millions of dollars. But attorney Paul Avelar of the Institute for Justice said he reads the ruling to apply to all the independent groups pushing to elect or defeat candidates.

Arizona: Registration rule for political groups ruled too vague | Arizona Daily Star

A federal judge has voided state laws requiring groups to register before spending money on campaigns — and with it, the reports they’re supposed to file on who is behind all that cash. Judge James Teilborg accepted arguments by challengers that the statute dictating who must register is “vague, overbroad, and consequently unconstitutional in violation of the First Amendment.” Teilborg said that means it cannot be enforced. Deputy Secretary of State Jim Drake said his office will ask Teilborg to delay the effect of the ruling, made late Friday, to provide a chance for an appeal. If nothing else, Drake said his office needs time to figure out how badly this undermines years of laws designed to give the public a better idea of who is contributing to political campaigns. But Drake said he’s not optimistic. “It does kind of turn campaign finance on its head,” he said.

Editorials: Federal Judge Strikes a Blow Against Dark Money — But Will It Hold? | Daniel I. Weiner/Brennan Center for Justice

On Tuesday, Judge Amy Berman Jackson of the federal district court in Washington, D.C. handed transparency advocates a victory, when she (again) struck down a deeply flawed Federal Election Commission (FEC) rule that has helped to fuel the explosion of “dark money” — political spending from unknown sources — in U.S. elections. Judge Jackson has the law and common sense on her side, but the ultimate impact of her ruling remains to be seen. The rule at issue governs “electioneering communications” (ECs) — broadcast, cable or satellite communications referring to a clearly identified federal candidate during the run-up to an election. Such ads do not explicitly advocate a candidate’s election or defeat, but the vast majority plainly are election-related. Voters deserve to know who is paying for this advocacy, and what they want from the government. Praise for a candidate from your regional chamber of commerce, for instance, merits different scrutiny than praise from a big oil company in another state. Criticism from a local veteran’s group is not the same as criticism from a faraway defense contractor.

Voting Blogs: Texas is Shining the Light on the Dark Money in State Politics | State of Elections

The Lone Star State has decided to shine some of its Texas sun on the dark money used in elections. “Dark money” is a phrase commonly used to describe donations made by undisclosed donors. For the last several years, dark money been a growing concern in federal and state elections. According to the Center for Responsive Politics, spending by political organizations that do not disclose their donors increased from approximately $5.2 million in 2006 to over $300 million in the 2012 election. Some credit this rapid increase in dark money to the United States Supreme Court’s decision in Citizens United v. Federal Election Commission, which held that the federal government could not limit organizations from spending money to influence the outcome of elections. And, in an 8 to 1 decision, the Supreme Court also held that Congress can compel disclosure of that  money spent on influencing elections, stating, “prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable for their positions and supporters.” The Supreme Court’s push for disclosure, however, launched the creation of super PACs and the growing use of disclosure loopholes. Given how quickly dark money has become an influential factor in elections, many states, including Texas, are attempting to address dark money within their borders.

Editorials: Dark Money Helped Win the Senate | New York Times

The next Senate was just elected on the greatest wave of secret, special-interest money ever raised in a congressional election. What are the chances that it will take action to reduce the influence of money in politics? Nil, of course. The next Senate majority leader, Mitch McConnell, has long been the most prominent advocate for unlimited secret campaign spending in Washington, under the phony banner of free speech. His own campaign benefited from $23 million in unlimited spending from independent groups like the National Rifle Association, the National Association of Realtors and the National Federation of Independent Business. The single biggest outside spender on his behalf was a so-called social welfare group calling itself the Kentucky Opportunity Coalition, which spent $7.6 million on attack ads against his opponent, Alison Lundergan Grimes. It ran more ads in Kentucky than any other group, aside from the two campaigns.

National: As Dark Money Floods U.S. Elections, Regulators Turn a Blind Eye | Newsweek

With apologies to the cast of Cabaret, dark money makes the political world go round. Confusing rules and a regulatory void in campaign finance have unleashed a tsunami of cash from anonymous donors that is expected to have unprecedented influence over the midterm elections in November. As a result of the U.S. Supreme Court’s Citizens United v. Federal Election Commission judgment in 2010, individuals—and big corporations—received a carte blanche to make unlimited anonymous financial donations to “nondisclosing” organizations, increasingly nonprofit groups whose primary mission is defined as “social welfare.” There are some guidelines: Such groups, categorized as 501(c)(4), can devote no more than half of their funds to political spending if they want to retain their nondisclosing tax-exempt status. The trouble is, who is holding them to account? Since the Internal Revenue Service got hammered for oversight activities that were at best overzealous, at worst partisan, many of these groups can essentially do whatever they want, unchallenged.

National: Why dark money is likely to keep flowing in campaigns, in 1 Senate hearing | Washington Post

A Senate Rules committee hearing opened Wednesday with a big announcement: This year, Senate Democrats plan to hold a floor vote on a constitutional amendment that would give Congress the power to overturn Citizens United and other controversial Supreme Court campaign finance decisions. The next two hours illustrated why the bill has little chance of success in a divided Congress. The hearing was set to examine the influence of political groups financed by secret donors, but it did more to expose the current chasm between Democrats and Republicans when it comes to regulating money in politics. Those on the left – along with independent Sen. Angus King of Maine, who chaired the session – spent the morning bemoaning the flood of unregulated money into campaigns. “I’m deeply worried about the future of our democracy,” said King, who later held up a chart showing a dizzying web of nonprofits that make up the political network backed by Charles and David Koch and other conservative donors. Those on the right used the session to decry campaign finance restrictions as attempts to curtail free speech. “Let’s stop pretending more speech somehow threatens our democracy,” said Republican Sen. Pat Roberts of Kansas. He had his own chart: a blown-up text of the First Amendment.