Court: Group can raise unlimited amounts for election ads, but must disclose the money

Court: Group must disclose money for election ads

WASHINGTON — A conservative group that plans to raise unlimited sums to run ads in congressional contests must disclose its donors, a federal appeals court ruled Friday

The U.S. Court of Appeals in Washington said the group, SpeechNow.org, can collect unlimited donations from individuals for the ads it plans to run independently of candidates, in line with a recent Supreme Court ruling. But the group will have to file reports with the Federal Election Commission spelling out its fundraising and spending, the appeals court said.

SpeechNow.org wanted to operate free of any fundraising or disclosure requirements. Had the appeals court backed that, it would have made it virtually impossible for voters to know who was behind election-time ads attacking or promoting congressional and presidential candidates.

The ruling is the first major campaign finance decision since the Supreme Court said earlier this year that corporations, unions and groups of individuals can spend unlimited sums supporting or opposing candidates — as long as they do it independently of candidates. The high court so far has upheld campaign finance disclosure rules.

SpeechNow.org is considering whether to appeal the disclosure requirement ruling to the Supreme Court, Brad Smith, one of its attorneys and a former FEC commissioner, said Friday.

“I can assure you that issue isn’t going to go away whether it’s appealed in SpeechNow or not,” Smith said, adding that the group views the FEC reporting requirements as an unconstitutional burden on its free speech.

Neither the Supreme Court ruling nor Friday’s appeals court decision changed the donation and spending restrictions placed on political action committees, which can contribute directly to congressional and presidential candidates and national party committees. Spending that PACs coordinate with candidates or parties also is not affected.

PACs can still accept only limited donations from individuals and other PACs and give or spend limited amounts in concert with campaigns and party committees.

SpeechNow.org v. Federal Election Commission: pacer.cadc.uscourts.gov/common/opinions/201003/08-5223-1236837.pdf