Gubernatorial candidate U.S. Rep. Mark Green, R-Wis., filed a lawsuit Friday to block a State Elections Board decision ordering his campaign to return $467,844 in contributions from political action committees not registered in Wisconsin.

Green's court action was in response to the Election Board's order sent Wednesday, in which the SEB gave Green official notice he had 10 days to rid his campaign of the disputed money.

"Green for Wisconsin appealed the retroactive order of the State Elections Board that reversed 30 years of their own precedent and ignored their own legal counsel's advice," Green's Campaign Manager Mark Graul said.

Graul referenced the rule adopted in January 2005 — one day after Green began his run for governor — that says money used for gubernatorial campaigns must come from groups registered in Wisconsin. The money in question was part of $1.3 million Green legally raised as a member of the U.S. House, but later transferred to his state account to run for governor.

Democratic Gov. Jim Doyle's campaign is confident Green violated established law, saying the rule has been on record since 1974.

"It's a pretty extraordinary day when a member of the U.S. Congress goes to court to endorse the idea that he doesn't have to follow Wisconsin laws," Anson Kaye, communications director for Doyle's campaign, said. "Congressman Green's latest attempt to disobey the law shows just how far he will go to hold on to this illegal PAC money."

Yet Don Millis, Green for Wisconsin's attorney and former Elections Board chairman, said in the complaint that rules and opinions had not changed regarding transferring federal money to state campaigns. The complaint references three separate occasions in the past in which the SEB allowed similar transfers as the one Green made.

"Just a few years ago, the Elections Board unanimously voted to allow [now-Milwaukee Mayor] Tom Barrett, a Democrat, to do exactly what Mark Green has done," Graul said.

The Republican Party of Wisconsin agreed, filing a complaint to the SEB Thursday about money then-U.S. Rep. Barrett transferred in November 2000 when he was running for governor.

Both Green and the Elections Board could appeal any ruling from the Dane County Circuit Court, which could keep the matter in court beyond the Nov. 7 general election.

Lautenschlager's role

Lautenschlager excused herself Thursday from representing the SEB in Green's case, saying the board's decision could affect her opponent, Dane County Executive Kathleen Falk.

"The ruling in this case could possibly implicate Falk, because in running for attorney general — as a statewide candidate — she wouldn't be able to take lobbyist contributions," Greg Leifer, Lautenschlager's campaign manager, said.

Leifer added the campaign has not fully reviewed the matter and is also questioning a $10,000 contribution to Falk's campaign, allegedly exceeding financing limits.

According to the SEB, Falk received the lobbyist contributions to her county executive account before her decision to run for attorney general and received the $10,000 in a four-year cycle in which she did not exceed state limits.

Adam Collins, communications director for Falk's campaign, said Lautenschlager is playing politics and should represent the SEB against Green.

"What [her recusal] shows is an example of Lautenschlager refusing what the people of Wisconsin elected her to do," he said. "She's refusing to stand up to Mark Green on his illegal campaign money, but she should."

Falk and Lautenschlager face off in the Democratic primary election Tuesday.