Colorado Supreme Court to review Ethics Watch case

Tuesday, the Colorado Supreme Court agreed to hear arguments in a case brought by Ethics Watch in 2008 against the Senate Majority Fund and the Colorado Leadership Fund. Ethics Watch is challenging a lower court ruling that permits these two 527 groups to run ads in support of state candidates without adhering to political committee contribution limits.

Ethics Watch Director Luis Toro issued the following statement in response: "We’re pleased that the Colorado Supreme Court has agreed to look at the important question of what counts as an ‘expenditure’ under Colorado law. The implications of this case go beyond just the issue whether a 527 group can skirt contribution limits simply by avoiding the use of so-called ‘magic words’ like ‘vote for’ or ‘defeat.’ It will also have important implications for disclosure requirements for outside groups that seek to influence state and local elections in Colorado.

Colorado Ethics Watch filed the campaign finance complaint aganst Senate Majority Fund (SMF) and Colorado Leadership Fund (CLF) on September 10, 2008, alleging that the two "527" political organizations acted as political committees, subject to registration requirements and contribution limits, when they raised money and paid for television and print ads supporting various state legislative candidates in the 2008 election cycle.

The case will be briefed after the New Year, and oral argument is expected some time in the spring of 2011, with a written decision to follow.