The state’s Ethics Commission appears ready to open Pandora’s box on when nonprofit organizations should be required to file disclosure forms on how much staff time or money they spend to influence the vote on ballot questions – an issue raised in a complaint against the conservative Maine Heritage Policy Center and its support of the Taxpayer Bill of Rights.
While the commission discussed the issue at its meeting last week in Augusta, it stopped short of ruling on whether the policy center should have to report the staff time it has devoted to TABOR.
“It’s a huge issue with enormous public policy implications,” said Commissioner Andrew Ketterer. “Other groups appear to be similarly situated.”
The commission voted unanimously to look at what effect stricter reporting requirements could have on other nonprofits that take a stand on referendums. Commission chairman, Jean Ginn Marvin, removed herself from the debate, saying she sat on the Maine Heritage Policy Center board of directors.
The complaint against the Maine Heritage Policy Center was brought by Carl Lindemann, currently of Texas, who used to live in Maine and was a liberal guest commentator on WGAN radio.
Lindemann argued that while the policy center and its staff – including director Bill Becker – have participated in multiple debates on TABOR and commented to the press, the organization has not filed any disclosure forms indicating the value of its staff time, or where it gets its money.
“This is a major player in a very serious political issue and the funding is opaque,” he said.
TABOR, Question 1 on the Nov. 7 ballot, would cap spending at all levels of government and require a two-thirds vote of the Legislature or local governing body and a majority vote on the ballot to override those caps or raise any taxes or fees, even ones for budgets that fall within the spending limit.
While Lindemann tried to argue that the policy center should be considered a political action committee, the Ethics Commission staff and the commission itself said it didn’t meet the criteria. They agreed the policy center exists for reasons other than to support TABOR, and has not raised money to advocate its passage.
It was less clear, however, whether the center should have to file less burdensome disclosures. Under a rule passed by the Legislature in 2000, persons or organizations other than political action committees that spend in excess of $1,500 “for the purpose of initiating, promoting, defeating or influencing in any way a ballot question” are supposed to file so-called 1056-B forms.
Attorney Dan Billings, speaking on behalf of the policy center, argued a lot of organizations would get caught in that net if the statute were broadly interpreted.
“Lots of organizations, particularly government organizations, are very active in the Taxpayers Bill of Rights,” Billings said.
He referred to a newsletter he got at home from School Administrative District 75 in Topsham, which called for defeating the referendum.
“I don’t know what they spent for this,” he said, holding up the newsletter, but “with a well compensated superintendent?.it wouldn’t take very much to get over the $1,500” when considering the value of staff time.
Billings had argued previously that even the Catholic Church could be required to file since it, too, had studied the issue and come out against TABOR.
Other nonprofits have filed the 1056-B forms, including the Maine Center for Economic Policy, the Maine Women’s Lobby and Democracy Maine. But many more have not, Billings argued, including school districts, municipalities and chambers of commerce.
Jon Crasnick of Democracy Maine said the policy center should be required to file, as his organization has done, because it has been so visible in the TABOR campaign.
“They have advocated,” he said. “They’ve participated in debates on TABOR as many as three times a day.”
“Even if they haven’t raised any money, their activities should be reported as in-kind contributions to the pro-TABOR PAC,” Crasnick said.
The Ethics Commission will meet before the end of the year to discuss how the law should be interpreted and enforced.
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