As representatives of the Recall Andy Dillon Committee delivered recall petitions to the state today, the financing of the effort may have violated campaign finance laws.

House Speaker Dillon, a Democrat, has been targeted by anti-tax activists for his leading role in last year’s budget deal and tax increase. Leading the charge against Dillon is Leon Drolet, a former Republican state representative who is now a Macomb County Commissioner.

Drolet and his supporters say they will turn in 11,000 valid signatures from Dillon’s districts, more than the 9,000 needed to force a special recall election in August. Mark Brewer, chairman of the Michigan Democratic party, charged earlier this week that petitioners have been lied to while soliciting signatures.

The questions about the financing of the recall campaign arise from documents filed last week with the Michigan Department of State that reveal a series of donations involving contributions from three organizations, all of which are headquartered at Drolet’s home address in Macomb County.

According to the documents, the Michigan Taxpayers Alliance Foundation gave $11,000 to the Michigan Liberty Club, a political action committee (PAC) controlled by Drolet, on Nov. 20, 2007.

Between Nov. 26, 2007 and Jan. 11, 2008, the Michigan Liberty Club made different donations totaling $11,000 to the Michigan Recalls Organization. How much of that went to the Recall Andy Dillon campaign is unknown. But the campaign finance records show that about two-thirds of the $90,000 raised by the Michigan Recalls Organization and given to three recall efforts went to the effort to unseat the speaker.

Continued – The Michigan Taxpayers Alliance Foundation, as well as the Michigan Taxpayers Alliance and the Michigan Recalls Organization and Michigan Liberty Club, share the common address of 46116 Lookout Drive in Macomb. This is also the address listed with the Michigan Recalls Organization as Drolet’s home residence.

The problem, says Rich Robinson, executive director of the Michigan Campaign Finance Network, is that the Michigan Taxpayers Alliance Foundation is listed as a corporation in Michigan, and “that makes its contribution to a PAC illegal.”

Michigan law forbids PACs from accepting donations from a corporation.

The Michigan Taxpayers Alliance Foundation is indeed listed in state records as a Michigan corporation. The listing says the group is a nonprofit, but a search on Guidestar.org brings up Americans for Prosperity as the listing for the group. The group is listed as a 501(c)3, which is a tax-exempt charitable organization, meaning donations to it are tax deductible. The organization’s IRS filings show a parallel 501(c)4, which is a nonprofit charitable organization that is exempt from paying income tax on its fundraising efforts; however, donations are not deductible.

Whether the organization is a (c)3 or a (c)4 designated organization, Robinson says, it is still a corporation and Michigan law is clear in banning corporate donations.

Under Michigan law it is a felony to knowingly accept corporate money donations in a political campaign, according to Robinson. The law says it is a felony punishable by up to three years in prison and a fine of $5,000 for an individual to knowingly accept corporate campaign donations, and a fine of up to $10,000 for a group to knowingly accept such a donation.

In addition to the donation from the Michigan Liberty Club, the Michigan Recalls Organization shows a $25 donation from Breckenridge Insurance, 126 Eaton St., Breckridge, Mich. The filings also show a $25 donation from Kim Kinnie Eastside RV, Inc., 26288 Groesbeck Highway, Warren, Mich. Robinson said both are clearly violations of the law.

“You have to assume they reported this faithfully and they have essentially fingered themselves on it,” said Robinson. “One must admire their transparency but not particularly their smarts.”

“I suspect once you bring this up there will be some rapid back pedaling,” Robinson said. The back pedaling will be, he said, “something along the lines of ‘oops, wrong bank account.’ I think for most people that is a serious amount of money.”

Drolet declined to respond to phone calls and e-mails requesting comment.