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The Alaska fee governing marketing campaign finance ethics deferred on Wednesday a choice on a grievance filed earlier this month alleging that the Republican Governors Affiliation was illegally spending cash in Alaska to assist Republican Gov. Mike Dunleavy’s reelection bid.
The Alaska Public Workplaces Fee deferred a choice on the grievance to the physique’s govt director, permitting A Stronger Alaska, the unbiased expenditure group funded by the RGA, to proceed spending cash to assist Dunleavy earlier than the November election.
However of their ruling Wednesday, which got here after two full days of deliberation by the commissioners, the commissioners issued a stark warning to the RGA and A Stronger Alaska, saying they “proceed to make expenditures at their very own peril.”
In a grievance filed earlier this month, two watchdog organizations — the Alaska Public Curiosity Analysis Group and the 907 Initiative — alleged that the RGA had created A Stronger Alaska as a shell entity to permit them to spend cash instantly in Alaska towards state marketing campaign finance legislation. The RGA reported transferring $3 million to the newly created A Stronger Alaska group in February 2021. However proof uncovered by the grievance revealed that there was little separation between the RGA and A Stronger Alaska.
[2022 Alaska voter guide: A resource for the Nov. 8 election]
David Rexrode, the manager director of the RGA, can also be the highest officer of A Stronger Alaska. Erim Canligil, the chief monetary officer of the RGA, is the highest monetary officer of A Stronger Alaska. A Stronger Alaska’s financial institution statements are below the RGA title. Canligil and Rexrode testified earlier than the fee that they work for A Stronger Alaska on a volunteer foundation whereas on the RGA payroll, and that A Stronger Alaska has no separate cellphone quantity or deal with.
Underneath Alaska statute, an unbiased expenditure group should register with the Alaska Public Workplaces Fee prior to creating expenditures in assist of or in opposition to a candidate. The Republican Governors Affiliation by no means registered with the fee. An unbiased expenditure group can also be forbidden from utilizing “a fictitious title” below state statute.
“Failure to observe these legal guidelines invitations a number of reporting violations below Alaska’s marketing campaign finance legal guidelines, as soon as contributions and expenditures are made,” the commissioners wrote of their choice.
A Stronger Alaska has already spent greater than $600,000 on marketing campaign mail supporting Dunleavy, together with $300,000 reported earlier this week. It nonetheless has greater than $2 million to spend.
“The proof earlier than the fee up to now exhibits that Republican Governor’s Affiliation did little to distance itself from A Stronger Alaska,” commissioners wrote, earlier than instructing fee employees to establish whether or not Rexrode had “sole authority to make expenditures for A Stronger Alaska.”
“Mr. Rexrode and Mr. Canligil did little to assuage the Fee’s concern that the Republican Governors Affiliation and its govt committee has final management over A Stronger Alaska’s actions,” commissioners wrote.
The commissioners acknowledged of their choice that A Stronger Alaska may proceed to spend the cash in its account with no ultimate choice on the grievance. However commissioners wrote that “whether it is later decided that enough separation between the 2 entities doesn’t exist, A Stronger Alaska will proceed to make expenditures at its personal peril” and that will expose the RGA to “penalties.”
Fee employees, who are actually charged with finishing the investigation, weren’t instantly out there for questions.
Additionally on Wednesday, an analogous grievance was filed towards the RGA by a Michigan watchdog group for related exercise by the affiliation within the state, accusing a Michigan group of appearing as “a entrance” from the RGA.
Rexrode testified final week that the RGA, which is concerned in all 36 gubernatorial races this yr, additionally operates related state-specific teams in Vermont, New Hampshire, Michigan and Wisconsin, which are additionally carefully linked with the RGA. Marketing campaign finance legal guidelines are dictated on a state-by-state foundation.
Aubrey Wieber, the manager director of the 907 Initiative, known as the fee’s choice “a robust warning to the RGA that they’re being watched and that any motion that they take going ahead may have large penalties.”
Attorneys representing A Stronger Alaska and the RGA didn’t instantly reply to questions concerning the choice. A spokesperson for Dunleavy’s marketing campaign didn’t instantly reply to a request for touch upon the ruling.
That is the second grievance filed by the 2 watchdog organizations concentrating on the pro-Dunleavy group. The primary grievance, filed final month, alleged that Dunleavy schemed to make use of public funds to bankroll his marketing campaign and coordinated with A Stronger Alaska.
After an emergency listening to held earlier this month, the fee dominated it didn’t have sufficient data to decide and ordered its employees to conduct an investigation into the allegations, successfully delaying the result till after the Nov. 8 election.
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