This Week In Local Dark Money News

When it comes to dark money — money spent trying to influence voters by groups that do not disclose their donors — the focus is often on the federal level. But a considerable amount of dark money is also going to state and local elections. Our weekly roundup looks at dark money spending at the local, state and federal levels.

The donors behind a nearly $2 million contribution to Missouri’s Republican gubernatorial candidate Eric Greitens are still unknown, according to U.S. News and World Report. A super PAC known as SEALs for Truth gave the money to Greitens’ campaign during the primary season, but after June 30th, which meant the source of the donation would not have to be reported until October 15. Last week, however, SEALs reported to the Federal Election Commission that the money came from an organization known as American Policy Coalition, Inc. There is very little publicly available information about either group. The FEC filing lists Washington, D.C. post office boxes as the addresses for the groups.

The top dark money spender this cycle, the U.S. Chamber of Commerce, is working to defeat one of its former employees, Evan Bayh, in a hotly contested U.S. Senate race, The New York Times reports. The Indiana Democrat had worked for the Chamber from 2011, when he first left the Senate, until earlier this year. Republicans have used Bayh’s job as evidence that he is out of touch with the voters of his home state. And the Chamber has paid for ads attacking Bayh for his support of the Affordable Care Act. While Democratic leaders accuse the Chamber of playing partisan politics, the group says Bayh’s voting record did not qualify him for its endorsement.

New York’s Attorney General Eric Schneiderman is accusing a “dark money empire” — including Americans for Prosperity, the Heritage Foundation and the Competitive Enterprise Institute — of running a campaign to try to discredit an investigation into claims that Exxon deliberately misled investors about the effects of climate change, Politico reports. Schneiderman and Massachusetts Attorney General Maura Healey are looking into whether the oil giant committed fraud. Exxon says the two Democrats’ investigation is politically motivated and aimed at limiting the company’s right to free expression. Schneiderman, who has argued repeatedly that the First Amendment doesn’t cover fraud, claims he has been attacked in “60 or 70 op-ed columns or editorials” since the investigation was announced. He said, “It’s like they pulled a lever on the dark money machine.”

An investigation by MLive and the Michigan Campaign Finance Network found that a majority of nonprofit and administrative accounts linked to sitting state lawmakers have received donations from corporations or special interest groups, including those with business before the legislature. Although state law prohibits politicians from accepting money directly from companies, these accounts are legal because they don’t directly fund campaign work. In general, the nonprofits don’t have to disclose their donors; the administrative accounts are required to do so only if they have raised over $25,000. As part of their investigation, MLive and MCFN said they “examined hundreds of public filings with the IRS and self-disclosures on political giving made available by companies, as well as contacted fund administrators to determine their connections to state lawmakers.”

Groups from outside South Dakota are pouring hundreds of thousands of dollars into a ballot measure race that could reshape the state’s campaign finance laws, the Center for Public Integrity reports. Measure 22 would create a mechanism for providing some public funding for elections, establish an independent ethics commission to oversee state lawmakers, limit campaign contributions, and increase donor disclosure requirements. Two 501(c)(4) groups are playing a prominent role in the race. Represent.Us, a nonpartisan pro-transparency group based in Massachusetts, is running the campaign for the measure. A Virginia-based organization, Americans for Prosperity, which was founded by billionaires Charles and David Koch, is leading the fight against the initiative.

A complaint filed earlier this month with Montana’s Commissioner of Political Practices has revealed tensions between two outside spending groups — and their leaders — involved in a state Supreme Court election, The Billings Gazette reports. The head of one of the groups, John Heenan, also serves as legal counsel for the Commissioner, without compensation, according to the Gazette. Heenan’s organization, Montanans for Experienced Judges, supports Judge Dirk Sandefur for the state’s highest court. Jake Eaton, a Republican political operative who filed the complaint, said that Heenan’s group failed to disclose that it gets nearly all of its money from attorneys. Eaton’s group, “Set Em Free Sandefur,” has attacked the judge for being soft on criminals. The Gazette reported that in response to the complaint, Heenan for a time on Wednesday changed the name of his organization to “Lawyers and Montanans for Experienced Judges,” until ten new donors who were not lawyers contributed money, allowing him to use the group’s original name again.

This Week In Local Dark Money News

When it comes to dark money — money spent trying to influence voters by groups that do not disclose their donors — the focus is often on the federal level. But a considerable amount of dark money is also going to state and local elections. Our weekly roundup looks at dark money spending at the state and federal levels.

Americans for Prosperity (AFP), a dark money group founded by billionaire David Koch, has launched a campaign against a South Dakota ballot measure that would require political nonprofits to disclose their donors, USA Today reports. According to the news organization, the campaign is “part of a sustained effort by [the Koch network] to keep government agencies and the public from learning more about its financial backers.” AFP CEO Luke Hilgemann told USA Today that donors can be subject to harassment and intimidation when their identities are disclosed, making it more difficult for them to exercise their free speech rights to advocate for political causes. Hilgemann also said that politicians who have opposed his organization’s views on tax and other policy issues have backed the measure, “because they don’t like us bringing these issues to light and holding them accountable.”

The FBI is investigating the role Arizona’s largest electricity supplier played in a 2014 election for commissioners to the state’s utility rate-setting agency, according to The Arizona Republic. The news organization reports the power supplier, Arizona Public Service, is suspected of “indirectly funding” at least one 501(c)(4) organization that spent money to elect two commissioners with close ties to the utility. Federal agents have sent grand jury subpoenas to Pinnacle West Capital, which owns Arizona Public Service, the electricity supplier, according to a regulatory filing cited by the news organization. The utility and the nonprofit, Save Our Future Now, each say they are cooperating with the investigation. On Wednesday, the director of utilities for the Arizona Corporation Commission, the agency that determines what customers pay for power and water, resigned without explanation. His resignation will take effect in mid-October.

One Nation, a dark money group affiliated with political strategist Karl Rove, has canceled its ad buy in Ohio’s U.S. Senate race, the Wall Street Journal reports. The cancellation of the $2.8 million media buy to support Republican Sen. Rob Portman seems to indicate the group is confident he will win re-election. One Nation also announced a $1 million ad buy to bolster Republican Sen. Roy Blunt’s re-election bid in Missouri, the St. Louis Post-Dispatch reports. Blunt is running against Democrat Jason Kander, Missouri’s Secretary of State.

Some campaign finance reform groups in New York don’t want Gov. Andrew Cuomo to sign a bill that would require outside spending groups to provide more disclosure about their donors and their relationships with candidates, according to WRVO Radio. Cuomo championed the legislation, which passed the state legislature in June. The reform groups argue that the measure doesn’t address the root causes of political corruption, while making it more difficult for small organizations to lobby state government. A Cuomo spokesman denounced that position as hypocritical. The governor is expected to sign the bill soon.

This Week In Local Dark Money News

When it comes to dark money — money spent trying to influence voters by groups that do not disclose their donors — the focus is often on the federal level. But a considerable amount of dark money is also going to state and local elections. Our weekly roundup looks at dark money spending at the state and federal levels.

 

A group backed by billionaires Charles and David Koch will launch ads to support Republican Senate candidates in Nevada, Ohio and Pennsylvania, Time reports. The ads were previewed at the Koch’s annual donor retreat in Colorado Springs, CO. The group is also considering ad buys to support Republican Senatorial candidates in Florida, Wisconsin, and Indiana. At the retreat, Charles Koch reiterated that he would not support Donald Trump or Hillary Clinton in the presidential race.

The Arizona Center for Investigative Reporting has created a twitter bot to help monitor dark money in the state, KJZZ reports. The bot, @AZDarkMoneyBot, tweets in nearly real time, reporting when a dark money group spends money on an election. Evan Wyloge, who helped develop the bot, told KJZZ that he hopes the public will use it to monitor dark money spending in the state’s elections. Earlier this year, the state’s legislature passed a law ceding most of Arizona’s ability to regulate dark money spending to the IRS, effectively eliminating donor disclosure requirements.

Republican Rep. Tim Huelskamp of Kansas, a three-term incumbent and member of the House Freedom Caucus, lost his primary bid Tuesday night. According to Politico, the race between Huelskamp and Roger Marshall had become a proxy battle between hard-line conservatives and their more establishment counterparts. Outside groups spent more than $2.5 million on the race. McClatchy reported that the U.S. Chamber of Commerce, the most active dark money group so far in the 2016 election cycle, spent $200,000 on ads to support Marshall, and another $200,000 on ads attacking Huelskamp. Speaking to reporters on election night, Huelskamp blamed the large amount of outside money in the race for his loss.

A supporter of U.S. Rep. Diane Black (R-Tennessee) has filed a complaint against a dark money group with the Federal Election Commission, The Tennessean reports. The complaint alleges that Power of Liberty, a politically active nonprofit that funded a series of negative ads against Black during the primary campaign, should have reported those spots as electioneering communications to the FEC. An ad is an electioneering communication if it runs 60 days before a general election or 30 days before a primary and refers to a clearly identified federal candidate. The ads against Black met both criteria, according to the complaint. However, the group’s registered agent, conservative activist Steve Gill, has said Power of Liberty will only report its spending to the IRS, not the FEC. Spending on electioneering ads over $10,000 must be reported to the FEC within 24 hours; while other forms of spending by politically active nonprofits may not be disclosed until after an election. Despite the ads, Black won the Republican primary Thursday night by wide margin over her opponent, Joe Carr.

On Tuesday, Eric Greitens won Missouri’s Republican gubernatorial primary. Greitens’ ability to attract large campaign contributions was an advantage in the hotly contested race, although he has faced scrutiny over some of those donations. As we previously noted, Greitens received a nearly $2 million contribution from a super PAC that won’t have to reveal its donors until October. He has also been criticized for refusing to return a donation from a venture capitalist who was later accused of sexual abuse. Greitens will face Democrat Chris Koster, the state’s attorney general, in November.

Last Week In Local Dark Money News

When it comes to dark money — money spent trying to influence voters by groups that do not disclose their donors — the focus is often on the federal level. But a considerable amount of dark money is also going to state and local elections. Our weekly roundup looks at dark money spending in those races.

LAST WEEK

A record donation to a Missouri gubernatorial candidate shows how opaque super PAC spending can be. The St. Louis Post-Dispatch reports the $1.975 million donation to Republican Eric Greitens — the largest contribution in state history — came from “SEALs for Truth,” a federally registered super PAC. While such super PACs are prohibited from donating directly to federal campaigns, they can give to state-level candidates. Although the contribution was made in July, the super PAC does not have to disclose its donors until October 15 — well after Missouri’s August 2nd primary. In other words, voters won’t know who is the biggest backer of Greitens’ campaign.

Arizona voters will not be asked to approve a new law loosening restrictions on dark money. Ken Clark, a Democratic state legislator and leader of the “Stop Corruption Now” campaign, announced last week that his group will not be able to gather enough signatures for a referendum on the legislation, according to The Arizona Daily Star. As a result, the law that eases dark money regulations will take effect August 6.

Supporters of a Washington state initiative that would create a voucher system to provide public financing for campaigns say they have gathered enough signatures to put the measure on the November ballot. According to The Seattle Times, the initiative would give voters three $50 “democracy credits” to use in state races every two years. The measure would be funded by revenue gained from the repeal of a sales-tax exemption. Seattle passed a similar voucher initiative last year.

Federal Election Commissioner Ann Ravel is encouraging states to “bring political ‘dark money’ into the light.” In a Los Angeles Times Op-Ed piece, Ravel wrote that “dark money … is seeping into the 2016 election at a rate unmatched in U.S. history.” Ravel conceded that her agency is “a long way from compelling transparency in political spending from outside groups.” But she said the federal government could learn a lot from states about mandating donor disclosure. She cites California as an example, where regulations have limited the role of dark money compared to other states. Ravel headed the Golden State’s Fair Political Practices Commission, before heading to the FEC.