It's No Joke: FEC Oks Colbert Super PAC
This morning, at a cozy 9th floor hearing room at
the Federal Elections Commission, comedian and talk show host Stephen Colbert
received approval to establish his super PAC. Mr. Colbert’s PAC will be able to
raise and spend an unlimited amount of money, and make unlimited expenditures,
provided all his expenditures are not coordinated with any candidate, political
committee, or party.
A so-called “super PAC” is a political action committee that
may accept unlimited contributions from authorized sources (individuals,
political committees, corporations, and labor organizations), but is only
authorized to make independent expenditures (expenditures not coordinated with
any candidate, party, or political committee). A super PAC has no limit on the
amount of contributions it can accept from authorized sources. Additionally, it
can accept contributions from corporations and labor organizations, which
candidates, parties, and political committees cannot. Mr. Colbert’s legal issue
was not an easy one to decide because of the uniqueness of his request to fall
under the media exemption which establishing a PAC. However, Mr. Colbert is not
the first one vying to establish a super PAC. While initially against super
PACs, Senate Democratic leader Harry Reid and House Minority Leader Nancy
Pelosi now want
to raise money for Super PACs. (In a separate ruling today, the FEC ruled that
federal office holders may not raise unlimited funds for super PACs.)
In a bi-partisan 5-1 vote, the Federal Elections Commission
approved an Advisory Opinion which gave Mr. Colbert almost everything he asked
for. First, Mr. Colbert is allowed to establish his “Super PAC.,” Second, if
the committee is discussed on Mr. Colbert’s show, he does not have to disclose
in-kind contributions from Comedy Central’s parent company, Viacom. The
Commission determined these activities would fall under “press exemption,”
which says that a contribution or expenditure would not result from “any cost
incurred in covering or carrying a news story, commentary, or editorial by a
news station unless owned by a political entity.” However, in a minor defeat,
if Mr. Colbert’s independent expenditures are distributed outside of his show,
he must disclose these as in-kind contributions from Viacom. The Commission
said these would be considered in-kind contributions because distributing these
advertisements outside Mr. Colbert’s show would fall outside their legitimate
press function.
The one dissenting vote came from Commissioner Donald
McGahn, who agreed that Mr. Colbert should be allowed to establish his PAC and
solicit unlimited contributions, as well as make unlimited independent
expenditures. However, Commissioner McGahn does not think advertisements
outside of Mr. Colbert’s show need to be reported as in-kind contributions.
Commissioner McGahn said:
I agree with question 1 and
question 3, [pertaining to the establishment of the PAC, soliciting of funds,
and production of independent expenditures] but I am skeptical that other
advertising by Viacom is definitely something that should be reported. There
are still questions of who the media are that need to be addressed in rules
after Citizens United.
It is unclear
whether Mr. Colbert knew what a legal process establishing his PAC would be.
However, the FEC gave Mr. Colbert almost everything he wanted. The FEC is
allowing him to establish his PAC, solicit unlimited contributions, and make
unlimited independent expenditures. However, they determined that he falls
under the press exemption for PAC activity on his program. This one minor
defeat will likely not phase Mr. Colbert, as his PAC will most likely be run
and monitored by his lawyer and campaign finance expert, Trevor Potter. The
FEC’s ruling opens up other political commentators, and talk show hosts, to
establish super PACs, as well as discuss these PACs on their respective
programs, falling under the media exemption. The FEC gave Mr. Colbert the power,
now the question is, will he use it?
To read all the proposed advisory opinions, go here. To listen to an audio
recording of the hearing, go here