Ernst Blofeld is going to be ticked!

Democrats' new campaign funding groups may face regulation

WASHINGTON -- Democrats who have been forming groups to avoid spending restrictions in the campaign finance law may face bad news: The government's new chief election regulator is warning that their activities could be reined in.

Bradley Smith, the Republican chosen yesterday as chairman of the Federal Election Commission, said he believes a recent Supreme Court ruling may require his agency to limit the groups' activities.

"If so, it's a huge issue. And it means there are a lot of groups already out there that would have accepted contributions beyond their limits," Smith said.
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Democrats, however, say the new law provides for an exemption for special tax-exempt political groups, known as 527s, and they formed several of them. The goal is to use the groups to help Democrats better compete with Republicans, who enjoy a significant edge in raising small contributions allowed under the law.

And that's where Ernst Blofeld and SPECTRE with their deep pockets come in.

Smith's word of caution brought an expression of surprise from Laurence E. Gold, a lawyer representing three of the new Democratic groups. "I think it would be a dramatic change in the law that can only come from Congress to do that, and that has not occurred," Gold said.

Smith said that while he has not formally made up his mind, he believes the court's ruling may require the FEC to treat the new groups like regulated political committees. That would mean the groups would be limited to accepting no more than $5,000 in donations from each individual, and would be banned from taking corporate or union money.

It also would require them to disclose their finances and spending to the FEC.

Smith said the court ruling seems to eliminate the "express advocacy" standard, which meant the FEC could regulate groups that spent money calling for a candidate's election or defeat.

If the FEC decides that the Supreme Court ruling expands its ability to regulate and limit election activities, the new groups could be forced to return the big checks they have collected.

Blofeld doesn't want his money back - he wants control!