State Board of Elections penalizes Democratic Governors Association

The State Board of Elections is levying a $2,500 penalty against the Democratic Governors Association, which has funneled nearly $2.2 million to a group running a TV ad critical of Republican gubernatorial candidate Bob McDonnell.

David Allen, campaign finance manager for the State Board of Elections, said he plans to assess the civil penalty to DGA for failing to file timely campaign finance reports.

Now McDonnell's campaign is calling for Common Sense Virginia, the recipient of the DGA funds, to yank its ad.

"It's a dishonest, negative ad funded in apparent violation of Virginia rules," said McDonnell spokesman Tucker Martin. "The ad needs to come down immediately. It's insulting to Virginia voters."

Common Sense Virginia plans to continue airing the ad through this week. McDonnell's campaign started running its first TV ad Monday.

Yoni Cohen, a spokesman for Common Sense Virginia, said it is in full compliance with Virginia law. Its ad criticizes McDonnell for opposing expanded unemployment benefits. McDonnell has said the federal stimulus money to pay for the benefits comes with too many strings attached.

Virginia law requires a 527 committee to register with the State Board of Elections when it gives $10,000 or more to a Virginia candidate or political organization. The 527 committee also must disclose the sources of its money.

The DGA has not reported any source contributions to the state since April 15. Emily DeRose, a DGA spokeswoman, told the Richmond Times-Dispatch on Monday that the association hasn't deposited any checks that it may have received since April 15. The organization has hosted at least one fundraiser since.

Allen said state law requires the groups to report not when they deposit the funds but when they receive them.

"They are required to file a report each time they make a contribution," he said. "Even if they have not received any funds, they still have to file showing zero contributions."

DeRose said today that the DGA interprets the statute differently, but that the group plans to report its donors by tonight.

"We are happy to work with them to figure out a solution to make sure that we are fully complying and transparency is the most important thing for us," she said.

The Virginia law on reporting by so-called 527 committees was strengthened in 2006 after McDonnell's campaign for attorney general drew criticism from Democrats for accepting $2 million from a 527 group, the Republican State Leadership Committee, which did not have to disclose the source of its funds.

McDonnell was narrowly elected attorney general in 2005, defeating Democrat R. Creigh Deeds by 360 votes. Deeds, a state senator, is seeking his party's nomination to run for governor, as is former Del. Brian J. Moran of Alexandria and former Democratic National Committee chairman Terry McAuliffe.

Allen said it's not unusual to assess such penalties to candidates or committees that run afoul of campaign finance laws. DGA could appeal before the State Board of Elections.