Your web browser is not supported You're using Internet Explorer, some features might not work. Please switch to another browser like Chrome, Firefox, or Edge for a better experience.


An official website of the United States government Here's how you know
 **Official websites use .gov**
            
            A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**
            
            A **lock** ( A locked padlock ) or **https://** means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Federal Election Commission | United States of America Calendar
           Glossary
          Search
              Search


Menu
      Home
      Campaign finance data
        All data
            Raising
            Spending
            Loans and debts
            Filings and reports
            Candidates
            Committees
            Bulk data
            Campaign finance statistics
        Find elections. Search by state or ZIP code
          Look up contributions from specific individuals
      Help for candidates and committees
        All compliance resources
            Guides
            Forms
            Dates and deadlines
            Trainings
        Learn about electronic filing
          Find and contact your committee's analyst
      Legal resources
        All legal resources
            Advisory opinions
            Enforcement
            Statutes
            Legislation
            Regulations
            Court cases
            Policy and other guidance
        Search across all legal resources
          Search guidance documents
      About
        All about the FEC
            News and announcements
            Commission meetings
            Mission and history
            Leadership and structure
            Reports about the FEC
            Careers
            Working with the FEC
            Contact
        Introduction to campaign finance and elections


- Home
- ›
      FEC Record: Litigation
- ›
      Court grants Commission summary judgment in “straw donor” cases (Campaign Legal Center, et al., v. FEC, et al.)

FEC Record: LitigationCourt grants Commission summary judgment in “straw donor” cases (Campaign Legal Center, et al., v. FEC, et al.)June 28, 2018 On June 7, 2018, the United States District Court for the District of Columbia upheld the Commission’s exercise of its prosecutorial discretion when it declined to investigate three administrative complaints alleging that corporate and other entities had been used in violation of the Federal Election Campaign Act’s (the Act’s) prohibition on making contributions in the name of another person. The Court concluded that the Commission’s dismissals of the administrative complaints were not contrary to law and granted summary judgment for the FEC and the intervenor-defendants. Background The Campaign Legal Center and Democracy 21 (collectively “Plaintiffs”) filed five administrative complaints with the FEC alleging that other persons were the true sources of contributions disclosed as being made by limited liability companies (LLCs) to independent expenditure-only political committees (commonly referred to as “Super PACs”). Additionally, the Plaintiffs alleged that some of the LLCs were political committees subject to the reporting requirements of the Act.
    The Commission’s Office of General Counsel recommended finding reason to believe that the respondents had violated the Act’s “straw donor” prohibitions, but recommended taking no action on the political committee allegations. In February 2016, the Commission voted 3-3 on whether to find reason to believe that any violations had occurred, and the administrative complaints were dismissed. The Commission’s “controlling group” in the dismissal of the administrative complaints
    – the three Commissioners who voted against finding reason to believe – released a Statement of Reasons in April 2016. In this Statement of Reasons, the three Commissioners stated that they declined to find reason to believe a violation occurred as
    “an exercise of the Commission’s prosecutorial discretion.” They stated that the Supreme Court’s decision in Citizens United v. FEC required the Commission to examine how the Act’s straw donor ban applied to corporate contributions and that “the speech rights recognized in Citizens United would be hollow if closely held corporations and LLCs were presumed to be straw donors.”
    They concluded that “principles of due process, fair notice, and First Amendment clarity counsel against applying a standard to persons and entities that were not on notice of the governing norm.” The controlling Commissioners also described a new standard they propose to use to evaluate straw donor allegations in this context. The standard focuses on whether the funds were intentionally funneled through a closely held corporation or corporate LLC for the purpose of making a contribution that evades the Act’s reporting requirements. The Plaintiffs subsequently filed suit in U.S. District Court for the District of Columbia alleging that the Commission’s dismissal
    of their administrative complaints was contrary to law. In March 2017, the Court held that the Plaintiffs had standing
    to pursue their challenge regarding three of the five administrative complaints, but dismissed the Plaintiffs’ claims regarding two of the complaints. Analysis The Court noted the controlling Commissioners concerns of fair notice, due process, confusing Commission precedent, and the obligation to protect First Amendment speech and found that these concerns constituted a rational basis for the controlling Commissioners’
    decision to dismiss the complaints. As a result, the Court concluded the dismissal of the complaints was not contrary to law. The Plaintiffs also challenged the controlling Commissioners’ prospective standard as “arbitrary, capricious, and contrary
    to law.” The Court found that this challenge was not ripe as the Commission has not applied this standard or formally adopted it and granted the Commission’s motion for summary judgment. Resources Campaign Legal Center v. FEC (16-752) litigation page
 Author
          Paul StoetzerSr. Communications Specialist


Read next: CREW, et al. v. FEC alleges failure to act on administrative complaint (Case 1:18-cv-01060)
 Related: Explore legal resources »


This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


About
          Careers
          Press
          Contact
   Privacy and security policy
          Plain language
          No FEAR Act
          Strategy, budget and performance
 Open government
          Protected Voices
          USA.gov
          Inspector General
          FOIA
 OpenFEC API
          GitHub repository
          Release notes
          FEC.gov status


Federal Election Commission
 The FEC's Twitter page
            The FEC's YouTube page Sign up for FECMail


Hide glossary Glossary Search terms