News Release: Republican activist and Minneapolis Republican Convention call on Governor Pawlenty to not attempt to unallocate the Minnesota Political Contribution Refund -- class action lawsuit seems certain

 

Contact: Bob Carney Jr. -- (612)-803-9084 -- bob@republicancontract.com

 

Media availability --

 

Friday, July 3rd -- Bob Carney Jr. will be at the Minnesota State Capitol building press room from 2:00 PM to 2:30 PM, to pass out information and his new Anatomy of Unallotment poster, answer questions and provide interviews.

 

Video of Carney's testimony to the Legislative Advisory Commission --

is online, via this Minnesota House Public Information Service link, Use the time line to start at one hour and 30 minutes.

A transcript of Carney's testimony is appended to this news release, and is online at www.republicancontract.com

 

The "Anatomy of Unallotment" poster (thumbnail above) can be downloaded at www.republicancontract.com

 

For immediate release                                                                              

 

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Minneapolis, MN, July 1, 2009 -- Bob Carney Jr., editor, publisher and owner of www.republicancontract.com, Minnesota Republican activist, and political entrepreneur, testified yesterday  before the Minnesota Legislative Advisory Commission ("LAC"), regarding the special legal status of the Minnesota Political Contribution Refund ("PCR") program -- targeted for elimination in Governor Pawlenty's unallotment plan. 

 

Carney testified: "...with particular reference to the Campaign Finance Refund… that is a tax refund. And if an individual complies with the law on that, and it’s part of the tax law, it’s their money -- they’re entitled to it…, and I think it would be a very dangerous precedent if Governor Pawlenty were to succeed in trying to unallocate this -- to say that a Governor could unilaterally, in effect, seize or confiscate tax refunds... I brought this to the attention of a Minneapolis Republican Ward endorsing convention yesterday. And after considering that, they voted a resolution that calls on Governor Pawlenty to reconsider this, and to state unequivocally that he will not attempt to unallocate any tax refund due to any Minnesota taxpayer as provided by law. I’ve also met with an attorney for a large class action law firm, in Minneapolis, last week. I have a legal memo, right here, from them, indicating that I will personally have standing, and that there will be standing for a class, to sue, if Governor Pawlenty does not relent on this." 

Immediately following the LAC hearing, Mr. Carney spoke with both Minnesota Finance Commissioner Tom Hanson, and with Minnesota Revenue Commissioner Ward Einess.  Both Commissioners indicated they believe they are on solid legal ground regarding the proposed PCR unallocation, and they plan to proceed in spite of the issues and concerns raised by Carney.  "To me, it's unfortunate that the Pawlenty administration seems more concerned with their legal position than with the principles involved.  'Let the buyer beware' is not a doctrine I ever expected to see from any Minnesota administration," Carney said.  "However, given this, it appears a class lawsuit is inevitable," Carney added.

Republican Convention backs Carney -- sort of

On June 29th the Minneapolis 13th Ward Republican endorsing convention for alderman passed a resolution that is one sentence, but is rendered below as two parts: 

"Resolved: That Governor Pawlenty should state unequivocally that under no circumstances will his administration apply unallotment to the campaign contribution refunds due to Minnesota taxpayers according to law, and more generally, to any refund due to any Minnesota taxpayer according to law,

and in regard to the Political Contribution Refund, work to eliminate the program from state law."

The Minnesota Political Contribution Refund program provides individual Minnesota taxpayers annual refunds of up to a $50 per person ($100 per couple) for contributions to eligible state political campaigns and political organizations. According to a June 23rd Star Tribune article: "It is the only such dollar-for-dollar refund program in the country."

 

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Transcript of Carney's 6/30/09 testimony before the LAC:

Carney: I’m particularly concerned about one aspect of this, and that is the proposed cut of the Campaign Finance Refund, and the related cut, potentially related cut, and that is the refund, or the tax credit, for renters.  My concern is that that… and with particular reference to the Campaign Finance Refund… that is a tax refund.  And if an individual complies with the law on that, and it’s part of the tax law, it’s their money -- they’re entitled to it…, and I think it would be a very dangerous precedent if Governor Pawlenty were to succeed in trying to unallocated this, to say that a Governor could unilaterally, in effect, seize or confiscate tax refunds.   

There’s also a provision in the unallotment law that allows the Commissioner to consider other sources of revenue.  I don’t see anything to prevent a future Governor from deciding to unallocated, as an example, all tax refunds to every family with an income of more than $75,000 a year.  It’s certainly a usurping of legislative authority.   

I brought this to the attention of a Minneapolis Republican Ward endorsing convention yesterday.  And after considering that, they voted a resolution that calls on Governor Pawlenty to reconsider this, and to state unequivocally that he will not attempt to unallocate any tax refund due to any Minnesota taxpayer as provided by law.   

I’ve also met with an attorney for a large class action law firm, in Minneapolis, last week.  I have a legal memo (holds up secret envelope), right here, from them, indicating that I will personally have standing, and that there will be standing for a class, to sue, if Governor Pawlenty does not relent on this.  I think it needs to be studied with regard to the rent credit. 

The point is… and I personally am in favor of the policy of the Campaign Finance Refund, but beyond that -- this is a different legal situation than any appropriation or tax policy, because it is a right of individuals to their tax refund.  I want to draw your attention to that. 

And I hope that the Commissioner will reconsider, and Governor Pawlenty will reconsider.  I’d be happy to give you a copy of a resolution for you to go on record on that (holds up draft resolution), and I hope that you will have more meetings.  My understanding is that any two of you can call another one of these meetings, right?  We gotta talk, we gotta  keep doing this. 

Chair:  Mr. Carney, thank you.  For those of you who would like to follow up, your web site is www.republicancontract.com 

Carney: (holds up poster)  I’ve got a poster on this. 

Chair: Thank you Mr. Carney. 

Carney: Thank you.