People for Portland accused of violating Oregon election laws

A well-funded and largely anonymous advocacy group that’s repeatedly pummeled Portland-area leaders over trash, crime and homelessness faces accusations of illegal politicking and running afoul of Oregon election laws.

People for Portland targeted a “clearly identified candidate” for office in a recent online ad against local elected leaders including Metro President Lynn Peterson, alleges a union that’s endorsed her.

Under Oregon campaign finance laws, any entity that spends at least $250 to campaign for or against a candidate in Oregon must register with the state and disclose such spending as well as its sources of money.

If state election officials side with the United Food and Commercial Workers Local 555, which lodged the complaint, People for Portland could have to disclose who contributed to its $1 million-plus advertising and lobbying budget.

A few donors – including Columbia Sportswear CEO Tim Boyle and real estate moguls Jordan Schnitzer and Greg Goodman – have acknowledged chipping in.

But the group’s two veteran political strategists, Kevin Looper and Dan Lavey, have kept the full list a closely guarded secret.

The paid ad in question shows an image of Peterson, who is seeking re-election in May, alongside other local officeholders with the word “FAILING” in large red letters printed on a mock report card above their heads.

Titled “Local politicians fail,” the ad directs individuals to People for Portland’s website to view the report card’s results as well as give area leaders a letter grade of their own.

Michael Selvaggio, lobbyist for the food and commercial workers union, filed an official complaint Tuesday with the Oregon Secretary of State’s Office, according to a copy obtained by the Oregonian through a public records request.

The complaint claims the ad is a “clear and unambiguous suggestion” that voters should oppose Peterson’s re-election.

“What it boils down to is that Oregon law is very clear on what the line is between simply trying to raise an issue of public concern versus politicking,” Selvaggio said in an interview Friday.

“I’m not saying they can’t speak their mind,” Selvaggio continued. “They just need to show us where the money is coming from and who is behind it.”

That is the philosophy that underlies Oregon’s unusual campaign finance system, which allows unlimited donations and expenditures but requires timely and detailed disclosure of where the money comes from and where it goes.

In a statement Friday, Lavey slammed the union attempt.

“This is an absurdly frivolous complaint,” he said. “From insiders, defending insiders.”

People For Portland has spent at least $1.2 million in the months after Lavey and Looper launched the effort last August, lobbying records filed with the city of Portland show.

But because the group organized as a 501(c)(4) nonprofit, it isn’t required to list the amounts of individual contributions or the names of its donors – so long as it doesn’t engage in campaign or election activity.

In addition to a barrage of ads on TV and online, the group’s directed a mass emailing campaign to members of the Portland City Council, Multnomah County Board of Commissioners, Metro Council and state lawmakers who represent Portland.

The pitch? Local leaders have failed to act swiftly in the face of rising disorder, more people living in the streets and persistent struggles to address litter and garbage.

People for Portland has also conducted and publicized a number of polls that indicate a majority of Portlanders, as well as those in the metro area, support dramatic changes on city policies around homelessness and policing.

The group’s onslaught of attacks has rankled many of the elected leaders it’s targeted as well as their political allies.

Selvaggio said the food and commercial workers union made the decision to file a complaint against People For Portland without consulting Peterson or her campaign and after speaking with other political “stakeholders,” whom he would not disclose.

Peterson, first elected to head the regional Metro government in 2018, is facing a challenge from economic development executive Alisa Pyszka and two other candidates.

The union has also endorsed Portland Commissioner Jo Ann Hardesty, who too has landed in People For Portland’s crosshairs, in her re-election campaign this year. It didn’t coordinate with her or her campaign either, Selvaggio said.

The complaint alleges the group violated multiple Oregon election statutes after running the report card ad by failing to register as a political committee; not filing statements required following the supposed independent expenditure; and not disclosing donor information to the Secretary of State’s Office.

It asks the office to assess appropriate penalties and force People For Portland to comply with the laws it has allegedly violated.

“Frankly, part of the issue is that they’re trying to have this advantage of cloaking their resources,” Selvaggio said. “That makes a mockery of the transparent election system that Oregon has.”