Campaign fund law not yet airtight

BOISE – A big chunk of money donated by a Coeur d’Alene developer to Butch Otter’s campaign for governor is raising questions about a new Idaho campaign finance law.

High-end developer Marshall Chesrown gave Otter’s campaign $12,000 this spring – though Idaho limits campaign contributions to $5,000 for the primary or general election.

But Chesrown’s donations to Otter didn’t violate those limits, according to the secretary of state’s office. That’s because he gave $1,000 each from nine subsidiaries of his development companies, tagging five of those for the primary and four for the general election.

A new law that passed the state Legislature this year, HB 415, banned the much-decried practice of using donations from multiple subsidiaries of the same organization to give far more than campaign laws allowed.

“Contribution limits are meaningless if splinter groups are each allowed a separate contribution limit,” the bill’s statement of purpose said.

Secretary of State Ben Ysursa said the bill, which passed both houses of the Legislature unanimously and took effect immediately, is working in part. Without it, contributions like those Chesrown made from The Club at Black Rock, Rockford Bay Investments, Black Rock Aviation LLC, Black Rock Ranch LLC, Black Rock Marina, Black Rock Realty, Black Rock Development, Boardwalk Homes Development Inc., and BRMC Development Inc. – all at the same Coeur d’Alene address – could have been $5,000 apiece.

Now, the law limits affiliated companies to giving a candidate a total of $5,000 for the primary and another $5,000 for the general election.

However, the $3,000 Chesrown donated to Otter in his own name doesn’t fall under the combined limit.

“I went back and looked, and well, the way this law is written, and I’m not blaming anybody except myself, the individual is not an entity under the provisions of the law,” said Ysursa, the author of HB 415. “We’ll look at it and look at some corrective language, maybe in the upcoming session, and fine-tune it.”

The primary election is Tuesday, and all statewide candidates were required to file their pre-primary election campaign finance reports by 5 p.m. Tuesday. Otter’s list of contributions stretched for more than 86 pages. He’s raised more than $375,000 in campaign funds since Jan. 1.

“We’ve been pleased with all the support that we’ve received,” said Otter’s campaign manager, state Rep. Debbie Field of Boise. “Oh my gosh, it has been terrific. Just since the first day when he put in, we’ve raised almost $1.17 million.”

Otter announced his run for governor early – before he’d even taken the oath of office for his current term in Congress almost two years ago.

In the primary, he faces Republicans Dan Adamson, Walt Bayes and Jack Alan Johnson.

Jerry Brady and Lee Chaney Sr. are vying for the Democratic nomination. Two third-party candidates and three independents also are running.

Adamson reported raising $116,247, more than $85,000 of that in loans of his own funds to the campaign.

Brady reported raising $396,071, including $222,130 carried over from last year and $171,941 so far this year. He filed 46 pages listing his contributions, most of them from individuals in Idaho.

Bayes, Johnson and Chaney reported raising little or no money.

Chesrown couldn’t be reached for comment.

Aside from Chesrown, Otter’s biggest donors so far this year include Coeur d’Alene Mines, Small Smiles Dental Clinic of Boise, the Idaho Land Fund, and several out-of-state individuals, all of whom gave $5,000 apiece, according to Otter’s report.

Otter reported spending $381,771 since Jan. 1, mainly on salaries, research, advertising, signs and literature, postage, and fundraising expenses.