OCPF Reports Published quarterly by the Office of Campaign and Political Finance Commonwealth of Volume 12, Number 1 Spring/Summer 2007

From the Director On to the cities Legislative candidates Election season is gearing up in cities across the spent almost $12m in 2006 Commonwealth, with elected Candidates for the House and Senate, 70 candidates reported a total municipal offices, including Senate spent just under $11.9 million in of $4,612,580 raised and $4,596,300 mayor, on the fall ballot. their campaigns for the Legislature spent, down from $7.6 million in both Though we at OCPF provide last year, according to a new study by categories two years before. The the reporting forms that local the Office of Campaign and Political 2006 averages were $65,894 raised clerks and election official Finance. and $65,661 spent – both distributed to these candidates, The 339 candidates a drop of about $28,000 the vast majority file their reported receipts of from 2004. campaign finance reports to How much can $12,398,381 and expendi- In the House, the 269 those local officials. The only you give to all tures of $11,877,068. candidates raised exceptions are candidates for Neither figure is a record candidates? $7,785,801 and spent mayor and councilor-at-large in for aggregate fundraising Page 5 $7,280,786, which were the five largest cities — , or spending; in fact, both decreases of $1.9 million Cambridge, Lowell, Springfield represent a significant drop and $2.7 million, respec- and Worcester — who report from the all-time highs of $17.3 tively, from 2004. The average directly to OCPF. Those million and $17.6 million, respectively, amount raised by a House candidate candidates and their banks file posted in 2004 by 390 candidates. was $28,943, down almost $2,500 their reports electronically. The decrease in activity was also from 2004, and the average spent was While municipal candidates reflected in the breakdown of figures $27,066, a decrease of about $5,200. clearly do not account for the for each chamber in 2006. In the majority of the filers with this Continued on Page 2 office, we are fully aware of the importance of their races in each city. Reporting schedule varies for It’s also important to remember that the campaign finance law applies to local special House, Senate elections candidates as much as it does Recent resignations by some state those seeking state or county The special election for Barrios' seat senators and representatives have led office. All those running for any has been scheduled for Oct. 9, with a to a series of special elections for elected office, state, county or primary on Sept. 11. vacant seats. local, are required to file In the House, two representatives, So far in 2007, two senators have campaign finance reports. The James Leary, D-Worcester, and announced their departure: Senate office to which the reports are Robert Coughlin, D-Dedham, resigned President Robert Travaglini, D- filed may vary, as might the to take positions in the administration Boston, and Jarrett Barrios, D- of Gov. Deval Patrick and Lt. Gov. Cambridge. Travaglini's seat was Continued on Page 6 Timothy Murray. Those seats have filled in late June with the election of since been filled by James O'Day, D- Rep. , D-Boston. Continued on Page 2 OCPF Reports Page 2 Spring/Summer 2007 Study: Legislative candidates spent $11.9m in 2006

From Page 1 The House race featuring the of $353,202. That figure trails the A major reason for the decline in highest spending was in the 3rd Suffolk House record of $370,641 set by total activity was a drop in the number District, where House Speaker DiMasi’s predecessor as speaker, of candidates from 2004, as 51 fewer Salvatore DiMasi, D-Boston, and Thomas Finneran, in 2002. candidates sought legislative office in Republican challenger Kenneth For the most part, the 2006 figures 2006. In addition, last year’s election Procaccianti spent a total of $355,113. followed the trends established in saw fewer contested races and more DiMasi, who was re-elected, ac- previous legislative reports: Demo- unopposed incumbents, which trans- counted for 98 percent of the total crats, who outnumber Republicans in lated into less spending. The total and spending in the race. The spending both chambers, once again outspent average amount spent by challengers total in this race is a new record, their GOP counterparts, both in total dropped significantly from 2004, when surpassing the $347,148 spent in the and on average. Incumbents were several non-incumbents recorded 11th Norfolk District in 2002. That more likely to have higher spending spending much higher than previous four-way race was won by Rep. than those not holding legislative averages. Robert Coughlin, D-Dedham, who office, and contested races also saw The Senate race with the highest resigned his seat earlier this year. greater campaign finance activity. spending in 2006 was in the Berkshire, The top spenders in both chambers Figures in the study are subject to Hampshire and Franklin District, in 2006 were also their presiding further amendment by candidates and where seven candidates spent officers. Senate President Robert committees after its compilation. For $413,630 to succeed outgoing Sen. Travaglini, D-Boston, spent $459,871 the most current data, visit OCPF’s Andrea Nuciforo. The winner, in his unopposed re-election campaign. Electronic Filing System, accessible Benjamin Downing, D-Pittsfield, The spending reported by Travaglini through OCPF’s website at prevailed despite not being the top (who resigned his seat earlier this www.mass.gov/ocpf. spender in the race. The highest year) fell short of the record for a The study is online on OCPF’s amount ever spent for a Senate race Senate candidate, which was the website, at www.mass.gov/ocpf/ was the $809,637 spent in 2002 for the $474,095 recorded by his successor as legrpt06.pdf. The study and other Middlesex, Suffolk and Essex District president, , D-Ply- past studies of campaign finance seat won by Jarrett Barrios, D- mouth, in a contested race in 2004. activity may also be found in the Cambridge. (Barrios recently resigned The top spender in the House in "OCPF Studies" section of the from the Senate.) 2006 was Speaker DiMasi, with a total website. Special elections: Reporting dates for candidates Candidates in special legislative OCPF's online database. The data- From Page 1 elections also file campaign finance base contains reports from legislative West Boylston, and Paul McMurtry, reports, though the schedule varies candidates dating back to 2002. D-Dedham. slightly from that of regularly sched- Those reports may be accessed on As this issue went to publication, a uled elections. the OCPF website, at www.mass.gov/ special election had not yet been Special election candidates file ocpf. Click on either the "Electronic called to fill the House seat vacated reports eight days before both the Filing" or Campaign Finance Reports" when Petruccelli moves to the Senate primary and final elections -- just like tabs. in July. An election to fill a vacancy those running in regular elections. Visitors to the website may also must be called by the applicable The third report for the special find a lineup of scheduled special chamber. election varies from that in the No- elections and their applicable cam- vember election, which is filed on Jan. paign finance filing dates. 20. The special election report is filed 30 days after the special election. Visit OCPF Online at Like other legislative candidates, www.mass.gov/ocpf those running in special elections file their reports electronically using OCPF Reports Page 3 Spring/Summer 2007 Recent Cases and Rulings OCPF audits all campaign finance re- funds to his committee in October 2006. • 06-97: Mayor James Ruberto, Pitts- ports and reviews all complaints alleging As part of the agreement, he also paid field. Did not comply (Use of public violations of the campaign finance law. These $10,000 in committee funds to the Com- resources for campaign purposes); 2/13/ audits and reviews may result in enforce- monwealth, amended his past campaign 07. The use of city resources by a mayor ment actions or rulings such as public reso- finance reports to include the missing or to arrange a press conference in his City lution letters, disposition agreements or re- incomplete information and agreed to pro- Hall office for the purpose of endorsing a ferral to the Office of the Attorney General vide additional disclosure to OCPF candidate was an improper use of public for further action. through 2009, including bank statements resources for a political purpose. The A public resolution letter may be issued in and mid-year paper reports. prohibition was not violated, however, by instances where OCPF found "no reason to the use of the city’s high school for believe" a violation occurred; where "no • Lavalier Alves, Wilbraham (3/27/07) another candidate’s rally, which included further action" or investigation is war- The agreement with Alves, controller of students and the school band. ranted: or where a subject "did not comply" Berkshire Development LLC of Spring- • 06-68: Somerville Divestment Project, with the law but the case is able to be settled field, stemmed from his role in the delivery Somerville. Did not comply (Disclosure of in an informal fashion with an educational of $5,000 in illegal contributions to the ballot question expenditures); 2/20/07. A letter and/or a requirement that some cor- campaign of Springfield Mayor Charles ballot question committee organized to rective action be taken. A public resolution Ryan in 2005. According to the agree- influence an advisory ballot question did letter does not necessarily imply any wrong- ment, Alves used funds from the company not file its Statement of Organization in a doing on the part of a subject and does not president’s personal account to reimburse timely manner. In addition, an organiza- require agreement by a subject. eight fellow employees, as well as himself, tion that made expenditures to influence A disposition agreement is a voluntary for $500 contributions to Ryan. These the question did not file the Form 22 written agreement entered into between the nine contributions violated the campaign disclosure form in a timely manner. Also, subject of a review and OCPF, in which the finance law because they were in fact from a public employee, who was an officer of subject agrees to take certain specific ac- the president’s funds, but were made in the committee, solicited contributions in tions. the name of others. Because Alves was violation of Section 13. OCPF does not comment on any matter considered to have bundled the contribu- • 06-79: Councilor Felix Arroyo, Boston. under review, nor does the office confirm or tions under the campaign finance law, he Did not comply (Recordkeeping and deny that it has received a specific com- was also considered to have donated the reporting). 3/5/07. Candidate received plaint. The identity of any complainant is entire amount delivered, in excess of the five money order contributions of $500 kept confidential. Public resolution letters individual limit of $500. In the agreement, each, which were disgorged by payment and disposition agreements are matters of Alves agreed to pay $20,000 to the Com- to the Commonwealth. In addition, the public record once cases are concluded. monwealth. The Ryan Committee, which candidate’s disclosure reports lacked was unaware of the true source of the con- required contributor information and did Disposition Agreements tributions, purged the funds after learning not disclose specific purpose of approxi- of OCPF’s conclusions. mately $3,000 in expenditures. The reports • Representative Robert Spellane, were amended after OCPF initiated its Worcester (3/1/07) OCPF entered into an Public Resolution Letters review. agreement with Rep. Spellane for viola- • 07-19: Representative John Rogers, tions of the campaign finance law relating • 06-55: Marcos Devers, Lawrence. Did Norwood. No further action to the personal use of campaign funds, not comply (Recordkeeping and reporting (Recordkeeping and reporting); 3/28/07. transfers of funds between his committee of campaign finance activity); 2/8/07. Errors in the committee’s recordkeeping and personal accounts, and failure to pro- Campaign finance reports filed by a process resulted in balance discrepancies vide full disclosure of campaign finance candidate’s committee did not accurately and reporting inaccuracies, including the activity. According to the agreement, reflect the committee’s activity. The underreporting of expenditures in 2004 Spellane made several undisclosed trans- reports contained substantial negative and 2005. The committee notified OCPF of fers between his committee and personal balances and recorded contributions the problem and hired a financial analyst accounts in 2004, 2005 and 2006, which he received from several persons as lump to reconcile its reports with its bank later acknowledged to OCPF were to sat- sum contributions from the persons who statements. Working with OCPF staff, isfy personal financial obligations. From collected the contributions on behalf of the committee filed amendments to December 2005 to August 2006, he with- the committee. In addition, the committee disclose its activity accurately. drew committee funds without making any received thirteen contributions from • 06-76: Daniel Grabauskas, Ipswich, repayment, and ultimately accumulated a business corporations and two money liability of $32,500 owed to his campaign. order contributions in excess of the $50 and Reed Hillman, Sturbridge. Did not To cover the liability to his campaign ac- limit,. To resolve the matter, the commit- comply (Public employee fundraising count that had accrued, Spellane made tee paid $700 and the candidate paid $500 restrictions); 3/30/07. A fundraising letter two payments totaling $36,000 in personal to the Commonwealth. Continued on Page 4 OCPF Reports Page 4 Spring/Summer 2007

agreed to limit his contributions to not comply with Section 13. After OCPF Recent cases candidates during 2008, 2009 and 2010 to contacted the PAC, the committee dis- $5,000 in each of those years, and to limit solved, and none of the funds raised were From Page 3 contributions in 2011 to $4,550. The used to support the nomination or elec- on behalf of Hillman’s candidacy for reduced contribution limits reflect the tion of candidates. lieutenant governor included a reference excess amount of contributions for 2005 • 07-02: Marshfield Public Schools. Did to a public employee, Grabauskas, with and 2006. Beal also agreed to pay a $1,000 not comply (Use of public resources to Grabauskas’s knowledge. After OCPF civil forfeiture to the Commonwealth. distribute information to voters) 5/1/07. brought the matter to the Hillman • 07-15: Mayor William Phelan, Quincy. The use of public resources to produce committee’s attention, the committee No reason to believe (Use of public re- and distribute to students a newsletter refunded or returned all contributions sources for campaign purposes) 4/12/07. supporting an override did not comply received as a result of the letter. The The distribution of a city-funded newslet- with the campaign finance law. The su- committee agreed to dissolve and dispose ter, which included a picture of the mayor perintendent, who had originally con- of remaining funds in accordance with the and information concerning various city tacted OCPF after authorizing the distri- residual funds clause. projects and issues, did not constitute an bution, paid restitution to the town in the • 07-12: John Prindiville, Stoneham. improper use of city resources to further amount of $168 and filed a Form CPF 22A Did not comply (Recordkeeping and the mayor’s re-election. The campaign fi- with the town clerk disclosing the expen- reporting); 4/9/07. Candidate failed to nance law does not prohibit the use of diture of public funds. maintain required records of campaign public resources to distribute mailings to • 07-10: Philip Paleologos, New Bedford. finance activity in 2004 and 2005. The constituents, as long as they do not con- Did not comply (Excess contributions) 5/ committee was unable to provide OCPF tain campaign material or endorsements of 08/07. A candidate received office space with complete records of expenditures and candidacies. from an individual. The candidate initially cancelled checks to resolve issues raised • 07-18: Worcester County Republican reported an in-kind contribution of only during OCPF’s examination of the Women’s Club PAC, Holden, and William $450, though the value of the space used committee’s campaign finance reports. McCarthy, Worcester. Did not comply was approximately $1,500. After OCPF • 07-09: Robert Beal, Boston. Did not (Public employee fundraising restrictions) contacted Paleologos, the committee made comply (Excess contributions) 4/10/07. 5/1/07. A professor at a community col- a payment of $1,050 to the contributor and An individual contributed $26,775 to state, lege was referenced in a flyer as the mas- also amended its campaign finance report county and local candidates in 2005 and ter of ceremonies for a fundraising event to accurately reflect the receipt of the in- $28,675 to such candidates in 2006, in held by the PAC and the Federation of Re- kind contribution. excess of the $12,500 aggregate annual publican Women’s Clubs. The limit on such contributions. In a memo- professor’s serving as a draw for a randum of understanding with OCPF, Beal fundraising event benefiting a PAC did

parents of the date of an election and also law and is therefore not subject the Advisory Opinions to encourage them to vote. Extreme care statutory prohibition on political should be taken to avoid any comment re- fundraising by public employees. OCPF issues written advisory opin- garding the merits of a ballot question or (Gibalerio) ions on prospective activities. Each any appearance of advocacy, including • AO-07-05: This opinion sets forth the opinion summarized below also notes asking parents to vote a particular way. manner in which an association that the OCPF file number and the re- (Randolph Public Schools). receives funds from business corpora- questing party. Copies of all opin- • AO-07-04: This opinion deals with the tions may support a PAC by soliciting ions are available from OCPF and circumstances under which a person who contributions from existing and new online at www.mass.gov/ocpf. performs a service for a municipality may members using the association’s website. be considered a contractor instead of a The association must be reimbursed for all • AO-07-02: Money given to a state public employee. In this case, a recording of the costs incurred in processing the political party committee for the purpose secretary who takes the minutes for a contributions as well as the cost for of paying for a new building for the town’s finance committee and prepares initially designing the portion of the committee would be a “contribution” them at home using her own computer, website which solicits contributions for subject to the campaign finance law. receives no employment benefits, receives the PAC. In addition, the PAC and the Contributions are subject to limits, IRS Form 1099 rather than a W2, does not association must comply with the cam- prohibitions and disclosure requirements receive supplies or administrative facilities paign finance law’s recordkeeping and under the campaign finance law. (Ferro). from the town, and is not subject to reporting requirements. (Massachusetts supervision by municipal officials is not • AO-07-03: A school department may Motorcycle Association) “employed for compensation” by the town use its automated phone system to advise for the purposes of the campaign finance OCPF Reports Page 5 Spring/Summer 2007 FYI: Total personal contributions are limited yearly

When you think of limits on contri- ceiling, however, runs over a two-year to an individual to be aware of and to butions to candidates in Massachu- election cycle and is now $42,700. comply with the personal limitation. setts, one specific number may come Contact the Federal Election Commis- The $12,500 cap applies to contri- to mind: five hundred. sion in Washington for more informa- butions to candidates only. There is no The maximum amount an individual tion; the commission's website is aggregate limit on what an individual may give to a candidate for any state, www.fec.gov. may give to political action committees county or local office is $500 per cal- Because federal candidates do not or ballot question committees. endar year. fall under the Massachusetts campaign While there is a $5,000 annual limit (The only exceptions to this limit finance law, contributions to them do on individual contributions to any politi- are lobbyists, who are limited to $200 not count toward the $12,500 cap. cal party, there is no aggregate limit on per candidate, and minors, whose total However, the state's cap includes total contributions to all parties. The contributions to all candidates may not contributions to all Massachusetts can- limited number of registered parties, exceed $25.) didates on the state, county and local however, serves as a de facto limit on In addition to that $500 limit, how- levels. Therefore, an individual's con- aggregate contributions. There are ever, there is another ceiling to re- tributions to candidates for selectman currently four registered state parties: member: $12,500. and School Committee would count to- Democratic, Republican, Green/Rain- That's the maximum in total contri- ward the limit along with those given to bow and the newly organized Working butions a person may make to all can- candidates for governor and the state Families Party. Four times the $5,000 didates in a calendar year. Legislature. annual limit per party means a $20,000 Section 7A of M.G.L Chapter 55, Candidates and committees some- annual cap on an individual's total con- the campaign finance law, sets that times ask OCPF how they can ensure tributions to parties. limit on an individual's contributions to that their contributors do not exceed For more information on contribu- any candidate, including that the $12,500 annual limit. Given that tion limits, visit the Legal Guidance candidate's campaign committee. candidates are not aware of all of their OCPF online at www.mass.gov/ocpf. Federal law also restricts total indi- contributors' other donations, the can- That section contains a chart of contri- vidual contributions to candidates for didates are not expected to be respon- bution limits to various candidates and president, the U.S. Senate and the sible for making sure their contributors political committees. U.S. House of Representatives. That follow this section of the law. It is up

Updated committee lists available To contact OCPF: Up to date lists of all candidates three types of lists are available. and committees on file with OCPF are While the printed candidate and By mail: now available from the office. committee lists are updated occasion- John W. McCormack The lists have been updated to in- ally, the website also contains an online Building clude all active candidates and com- database that is updated daily. It may One Ashburton Place mittees through June. be found in the "Online Datebase" sec- Room 411 Three lists are available: registered tion of the same candidates and com- Boston, MA 02108 candidates; political action committees, mittees page. including people's committees, and Also on the page is a link that leads By phone: state ballot question committees. to a list of the candidates and commit- (617) 727-8352 The lists are available in PDF for- tees that have most recently registered (800) 462-OCPF mat from the OCPF website at with OCPF. (toll free in Mass.) www.mass.gov/ocpf. That list is continually updated, Click on "Candidates and Commit- making it the most reliable tool for By e-mail: tees," then go to the bottom of the tracking new candidates and commit- [email protected] page to "Printed Lists." Links to all tees . OCPF Reports Page 6 Spring/Summer 2007 A reminder: Filing deadlines for city elections

Hundreds of candidates are now electronically with OCPF, in conjunc- per only; they are not e-filed. making plans to run for mayor, city tion with their banks. The reports are Reports for the local filers are due council, school committee or other filed monthly, with their frequency in- eight days before each election. If elected offices in more than 40 cities creasing to twice per month in the last there is a preliminary election any- across the Commonwealth. month months of an election year. where in the city, all candidates must All candidates are required to file The e-filed reports from those can- file, even those whose races are not on campaign finance reports, most with didates may be found on OCPF's Elec- the ballot until November. The third, their city clerk or local election com- tronic Filing System database, which year-end report for this election is due mission. can be accessed through on Tuesday, Jan. 22. City candidates file reports in one www.mass.gov/ocpf. Municipal reporting forms are avail- of two ways, depending on the office Candidates for ward or district able from local election offices or from they are seeking. councilor, school committee and any OCPF. In the state's five most populous other elected municipal offices in these Municipal forms may be down- cities – Boston, Springfield, Worcester, five communities, as well as all candi- loaded from OCPF's website at Lowell and Cambridge -- citywide dates in all other cities, file directly www.mass.gov/ocpf. Click on the candidates (mayor, councilor-at-large with their local election officials. "Reporting Forms" tab at the top of the but not school committee) file reports Their reports are submitted on pa- home page.

setting, it is essential that Seminars in other cities are also From the Director candidates file on time. being scheduled. Candidates From Page 1 Whether they e-file or not, all should check with their local means of filing (electronically with candidates are encouraged to use election officials or OCPF to see if OCPF vs. on paper with the local OCPF’s free recordkeeping their city is scheduled for a clerk), but other things are the same software to keep track of their seminar. for all, such as the contribution activity. The software may be As always, local candidates with limit and the penalties for not filing. downloaded from our website, any questions about filing or any Unlike some other states, www.mass.gov/ocpf. Click on the other aspect of the campaign Massachusetts does not have “Electronic Filing” tab. finance law are encouraged to individual contribution limits that OCPF staff have scheduled contact us or their local election vary according to the office sought. filing seminars in the five cities official. In those states, for example, a whose candidates report to us. The contributor could give much more seminars address the e-filing Mike Sullivan to a candidate for governor than to process, as well as other Director one running for local office. In compliance issues. Massachusetts, however, the $500 annual contribution limit applies to all candidates, from governor to selectman to school committee. Any candidate who does not file Get us online a report is subject to a civil fine of $10 per day, with a maximum OCPF Reports is distributed to subscribers by penalty of $2,500 per report. At e-mail only. To get on our electronic distribution list, OCPF, the fine is automatic; on the send your e-mail address to local level it is assessed after a [email protected] or call us at candidate is referred to us by the (617) 727-8352 or (800) 462-OCPF. local election official. In either