Posted on August, 26 2010 5:48 PM

http://blogs.orlandosentinel.com/news_politics/2010/08/chiles-527s-are-legal-money-laundering.html

TALLAHASSEE — Independent candidate for governor Bud Chiles took on political spending committees Thursday – standing outside Tampa accountant Nancy Watkins’ office and declaring it the site of “legal money laundering.”

Chiles said he wants political spending committees dubbed 527s to be required to disclose their $500-plus donors on every television ad or mailer they distribute, including when one such organization gives money to another to use for or against a candidate.

Watkins was targeted because she’s the accountant for 37 committees listed as active this election cycle. The organizations have taken in $21.7 million, most of it from corporations and industry associations, looking to promote or condemn a candidate or issue – but keep their involvement largely shielded from voters.

“If you borrow money from a bank you have to sign your name and that’s what we want for these corporations,” Chiles told the News Service of Florida. “But usually, there’s a reason they don’t want their names easily associated with these groups.”

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In primary contests completed Tuesday, 527 groups were responsible for some of the hardest-hitting TV spots and mail pieces, particularly in the Republican governor’s race and Cabinet contests for attorney general.

Republican gubernatorial nominee Rick Scott, while pouring $39 million of his own money into his campaign, also put another $11 million into advertising from a 527 he controlled called “Let’s Get to Work.”

His rival, Bill McCollum, also was the beneficiary of more than $13 million in 527 support, including spending by the Florida First Initiative, which drew money from the Florida Liberty Fund, associated with House Speaker-designate Dean Cannon, R-Winter Park, and the Freedom First Committee led by Sen. Mike Haridopolos, R-Merritt Island, in line to be the next Senate president.

Chiles wants such money shuffling also disclosed by 527s, which draw their name from the section of the IRS code that makes them tax-exempt.

Although Florida law currently requires 527s to report their contributions and spending on a website within five days of the activity, Chiles and many elections experts say most voters are unlikely to spend time tracking donations to groups like Floridians for a Better Tomorrow, Floridians for Strong Leadership, or even Citizens for Transparency in Government – all 527s for which Watkins keeps the books.

Watkins said her firm not only lives by the letter of state law, it complies with its spirit of disclosure, as well.

“He’s taking way too simplistic an attitude toward 527s,” said Watkins. “It’s the job of the press to find out who’s giving to an organization if it’s active in a campaign. You don’t have to attach `War and Peace’ to every mailer or TV ad going out.

“Also, when do you link a contributor with a campaign?” added Watkins, who works exclusively for Republican candidates and issue 527s, usually financed by business groups. “One contributor may have given to a committee six months ago on a particular issue that is not what the group is spending on now.”

Chiles said that he would accept no help from 527 organizations in his campaign for governor. With polls showing Chiles, son of late Democratic Gov. Lawton Chiles, drawing double-digit support in the governor’s race, mostly from Democrats, some campaign observers speculate that Republican allies will launch a 527 supporting him – in an attempt to dig into Democrat Alex Sink’s voter base.

“There will be no 527 money helping our campaign,” Chiles said. “I won’t collude or accept any of it. And if a 527 starts pushing me, I’ll tell them to shut it down.”

Chiles said he wants to promote legislation next spring that would enact his disclosure plan. Campaign finance critics say Chiles’ proposal would help voters – while blunting the role of big money in races.

“When you’re able to see in real time who is behind a negative ad or mailer, that would help voters see who is really behind the message,” said Dave Levinthal, a spokesman for the Center for Responsive Politics, a Washington, D.C., non-profit that tracks campaign financing. “When voters are trying to figure out who is the `committee for peace, love and justice,’ that’s just not fair to anybody.”