Tuesday, February 08, 2005
California - Group claims governor breaks fund-raising rules - sacbee.com
California - Group claims governor breaks fund-raising rules - sacbee.com: "A political watchdog group accused Gov. Arnold Schwarzenegger of violating California campaign finance law in a complaint filed Monday with the state's Fair Political Practices Commission.
TheRestOfUs.org, a nonprofit organization that monitors campaign fund raising, said the governor is breaking the law by 'controlling' the activities of a business group's finance committee that is raising money to support Schwarzenegger's agenda in a series of ballot measures."
If he were in control of the committee, which aides to the governor insist he's not, FPPC rules imposed last year would prohibit individual contributions in excess of $22,300.
The committee in question, Citizens to Save California, has not yet reported any contributions. But it has been soliciting donations without limits. It plans to help Schwarzenegger reach his goal of raising $50 million for four measures he wants on a special election ballot later this year. His package includes drawing new legislative district lines, restricting state spending and converting the state's pension system to a 401(k)-style retirement plan.
In the past, Schwarzenegger-controlled campaign committees have solicited large six-figure donations from business, corporate and real estate interests to support his ballot measures.
But under a new FPPC rule in place since November, candidate-controlled ballot measure committees are limited to collecting donations at the same level the candidate could take for his or her own election.
"The committee is being used by the governor and his agents to illegally bypass the FPPC's rules restricting campaign contributions to candidate-controlled ballot measure committees," Derek Cressman, director of the group, wrote in a letter he hand-delivered to FPPC offices Monday.
Cressman's letter asked the FPPC to investigate the committee's relationship to Schwarzenegger and to require it to comply with the contribution limits.
Margita Thompson, Schwarzenegger's press secretary, said the Republican governor "coordinates" fund-raising activities with the committee but doesn't "control" how it spends its money.
Marty Wilson, who is Schwarzenegger's chief fund-raising aide, said the FPPC rules are clear.
"The governor can play a role in the CSC (Citizens to Save California) in that he can be a fund-raiser for them, he can be a spokesman for them. He can appear in their ads. He can even be honorary chairman of their campaign.
"What he can't do is control how they spend their money or make final decisions on which measures they move forward with when it comes time to collecting signatures. We're complying with both the spirit and the letter of the law."
The committee in question was started last month by businessmen with close ties to Schwarzenegger. Its board includes Allan Zaremberg, president of the California Chamber of Commerce; William Hauck, president of the California Business Roundtable; and Joel Fox, who worked for Schwarzenegger in the recall campaign and later sponsored a workers' compensation measure backed by Schwarzenegger.
The committee's consultant is Rick Claussen, who helped run Schwarzenegger's campaign last year for Propositions 57 and 58, which were part of his deficit-reduction plan after taking office.
A statement issued by the committee late Monday said, "Although CSC may support ballot measures that are also supported by Gov. Schwarzenegger as part of his reform package, CSC is not controlled by the governor or his agents."
Liane Randolph, chairwoman of the FPPC, said she couldn't talk about the specific allegations surrounding Schwarzenegger or the campaign committee. But she seemed to reinforce Wilson's interpretation of the law.
"If you appear at a fund-raising event for this committee, we wouldn't consider that, in and of itself, to mean you are in control," she said. "If you speak in favor of their goals, we wouldn't consider that, in and of itself, to be control."
Under the law, a campaign committee is candidate-controlled if it "acts jointly" with the candidate "in connection with the making of expenditures." The law also says a candidate controls a committee if the candidate or an agent for the candidate "has a significant influence on the actions or decisions of the committee."
Schwarzenegger is scheduled to appear at a "presell" fund-raiser with about 75 invited guests at the Sheraton Hotel at noon today. He'll lay out his agenda and ask guests to contribute later, an aide said.
About the writer:
* The Bee's Gary Delsohn can be reached at (916) 326-5545 or gdelsohn@sacbee.com.
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TheRestOfUs.org, a nonprofit organization that monitors campaign fund raising, said the governor is breaking the law by 'controlling' the activities of a business group's finance committee that is raising money to support Schwarzenegger's agenda in a series of ballot measures."
If he were in control of the committee, which aides to the governor insist he's not, FPPC rules imposed last year would prohibit individual contributions in excess of $22,300.
The committee in question, Citizens to Save California, has not yet reported any contributions. But it has been soliciting donations without limits. It plans to help Schwarzenegger reach his goal of raising $50 million for four measures he wants on a special election ballot later this year. His package includes drawing new legislative district lines, restricting state spending and converting the state's pension system to a 401(k)-style retirement plan.
In the past, Schwarzenegger-controlled campaign committees have solicited large six-figure donations from business, corporate and real estate interests to support his ballot measures.
But under a new FPPC rule in place since November, candidate-controlled ballot measure committees are limited to collecting donations at the same level the candidate could take for his or her own election.
"The committee is being used by the governor and his agents to illegally bypass the FPPC's rules restricting campaign contributions to candidate-controlled ballot measure committees," Derek Cressman, director of the group, wrote in a letter he hand-delivered to FPPC offices Monday.
Cressman's letter asked the FPPC to investigate the committee's relationship to Schwarzenegger and to require it to comply with the contribution limits.
Margita Thompson, Schwarzenegger's press secretary, said the Republican governor "coordinates" fund-raising activities with the committee but doesn't "control" how it spends its money.
Marty Wilson, who is Schwarzenegger's chief fund-raising aide, said the FPPC rules are clear.
"The governor can play a role in the CSC (Citizens to Save California) in that he can be a fund-raiser for them, he can be a spokesman for them. He can appear in their ads. He can even be honorary chairman of their campaign.
"What he can't do is control how they spend their money or make final decisions on which measures they move forward with when it comes time to collecting signatures. We're complying with both the spirit and the letter of the law."
The committee in question was started last month by businessmen with close ties to Schwarzenegger. Its board includes Allan Zaremberg, president of the California Chamber of Commerce; William Hauck, president of the California Business Roundtable; and Joel Fox, who worked for Schwarzenegger in the recall campaign and later sponsored a workers' compensation measure backed by Schwarzenegger.
The committee's consultant is Rick Claussen, who helped run Schwarzenegger's campaign last year for Propositions 57 and 58, which were part of his deficit-reduction plan after taking office.
A statement issued by the committee late Monday said, "Although CSC may support ballot measures that are also supported by Gov. Schwarzenegger as part of his reform package, CSC is not controlled by the governor or his agents."
Liane Randolph, chairwoman of the FPPC, said she couldn't talk about the specific allegations surrounding Schwarzenegger or the campaign committee. But she seemed to reinforce Wilson's interpretation of the law.
"If you appear at a fund-raising event for this committee, we wouldn't consider that, in and of itself, to mean you are in control," she said. "If you speak in favor of their goals, we wouldn't consider that, in and of itself, to be control."
Under the law, a campaign committee is candidate-controlled if it "acts jointly" with the candidate "in connection with the making of expenditures." The law also says a candidate controls a committee if the candidate or an agent for the candidate "has a significant influence on the actions or decisions of the committee."
Schwarzenegger is scheduled to appear at a "presell" fund-raiser with about 75 invited guests at the Sheraton Hotel at noon today. He'll lay out his agenda and ask guests to contribute later, an aide said.
About the writer:
* The Bee's Gary Delsohn can be reached at (916) 326-5545 or gdelsohn@sacbee.com.
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