The Citizens Clean Elections Commission will formally investigate whether Governor Napolitano’s campaign staff violated commission rules and state law by contracting Web site work and a mass e-mail system before the campaign committee was legally recognized.
The commission voted 4-1 to accept the recommendations of CCEC Executive Director Todd Lang after returning from a closed-door executive session meeting May 26.
Republicans immediately issued a statement.
“The Arizona Republican Party believes that the Clean Elections Commission did the right thing today in voting to investigate Governor Napolitano’s re-election campaign for potential campaign rules violations,” said Glenn Hamer, executive director of the Arizona Republican Party. “There is little doubt in our minds that the governor violated Arizona campaign finance laws, and we are confident that the commission’s investigation will validate our original complaint.”
Mr. Lang said the complaint had “raised some concerns” and he recommended a field audit of Ms. Napolitano’s campaign committee to determine if campaign finance rules were broken that forbid candidates from incurring debt without having sufficient funds.
“There are two issues,” Mr. Lang said to the five-member commission. “Was there an expenditure and when≠
“When there is an obligation we consider that to be debt and debt is an expenditure,” he said.
E-mails to public
employees questioned
Commissioner Carl Kunasek, a Maricopa County Republican, spoke via telephone against Ms. Napolitano’s mass e-mails that sought $5 contributions to help her qualify for public funds to run her campaign. State government employees were among those who received the e-mails.
“Elected officials should not solicit money from a subordinate or use taxpayer money for campaign equipment,” Mr. Kunasek said.
Andy Gordon, an attorney for Ms. Napolitano, denied that any campaign malfeasance occurred and said the campaign “meticulously and carefully followed the law and there is no basis for this complaint.”
He told the commission the agreement was a “regularly recurring contract” and therefore exempt from immediate debt reporting requirements of the CCEC.
The CCEC’s Participating Candidate Guide for 2005-2006 states “regularly recurring administrative expenses such as rent, utilities and salaries are not considered to be debts until the payments are due.”
For expenditures such as campaign signs, the guide states candidates incur debt the moment an order for the product is placed. It also places responsibility on the candidate to communicate to staff the turning in of receipts in order to comply with campaign finance laws.
Mr. Gordon also said the campaign had enough cash to pay for the Web site services when it began verbally contracting with the provider. He said the version of the Web site launched March 1, was basic and placed its value then at approximately $1,000.
“At any given time we had more than sufficient money to cover this,” he said.
There is also not a legal indication that contracts need to be in writing, he said, adding that work can be done on a “handshake deal.”
Newly appointed Commissioner Royann Jordan Parker said she had difficulty accepting the defense provided by Mr. Gordon.
She said she believed Web sites are constantly revised and are similar to updated political mailers or brochures.
“I have a hard time viewing this as a minor expenditure or a reoccurring expenditure,” said Ms. Parker, a Pima County Republican, before the commission went into executive session.
Governor’s campaign director: Standard process
Noah Kroloff, director of Ms. Napolitano’s campaign, said the action taken by the CCEC was a normal reaction to the filing of a complaint against a candidate.
“The hearing today is part of the commission’s standard process,” he said. “We believe they will agree with us, and await the outcome of their process.”
A report released by Mr. Lang this week stated Ms. Napolitano’s campaign committee reached an agreement on March 15 to pay Integrated Web Strategy, Inc., a total of $27,500 for the development and maintenance of the governor’s campaign Web site and e-mail drive.
Payment was agreed to be divided into nine installments of $3,055.55. Also included was an early termination clause guaranteeing Integrated Web Strategy 75 percent of the contract amount.