Opponents accuse East Cobb cityhood committee of violating law in failure to report donors

May 18—The group pushing to create a new city of East Cobb has yet to file a campaign contribution disclosure report as may have been required, according to an attorney with Georgia's campaign finance oversight body.

Opponents of cityhood have alleged the omission is a violation of state ethics law, which requires groups advocating for or against a local referendum to register as a ballot committee and disclose their backers 15 days before an election.

The deadline was May 9.

Of seven groups supporting or opposing Cobb's three cityhood referendums on May 24 — East Cobb, Lost Mountain, and Vinings — the pro-East Cobb cityhood committee is the only one which has not filed.

The group indicated on Sunday that its status as a 501(c)(4) nonprofit organization means it's not required to file such a disclosure.

"The East Cobb cityhood committee has filed all required documents with the appropriate governmental entities," said spokesperson Cindy Cooperman.

But Robert Lane, general counsel for the Government Transparency & Campaign Finance Commission, told the MDJ the group's nonprofit status is irrelevant.

"As for ballot committees, their IRS tax designation has no impact upon their filing obligations with the state," Lane said in an email. "The key test is whether this group is advocating for or against a ballot question and has expended more than $500.00 towards that effort. If the answers to both of those questions are yes, then a group would have registration and filing requirements with the state."

Craig Chapin, the cityhood committee's president, told the MDJ Tuesday the group had consulted with lawyers in January who said the group was not required to form a ballot committee or make disclosures.

Those lawyers reiterated that position Tuesday, a statement from Chapin said.

"We have heard back from legal counsel this afternoon and they have confirmed a 501(c)(4) is not required to file disclosures. They communicated this is supported by case law up to the Supreme Court," Chapin added.

Bob Lax of the anti-cityhood East Cobb Alliance said he filed a complaint with the state commission last week.

"Given they are clearly advocating for cityhood as evidenced by their website (eastcobbga.com), multiple town halls, two debates, yard signs, billboards and the 8 page 'Voter's Guide' mailed to ~20,000 county residents, they are clearly operating as a ballot committee," Lax told the MDJ.

Cooperman accused the anti-cityhood contingent of attempting to "scare the citizens of east Cobb into voting no for cityhood."

"Instead of running against the cityhood merits of local control and enhanced services, contrasted with Cobb County's out of control spending and urbanization strategy, they choose to constantly accuse individuals and the organization with no basis in fact," Cooperman added.

The East Cobb Alliance, meanwhile, reported raising more than $29,000 as of May 9. Its single largest donor — giving a combined $3,867 — is listed as Stephen Sprinkle, who identified himself as retired, with a Marietta post office box address.

All of the group's additional donors gave $500 or less. They include Suzanne Hawkins ($500), Kevin Redmon ($495), Keith Lamberson ($495), Robert Coney ($495), Jean Kerr ($477), Grace Schickler ($353), Phillip Chastain ($250), Joseph Moskowitz ($250), Carole Bryan ($250), and Cynthia and Mike Martin ($250).

Other donors include Michael Paris, CEO of the Council for Quality Growth, and Republican activist Jan Barton. Paris and Barton gave $98 and $99, respectively. The group also reported in-kind contributions of more than $2,700, including legal fees from East Cobb Alliance President Mindy Seger and about $300 in brochure cards from Cobb Democratic Committee Chair Jacquelyn Bettadapur.

Some two-thirds of the group's funds raised thus far have gone to printing costs, spending over $19,000. Remaining expenditures have included billboard signage and ads in the MDJ.

Those expenses left the group with $6,464 in cash on hand, per the filing.