Punch, Counter-punch: CSC strikes back


Citizens to Save California, a ballot-issue fund-raising group alleged to be under Schwarzenegger's control (and, therefore, to be violation of campaign finance law) has counter-sued the Fair Political Practice Commission in the next move of what will likely be a major legal brawl.

The original complaint before the FPPC (filed by TheRestOfUs.org) argues that CSC is a "controlled committee" — a ballot measure advocacy group under the influence of a candidate running for office — and therefore is limited in the amount of donations it can take from an individual donor. Their planned $100k-a-plate rubber chicken dinners (vide infra) fall about $80k outside the limits.

The crux of the matter is a ruling adopted last year, which attaches the same fundraising limits to controlled committees that apply to the candidates themselves. Without this regulation, ballot-measure groups under the direct control of a candidate appearing on the same ballot could raise an arbitrarily large amount of money from each individual donor.

The counter-suit argues requests an injunction against the FPPC on the grounds that the original regulation is illegal: Essentially, CSC alleges that the FPPC overreached in adopting the relevant ruling in the first place.

These are fairly standard legal tactics. If CSC loses their request for injunction, they'll be investigated by the FPPC, and will have to prove that Schwarzenegger isn't in charge. Given that they're advocating for ballot measures sponsored by Schwarzenegger, and that (by their own admission) they want the Governor to serve on their Board of Directors, this will be a tough sell.

I'm not a lawyer, so while I'm comfortable putting forth some of the legal arguments I'm not even going to try to evaluate them. A casual conversation with a member of the California Bar, however, suggested that the following statement isn't entirely baseless: Before the CSC can seek injunctive relief, they have to exhaust their "administrative remedies" — i.e., they have to deal with the FPPC investigation and be found against first before they can ask for an injunction.

So, chances are that the investigation will move forward. Again, the significance of this can't be underestimated: If the FPPC finds against CSC, then the Governor's ability to take special-interest and fat-cat dollars will be greatly reduced.

Open question: CSC is moving forward with their fundraisers in the meantime. IF the FPPC finds against them, what will happen to money that they've already raised and spent? What about the ads they've already run? Is paying back the money enough of a penalty?

(This just in: Rick Hasen, a guy who sounds like he actually knows what he's talking about on the legal front, is also covering this issue. Check him out at Election Law Blog.)

Posted: Fri - February 11, 2005 at 10:35 AM   | Category:     |   |   | |


©
eXTReMe Tracker