The Independent View: Democrats Introduce the DISCLOSE Act of 2018

On Jun 27th 2018, Senator Sheldon Whitehouse (D-RI) and Congressman David Cicilline (-RI, 1st District) submitted Bicameral Legislation that would increase Transparency and Guard against Foreign Interference by requiring Disclosure of Dark Money Spending. It is called the Democracy Is Strengthened by Casting Light On Spending in Elections or the DISCLOSE Act of 2018. Whitehouse has introduced the DISCLOSE Act in every Congress since 2012. All Senate Democrats and 145 Democratic Members of the House of Representatives Co-Sponsored in introducing the Legislation to shine a light on the Unlimited, Secret Spending flooding American Elections.

Whitehouse and Cicilline’s updated DISCLOSE Act would require Organizations spending Money in Federal Elections to Disclose their Donors, and help guard against Hidden Foreign Interference in our Democracy. The Bill comes as outside Spending Organizations, like those funded by Charles and David Koch’s Network of Wealthy Donors, gear up to spend Hundreds of Millions of Dollars to influence the 2018 Midterm Elections, and as Experts warn of troubling avenues for Foreign Influence in Elections using Loopholes in U.S. Campaign Finance Law.

The DISCLOSE Act is a key part of A Better Deal for Our Democracy, the Democratic Plan to End the Corruption in Washington that has paralyzed American Politics and rigged the system against Working People. They are committed to advancing critical Reforms to Empower Voters at the Ballot Box, bolster our Nation’s Ethics Laws, and overhaul our Broken Campaign Finance System.

Since the Supreme Court’s disastrous Citizens United decision, Corporations and a Small Group of Wealthy Donors have smothered our Democracy with sophisticated Influence Campaigns. Attack Ads from their Dark Money Groups Flash on our screens with no way to know Who’s Behind them. And the same Loopholes Citizens United opened for those Special Interests are available to the likes of Vladimir Putin or other Foreign Actors looking to undermine American Democracy.

Democratic leadership in both Houses of Congress cheered Introduction of the Bill.

“Dark money has poisoned our democracy, leaving our elections vulnerable to foreign interference as well as giving special interests a louder voice than the American public in pivotal decisions—like healthcare and taxes. As anonymous entities wreak havoc on our political system and hurt middle class families without any accountability whatsoever, campaign finance cannot continue to be shrouded in secrecy. This common sense transparency legislation is a crucial step towards shielding democracy from the influence of corporations, special interests, and malicious foreign actors and putting the power back into the hands of Americans,” said Senate Democratic Leader Chuck Schumer.

Election spending has exploded in the United States since the Supreme Court’s 2010 Citizens United Decision. Citizens United and subsequent Supreme Court Rulings permit super PACs and certain types of Tax-Exempt Groups to spend Unlimited Sums in Elections. Many of those Groups are Not Required to Disclose their Donors, allowing Wealthy Corporations and Individuals to spend Unlimited, Undisclosed, or “dark” Money, without being tied to the Television Attack Ads and other Electioneering Activity the Groups carry out.

The Result is Unprecedented Levels of Dark Money Spending and a Midterm Election expected to be the most Expensive ever. Outside Groups have already spent $154 Million this Cycle, and super PACs alone have raised $433 million. The network of Political Spending Organizations Funded and Controlled by the Kochs has announced it will spend over $400 Million in the 2018 Midterms. House Speaker Paul Ryan’s Political Fundraising Group recently received $24.6 Million from a single anonymous donor. In all, Experts expect 2018 spending to Exceed the $3.8 Billion spent during the 2014 Midterms.

The DISCLOSE Act of 2018 takes a number of steps to ensure Disclosure of Dark Money Spending. Among those steps is a Requirement for Organizations Spending Money in Elections, including super PACs and certain Nonprofit Groups, to Disclose Promptly Donors who have given $10,000 or more during an Election Cycle. The Bill includes robust Transfer Provisions to Prevent Political Operatives from using Layers of Shell Corporations and Front Groups to Hide Donor Identities. Among New Features of the bill is a “stand by your ad” Provision requiring Corporations, Unions, and other Organizations to Identify those behind Political Ads, including Disclosing an Organization’s Top Five Funders at the End of Television Ads.

The Bill Protects against Foreign Spending in American Elections.Under current Law, Foreign Nationals and Foreign Corporations are Prohibited from Engaging in any Election Spending. However, Domestic Companies with significant Foreign Ownership are Not Subject to the same Restrictions, and Dark Money channels are available to foreign Interests. The DISCLOSE Act would Prohibit Domestic Corporations with significant Foreign Control, Ownership, or Direction from spending Money in U.S. Elections.

The Bill also includes Provisions to Crack Down on Shell Corporations by requiring Companies Spending Money in Elections to Disclose their True Owners, so Election Officials and the Public know who is behind the Spending.

Members of both Parties long Supported Campaign Finance Disclosure prior to Citizens United. In 2003, Senate Majority Leader Mitch McConnell told NPR Spending in Elections should be “limited and disclosed” so that “everyone knows who’s supporting everyone else.”
Conservative Judges have Concurred. “Requiring people to stand up in public for their political acts fosters civic courage, without which democracy is doomed,” wrote Supreme Court Justice Antonin Scalia in 2010. “For my part, I do not look forward to a society which, thanks to the Supreme Court, campaigns anonymously . . . hidden from public scrutiny and protected from the accountability of criticism. This does not resemble the Home of the Brave.”

According to a Bipartisan Poll Commissioned by the George W. Bush Institute, more than Three in Four Americans think that “the laws enacted by our national government these days mostly reflect what powerful special interests and their lobbyists want.” The Survey found that 55% of Americans see Democracy as “weak” and 68% believe it is “getting weaker.

CLICK HERE to read the 41 page (pdf) Bill.