 This post is a work-in-progress. Please check back for updates.
 Dallas Morning News reports that former Flower Mound Councilmember Paul Stone filed and ethics complaint against the group Flower Mound Cares. Flower Mound Cares is the group that organized and gathered 6,000 signatures recently to force the Flower Mound Town Council to put a referendum on the November ballot for an oil and gas drilling permit moratorium.
While I've not yet been able to get in touch with Mr. Stone, I did get a copy of the complaint, which basically alleges that the group acted as a Political Action Committee (PAC), but failed to file a treasurer appointment as a PAC.
The complaint names five respondents:
- Virginia [Ginger] Simonson
- Darlene Casey
- Amy Yaeger
- Josh Morrissey
- Kris Wise
Ginger Simonson, the group's treasurer, says that 3 of the 5 respondents are not members of the organization, and that she had yet to receive a copy of the complaint.
Alleged Violations
The complaint alleges 16 violations:
Section 252, Election code
1) 252.001 - Failure to appoint a Campaign Treasurer
2) 252.002 - Failure to disclose Contents of Appointment of a Treasurer
3) 252.003 - Failure to Disclose Contents of Appointment by a General Purpose Committee
4) 252.0031 - Failure to disclose Contents of Appointment by Specific Purpose Committee
5) 252.007 - Failure to disclose Authority with whom Appointment Filed: Specific Purpose Committee supporting or opposing a measure
6) 252.009 - Failure to disclose Authority with whom Appointment Filed: General Purpose Committee
Section 253, Election Code
7) 253.031 - Failure to disclose Contributions and Expenditures without Campaign Treasurer
8) 253.033 - Cash Contributions exceeding $100 prohibited
Section 254, Election Code
9) 254.001 - Sub B - Failure to maintain all reportable activity
10) 254.031- Failure to disclose General Contents of Reports
11) 254.121 - Failure to disclose Additional Contents of Reports
12) 254.124 - Failure to disclose Additional Reports of Committee for Supporting or Opposing Candidate or Measure
13) 254.129 - Notice of Change in Committee Status
14) 254.151 - Failure to disclose Additional Contents of Report
Section 255, Election Code
15) 255.001 - Failure to disclose Required Disclosure on Political Advertising
16) 255.007 - Failure to disclose Notice Requirement on Political Advertising Signs.
Evidence and Assertions
Stone asserts that the group should have filed with the Texas Ethics Commission. That would be the case if the group were a General Purpose Committee. At this point, we don't have clarification why he believes that to be the case.
Stone points to signs and advertising expenses as evidence of the expenditure of more than $500. Some of the signs shown actually belong to Flower Mound Citizens Against Urband Drilling ("Just Say NO to Urban Gas Drilling" signs), but there are signs promoting petition sign-ups, and those signs do not bear any political advertising disclosure or the required "no placement in ROW" statement.
Stone has a hear-say assertion about cash contributions over $100, but no direct witnesses listed.
What the Law Requires
Under Texas Election Code, organizations that expend or accept contributions of $500 or more must file with the municipality's election officer an "Appointment of Campaign Treasurer" and file periodic reports of receipts and expenses.
Because Flower Mound Cares is supporting a specific identified measure, they would become a Specific Purpose Committee if they spent more than $500. If the same group supported multiple measures or candidates, they would be a General Purpose Committee.
A PAC may not receive or expend more than $500 without a treasurer appointment in effect. Cash contributions over $100 from one person are not allowed. (Checks and credit cards are ok)
A PAC must keep records of all contributions over $50 in aggregate from one person, and disclose contributions and expenditures at certain intervals. Their first required report for a group supporting a measure on the May 8th ballot would have been April 8th. Simonson says her deadline is actually July 15th, but that she intends to file the report as soon as possible, the dissolve the association.
What F.M. Cares Did
F.M. Cares did in fact file an appointment of a campaign treasurer with Flower Mound City Secretary Paula Paschal on March 31st.
Our Initial Take
(Keep in mind, we've not yet spoken with Stone, and we're not lawyers)
Complaint 1 is partially substantiated because a PAC does not need to appoint a treasurer merely to form and begin action. Even though they started in February, this is not a problem, unless they spent or raised more than $500 before then. Stone alleges just two quantified expenses prior to the March 31st filing of a treasurer appointment:
March 20th - Newspaper Ad - $1,800
March 27th - Mobile Media Ads - $2,500
Simonson responds: "About the signs...some weren't ours (as you note) and the other one shown did not have prior authorization from our association, although I did reimburse them later (no doubt I should have been smarter on the disclosure language on the signs). "
Stone also alleges the services of an attorney and the purchase of signs. Some of the signs shown in the backup photos appear belong to another group. In any case, it's possible that they got signs and attorney services at reduced rates to come in under $500.
Complaint 2 is invalid because as a Specific purpose PAC, FM Cares was required only to file with the Town.
Complaint #3 is invalid because it also related to a General Purpose Committee, and is not applicable.
Complaint #4 is proven untrue because we have a copy of the filing from March 31st.
Complaint #5 is invalid because a PAC is not required to disclose the authority with whom they file. The statute specifieds with whom they file. In this case, the Town.
Complaint #6 appears incorrect because it asserts that F.M. Cares is a general PAC merely because the petition measure they are attempting to support was not completed in time for the May 8th election, and extended to the November timeframe. We think that because the measure itself never changed, the designation as a Specific Purpose Committee is still valid.
Complaint #7: Unsubstantiated. The report filing deadline is April 8th - after the date of the complaint.
Complaint #8: Hear-say. Stone provides no witness names. Maybe it happened, maybe it didn't.
Complaint #9: Unsubstantiated - we don't know if they kept records or not until we see the first required filing.
Complaint #10, 11, 12, 14: Incorrect - Report wasn't due until April 8th (if you interpret their actions as being applicable to the May 8th election)
Complaint #13: Incorrect - We don't think there was a change in committee status just because the measure missed one ballot deadline
Complaint #15: Substantiated - Failure to disclose "Political ad paid for by..." on signs and ads. The photos submitted show signs and ads lacking the required disclosure.
Complaint #16: Substantiated - Signs fail to state required transportation code notice.
We've requested further comment from Stone, F.M. Cares, and the Town. We'll update this as more facts come to light.
Related Links:
- Campaign Finance Guide for Political Committees
- Previous WhosPlayin stories on Flower Mound Cares |
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Re: Former Councilman Filing Ethics Complaint on Flower M...
