Today, Ethics Watch filed its opening brief with the Colorado Court of Appeals in a case involving whether so-called 527 political committees can avoid contribution limits and disclosure regulations applicable to political committees under Colorado law, simply by avoiding the use of words such as "vote for" or "reject."  The Court of Appeals will review an administrative law judge's November 2008 decision that Senate Majority Fund (SMF) and Colorado Leadership Fund (CLF) did not act as political committees when they ran ads in support of various state House and Senate candidates.

Both SMF and CLF are registered with the Internal Revenue Service (IRS) and the Colorado Secretary of State as 527 political organizations. As 527s, under Colorado law SMF and CLF are not subject to any contribution or spending limits. Ethics Watch’s complaint alleges that by purchasing ads for the purpose of expressly advocating in favor of state candidates, SMF and CLF became political committees under Colorado law and must comply with all applicable contribution limits and reporting requirements. 

More information about Ethics Watch's complaint can be found here.