The United States Supreme Court today rejected Vermont Right to Life Committee’s (“VRLC”) challenge to Vermont’s campaign finance laws. The Court’s denial of certiorari means that a political action committee must do more than create a separate bank account for independent expenditures to be exempt from the limits on contributions. The PAC must be truly independent of other committees and candidates in order to accept contributions in excess of the limits.
The Court’s action leaves intact the Second Circuit Court of Appeals ruling that VRLC-Fund for Independent Expenditures was not actually an independent expenditure committee. The State had proven that VRLC-FIPE was functionally indistinguishable from VRLC-PC, which made direct contributions to candidates. Since the two committees shared board members and staff, transferred funds to one another, and jointly planned activities, both of them were required to abide by the contribution limits.
The Supreme Court’s action also rejected VRLC’s challenge to the campaign finance reporting statutes for PACs. VRLC had argued that since it engaged in a variety of activities and did not have “the major purpose” of supporting or opposing candidates, then it should not be required to file campaign finance reports. The Second Circuit had ruled that Vermont’s statute did not need to include this restriction in order to require reporting by PACs.
Today’s court action rejecting this last appeal brings VRLC’s case to a close. VRLC had initiated the lawsuit in 2009. Attorney General William Sorrell said: “This has been a long and hard-fought case, but the principles are important if we are going to help voters make informed decisions about candidates and their supporters. We are pleased with this outcome.”
Vermont AG: Jan 12, 2015