Facts and Law Supporting TheRestofUs.org’s Request for Preliminary Injunction Against the California Recovery Team

Section 85303 of the California Political Reform Act (page 59) makes a distinction between general purpose ballot committees and general purpose committees that make contributions to candidates. Contributions to the former are not subject to any limits, while contributions to the latter are subject to a $5,000 limit, indexed for inflation (currently $5,600).

Governor Schwarzenegger’s California Recovery Team is registered as a general purpose ballot committee and has been fundraising as though it were a general purpose ballot committee, taking in some $20 million in contributions over the $5,600 limit for committees that make contributions to candidates. However, the Recovery Team has been making substantial and ongoing contributions to at least one candidate – Schwarzenegger, which accordingly subjects it to the $5,600 limit.

Google “Californians for Schwarzenegger” – the first listing will be: “JoinArnold! Official Website :: Californians for Schwarzenegger”. The Join Arnold website, the official website of Californians for Schwarzenegger, is paid for by the Recovery Team according to its many pages. Among the many pages on the website which tout Governor Schwarzenegger’s leadership qualities and his personal story (what do they have to do with any ballot initiative?), are pages soliciting contributions for the Recovery Team (the “Contribute” link).

Additionally, until June 8, 2005, the “Privacy Policy” page said the following “Welcome to joinarnold.com, a web site paid for by Californians for Schwarzenegger.” It also contained detailed information on how to contribute to Californians for Schwarzenegger, including the campaign committee number for Californians for Schwarzenegger - 2006 (FPPC 1261585). The Privacy Policy page now says “Privacy Policy is under review”. Despite the changes to the Privacy Policy page made after TheRestofUs.org filed for a preliminary injunction against the Recovery Team, that page said and continues to say “Paid for and maintained by CALIFORNIA RECOVERY TEAM”.

In addition to providing in-kind contributions through the website, the Recovery Team has paid for many radio and television ads prominently featuring Governor Schwarzenegger and has paid for Governor Schwarzenegger’s staged political events (like the now-notorious San Jose photo-op where the Governor helped fill a pothole).

These in-kind contributions from Recovery Team to Schwarzenegger’s re-election campaign mean that any and all contributions in amounts greater than $5,600 received by Recovery Team since they started making in-kind contributions to Schwarzenegger are illegal. For this reason, TheRestofUs.org asked the Sacramento County Superior Court on May 31, 2005 to enjoin the Recovery Team from collecting any more illegal contributions and from making any further contribution to Schwarzenegger over and above the $22,300 limit for gubernatorial candidates. TheRestofUs.org further asked the court to order the Recovery Team to disgorge any amounts received in excess of the $5,600 limit on contributions to a committee that makes contributions to candidates.

A tentative ruling is expected from Judge Shelleyanne Chang by 2 p.m. on June 21, 2005. A hearing, if requested by the losing party in the tentative ruling, would follow on June 22.