FEC sues pro-Republican political group
Sharon Theimer
WASHINGTON — Federal election regulators have taken a political
group to court in what could serve as a test case for how the government
will address complaints over millions of dollars in big contributions
poured into last year’s presidential race.
The Federal Election Commission filed a lawsuit Monday in U.S. District
Court in Washington against the Club for Growth, the first case
of its kind to arise from high-dollar fundraising during the 2004
elections. The pro-Republican group spent at least $21 million in
the 2003-2004 election cycle.
The FEC contends the club spent enough in federal races to require
it to file with the commission as a political committee and to follow
contribution and spending limits. It wants the court to fine the
group and order it to comply with campaign finance rules.
Pat Toomey, the club’s president, called the FEC lawsuit “outrageous”
and “a bizarre interpretation of the club’s mission,
the Constitution, the laws adopted by Congress and their own regulations
governing nonprofit organizations.”
“The club’s principle purpose is to advocate for and
defend pro-growth policies,” Toomey said in a written statement.
“We have consulted with counsel every step of the way and
have followed the law and regulations that govern our work.”
FEC Vice Chairman Michael Toner rated the case “one of the
most important suits the commission has brought in recent years.”
“At stake is whether Club for Growth will be able to continue
raising and spending millions of dollars in soft money for activities
influencing federal elections,” said Toner, a Republican.
The lawsuit is the first to result from several complaints filed
against pro-Republican and pro-Democratic “soft money groups”
during the last election, and it could determine whether the commission
can rein in such groups without new congressional legislation or
FEC rules.
Campaign finance watchdogs contend the groups spent millions of
dollars in corporate, union and unlimited contributions despite
a new law banning the use of such money in presidential and congressional
races.
The FEC investigated the club’s fundraising and spending after
the Democratic Senatorial Campaign Committee complained to the commission
about it.
The DSCC complaint stemmed from an ad the club ran in the 2003-04
election cycle against then-Senate Minority Leader Tom Daschle,
D-S.D., over his opposition to a tax-cut proposal. Daschle lost
to Republican John R. Thune in last November’s election.
President Bush’s re-election campaign and the sponsors of
the 2002 campaign finance law sued the FEC last year, accusing it
of failing to enforce the law and crack down on soft money spending,
particularly in the presidential race. Those cases are pending in
federal court.
The 2004 election saw the emergence of several partisan groups created
by political activists to continue spending five- and even six-
and seven-figure contributions after the new law imposed tough donation
limits on national parties and congressional and presidential candidates.
Under the law, the national parties and federal candidates can no
longer raise corporate and union donations in any amount or unlimited
donations from any source, and such money isn’t supposed to
be used by anyone trying to influence a federal race.
The commission’s lawsuit accuses the club of failing to follow
federal fundraising and spending rules as far back as 2000.
The complaint says the club told prospective donors their money
would be used to help elect or defeat specific candidates.
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