Arizona-based Americans for Responsible Leadership, having lost in California courts all the way to the Supreme Court, abandoned its appeal to the U.S. Supreme Court and revealed the true source of its $11 million contribution to a California initiative campaign.
The source of the money was the Koch-backed Americans for Responsible Leadership. It passed the money through another PAC, Center to Protect Patient Rights, based in Arizona. This is a 501(c)(4) non-profit "social welfare organization," whose principal concern is the welfare of billionaires. Eventually, the money passed to Americans for Job Security. The money has been used to oppose Proposition 30 (education funding) and to promote Proposition 32 (hobbles union political spending).
California FPPC News Release
Sacramento - Americans for Responsible Leadership, the Arizona non-profit corporation that made an anonymous $11 million donation to a California campaign committee, today sent a letter declaring itself to be the intermediary and not the true source of the contribution. It identified the true source of the contribution as Americans for Job Security, through a second intermediary, The Center to Protect Patient Rights. Under California law, the failure to disclose this initially was campaign money laundering. At $11 million, this is the largest contribution ever disclosed as campaign money laundering in California history.
"The persistence and hard work of the FPPC has won a significant and lasting victory for transparency in the political process," said Ann Ravel, Chair of the FPPC. "We will continue in this matter and all others to ensure that the people of California know who is funding political activity in this State."
California's Political Reform Act requires disclosure to the people of California of the true source of campaign donations. This information is required in most cases before the election, when it matters. The Act requires those who serve as intermediaries, or middlemen, for contributions to disclose their true source to the recipient of the contribution.
"This case also demonstrates the need for reform to make sure true donors are disclosed and can't hide behind innocuous committee names," said Ravel. "The people of California deserve better."
