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Pressure is growing on the state's Fair Political Practices Commission to close a loophole in election law that Lt. Gov. Cruz Bustamante is using to accept a $1.5 million political contribution for his recall campaign for governor.


September 04, 2003

Pressure is growing on the state's Fair Political Practices Commission to close a loophole in election law that Lt. Gov. Cruz Bustamante is using to accept a $1.5 million political contribution for his recall campaign for governor.

But the commission, which met Wednesday in Sacramento, said it is limited by staff and legal constraints as to how quickly it can act.

"It's simply not acceptable that they are going to stand by, sucking their thumbs and doing nothing," said state Sen. Ross Johnson, R-Irvine, who has filed a complaint with the FPPC over the contribution to Bustamante.

Anger at the commission was matched by outrage over Bustamante's decision to accept the donation from the Viejas Band of Kumeyaay Indians, apparently skirting campaign finance law restrictions that limit contributions to $21,200.

"I could do the same thing," state Sen. Tom McClintock said to Bustamante during Wednesday's televised debate among replacement candidates for governor. "Our people believe it's illegal. If it's not illegal, it's certainly on the shady side of the law."

Voters approved Proposition 34 in an attempt to limit the influence monied special interests could have on political campaigns by limiting large donations to individual candidates.

The new law governed state legislative candidates in 2001 and took effect for candidates for statewide office after last year's November election. The recall election for governor is the first statewide election to come under Prop. 34's provisions.

The Viejas band, which operates a casino and other businesses in San Diego County, announced Tuesday it will contribute $1.5 million to Bustamante's 2002 lieutenant governor re-election campaign committee. The tribe also announced it would contribute $21,200 to the new Yes on Bustamante Committee and spend nearly $480,000 in independent expenditures. Those donations are acceptable under the rules of Prop. 34.

The contributions are just the latest -- and largest -- Bustamante has collected through his 2002 re-election campaign committee. He received an additional $500,000 from Indian tribes and has collected several contributions of more than $100,000 from other interests.

And he continues to do so -- reporting $106,400 in contributions from several political committees Wednesday set up by Operating Engineers Local 3, a regular donor to Democratic campaigns and a major union player in Sacramento.

Bustamante also reported transferring $250,000 from his old committee into his committee against the recall.

A transfer to his committee opposing the recall is permitted -- campaign organizations devoted solely to the recall issue have no contribution limits.

But the transfer of money from his 2002 committee to Bustamante's campaign for governor has touched off the criticism from opponents and campaign finance watchdogs.

Campaign finance experts said the large donations to Bustamante's 2002 re- election committee could be transferred into his new 2003 campaign for governor under an accounting method called attribution, in which, in essence, the money is counted as though it already had been given to the lieutenant governor's 2002 campaign by previous donors.

The transfer would allow Bustamante to avoid a key provision of Prop. 34, the $21,200 limit on individual donations.

"What he's saying is that this isn't Indian money, this is old donor money that he already spent," said Vigo "Chip" Nielsen, an attorney and an expert on California campaign law. "But I get to respend it by attributing it to someone else who already gave to me."

Bustamante campaign officials have repeatedly defended the contributions from Indian tribes as money from interests with whom he shares common values and goals.

Officials also said the transfer of the funds between committees is completely legal within the rules of Prop. 34.

And that touched off a

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