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Van Hollen: No Labor Carve-Out

Dem leaders have no plans to create a new carve-out that would exempt labor organizations from a sweeping campaign finance disclosure bill, DCCC chair Chris Van Hollen told Hotline OnCall in an interview Tuesday evening.

Labor groups have voiced concerns over the DISCLOSE Act, a legislative response to the Supreme Court's Citizens United v. FEC decision earlier this year that dramatically loosened campaign finance laws. The legislation would require corporations and labor groups that run political advertisements to disclose far more about their donors than they must currently.

One carve-out, announced on Monday after marathon negotiations between Van Hollen and Rep. Heath Shuler (D-NC) and the National Rifle Association, exempted a small number of large organizations from disclosure requirements. That deal has mollified the NRA, removing what would have been a significant roadblock to the legislation's success, but it irritated progressive Dems in the House, which oppose the NRA.

Campaign finance advocates are not happy about the deal, but they still support the legislation. Labor leaders, which will not get a similar compromise, have yet to endorse the bill.

"We will be continuing to meet with our members," Van Hollen said Tuesday. "We're working to address everyone's reasonable concerns, and I think we're making progress."

But, he said, other groups aren't likely to get the same deal that the NRA -- along with the Humane Society and the AARP -- won.

"Looking at it, it would be a mistake to eliminate all [501(c)(4)] organizations from the conversation," Van Hollen said. "That's why we settled on a provision that said, for well-established C4 organizations that have dues-paying members that aren't trying to hide from anybody -- that would be the test."

Asked directly whether that meant labor groups would not receive a carve-out compromise, Van Hollen said: "That is correct."

GOPers have criticized the bill, offered by Van Hollen in the House and Sen. Chuck Schumer (D-NY) in the Senate, expressing skepticism because the 2 authors have spent so much time and effort electing Dems. Senate Min. Leader Mitch McConnell has been especially outspoken, warning that the legislation would do more to protect Dems and their allies while singling out GOP-affiliated groups.

Still, labor organizations have not ruled out the possibility of opposing the bill. Unions have taken advantage of the Citizens United ruling in order to run a broader array of campaign ads, especially in the AR SEN race. Union officials believe the legislation, as written, would significantly hinder their ability to run campaign ads.

Dem leaders hope to get the bill to the floor as soon as possible, in order to get it to Pres. Obama's desk in time to influence the '10 midterms. House Maj. Leader Steny Hoyer will schedule a vote as soon as final issues are worked out, said another leadership aide.

Senate Maj. Leader Harry Reid has promised Van Hollen and Schumer that he will schedule floor time for the legislation before the July 4 recess.