Los Angeles Times
State Sues Backers of Prop. 54
The political practices panel says those behind the measure to restrict state agencies from asking about race are hiding donors' names.
By Mitchell Landsberg
Times Staff Writer

September 4, 2003

State regulators sued the backers of Proposition 54 on Wednesday, saying they were illegally hiding the names of contributors who gave a total of more than $1.9 million to the initiative, which would restrict government agencies from asking questions about race.

In the lawsuit, the Fair Political Practices Commission demanded that Ward Connerly and his nonprofit organization, the American Civil Rights Coalition, disclose their contributors before the Oct. 7 special election. Connerly said he wouldn't, and he vowed to fight the case "all the way to the limits: the Supreme Court, the United Nations, the good Lord."

Critics have charged that Connerly is hiding donors' names either to protect them from scrutiny or because voters would be turned off if they knew who they were. He insists neither is the case.

The FPPC's demand for immediate disclosure marks a first for the commission, which usually acts after an election. The suit was filed in Sacramento Superior Court, which scheduled a hearing for Sept. 26, just 11 days before the election.

The FPPC also asked the court to assess penalties that could equal the amount that Connerly's organization failed to disclose. Steven Russo, head of the FPPC's enforcement division, said the case involved one of the most serious and flagrant abuses the commission has ever seen.

"It absolutely is," Russo said in a telephone interview. "We're dealing with almost $2 million in contributions, and a committee that knows it has a filing obligation and has declined to fulfill that obligation."

He said the commission had tried to negotiate a settlement, but Connerly refused to disclose its contributors.

Connerly said he had been willing to agree to a settlement in which he would disclose the donors and face no penalties, but that the FPPC had reneged on the deal at the last minute.

"And so I, who had never really been comfortable with releasing our list of donors in the first place, said, 'Screw it.' I think it's an autocratic agency. I think they have no basis for compelling an organization like the American Civil Rights Coalition."

A coalition of public policy organizations filed a complaint with the commission last month, saying Connerly, a University of California regent who has long campaigned against affirmative action, was using his nonprofit organization in effect to launder campaign contributions.

Nearly 90% of the money contributed to the Proposition 54 campaign committee came in lump sums from the American Civil Rights Coalition, which solicited funds for the initiative without filing campaign reports. As a result, the FPPC complained, it has been impossible for the public to determine the names of individuals or corporations who are supporting the proposition.

"Voters have a basic right to know who is funding political campaigns," FPPC Chairwoman Liane Randolph said in a statement issued by the commission. "They are entitled to this information in order to make well-informed decisions at the polls."

The commission's action was praised by organizations that had brought the complaint against Connerly.

"We're delighted," said Jim Knox, executive director of California Common Cause. "This is really an extraordinary step taken by the commission, which I think underscores the seriousness of the offense." Knox said he had seen nonprofit organizations use a similar strategy in the past to hide the identity of donors, "but never to this extent."

Maria Blanco, national senior counsel for the Mexican American Legal Defense and Educational Fund, said it was "a little late in the game" for the commission to act, but she expressed hope that the lawsuit would force disclosure before the election.

"I think people want to know: Where did this come from? It's a part of the debate," she said.

She speculated that Connerly was hiding the names of donors because they were reluctant to be associated with the controversial measure. Also, she said, "It may well be that many of them are from out of state, which I think raises the issue of non-California people funding a constitutional issue for the voters of California."

Russo said he hoped the court would act before the election. "Ultimately, it's up to the court," he said.

He noted that the FPPC rarely sues, usually settling its disputes through negotiation and the use of administrative settlements. But, he said, most violations are the result of negligence. Connerly's organization intentionally violated the law, he said.

The American Civil Rights Coalition is dedicated to ending racial or gender preferences, and serves as a fund-raising vehicle for initiatives such as Proposition 54. Its most recent filing with the Internal Revenue Service showed that nearly all its money goes to petition drives, lobbying and Connerly's salary as chairman.

In a telephone interview, Connerly said the organization supports a variety of initiatives and other efforts in several states, and did not solicit funds specifically for Proposition 54.

In fact, he said, some donors have told him they oppose the measure. He said his organization is on the same legal ground as many of the organizations that oppose the initiative, such as the Lawyers' Committee for Civil Rights.

He acknowledged that the coalition's Web site solicited donations for the initiative, but said that was irrelevant. "The people who are involved here," he said, "couldn't turn on a computer if their life depended on it."

"There's nothing to hide," he insisted. "If you saw the donors, you'd say, 'What's the big deal?' But there's a principle involved, and we're going to stand on that principle."

The coalition posted a statement on its Web site late Wednesday that elaborated on the principle. It said donors to the organization enjoy a 1st Amendment right to freedom of association "without fear of harassment or reprisal from those who might disagree with one's views." Moreover, the statement charged that the lawsuit is "clearly political in nature and is being pursued in an unprecedented and discriminatory fashion."

The organization suggested that the FPPC should have been equally aggressive in confronting claims that Lt. Gov. Cruz Bustamante had improperly accepted $2 million in contributions from an Indian tribe, using a loophole in the law to get around campaign finance limits

If passed, Proposition 54 would prevent state and local government agencies from collecting information about race, and from using racial classifications in research and reports. There would be exceptions for some medical and law enforcement reports, but health-care and police organizations have been among the strongest critics of the initiative, saying it would unreasonably blindfold them.

"It really will have extraordinary impact on the lives of Californians," said Elena Stern, spokeswoman for the Coalition for an Informed California, which brought the complaint against the American Civil Rights Coalition.

"If you can't track, prevent, cure the spread of disease and illnesses, that hurts all of us. It's bad medicine, it's bad for business, it's just bad public policy."

Connerly, who calls the proposition the Racial Privacy Initiative, has said he believes in a racially blind society. He also argues that in a multiracial, multiethnic society, racial categories are increasingly meaningless anyway.

California group sues backers of race measure
By DON THOMPSON, Associated Press - (Published September 4, 2003)
SACRAMENTO, Calif. (AP) - A state watchdog commission sued supporters of a ballot measure that would bar California from asking people about their race, alleging they failed to detail who was funding the campaign.
The Fair Political Practices Commission's suit, filed Wednesday, seeks to force Ward Connerly and his American Civil Rights Coalition to release contributor information before the Oct. 7 election.
Proposition 54 would prevent the state from asking about race or national origin when collecting data about public education, contracting and employment. Data collected for medical purposes would be exempt.
The coalition headed by Connerly, a University of California regent, has contributed more than $1.9 million to the Proposition 54 committee - about 88 percent of the committee's total receipts - without disclosing who originally donated the money, the commission alleges.
"Voters have a basic right to know who is funding political campaigns," said commission chairwoman Liane Randolph.
Connerly said he won't disclose the donors because they were contributing to the coalition, but not necessarily to support the ballot measure.
"People who donate to ACRC are not donating to a California initiative. ACRC works all over the country," Connerly said.
Connerly, who authored the initiative, has said that gathering race data does not help people and cannot prove discrimination.
A hearing was set for Sept. 26.





San Francisco Chronicle
Racial initiative lawsuit
Commission wants disclosure of donors
Chronicle Staff Report
Thursday, September 4, 2003
 
The Fair Political Practices Commission sued the American Civil Rights Coalition and its chief executive officer, Ward Connerly, on Wednesday seeking to require them to disclose the source of nearly $2 million in Proposition 54 campaign contributions.
The civil complaint, filed in Sacramento Superior Court, alleges Connerly and his organization have violated state campaign disclosure laws by failing to report the source of the money.
"This shell game that Ward Connerly has been engaging in has to stop, and the Fair Political Practices Commission took an important step in that direction," said Elena Stern, spokeswoman for the anti-Prop. 54 group, Coalition for an Informed California.
California Common Cause and other organizations had filed a complaint with the state commission in July about Connerly's group and then, on Aug. 19, filed a demand for civil action.
"We had hoped that they would voluntarily comply with their disclosure requirements, but they simply have not done so," Steven Russo, chief of the commission's Enforcement Division, said in a commission announcement of the suit.
Connerly said the group had been founded outside of California and used its donations for work all over the country -- in Michigan, Florida, Texas and other states -- not just for Prop 54.
"Anyone contributing to us did not know where their funds would be going," Connerly said. "We have some people who are contributing to Prop. 54 who may oppose (it). They had no control over where their funds have gone. Those donors have a right to freedom of association under the First Amendment without their names being disclosed."
The commission seeks an order from the court requiring Connerly and his organization to disclose the information prior to the election Oct 7. A hearing has been scheduled for Sept. 26.

San Jose Mercury News
State watchdog files suit to reveal source of pro-Prop. 54 donations

By Don Thompson
Associated Press
SACRAMENTO - California's campaign watchdog commission sued University of California regent Ward Connerly and his American Civil Rights Coalition on Wednesday, alleging they are violating state law by failing to report the source of nearly $2 million in contributions supporting Proposition 54.
It is the first time the Fair Political Practices Commission, which monitors campaign financing, lobbying and alleged conflicts of interest, has sued before an election to require campaign disclosure.
Proposition 54 would block public agencies from collecting and using many types of racial data. The commission's suit asks Sacramento Superior Court Judge Thomas M. Cecil to order Connerly and his organization to release contributor information before the Oct. 7 election. A hearing was set for Sept. 26.
Connerly said he will not disclose the donors because they were contributing to his committee, not necessarily to support Proposition 54. He referred lawsuit questions to a coalition official who did not return repeated telephone calls from the Associated Press.
Connerly's organization has contributed more than $1.9 million to the Proposition 54 committee -- about 88 percent of the committee's total receipts -- without disclosing who originally donated the money, the commission alleges.
``Voters have a basic right to know who is funding political campaigns,'' Commission Chair Liane Randolph said in announcing the suit.
``They are entitled to this information in order to make well-informed decisions at the polls,'' Randolph said.
The commission wanted Connerly's organization to disclose the information voluntarily, and had no choice but to sue when it refused, said Steven Russo, who heads the commission's enforcement wing.
The League of Women Voters of California, California Common Cause, Californians for Justice Education Fund, Lawyers' Committee for Civil Rights, Mexican American Legal Defense and Education Fund and Greenlining Institute filed a complaint last year with the commission, which said it has been investigating ever since.