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Thursday, October 20, 2011

Breaking News: After Amending Its Election Finance Filing To Show David Williams' Father In Law Is Sole Contributor To Restoring America PAC, Kentucky Judge Thomas Wingate Lists Restraining Order Against Group Targeting Steve Beshear.

Judge lifts ban on political group's TV ads
By Jack Brammer and Beth Musgrave

FRANKFORT — A Kentucky judge agreed on Thursday to lift a restraining order that barred a third-party political group from running TV ads that criticize Democratic Gov. Steve Beshear and support Republican gubernatorial candidate David Williams.

At a hearing Thursday, Franklin Circuit Court Judge Thomas Wingate agreed to lift his restraining order against Restoring America after the group disclosed that its sole donor was the father-in-law of Williams.

Restoring America filed an amended 32-day pre-election campaign finance report late Wednesday showing that Stephens, a Russell County businessman, was the sole contributor of $1.3 million to Restoring America Inc. Restoring America Inc. was originally listed as Restoring America's sole donor.

Wingate had issued the restraining order on Monday, ruling that the group violated Kentucky's campaign finance laws by failing to disclose the donors to Restoring America Inc., commonly called a 527 after its Internal Revenue Service designation.

Restoring America appealed the decision to the state Court of Appeals, which denied the appeal, saying circuit court was the proper venue to have a restraining order lifted.

Stephens, in an email sent to reporters on Wednesday, said he gave to Restoring America because he was concerned about President Obama's liberal agenda and that he supported conservative values. Stephens said he did not direct Restoring America to support a particular campaign or candidate. Stephens also denied that there was any collusion or cooperation between Restoring America and any candidate's campaign.

Corporations and individuals can give unlimited money to an independent group such as Restoring America. But it is against the state's campaign finance laws for a candidate's campaign and an independent group to coordinate campaign strategy or message.

Kentucky Democratic Party Chairman Dan Logsdon said at a press conference earlier on Thursday that it was time for Williams and Stephens to "come clean and admit they were working together to evade Kentucky laws and get Williams elected. How stupid do they think we are?"

Logsdon said Stephens has a history of supporting Williams' candidacy, including hosting a fundraiser for Williams at his Russell County home that raised $62,700 just 15 days before Restoring America started its TV ads.

Donald Storm, the chairman of the Williams' campaign, denied that there was any coordination between the Williams campaign and Restoring America in a statement Wednesday night.

In its amended report, Restoring America said it still disputes that it was required to report its contributor.

In an accompanying letter to the registry, Restoring America's treasurer, Mike Blankenbecler of Columbus, Ohio, said the group had planned to air ads on issues in Ohio but that the time and money consumed in the Kentucky litigation and "the chilling effect on prospective donors" have hampered that effort.

It is important for Restoring America to say it planned to get involved in elections in other states.

In its legal filings this week, the group compared itself to the Republican Governors Association. The state registry has said the RGA could transfer some of its money to another independent committee in Kentucky called Bluegrass Prosperity and not have to identify donors.

But the registry said the RGA would have to identify donors if the RGA raised money in the state exclusively for a Kentucky race.

Earlier this year, Stephens gave $1 million to the Republican Governor's Association, which used Bluegrass Prosperity to run TV ads supporting Williams. He also has given to Williams' campaign. Stephens, a Russell County business man, is the owner of Stephens Pipe and Steel.

Having similar donors does not prove that there is coordination between an independent organization and a campaign, the Kentucky Registry of Election Finance found in 2008. In order to prove coordination, there must be evidence of an effort to coordinate communications between the two groups, the registry has said.

According to its expenditure reports, Restoring America has spent more than $864,600 on advertisements opposing Beshear and $540,000 on advertisements supporting Williams. It has also spent roughly $15,000 supporting Rep. James Comer, a Republican who is running for agriculture commissioner.

Read more: http://www.kentucky.com/2011/10/20/1928318/political-group-confirms-david.html#ixzz1bM6VcXpS

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