Interesting story from the Des Moines Register’s Iowa Politics Insider blog:

The American Future Fund Political Action has asked the Federal Election Commission for an advisory opinion about whether federal law preempts laws like that in Minnesota.

In that state, a live operator must initiate the recorded call with the consent of the person receiving the call.

The political action committee, which raises and contributes money for political campaigns, is based in Virginia, but its advocacy arm, American Future Fund, is run out of Des Moines.

Des Moines lawyer Nick Ryan, chairman of American Future Fund’s board, said such restrictions interfere with federal campaign finance laws, which cover the activities of federal candidates, national party organizations and political action committees.

Ryan argued that the issue his group is raising is about fairness. For example, it is more expensive to conduct a telephone campaign that requires hiring staff, an obstacle to candidates with small warchests, Ryan said.

For background on the American Future Fund, read this Daily Kos diary by Mrs Panstreppon and this article by Jason Hancock for the Iowa Independent.

This FEC request suggests that the group plans to continue to be involved in upcoming elections in Minnesota, perhaps including the 2010 governor’s race or Congressional elections. Iowa doesn’t have any restrictions on political robocalls. The American Future Fund has run television ads in Minnesota this fall and ran ads supporting Republican Senator Norm Coleman last year. In fact, Minnesota’s Democratic-Farmer-Labor Party filed an FEC complaint against the group:

“The American Future Fund is a shadowy nonprofit organization,” the complaint said. “It purports to be exempt from tax under section 501(c)(4) of the Internal Revenue Code. But its notion of ‘promoting the social welfare’ is to send valentines to electorally troubled Republican Senate candidates. The Commission should take immediate steps to enforce the law and expose this group’s secret financing to light of day.”

Here in Iowa, the American Future Fund seems to be backing Terry Branstad for governor. Tim Albrecht was that group’s communications director before taking a job with the Branstad campaign. Nicole Schlinger, former president of the American Future Fund, is now handling fundraising for the Branstad campaign.

A member of the Des Moines business community tells me that Ryan has been making fundraising calls for Branstad’s campaign. I don’t know if he’s doing that on his own time or as part of his work for the American Future Fund. Ryan has worked for Bruce Rastetter, one of the Iowa business leaders deeply involved in recruiting Branstad to run for governor again.

UPDATE: The Minnesota Attorney General’s Office will submit comments to the FEC defending that state’s law.

Last year at this time I was scrambling to make as many phone calls and knock on as many doors as I could before the Iowa caucuses on January 3.

This week I had a little more time to reflect on the year that just ended.

After the jump I’ve linked to Bleeding Heartland highlights in 2008. Most of the links relate to Iowa politics, but some also covered issues or strategy of national importance.

I only linked to a few posts about the presidential race. I’ll do a review of Bleeding Heartland’s 2008 presidential election coverage later this month.

You can use the search engine on the left side of the screen to look for past Bleeding Heartland diaries about any person or issue.

Rob Hubler sent this e-mail to his supporters today:

Dear [desmoinesdem],

The highest appreciation that can be given a person in the Navy is “Well done!” To all of you I give my sincerest “WELL DONE!”  I cannot be prouder of all your efforts and your response to this campaign. Everyone went above and beyond their capabilities.

I want to share my thoughts about what went right, and what went wrong, so we can learn from events and continue to build a progressive force in the Fifth District, and I need to ask you for a little extra help to close out this chapter.  But first I offer some words from an essay by Tim Wise, that describe the work that has just begun with the election: http://www.redroom.com/blog/ti…

   “…And so it is back to work. Oh yes, we can savor the moment for a while, for a few days, perhaps a week. But well before inauguration day we will need to be back on the job, in the community, in the streets, where democracy is made, demanding equity and justice in places where it hasn’t been seen in decades, if ever. Because for all the talk of hope and change, there is nothing–absolutely, positively nothing–about real change that is inevitable. And hope, absent real pressure and forward motion to actualize one’s dreams, is sterile and even dangerous. Hope, absent commitment is the enemy of change, capable of translating to a giving away of one’s agency, to a relinquishing of the need to do more than just show up every few years and push a button or pull a lever.

   This means hooking up now with the grass roots organizations in the communities where we live, prioritizing their struggles, joining and serving with their constituents, following leaders grounded in the community who are accountable not to Barack Obama, but the people who helped elect him. Let Obama follow, while the people lead, in other words…”

We all know things did not go as we had all wanted and anticipated. It is far too early to get a complete handle on what happened. With the effort you put into our campaign the results should have been better.  We did receive more votes then any 5th district candidate has in the past, but the percentage was about the same as in previous races. We had considerable impact with Republican and independent voters–a tribute to your efforts. This was always a major effort of our campaign and we succeeded.

The early indication is that we did not do as well as we should have with Democrats.   Anecdotal evidence suggests that the GOTV effort we all worked so hard on was not directed to the folks that would have boosted our Democratic total and helped the down ticket.  Democrats across the district and the state did not win where we should have.  Kurt is one example of a Democrat who should have won, given the demographics of his district, but lost by fewer than 400 votes.  A better GOTV effort would have helped him.

The good news is that our campaign leaves a greatly improved Democratic organization in the 5th. There is a new sense of identity and a new willingness to improve on the infrastructure you all built. We have the foundation of a viable two-party system in our district. We can build and be competitive at the local and state level. Clearly we will throw away an opportunity if we do not unite behind our newly-energized party, and position ourselves to do even better than we did this year. These gains can be expanded and I will be working toward making this happen.

The bad news is that we must pay off a remaining debt of $10,000. You were one of those who were so generous and helped our campaign. I am asking you to contribute once again to eliminate the debt I have incurred, which is mostly owed to the staff. You all saw a staff that was totally dedicated to the campaign, and devoted great energy and sleep time to our effort.  As a past campaign staffer, I know how many times campaigns close without paying what is owed to staff members. I know it is my personal responsibility to fulfill my agreements with them, but I have expended all of my personal resources already and must depend upon you to help. A $25 or more contribution by you would be very much appreciated.

I look forward to the next two years of helping President Obama to answer the challenges we have been talking about in this campaign, and continuing our vigilant watch on Steve King. He is the only elected official who celebrated the election by being combative and disgraceful.  He is in stark contrast to John McCain’s gracious call for bipartisanship, and the need for cooperation in these trying times for our nation.  Whether King runs for reelection in 2010 or runs for Governor, we in the Fifth must continue to dog him and hold him accountable.  I know you will join me in this effort.

This is not an announcement of a campaign for 2010.  I am not going to even think about running again for a long time, if ever.  I am making this commitment to stay in the fight, however, no matter who is running for Congress in the election years to come.  This race was never about me, it was about real representation for the Fifth District, and it was about you.  My commitment to you will not waver.

We have a daunting task before us as a district, a state, and a nation. Barack Obama is a visionary who is up to the task. Senator Tom Harkin, Gov. Culver, Representatives Bruce Braley, Dave Loebsack, Leonard Boswell, our Democratic State House and Senate will all join with our new President to tackle the tasks at hand. We will bring real rural development to Iowa. We will stand with working families, family farmers and ranchers, the middle class and those who have no voice. And as we continue to do our part, collectively, we will bring back the respect the people of the 5th want and deserve.  It will not be easy but we have a good start. Let us continue what we have begun and work together to make our district a place of justice and not a national laughing stock.

I hope you will continue with me in our fight. The new page is turning even here. We have taken many steps and we must continue our journey until our job is complete.  We were not defeated. We have only been further challenged. We are up to the task. Let’s continue till we arrive at victory.

Thanks again for joining this campaign for Justice and peace. Step by step we will get there.

Peace and Justice,

Rob Hubler

(712) 352-2077

P.S. Your contribution of any amount helps us finish this campaign with the integrity from which we started it. I sincerely appreciate your assistance from the beginning to the end.

What Hubler says here about the GOTV effort is similar to what I am hearing from people all over this state. We lost statehouse races we should not have lost, races the House Democrats felt confident about going into the election. I have not crunched the numbers myself to confirm, but some are saying that the “drop-off” (that is, the number of people who cast a vote for president but not for state House or Senate candidates) was much greater this year than in 2004.

If anyone out there who worked in an Obama field office would like to give me your side of the story regarding the turnout effort or help provided to down-ticket Democrats, please contact me at desmoinesdem AT yahoo.com.

The “Kurt” referred to in this message is Rob Hubler’s son Kurt Hubler, Democratic candidate in House district 99 (Pottawattamie County). He lost narrowly to Doug Struyk, a former Democrat who switched parties and was one of the candidates supported by the American Future Fund during the final days of the campaign.

Looking at the election results, I noticed that only about 11,000 votes were cast in Kurt Hubler’s race, which is a lot less than the more than 16,000 votes cast in my own district 59. That’s one side effect of the generally lower turnout in Pottawattamie County, compared to 2004. Polk County, where district 59 is located, had higher turnout this year than in 2004.

I encourage you to help Hubler retire his campaign debt by donating one last time. He put tremendous effort into running a real campaign in a very tough district for Democrats.

The Des Moines-based American Future Fund is exploiting loopholes in rules governing political advocacy groups in order to run campaign advertising in targeted races without disclosing its donors.

The Des Moines Register provided the latest evidence in this article from Saturday’s edition: “National group airs ads on Iowa House.”

For background on the American Future Fund, a 510(c)4 organization “formed to provide Americans with a conservative and free market viewpoint,” you can read this piece by Iowa Independent’s Jason Hancock, this TPM Cafe story by Mrs. Panstreppon, or Paul Kiel’s report for TPM Muckraker.

The American Future Fund is associated with heavy-hitters in the field of campaign advertising. Its media consultant is Larry McCarthy (creator of the 1988 Willie Horton ad), and its legal consultant is Ben Ginsberg (who was involved with the Swift Boat Veterans for Truth in 2004).

Representatives for the American Future Fund deny that the group seeks to influence elections. For that reason, they are not subject to campaign disclosure rules governing political action committees and other groups that make independent expenditures during election campaigns.

However, the American Future Fund’s radio and television commercials this year have focused on candidates running in competitive Senate races, such as Republican incumbent Norm Coleman of Minnesota, Democratic candidate Mark Udall of Colorado, and Democratic candidate Jeanne Shaheen of New Hampshire. You can view many of those ads at the AFF’s You Tube channel. Note that while these commercials ostensibly are focused on generating phone calls in support of a particular issue position, they haven’t been aired in states without a contested Senate seat.

Now the AFF is weighing in on key Iowa legislative races. From yesterday’s story in the Des Moines Register:

On Wednesday [October 29], AFF launched television ads in Iowa that criticize Democratic Reps. McKinley Bailey of Webster City, Paul Shomshor of Council Bluffs, Elesha Gayman of Davenport and Art Staed of Cedar Rapids. All four are incumbents struggling to hold onto their seats in the face of strong Republican challengers.

Other ads that compliment Republican Reps. Doug Struyk of Council Bluffs, Jamie Van Fossen of Davenport and Dan Rasmussen of Independence. Struyk is a Republican leader whose opponent has spent little; the other two are dealing with strong Democratic challengers.

AFF’s spokesman explained the timing of the political messages by saying it took months to compile analysis on the legislative session, which ended in April.

What an amazing coincidence. Analysis about legislative action completed more than six months ago resulted in television ads that appeared six days before a general election.

In another amazing coincidence, the AFF’s ads happen to focus on candidates running in six battleground districts being targeted by both parties. Dozens of legislators who voted the same way on those issues, but represent uncompetitive districts, are not subject to AFF’s advertising blitz.

I could only find two of the American Future Fund Iowa’s tv ads on You Tube. One praised the Republican incumbent in Iowa House district 81, Jamie Van Fossen, and the other criticized the Democratic incumbent in House district 9, McKinley Bailey.

It’s worth noting that while urging viewers to call legislators, these ads give the phone number for the switchboard at the State Capitol. However, the switchboard is currently closed, because the legislature is not in session. The AFF spokesman explained that the law requires advertisements to use official phone numbers, but he is evading the issue.

These commercials cannot be intended to generate citizen communication with legislators if they are giving a phone number that no one is currently answering.

Clearly the AFF selected the subjects and timing of their advertising in order to influence the outcome of legislative elections in Iowa. (The Republican Party of Iowa is concentrating its resources on making gains in the Iowa House, where Democrats have only a 53-47 majority.)

The tv ads direct viewers to the web site of the AFF’s Iowa chapter: www.iowa.americanfuturefund.com.

AFF spokesman Tim Albrecht

told The Des Moines Register last month that AFF is a group that focuses solely on national issues. “At that time we were, but after a lot of analysis and reviewing what had occurred in the last legislative session, we decided to open an Iowa chapter,” he said.

It is AFF’s first state-based chapter in the country, said Albrecht, who is a former spokesman for Iowa Republican legislative leader Christopher Rants and AFF’s only paid staff member.

Earlier this year, the Iowa Future Fund was incorporated by the same people behind the American Future Fund, and the Iowa Future Fund ran television ads criticizing Democratic Governor Chet Culver. (Here is one of the Iowa Future Fund’s ads against Culver.) In March, the Iowa Democratic Party called for an investigation into the Iowa Future Fund’s advertising campaign and failure to disclose donors. In April, a press release announced the creation of the Iowa Progress Project to replace the Iowa Future Fund. In theory, the the Iowa Progress Project was going to focus on state issues, while the American Future Fund focused on national issues.

It is unclear why the American Future Fund decided to create an Iowa chapter, rather than have the Iowa Progress Project pay for television commercials about Iowa House incumbents. If anyone has any information regarding the Iowa Progress Project or the decision to create an AFF Iowa chapter, please post a comment or send me a confidential e-mail (desmoinesdem AT yahoo.com).

Can anything be done to force the AFF to disclose who is paying for these commercials? Charlie Smithson, executive director of the Iowa Ethics and Campaign Disclosure Board, told the Des Moines Register that his office had received a complaint about the ads, but that campaign disclosure laws do not apply because the AFF ads do not urge viewers to vote for a candidate.

Mr. desmoinesdem has extensively researched election law and tells me that one relevant case in this area is Federal Election Commission v. Wisconsin Right to Life. Wisconsin Right to Life was running ads urging people to contact their senators about judicial filibusters. Senator Russ Feingold was up for re-election, and the ads did not urge people to vote against him, but the FEC considered them “sham issue ads” that were intended to influence an election and therefore were subject to regulation by the Bipartisan Campaign Reform Act of 2002 (McCain-Feingold).

The Supreme Court had previously upheld McCain-Feingold’s provisions on political advocacy ads (in the McConnell vs. FEC case), so the key question was whether Wisconsin Right to Life’s ads were the kind of political advocacy Congress can regulate. With Chief Justice John Roberts writing for the majority, the court

held that McConnell v. FEC did not establish the test that any ad intended to influence an election and having that effect is express advocacy. Such a test would be open-ended and burdensome, would lead to bizarre results, and would “unquestionably chill a substantial amount of political speech.” Instead, the Court adopted the test that “an ad is the functional equivalent of express advocacy only if the ad is susceptible of no reasonable interpretation other than as an appeal to vote for or against a specific candidate.” The Court further held that the compelling state interests invoked by the government to regulate advocacy did not apply with equal force to genuine issue ads. Neither the interest in preventing corruption nor the goal of limiting the distorting effects of corporate wealth was sufficient to override the right of a corporation to speak through ads on public issues. This conclusion, the Court held, was necessary in order to “give the benefit of the doubt to speech, not censorship.” The dissent by Justice Souter called WRTL’s ads indistinguishable from political advocacy ads and accused the majority of implicitly overruling McConnell v. FEC.

I agree with Souter’s position that so-called issue ads targeting candidates in key races shortly before elections are really political advocacy ads subject to McCain-Feingold. If the American Future Fund were mainly trying to influence Iowans’ views on issues, they wouldn’t be running their commercials only in battleground districts. Also, the timing of the ads only makes sense in the context of this Tuesday’s election. As I mentioned above, no one is currently answering the phone number AFF asks viewers to call.

But Smithson has to look at the AFF’s Iowa advertising from a narrow legal perspective. Clearly the ads are promoting favorable opinions about some Republican incumbents and unfavorable opinions about some Democratic incumbents. But as long as the ads urge people to call a telephone number (even a non-working one), courts would probably not hold that the commercials have “no reasonable interpretation other than as an appeal to vote for or against a specific candidate.”

I am not an expert on election law or disclosure requirements for 501(c)4 organizations. Perhaps there is some way Congress could require more financial disclosure of 501(c)4s so that they would not be able to run campaign ads with no accountability.

I don’t know the solution, but I do know that we can help Democrats fight back against the American Future Fund’s ad campaign by giving to the Iowa House Democrats’ Truman fund or to the following individual candidates:

McKinley Bailey (incumbent in House district 9)

Art Staed (incumbent in House district 37)

Elesha Gayman (incumbent in House district 84)

Paul Shomshor (incumbent in House district 100)

Phyllis Thede (challenger in House district 81)

Gene Ficken (challenger in House district 23)

Earlier this year, Mrs. panstreppon wrote several stories on the conservative American Future Fund. You can find them here, here, and here.

This week Jason Hancock wrote a good piece for Iowa Independent about this advocacy group, which is running ads in close Congressional races across the country. This part caught my eye:

Public records show the AFF also has connections to Iowa businessman Bruce Rastetter, who is widely believed to be considering a run for governor in 2010. Rastetter is a regular donor to the Republican Party and founder of Hawkeye Renewables, the fourth largest ethanol producer in the nation. Eric Peterson, business manager at Summit Farms, another of Rastetter’s companies, is listed on documents filed with the Iowa Secretary of State’s office as president, secretary and director of Iowa Future Fund, a conservative nonprofit that essentially morphed into American Future Fund.

The address listed on an AFF ad buy in Minnesota is a post office box used by Nick Ryan, a Des Moines lobbyist who works primarily for Rastetter’s companies and who served as campaign manager for 2006 Republican gubernatorial candidate Jim Nussle. In February, Ryan was acting as spokesman for Hawkeye Renewables when 29,000 gallons of ethanol was accidentally spilled at the company’s Iowa Falls plant.

Within the past year, Rastetter donated $1 million to the Iowa State Fair and $1.75 million to the Iowa State University Agricultural Entrepreneurship Program. That will build up a lot of good will across this state.

Late yesterday, Dave Kochel issued a press release announcing the formation of Iowa Progress Project, a 501(c)(4) which will replace Iowa Future Fund. Iowa Future Fund is the mysterious organization running anti-Chet Culver ads. Iowa Progress Project is so new, it was only registered with the Iowa Secretary of State on 4/10/08.

Why Iowa Progress Project? Because it is similar to Iowa Policy Project, a respectable undertaking. Iowa Future Fund was the name of a lapsed Iowa Democratic PAC. In 2006, Republican operative Roger Stone sent out pro-Rick Santorum campaign mailers to Pennsylvania voters using Progressive Policy Council which was very similar to the left-leaning Progressive Policy Institute. 

Replacing Iowa Future Fund with Iowa Progress Project might be a direct response to recent questions here in Bleeding Heartland and elsewhere in the blogospehere as to whether wealthy Iowan businessman, Bruce Rastetter, funded IFF.

Bruce Rastetter is president of Hawkeye Renewables which owns and operates four ethanol plants in Iowa. He also is invested in the wind energy industry. From what I have learned so far, Rastetter is partners with some very wealthy private investors on the East Coast through AltEnergy LLC, located in Royaton, Connecticut. Russell Stidolph, head of AltEnergy, has been operating in Iowa since at least 2003 and probably provided the financial backing for Hawkeye Renewables.

Nicholas T. “Nick” Ryan, Jim Nussle's long time campaign manager, now works for Bruce Rastetter. Ryan  is somehow connected to AltEnergy LLC and uses the email address, nryan-at-altenergyllc.com. Ryan's p.o. box was listed on an American Future Fund ad buy in Minnesota.

From the IPP website: 

“Des Moines, IA — Iowa Progress Project announced today its formal organization and outlined its goals and objectives in the near and long-term.

President David Kochel said, “Iowa Progress Project is the direct result of the response thousands of Iowans have had to ads and issues highlighted by the Iowa Future Fund. While the Iowa Future Fund has been very effective at highlighting important issues in our state, what was also abundantly clear is that a grassroots-centered conservative issues organization is also needed in this state. IPP will provide citizens from all corners of Iowa a voice in their community and state.”

IPP announced the following Board of Directors for the organization:

President: David Kochel
Director: Kathy Pearson
Director: Gary Grant

Gary Grant is possibly the vice-president of Public Affairs Co.

Kathy Pearson is possibly the former president of the Iowa Federation of Republican Women and the president and sole employee of Kaas Employment Services in Cedar Rapids.

I'm not an Iowan but I am interested in IFF and IPP because they are linked to a well-organized national Republican program to misuse 501(c)(4)s during the upcoming election. 501(c)(4)s do not have to disclose their donors and can accept unlimited contributions.

American Future Fund and Iowa Future Fund were registered on 8/7/07 by top Republican operatives at Holtzman Vogel, a Virgnia law firm. AFF has been running pro-Norm Coleman ads in Minnesota and the Dems there have already filed an FEC complaint.

In the comments section of a TPM Cafe post about another Republican 501(c)(4), we are working out who, besides Bruce Rastetter, is behind American Future Fund.

I'll keep you posted!

Remember that Republican group, Iowa Future Fund, which has been running advertisements against Governor Chet Culver since last summer?

Mrs. Panstreppon alerted me to an article she wrote at TPM Cafe: American Future Fund & Iowa Future Fund, GOP Fronts. You should read the whole thing, but here are some excerpts (the embedded links did not come through–you’ll have to click over to TPM Cafe to see those):

American Future Fund (AFF) is running ads in support of Senator Norm Coleman (R-Minnesota) and Iowa Future Fund (IFF)is running ads against Governor Chet Culver (D-Iowa)and there has been speculation in the media as to who is behind AFF and IFF. Paul Kiel at TPM Muckraker posted about AFF and IFF and the Des Moines Register and Minnesota NPR among others have run stories about the two entities.

Last week, Minnesota Democrats filed an FEC complaint against American Future Fund.

I reviewed AFF and IFF documents filed with the Iowa Secretary of State on 8/7/07 and the incorporator is Jessica Young at 98 Alexandria Pike, Ste 53, in Warrenton, VA. That is the address of Holtzman Vogel, a law firm owned by two very influential and well-known Republican operatives, Alex N. Vogel and his wife, Jill Holtzman Vogel.

[…]

On 2/7/08, an Eric Peterson filed a fictitious name resolution in order for Iowa Future Fund to do business as “IFF”. Peterson listed himself as IFF president, secretary and director but no address or phone number was provided.

Jessica Young as IFF incorporator has the power to appoint directors so I assume she appointed Eric Peterson. But Young isn’t talking. I called her at Holtzman Vogel and was referred instead to an attorney named Teresa who told me that it was the firm’s policy to keep client matters confidential. When I pointed out that HV seemed to be the client, she refused to comment.[…]

According to Stu Rothenberg at the Rothenberg Report, Republican operatives Ben Ginsberg and Edward T. Tobin III are also involved in IFF and AFF. Ginsberg, former counsel to the Bush-Cheney campaign, is a partner in Patton Boggs’s public policy and lobbying group. Tobin, former executive director of the Republican Governors Association, is a partner in Wilmer Hale’s fairly new Public Policy and Strategy Group.

David Kochel has acknowledged that he is an IFF advisor but refuses to say anything more. Kochel, a former Iowa Republican Party director, was most recently an advisor to the ill-fated Romney campaign and he advised Lamar Alexander in 2000. Kochel, along with Jennifer Dean, owns JDK Marketing and Public Affairs.

Who is Eric Peterson, Iowa Future Fund president, secretary and director? One guess is that he is Eric Peterson, Summit Farms business manager. A 2007 Iowa State U. grad, Peterson donated $2k to Rudy Giuliani in December as did other Summit Farms employees along with Peterson’s employer, wealthy Iowan businessman, Bruce Rastetter.

Bruce Rastetter, a big Republican donor, owns Hawkeye Renewables which owns and operates four ethanol plants in Iowa.

[…]

Rastetter himself is politically ambitious and considered running against Senator Tom Harkin this year.

[…]

Is Bruce Rastetter, a least in part, funding Iowa Future Fund and American Future Fund? It would certainly suit him politically to do so because he can keep the extent of his financial support of the Republican Party secret. Rastetter seems to be a practical guy in that he just made his first ever contribution to a Democrat, $25k to Gov. Culver. I doubt if Rastetter would want the governor to know he is funding ads criticizing him.

Bleeding Heartland readers, do you know anything more about Eric Peterson or other people behind the Iowa Future Fund?  If so, please put up a comment or e-mail me confidentially: desmoinesdem AT yahoo.com.