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Update: N.C. group files complaint about Republican PAC

Wednesday, July 30, 2008
(Updated 1:48 pm)

RALEIGH (AP) — A new Republican political committee seeking to get Charlotte Mayor Pat McCrory elected North Carolina governor is breaking the law by how it funnels money through its national group, according to a complaint filed Wednesday.

The campaign finance group Democracy North Carolina asked the State Board of Elections to investigate a political action committee of the Republican Governors Association, which has collected more than $380,000 since it organized in May.

Group executive director Bob Hall said in a letter to the board that the RGA North Carolina 2008 Political Action Committee is misleading the public about who is giving to the North Carolina effort. He said that breaks campaign finance rules.

Roughly three dozen donors from across the country have given between $10 and $100,000 to the committee, according to finance reports filed with the board.

Hall contends the donations actually were sent to the association, which is earmarking the money for the North Carolina campaign but treating them as if they were given directly to the new committee.

That violates state campaign finance laws, Hall argues, for giving "in the name of another" and for failing to disclose properly the true source of the committee's money.

An association spokesman in Washington didn't immediately return phone and e-mail messages Wednesday seeking a response to the complaint.

The association said last week that donors have no control over how their money is used. Some donors interviewed said they didn't realize the money was going to be used in North Carolina, where McCrory is taking on Democratic Lt. Gov. Beverly Perdue in the November election.

Hall said the contribution method by the new committee and other political groups fails to provide the public a clear picture of how they receive money.

"It is not too much to ask that these entities obey the law and tell the donors exactly what their money is being solicited for," Hall wrote.

State election officials didn't immediately return messages seeking comment. The five-member State Board of Elections could order a civil penalty against the political action committee or block it from spending funds.

In recent years, the board has scrutinized the role of so-called "527" groups such as the Republican Governors Association and the Democratic Legislative Campaign Committee, which raises money for state legislative candidates nationwide.

The 527s - named after a portion of the federal tax code - can accept donations from corporations or unions but are limited by state law in how those funds can be used for television and radio ads.

Kim Strach, a deputy elections director, said earlier this week these types of groups are barred from giving directly to North Carolina political committees if they have received corporate or union donations.

Hall's complaint doesn't challenge a recent federal court ruling that allows RGA North Carolina 2008 Political Action Committee to receive unlimited amounts of money from individuals to support or oppose candidates as long as it doesn't coordinate with McCrory's campaign. The courts have struck down a $4,000 limit per person for each election.

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