Center for Competitive Politics Files Comments Supporting ActBlue’s Campaign Finance Innovation

Posted on November 5, 2007

The Center for Competitive Politics (CCP) filed comments with the FEC today supporting ActBlue's Advisory Opinion Request (AOR 2007-27), which focuses on the ability of union and corporate PACs to raise money.

ActBlue, an organization that makes it easier for citizens to contribute to political campaigns, asked the FEC whether it can independently solicit the general public for earmarked contributions to the "Separate Segregated Fund" (SSF) of corporations, labor unions, and other membership organizations. 

ActBlue also asked if it can coordinate with a SSF to solicit contributions from the SSF's "restricted class."  A corporation's restricted class is primarily comprised of its shareholders, executives, and employees. The restricted class of unions and other membership organizations is generally defined as that organization's members.

CCP's comments, filed with the FEC, contend that ActBlue is legally permitted to solicit funds in the manner it requested. 

"ActBlue has come up with a tremendous innovation on a previously silent question," said CCP vice president Stephen Hoersting.

Current law says that companies and unions can only solicit people who are able join their restricted classes.  But the law also states that PACs "may accept contributions from persons otherwise permitted by law to make contributions."

ActBlue would serve as a third party conduit, which CCP's comments argue, allows it to independently solicit the general public to give money to these PACs and coordinate with a PAC to solicit from its restricted class.  

"By law, corporations and unions are only able to solicit members of their restricted class to contribute to their PACs," said Hoersting.  "Consequently, there has always been an upper limit on how much corporate or union PACs can collect. ActBlue changes that." 

CCP's comments can be found by following this link: http://www.campaignfreedom.org/research/resID.64/research_detail.asp