A state House panel approved massive changes in campaign finance laws Tuesday despite a Democrat lawmaker pointing up what he said is a laundry list of flaws and loopholes that will open the door to more dark money.
The legislation by the secretary of state's office surrenders its right to decide when groups are formed for primarily political purposes. That's significant because currently those groups need to report not only what they spend but the sources of that cash.
Rep. Ken Clark, D-Phoenix, said the measure would eliminate requirements for groups to register before they make independent expenditures on behalf of political candidates. He argued that would allow groups to blow into Arizona, dump a bunch of money on a race right before the election, and be gone before anyone could know who's funding it.
Elections Director Eric Spencer, who crafted much of the legislation, said any last-minute blitz of TV commercials still would have to contain the name of the group.
But Clark said that provides little comfort. "So somebody creates 'Arizonans for Ice Cream, Pie and Puppies' and hits every legislator up here...with clearly untrue accusations. Nobody's going to really know what that's all about until the next time they file their IRS filings," he said.
Spencer did not dispute that the legislation could leave voters in the dark about who exactly is behind seemingly nice-sounding groups. But he told lawmakers that doesn't mean it's the role of government to help them find out.
"I also think voters are smart enough to understand that when they are peppered with a political message with an anodyne title that they should discount the validity of that message," Spencer said.
Those limits on what voters could learn about political donors did not bother Rep. J.D. Mesnard, R-Gilbert, who said some times too much disclosure is actually a bad thing. "I do err on the side of folks who have the right to influence their elected officials because their elected officials are going to influence them and their way of life," he said.
Mesnard said the end result of the kind of disclosure some people want is a registry of every person and what they've donated to, something he called unacceptable.
Meanwhile, Clark also took issue with the bill eliminating the $100 spending cap on food and entertainment for fundraising parties. Clark said that creates a huge loophole for big donors to help out candidates in a very public way with lavish fundraising parties.
But Spencer said he does not see a problem with that. "House parties are an integral part of campaigning in Arizona. And, from a public policy perspective, why should we hamstring them into having a mediocre party with only $500 in food and invitations? This strikes me as a particularly legitimate area where we can be hands-off and let folks have a nice party," he said.
Finally, there's the question of punishment for those who violate whatever regulations are left. Current law provides an automatic penalty equal to three times the amount spent illegally. Spencer's measure reduces that to the amount of overspending, though he said it could be higher if those bringing the complaint convince the secretary of state the violation merits a higher fine.
The whole debate got the attention of attorney Tom Ryan. He's best known for his high-profile roles in some political issues, ranging from the successful recall of Senate President Russell Pearce to digging up information that eventually led to Susan Bitter Smith resigning from the Corporation Commission.
Ryan chided Secretary of State Michele Reagan, her elections director and all the Republican lawmakers pushing these changes. "Nobody but nobody woke up this morning and said the problem with Arizona politics is there's not enough money and there's too much requirement for disclosure. This bill is taking our state in the wrong direction."
Ryan told the Elections Committee he has a backup plan if lawmakers pursue the legislation-- he'd collect the required 76,000 signatures on petitions to put the measure on hold and give voters the last word in November.