Campaign Integrity Watchdog v. Alliance for a Safe and Independent

Alliance for a Safe and Independent Woodmen Hills bought ads and social-media coverage in an election. Campaign Integrity Watchdog filed a complaint with the Colorado Secretary of State against Alliance, alleging that Alliance failed to comply with Colorado’s campaign-finance laws requiring political committees to report contributions and expenditures. An Administrative Law Judge, or ALJ, ultimately ordered Alliance to pay fines and register as a political committee. Alliance appealed the campaign-finance decision and defended itself in a related defamation suit, racking up hundreds of dollars in court costs and thousands in legal fees. Alliance didn’t report those legal expenses. Watchdog filed another campaign-finance complaint; the ALJ concluded that the legal expenses were not reportable as expenditures but were reportable as contributions. Nonetheless, it ruled that the contribution-reporting requirement was unconstitutional as applied to Alliance for its post-election legal expenses. Watchdog appealed the ALJ’s determinations regarding the reporting requirements, and the court of appeals asked the Colorado Supreme Court to take the appeal directly under C.A.R. 50. After its review, the Supreme Court affirmed the ALJ’s decision that the legal expenses were not expenditures but were contributions under Colorado law. However, the Court reversed the ALJ’s determination that the reporting requirement was unconstitutional as applied to Alliance for its legal expenses: “The Supreme Court of the United States has consistently upheld disclosure and reporting requirements for political committees that exist primarily to influence elections. It makes no difference here that the contributions were not used to directly influence an election - any contribution to a political committee that has the major purpose of influencing an election is deemed to be campaign related and thus justifies the burden of disclosure and reporting.” Accordingly, the Colorado Supreme Court affirmed the ALJ’s decision in part and reversed in part. View "Campaign Integrity Watchdog v. Alliance for a Safe and Independent" on Justia Law