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ees.CitizensUnion believesthisspendingshouldberobustlydisclosedsothatvotersknowtheentitiesandindividuals behindpoliticalcommunicationsandcantakeintoaccountsuchinformationwhencastingtheir vote.Whilewebelievethelawshouldbeclarifiedsothisinformationwouldbedisclosed accordingtoaschedulethatmirrorstherhythmsofthecampaignseasonwiththeStateBoardof Elections,therequirementthat501c4organizationsregisterwiththeCharitiesBureauistheonly existingmechanismtoacquireimportantidentifyinginformationabout501c4organizationsthat engageinelectioneeringcommunications. TheNewYorkTimes2andtheRochesterDemocratandChronicle3bothreportedlastmonththat CommonSensePrinciples,basedoutofVirginia,hassentmailerstoregisteredvotersattacking Democraticcandidatesinseveralstatesenatedistricts.Theorganizationswebsiterevealsmail piecessenttovotersinthe55thsenatedistrictchastisingDemocraticcandidateTedO'Brienfor supportingajudgewhowasaccusedofsexualharassment.Likewise,piecesofmailsenttovoters in15thsenatedistrictscoldDemocraticincumbentJoeAddabbofortakingcampaigncontributions
www.commonsenseprinciples.com NewYorkSenateRacesFloodedbyMoneyfromOutsideGroups,NewYorkTimes.October16,2012.Availableat: http://www.nytimes.com/2012/10/17/nyregion/3newyorksenateracesfloodedbymoneyfromoutside groups.html 3 NewYorklawallowsPACbackerstostayanonymous,DemocratandChronicle.October8,2012.Availableat: http://www.democratandchronicle.com/needlogin?type=login&redirecturl=http%3A%2F%2Fwww.democratandchron icle.com%2Farticle%2F20121008%2FNEWS01%2F310080020%2FCommonSensePrinciplesPAC%3Fnclick_check%3D1 Citizens Union of the City of New York 299 Broadway, Suite 700 New York, NY 10007-1976 phone 212-227-0342 fax 212-227-0345 citizens@citizensunion.org www.citizensunion.org Peter J.W. Sherwin, Chair Robert Abrams, CUF President Dick Dadey, Executive Director
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CitizensUnion LettertoAttorneyGeneralSchneidermanonCommonSensePrinciples
11/7/2012 Page2
fromthegamingindustryandnotsponsoringaconstitutionalamendmenttoestablishcodesof ethicsforeachbranchofgovernment.AthirdmailerattacksSenateDemocraticcandidateGeorge Latimer,whoisrunninginanopenseatinWestchester(senatedistrict37),forusingcampaign fundsforpersonaldinners,goingagainstacountyleveltermlimitspledge,andformissingvotes. CommonSensePrinciplesin2010ranattackadsagainstthenStateSenatorsDarrelAubertine, BrianFoley,andBillStachowskiinadditiontoSenatorsDavidValesky,AndreaStewartCousins, andSuziOppenheimer.4 TheorganizationisseeminglynotrequiredtoreportitscampaignspendingtotheStateBoardof ElectionsbecauseoftheBoardsinterpretationofthelawthatonlyrequiresdisclosureof independentexpenditureswhenexpressadvocacylanguagelikevotefororvoteagainstis usedinpoliticalcommunications.Consequently,votersareunawareofwhoissendingthemthese politicalmessages.Thislackofdisclosurecanbepartiallyoffset,however,bythediligent reportingofjournalistscoveringtheseracesandbyyouroffice. ChapterV(CharitableUsesandPurposes),Title13oftheNewYorkCodeofRulesandRegulations forRegistrationofCharitableOrganizations,TrustsandEstates,Part91.2statesthefollowing: Article7AoftheExecutiveLawrequiresregistrationofcharitableandothernonprofit organizationsthatsolicitcontributionsfromNewYorkState(includingresidents, foundations,corporations,governmentagenciesandotherentities).Section8.14ofthe Estates,PowersandTrustLawrequiresregistrationofcharitableorganizationsthatare incorporated,areformed,orotherwiseconductactivityinNewYorkState.5 CommonSensePrinciplesisnotcurrentlyregisteredwiththeCharitiesBureauinyouroffice, whichraisesthequestionofwhetheritisviolating8.14oftheEstates,PowersandTrustsLaw,as itappearstoconductactivityinNewYorkStatebysendingmailerstovotersinselected campaigns.ItisalsopossiblethatiftheorganizationissolicitingfundsinNewYorkState,itisin violationofArticle7AoftheExecutiveLaw.Multiplepubliclyavailablesourcesandthe organizations2010990taxformsrevealthatCommonSensePrinciplesisasocialwelfare organizationfoundedin2010asa501c4organizationtofurtherthecommongoodandgeneral welfareoftheCitizensoftheUnitedStatesofAmericabyadvocatingsmallergovernmentand responsibletaxandbudgetpoliciesbyengage[ing]inissueadvocacydirectmailtoindividuals aboutbudgetpoliciesincloseproximitytoanelection.6In2010itraised$2.6millioninrevenue
CitizensUnion LettertoAttorneyGeneralSchneidermanonCommonSensePrinciples
11/7/2012 Page3
fromunknownsourceswhilespending$2.5million.7ItsaddressisPOBox96inMidlothian, Virginia,231130096.ItstaxIDnumberis800580228.8 CitizensUnionrequeststhatyourofficeinvestigatewhyCommonSensePrincipleshasnot registeredwiththeCharitiesBureauineachyearsince2010.Asyouknow,hadCommonSense PrinciplesregisteredwiththeCharitiesBureau,itsorganizationalstructure,activities,bylawsand certificateofincorporationwouldbemadeknowntothepublic.CommonSensePrinciplesmay alsoberequiredtofileannuallydetailedfinancialinformationincludinganyprofessional fundraisershired,contactinformationforsuchfundraisingprofessional(s),theservicesprovided andthetermsofthecontractandfeespaid. CitizensUnionencouragesyourofficetopursuecivilorcriminalactionsorproceedingsas necessaryforfailuretoregisterandfilereportspursuanttoanyprovisionofETPLArticle8or Article7A,anyotherlaworcommonlaw. Wealsorequestthatyou,aspermissiblebylaw,referanyforthcomingfinancialinformationthatis reportedbyCommonSensePrinciplestotheJointCommissiononPublicEthics(JCOPE).As CommonSensePrinciplescampaignadsareconsideredlobbyingratherthanindependent campaignexpendituresbytheStateBoardofElections,wewanttoensurethatafterJanuary1, 2013,JCOPEcandeterminewhetherCommonSensePrinciplesmeetsthefinancialthresholdsfor reportingsourcesofincomeforlobbyingactivitiesfortheprevioussixmonthsthatincludesthe periodduringwhichthesemailershavebeensent. WhileregistrationandsubmissionofannualreportswiththeCharitiesBureauisinsufficientin providingtimelyinformationtovotersaboutthecampaigncommunicationsofthirdpartypolitical actors,itisessentialthatyou,asastatewideelectedrepresentativeofinNewYork,useallexisting lawsatyourdisposaltopreventanonymousentitiesfrominfluencingourelectionsthroughsham issueadvocacy. Welookforwardtoyourresponseandstandreadytoassistyouinhandlingourcomplaint. Regards, AlexCamarda DickDadey ExecutiveDirector DirectorofPublicPolicy&Advocacy
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