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Boettcher Foundation first to challenge gift ban with suit

Sue Lindsay, Rocky Mountain News

Published February 6, 2007 at midnight

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The Boettcher Foundation filed a lawsuit Monday seeking clarification of Amendment 41's effect on merit scholarships, making it the first organization to challenge the controversial gift-ban law in court.

Boettcher President Tim Schultz said the foundation doesn't want to have to worry about a student's family ties when awarding scholarships.

Amendment 41 bans elected officials and government employees - along with their families - from taking gifts worth more than $50 a year.

The foundation, which awards four-year scholarships to high school students, will interview 72 candidates next week. It plans to award 40 scholarships by the end of the month.

"The confusion over the effect of Amendment 41 is causing them a lot of anxiety," Schultz said.

The lawsuit was filed in Denver District Court by the foundation and four students receiving scholarship funds.

It names Gov. Bill Ritter and Attorney General John Suthers as defendants.

Suthers' office agrees with Boettcher Foundation lawyers that the scholarships are exempt from the amendment because the law allows gifts in exchange for something of equal or greater value. Students are giving back something of value by maintaining a minimum grade-point average and agreeing to stay in Colorado.

"We do not believe their scholarships fall under Amendment 41," Nate Strauch, spokesman for the attorney general, said Monday. "We believe the lawsuit is moot."

But Schultz said the Boettcher board reluctantly took the legal action because "no answers about the impact of Amendment 41 are being given, there is no time frame for when we will get them, and there is no process in place for getting an answer," Schultz said.

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