ASAE Comments, on Disclosure Act Prior to Markup
The House Administration Committee held a markup in late May on the Disclosure Act. The Disclosure Act (H.R. 5175) is legislation designed to blunt the impact of the Supreme Court's landmark campaign finance decision earlier this year. The bill's lead sponsor, Representative Chris Van Hollen (D-MD), and House Administration Committee Democrats are expected to introduce a manager's amendment during the markup to address concerns from business groups that the measure would eliminate corporate political action committees (PACs) at U.S. companies with foreign owners, such as Anheuser-Busch. The treatment of corporate PACs is just one of many concerns business groups and trade associations have with the draft bill.
The legislation is intended to counter the recent Citizens United Supreme Court ruling allowing unrestricted corporate and union spending in elections. The Disclosure Act is intended to counter the Supreme Court ruling allowing unrestricted corporate and union spending in elections. It requires CEOs of organizations sponsoring a political ad to "stand by their ad," and in cases where money is funneled to an association or union, the top five organizations that have donated to the group would also have to be identified on screen during any ad. The bill also requires organizations to Disclosure donations for political activities that exceed $1,000 and strengthens restrictions on political spending by corporations controlled by foreign nationals, government contractors, or companies that received bailout funds from the federal government.
Committee chair Robert Brady (D-PA) is a co-sponsor of the legislation and is looking to quickly move the bill to the House floor. "The bottom line of this legislation is simple: voters deserve to know who is financing elections," said Brady in a statement.
ASAE delivered a letter to committee members pointing out several other provisions that could impede on the First Amendment rights of associations. ASAE believes several of the reporting and disclaimer requirements in the current draft make compliance an onerous task for associations and other organizations that have rights to political speech protected by the First Amendment. "These provisions also call into question the impartiality of the Act, and add duplicative and burdensome disclosures that could discourage legitimate and protected participation in the political process," ASAE wrote in its May 20 letter.
The Disclosure Act is facing widespread opposition from Republicans, although there are two GOP co-sponsors in the House, Representatives Mike Castle (R-DE) and Walter Jones (R-NC). The House Administration Committee's ranking member, Representative Dan Lungren (R-CA), blasted House Democrats for failing to publicly release the revised bill before the markup and said the first draft "unfairly and unevenly restricts organizations from engaging in political debate." That suggestion was echoed in a May 19 letter to the committee from eight former Republican commissioners of the Federal Election Commission (FEC). The ex-commissioners said the draft legislation put forth by Van Hollen and Senator Chuck Schumer (D-NY) is "unnecessary, partially duplicative of existing law, and severely burdensome to the right to engage in political speech and advocacy."