Unite for Colorado, a dark money group that spent $4 million on statewide ballot measures in 2020, has been ordered to pay $40,000 and divulge its donors.

Scott Wasserman of the Bell Policy Center, and Katherine Dorman, a teacher in the Douglas County School District, filed the first campaign finance complaint with the Secretary of State’s office against Unite on Aug. 27, 2020. Both filed a second complaint against Unite in 2021 that is still moving through the process.

The first complaint alleged Unite raised and spent millions of dollars, and, through a “shell” organization, concealed the source of those funds.

According to the complaint, Unite spent $4 million to persuade voters to approve three ballot measures on the 2020 ballot: Proposition 116, which reduced the state’s income tax rate; Proposition 117, which required voter approval for new state-run enterprises; and, Proposition 113, which sought to overturn the General Assembly’s passage of the National Popular Vote. Voters approved the first two and rejected the third.

Unite is registered as a 501(c)(4), which, under Internal Revenue Service rules, is classified as a “social welfare” organization that engages in educating the public. In practical terms, so long as the organization spends less than 50% of the money it raises on political activities, it doesn’t have to disclose its donors. Unite was formed in November 2019 and led by Dustin Zvonek, now an Aurora City councilman.

The complaint against Unite said its only purpose is to engage in political activities. In addition to paying for petition circulation for Propositions 116 and 117, the complaint noted a YouTube video by Unite that criticized former governor and now-U.S. Sen. John Hickenlooper over ethics issues, but then moved on to seek online support for a ballot measure that would extend the amount of time citizens have to file complaints with the state Independent Ethics Commission. That ballot measure never moved beyond approval of the ballot title. 

Initially, the elections division of the Secretary of State dismissed the complaint, stating it “failed to allege sufficient facts to support the alleged violations.” In January, then-Deputy Secretary of State Ian Rayder denied the division’s motion and ordered it back for further action.

In February, the division filed a formal complaint with the Office of Administrative Courts, which handles campaign finance complaint hearings. 

Administrative Law Judge Matthew Norwood ruled in August, following a hearing, that Unite is an issue committee.

Unite made approximately $17 million in expenditures in 2020, with $4 million spent to support or oppose the three ballot measures, according to the ruling.

“This demonstrates that support and opposition of the proportions was a considerable portion of its activities,” the ruling said. In addition, the ruling said “there is no evidence that Unite has any other business than ‘issue advocacy’ on its website.” That website no longer exists.

Norwood ordered Unite to immediately register as an issue committee, file reports of its expenditures and contributions. He also fined the organization $40,000.

Unite appealed to the Colorado Court of Appeals, which dismissed the appeal on Nov. 5.

The final agency order issued Dec. 8 by Deputy Secretary of State Christopher Beall said the case “presents an important issue in Colorado: may an organization that raises and spends multiple millions of dollars in support of or opposition to several statewide ballot measures, engaging in substantial efforts to persuade citizens what to vote on and how, legally do so without disclosing to the public where the money is coming from or where it is going?”

The answer, the order said, is “no.”

If upheld, the fine would be the largest in state history. 

The final order mandates Unite register as an issue committee, report its contributions and expenditures and pay the $40,000 fine.

Unite for Colorado also operated an independent expenditure committee, which spent $1.6 million to support Republicans or oppose their Democratic opponents for the state Senate. All but $75,000 of its contributions came from Unite for Colorado, making it a dark money group, so called because it does not disclose its donors. The other $75,000 came from another dark money group, Ready Colorado.

An affiliated group, Unite for Colorado Action, spent $185,000 to oppose Hickenlooper in 2020, according to Federal Election Commission records.

The second complaint, filed Aug. 18, 2021 by Wasserman and Dorman, is tied to Unite’s $1.28 million support for Proposition 120, a measure aimed at reducing property taxes for certain kinds of properties; and, Amendment 78, which would have required the General Assembly to appropriate certain custodial funds. Voters rejected both measures in November.

The complaint was initially put on hold, pending the outcome of the 2020 case. The 2021 complaint seeks to require Unite to file as an issue committee and report its contributions and expenditures.

With the final agency order out of the way for the 2020 complaint, the 2021 matter is now awaiting a hearing with the Office of Administrative Courts.

Unite’s attorney, Suzanne Taheri, did not respond to a request for comment on whether the organization plans to appeal the final agency order.