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Brunner probing anti-slots group
Subpoenas seek to identify backers of referendum
- By Mark Niquette, THE COLUMBUS DISPATCH | February 18, 2010, 3:29 AM

Questions have been swirling for months now about who is funding a group seeking a referendum on whether electronic slot machines should be added at Ohio horse-racing tracks.

Yesterday, Secretary of State Jennifer Brunner said she has launched an investigation to find out.

Brunner said she has issued subpoenas seeking records and depositions from individuals connected with LetOhioVote.org, the group that wants to put a referendum on the slots plan on the Nov. 2 ballot.

LetOhioVote.org reported three weeks ago that its sole source of funding last year was six contributions totaling nearly $1.6 million from a nonprofit organization in Virginia whose donors have not been revealed.

Brunner said Ohio law is clear that what is spent for ballot issues must be disclosed, and that voters have a right to know who is paying.

"Using a 'straw person' out-of-state corporation to hide the real sources of funding not only violates the public trust, it looks like concealment, which is against the law," Brunner said in a statement.

LetOhioVote.org's spokesman, Carlo LoParo, said the group has complied with all campaign-finance laws by disclosing New Models as the source of its funding.

As a nonprofit organization -- a 501(c)4, or social-welfare organization, under IRS rules -- New Models files only annual reports with the IRS listing the amounts of contributions. LoParo has said he doesn't know who is giving to New Models.

"It's pretty clear that this is a fishing expedition that will most certainly waste tax dollars and time," LoParo said.

New Models President Tim Crawford declined to comment yesterday outside his home in McLean, Va.

Nonprofit groups are allowed to contribute to campaign committees under certain circumstances, but it clearly violates the spirit of campaign-finance laws to deliberately avoid revealing donors by using a nonprofit as a source of funding, said Steven F. Huefner, an Ohio State University law professor specializing in election law.

Still, drawing a line between what is legitimate political activity and what isn't can be difficult, he said.

Nonprofit groups have been used in other states as a way to disguise contributions to committees, especially in ballot issues, said Ed Bender, executive director for the National Institute on Money in State Politics.

Bender said even if the law allows a committee to report only the name of a nonprofit group as the source of a contribution, the public deserves to know more.

"People should be demanding that the bar be raised higher," he said.

LetOhioVote.org was formed by three conservatives last year after Gov. Ted Strickland and the legislature included a provision in the state budget to add slot machines at the state's seven horse-racing tracks as a way to raise revenue.

The plan was put on hold after a court challenge. But LetOhioVote.org conducted a petition drive to put a referendum on the Nov. 2 ballot, saying voters had a right to decide whether they want the expanded gambling.

County elections boards currently are reviewing petition forms submitted by LetOhioVote.org to determine whether there are enough valid signatures to put the referendum on the ballot.

The issue was separate from the constitutional amendment that Ohio voters passed last fall to allow casinos in Columbus, Cleveland, Cincinnati and Toledo.

But the Strickland administration argued last summer that LetOhioVote.org was a front for rival gambling interests supporting the casino issue, which LetOhioVote.org denied.

Brunner's office said it issued subpoenas to Let- OhioVote.org; treasurer Gene Pierce; LoParo; Tom Brinkman Jr., a former state lawmaker from Cincinnati identified as a member of LetOhioVote.org; Norm Cummings, who set up the Web site domain name for the group; New Models; and Crawford.

Several of the individuals have ties to Brunner's predecessor, former Secretary of State J. Kenneth Blackwell. Cummings managed Blackwell's campaign for governor in 2006, Crawford was a fundraising consultant, LoParo was his spokesman and Pierce also worked on the campaign.

Dispatch Washington Bureau Chief Jonathan Riskind contributed to this story.

mniquette@dispatch.com


Ohio Constitution too easy to alter, some lawmakers say
- By Joe Guillen, The Plain Dealer | February 14, 2010, 8:00AM

Associated Press - Casinos coming soon to a city near you in Ohio, courtesy of a constitutional change. A croupier deals cards during a charity event at the Mountaineer Casino, Race Track & Resort in Chester, W.Va.

COLUMBUS, Ohio -- Recent changes to the state constitution -- and the threat of further alterations this year -- have some state lawmakers worried that it's too easy to mold Ohio's most important legal document around special interests.

Gambling advocates and the state's farming industry scored victories last November when Ohio voters approved constitutional amendments they endorsed: one authorizing four casinos in Ohio and the other establishing a Livestock Care Standards Board.

But just three months after the election, opponents plan to put revisions to both issues back on the ballot this year through additional constitutional amendments.

The repeated attempts to pass laws by modifying the constitution don't sit well with Ohio Rep. John Domenick, a Democrat from eastern Ohio who has introduced a bill to require a 67 percent supermajority of voters to approve changes to the constitution. Currently, only a simple majority is needed.

"To me, the constitution is a sacred document," Domenick said last week. "We're going in tampering with it all the time."

Domenick's proposal for a supermajority -- which, ironically, would be a constitutional amendment requring voter approval -- is resonating with some lawmakers because of thetwo amendments proposed in recent weeks as countermeasures to the onespassed in November.

Rep. Robert Mecklenborg, the highest-ranking Republican on the House committee hearing Domenick's plan, said the issue is "definitely ripe for discussion."

One of the countermeasures -- to change the location of the Columbus casino -- was put on the May ballot by state lawmakers late last month.

The Columbus casino was planned for a downtown location spelled out in Issue 3, the amendment voters passed in November to legalize gambling and establish casinos at specific places in Cleveland, Columbus, Toledo and Cincinnati.

But Columbus community leaders and residents rebelled and proposed an alternate location, the site of an abandoned auto plant on the city's West Side. The General Assembly listened and put the new amendment on the May ballot.

Although the location change wouldn't affect plans for casinos in the other three cities, voters across the state will vote on it in May.

Going through the General Assembly is one way to get constitutional amendments on the ballot. But when legislators won't do it -- as they did for the Columbus casino opponents -- residents can mount a petition drive to collect signatures and put an issue before voters.

That's what opponents of Issue 2, the farm standards amendment, are doing.

The Washington-based Humane Society of the United States is behind a constitutional amendment that would set minimum standards for the Livestock Care Standards Board, which would dictate what kinds of confinements and treatment of farm animals the state will allow, and what crosses over into animal cruelty. Animal rights advocates are worried that the board created by Issue 2 will not do enough to protect farm animals.

The Humane Society and its supporters are waiting for final approval to begin collecting signatures to put their amendment on the November ballot.

This method of circumventing the legislature irks Domenick because he sees it as a way for outsiders and wealthy interests to fund a campaign to change Ohio laws.

"We have all these groups from out of state telling us how to run the show," he said.

Another example, Domenick said, is Cavaliers owner and Michigan native Dan Gilbert, who led the $47 million petition drive and campaign to legalize casino gambling in Ohio. Gilbert has rights to build the casinos in Cleveland and Cincinnati.

Jonathan Entin, a professor at Case Western Reserve University who specializes in constitutional law, said this type of lawmaking doesn't follow the spirit of the state constitution, which is supposed to contain legal principles for lawmakers to follow.

Extremely detailed laws, such as the ones creating the livestock board and legalizing gambling, don't belong, he said.

"I just think it's a bad idea to clutter up the constitution with this kind of detail," Entin said.

But Catherine Turcer, of the government watchdog group Ohio Citizen Action, said the process of amending the constitution is not as easy as some lawmakers portray it.

She opposes the idea of requiring a supermajority because it would hinder one of the last remaining forms of direct democracy -- citizens' ability to gather signatures and put a constitutional amendment on the ballot.

"It's like the last tool of ordinary people," she said.

Ohio anti-slots group still pushing for November vote
- By Mark Naymik, The Plain Dealer| February 09, 2010, 6:00AM

The group that derailed Gov. Ted Strickland's 2009 plan to add video slot machines at Ohio's horse racing tracks is still trying to put the issue before voters in November.

LetOhioVote.org submitted 177,000 signatures to the secretary of state's office on Monday to cover an earlier shortfall of signatures needed to compel an election. The group submitted 214,301 valid voter signatures in December, about 27,000 short of the threshold needed to trigger the election.

The secretary of state's office has to wait for county boards of election to verify the latest signatures before it can certify the referendum.

LetOhioVote, created by three conservative activists, including former Cincinnati-area State Rep. Tom Brinkman, popped up last spring after Strickland proposed adding 17,500 video slots machines at Ohio's seven racetracks as a way to meet a revenue shortfall in the 2010-2011 budget.

LetOhioVote successfully argued before the Ohio Supreme Court that Strickland's plan was subject to a voter referendum, which forced the governor to withdraw it.

As LetOhioVote moves forward, a mystery is growing about who is financing the group.

The group's recent campaign finance report filed with the secretary of state shows it collected nearly $1.6 million from New Models, a Virginia nonprofit.

New Models, which operates out of an office building in McLean, Va., could not be reached. The organization was formed to engage in political activities but is required to only file reports with the Internal Revenue Service. It was behind controversial automated calls to Pennsylvania voters made during the 2008 presidential election. The calls told voters that Barack Obama's aunt was living in America illegally and that he accepted campaign contributions from his "illegal alien aunt," according to a transcript of the call posted on Politico.com

Tim Crawford is president of New Models. He raised money for former Republican gubernatorial candidate Ken Blackwell's 2006 campaign.

LetOhioVote spokesman Carlo LoParo acknowledged that he knows Crawford but said he knows little about New Models.

"LetOhioVote reported all of its contributions as required by law and our organization has met every legal requirement for disclosure for ballot issue committees," he said.

Ruling could render Ohio's campaign-spending law toothless
- By Mark Niquette, THE COLUMBUS DISPATCH | Friday,  January 22, 2010 3:10 AM

Ohio's ban on corporate contributions could be unenforceable, some experts say, after yesterday's U.S. Supreme Court decision allowing corporate spending for political campaigns.

Ohio Secretary of State Jennifer Brunner said she expects the legislature will consider modifying state law to bring it into compliance with the court's ruling -- and that voters can expect more 30-second television campaign commercials.

"So many people are very tired of the negative, hyperbolic ads that they see on TV. They dread when campaign season comes," Brunner said. "All I can say to them is: Brace yourselves. There's more."

Ohio's law says that no corporation, nonprofit corporation or labor organization can spend its money for or against a political party, candidate or "for any partisan political purpose."

The high court ruled that corporations and other entities have the constitutional right to spend money for or against a candidate as long as the effort is not coordinated with a campaign.

Brunner said state law is not the same as the federal law considered by the court because it treats corporations and labor unions differently, but that the ruling appears to apply to the state statute.

As a practical matter, Ohio's law no longer is enforceable, said Edward "Ned" Foley, director of an election-law center at Ohio State University.

The state law "assumes a basic ban on corporate spending for campaign ads. That can't survive this decision," he said.

Foley, like Brunner, said he expects the Ohio legislature and others across the nation to re-examine and possibly modify their laws banning corporate campaign spending.

Ohio Attorney General Richard Cordray's office is reviewing the decision but a spokeswoman said the ruling is "certainly consequential and will impact Ohio and every other state in the country."

The ruling was slammed by many, including U.S. Rep. John Boccieri, D-Alliance, who said last night in a statement: "The regressive decision by the Supreme Court today hands the keys of elections over to the big corporations and Wall Street. It's as if the Supreme Court rolled up to the drive-through and supersized the campaign contributions of big corporations and special interests."

mniquette@dispatch.com

 

 

 

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