<MONTAGE OF CAMPAIGN ADS> <Senator Angus King, Independent of Maine> “There’s an ominous tide rising in this country ... it’s a tide of dark money that’s flowing in and threatens to dominate our political system.” VO AN UNPRECEDENTED 7 BILLION DOLLARS WAS SPENT ON THE 2012 ELECTION. 20-14 IS ON PACE TO BE ANOTHER RECORD YEAR - FOR A MIDTERM AT LEAST. WHY? PART OF THE ANSWER IS THE GROWING WORLD OF COMPLETELY ANONYMOUS POLITICAL GIVING. MUSIC FULL WITH TITLE CARD “vv” VO HERE’S HOW IT WORKS Screen the gray of the graphics with a second of music VO MODERN ELECTIONS ARE PRICEY AFFAIRS. FROM TRAVEL COSTS TO TELEVISION AND INTERNET ADS, EVEN TO THOSE BROCHURES THAT ARRIVE IN THE MAIL. NOW, IMAGINE YOU’RE A STUDENT WITH 25 DOLLARS OR A TYCOON WITH MILLIONS AND YOU WANT TO HELP YOUR CANDIDATE OF CHOICE. THE FIRST STOP HAS TRADITIONALLY BEEN THE CAMPAIGNS THEMSELVES. THE ADVANTAGE HERE IS YOU CAN SUPPORT YOUR CANDIDATE DIRECTLY. BUT THERE’S A DISADVANTAGE, AT LEAST IF YOU’RE WELL OFF. 26-HUNDRED DOLLARS IS THE LIMIT PER CANDIDATE PER FEDERAL ELECTION CYCLE. THE NEXT LEVEL UP IS EITHER A POLITICAL ACTION COMMITTEE, ALSO KNOWN AS A PAC, OR A POLITICAL PARTY. THE CAP FOR A PAC IS SLIGHTER HIGHER, AT FIVE-THOUSAND. FOR POLITICAL PARTIES, IT’S TEN THOUSAND. BUT WHAT ABOUT DONORS WITH MUCH DEEPER POCKETS? THOSE SO-CALLED SUPER PACS, INTRODUCED IN 20-10, ALLOW UNLIMITED CONTRIBUTIONS FROM BOTH INDIVIDUALS AND CORPORATIONS. BUT THE CATCH FOR SOME IS THAT DONOR NAMES ARE MADE PUBLIC. THAT’S A BIG ISSUE FOR THOSE WITH HIGH-PROFILE INTERESTS. AS A RESULT, MORE AND MORE ARE TURNING TO TAX-EXEMPT SOCIAL WELFARE NONPROFITS - KNOWN AS 501 C FOURS - AND TRADE ASSOCIATIONS - KNOWN AS 501 C SIXES. THE RULES HERE MAKE IT HARD FOR DONORS TO KNOW WITH CERTAINTY WHERE THEIR MONEY IS GOING BUT THEY ALLOW TOTAL PUBLIC ANONYMITY FOR INDIVIDUALS AND CORPORATIONS. THIS IS WHY SOME HAVE TAKEN TO CALLING IT DARK MONEY. KIM BARKER “You have the ability to sway an election without actually saying where the money is coming from. VO TIMES REPORTER KIM BARKER HAS BEEN COVERING SOCIAL WELFARE NONPROFITS SINCE 2011. <SOT? FROM KIM BARKER> Their primary purpose is supposed to be either improving the social welfare of our community or helping businesses do trade. That’s not really defined though. The IRS doesn’t really say how much money they’re allowed to spend on politics and there are no bright lines.” ADD “they’ll just say, i’m spending this much on politics and i’m spending this much on education, but they won’t define really what education is.” VO AND AS IT STANDS NOW, THESE GROUPS DON’T HAVE TO. THE IRS HAS NOT ENFORCED OR EVEN DEFINED THE RULES IN MANY CASES, LEAVING THESE GROUPS TO INTERJECT THEMSELVES INTO MORE AND MORE RACES EVEN AS WATCHDOGS SAY IT CORRUPTS THE POLITICAL SYSTEM. I think that you’re going to see this attempt to just swamp elections right before Election Day, especially in these smaller races.” <<SOT FROM KIM BARKER> 2016, you’re going to see even more of it than 2012. I think you’re going to see much more of a sophisticated attempt by the Democrats to catch up to the Republicans in using it. 7:35 I think the whole feeling is this is the playing field we are on right now, why sit there and go, oh no we want to be accountable....like it or not, this is the new world we live in.” ENDIT