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May 16, 2012

Risks of Corruption from "Independent" Expenditures

For more than a generation, courts have agreed that it is right and appropriate to regulate campaign finance when there is a risk of corruption. The Court agrees that large contributions to a candidate will corrupt that candidate or cause voters to fear the candidate has been corrupted, and in this situation, the people's right to honest government trumps contributors' right to give money. But the flip side of that is that where there is no risk of corruption, there is no justification for limiting contributions. The US Supreme Court ruled in 2010 that so-called "independent expenditures" present no risk of corruption because they are "independent" of candidates. This is the legal basis for SuperPACs.

 

What it means to be "independent" of candidates is in the eye of the beholder. The definition in statute is a disclosure rule, indicating which expenditures must be reported to candidates and to the public as in-kind contributions. Statutes have long held that if a group coordinates expenditures with a candidate, that is akin to the candidate spending money from the group's budget, and so the expenditure must be reported to the candidate and listed on the candidate's disclosure forms. If the expenditure was not coordinated with the candidate, it need not be reported to the candidate; the legal term for this is "independent expenditure."

 

Are there transactions between candidates and interest groups that a reasonable person would see as actual or possible corruption, other than where the candidate and interest group actively coordinate expenditures? Since 2010, courts have used a new understanding of "independent" to justify abolishing limits, eviscerating disclosure and fostering actual or perceived corruption. SuperPACs have engaged in a host of activities and behaviors that would call into question the separation between the PAC and the candidate, even as they claim not to coordinate expenditures.

 

 

SuperPACs today are far more tightly entwined with candidates than the plaintiffs in any of the cases that gave rise to them. No SuperPACs existed prior to the Citizens United ruling, and these fact patterns were not available for the Court's consideration. But even casual observers can now see risks of corruption in their activities. ICPR believes that groups that claim to present no risk of corruption should be far removed from candidates. Simply asserting that they do not coordinate expenditures is not enough to prevent actual or perceived corruption.



May 15, 2012

A brief history of SuperPACs

SuperPACs are a creation of recent court rulings that changed the way campaign finance laws work, with wide-ranging consequences. Beginning with Citizens United v FEC, the federal courts have reshaped how federal races are run. And a federal court ruling in March of this year allows SuperPACs to engage in state and local elections as well.

 

Citizens United v Federal Elections Commission was a court case about a non-profit entity (which called itself "Citizens United") that sought to sell a movie about a federal candidate through pay-per-view cable channels. In order to promote the movie, the non-profit wanted to broadcast ads. Because the movie was about a candidate, and the ads were to run in the days and weeks before an election, Citizens United ran up against federal law forbidding corporations to make expenditures about candidates around elections. They asked US Supreme Court to decide whether the organization could advertise its movie.

 

The Court’s opinion, to allow corporate spending in elections, not only overturned a century of federal law forbidding corporations from engaging in elections, it also changed the meaning of terms already in law that have created loopholes in disclosure as well as contribution limits. For example, "Independent expenditures" was a term meaning spending that was uncoordinated with a candidate. The Court declared that it meant there was no risk of corruption from such spending, and therefore no justification for regulation.

 

The Court ruling also gave rise to new forms of corporations that are now raising money from donors with very particular interests in what government does, while also moving the relationships between these donors and candidates outside of the public’s line of sight. There are over 500 "SuperPACs" that claim to be independent of candidates and therefore unregulated in their fundraising. But many of these "SuperPACs" are disturbingly close to individual candidates, in ways that give plenty of justification for corruption fears.

 

This week, ICPR will issue a series of blog posts about Citizens United, SuperPACs, and changes to campaign finance generally. First up, we’ll look at what it means to be “independent” of a candidate. Then, we’ll look at some of the “corporations” that are giving to candidates. Later, we’ll look at the implications for how best to assure the public that elections matter and campaign contributions are not merely a legalized means of bribing public officials.



May 1, 2012

ICPR calls on Cook County Redistricting Committee to provide more information, opportunities for public to participate

ICPR testified before the Cook County Redistricting Committee May 1 to ask Commissioners to increase their efforts to engage the public in the once-in-a-decade redistricting process. While the state legislative and Chicago ward redistricting process have already concluded, Cook County's redistricting process has just begun with the holding of preliminary public hearings. Read ICPR's testimony below, and for more information, visit Cook County's Redistricting Committee website, http://redistricting.cookcountyil.gov.

ICPR testimony to the Cook County Redistricting Committee

Good evening, and thank you to the Commissioners, County staff and residents for attending tonight’s public redistricting hearing.

My name is Whitney Woodward and I’m with the Illinois Campaign for Political Reform. ICPR is a non-partisan, non-profit organization that researches and advocates for transparency and accountability in government. For more than two years, ICPR and coalition partners have sought to increase public awareness about the redistricting process. We have worked to educate the public about the impact of redistricting on government and the historic lack of opportunities for citizens to monitor and participate in it. We also have proposed models to increase public engagement and advocated for substantive change. ICPR has worked with many of the speakers you have already heard from, or will hear from this evening, including the Mexican American Legal Defense and Educational Fund, the United Congress of Community and Religious Organizations, the League of Women Voters, the Asian American Institute and Common Cause Illinois.
 
Given the profound impact that redistricting can have on voter choice and residents’ representation, and the inherent problems that arise in a system that gives the elected officials with a vested interest in the outcome of the map-making process the power to create districts, there clearly exists a need for sunshine and public participation in Cook County’s 2012 redistricting process.
 
We commend the County for taking action to engage the public in this vital process, through the creation of this committee, the holding of this and other preliminary public hearings, offering residents access to a mapping terminal, and creating an informational website.
There are three specific requests we ask of the Redistricting Committee as you begin the next phase of your work:
 
1) Immediately release ranked criteria by which Commissioners will draw the county’s districts and by which maps submitted from voters will be evaluated. While we understand and appreciate that the county must draw districts of roughly equal population and which comply with federal law, including the Voting Rights Act, we do not know what other factors will be considered and how such criteria will be prioritized. ICPR does not believe incumbents’ and candidates’ home addresses should be used in the district-drawing process, because doing so prioritizes political interests at the potential expense of the public’s interest. For the same reason, we ask that the county not use voting history data in the district-drawing process, with the exception of using that information as needed to comply with the federal Voting Rights Act. ICPR also suggests that the county follow the spirit of Illinois Voting Rights Act of 2011, which mandates the creation of coalition, crossover and influence districts whenever possible. Such districts can protect communities and empower voters by keeping such populations whole within districts in cases when they are not large enough to constitute a majority. Doing so enables groups to influence the outcome of elections and engage candidates who will be responsive to them.
 
2) Establish a timetable for the rest of the redistricting process. By holding this and other preliminary public hearings, you have already taken an important first step toward creating a new County map. But what happens next? The Redistricting Committee should make public a schedule by which it plans to carry out this rest of this process, and aggressively distribute this to voters and the news media so as to encourage participation. In the absence of any additional public hearings, and without a target date for completion, it is difficult for the public to monitor your progress and contribute.
 
3) Incorporate suggestions from the public into the final, approved map. It is imperative that before any final vote is taken on a new county map, the public be given sufficient time to evaluate and propose improvements to it. The Redistricting Committee should hold multiple public hearings across the County, scheduled with at least two weeks’ notice, to vet any proposed maps before taking a vote. Demographics and a narrative explaining the intent behind the creation of the proposal – indeed, the same information that you have requested of any public submissions – must accompany this release. ICPR notes that in recent years, the County has made notable efforts to increase transparency in county government, and we expect that desire will be reflected in your once-in-a-decade remapping process.
 
We know that redistricting is a complex and often contentious task. We look forward to working with you in the coming months to ensure the 2012 Cook County Redistricting process is one that is transparent and results in a map that serves voters. Thank you.