On January 12, an attorney for the national Reform Party argued before the 11th circuit that the Federal Election Commission’s repayment demand against the Reform Party should not be considered valid. The case arose because the Reform Party was entitled to money from the federal government in 2000 to pay for its national convention expenses (the Reform Party was entitled to such money because it had polled over 5% of the presidential vote in 1996). Long after the convention was over, the FEC determined that some of the money had been spent improperly and that the party should repay $333,558.
The FEC sent its demand to the Reform Party’s Convention Committee, not the national committee. The party’s national committee argues that it was never formally notified of the FEC determination. There are other technical issues in the case as well. The 3 judges assigned to the case are R. Lanier Anderson (a Carter appointee), Stanley Marcus (Clinton), and Cecilia Altonaga (Bush Jr.). Questioning was so active that the hearing went on longer than the scheduled time. It is difficult to predict the outcome, but one plausible outcome might be that the fine stands, but that the lower court’s injunction might be modified. That injunction forbids the national party from spending any money until the FEC is repaid. The Reform Party pointed out that this makes it impossible for the party to spend any money soliciting contributions to raise money to repay the FEC.
If the Reform Party loses in the 11th circuit, it intends to ask for U.S. Supreme Court review.