State lawmakers will consider a bill today that would impose more restrictions on political organizations that often funnel millions of dollars into Colorado campaigns.
The bill, House Bill 1074 by Rep. Morgan Carroll, requires that so-called 527 committees – named after the applicable section of the federal tax code – would have to abide by Colorado reporting deadlines and disclosure rules if they are attempting to influence elections in the state.
Those requirements are stricter than the federal rules governing 527 groups, which are permitted to raise and spend unlimited money.
If it passes, the campaign-reform measure would be the second-toughest in the nation when it comes to dealing with 527 groups, said Paul Ryan, an elections attorney with The Campaign Legal Center in Washington, D.C.
“This bill much more adequately addresses voters’ right to know who is spending and raising money,” said Ryan, who has submitted written testimony supporting the bill to the Colorado House Committee on State, Veterans & Military Affairs meeting today.
Coloradans were among the top five donors nationally to 527s during the last election cycle, according to politicalmoneyline.com. That put the state’s residents in the same league as people in Washington, D.C., New York, Texas and California. Estimates on how much groups raised and spent from those donors range from $20 million to $29 million.
Often, 527 groups are responsible for last- minute political attack ads. Because of later disclosure rules, voters usually don’t know who paid for the ad and how much was spent.
“The public should have an absolute right to know,” said bill sponsor Carroll, an Aurora Democrat. “Large sums of money without transparency or accountability in our state’s elections risk corrupting our elections – the most precious right in a democracy.”
Secretary of State Mike Coffman’s office supports the policy behind the bill but needs to ensure it’s constitutional, said his spokesman, Jonathan Tee.
Ed Ramey, a lawyer who handles campaign-finance matters at Isaacson Rosenbaum P.C., said he didn’t see a problem with Colorado imposing stricter disclosure requirements for 527 groups. The state would only mandate groups disclose information more often and with just a bit more detail, he said.
Currently, 527 groups must only file disclosures with the IRS for those who have contributed at least $200. During off-election years, disclosure is semi-annually. During election years, groups must file quarterly as well as issue pre- election reports.
If passed, the new bill would require these groups to adhere to the state’s rules for political committees. Disclosure would be required for any contribution over $20 and include the occupation and employer for each person who has donated at least $100.
On off-election years, disclosure would be quarterly. In the six months leading up to an election, however, disclosure is monthly. Between the primary and general election, it is every two weeks.
Staff writer Karen Crummy can be reached at 303-954-1594 or kcrummy@denverpost.com.
