Stephen Colbert OK to launch Super PAC, FEC says

Updated at 1:50 p.m. ET

WASHINGTON - No joke.

The Federal Election Commission said Thursday that comedian Stephen Colbert can use his TV show's resources to boost his political action committee, but he must disclose some major expenses as in-kind contributions from the show's corporate owners.

Colbert played it straight during his appearance before the commission, letting his attorney do most of the talking while saving his trademark quips for a crowd that gathered outside the commission building after the meeting.

"I don't accept the status quo," he told the crowd, brandishing a portable credit card processing machine. "I do accept Visa, Mastercard or American Express."

Colbert seeks "megaphone made of cash"

Many in the crowd handed Colbert their credit cards or dollar bills as contributions.

Asked what point he was trying to make about corporate America, Colbert did not miss a beat.

"None," he quipped. "I want their money."

Colbert, who plays a conservative TV pundit on "The Colbert Report," is forming Colbert Super PAC, a type of political action committee which will allow him to raise unlimited amounts of money from corporations, unions and individuals. The money will be used to support or oppose candidates in the 2012 elections through independent expenditures such as TV ads.

The FEC decision comes amid a broader erosion of campaign finance regulations in the wake of recent court rulings and with Republicans on the Federal Election Commission and elsewhere pushing for a rollback to give corporations and other wealthy donors stronger sway in financing campaigns.

Colbert had asked the commission for a so-called "media exemption" to allow him to use his show's airtime, staff and other resources for his political action committee without having to publicly disclose them as in-kind contributions from Comedy Central's parent company, Viacom Inc.

Colbert has said those undisclosed contributions could include the use of his show's staff to create TV advertisements about candidates that would air as paid commercials on other shows and networks.

The commission ruled 5-1 that he would have to publicly disclose as in-kind contributions from Viacom any ads produced by the show for Colbert Super PAC that air on other shows or networks. He would also have to disclose administrative costs that his show covers for Colbert Super PAC.

The Colbert ruling eclipsed a lesser-noticed decision by the Federal Election Commission Thursday that could also have a significant impact on the 2012 elections.

The commission said that candidates and party officials may solicit contributions for super PACs, but those contributions could not exceed the $5,000 limit for donations that applies to traditional political action committees.

Some campaign watchdog groups had feared that the commission might permit candidates and party officials to solicit unlimited contributions, opening yet another door to big-ticket donations.

While Colbert delights in lampooning politicians on his Comedy Central show, he raised some serious issues about public disclosure of corporate campaign contributions before the Federal Election Commission.

"Stephen Colbert is a funny man, but he asked a legitimate question and received a serious answer," said Federal Election Commission chair Cynthia Bauerly. "The opinion adopted today does not give him everything he asked for, but it appropriately applies the press exemption consistent with past Commission and court precedent."

Some campaign finance watchdog groups had warned that a favorable ruling for Colbert could spur many more undisclosed contributions to political figures who are TV hosts or commentators and who could opt to create their own super PACs to take advantage of any new loopholes.

The groups cited politicians such Sarah Palin, Mike Huckabee, Newt Gingrich and Rick Santorum who already have traditional political action committees and are either working now, or have worked, as TV hosts or commentators.

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"The Colbert Report" has used satire to shine a light on campaign finance rules following the Citizens United ruling by the Supreme Court that helped pave the way for super PACs. Campaign finance reform advocates complained the ruling gave wealthy donors, particularly companies and unions, considerably more sway in politics.

Super PACs can accept unlimited contributions from corporations, labor unions or individuals, unlike candidates or traditional political action committees. Super PACs cannot contribute directly to candidates, however.

Colbert has said any ads for Colbert Super PAC would not be coordinated with any candidate or party.

[kansas1946]

The FEC decision comes amid a broader erosion of campaign finance regulations in the wake of recent court rulings and with Republicans on the Federal Election Commission and elsewhere pushing for a rollback to give corporations and other wealthy donors stronger sway in financing campaigns.
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LMAO. Poor Republicans never figured out to reap what you sew. They were so nuts about getting any kind of rules abolished that would prevent them from getting as much money as possible without any one having to know from who, that they got their way. Well it cuts both ways and now maybe the Democrats will learn to play as dirty as the Republicans and even things up a bit. Love it.

[retiredgustav]

We need a constitutional amendment that would allow ONLY registered voter to make campaign contributions.

[antoniof123]

They say the ship is sinking.

I say it sunk.

[freeamerica31]

Corporations, Comedy Talk Shows, etc. etc....what's going on in this country? This guy is smart...not only does he not have to disclose every dime he receives, he also can use it for advertisment on his show to make him richer than he already is now. Poor folks you can do the same thing you just need to throw in more bodies to reach the same numbers. Everyone needs to start their own personal PAC committees. A scam waiting for you...just watch what happens...this deregulation of election campaign contributions is like what happened on Wall St to bring the country down...just another political, judicial screw up. Thanks Supreme Court Justices!

[cigar-smoker]

"Capitalism" - May the deepest pockets win!

[omega42]

I would suspect that Mr. Colbert would not want his activities to serve as a vehicle for opening up major loopholes in the campaign finance laws that would allow companies to provide secret money to influence elections," said Fred Wertheimer, president of Democracy 21.
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Uhm, I believe the old 5-4 bunch up in Washington has already done that with citizens united. Might as well quit pretending we have an electoral system that favors the people and let anything go.

[1stlttightwad]

Why not? Obama received hundreds of millions via $199.99 prepaid debit cards. Didn't have to be reported, under $200.00, remember.
Gee, no reporting as to where the money came from. Was it China, Venezuala, Brazil, Russia, the Taliban, Al quaeda, the Bildenbergers,Saudi Arabia,, the Muslim brotherhood? You don't know. Do you. I say that's where it came from..to make a point..since it was unreported....You cannot Prove that it wasn't, now can you. The slippery slope has been greased with unknown money. Who's really in this election besides the candidates and the people of the US.