Lt. Gov. Cruz Bustamante has released the first in a series of television ads he is planning to run against Proposition 54, which would bar the state from collecting racial data, using campaign contributions being investigated by the state's political watchdog.
Bustamante, the lone politically prominent Democratic replacement candidate in the election to recall Gov. Gray Davis, is paying for the ads' production and their airing with part of the $3.8 million he received from Indian tribes.
The money was pumped into the campaign treasury Bustamante had already established for his 2002 re-election campaign for lieutenant governor and, he argues, is not covered by the voter-approved Proposition 34 that subsequently capped contributions from individuals at $21,200 for statewide offices.
In a carefully worded letter to a Sacramento County Superior Court judge, who is scheduled to hear arguments today in a lawsuit filed against Bustamante's contributions, a lawyer for the Fair Political Practices Commission said it is "undertaking an investigation of the conduct in this case."
Luisa Menchaca, the commission's general counsel, was asked for background by Superior Court Judge Loren McMaster, who is hearing the case against the lieutenant governor. Menchaca made no conclusion about legality, noting the commission's inquiry.
2002 -- if there is no violation of any other provision of the campaign reform act approved by voters in 2000.
She added, "It would be important to determine whether the funds were solicited . . . with the intent of using them for the 2003 election. Such conduct would constitute a violation of the act at the time the contributions are made and an evasion of the contribution limits for the 2003 gubernatorial race."
Robert Stern, president of the Center for Governmental Studies in Los Angeles, a nonprofit interested in governance, social and economic problems, and a former commission general counsel, said, "I think it is extremely upsetting that Bustamante is flouting the law, and even if the courts agree with him, he is basically thumbing his nose at campaign finance laws."
Bustamante and his chief campaign consultant, Richie Ross, were unavailable Wednesday to comment on the Fair Political Practices Commission's letter.
California's nurses and doctors in voting no on Proposition 54. It's more important than politics."
The lawsuit being heard today was filed by state Sen. Ross Johnson, R- Irvine, who alleges Bustamante is attempting "to illegally use millions of dollars of special interest money in his campaign for governor."
Johnson alleges Bustamante's "lastest con" to get around the state's $21, 200 contribution limit to gubernatorial candidates is the fund transfer.
"Why was the committee (to oppose Proposition 54) created?" Johnson asked rhetorically. "It was created for the sole purpose of putting Mr. Bustamante's face and name in television ads ostensibly opposing Proposition 54."
California Democratic Party spokesman Bob Mulholland said: "I don't give a damn what Ross Johnson says. He's a caveman and good riddance to him next year.
There is absolutely no legal decision that agrees with Ross Johnson. He is a guy slowly slipping away from political power. This is his last gasp of air." Johnson will be termed-out of office in 2004.
Some of the money Bustamante transferred came from tribes that operate casinos, including the Viejas Band of Kumeyaay Indians, which pledged $1.5 million for Bustamante's year-old re-election account.
Bustamante moved to quell the uproar by saying he would not spend the money on his campaign but transfer it to a committee formed to defeat the proposition.
However, that committee was not the "No on 54" coalition formed by about 500 organizations with an interest in defeating the measure. The committee was one created by Bustamante's campaign manager, Richie Ross. The ads are being produced by Ross' son, Joaquin Ross.