Jan 25, 2007 -- Colorado "527" Disclosure Bill Supported by Campaign Legal Center
Testimony Offered to House State Affairs Committee Hearing

WASHINGTON, D.C. - The Campaign Legal Center today offered testimony in support of HB 07-1074 before the Colorado House of Representatives State Affairs Committee hearing in Denver. The bill requires disclosure of contributions to and expenditures by so called "527" political organizations.

The testimony of Campaign Legal Center attorney Paul S. Ryan focused on the extensive case law upholding the constitutionality of campaign finance disclosure laws—making clear that HB 07-1074 is both constitutional and good public policy.

"Without a requirement that Section 527 organizations abide by Colorado disclosure laws, such organizations active in Colorado are able to raise and spend unlimited funds to influence Colorado elections while, in the words of the U.S. Supreme Court, 'hiding behind dubious and misleading names,' and spending funds from unnamed sources," Ryan testified. "Residents of Colorado have a First Amendment right to know who is spending money to influence the elections in which they are voting and thus make more informed voting decisions."

"527" political organizations are playing an increasingly visible role in state and national elections, in many cases without complying with campaign finance laws. Attack ads against Senator John Kerry during the 2004 presidential campaign by the "527" Swift Boat Veterans for Truth made national news. In their wake, similar organizations—both Democratic-leaning and Republican-leaning—have sprung up in Colorado and across the country seeking to influence elections while skirting existing campaign finance laws and keeping voters in the dark about their financial backers.

HB 07-1074 requires that "political organizations"—groups that have declared to the Internal Revenue Service, by registering as tax-exempt entities under 26 U.S.C. § 527, that they are operated primarily for the purpose of influencing the selection, nomination, election or appointment of individuals to public office—disclose to the public information regarding their contributions and expenditures to influence Colorado elections, according to Colorado's reporting deadlines and with the level of disclosure detail required by existing Colorado law. Timely, detailed disclosure of such information is vital to informed voter decision-making.