GOP, ethics panel reach settlement over contributions

The Associated Press

JEFFERSON CITY, Mo. -- The Missouri Republican Party and two former GOP candidates have agreed to pay $70,000 as part of a settlement with the state over campaign contributions made in 1998, officials said Friday.

The settlement between the GOP and the Missouri Ethics Commission requires the party to pay the state $60,000 and the two former candidates to pay $5,000 each.

Under the settlement, the Republican Party would have to pay an additional $122,675 if it fails to pay the $60,000 or violates state campaign contribution laws.

The Republican Party will be required to make three payments of $20,000, with the first required by Aug. 11. The second payment will be due by Feb. 2, 2004, and the final payment by Aug. 2, 2004.

'Everybody on notice'

Bob Connor, executive director of the Missouri Ethics Commission, said the payment is the largest liability assessed for a violation of state ethics laws in the commission's 10-year history.

"I think it puts everybody on notice that future violations of this type by individuals and political parties is going to be looked at seriously by the commission," Connor said. "We're pleased that this case is settled."

At issue was a $122,750 donation made by the Republican Party to Chuck Pierce, a former candidate for state auditor, and a $59,875 donation to Eric Zahnd, a former candidate for state Senate.

Under the state contribution limits at the time, political parties could give a maximum of $10,750 for statewide candidates and $5,375 to state Senate candidates.

The Missouri Ethics Commission contended the Republican Party exceeded state contribution limits and originally had asked the GOP and the candidates to pay fines after the excess contributions were not returned promptly.

Republicans argued that the party contribution limits couldn't be enforced in 1998 because a state appeals court -- acting on a previous Republican lawsuit -- had temporarily barred enforcement of individual contribution limits.

The GOP later challenged Missouri's limits in federal court but lost.

"We have decided that it is financially prudent to end the expensive legal proceedings and move forward," said John Hancock, a Missouri Republican Party consultant. "The cost of continuing this litigation simply made no sense."

Hancock said the Republican Party has spent more than $100,000 in legal fees on the case.

Attorney General Jay Nixon, who represented the Ethics Commission, said the settlement will help ensure the integrity of Missouri's campaign finance laws.

"Today's agreement not only ends challenges to those contribution limits, it also shows that tough enforcement and steep costs will come to those who ignore them," said Nixon, a Democrat.

Last year, a former Republican legislator and two former GOP candidates returned political party campaign contributions that exceeded Missouri's limits in 1998.

Former Republican state legislator Mike Reid of Hazelwood, returned $7,100 to the Missouri Republican Party, while David Broach of Jefferson County, who ran for state Senate, paid back $5,125, and Greta Forester of St. Louis, who ran for the House, returned $50.

On the Net

Ethics Commission: www.moethics.state.mo.us

Missouri Republican Party: www.mogop.org