Federal Court Requires Greater Disclosure of Corporations that Fund Electioneering Communications. Donors Beware.

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On March 30, 2012, the United States District Court for the District of Columbia struck down a key provision governing the disclosure of electioneering communications by corporations and labor unions.

In Van Hollen v. FEC, No. 11-0766 (D.D.C. Mar. 30, 2012), the district court ruled that the Federal Election Commission (“FEC”) improperly exercised a legislative function reserved for Congress when it promulgated 11 C.F.R. § 104.20(c)(9) which allows for corporations and labor unions to avoid disclosure of expenditures that pay for electioneering communications when those expenditures are not “made for the purpose of furthering electioneering communications.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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