Ohio Bait and Switch

HIGHLIGHTS

n Spending limits upheld in VT again!

n Reform well poised in CT

n Clean money attacked in AZ

n AR and MS may rollback reform

n CA Secretary of State forced out

n OR scandal prompts resignation

n Senators take on 527s

 

 


During a rare special session called by Governor Bob Taft at the end of 2004, the Ohio Legislature pushed through a bill that will reduce the ability of regular Ohioans to influence the political process. The law quadrupled contribution limits from $2,500 to $10,000 and opened the door for corporate contributions to political parties for the first time in a century.

The Ohio legislation exemplifies efforts across the nation to frame the problem of money in politics as purely one of disclosure. Once this battle has been won, proponents of big money in politics take advantage of the public’s perception that reform is occurring to raise contribution limits (Ohio and Mississippi) or to open the floodgates for corporate money to pour into the political process (Ohio and perhaps now in Texas).

What happened in Ohio:

Ohio had seen more than its share of campaign finance scandals over the last few years, many involving the highest levels of legislative and party leadership. Political parties used county committees to evade the state’s contribution limits. Voters saw huge amounts of undisclosed spending by third parties, especially for state supreme court races. Special interests used secret party operating accounts to prevent disclosure of how they were influencing Ohio elections. Corporations illegally used their treasury funds on political campaigns. These scandals forced legislators and at least one statewide official to abandon their efforts to seek higher office or leadership positions within the legislature.

In the lead-up to the special session, public discussion focused on disclosure. Proponents marketed the legislation as a sunshine law, whose improved disclosure provisions would solve Ohio’s problems. The logic was to give candidates more money legally so they wouldn’t evade the law. In written testimony submitted to the House State Government Committee by TheRestofUs.org, we stated that this would be akin to giving tax cheats a tax break.

In part due to the expedited nature of the bill, citizen groups and reform organizations were unable to slow down the momentum of the politicos who wanted the bill passed. Governor Bob Taft signed the bill into law on December 30.

The bill did strengthen disclosure in Ohio, but at the price of citizens’ political voice. Wealthy interests now have more power and influence over Ohio elections than ever before. Citizens will have a clearer picture as to

who is purchasing their government, but that may only inspire cynicism and depression as opposed to more democratic elections.

In January, an attorney affiliated with the AFL-CIO began the process of gathering signatures for a ballot initiative to repeal the law, but Secretary of State Ken Blackwell recently invalidated some of the signatures on the initial petition. As of press time for the Reform Reporter, it is unclear whether the effort to repeal the law will move forward, or whether reformers will take the more difficult road of passing an alternative law through the ballot initiative process.


http://governor.ohio.gov/releases/Archive2004/123004campfinance.htm

EDITORIAL

Derek Cressman

Redistricting Mania

From California to Florida, the move is on to redraw congressional districts that were created just two election cycles ago. Voters sense that politicians drew districts to unfairly rig election results and reduce competition. But the latest reform fad of non-partisan redistricting commissions may not accomplish anything.

It all began with Tom DeLay. DeLay noticed that Texas had become a Republican state, voting 59% for George Bush in the 2000 elections. But 57% of the Texas congressional delegation was Democrats. Why? The district lines were drawn to favor incumbent Democrats. Rather than waiting ten years for the next round of redistricting, DeLay hatched a scheme to take over the Texas legislature and have them redraw district lines immediately. The scheme worked. In the 2004 elections Republicans picked up six congressional seats in Texas. Suddenly, the arcane world of electoral representation is on everyone’s mind.

Arnold Schwarzenegger is pushing to create a mid-cycle redistricting commission in California. Like DeLay, Arnold wants to realign representation to better fit his ideology. For Arnold, that means rigging districts to help moderates get elected. Partisans on both sides are up in arms since they’d cut a deal to keep each other’s seats safe in the last round of redistricting. The result is that of California’s 153 congressional and legislative races, not one changed party hands in the last election.

Not to be outdone, Democrats are getting into the game. They are looking at redistricting initiatives in Illinois, New Mexico, and elsewhere.

It’s good that we are paying attention to the backroom deals that carved up voters into districts that determine who goes to Congress. Leaving redistricting to politicians is like letting Budweiser and Miller carve up parts of the country where they each get monopolies, leaving beer drinkers no real choices.

But it is naïve to think that independent redistricting commissions will solve our problems. States that have tried the approach, such as Arizona and Iowa, still wind up with most of their races being lopsided in favor of one party or the other.

The challenge is that beyond competition, we have other values such as maintaining geographic communities and accurately representing diverse political viewpoints. Using our current single-member congressional districts, these values conflict with greater competition. To create competitive districts for the conservative voters of San Diego, California, for example, you would need to carve up San Diego and combine its voters with liberals in Los Angeles. This is exactly what Tom DeLay did to Austin, Texas, resulting in a map that gives Austin no single member of Congress to represent its interest and deprives most its voters of a legislator who accurately represents their political views.

The best solution is to move away from single-member districts that pose the trade-off between competition and representation. Single-member districts are an improvement upon at-large elections, where all the voters of a state elect all of their representatives together. Most states use at-large systems for the Electoral College. It’s a winner-take-all proposition, resulting in zero representation for any minority position. So Democrats in Florida or Republicans in Michigan had no representation in the last Electoral College because the other party won those states.

Single-member districts improve at-large elections by clumping voters into like-minded groups and allowing those groups to elect their own member of Congress. Inevitably, many of these districts are less competitive than if the entire state were lumped together in one at-large election. The downside of better representation is safer seats.

The answer would be a form of virtual districting, where voters can in effect create their own clumps of like-minded people within larger super-districts that elect multiple members of Congress. Voters could do this with systems where they rank candidates in order of their preference or distribute multiple votes as they wish among multiple candidates. These voting systems, already in use in the US and around the world, provide competition and accurately represent political viewpoints in proportion to their strength in the electorate – a concept known as proportional representation.

Multi-member districts featuring proportional representation are a wonky idea, but perhaps one whose time has come. If efforts to move redistricting decisions into non-partisan panels result in those panels looking beyond single-member districts, only then will they have been worth the wrangling we’re about to see over their creation.


State Updates
ALABAMA

A multi-partisan group of representatives introduced a bill in the Alabama House that would prohibit most PAC-to-PAC transfers. House Bill 60 would carve out exceptions for contributions between principal campaign committees or between a PAC and a principal campaign committee. Political parties could also contribute to their local or state committees.
ALASKA


An Anchorage Superior Court judge ruled that a citizen campaign finance initiative does not violate Alaska’s single-subject law and will be allowed to appear on the August 2006 primary ballot. Opponents had claimed the sweeping initiative regulating campaign contributions and lobbyists involved multiple subjects and therefore violated state law. The judge ruled that the single-subject law is broadly defined under state law and that the initiative falls under the single subject of “limiting undue influence on elected officials.”

The initiative would lower the amount candidates can receive from individuals and political parties, lower the amount lawmakers can make as private consultants before having to disclose their earnings to the state, and reduce the amount of time lawmakers can spend lobbying the Legislature before registering with the state.

http://www.juneauempire.com/stories/123104/sta_20041231003.shtml >

In Libertarian Party v. Alaska, the Alaska Supreme Court upheld a state regulation that political parties disclose the sources of so-called “soft-money” contributions. It closes a loophole that allowed political parties to collect unlimited amounts of money from undisclosed sources as long as it wasn’t used to campaign directly for or against a particular candidate.

http://www.state.ak.us/courts/ops/sp-5844.pdf

ARIZONA

The Senate Judiciary Committee voted 5-3 on February 21 to refer SCR 1036 to the full Senate. SCR 1036 leaves intact Arizona’s system of public financing, but would deprive the system of any funding. The bill now goes to the full Senate. If the Senate and House approve it, it will be placed on the 2006 ballot.

 http://azclean.org/documents/2-22-05EVTribune_000.doc

ARKANSAS
The chairman of the Arkansas Democratic Party asked legislators to file legislation that would double Arkansas’s contribution limits for state political races from $1,000 to $2,000. Chairman Ron Hood’s rationale: “The cost of campaigns continues to go up. And right now, candidates have to spend so much time raising money.” The chairman of the state Republican Party agreed with Hood, saying that it was a good idea for Arkansas’s contribution limits for state races to mirror the federal limits on presidential and congressional races. There is no evidence that the increase in federal limits caused candidates to spend less time raising funds, but strong evidence that the increase has accelerated the rise in campaign spending.

http://www.nwanews.com/story.php?paper=adg§ion=News&storyid=105324
CALIFORNIA

Secretary of State Kevin Shelley resigned under pressure from multiple investigations into abusive treatment of his staff, partisan and self-serving use of California’s HAVA funds, and the receipt by his 2002 campaign of more than $200,000 in laundered contributions. Governor Schwarzenegger appointed former state Senator Bruce McPherson to replace Shelley. McPherson’s appointment must now be confirmed by both houses of the Legislature.

http://www.signonsandiego.com/news/state/20050204-1703-ca-shelleyinvestigation.html

Governor Arnold Schwarzenegger announced a plan to take his agenda to the people via the ballot if the Legislature did not meet his demands on several issues. Never one to be afraid of showing a little muscle, Schwarzenegger said he planned to raise $50 million for his 2005 ballot efforts and another $50 million for his 2006 re-election plan.

At the same time a group of big business folks with strong ties to the Governor started up a ballot committee called Citizens to Save California (CSC) to push the Governor’s agenda. The Governor and CSC board members began holding a series of luncheons around the state to promote the Guv’s plan and to raise money for CSC in contributions of $100,000 or more. The problem? Under a recent regulation passed by the Fair Political Practices Commission (FPPC), candidate-controlled ballot committees are subject to the same limits as the candidates who control them. For gubernatorial candidates like Schwarzenegger, that limit is $22,300.

Governor Schwarzenegger’s effective control of the committee in conjunction with the six-figure donations the group has been soliciting means that Schwarzenegger and CSC are violating California law. TheRestofUs.org filed a complaint with the FPPC requesting that they investigate the Governor and his committee and put a stop to any illegal fundraising.

Schwarzenegger and CSC have since filed a lawsuit challenging the constitutionality of the FPPC reg and its consistency with California law. This case may present a golden opportunity down the road to get the courts to reconsider Citizens Against Rent Control v. Berkeley, one of several progeny of the convoluted logic of Buckley v. Valeo.

http://www.sacbee.com/content/politics/ca/story/12274438p-13138481c.html

COLORADO
James Bopp, the Indiana attorney who has made a career out of challenging campaign finance laws, has filed suit against Colorado’s Amendment 27. A trial is scheduled to begin in the second week of April.

Colorado voters approved Amendment 27 in 2002 by a two-to-one margin. The law sets contribution limits of $200 for legislative races and $500 for statewide races and establishes small donor committees that can accept no more than $50. Candidates for governor in 2006 are already running and collecting contributions under the new limits. Unlike previous races where candidates have proven their viability through raising unlimited sums, this time they will achieve frontrunner status by demonstrating broad support from small donors across the state.

CONNECTICUT
Governor Jodi Rell proposed a package to overhaul Connecticut’s campaign finance laws. Her plan includes provisions to:

n lower the amount individuals can give to candidates, dropping the limit on donations to candidates for governor from $2,500 to $1,250, for state Senate from $500 to $250, and for state Representative from $250 to $125;

n prohibit a person, legislative caucus or organization from having more than one PAC; and

n create a $100 state income tax deduction for contributions to campaigns that agree to voluntary spending limits.

Reform organizations are pushing the legislature to pass the Governor’s plan along with a provision to provide public financing for gubernatorial campaigns.


FLORIDA

Lawton “Bud” Chiles III is planning on running for Governor of Florida in 2006. “The primary reason I’m running ... is because I feel like people’s access to government is limited by money, power and politics,” Chiles said. “The average Joe citizen is pretty much disenfranchised from the system.”

Chiles III is considering limiting the amount of money he accepts from any contributor to a “fairly low threshold” to encourage more people to participate in his campaign. These views jibe with those of his father, Lawton “Bud” Jr., a three-time Senator and two-time Governor of Florida. In 1976, Chiles Jr. put a $10 limit on contributions to his re-election campaign to the U.S. Senate. In 1982, he took no more than $100 from contributors in winning his third term as Senator, a self-imposed limit he used again in winning the 1990 and 1994 gubernatorial races over opponents with significantly more campaign cash than he had.

UPDATE: Chiles dropped out of the race on March 2 because he has not resided in Florida for the last 7 years, as required by the Florida constitution to run for Governor.

GEORGIA

Governor Sonny Perdue is pushing the Legislature to adopt an ethics bill. The bill currently focuses on lobbying, including a waiting period for lawmakers who want to become lobbyists after leaving office. The bill also requires lobbyists to report how much they are paid. Some legislators have introduced a rival bill that would repeal Georgia’s increase in contribution limits that passed in 2000 and add a limit for candidate-to-candidate contributions to the governor’s bill, although its consideration in the House is unlikely.

http://www.ajc.com/news/content/metro/legis05/0205/13leglobby.html

HAWAII

More than 60 members of Hawaii Clean Elections, U.S. PIRG, Common Cause, Public Campaign and AARP met in December to plan their strategy to win passage of a clean elections bill this year. House Bill 1713 providing public financing for legislative and statewide offices moved through the House Judiciary Committee on February 10 and a companion bill has cleared the Senate Judiciary Committee. In 2004, both the Senate and House passed versions of full public financing, but legislative leaders killed the proposal in conference committee.

ILLINOIS

The race for the 5th District seat on the Illinois Supreme Court shattered national records for campaign spending as business interests and trial lawyers spent millions on candidates Lloyd Karmeier and Gordon Maag. Illinois has no campaign contribution limits, but the state does require that any political donor of more than $150 be disclosed. Yet the source of about $540,000 spent on behalf of the two candidates in the final days of their campaign remains a mystery.

Two Political Action Committees (PACs), each of which supported one of the candidates, took in the money from two nonprofit corporations. Unlike PACs, nonprofits are not required to disclose their contributors.

The catch? The two nonprofits were created by the two PACs, seemingly only to avoid the state’s disclosure requirements. Each PAC’s nonprofit even shared its name and address. So, wealthy interests had a huge influence on who sits on the Illinois Supreme Court without the voters of Illinois being able to factor that information into their evaluation of the candidates or the ads.

http://www.suntimes.com/output/elect/31spend.html

INDIANA

A hand recount of ballots cast using optical scanning technology corrected an erroneous tally by a Fidlar Election Company system, which had recorded votes for the Democratic Party ticket as votes for the Libertarian Party ticket. The recount pushed Democrat Carroll Lanning from fifth to third in the three-seat commissioners race, knocking out the third place candidate.

Fidlar said no programming problems were found in its Accuvote 2000 ES system, but said it would examine its programming elsewhere in the state and in Wisconsin and Michigan, which, like Indiana, have straight-party voting. Fidlar national sales manager Bill Barrett called the glitch an “isolated incident” and said no other election results were in question.

http://www.qctimes.com/internal.php?story_id=1039447&t=Local+News&c=2,1039447

IOWA

Gov. Tom Vilsack proposed that Iowa bar candidates from using money on statewide races that they raised while they were federal officials. Vilsack said he plans to ask the Legislature to approve a law that bars the transfer of money from a candidate’s federal campaign fund to their state campaign.

The 2002 Bipartisan Campaign Reform Act (BCRA, also known as McCain-Feingold) made it illegal for federal elected officials to transfer campaign donations from their federal accounts to an account for a state race. Congress changed the law in 2004 by slipping a provision into one of its omnibus spending bills.

 http://desmoinesregister.com/apps/pbcs.dll/article?AID
=/20041216/NEWS09/412160399/1001/NEWS&template=printart

KANSAS

The Kansas Legislature plans to deal with a series of proposals recently released by the Kansas Governmental Ethics Commission to improve the state’s disclosure rules for campaign spending. The proposals, moved by one legislator to be drawn up as legislation, include requiring:

n political action and party committees to disclose which candidates they supported or opposed and the amount spent doing so;

n the reporting within 24 hours of contributions greater than $50 in the last eleven days before an election;

n pre-recorded telephone campaign messages to identify who is paying for or sponsoring the communication; and

n disclosure of contributions of $100 or more for so-called issue ads that identify a candidate.

 http://www.ljworld.com/section/stateregional/story/188973

KENTUCKY
The Kentucky Registry of Election Finance has formed a task force to study campaign finance laws. Here’s the projected lineup for the taskforce: representatives from the House and Senate, the judiciary, the governor’s office, the attorney general’s office, the Democratic and Republican parties, county clerks, lobbyists and campaign treasurers. In other words, all the various powerbrokers and pockets of influence in Lexington, the state capitol.

Kentucky Secretary of State Trey Grayson, one of the taskforce’s insiders, has already indicated that he thinks one necessary “reform” is to move away from public financing, a program which levels the playing field for candidates to compete with big money’s little helpers. Even without Grayson’s comments, the make-up of the task force makes it unlikely that the people of Kentucky will be to get a word in edgewise above the roar of big money.

On Feb. 3, State Senator Damon Thayer introduced legislation, SB 112, calling for the elimination of public financing of political campaigns. State Senator Scorsone tried to attach an amendment which would have required candidates for Governor and Lieutenant Governor to participate in a public forum or debate in each congressional district within the state prior to each primary, runoff, and general election. Scorsone’s amendment was defeated; SB 112 passed 34-2 on February 16. It now goes to the House.

http://www.messenger-inquirer.com/news/kentucky/8040280.htm
MAINE

Through the work of members of ReclaimDemocracy.org, legislators introduced a bill that would clarify that a corporation is not the same thing as a person. LR 2050 would make it possible to ban corporate contributions to ballot campaigns. An 1886 Supreme Court ruling, Santa Clara County v. Southern Pacific Railroad, is widely read to have given corporations that same rights as individuals even though the decision never actually said that.

MASSACHUSETTS

Representatives Frank Smizik and Ellen Story teamed up with reform groups such as Common Cause, FairVote, Commonwealth Coalition, MassVOTE, and MassIRV to introduce an Instant Runoff Voting bill.

MINNESOTA

In his state of the state address, new Governor Tim Pawlenty expressed support for a “carefully drawn and limited” initiative and referendum process in Minnesota. Pawlenty has been a supporter of I&R for some years, although even with his support as Majority Leader and now Governor, Minnesotans still lack this form of direct democracy.

MISSISSIPPI

Less than one year after Governor Haley Barbour vetoed a bill passed by the Legislature, which would have improved the disclosure of political action committees, Barbour and his legislative allies are at it again. This time they are using the ol’ bait-and-switch. First they touted a disclosure law as necessary to let the sun shine on campaign finances, then they threw in higher contribution limits for corporations (doubled to $2,000 in this case), then they took out the disclosure provisions. See our cover story on Ohio for an example of similar cynical tactics.

http://www.clarionledger.com/apps/pbcs.dll/article?AID
=/20050223/NEWS010504/502230346/1002

MONTANA

The race for the House District 12 seat demonstrated why every vote truly counts. Last Reform Reporter, we reported that Rick Jore led Jane Windham by one vote and that the election looked like it would boil down to the results of the provisional ballots. After the provisional ballots were counted, the race was tied. A recount appeared inevitable until the Montana Supreme Court ruled against some of the provisional ballots cast for Jore, resulting in a victory for Windham. Windham’s victory resulted in a tie between the parties in the House, allowing the newly-elected Governor Schweitzer to appoint the Speaker, which tilted the balance of power to Windham’s party.

There is some good momentum behind a bill to provide public financing for judicial elections in Montana, based upon a successful program in North Carolina.

http://www.helenair.com/articles/2004/12/28/montana_top/00windhamwins.txt

NEBRASKA
The Nebraska Legislature discussed a proposal by a state Senator Chris Beutler to tighten the state’s Campaign Finance Limitation Act, which utilizes a novel approach to public financing. The Act provides a system of voluntary public financing for candidates who agree to abide by a spending limit, who raise 25% of that limit from private donors, and who face an opponent who has opted out of public financing and plans to outspend the limit. For the candidates who meet these qualifications, there are public funds available to make up the difference between the spending limit and their opponent’s estimated spending. In other words, there is not much incentive to opt out of the spending limits, because your opponent will get a dollar for every dollar you raise over the spending limit if you do.

Despite this, a Board of Regents candidate opted out of the public financing in his successful 2004 bid for the Board. However, because he lowballed his expenditures, his opponent, who had agreed to the spending limits, was shortchanged of at least $15,000 in public funds. Beutler’s proposal would provide the public funds as soon as the opting-out candidate reached the cap.

 http://www.journalstar.com/articles/2005/01/28/legislature/doc41f97126ab8ae856293592.txt

NEVADA

The Nevada Assembly impeached State Controller Kathy Augustine in a unanimous vote, setting the stage for a trial in the Nevada Senate on charges that she illegally used her state office staff and equipment for her 2002 re-election campaign. The three impeachment articles cover the same acts for which the state ethics commission fined Augustine $15,000 in September, after she stipulated to three willful violations of the state’s ethics statutes. Augustine has said the violations were campaign-related and had nothing to do with the performance of her job. The Nevada Senate eventually convicted State Controller Kathy Augustine on one of the three impeachment counts against her. Instead of removing Augustine from office, the Senate voted to censure her. Augustine claimed vindication.

http://www.rgj.com/news/stories/html/2004/11/11/85136.php?sps=rgj.com
&sch=LocalNews&sp1=rgj&sp2=News&sp3=Local+News&sp5=RGJ.com
&sp6=news&sp7=local_news


NEW HAMPSHIRE
Secretary of State William Gardner testified before a Senate Internal Affairs panel in favor of maintaining New Hampshire’s Election Day registration. The state’s law that voters must register in person with local officials addresses the concerns about fraud expressed in more stringent laws in other states and at the federal level. In response to Gardner’s testimony, the bill’s proponent agreed that it would be better to keep New Hampshire’s existing rules, and the bill was killed by the committee.

Opponents of Election Day registration often use the fraud canard, but Gardner testified that the worst case he had seen was a seventeen year old trying to register in his father’s name, and that the state’s local elections officials did a great job of preventing fraud.

Also, a political operative was sentenced to five months for a telephone-jamming scheme he ran against his political opponents on Election Day in 2002. The operative worked for James Tobin, the northeast political director of a national party committee working to elect Republican Senators. The former Executive Director of the New Hampshire Republican Party has also pleaded guilty in the case. Tobin has pleaded not guilty.

 http://www.signonsandiego.com/news/politics/20050208-0830-phonejamming.html

NEW JERSEY
With the support of acting Governor Richard Codey, the legislature passed a law that freezes cost-of-living increases to legislative, state and county political committees, but allows an increase in contribution limits for individual candidates’ committees. “We cannot talk about government reform if we’re not doing everything possible to eliminate the influence of money,” Codey said before signing the bill. “There is already too much money in politics.”
http://www.philly.com/mld/inquirer/news/local/states/new_jersey/10428293.htm
NEW MEXICO

The Supreme Court declined to revisit the constitutionality of campaign spending limits in the case Homans v. Albuquerque, letting stand a lower court’s decision that the spending limits which the city’s voters had approved in 1974 were unconstitutional. Albuquerque, assisted by the National Voting Rights Institute, argued that the Court should reconsider its ill-reasoned decision Buckley v. Valeo, which shortsightedly equated the rights bestowed upon all Americans by the First Amendment with wealthy interests’ ability to pour unlimited amounts of money into elections. TheRestofUs.org submitted an amicus brief that urged the Court to consider the Albuquerque case.

http://fortherestofus.blogspot.com/2004/04/court-demands-more-proof-that-spending.html

NEW YORK

Responding to a 2003 study by the Center for Governmental Studies, the New York City Council passed three laws, including a requirement that all city council candidates, not just candidates who accept public financing, both adhere to contribution limits and submit campaign disclosure reports to the City Campaign Finance Board. Prior to the CGS report, the City Council had deferred to the state legislature.

Another bill increased the matching funds that candidates who accept voluntary spending limits but face opponents who blow through the limits using personal wealth. Previously small contributions to candidates who accept the limits were matched on a five to one basis when running against a self-financed candidate but the Council bumped that to six to one.

New York City Mayor Mike Bloomberg, who spent $73 million of his own fortune on his successful 2001 bid for mayor, vetoed these improvements, but the Council overrode these vetoes.

http://www.nydailynews.com/news/politics/story/256073p-219279c.html

NORTH CAROLINA

A group of legislators and citizen groups, including North Carolina PIRG, proposed legislation that would require all voting machines in North Carolina to produce a paper copy of ballots so voters can see and verify them. The problems with voting systems that don’t provide hard copies of votes were made painfully evident to North Carolinans in the 2004 elections when a computer voting system malfunction led to the erasing of more than 4,400 votes in Carteret County. The race for state Agricultural Commission, for which the votes were cast, was eventually decided in February.

http://rdu.news14.com/content/headlines/?ArID=64705&SecID=2

OREGON

State Representative Dan Doyle resigned his office amid allegations that he illegally diverted more than $60,000 in campaign money to personal use and submitted false financial reports about his November re-election race. The Doyle case may provide some impetus for a campaign finance reform effort that is getting underway in the state.

http://seattletimes.nwsource.com/html/localnews/2002166721_resign01m.html
PENNSYLVANIA

Bills to restore a lobbyist disclosure law similar to one struck down by the state Supreme Court in August 2002 went nowhere in the Legislature. The bills would require lobbyists and their clients to publicly report how much money they spend trying to influence public policy. In 2001, the last full year that the old law was in effect, the state’s 800 registered lobbyists reported spending more than $50 million to influence legislation. Since the Supreme Court ruling, there is no way of determining how much lobbyists or their clients are spending, although the state Senate does have its own reporting program.

RHODE ISLAND

The Rhode Island ACLU challenged the constitutionality of the state’s contribution limits for ballot initiatives and its prohibition on corporate contributions for ballot questions.Although precedent exists for the ACLU’s position that these provisions of Rhode Island law are unconstitutional, the ACLU’s motivation in filing seems misguided given the organization’s usual efforts to defend the civil rights of Americans. The group’s official position is that any contribution limit in any political race is wrong on the grounds that it interferes with First Amendment rights.What the ACLU ignores is what happens to the ability of regular citizens to have some voice in the political process when rich interests are able to pour unlimited money into campaigns. Without contribution limits, one wealthy individual or corporation can use their deep pockets to drown out the voices of thousands of American citizens who can’t afford to give much more than $100, if that.

http://www.projo.com/extra/election/content/projo_20041119_elect19.343ff6.html
TEXAS

A Democrat and a Republican introduced a bill that would prevent corporate and union money from being used to fund electioneering ads in the 60 days prior to a general election. The bill also clarifies the prohibition against using corporate contributions to fund political activity, including political consulting fees, telephone banks and political fundraising. Corporate money could only be used for specific administrative expenses, such as office space, computers and telephones.

http://www.dentonrc.com/sharedcontent/APStories/stories/D88D6INO0.html
UTAH
Five members of the Salt Lake County Council sent a letter to Acting County Mayor Alan Dayton Tuesday urging him to include the publicly funded campaign idea in an ethics reform package he is developing. The members’ proposal would allow private funding of primary campaigns up to a certain amount and institute public financing of general election campaigns. Although he hasn’t responded to the public financing idea, Mayor Dayton has expressed support for contribution limits in the past, although those limits are so high - $10,000 per election reporting period per person per countywide candidate - as to be nearly pointless.

http://deseretnews.com/dn/view/0,1249,595111760,00.html
VERMONT

The Second Circuit decided en banc (all thirteen of the circuit’s appellate judges) to let stand Landell v. Sorrell, an August 2004 decision by a three-judge panel of the Second Circuit that upheld Vermont’s spending limits for state government races. The case will now either proceed on appeal to the U.S. Supreme Court or return to the district court judge to ensure that Vermont’s law is narrowly tailored to meet its stated goals of both fighting corruption and the appearance of corruption and reducing the massive amounts of time candidates have to spend raising funds for their candidacy.

The U.S. Supreme Court refused to hear Albuquerque’s defense of its spending limits last fall. Because the Second Circuit differed in its reasoning from the decaying Supreme Court precedent set in the 1976 case Buckley v. Valeo, the Landell case has a decent shot at being taken up the Court if and when it gets there.

http://fortherestofus.blogspot.com/2005/02/victory-full-second-circuit-upholds.html

WASHINGTON

Secretary of State Sam Reed faced a recall petition from the members of his own party after administering a recount of the tight race for governor between Christine Gregoire and Dino Rossi in a nonpartisan fashion. A judge threw the petition out as not stating sufficient reasons for recall. The examples suggests a greater need to insulate election officials from partisan pressure.

http://www.komotv.com/stories/35267.htm

WEST VIRGINIA

West Virginia legislators are working on a campaign finance reform bill designed in part to check the influence of unregulated outside groups on the state’s elections.

In the last election, one lone West Virginia energy tycoon gave $2.4 million to a group to help defeat state Supreme Court justice Warren McGraw. In the same race, plaintiff lawyers contributed nearly $1.9 million to support McGraw.

The proposed bill limits the amount that a person could give to a group trying to influence election in the weeks running up to that election to $2,000, still way beyond the reach of most folks in West Virginia.The bill also would require any independent group spending more than $10,000 to influence elections to report income and expenditures on a regular basis to the Secretary of State’s office, and sets up a pilot program for public financing for five legislative races.

WISCONSIN
Fed up with an elections process driven by money-hungry special interests, more than 1,000 Wisconsinites came together for the first People’s Legislature. Folks from across the political spectrum assembled just a few miles from the state capitol in Madison to demonstrate their interest in improving democracy in the state and to brainstorm about ways to do it. Organized by the Wisconsin Democracy Campaign, FightingBob.com, and the Center for Democratic Action, the event sought to attract more attendees than the number of official lobbyists in the state (803). With that mission accomplished, the participants and organizers next decided upon an agenda that includes campaign finance reform, combining the state elections and ethics agencies into a single politically independent entity, and reform of the redistricting process.

http://www.blogger.com/post-edit.g?blogID=5890107&postID=110496952251230695
WYOMING

The Wyoming campaign finance disclosure law that bar violators from taking office may be weakened. Candidates for public office were required to disclose their campaign receipts seven days before the primary or general election, followed by a second deadline after the election. House Bill 81 would remove the law’s two penalties: a misdemeanor charge and disqualification for office. Several candidates missed the deadlines in the last election.

 


AT THE FEDERAL LEVEL

Senators McCain, Feingold, Schumer and Lott Take on 527s With New Legislation

Frustrated by a Federal Elections Commission (FEC) that refused to apply fundraising rules to 527 organizations during the 2004 elections and previously, Senators John McCain and Russ Feingold have introduced a bill that would classify almost all 527s as Political Action Committees (PACs), and therefore subject them to the $5,000 limit on donations to PACs.

Background
Prior to the passage of the Bipartisan Campaign Reform Act of 2002 (BCRA, also known as McCain-Feingold), the main channel for big money to flow into the political process at the national level was soft, or unlimited, money that rich people, corporations, and unions gave to the political parties. The parties could use this money for anything and everything except “express advocacy” in favor of candidates.

Under FEC interpretations of a footnote in the 1976 Supreme Court case Buckley v. Valeo, “express advocacy” was limited to using specific words like “support” or “oppose”. In the 1990’s, President Clinton and his advisor Dick Morris saw a way around the prohibition against express advocacy with soft money – “issue ads”, which were often little more than thinly-veiled ads attacking or supporting a candidate. Soon both parties were using soft money – which often came in donations in the hundreds of thousands of dollars from rich individuals and groups alike – to run “issue ads”.

In 2002, the BCRA limited donations to the parties to $25,000, shutting off the flow of the unlimited soft money. The Act also doubled the amount that individuals can give to candidates from $1,000 to $2,000 and raised the amount that an individual could give to all federal candidates over a two year election cycle (the “aggregate limit”) to $95,000 from $50,000.

As 2003 came to a close, some people and groups opposed to the re-election of President Bush began to form organizations under Section 527 of the IRS Code. Billionaire George Soros and multi-millionaires Peter Lewis and Steven Bing gave over $10 million each to start these 527 organizations, or 527s as they came to be called. The explicit purpose of these 527s was to defeat Bush.

That didn’t matter to the FEC, who ruled at several points throughout the year that the 527s were not subject to the $5,000 limit for PACs, even though the 527s were obviously trying to influence the outcome of federal elections. Bush supporters soon took up the game by starting up their own 527s like the Chamber of Commerce’s November Fund and the Progress for America Voter Fund, which raised tens of millions of dollars from folks like Alex Spanos ($5,000,000) and Roland and Dawn Arnall ($5,000,000).

When the smoke had cleared, 527s had spent some $246 million on the presidential election out of a total of $534 million raised by all 527s in the 2003-2004 cycle, according to the Center for Public Integrity. The Washington Post reported that 80% of the funds raised by 527s came from contributors who gave at least $250,000 each.

The New Legislation
McCain and Feingold’s new bill addresses the 527 loophole. It automatically converts every 527 into a federal PAC – and thus subject to the $5,000 limit – unless the 527 meets one of several exceptions. The exceptions cover those 527s whose annual receipts are less than $25,000 or whose activity relates exclusively to state or local elections, candidates, constitutional amendments, or ballot initiatives.

Thus, any sizable 527 group that spends more than $1,000 to “promote, support, attack, or oppose” any federal candidate within the year before an election is defined as a PAC. This is true even for those 527s that engage exclusively in voter registration, voter identification, or get-out-the-vote activities if those efforts affect federal candidates. However, federal PACs are allowed to have soft-money accounts that are used for voter registration and mobilization. The new McCain-Feingold bill would put a limit of $25,000 on those funds.

Groups are already attacking this bill from both sides as too restrictive or too permissive. Certainly, even the $5,000 limit it would apply to electioneering efforts is well beyond what most of us can afford. But on the other hand, it’s a lot closer than the millions that fat cats were throwing around in the last election.

 http://www.bloomberg.com/apps/news?pid=10000103&sid=aKjEh9ivWw28&refer=us

Election Reform
Members of Congress have introduced a number of bills to address shortcomings in our system of elections.

Senator Ensign introduced a bill which would mandate voter-verified paper trails for all electronic ballots. If any discrepancy exists between the electronic record and the paper copy, the voter-verified paper copy trumps.

Senators John Kerry, Hillary Clinton, and Barbara Boxer have introduced a more expansive bill. Among its provisions, the bill:

n requires recounts in two percent of all polling places or precincts in addition to voter-verified paper trails;
n restricts the partisan political activity of voting equipment makers and state elections officials;
nrequires Election Day voter registration, makes Election Day a national holiday, and requires states to allow early voting; and
nrequires the Federal Election Assistance Commission to set standards to provide uniform access to voting machines.

The bill was introduced in the House by Representative Stephanie Tubbs Jones.

Senators Mitch McConnell and Kit Bond introduced a bill that focuses primarily on voter fraud. The bill requires a government-issued i.d. to vote and starts a pilot program in which voters get a finger dipped in indelible ink to ensure that they don’t flit from precinct to precinct casting votes like Johnny Appleseed scattered seed. The ink idea is an intriguing idea that has been used in other countries, although it’s not clear that fraud has been a real problem recently in the U.S.

Any election reform should consider four areas: accuracy, auditablity, accessibility, and adaptability to improved voting systems like ranked voting and cumulative voting. The voting machine best suited to accomplish these four important goals is the touchscreen with voter-verified paper trails. It allows: voters to ensure that they cast and the machine recorded their vote correctly; auditors to use the credible voter-verified hard copy in doing recounts; people with disabilities or whose primary language isn’t English equal access to voting; and is easily transitioned to accommodate ranked and cumulative voting.

Making Election Day a holiday is also a great idea. Most of us have had days at work where we couldn’t afford more than a twenty minute lunch, if that even. Is Election Day necessarily any different? Also, we have holidays for folks like Washington, Lincoln, and King and for our fallen soldiers and veterans because of what they did or sacrificed for democracy. It makes sense to respect their achievements and sacrifices by devoting a day to democracy.

 http://www.contracostatimes.com/mld/cctimes/news/politics/10932532.htm

DeLay’s Ethics Enforcement

In 2004, the House Ethics Committee reprimanded House Minority Leader Tom DeLay on three separate occasions for actions “beyond the bounds of acceptable conduct”. One month into 2005, DeLay and his allies forced the chairman of the Ethics Committee, Congressman Joel Hefley, from the committee.

The first reprimand stemmed from charges that DeLay, the consummate powerbroker, promised retiring Representative Nick Smith that he would support the congressional candidacy of Rep. Smith’s son if Rep. Smith voted for the Medicare prescription drug bill. DeLay’s fundraising prowess and ability to direct national dollars to candidates would make such an endorsement extremely valuable. Rep. Smith also reported that DeLay threatened to actively oppose Smith’s son if Smith didn’t vote the right way.

The second reprimand dealt with Westar Energy. Executives from the company wrote in internal memos that they contributed some $56,500 to DeLay- controlled committees because DeLay had told them it would get them a seat at the table in energy discussions. At the time of a House-Senate conference on energy issues, DeLay participated in a Westar-sponsored golf tournament to raise money for his committees.

The third reprimand related to the now-notorious DeLay scheme to alter the balance of power in the Texas legislature and Congress. When Texas legislators left the state to avoid providing the requisite number of legislators to pass the redistricting plan, DeLay pressured the Federal Aviation Administration into tracking the movements of the plane.

This attention and the Texas TRMPAC case led to DeLay’s party pushing through a change in the House Ethics rules. The change allowed an indicted leader to retain his post while under indictment. After public outcry, Delay thought better of the move. Thanks to lobbying from Congressman DeLay – the guy can be very persuasive – and public pressure, the House voted to restore the ban soon after the change. However, it is unclear if the new House Ethics Committee will be vigilant about enforcing any ethics violations.

On February 28, a civil trial began against DeLay’s allies in Texas for using corporate money to influence state elections. DeLay has not been charged, but the trial could find that his ally Tom Craddick was elected to the Speaker of the Texas House with the help of illegal contributions. Craddick then used his post to redraw Texas congressional districts to help DeLay solidify his party’s majority in Congress.

http://www.boston.com/news/nation/washington/
articles/2004/10/10/delay_ethics_rebuke_steps_up_pressure_on_house_hammer/

Big Money Flows into Ohio Elections

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Citizens for a Strong Ohio (CSO), a committee affiliated with the Ohio Chamber of Commerce, spent $4.2 million in 2000 to attack judicial candidate Alice Robie Resnick, depicting her as a shill for labor unions who made rulings based on campaign contributions. CSO refused to reveal its financial backers, stating that its ads were not designed to influence any election.

On January 28, 2005, after losing its case with the Ohio Elections Commission and under the threat of a $25,000/day fine, CSO revealed its contributors. Some 400 corporations and individuals gave them money in 2000.

 

The Ohio legislature increased disclosure requirements for groups like CSO, but it did nothing to prevent corporations from funding attack ads like this in the future. For the first time in a century the legislature permitted corporate contributions to political parties.

The new Ohio law also quadrupled the limits on contributions to candidates. A look at the top two individual contributors to candidates in the 2003-4 election cycle illustrates the effect of the four-fold increase in contribution limits:

n David L. Brennan, a developer and the single largest individual contributor to candidates, gave $125,000 to 48 candidates. With the help of Mr. Brennan’s riches, only four of these candidates lost. (Seven of the candidates did not actually run.) Under the new law, Brennan could give the same 48 candidates $860,000 for the next election.

n Leslie Wexner, chairman of The Limited and the second biggest individual contributor to candidates, gave $109,500 to 36 candidates in the 2003-4 cycle. This support helped all but one of these candidates win the races in which they entered. Under the higher limits, Wexner could give these candidates $680,000.

Ohio’s contribution limit of $2,500 per candidate was already way more than most Ohioans could afford, but it did provide some check on the flow of big money into Ohio’s elections. A comparison of the total contributions to candidates in Ohio, with its $2,500 limit on individual contributions, with the state races in Illinois and Pennsylvania, which have similar populations but no such limits, reveals what may happen under Ohio’s quadrupled limits.

 http://toledoblade.com/apps/pbcs.dll/article?AID=/20050129/NEWS09/501290367

Top Contributors to Citizens for a Strong Ohio


• Ohio Chamber of Commerce $200,000
• American Insurance Association $160,000
• AK Steel Corp. $100,000
• Ohio Farmers Insurance Co. $100,000
• Nationwide Mutual Insurance Co. $100,000
• State Farm Mutual Insurance Co. $100,000
• WestAd Inc. $100,000
• Honda of America $100,000
• Procter & Gamble $100,000
• Fifth Third Bank $100,000
• MBNA $100,000


Source: Citizens for a Strong Ohio

The Back Page:

Asking Arnold to Play by the Rules
On February 7, Derek Cressman of TheRestofUs.org filed a complaint with the California Fair Political Practices Commission asking them to investigate Arnold Schwarzenegger’s illegal fundraising for ballot question campaigns.

California law prohibits candidates from raising unlimited funds for ballot committees that they control. Schwarzenegger is flaunting this law by raising sums of more than $100,000 for a ballot committee that he legally controls with his allies and consultants.

A petition asking Arnold to comply with the law is available on our website.

http://www.therestofus.org/arnoldplaybytherules/main.htm