Americans for Responsible Leadership Ordered to Disclose Funding Sources

Phoenix-based Americans for Responsible Leadership has been ordered to disclose documents to California election officials looking to determine the source of an $11 million donation made by the nonprofit group that is being used to help defeat Proposition 30, a ballot measure in California that would temporarily raise the state's sales tax, Bloomberg News reports.

At a preliminary hearing last week, state court Judge Shelleyanne W.L. Chang stated that "a review of the documents is needed" before the general election on Tuesday or "the people of the state of California will suffer irreparable harm." The case was brought against Americans for Responsible Leadership after the organization failed to comply with an audit mounted by California's Fair Political Practices Commission.

The $11 million donation by the nonprofit group to defeat Proposition 30 and Proposition 32, which would restrict the use of union dues for political purposes in California, is part of a rising tide of donations unleashed by the Supreme Court's Citizens United decision on behalf of specific candidates or policy initiatives.

"Because the records sought by petitioner may be highly relevant to the upcoming election," said Gary Winuk, chief of enforcement at the commission, "it is imperative that respondent be ordered to produce the records immediately in order to avoid irreparable harm to petitioner and the voters of California."

Gullo, Karen. Milford, Phil. “Arizona Nonprofit Told It May Need to Reveal Donors.” Bloomberg News 10/31/12.

Primary Subject: Public Affairs
Location(s): Arizona, California, Phoenix

FC018469