Reid given FEC nod for dual fund-raising

Friday, June 13, 2003 | 9:39 a.m.

WASHINGTON -- Clark County Commissioner Rory Reid can raise "soft money" for the Nevada Democratic Party while also raising "hard money" for his father's U.S. Senate re-election bid in 2004, the Federal Election Commission ruled Thursday.

The new federal campaign finance law prohibits the raising of soft money for federal candidates. Soft money is unlimited donations from corporations and unions. Federal candidates -- members of Congress -- can only raise limited-donation "hard money" from individuals and political action committees.

So Rory Reid asked for clarification from the FEC about whether he could be a hard-money fund-raiser for his father's Senate race while also raising soft money for the state party.

The FEC said "yes" in a 5-0 vote. The commission ruled that Rory Reid, former chairman of the state Democratic Party, can "wear multiple hats" without breaking federal law.

The commission's vote was to approve a nine-page opinion that read in part, "If (Rory Reid's) fund-raising is 'exclusively on behalf of the Party' and not on the authority of Senator Reid, Commissioner Reid may raise non-federal funds for the State Party."

One commissioner, Chairwoman Ellen Weintraub, recused herself from the vote because she formerly worked for the Washington-based law firm Perkins Coie, which requested the FEC opinion on behalf of Rory Reid in March.

Rory Reid was unavailable for comment. Sen. Reid declined comment today, Reid spokeswoman Tessa Hafen said.

Several watchdog groups filed objections with the FEC to Rory Reid raising money for both the state and his father. The FEC's "two-hats theory" blurs the line too much, said Don Simon, general counsel for Common Cause. Donors could be confused about whether Rory Reid is raising money for his father or the state party, Simon said today.

"We think this opens up new problems in interpreting the new law by allowing people seen as operatives on behalf of a federal candidate being allowed to raise soft money," Simon said.