PRESS RELEASE from New Hampshire Democratic Party


For immediate release:
July 14, 2011

Contact: 
Holly Shulman, New Hampshire Democratic Party
Bradley Davidson, Alabama Democratic Party
 
 
Concord, NH - Today, the New Hampshire and Alabama Democratic Parties filed a joint amended Federal Election Commission complaint following a complaint filed in April, producing new evidence that Mitt Romney's campaign may be circumventing campaign finance laws by using its state Political Action Committees (PACs), including its Alabama State PAC, to raise unlimited funds in excess of federal limits and then using those funds to aid his presidential campaign.

The complaint also details how Romney's campaign has failed to sever its association with its state PACs in accordance with FEC guidelines, which require the candidate to demonstrate to the FEC that it has had no involvement with the PACs for two years.

"We call on all the relevant state and federal election commissions to take a close look at potential wrongdoing by Mitt Romney and his campaign organization," said Judge Mark Kennedy, chair of the Alabama Democratic Party. "It is important that candidates follow the law and it appears that Romney's campaign may be using funds collected here in Alabama to aid his presidential campaign. Furthermore, it's a disgrace that Alabama Lieutenant Governor Ivey would involve herself in a campaign that uses relaxed Alabama law to potentially violate federal campaign law."
 
The amended complaint, which has also been sent to state authorities and seeks a full inquiry into the violations of both Federal and state laws, raises  two major areas of concern:

· Romney's campaign may have violated federal and state laws in Alabama, New Hampshire, Iowa, South Carolina, and Michigan by raising "soft money" contributions into State PACs and using the money to support his presidential candidacy.  

· If the State PACs raised or spent soft money after Mr. Romney became a declared candidate, Mr. Romney committed an additional violation of federal law.  Federal law prohibits entities "established" by federal candidates from raising or spending any "soft money."  Romney clearly established these PACs and, thus, they are subject to this law. To sever ties with the PACs and escape liability for their raising and spending of "soft money," the candidate must have no material contact or involvement with the PAC for fully two years. Of course, Romney can not satisfy this two year standard. Nor has he even suggested that he could.
 
Especially troubling to early state primary voters, the Romney campaign may not be required to disclose his Alabama state PAC spending until January 31, 2012. By January 31, 2008 the GOP presidential contest was nearly settled.

"It is important that voters know that their candidates are playing by the rules," said Ray Buckley, chairman of the New Hampshire Democratic Party. "Romney should voluntarily disclose exactly how the money raised in Alabama is being spent."
 
You can read the amended complaint filed here.

The initial April 29, 2011 complaint detailed how Mitt Romney's presidential campaign might have been funneling "soft money" (unlimited and corporate contributions) through his state political action committees to his federal presidential campaign, circumventing federal campaign contribution limits.

 UPDATE: ROMNEY TOOK ADVANTAGE OF ALABAMA’S LOOSE CAMPAIGN FINANCE LAWS TO FUNNEL MONEY TO HIS NATIONAL ORGANIZATION

Romney Took “Full Advantage Of Alabama’s Permissive Campaign Finance Laws” Allowing Unlimited Donations And Freedom To Routed The Money To Pay The Bills Of Their Federal Political Operation Leading Up To An Official Campaign Kickoff.   “Getting ready to run for president and feeling boxed in by strict federal campaign finance laws that cap donations to your political action committee? Welcome to Alabama, home of the end-run on such pesky limits. As in years past, presidential hopefuls again can find friendly territory in Montgomery to open chapters of their national political action committees. They then are free to route donations through the state to pay the bills of the political operation leading up to the official campaign kickoff. The only remaining contender for the Republican presidential nomination who has taken full advantage of Alabama's permissive campaign finance laws is Mitt Romney. He started the practice before his failed run in 2008 and, records show, never really stopped.”  [Birmingham News, 7/4/11]
 
Romney’s Alabama PAC “Raised Nearly Half-A-Million Dollars, None Of It From Anyone In Alabama.” Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “According to filings with the Alabama Secretary of State's Office, the Alabama version of Romney's PAC last year raised nearly half-a-million dollars, none of it from anyone in Alabama.” [Birmingham News, 7/4/11]
 
“Since 2006, The Money Held In The Alabama Affiliate Of Free And Strong America PAC Has Been Paying Staffers, Pollsters, Consultants And Regular Bills Associated With What Became An Official Campaign Operation.” Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “Alabama law does not limit the amount individual donors can drop into PACs. Since 2006, the money held in the Alabama affiliate of Free and Strong America PAC has been paying staffers, pollsters, consultants and regular bills associated with what became an official campaign operation. Federal election rules have allowed the arrangement in past cycles, and this one is no different.” [Birmingham News, 7/4/11]
 
Nonpartisan Washington Think Tank, Campaign Legal Center Said Of Alabama’s Allowance Of Unlimited Contributions And Subsequent Funneling To A Federal PAC: “It’s A Complete Violation Of The Spirit Of The Law And It’s A Pathetic Problem.” Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “‘They basically very carefully dance around ever saying they're a candidate, when everybody and their dog knows they're running for president,’ said Dave Vance, a spokesman for the Campaign Legal Center, a nonpartisan Washington think tank. ‘It's a complete violation of the spirit of the law and it's a pathetic problem. Alabama is fertile ground because they can take the money in large chunks.’” [Birmingham News, 7/4/11]
 
Romney’s Alabama PAC Collected Two Check Of $35,000 Each On The Same Day From One Household – Under Federal Limits Romney Would Have Needed 92 Donors To Generate That Amount. Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “Romney's Alabama PAC collected $456,750 last year from 41 individual donors. Some of the checks were less than $5,000, but others were huge. One South Dakota household, for example, gave two checks of $35,000 each, on the same day. Under federal limits, Romney would have needed 92 donors to generate that amount.” [Birmingham News, 7/4/11]
 
Free And Strong America PAC – Alabama Collected More Than $1 Million, Most Of It In 2006 And 2010, Two Years Before The Presidential Election Years. Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “All told, the Free and Strong America PAC-Alabama, formerly known as The Commonwealth PAC-Alabama, has collected more than $1 million, most of it in 2006 and 2010, two years before the presidential election years.” [Birmingham News, 7/4/11]
 
Chairman Of Romney’s Commonwealth PAC Kirk Jowers Said They Picked Alabama For A State PAC Because They “Had Some Enthusiastic Supporters There” And “Felt It Was Important To Support Candidates” Within The State Of Alabama. Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “The chairman of Romney's Commonwealth PACs, Kirk Jowers, said Alabama was picked ‘because we had some enthusiastic supporters there and PAC leadership felt it was important to support candidates who value limited and effective government within the state of Alabama.’” [Birmingham News, 7/4/11]
 
Over 95 Percent Of Romney’s Alabama PAC Expenditures “West Mostly To Administrative Expenses For People And Vendors In Massachusetts Where Romney’s Presidential Campaign Was Later Based.” Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “Records show that, of the $412,000 that Romney's Alabama PAC spent last year, $20,500 was in contributions to the campaigns of 15 Alabama Republicans running for state or legislative office. The rest went mostly to administrative expenses for people and vendors in Massachusetts, where Romney's presidential campaign was later based.” [Birmingham News, 7/4/11]
 
Free And Strong America-Alabama PAC Was Re-Registered Back To “Commonwealth” PAC To Clarify That It Was No Longer Associated With The Romney Presidential Campaign. Birmingham News wrote of Romney’s use of an Alabama state PAC in coordination with his federal Free and Strong PAC: “Jowers, also a partner in a Washington, D.C., law firm, said the name of the Free and Strong America-Alabama PAC was being changed back to Commonwealth to clarify that it was no longer associated with the Romney presidential campaign. It ended 2010 with a balance of $156,000.” [Birmingham News, 7/4/11]
 
Romney Uses Alabama's No-Limits Laws To Raise Millions From Outside The State And To Pay Venders To His Massachusetts Office. "The only remaining contender for the Republican presidential nomination who has taken full advantage of Alabama's permissive campaign finance laws is Mitt Romney. He started the practice before his failed run in 2008 and, records show, never really stopped. According to filings with the Alabama Secretary of State's Office, the Alabama version of Romney's PAC last year raised nearly half-a-million dollars, none of it from anyone in Alabama. Romney's national PAC, The Free and Strong America PAC, is what they call in Washington a leadership PAC. Such PACs are routinely used by Republicans and Democrats, separate from their own election accounts, to raise money to give to other candidates. But individual donations to it are limited by federal law to $5,000… The disclosure forms filed with the Alabama Secretary of State's Office divide PAC expenses into several categories: administrative, advertising, polling/consulting, contributions, food, fundraising, loan repayment, lodging and transportation. Records show that, of the $412,000 that Romney's Alabama PAC spent last year, $20,500 was in contributions to the campaigns of 15 Alabama Republicans running for state or legislative office. The rest went mostly to administrative expenses for people and vendors in Massachusetts, where Romney's presidential campaign was later based." [Birmingham News, 7/4/11]
 
Birmingham News Editorial In Responded To Romney’s Use Of Alabama’s Loose PAC Laws: “Lawmakers Need To Change Campaign Finance Laws And Set Reasonable Limits On The Amount Individuals Can Give.” “Free and Strong America PAC can thank free and easy Alabama campaign-finance laws for helping it dodge federal campaign-finance laws. Free and Strong America PAC is Republican presidential hopeful Mitt Romney's political action committee. Last year, Free and Strong America PAC-Alabama raised nearly a half-million dollars, none of it from anyone in Alabama. Most of the money the PAC spent paid for Romney's political operation, including staffers, pollsters and consultants, leading up to his official campaign kickoff… During the special and regular sessions of the Legislature, lawmakers fixed some of the larger problems with Alabama's campaign-finance laws, such as putting in place a ban on PAC-to-PAC money transfers that hide from the public who is giving money to candidates, and requiring more frequent reporting of contributions in an election cycle. Next legislative session, lawmakers need to set reasonable limits on the amount individuals can give, so Alabama's campaign-finance laws no longer will be free and easy, but strong.” [Editorial, Birmingham News, 7/6/11]