On Our Watch -

News and Highlights from Colorado Ethics Watch

June 2010

 Colorado Ethics Watch Files Campaign Finance Complaint Against Clear the Bench Colorado

On May 5, Colorado Ethics Watch filed a campaign and political finance complaint with the Colorado Secretary of State against Clear the Bench Colorado, alleging violations of Colorado campaign law that could result in thousands of dollars in fines and greater restrictions placed on this group that is advocating for the defeat of four Colorado Supreme Court justices who will stand for retention in November 2010.

Clear the Bench is registered as an issue committee, the type of committee that is formed to advocate for or against a ballot initiative. Amendment 27, however, clearly states that judges being voted for retention on an election ballot shall be considered candidates, which means that outside groups formed to advocate for or against those candidates must register as political committees, which are subject to contribution limits.

Read the Law Week Colorado story here
Read the Colorado Independent stories here and here and here.
Read Westword's Latest Word Blog story here.


Time to Toughen Ethics Rules for the Pinnacol Board

By Luis Toro, Huffington Post Denver
May 28, 2010

KMGH-TV's recent expose of a lavish Pebble Beach golf trip taken by three members of the board that oversees Pinnacol Assurance, the state workers' compensation insurance fund, earned bipartisan outrage. The likelihood that Pinnacol itself paid for the trip - which can't be confirmed because Pinnacol filed suit in Denver District Court to block an Open Records Act request from KMGH - raises questions about Colorado's ethics laws. Specifically, isn't this exactly the kind of gift voters banned when they passed Amendment 41 in 2006 - that is, something that doesn't meet the legal definition of a bribe but that reasonably calls into question whether a public official might look favorably on the gift-giver when making official decisions?

The answer is no, partly because of the unique setup of Pinnacol Assurance. Formerly known as the Colorado Compensation Insurance Authority, in 2002 Pinnacol changed its name and assumed its current form as a workers' compensation insurance company defined as a political subdivision of the state but funded entirely through premium payments from businesses. Pinnacol is overseen by a board, appointed by the Governor subject to approval by the Senate, that receives only per diem payments plus reimbursement of actual and necessary expenses. Amendment 41's gift ban doesn't apply to board members paid on a per diem basis, because the philosophy behind Amendment 41 is that salaried public officials and employees should not receive compensation for their services from anyone other than their government employer. But as the Pebble Beach trip shows, that doesn't mean the public doesn't have a legitimate concern that Pinnacol may be currying favor with its governing board by treating them to lavish vacations. Next year, the state legislature should take a close look at the ethics laws that apply to the Pinnacol board.

Read the full story here.


Transparency Bills Approved in Final Legislative Days

On May 10, the Colorado General Assembly passed House Bill 10-1370 and Senate Bill 10-203, both of which were signed by Governor Ritter on May 25 and work to increase voter awareness of who is spending money to influence elections.  House Bill 10-1370, introduced by Rep. Lois Court (D-Denver) and Senator Pat Steadman (D-Denver) requires issue committees to identify themselves in advertising materials, a provision strongly supported by Ethics Watch.  The bill also strengthens administrative law judges' authority to order committees who have violated disclosure laws to correct their filings, and requires proponents of ballot measures to register issue committees as soon as they print 200 petitions. 

Ethics Watch's Director, Luis Toro, testified in support of House Bill 10-1073 before the House State and Veterans Affairs Committee.

Senate Bill 10-203, introduced by Senator Morgan Carroll (D-Aurora) and Representatives Paul Weissman (D-Louisville) and Karen Middleton (D-Aurora) patches holes left in Colorado campaign finance law by the United States Supreme Court's decision in Citizens United v. FEC.  It restricts the ability of foreign corporations to make independent expenditures in Colorado elections.  It designates groups who spend more than $1000 on independent expenditures as "independent expenditure committees" subject to disclosure requirements similar to those required of political and small donor committees.

Look for Ethics Watch's first-ever Legislative Scorecard in June.

Read more details on these bills, as well as a statement from Luis Toro in response, here.
Read the Colorado Statesman story here
Read the Colorado Independent stories here and here.
Read the Denver Daily News story here
Read the Durango Herald story here.


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Ethics Watch Comments On . . .

The practice of some government agencies of charging hundreds of dollars or more to fulfill a Colorado Open Records Act request. . .

"Unless you have $1,000 sitting around, you can't get basic access to information.  We don't want to live in a state where transparency is only a luxury for the wealthy."

The question of objectivity by a consultant paid to advise a commission evaluating Memorial Health System in Colorado Springs, given that Memorial is paying his salary . . . 

"How independent can you be if you know where your checks are coming from?  When you're dealing in the world of experts, some people become experts because they're so well-respected for being neutral, and you know if you hire them, you're going to get an honest, neutral appraisal, and that's why they command the big money.  Other people, they command the big money for exactly the opposite reason."

Whether Colorado Senator Joyce Foster broke conflict of interest rules in sponsoring a sex-offender treatment plan bill when she failed to disclose that a family member attended one of the treatment programs in question. . .

"If it were up to me, our conflict of interest rules would definitely be stronger, but it's hard for me to come up with a rule that would address this situation.  I think this is more of a common-sense situation where she has already paid the price because this kind of embarrassing information has come out."


Help Us Expose Unethical Government . . .

Ethics Watch is on the front lines of the fight to defend Colorado's campaign finance laws, in addition to our work exposing misconduct by public officials and fighting for clean and transparent government.  Tips from Coloradoans are integral to our work, as are individual donations from those who support our mission.  Please consider supporting Ethics Watch with information or a donation or both, so that we can continue to research, identify and expose unethical behavior by our public officials.


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