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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