July 20, 2017 02:41 PM UTC

Beauprez-Backed Organization Still Fighting Court Ruling

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• by: Jason Salzman

(Promoted by Colorado Pols)

It’s been three months since a Denver judge ordered Colorado Pioneer Action (CPA), a political committee run by former U.S. Rep. Bob Beauprez (R-CO), to pay a $17,735 fine for violating campaign finance laws and to register formally as political committee, requiring CPA to disclose its donors.

But Beauprez hasn’t produced the cash or the names of the donors. What’s up?

After Administrative Law Judge (ALJ) Robert Spencer issued his ruling that CPA failed to register and file reports as a political committee during the last election, CPA appealed, and Matt Arnold of Campaign Integrity Watchdog (CIW), which brought the case against CPA, guesses the case won’t be heard for a few months, at the earliest.

After the appeal was filed, Colorado Secretary of State Wayne Williams’ office issued an “enforcement order and stay of action.”

“We have stayed the action in CPA pending appeal,” said Suzanne Staiert, Colorado Deputy Secretary of State (SOS), who signed the order, via email. “This is required under our rule. If CPA is unsuccessful, then our practice is to invoice for payment. We have no reason to believe that CPA would not pay if they lost the appeal.”

Arnold thinks Williams office should have invoiced CPA for the fine immediately after the ALJ decision, even though the case was appealed, telling me on Wednesday, “Upon imposition of the penalty, the Secretary of State should have immediately invoiced CPA for the fine, and it’s not discretionary.”

Luis Toro, Director of Colorado Ethics Watch, also reads the applicable SOS rule as only barring “enforcement actions (i.e., lawsuits to enforce the order in district court) and not referral to collections.”

“My opinion is that the Secretary has discretion to file or not file an enforcement action in district court, but that he does not have discretion to refrain from issuing a fine invoice and referring it to collections if unpaid – unless a stay is issued by the ALJ or the Court of Appeals,” Toro told me via email.

“The bottom line is that yes, unless the ALJ or the Court of Appeals issues a stay, the Secretary should send out an invoice for the unpaid fine and refer it to collections if not paid. But CIW is not prevented from filing its own enforcement lawsuit, and in fact that’s what the law contemplates when the Secretary fails to act to enforce an ALJ decision.”

Arnold is concerned that even if Beauprez loses his appeal, filed by high-powered Holland Hart, Williams won’t instruct the state collections office to get the funds from CPA.

Asked if her office has instituted a policy not to collect fines, Staiert wrote, “We do not have a policy ‘not to seek the collection of such fines’, rather we look at the assets of the committee to determine if collection is viable only after a failure to pay.”

Toro pointed out that the letter from Williams’ office “doesn’t say that Matt Arnold can’t file his own enforcement action, in fact, I read it as saying that he can do so.”

The enforcement mechanism, which could compel CPA to pay its fine, register as a political committee, and disclose its donors, is a lawsuit in district court.