Why FairJudges.net Should Be Investigated

 

FairJudges.net is organized as a 527-committee under the IRS code and has raised more than $200,000 to air an ad that avoids certain "express advocacy" words [e.g., "elect," "support," "defeat"] which would make it a "political committee" under state law and subject to strict campaign-finance regulations. The ad began running a week before Election Day and any reasonable person would see it as a campaign commercial, because it says "we need" 4 named candidates on the court [see http://www.fairjudges.net ]. 

 

A 527 committee has much more flexibility than a political committee in the type of funds it can raise and level of disclosure it must provide the public.  And, especially important, the amount it spends to benefit certain candidates does not count toward matching or "rescue" money the candidate's opponent would receive, if the opponent is enrolled in NC's public financing program. If the same spending was done directly by a political party or a political committee, then all those dollars would count toward the trigger for releasing matching money to publicly financed candidates opposed by the ad.

 

So this is a devious way to circumvent a key provision of the public financing system.  Left unanswered, other party/interest-groups will adopt this tactic, and the result will discourage candidates from opting into the public financing program.

 

The wrinkle is that IF the 527 committee is not truly independent but is actually just a coordinated extension of a political party or a committee of the party, then its spending should be treated as spending by a political committee; then the spending should be fully regulated and should count toward matching public funds to the opposition.  There appears to be evidence that one or more agents of the N.C. Democratic Party were/are supervising the 527 and its strategy. That coordination, if established by the State Board of Elections, could have consequences that could lead to substantial fines against the Party, etc. 

 

Meanwhile, candidates who enrolled in the public financing program are mighty mad -- they happen to be Republicans this time.  Next time, it could be the Christian Right with a 527-ad funded by two multi-millionaires that says, "We need our courts to protect our families and our liberties. Judge Terrific Smile. He's a judge who cares about your family and will enforce the law against illegal aliens."

 

It would have been much better, more honorable, for the Party to just sponsor ads under its own name -- if at all! -- even if that caused an opposition candidate to get additional public funding. 

 

In response to a complaint/request filed by Bob Hall of Democracy North Carolina, the State Board of Elections has launched an investigation into possible coordination between FairJudges.net and the N.C. Democratic Party. (Democracy North Carolina also filed a complaint regarding the Art Pope/Republican-sponsored 527 committee this spring, but the Board concluded that there was insufficient evidence of coordination or express advocacy to make it a political committee.) 

 

CLICK HERE to view the complaint we filed.

 

Here's part of the story in the News & Observer about Board's action Friday...

 

Raleigh News & Observer      November 4, 2006

 

Money to fight judge ad refused

Elections board does call for probe

 

By Andrea Weigl, Staff Writer

 

RALEIGH - The State Board of Elections refused Friday to grant two state Supreme Court candidates' requests for $414,000 to combat an independent ad campaign promoting their opponents.

 

But the board did ask the state agency to investigate whether there was coordination between FairJudges.net and the N.C. Democratic Party, which provided $75,000 of the funding for FairJudges.net. Bob Hall, head of Democracy North Carolina, asked for the inquiry, citing the key role of Scott Falmlen as a strategist for both groups.

 

FairJudges.net unfurled its television spots this week promoting those it called "fair, unbiased judges" -- Chief Justice Sarah Parker, Associate Justices Mark Martin and Patricia Timmons-Goodson and N.C. Court of Appeals Judge Robin Hudson. Only Martin is a Republican, but he has received much bipartisan support because many view his opponent as unqualified.

 

N.C. Court of Appeals judges Ann Marie Calabria and Eric Levinson, who are running against Hudson and Timmons-Goodson, respectively, asked for money to combat the ad campaign. They both participate in the public financing program for judicial campaigns and therefore can no longer raise campaign funds. Their only option is more public money, which state law allows participating candidates to receive if an outside group spends significant money supporting their opponents.

 

Gary Bartlett, executive director of the State Board of Elections, ruled that the ad campaign did not explicitly encourage voters to cast their ballots for particular candidates and therefore did not qualify as an expenditure that triggered the need for additional public funds. Board members, some of whom admitted not having seen the television ad, upheld Bartlett's ruling. . . .