AUGUSTA — Maine Leads will be assessed a $10,000 penalty for its failure to file timely financial reports with the Maine Commission on Governmental Ethics and Election Practices for its fund raising efforts begun in 2007.

The unanimous vote by commissioners represented a reduction from the $18,000 fine recommended by commission staff, and the $2.2 million allowed by campaign finance rules, and follows months of testimony and investigations.

In arguing for the conservative nonprofit’s reduced fine, attorney Dan Billings explained the Maine Leads’ campaign activities were limited in 2008. He said the organization submitted signed petitions to the secretary of state in 2008 and the bulk of its fund raising took place in 2007. Those petitions became citizen initiatives on the November 2009 statewide ballot. Question 2, which sought to reduce excise tax fees, and the tax reform initiative known as TABOR II presented as Question 4, were endorsed by Maine Leads.

“Maine Leads turned in the petitions in 2008,” Billings said of the ballot question committee’s work. “Petitions were in the secretary of state’s hand and there was nothing to do.

“Information was provided and available to the public well before the election,” Billings said.

Maine Leads disclosed the identities of its major national funders in mid-October, after the commission ruled it must file campaign finance reports for its actions in 2007 and 2008.

Billings also said Maine Leads’ actions were disclosed in the campaign finance reports of the three political action committees the group supported and said Maine Leads’ financial support was documented in press reports. He argued against the maximum $5,000 penalty, per incident, a position shared by commissioners.

“Look at range from zero to $5,000 and where it falls,” board Chairman Walter McKee said of Maine Leads’ actions.

“Can’t find it’s the most egregious. We’re going to throw around a number — not scientific or objective,” he said of the reduced penalty.

“If the fines are what we see as an appropriate level, our organization will move on and chock this up as a learning experience,” Billings told commissioners. “There are matters of principle, but what’s your principle worth to you?”

In moving for a reduced penalty, McKee said his decision to reduce the penalty was not influenced by Billings’ arguments Maine Leads may appeal.

“I think $10,000 takes into account egregiousness of conduct,” McKee said.

Commissioners voted unanimously to levy a $10,000 penalty.

Billings, while pleased by the reduced penalty, was not prepared to preclude the possibility of an appeal.

“My client is still considering whether or not to appeal the commission's determination,” Billings said. “If there is an appeal, it will be an appeal of the commission's decision that Maine Leads was required to file as a ballot question committee. The appeal would be based on the legal arguments of the meaning of the statute that was in effect in 2007 and 2008. The amount of the penalty would not be the issue in the appeal.”

Billings also said Maine Leads appreciated the relative leniency of the commission.

“Though my client disagrees with the amount of the penalty, my client appreciates that the commissioners listened to and took into consideration the arguments offered for a lesser penalty and ultimately imposed a penalty that was substantially less than the one recommended by the commission staff.”

Billings may also appreciate the discounted sticker price of failing to comply with Maine campaign finance law for matters of practicality, not principle: The 2008 tax report filed by Maine Leads registered a $24,399 operating loss.

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