A

2

Committee Report by Michael Gullion:  Committee to Support Our Schools

Shows $50,000 from “Greater KC Chamber” while only $500 each from OP Chamber and Lenexa Chamber.  Shows $10,000 payment to “Committee for Excellence in JoCo Schools”.

B

1

Letter from Larry Winn III as Committee Report for Committee for Excellence in JoCo Schools.

Winn’s accounting of source of $10,000 conflicts with Michael Gullion’s.

C

2

May 8^th news article from Bradenton (FL) Herald about SEC investigation of Gold Banc Corp and Michael Gullion’s firing and payment of $3.5 million in restitution for losses.

The public deserves full accounting of the $50,000 Gullion received from the Greater KC Chamber, especially in light of this.  What was the source of the funds?  Who made the decision to send the money to Kansas?  

Also see Kansas Meadowlark's Report (5 May 2004):  Gold Bank's ex-CEO fined:  Any connection to $50,000 from GKC Chamber in 2002 for JoCo Political Activities?

D

4

IRS 1024 application by Bistate Arts and Sports Corp for tax exempt status.  
May 10, 2002  

[Sorry, these are very poor copies]

Page 1

Page 2

Page 3

Page 4

Note:  “The Corporation is organized and operated to further the social welfare and economic development …”  Isn’t use of “social welfare” a bit of a stretch?  

Section 2. Identifies likely contributors.

Section 15.  “The Corporation may, through its Missouri campaign committee or Kansas political action committee make one or more contributions to (i) political action committee(s) or (ii) to political campaigns of candidates for public office ...  the Corporation will remain primarily engaged in exempt social welfare function.”

E

2

Letter from Richard Gill at IRS asking for additional information

July 15, 2002  

Page 1

Page 2

“2a) Are the legislative activities germane to your social welfare purposes?  If so, how does this activity further your exempt purpose?”

“2b) Describe the selection process of how your organization decides what legislation and/or candidates receive your organization’s support.”

F

3

Pages 1-2:  Letter from John C Craft to IRS dated July 26, 2002  

Page 1

Page 2

Page 3:  Article IX of Articles of Incorporation sent to IRS for review.  

Questions 2a) and 2b) were never answered.

“For your information the Corporation ceases operations about a week ago.”

“Although the Corporation’s position is that it could have made limited contributions to the campaign of one or more candidates for public office (or to a PAC in turn made such contributions) without destroying its 501©(4) exemption, in fact the Corporation never made any such contribution.”

“Upon dissolution of the Corporation, the Board of Directors shall … dispose of all the assets of the Corporation by distributing the remaining assets to the American Stroke Foundation.”

Before dissolution, Article IX was modified to say:  “distribute all the assets of the Corporation to an organization or organizations organized and operated exclusively for the promotion of social welfare purposes … by reason of description in Section 501(c) of the code.”

G

1

Page 1 of letter from IRS
Aug 2, 2002 approving tax exempt status

“Based on information supplied … we have determined you are exempt from Federal income tax.”

 “If your sources of support, or your purposes, character, or method of operation change, please let us know so we can consider the effect of the change on your exempt status.  In the case of amendment to your organizational document or bylaws, please send us a copy of the amended document or bylaws.”

I was not provided any documentation by the IRS in Cincinnati that the modified articles of incorporation were ever sent to the IRS for review.  I cannot find any documentation that the IRS was told about the $39,500 of PAC contributions by the non-profit.

H

3

IRS 990-EZ for 2001

Signed by John C Craft
May 13, 2002

Gross Receipts = $70,054

Statement of Program Service Accomplishments:  “Developed public information and analyzed possible use of proposed tax procees”  What does this have to do with “social welfare”?

I

8

IRS 990 for 2002  

(original distribution only had 4 selected pages)

Gross Receipts = $494,779

Statement of Program Service Accomplishments:  “Develop public information and analyze possible use of proposed tax proceeds”  What does this have to do with “social welfare”?

For this amount of money the IRS 990 is uncharacteristically lacking detail of how the money was spent.  For example, how can the IRS determine that $222,107 in “Expenses” are legitimate for a tax exempt organization?

Statement 2 for Part VI, Line 79:  “Due to the unsuccessful passing of the bistate tax issue, the entity is liquidating all of its assets as of December 4, 2002 to the Chamber of Commerce of Greater Kansas City .”

J

2

IRS 8871 for Kansas Bi-State Renewal Committee (4/4/2002)

Statement of Organization for Kansas Bistate Renewal Committee. (6/17/2002)

Committee Report for Kansas Bistate Renewal Committee (8/13/2002)  

Until June 2004, the only known document describing the existence of Missouri Bistate Renewal Committee was a single filing at the JoCo Election Office. After the discovery that the Missouri Bistate Renewal Committee was an IRS 527, a search was made on the Kansas side for an 527 organization.  Because "Bistate" was spelled as "Bi-state" in the Kansas report, the IRS 8871 was not immediately found.

Steve Rose should be commended for filing these quarterly reports at the JoCo Election Office describing the receipts and expenditures even though there was no law requiring this public disclosure.

$72,500 donated by Aquila , a company having financial problems, deserves public discussion.  

In the Kansas Committee Statement of Organization several addresses were given:

• Chairman Rose used his 2002 home address:  5900 Overhill Road, Mission Hills, KS  (Rose's 2004 home address is 2100 W 56th St, Mission Hills, KS)

• Treasuer Lucas used a Crown Center address:  2405 Grand, Suite 200.

• The mailing address was Jack Craft's law firm:  4435 Suite 100, Kansas City, MO.

The IRS 8871 form only gave Rose's old home address on 5900 Overhill Road, Mission Hills.  The IRS form shows Rose as the Chair and Treasurer.

K

3

Missouri State Ethics Commission Report for Greater KC Chamber of Commerce PAC, 7/15/2002

Summary, plus two selected detail pages.

PAC report summary shows that $39,500 from Bistate Arts and Sports was the majority of the $46,300 received during this period.

PAC report summary shows that $20,000 to Steve Cloud’s Johnson County Republicans for Education was majority of $23,675 of expenditures.

Report shows other entries that are curious, like another $2500 spent by “Utilicorp United (Aquila, Inc.)” in addition to the $72,500 spend with the Kansas Bistate Renewal Committee.

L

2

Missouri State Ethics Commission Report for Greater KC Chamber of Commerce PAC, 7/29/2002

Summary, plus one selected detail page

$6,000 of $9,300 spent on contributions was to JoCo candidates

M

4

Missouri State Ethics Commission Report for Greater KC Chamber of Commerce PAC, 10/14/2002

Summary, plus three selected detail pages

$9,000 of $9,350 spent on contributions was to Kansas candidates.  In addition to JoCo candidates, several candidates across Kansas also received contributions.

Some additional contributions to Kansas candidates in the November 2002 election were reported in the December report.

N

3

Missouri Ethics Commission Report for Greater KC Chamber of Commerce PAC, 3/17/2003 and 7/2/2003, selected pages.

Contributions to Blue Valley School Board candidates and Bob Regnier’s Blue Valley First Committee.  In some ways this was a "mini" version of the August 2002 primary.  This election had a major contribution by the Greater KC Chamber PAC, with administrative fees going to Shane Jone's Hyperion group.

There was an out-of-cycle contribution to new State Rep Ed O’Malley in Roeland Park in the 7/2/2003 report.   O'Malley was Bob Tomlinson's replacement.  (Tomlinson went to work for insurance commissioner Sandy Praeger.)

O

4

Kansas State Governmental Ethics Commission Report for Steve Cloud’s Johnson County Republicans for Education, 7/29/2002  

Also see JCRE report from 10/28/2002

Report shows JCRE contributed to almost the same set of candidates as the Greater KC Chamber PAC in the Kansas August Primary in 2002.

P

What is the Greater Kansas City Chamber now doing in the 2004 elections?

Q

• Bistate Arts and Sports Committee created in Kansas for 2004 elections.
• Missouri Bistate Arts and Sports Corporation Is Secretive 527

R

S