PRESS
RELEASE
Contact: Michael Napolitano
The
The Lincoln Republican Town
Committee this week, reinforced the complaint filed by the State Republican
party last month that had filed a formal request for
an immediate investigation into the likely Hatch Act violations of six Democrat
candidates for the Rhode Island General Assembly, which included Mary Ann
Shallcross-Smith. Mary Ann Shallcross-Smith is the President of
Kids Klub, a 501 (c) (3) that takes in both state and federal money.
The Committee further stated that Shallcross-Smith may be ineligible
to serve in State or Local office because of the Hatch Act, 5
U.S.C. § 1501 et seq., which prohibits
"State or local officer[s] or employee[s from] ... be[ing] a candidate for
elective office." § 1502(a). "State or local officer or
employee" is defined by the act as "an individual employed by a State
or local agency whose principal employment is in connection with an activity
which is financed in whole or in part by loans or grants made by the United
States or a Federal agency...." § 1501(4).
The Hatch Act, by its own terms, applies to officers and employees of a
"State or local agency,"
Shallcross-Smith works for a day care provider. Therefore, under 42 U.S.C. § 9851(a) private entities taking federal
money are considered state or local agencies for purposes of the Hatch Act's
limitations on political activity. § 9851(a) states: "Any agency which
assumes responsibility for planning, developing, and coordinating federal
programs and receives assistance under this sub chapter shall be deemed to be a
State or local agency." This sweeps a private day care provider into the
Hatch Act and § 9851(a) effectively modifies § 1501(4).
The Lincoln Republican Town
Committee also issued statements around Shallcross-Smith’s campaign with
specifics regarding the use of her 501 (c) (3) organizations to obtain a win in
the election on November 4th.
Michael Napolitano, Chairman of the
Nonprofit 501(c)(3)
organizations are forbidden from engaging in any political activity in support
or opposition of a candidate for public office. The Internal Revenue Code
states that 501(c)(3) organizations must "not participate in, or intervene
in (including publishing or distribution of statements), any political campaign
on behalf of any candidate for public office." A 501(c)(3) organization
that violates this rule may lose its tax-exempt status and face other financial
penalties. The
The Lincoln Republican Town
Committee also believes that several employees of the Kids Klub may have worked
on the Shallcross-Smith campaign. Said
Napolitano, “Although employees of a 501 (c) 3 may choose to do campaign work
during their non-employment time, I believe in this instance that was not
always the case. Ms. Shallcross-Smith
appears to have utilized employees during business hours to perform campaign
related tasks including the issuance of press releases with dates and times on
them.”
Said Napolitano, “There are
also many other issues with respect to
Said Napolitano, “It is clear
that this candidate may not have done her homework before she entered the race
for State Representative. In addition,
many of our campaign volunteers observed her well within the 50 foot range of
the entrance to the
These are public documents.
View the Kids Klub Federal Tax Return for the Year Ending July 2006. Click Here
View The Campaign Finance Report with a $5,000 violation. Click Here
View The Link To RI Campaign Finance law. Click Here
View IRS Tax Law on the IRS site. Click Here
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Campaign signs on the property of Kids Klub during the political campaign (below)
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STATE REPRESENTATIVE-ELECT MARY ANN SHALLCROSS-SMITH STANDING WITH CAMPAIGN LITERATURE AND BUTTONS WELL WITHIN THE 50 FOOT REQUIRED DESIGNATION AT LONSDALE ELEMENTARY SCHOOL WITH VOTERS ON ELECTION DAY.
