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Oct 29, 2004 -- LEGAL CENTER WEEKLY REPORT: October 29, 2004

FEC Evades Recount Funding Decision — Nethercutt Withdraws Related Request

The FEC was scheduled to consider, at its October 28 meeting, two alternative draft Advisory Opinions in response to Advisory Opinion requests (AOR 2004-38 and 39) made by Rep. Nethercutt and the Nethercutt for Senate Committee. Nethercutt sought the FEC's opinion as to how it may permissibly pay for recount expenses related to the November 2004 general election. Nethercutt asked for clarification as to whether funds raised and spent by his committee in connection with a recount would be subject to the limitations, prohibitions and reporting requirements of FECA, as amended by BCRA.

FEC staff prepared two alternative draft Advisory Opinions. Draft A, consistent with comments submitted to the FEC by the Campaign Legal Center, Democracy 21 and the Center for Responsive Politics, concluded that funds received or spent in a recount are subject to FECA limitations, prohibitions and reporting requirements. Draft B concluded that, under existing FEC Regulations, recount funds not subject to the amount limitations and reporting requirements of FECA.

Immediately prior to the Oct. 28 meeting, Rep. Nethercutt withdrew his Advisory Opinion Request, forcing the FEC to begin its meeting by removing discussion of the draft Advisory Opinions from its agenda. Despite the removal of the draft Advisory Opinion discussion from the agenda, several commissioners took the opportunity to comment on the subject, noting that the FEC regulations "on the books" allow recount fundraising in excess of the BCRA contribution limits—but also acknowledging that the regulations may be in conflict with BCRA. Vice Chair Weintraub suggested that the Commission revisit the regulations after the Nov. 2 election.

In a related matter, Chairman Smith commented that a pending Advisory Opinion Request by the Washington State Republican Party, also seeking clarification regarding raising and spending recount funds, would likely be withdrawn by the party prior to the Commission's next meeting.

Click here to view the comments filed by the Legal Center, Democracy 21 and the Center for Responsive Politics.

Click here to view the letter from the BCRA sponsors to the FEC regarding recounts.

Election Reports Released This Week

The Campaign Finance Institute's recent reports on Congressional campaign financing finds that competitive Democratic House challengers raised twice as much as the Republican challengers and Senate candidates have raised record amounts of money than in any previous Senate election.

Click here to view the reports.

Post-Election Conference Announcement, November 17th, 9 AM - Noon : Voting Issues & Campaign Finance Recap

On November 17th, from 9 AM - Noon at the St Regis Hotel (16th and K, NW), the American Enterprise Institute, the Brookings Institution, the Campaign Legal Center and the Reform Institute will be hosting a post-election conference to analyze and discuss the campaign finance developments in the 2004 election, presidential public funding and the reform agenda for the next Congress.

Click here for more information on this event.

Week in the News

To read a variety of this week's editorials and articles on campaign finance , including many on section 527 organizations and the failings of the FEC, please click here.