L et?s face it. Campaign finance laws don?t work. Edward St. John is just the latest example of why.
Maryland prosecutors fined the developer last week for reimbursing vice presidents at his real estate company for making campaign contributions to then-Baltimore City Mayor Martin O?Malley and to Baltimore County Executive Jim Smith. And just to keep things balanced, his vice presidents also gave tens of thousands to the Maryland GOP?s federal account in the last three days of 2006.
Conduit donations are illegal ? but very difficult to enforce unless someone squeals within a company with evidence of an explicit quid pro quo.
The thing is, you don?t have to break election law to get around limits. Loopholes at state and federal levels make it easy. In Maryland those limits are $4,000 per candidate and a total of $10,000 for all candidates/campaign finance organizations in one four-year election cycle.
How can you do it? Set up a limited liability company or partnership ? or four or five. Each can donate up to the legal limit, even if owned by the same person or corporation. To donate, the LLC or LLP must first register with the Maryland Department of Assessment and Taxation and designate a resident agent and address in Maryland. The owner is not required to make public his or her name.
Maryland politicians benefited from more than $6 million as a result of this loophole in the 2003-2006 election cycle, according to a report from Common Cause of Maryland.
We take no issue with the amount ? only the secrecy with which it was distributed. Hiding money is a recipe for hiding agendas and influence, and is contrary to a free and fair election process.
It does not matter how big or small the amount. At the federal level, contributions less than $200 do not have to be reported by recipients. That makes it easy for contributors to exceed federal limits without detection and for foreigners, who are barred from supporting U.S. candidates, to give money.
Running for office is expensive ? especially for challengers who need to spend more to win name recognition. Those who are good at raising money should not be punished for it. But they should not be allowed to hide sources. Instead of banning LLC and LLP donations, the state should require names and contact information of the ownerand officers of the company. Each donation, including the name of the company and its owner(s) and officers, should be posted upon receipt at the State Board of Elections Web site. Federally, campaign groups and candidates should disclose the names of every donor and the amount donated, regardless of whether the law requires them to do so. Corruption can not hide in perpetual sunlight.
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