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Friday, May 12, 2006 - Last Updated: 9:18 AM 

Nonprofit under fire over ads

Ethics board says political group missed financial disclosure deadline

BY JOHN FRANK
The Post and Courier

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COLUMBIA - A nonprofit political group that promotes private school vouchers failed to file financial disclosure forms Thursday as required by state law, State Ethics Commission officials said.

A spokesman for the group in question ? South Carolinians for Responsible Government ? said it was no mistake.

"We have not heard anything from the Ethics Commission and we have not filed anything," Denver Merrill said. "Nobody told us anything, so we are doing what we always have."

Missing the deadline means the controversial group could face an investigation by the Ethics Commission and potentially faces a lawsuit.

The group, which advocates school choice and limited growth, is coming under fire this election season for airing radio advertisements and mailing campaign literature targeting a dozen House Republicans seeking re-election in the June 13 primary.

State ethics laws require an organization to file records detailing contributions and expenditures if it spends more than $500 in an attempt to influence the outcome of the election within 45 days of the primary.

Cathy Hazelwood, assistant director of the Ethics Commission, said the group meets the criteria after it spent $3,400 last week on radio ads that asked listeners to call certain lawmakers about school choice legislation.

Merrill said the radio spots fit within the group's mission to educate voters. He said he thinks state ethics laws don't apply to the ads because they aren't an attempt to influence the election and don't include words such as "vote for" or "vote against."

He said the ads purchased May 1 were timed for the House debate about a plan to give parents tax breaks if they send their children to private schools.

"I don't know how anyone could have a legitimate issue on that," Merrill said. "That ad had absolutely nothing to do with the election. That was a pure issue-advocacy ad."

The group says information about its financial backers should be protected, but critics want light shed on what they say is an influx of out-of-state money.

House members under attack, including Rep. Tom Dantzler, R-Goose Creek, and campaign finance groups say they think the Ethics Commission should settle the mixed legal interpretations.

"It's pretty obvious they are involved in trying to influence the election," said John Crangle, executive director of Common Cause, a liberal-leaning watchdog group. "They should report how they are getting the money and how they are spending it."

Rep. Bill Cotty, a Columbia Republican who faces primary opposition from a school choice supporter, was the subject of the radio ads.

He recently requested an opinion from the Ethics Commission about the legality of the group's activities.

But a full-blown investigation into whether the group broke state law requires a formal complaint, which the commission hasn't received yet.

Hazelwood said the commission would discuss the situation when it meets next week. But any action would come after the election is over because the investigation would take at least six months to complete.

"We can't make it stop," she said. "Filing a complaint doesn't make it stop."

If the commission doesn't go far enough, Terry Sullivan, a political consultant for Cotty, hinted that legal action is a potential remedy.

"Some of our candidates are inclined to do everything in their power to stop SCRG from breaking the law," he said.

Reach John Frank at jbfrank@postandcourier.com or (803) 799-9051.