Face the State

Reports reveal Democrat leader violated contribution limits, misused campaign funds for professional services
Face the State Staff Report

DENVER—A Face the State inquiry into House Majority Leader Alice Madden’s recent campaign finance reports reveals illegal spending practices and several sanctions for violating campaign finance reporting requirements.

Madden’s uncontested 2006 re-election campaign, funded almost exclusively by lawyers, lobbyists, and other special interest groups, is raising eyebrows because Madden violated limits on how how much candidates can donate from their own campaign accounts to state political parties. For 2006, Colorado law limited contributions to a state party to $2,500, but Madden exceeded these limits by using her campaign war chest to funnel donor money to the party. Specifically, on August 8, 2006, Madden contributed $2,500 to the House Majority Project, part of the Democrat State Party. And on October 22, 2006, Madden contributed another $500 to the Democrat State Party, bringing her annual total to $3,000.

Also causing concern to campaign finance watchers is the fact that Madden, D-Boulder, used her campaign account to pay for her attorney registration with the state. “This is clearly a professional expense unrelated to the running of her campaign. She used campaign funds to pay for personal expenses, well after the general election,” said Scott Gessler, an attorney specializing in campaign finance law.

Colorado Revised Statute 1-45-106 (II) prohibits the use of campaign funds for personal expenses unrelated to election costs. It specifically reads: “In no event shall contributions to a candidate committee be used for personal purposes not reasonably related to supporting the election of the candidate.”

Madden has not been prosecuted for either of the above violations, but the Secretary of State has fined Madden's campaign multiple times for filing delinquent campaign finance reports. On January 28, 2005, Madden was fined $200 for a late filing. In November 2005, her campaign was notified that that the Secretary of State never received a required filing for the previous month. In response, Madden appealed a $700 fine, saying it should only be $550 and that her filing mistake, based on a lack of comprehension of the Secretary's site, was "admittingly stupidly. [sic]"

On August 9, 2006, Madden's campaign was filed $150 for violating state law requiring regular campaign finance filing. It is unclear when Madden's campaign received notification of any of the above notifications, as certified letters from the Secretary of State's office to Madden's registered agent were returned as undeliverable, due to the campaign committee's failure to file the correct address with the Secretary of State.

In addition, Madden contested a $500 late fee imposed in August, 2004, for a report she says was submitted on time but was not recorded properly due to computer problems within the Secretary of State's office.

Also of note, Madden’s name was misspelled on campaign documents as “Maddan,” giving rise to concerns that Madden may be trying to make it difficult for for the public to find her reports. While the source of the misspelling is unclear, no documents on record with the Secretary of State indicate any effort by Madden's campaign or legislative staff to correct the problem. The mistake presents problems for voters seeking to search the Secretary of Sate Web site, as no reports are accessible under the correct spelling on Madden's name. Located in Boulder, Madden represents the 10th District in the Colorado House of Representatives.

Even though she is under suspicion for her own questionable campaign practices, this hasn't stopped Madden from passing judgment on others facing ethics inquiries. Most recently, Madden criticized a lobbyist's behavior as "deceitful" and "reprehensible" in a Rocky Mountain News June 19th article, adding "When you talk to a lobbyist you have to know they're telling you the truth," she said. "It would be difficult to have to deal with him."

Madden's past campaign finance practices show that she, too, has chronic difficulties following the law.