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Republicans, Democrats trade campaign finance allegations
by Laura McCallum, Minnesota Public Radio
December 20, 2004

Rep. Matt Entenza, whose family gave about $600,000 to various DFL causes this year, issued a written statement describing the complaints as a distraction. (MPR Photo/Laura McCallum)

The state Republican Party on Monday asked state and federal agencies to investigate possible violations of campaign finance laws by DFL House Minority Leader Matt Entenza and a national 527 organization. Entenza contributed $300,000 to 21st Century Democrats during the campaign. Republicans say they believe Entenza's contribution violated the law, but Entenza says it was entirely legal.

St. Paul, Minn. — Entenza says he gave $300,000 to Washington, D.C.-based 21st Century Democrats to turn out young voters. He says he and his wife, Lois Quam, also gave $260,000 to the state DFL Party and the House DFL campaign committee. His wife is not named in the GOP complaints. 21st Century Democrats, a national 527 organization, spent more than $200,000 in Minnesota on two areas - voter turnout and field workers to help House DFL candidates.

House Democrats picked up 13 seats in the election and came close to gaining the majority. Republican Party Executive Director Corey Miltimore says it appears that Entenza wanted to avoid disclosure by giving the money to a 527 instead of simply giving it to the House DFL caucus.

	GOP officials

"There is no explanation other than that they were trying to obfuscate where this money was coming from and where it was going and for what purposes, and to avoid sort of the rules that the rest of us have to play by," he said.

The Republicans' complaint calls on both the Federal Election Commission and the state Campaign Finance and Public Disclosure Board to investigate the matter.

Party attorney Matt Haapoja says if 21st Century Democrats provided field workers to DFL House candidates, that would constitute in-kind campaign contributions exceeding the legal limit. Or if Entenza gave the money to 21st Century Democrats specifically to benefit House candidates, that would violate Minnesota law prohibiting "earmarking" contributions.

Haapoja says he doesn't have any direct evidence of either transgression, but believes there's probable cause for an investigation.

"We see lots of smoke and usually where there's smoke, there's fire. I don't have the tools myself to find out whether there's fire; I can't subpoena Mr. Entenza, that's the job of the Campaign Finance board, that's the job of the Federal Election Commission."

The complaint also questions whether 21st Century Democrats properly reported Entenza's contribution. Officials with 21st Century Democrats didn't return phone calls seeking comment.

Entenza says he welcomes an investigation because his contributions to 21st Century Democrats were perfectly legal. He says the group asked him to contribute to the young voter program, and he was happy to do so. He says Republicans should accept the fact that they lost 13 seats in the election.

"It's unfortunate that they seem to want to continue with the partisan bickering that led to the horrible legislative gridlock that we had the previous two years," Entenza said.

Anyone can give unlimited amounts of money to a 527 organization. And 527s have a much lower level of required disclosure than political parties, according to Aron Pilhofer, who directs the 527 project for the Center for Public Integrity. He says complaints about 527 activities are popping up in states across the country.

"And this is going to be a real challenge for states, because the state now is left to figure out, ok, what money came from what pocket, and does this or does this not violate our state regulatory framework?" accoding to Pilhofer.

The state campaign finance board has a month to determine whether there is probable cause of a law violation. In response to the Republican complaints, a DFL legislator is asking the board to also investigate whether several dozen Republican legislators wrongly shifted campaign funds to fellow GOP candidates.

State Rep. Tim Mahoney says it's possible their donations were earmarked for certain targeted House campaigns.

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