Beginning discussion..

[Bill Bartlett]

Good afternoon all! At the annual state meeting March, the GPCO created a Campaign Finance Committee whose mission is to determine whether a Green Local must have a bank account and be registered with the Secretary of State (SoS) if they are not taking in funds.  The GPCO members assigned to this committee were:  Dan Sage, Tanya Ishikawa, Michael Haughey, Ryan Jones, and myself.  (Please correct me if I missed or transposed anyone!)  The committee was given 2 months to conclude its findings.  For his part, Ryan Jones did some extensive research and outreach to determine the details surrounding this important issue.  His findings are attached to this post and pasted below for completeness.  Over the next seven (7) days, I would like the committee to begin an agreement seeking process to approve these notes as the official findings of the committee.  Please discuss, and when you have determined your stance vote with AGREE or STAND ASIDE.  As usual, a BLOCK vote will stop agreement seeking and move the discussion to a vote.  Please refrain from blocking unless agreement cannot be found through discussion! My door is open to verbal discussions on these findings.  As a precautionary measure, I will be speaking with the co-chairs of the affected locals to help put them on a path to compliance with state regulations as they have been presented in the given research.  Better to start sooner than later, I feel, especially since the cost of the procedures to be undertaken far outweigh the potential cost to the party in fines and drama.  Thank you all for donating your limited time to this final effort.  I would like to thank Ryan Jones for his efforts to bring clarity to an issue that evolves over time and outside the limits of our resources to keep pace.  If we can find agreement in this seven day time frame, we can present out results within our stated deadline.  Wouldn't that be something? Let the agreement seeking begin with the results to be posted on Friday, June 22, 2012.  [hr](per Ryan Jones)Green Party of Colorado Guide Campaign Finance Info for Local Chapters To comply fully with Colorado's campaign finance law, all local chapters of the Green Party of Colorado (GPCO) must designate a registered agent with the Colorado Secretary of State (SoS), and file regular finance reports with the SoS.  Organizations not involved in the nominating of candidates or the internal decision making of the GPCO are not required to register with the SoS or file finance reports.  These organizations are considered social in nature until they have a role in nominating candidates or are given a say in GPCO decisions [1].In Colorado, chapters of political parties are only recognized at the county level for campaign finance purposes.  This means that all recognized locals of the GPCO must be confined to the boundaries of a county.Once a local of the GPCO has any role in nominating candidates or internal decision making, this organization is considered part of the GPCO and is required to register with the SoS [2][3].  Any organization of this nature that is not registered with the SoS in not in compliance with the law and is at risk of having legal complaints filed against it by the public [4].Before registering with the SoS, a local must open its own bank account, or at least know which banking institution it will open an account at upon registering.  This information is needed to register with TRACER.  TRACER is the online campaign finance filing system used by the SoS.Once registered with the SoS, a GPCO local is considered a county political party.  A county political party must have a registered agent at all times [5].  A registered agent is the person that acts as the treasurer of the local.  The registered agent of a local is responsible for making sure that the required financial reports are filed with the SoS on time.  The registered agent must have a primary residence in Colorado.  A designated filing agent may also be identified.  A designated filing agent is a second individual that can file finance reports with the SoS.  The local must file regular finance reports based off of the schedule provided by the SoS.  The penalty for missing a filing date is $50 per day.  All registered county political parties must file finance reports, even if no contributions are received or expended:"17.1 Until terminated in accordance with these rules, a committee other than a political organization shall file a disclosure report for every reporting period, even if the committee has no activity (contributions, donations, or expenditures) to report during the reporting period"(Emphasis added) [6].  In this document, the term "committee" includes political parties [7].  Works Cited1. http://www.sos.state.co.us/pubs/elections/CampaignFinance/files/01-27-2004advisory.pdf2. Q1 What is a political party? http://www.sos.state.co.us/pubs/elections/CampaignFinance/FAQ/politicalParties.html3. Q2 Do political parties have to register with your office?http://www.sos.state.co.us/pubs/elections/CampaignFinance/FAQ/politicalParties.html4. http://www.sos.state.co.us/pubs/elections/CampaignFinance/FAQ/complaints.html5. Q4 What is a registered agent? http://www.sos.state.co.us/pubs/elections/CampaignFinance/FAQ/politicalParties.html6. http://www.sos.state.co.us/CCR/Rule.do?deptID=20&deptName=1505%20State&agencyID=104&agencyName=1505%C2%A0Secretary%20of%20State&ccrDocID=2776&ccrDocName=8%20CCR%201505-6%20RULES%20CONCERNING%20CAMPAIGN%20AND%20POLITICAL%20FINANCE&subDocID=59478&subDocName=Rule%2017.%20%20Filing%20Calendars%20and%20Reporting%20periods&version=347. 1.2  "Committee". Unless otherwise specified, the term "committee" as used in these rules includes candidate committees, political committees, small donor committees, issue committees, independent expenditure committees, political parties, Federal PACs, and political organizations.  (Emphasis added) http://www.sos.state.co.us/CCR/Rule.do?deptID=20&deptName=1505%20State&agencyID=104&agencyName=1505%25A0Secretary%20of%20State&ccrDocID=2776&ccrDocName=8%20CCR%201505-6%20RULES%20CONCERNING%20CAMPAIGN%20AND%20POLITICAL%20FINANCE&subDocID=59462&subDocName=Rule%201.%20%20Definitions&version=34Written May 2012.  Disclaimer: This document has not been verified for legal accuracy and it is not intended as a source for legal advice. 

[Ryan Jones]

Bill,Thanks so much for getting this committee going.  I know we have all been busy since the state meeting and because of that, this committee had a bit of a delayed start.  I only happened to have the time to write that document because I was asking the SoS office all of those questions anyway while I was getting the Denver Greens' finances in order.  I must also add that Dan Sage was a great source of wisdom through that process and I probably wouldn't have been successful without his help.  I am glad to report that the Denver Greens is now registered with the CO SoS and we are about to file our first TRACER report.  The document that I wrote is a hybrid between a how-two guide for locals going through this process, and a report of my findings for the committee.  I understand that because of this it may have some shortcomings.  I am very open to additions, amendments, criticism, concerns, etc.  My hope was that it would promote discussion on the issue of campaign finances in the GPCO.  I suppose the next step after the first phase of discussion would be for this committee to agree on a plan of action.  This plan of action could then be translated into recommendations for the state party and/or locals to consider.  This may even mean drafting a council proposal to put the recommendations into action.  I look forward to the discussion.  This is one of the most urgent issues our party is facing. 

[Bill Bartlett]

Thanks for clarifying Ryan!  I wasn't real sure how to approach the findings, but I think they provide a firm foundation from which we could, as a committee, use to come up with a comprehensive approach to getting all Green Locals into compliance with state law.  At this point we are actually a month late on our findings (my math was poor when I drafted this yesterday).  I'd like to see us pull together and release our findings by the end of the month at the latest.

[Michael Haughey]

I think this is getting ahead of ourselves to our own detriment.  The requirement for a treasurer for each county will sink many of the locals and that is not in our best interest.  Some if not many of our locals do not at present have enough active participation to find a treasurer, and the consequences of not filing on time can be a problem.  The next step should be to request a written interpretation of the SOS rules and request clear reference to the applicable sections of the State Constitution, particularly Amendment 16 on Campaign Finance.  The SOS rules are misinterpreting the State Constitution.  The big problem is that the SOS rules add “political parties” to the definition of “political committee” whereas that is not in the State Constitution definition and is in fact the only difference between the two definitions.  It is as if someone did that specifically to make things more difficult if not impossible for smaller political parties.  The intent and language of the constitution is to put requirements on political committees that raise funds for candidate or issue advocacy, not to require a treasurer for local party chapters.Once a local is big enough to have a treasurer, then I think it is a good idea as that then allows raising funds for candidate and issue support.  Here is what I found from my research in March that I put in an e-mail then:I think it is clear that the SOS staff is mis-interpreting the State Constitution.  Here is what I found, with my recommendation at the end: Under definitions in the SOS rules: 1.2 "Committee". Unless otherwise specified, the term "committee" as used in these rules includes candidate committees, political committees, small donor committees, issue committees, independent expenditure committees, political parties, Federal PACs, and political organizations.Under political parties in the SOS rules: Rule 6.  Political Parties 2280313 6.1  The appropriate filing officer for a state or county political party is the Secretary of State. Therefore, state and county political parties are subject to the requirements of section 1-45-109(1)(c), C.R.S., and must file reports with the Secretary of State. [Article XXVIII Section 2(1); section 1-45-109(1)(c), C.R.S.] 2280314 6.1.1  This rule shall not apply to a political party in a home rule jurisdiction reporting in accordance with Rule 14.4. Under home rule in the SOS rules: 2280494 Rule 14.  Local Offices and Home Rule 2280495 14.1  The requirements of Article XXVIII and of Article 45 of Title 1, C.R.S., do not apply to home rule counties or home rule municipalities that have adopted charters, ordinances, or resolutions that address any of the matters covered by Article XXVIII or Article 45 of Title 1. 2280496 14.2  The provisions of Article XXVIII, Section 3(4) relating to contributions of corporations and labor unions apply to elections to every state and local public office, except local public offices in home rule counties or home rule municipalities that have adopted charters, ordinances, or resolutions that address any of the matters covered by Article XXVIII or Title 1, Article 45. 2280497 14.3  The provisions of section 1-45-105.5, C.R.S., relating to a prohibition on lobbyist contributions to members of the General Assembly during legislative sessions, apply to members of the General Assembly who are candidates for any state or local office, including any office in home rule municipalities that have adopted charters, ordinances, or resolutions that address any of the matters covered by Article XXVIII or Article 45 of Title 1. 2280498 14.4  A political party, as defined in Article XXVIII, Section 2(13) at the level of a home rule county or home rule municipality that has adopted a charter, ordinance, or resolution that addresses any of the matters covered by Article XXVIII or Article 45 of Title 1, may establish a separate account that is used solely for contributions made to the party, and expenditures made by the party, for the purpose of supporting the party’s county or municipal candidates for offices within the county or municipality. Contributions to and expenditures from such account shall not be included for purposes of any limitations or reporting contained in Article XXVIII or Article 45 of Title 1, C.R.S. Then I looked at the CRS and it looks like the SOS added “political parties” to their rule which is NOT in the CRS referenced section: 1-45-109. Filing - where to file - timeliness. (1) For the purpose of meeting the filing and reporting requirements of this article:(a) The following shall file with the secretary of state:(I) Candidates for statewide office, the general assembly, district attorney, district court judge, or any office representing more than one county; the candidate committees for such candidates; political committees in support of or in opposition to such candidates; issue committees in support of or in opposition to an issue on the ballot in more than one county; small donor committees making contributions to such candidates; and persons expending one thousand dollars or more per calendar year on electioneering communications.(II) Candidates in special district elections; the candidate committees of such candidates; political committees in support of or in opposition to such candidates; issue committees supporting or opposing a special district ballot issue; and small donor committees making contributions to such candidates.(b) Candidates in municipal elections, their candidate committees, any political committee in support of or in opposition to such candidate, an issue committee supporting or opposing a municipal ballot issue, and small donor committees making contributions to such candidates shall file with the municipal clerk.(c) All other candidates, candidate committees, issue committees, political committees, and small donor committees shall file with the secretary of state. Under definitions (CRS – Title 1-45), I found: (14) "Political committee" shall have the same meaning as set forth in section 2 (12) of article XXVIII of the state constitution. Here is a link to the campaign finance law (Colorado Consitution XXVIII):  http://www.colorado.gov/cs/Satellite?c=Document_C&childpagename=CGA-LegislativeCouncil%2FDocument_C%2FCLCAddLink&cid=1251595254682&pagename=CLCWrapper    (which does not work on my computer) I found this link on the Internet that seems to work better:  http://www.sos.state.co.us/pubs/elections/CampaignFinance/files/amend_27.pdf  The constitution is very clear that a Political Committee is NOT a political party:  (12) (a) "Political committee" means any person, other than a natural person, or any group of two or more persons, including natural persons that have accepted or made contributions or expenditures in excess of $200 to support or oppose the nomination or election of one or more candidates.(b) "Political committee" does not include political parties, issue committees, or candidate committees as otherwise defined in this section. I think it is very clear that the SOS is mis-interpreting the Colorado Constitution. I did not try to figure out which, if any, counties are home rule as the State Constitution reference made that unnecessary.  It might be worth looking into if anyone knows where to start. Conclusion/recommendation – I believe we should not make changes based solely on the staff person’s verbal interpretation.  It is clear to me that the purpose of the campaign finance law is to regulate the expenditures of money in support or opposition to candidates and/or issues.  We raise no money, therefore it should not apply to us unless or until at some point in the future we start collecting money for that purpose.  We should start by asking for a written interpretation.  Normally that would trigger them reading the referenced laws so that what they commit to writing is defensible, and they might discover on their own that it is not.Michael D. HaugheyAJ Greens

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