Todays Hotline:
The FEC charged the Club for Growth for violating campaign-finance laws, specifically for raising and spending at least $4M more than the soft-money limits for 527s allow (Dinan, Washington Times, 9/10). From the suit: "The Club itself has repeatedly asserted that its purpose is to 'elect pro-growth congressmen' and 'defeat status quo incumbents' (but) has never registered as a political committee with the Commission and has failed to report to the Commission its receipts and disbursements" (Whittington, Roll Call, 9/20). FEC Vice-Chair Michael Toner: "This litigation is an important test case on when 527 groups are required to register with the FEC and follow hard-dollar restrictions in federal law" (Washington Times, 9/10).
CFG pres. Pat Toomey called the suit "outrageous" and "a bizarre interpretation of the club's mission, the Constitution and the laws adopted by Congress. ... We have consulted with counsel every step of the way and have followed the law and regulations that govern our work."
FEC investigated CFG as a result of a DSCC complaint about an ad that ran against ex-Sen. Min. leader Tom Daschle (D-SD) "over his opposition to a tax-cut proposal." Center for Responsive Politics head/ex-FEC counsel Larry Noble said the lawsuit focuses on spending that urged voters to elect or defeat candidates. Noble said the suit would leave questions for the FEC on partisan groups which aim to influence voters, but "didn't go quite as far as the club did" (Theimer, AP/Lexington Herald-Leader, 9/20).
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