(UPDATE @ 3:06 pm: The Dozono campaign responds.)

UPDATE @ 1:54 pm:

I love being right. Here’s what I wrote back on February 14 in Hall Monitor, after highlighting phrases in the city code like the definition of “qualifying period,” and waving it around in front of anyone who would listen to me (I’m a really fun date):

According to Blackmer, the question isn’t how much the poll cost, or whether Dozono’s campaign reported it. Rather, Blackmer says Dozono wasn’t a candidate under the city’s rules until he filed a declaration of intent to participate in public financing, on January 7—after the poll was conducted—so the in-kind cap rules don’t apply.

“The campaign finance fund code does not apply until a person becomes a candidate,” Blackmer wrote in a February 6 press release, “which is defined as ‘an individual whose name is or is expected to be printed on the official ballot.’”

Now, I’m not lawyer. But the city code regarding public financed campaigns is clear to me: There’s a $12,000 cap on in-kind contributions for mayoral candidates, period—the code doesn’t say the cap kicks in after a candidate signs a declaration of intent.

According to the code—bear with me— “a candidate shall not accept contributions, except for… in-kind contributions as described in Section 2.10.050 during the applicable qualifying period.” Section 2.10.050 outlines the $12K cap. And “qualifying period” is simply defined as the period “beginning on the first business day of July of the primary election period.” For this election, that period started on July 13—well before the poll was conducted.

Hey, guess what Administrative Law Judge David Gerstenfeld found?

By including the phrase “during the Primary Election Period, including the Qualifying and Exploratory Periods” the text of the code provision itself indicates that the limit applies to in-kind contributions made during any part of the Primary Election Period and not just those portions after the person became a Candidate…

To read the in-kind contribution limits of 2.10.050 C. to apply only to those contributions made after a person has become a Candidate is inconsistent with other Portland City Code provisions regarding public campaign funds. Accordingly, the City’s interpretation cannot be followed. Instead, the only way to read these related City Code provisions together, and give effect to all of them, is to have the limits on in-kind contributions apply to such contributions received at any point in the Primary Election Period, even if they were received before the person became a Candidate. Consequently, the $27,295 in-kind contribution Dozono received from the poll results counts towards, and exceeds, the limit on in-kind contributions. Because of this, Dozono did not meet the requirements of City Code Section 2.10.050 C. and is not eligible to receive Campaign Finance Funds.

ORIGINALLY POSTED AT 1:25pm: I just got back from the Sam Adams-Sho Dozono debate at PSU, and was stretching my fingers to blog all about it—but that’ll have to wait a second.

This just in:

Presiding State Administrative Law Judge David Gerstenfeld has overturned the decision of the City Auditor to certify Mayoral Candidate Sho Dozono, making him ineligible for $161,171 in public funds to finance his campaign. At issue was a poll conducted in December 2007. In Gerstenfeld’s Final Order, the Finding of Law is that “Dozono received in-kind contributions in excess of the applicable limit for candidates seeking certification to receive public campaign financing.”

I’ve left a message with Dozono’s campaign manager to see if he’ll continue as a privately financed candidate, continue with the $40K he raised pre-certification, or if he’ll stick to his original pledge to not run if he doesn’t get public financing (which is somewhat a moot point, as it’s past the deadline to withdraw from the ballot—Dozono’s on it whether he actively campaigns or not).

I’ve also left a message with the Adams campaign. Check back for updates.

Presiding State Administrative Law Judge David Gerstenfeld has overturned the decision of the City Auditor to certify Mayoral Candidate Sho Dozono, making him ineligible for $161,171 in public funds to finance his campaign. At issue was a poll conducted in December 2007. In Gerstenfeld's Final Order, the Finding of Law is that "Dozono received in-kind contributions in excess of the applicable limit for candidates seeking certification to receive public campaign financing."

Further, in the Final Order Opinion, ALJ Gerstenfeld wrote:

"The network of laws and regulations from the City of Portland and the State of Oregon regulating elections are complex, and the City provisions addressing the public funding of campaigns are relatively new. The Auditor has attempted to read these provisions as objectively and narrowly as possible to avoid creating opportunities for subjectivity or changing the understanding of these laws while an election is in progress. Despite these attempts, however, the City's interpretation of Section 2.10.050 C. is contrary to the text and context of the code provisions and for that reason cannot stand."

"We appreciate the thoughtful review by Administrative Law Judge Gerstenfeld. He had all of the necessary facts for his final order, and we respect his decision," said Auditor Gary Blackmer.

Three opposing Candidates for Mayor exercised their right to appeal Dozono's certification under provisions of Portland's Public Campaign Finance law: Beryl McNair, Craig Gier, and Sam Adams. A fourth appellant, Bruce Broussard, withdrew as a Candidate before the hearing date. The hearing was held on Monday, March 17, 2008.

The Auditor certified Sho Dozono on March 5, 2008. In the certification determination, the Auditor applied the City Code section related to the definition of Candidate to the issues regarding a poll conducted in December 2007. The Citizen Campaign Commission will review this issue and City rules as part of their on-going monitoring of public campaign financing. Two members, Kathryn McLaughlin and Dylan Amo, observed the hearing.

Although Mr. Dozono was certified on March 5, the Auditor has withheld payment of public funds to Mr. Dozono until issuance of a final order.

Judge Gerstenfeld's decision is posted on the Auditor's Website at http://www.portlandonline.com/shared/cfm/image.cfm?id=189542 (PDF document, 60 kb)