COMPLAINT BEFORE THE FEDERAL ELECTION CBHMISSIOAl INTRODUCTXON - 1 The Democratic Senatorial Campaign Committee ("DSCC") 7-_. J _j. c files this complaint seeking an immediate investigation by the 7 c; a > Federal Election Commission into the illegal spending A* practices of the National Republican Senatorial Campaign Committee (WRSCIt). As the public record shows, and an investigation will confirm, the NRSC and a series of ostensibly nonprofit, nonpartisan groups have undertaken a significant and sustained effort to funnel "soft money101 into federal elections in violation of the Federal Election Campaign Act of 1971, as amended or "the Act"), 2 U.S.C. 5s 431 et seq., and the Federal Election Commission (peFECt)Regulations, 11 C.F.R. 85 100.1 & sea. 'The term "aoft money" as ueed in this Complaint means funds,that would not be lawful for use in connection with any federal election (e.g., corporate or labor organization treasury funds, contributions in excess of the relevant contribution limit for federal elections). THE FACTS IN TBIS CABE On November 24, 1992, the state of Georgia held a unique runoff election for the office of United States Senator. Georgia law provided for a runoff if no candidate in the regularly scheduled November 3 general election received in excess of 50 percent of the vote. The 1992 runoff in Georg a was a hotly contested race between the Democratic incumbent Wyche Fowler, and his Republican opponent, Paul Coverdell. The Republicans presented this election as a %ust-win81 election. Exhibit 1. The Republicans were so intent on victory that Senator Dole announced he was willing to give up his seat on the Senate Agriculture Committee for Coverdell, if necessary. Because of the party's loss of the Presidency and poor showing in the Congressional and other Senate races on November 3, this race provided the Republicans an opportunity to save face. This attitude shaped the steps they took to circumvent the legal limits of the law for their candidate in this runoff . *The NRSC is already the respondent in a complaint pending before the Commission for exceeding the coordinated party spending limits of 2 U.S.C. 441a(d) in the runoff. The national and state parties' expenditure limit under 0 441a(d) was $535,608. The NRSC spent almost twice that amount in connection with the Georgia general election and runoff. The amounts detailed in this complaint are in addition to this already excessive spending. SI6193 Donations from M8c Between November 10, 1992 and November 18, 1992 -- after the general election in Georgia, but before the runoff -- the NRSC made $122,000 in soft money contributions to various non-party organizations. Earlier, on October 20, 1992, the NRSC had donated an additional $65,000 in soft money to the same groups for a total of $187,000. Exhibit 2. Before Qctober 20, the NRSC had not made a single soft money donation to any non-party group during the 1992 elections. Four organizations received the money from the NRSC: ..-. ..... .. .~~.. 1. National Right to Life Committee 10/20/92 $15,000 11/17/92 $45,000 2. Coalitions for America 10/20/92 $50,000 11/11/92 $40,000 3. American Defense Foundation3 11/10/92 $30,000 4. Good Government Committee, Montgomery, Alabama 11/18/92 $7 ,000 30n March 2, 1993, the NRSC made an additional donation of $170.000 to ADF for "party building." It would appear that the NRSC has resorted to this tactic again to influence the special Senatorial election in Texas. to4O05-oao1/DA931040.0471 -3- 5/6/93 Use ob NRSC Funds The donation of funds to these organizations on these dates was not coincidental. The organizations are closely tied to and have strongly supported the Republican Party over time. The public record shows that the groups apparently put the NRSC's money to use in the Georgia runoff. I. National Right to bife commieeae This Committee endorsed Coverdell and participated actively in his election during the runoff. The group ran radio ads on his behalf and sent out a mailing attacking Wyche Fowler. At the same time the NRSC was donating $45,000 to the NRLC, its PAC was making over $15,000 in independent expenditures supporting Paul Coverdell. The committee also made a $2,500 contribution to the candidate for the runoff on November 18, 1992, the same day many of the independent expenditures were made. Exhibit 3. 2. Coalitions FOP -erica This group is described in the WarnshinatonRepresentatives (1990) as A conservative lobbying organization which brings together a wide range of organizations for the purpose of coordinating strategy and organizing grass roots participation in the political process. [O40056081/DA93 1040.0471 -4- 5/6/93 Its founder and National Chairman is conservative activist Paul Weyrich. Weyrich noted in a July 1992 interview that the conservative movement should "forget about the presidency and concentrate on Senate races and House races and term limitation initiatives and other things that matter to us. Exhibit 4. CFA is designed to help him meet these goals. Created as a subsidiary of Weyrich's Free Congress Foundation, its principal activity has been the establishment of a satellite network for conservatives -- the Empowerment Network. Exhibit 5. The network is designed to provide information and instructions to conservative activists. As described by Weyrich'in an interview with the Heritage Foundation: We are also seeing the resurgence of local coalitions. James Dobson and Focus on the Family [another subsidiary of the Free Congress Foundation] are putting enormous resources into state family groups, some of which are now organized around the Coalitions for America satellite network, and which are learning to cooperate with each other by virtue of being plugged into Washington. We have just begun to work on this satellite project and it is growing daily. We will have movement headquarters all over America with trained activists who can work on an issue at any time. This will translate politically. Exhibit 6. The network broadcasts to satellite stations around the country. The Free Congress Foundation, a 50l(c)(3) tax-exempt organization, has published instructions for ~~5~1/DA931040.047] -5- 5/6/93 attaching to the network in its newsletter, Emoowerment. Exhibit 7. In the same newsletter, Paul Weyrich explains the need for his organization: Vo help the citizen activist wage a successful struggle against the big-spenders, the pornographers, the corrupt politicians and the unresponsive bureaucrats. As a successful example of this vqstruggle18, Weyrich cites a San Diego citizen who "wrested control" of the I local Republican party organization from "the liberal 1 '.:.~ faction," recruited candidates and mobilized the electorate to vote for them. .. ..-. Many of the receivers for the Empowerment Network are ..... ~ , i Li apparently located in churches. In his Heritage Foundation interview, Paul Weyrich acknowledged that he has tried to organize his various efforts around politically active churches, because of their potential ability to organize, register and turn out the vote. Exhibit 6. CFA has begun to establish state networks. According to the October 19, 1992 issue of Insiqht magazine, the Georgia Empowerment Network was scheduled to open in the fall of 1992. Exhibit 8. In keeping with its 5 501(c)(3) tax status, the Coalition maintains that its activities are nonpartisan. Nonetheless, the Republican Party's appreciation for its efforts is clear. -6- 5/6/93 In 1990, the group received an endorsement from none other than Senator Phil Gram, Chairman of the NRSC. Gram, along with other Republican party luminaries, have participated in CFA's activities. Exhibit 9. The ADF is a S 501(c)(3) organization that operates out of Alexandria, Virginia. The group takes positions on issues of interest to the military (opposing gays in the military and Clinton Administration cuts in the defense budget) and seeks to promote llpublic outreach," including voter registration and turnout among military personnel, both active and retired. Exhibit 10. The ADF actively participated in the Georgia runoff, encouraging voter turnout through public appearances by the organization's founder, Eugene McDaniel, and through radio adverti~ements.~ 4. Other Conservative organizations While there is no direct evidence of contributions from the NRSC in connection with the Georgia runoff, other %SCC hara no information about tho activities of the fourth recipient of NRSC's largese, the Good Government Committee of Montgomery, Alabama. However, the activities described within this Complaint make clear the need for an investigation. [0400SMMI/DA93 IW.047J -7- 5/6/93 conservative groups, most notably the Christian Coalition, were also active on behalf of Coverdell in the run-off. Coverdellqs own media consultants in the race acknowledged that the Coalition sent out over one million pieces of mail during the runoff that favorably compared Coverdell's record to Fowler's. They state: "Paul Coverdell would not be a U.S. Senator today without the efforts of the religious conservatives." Exhibit 11. Curt Anderson, the NRSC's Coalitions Director for the 1992 elections, had appeared at a Christian Coalition leadership meeting in November 9991 at which he actively solicited the support of the Coalition in defeating incumbent Democrats. Exhibit 12. The Coalition is currently under investigation by both the Internal Revenue Service* and the Federal Election Commission, for its political activities. The Coalition has acknowledged that the IRS is conducting an audit of the organization. The FEC has pending before it a complaint filed last year by the Democratic National Committee alleging violations of the campaign laws in connection with 1992 House races. Exhibit 14. similar organization, the Old Time Gospel Hour, founded by Jerry Falwell, was recently fined $50,000 by the IRS and had its tax-exempt status revoked because of political activities.