Opposition to Eminent Domain Reform Funded by Anonymous Campaign Fund

SACRAMENTO -- Today, the Howard Jarvis Taxpayers Association, the National Taxpayer Limitation Committee and the California Alliance to Protect Private Property Rights announced that they have introduced the "Taxpayer Protection Act of 2008," a ballot measure that strengthens existing laws that prohibit the use of taxpayer dollars for political activity by making it illegal for taxpayer financed organizations, such as the League of California Cities, the California State Association of Counties and the California Redevelopment Association to finance their political activities through anonymous campaign accounts.

Over the past two years, taxpayer financed public agency organizations have used anonymous campaign accounts to contribute nearly $7 million to oppose eminent domain reform ballot measures. Unlike traditional political action committees, these so-called "non-public funds" accounts do not disclose the source of their financing or contributors, limiting the ability of regulatory agencies, the media and watchdog groups to determine whether taxpayer dollars are being used to finance political activities.

"Organizations that accept taxpayer dollars should be held to the highest standard and they should disclose all the sources financing their political activities," said Howard Jarvis Taxpayers Association President Jon Coupal. "To ensure that these taxpayer financed organizations are serving the public interest, the law needs to be changed."

In 2006, these taxpayer-financed organizations contributed more than $4.7 million from their anonymous "non-public funds" accounts to oppose Proposition 90, an eminent domain ballot measure which was narrowly defeated. More recently, they have spent over $2 million to oppose the California Property Owners and Farmland Protection Act, a ballot measure supported by proponents of eminent domain reform. As evidence that these campaign accounts have become the taxpayer funded agencies' preferred method of financing their political activities, 81% of the money spent so far this year to oppose the Jarvis-sponsored eminent domain reform ballot measure has come from these anonymous accounts.

"This kind of political activity certainly explains why California is not among the more than 40 states that have reformed their eminent domain laws," said Senator Jim Nielsen (ret.), Chairman of the California Alliance to Protect Private Property Rights. "These taxpayer funded organizations should not be financing political efforts that undermine private property rights."

The "Taxpayer Protection Act of 2008" would:

- Require taxpayer financed organizations to fund political activities with nontaxpayer funds and through a political committee required to disclose receipts and expenditures like other committees.

- Ensure accountability by imposing fines and possible imprisonment for using taxpayer dollars for political purposes.

"This ballot prohibits taxpayer financed groups from using our tax dollars for political purposes," said Lew Uhler, president of the National Taxpayer Protection Committee. "They need to play by the same rules as everyone else."

The Act is sponsored by the Howard Jarvis Taxpayers Association, the National Taxpayer Limitation Committee and the California Alliance to Protect Private Property Rights, two of which are also sponsors of the California Property Owners and Farmland Protection Act, an eminent domain reform measure slated for the June 2008 ballot. For the Taxpayer Protection Act of 2008 to qualify for the November 2008 ballot, 433,971 valid signatures must be collected.