The Republican Party of Riverside County

Riverside County's Majority Party

Supreme Court Weighs in for Free Speech‏

CRP Treasurer Keith Carlson in the Flashreport

Last week, in the case Citizens United v. F.E.C., the U.S. Supreme Court struck down a long-standing ban on corporate money for independent expenditures in federal elections.  The decision reverses a recent trend away from freedom of speech in the political arena.  And it may foreshadow a serious rolling back of the draconian restrictions ushered in by McCain-Feingold.  In fact, in what was one of the happier statements for those that believe in the First Amendment, Senator McCain, when asked if further campaign “reform” initiatives were “dead” responded:  “I think so.”

May they rest in peace.  They are not reform.  And they have no place in American politics.  Instead, they are simply a way to allow the ‘haves’ to have more speech, and to remove the ‘have not’s’ from the process-while making the self-righteous ‘good government’ types feel good about themselves.

Now, you might think a corporate-money exclusion would benefit the ‘have not’s', but you’d be wrong.  Just about every campaign-finance law, and resulting maze of regulations, creates more and more hurdles to the public participating in the political process.

The more these laws and regulations flow down (the) Hill-like other substances-the more those below need to look out.  The insiders, however, do not.  If you think about it, you will notice that despite all the complex laws, regulations, and court rulings in this area unions and large corporations seem to keep right on participating in politics.  And that is O.K.

What is not O.K. is that the burden of ‘reform’ falls on those that cannot afford their own legal-compliance team, full-time political accountant, C.F.O., executive director, lobbyist, and P.A.C.  So, those that would simply like their voice to be heard are relegated to trying to run the gauntlet of campaign-finance law on their own (which, by design, is not possible), or risk severe penalties.

Those penalties dissuade people, and companies, from participating in the political process.  The net effect is that the big, rich, or powerful entities get (comparatively) even more ability to spend dollars-through the loopholes that their lobbyists inevitably make sure exist-to influence elections.  With less competition from other donors, the well-heeled contributors’ money is more concentrated and more coveted.

This turns the ‘reform’ attempts on their head.  While they are supposedly designed to reduce the influence of the ‘big and powerful’, they actually do the exact opposite.  If small corporations and individuals could, without fear of federal prosecution, let their voices be heard too, political leaders could be less financially dependent on-and thus less beholden to-the privileged few that have enough money for the compliance teams to ‘make it all legal.’

Fortunately, the Supreme Court took a step in the direction of letting the little guy play too.  It reduces the hurdles on political participation for everyone in two ways.  First, because most Americans own stock, most Americans have a stake in what our laws do to corporations and their profits.  And, contrary to the demagogues, most Americans benefit (whether directly or through their retirement accounts) when corporations prosper.  Therefore, they have an interest in the corporations they own letting their views be heard.

The second way is that all corporations can now contribute.  As noted, the big corporations long ago figured out a thousand ways to make political contributions to influence the outcome of elections.  But most American corporations are small, and not the sorts of companies that get labeled “Big [oil/pharma/auto/etc.]“  These are simply the ‘little guys’ who incorporated to start a business.  They are owned by entrepreneurs, and they are the main driver of our economy-yet by federal law they have been silenced.  They too can now speak more freely.

Thus, as a matter of policy, this decision is a victory.  Reducing the barriers to participation in the political process is almost always a good thing.  In fact, it is the very purpose behind much of our First Amendment.  The protection of freedom of speech-despite what 20th Century jurisprudence might lead you to believe-was not enacted by the founding generation to make sure Hugh Heffner and Larry Flint could make money.  The real purpose was to allow all citizens to let their views be heard in the political arena.  The government was not supposed to be allowed to stop us-and ‘us’ includes the companies we own, work for, and invest in-from criticizing the government.

One Congressman commented to me when McCain-Feingold was passed by Congress:  “Allowing us Congressmen to regulate expenditures in federal elections is like allowing the fox to set the rules for the hen house.”  Curiously, the McCain-Feingold’s rule had the effect of making political contributions more complicated, and making any criticism of a federal elected official more difficult-especially right before the election!

The Citizens United case is only a small, first step towards undoing years of damage to free speech, as it only directly addresses the issue of independent expenditures for corporations.  But it might also be a signal that the Court is moving in a new direction.  And that direction could send the ill-conceived McCain-Feingold-at least in part-to its rightful place in history:  extinction.

Hopefully its demise will come from the case brought by the California Republican Party, as well as the RNC and San Diego County Republican Party.  CRP Chairman Ron Nehring, RNC Chairmen Michael Steele, and SDCRP Chairman Tony Krvaric sought to litigate an “as-applied” challenge to McCain-Feingold.  As CRP Treasurer-a position that is highly burdened by the law-I happily voted for litigation because I have seen first-hand the horrible consequences, including the stifling of speech, that the law has caused as it is applied.  Another consequence is that state and county parties are restricted in working in non-federal elections.  This adds insult to injury with respect to the Founders’ intentions on speech and also federalism.

Since Citizens United partially overturned McConnell v. F.E.C. (which was the failed constitutional challenge to McCain-Feingold) we can hope that the Supreme Court will continue to free up political speech.  If it continues on the course set by Citizens United, we might soon see the most extensive attack on the First Amendment in our lifetime undone.

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REPORT FROM FEDERAL COURTHOUSE IN WASHINGTON, DC

From: Ron Nehring, CHAIRMAN

I just left the courtroom here at the U.S. District Courthouse in Washington, D.C. with CRP General Counsel Chuck Bell following the hearing in our legal challenge to provisions of federal campaign law (McCain-Feingold) interfering with our party’s ability to work on behalf of our candidates.

I’m pleased to report to you that the arguments went extremely well for our team, skillfully represented by attorneys Jim Bopp and Chuck Bell. 
 
CHALLENGE TO THE LAW AS IT IS APPLIED
 
Today’s hearing was the definitive “day in court” for our challenge to the law.  The Republican National Committee, the California Republican Party and the Republican Party of San Diego County are the three plaintiffs in the case.
 
Shortly after it was enacted, McCain-Feingold, also known as BCRA (Bi-partisan Campaign Reform Act), was challenged on its face and ultimately upheld by a narrow, 5-4 majority of the U.S. Supreme Court.  Since then, Justice Sandra Day O’Connor, who voted to uphold the law, has left the Court and was replaced with Justice Sam Alito, the conservative appointed by President Bush.
 
Our challenge is the “as applied” challenge to the law.  Meaning, the Supreme Court previously upheld the law on theoretical grounds.  Our challenge is based on the impact of the law as it has been applied to the political parties since then.
 
Under the provisions of the law itself, our case is on a fast track, having been heard today by a special three judge panel of the U.S. District Court in DC.  Regardless of the decision, the case will be appealed directly to the Supreme Court, most certainly in its next term.
 
MERITS OF THE CASE
 
Together with the RNC and the Republican Party of San Diego County, we are specifically challenging the provisions of the law that place unfair and unnecessary restrictions on how the party funds various activities, like voter registration.  These restrictions, which apply only to political parties and not to other outside groups, interfere with our ability to carry out functions that are central to our mission as a political party.
 
In short, the law assumes that if we are funding activities like voter registration in the months leading up to a primary or general election, it is assumed that the activity relates to a federal election, and the law requires those activities to be funded solely with donations that meet federal restrictions.
 
Of course, much of the voter registration and turnout activities we carry out during this period may be most directly related to state candidates, local candidates, or ballot measures.  Yet, the federal law assumes that all such activities are federal in nature and thus subject to these additional restrictions in how they are funded.
 
We are challenging these and other provisions of the law.
 
IMPACT OF THE LAW
 
The law as it is applied creates an unnecessary and unreasonable burden on the activities our party carries out to register voters, turn them out, and advocate for our state and local candidates.
 
Additionally, the law has had severe unintended consequences.
 
By placing burdens on how political parties can fund key election activities, without placing identical restrictions on other political entities (non-profit groups, non-federal candidates, 527 groups, etc), the law creates a bias for these functions to be carried out by such groups, instead of political parties and candidates directly.
 
The result is that an increasing portion of the campaign messages voters are receiving come not from candidates or democratically-run and transparent political parties, but rather from these outside groups few people have ever heard of.  Such groups are not necessarily democratically run, not necessarily transparent in their funding or governance, and cannot be held directly accountable for their actions or advocacy.
 
In short, the law shifts political speech away from open and transparent political parties and toward outside, private groups.
 
RESULTS OF A FAVORABLE DECISION
 
If our team prevails in this challenge, it will become significantly easier for the RNC, state and local party committees to fund voter registration, turnout, and other campaign related activities, particularly when those activities involve an emphasis on non-federal candidates, such as those for the state legislature, governor, or local government offices. 
 
We expect a decision by the U.S. District Court in the next few weeks, to be followed by a direct appeal to the United States Supreme Court.  It is our hope that this matter will be fully resolved before the November 2010 election.

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