Donor-rule showdown

Court hears appeal of restrictions on union contributions

Ann Imse, Rocky Mountain News

Published September 27, 2006 at midnight

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Gov. Bill Owens said in a written statement to the Colorado Court of Appeals on Tuesday that it is "patently unfair and illegal" that "a faceless national organization can drop hundreds of thousands of dollars into Colorado campaigns anonymously."

He was referring to national unions and his statement was submitted in support of Secretary of State Gigi Dennis in a lawsuit challenging a rule she imposed that requires unions to get members' permission annually to make political contributions on their behalf.

The unions have countered that Dennis' rule will not make the donations any less anonymous.

"The written authorizations (required by the rule) are maintained in the organization's office and never filed with the secretary," the plaintiffs argued in writing.

State Court of Appeals Judge James Casebolt said Tuesday that the three-judge panel would rule "as quickly as we can" in the appeal.

A decision against the state could release hundreds of thousands of dollars in contributions to Colorado campaigns for the November election. Many of those dollars are from unions, and so far they have gone largely to Democratic candidates.

The lawsuit is a tussle over the rule Dennis issued in response to the 2002 passage of Amendment 27 to the Colorado Constitution, which was sponsored by Common Cause. The political watchdog group said it would cut big-money contributions to Colorado political campaigns.

The amendment limited campaign contributions in general and barred direct contributions by unions and corporations. But it allowed them to create small-donor committees, which can accept contributions from individuals, and then make a group donation. So far this year, such groups have given more than $1.3 million to Colorado campaigns.

Plaintiffs' attorney Mark Grueskin said the unions require their members to make contributions to accounts used for political purposes, but members may ask for refunds. Less than 1 percent do, according to court documents.

Grueskin argued that the amendment specifically allows "transfer by a membership organization of a portion of a member's dues."

But Deputy Attorney General Jason Dunn told the appeals court that if the public is not confident that members of an organization have agreed to the political contributions made on their behalf, "that alone raises the appearance of corruption," and the secretary of state can act to prevent that.

After Dunn noted that one big union had collected $6 million to contribute to political causes, Casebolt asked, "Why is that bad? The amendment seems to say its point is to collect small donations."

Dunn replied that $4,000 from a small-donor committee to a legislative candidate "can change an election overnight."

Grueskin, representing two union plaintiffs, argued that the secretary of state's rule was really an attempt to change a constitutional amendment approved by the voters. He said initiatives requiring union members' approval for political contributions were floated in 1999 and 2000 in Colorado, but never drew enough signatures to make the ballot.Common Cause filed a brief siding with the plaintiffs, arguing that Dennis "has, for partisan purposes, altered a fundamental characteristic of a nonpartisan constitutional provision because she believes, without any meaningful evidence, that an aspect of the constitution favors one political party over another."

The brief goes on to say that the secretary of state's power "does not include taking action the secretary believes will benefit a particular political party during an election."

One of the plaintiff unions has nearly $400,000 in its small-donor account ready to contribute if the rule is lifted, according to documents.

imsea@RockyMountainNews.com or 303-954-5438

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