Archive for: March 20, 2008

I’m experimenting with a new feature. Should be in full force soon. It’s a way for me to steal some of Danny’s thunder without copying him.

• Bob Riley hates the following: « Thomason Tracts
• We have a quorum! « Thomason Tracts
• Troy King and Mark Montiel: The Latest Episode

I know a lot of you have much more faith in the legal opinion of Bill Pryor than that of Troy King. Attorney General Opinions that are relevant to raising money 120 days after the election by Bill Pryor include AGO 99-0061 and AGO 99-0090. I’ll concede that a “debt” doesn’t have to indicate a negative net worth. It doesn’t specifically address the issue at hand here, but they’re interesting nonetheless.

If any legal types can explain how the FCPA allows a candidate to raise money 120 after an election in excess of the campaign debt indicated on their FCPA forms, please do. I have no law degree. All I can do is read, but I realize that plain English and legal interpretation are often different.

From the press release:

During the past week, I have received encouragement from many, many voters in this Congressional District to qualify for Congress. People have offered unsolicited contributions. One man who has never contributed to me in the past gave me an unsolicited $2,300 check (the maximum limit) to encourage me to run for Congress.

I want everyone to know that this encouragement has been both heartwarming and appreciated.

In my law practice I owe a duty to clients who have retained me to protect their interests in very important litigation. I have many trials scheduled in South Carolina, California, Alabama and other states between now and the election. I cannot make satisfactory alternative arrangements for them on such short notice and I cannot abandon them during their time of need.

I owe a duty to Madison County Commission District 5 residents to make my intentions clear so that those interested in running for Commission District 5 will know whether they are running against me or running for an open seat.

I have many family commitments of both time and money to my four children (three of whom are in college), my new granddaughter, my parents and my parents-in-law. A campaign for Congress in 2008 jeopardizes my ability to meet my obligations to my family.

In sum, as much as I appreciate those who are encouraging me to run for Congress and who are willing to sacrifice their time and money to make that a successful effort, the circumstances I face simply do not permit me to honorably run for Congress in 2008.

Troy King raised around $80,000 above his recorded debt, as I wrote earlier. The other target of Montiel’s complaint, Beth Chapman, raised more than $67,000 above her reported campaign debt.

Montiel also points to Chapman paying $22,000 to family members, all after the election. There’s also a little less than $20,000 paid to her lobbying firm. I don’t think it’s a crime to pay family members or to hire a company you own, though. I’m also interested in a $2,800 check paid to Jeff Cavanaugh for “lodging” because of some rumors I’m hearing.

I find it unfortunate that the Decatur Daily so easily dismissed Montiel’s complaint as the squabble of a disgruntled gadfly. I had that first impression as well, but after looking into it I’ve yet to be convinced that the fundraising above the debt threshold, at the very least, is kosher.

There’s voter fraud in Hale County? The ex-wife of Bobby Singleton has been charged with 13 felony violations.

I’ve been learning quite a bit about campaign finance law these last couple days. You see, candidates can only raise money 12 months before an election up to election day. There is an exception that you can raise money

For a period of 120 days after the election in which the person was a candidate, but only to the extent of any campaign debt of the candidate or principal campaign committee of the candidate as indicated on the campaign financial disclosure form or to the extent of reaching the threshold that is required for qualification as a candidate for the office which he or she currently holds, or both. (Ala Code 17-5-7(b)(3))

Seems pretty clear. If there is a documented debt, they can raise that much money. Mark Montiel’s beef with Troy King is that he raised more than he documented. For comparison, I decided to look at Bob Riley’s FCPA reports. It was very interesting.

A week before the election, the Bob Riley campaign decided to take out a loan for $1,000,000.

Of course Bob Riley didn’t need $1 million in the last week before his well-financed, landslide victory. He did, however, need to show a $1 million campaign debt in order to raise up to $1 million in the 120 days after the election. Since his campaign “owed” $1 million, they could raise up to $1 million (plus interest and qualifying fees). In fact, the day after his 120 day period was up, he re-paid the $1 million loan in full.

Lieutenant Governor Jim Folsom did something similar, taking out $200,000 loan from a PAC (really) a week before the election. Folsom still owed them $60,000 as of his last annual report.

So it’s a way for them to skirt election law. They take out a last-second loan for a “debt” that exists on paper, even though the campaign may have a positive net worth. They don’t spend the money, and any interest it accrues is simply a cost of extending the fundraising deadline. After 120 days is over, the debt they created out of thin air is repaid in full. There’s probably no reason Bob Riley or Jim Folsom couldn’t have taken out a $1 billion promissory note to allow them to raise up to $1 billion for 120 days after the election.

What’s wacky about Troy King is that he didn’t even create a fake campaign debt. He reported a $20,000 debt after the 2006 election, but he then raised almost $100,000.

In a way, it’s just a technicality except that Troy King didn’t have to pay interest on a bigger loan. They’re all raising as much money as they want. Still, you would think the chief law enforcement official in Alabama would at least obey the letter of the law if not the intent.