PAC Fighting Against 3 Propositions Got 99 Percent Of Funds From Outside Arizona

PAC Fighting Against 3 Propositions Got 99 Percent Of Funds From Outside Arizona

By Terri Jo Neff |

A political action committee registered with the Arizona Secretary of State’s Office this summer raised nearly $325,000 in the third quarter of 2022, with only $33 of that being reported as coming directly from Arizona contributors.

Will Of The People is urging voters to vote “no” on Propositions 128, 129, and 132 which are on the 2022 General Election ballot. But who is behind those efforts came under scrutiny this week upon the filing of the group’s latest campaign finance report.

The website for Will Of The People notes 20 percent of contributions are “coming from out of state,” although a recent political mailer reflects an out-of-state contribution rate of 43 percent. However, that rate could be as high as 99.9 percent based on the $324,959.44 the group received July 17 through Sept. 30.

It is the corporate contributions listed on group’s 2022 post-primary election (Q3) Schedule C4b which has garnered review, including 11 payments from Washington, D.C.-based The Fairness Project totaling more than $254,633. The other cash contributions came from Berkeley-based Every Single Vote ($70,000) and another D.C.-based donor, Ballot Initiative Strategy Center ($326.11).

Another $33 total in cash came from four individual contributors in Arizona, according to the PAC’s treasurer, Dacey Montoya.

The Fairness Project is funded in turn by the Service Employees International Union (SEIU), which is “dedicated to improving the lives of workers and their families and creating a more just and humane society” and has won praise from U.S. Secretary of Transportation Pete Buttigieg.

While Will Of The People is focused on Props 128, 129, and 132, SEIU is behind Healthcare Rising AZ, which supports efforts to amend Arizona statutes by adding restrictions to how medical debt can be collected. Healthcare Rising AZ recently received $15,000 in contributions from the Maricopa County Democratic Party and Arizona Democratic Party.

THE PROPOSITIONS:

Prop 128 would amend the Arizona Constitution to allow the state legislature to amend, divert funds from, or supersede an initiative or referendum measure enacted by the people of Arizona if the measure is found to contain illegal or unconstitutional language by the Arizona or United States Supreme Court.

Currently, state law prohibits legislators from correcting the illegal or unconstitutional language. A “yes” vote would amend the Constitution to allow such corrections, while the “no” vote advocated by Will Of The People would leave the restrictive prohibition in place.

Prop 129 would amend the Arizona Constitution to limit an initiative measure to a single subject and require that subject to be expressed in the title of the initiative measure. A “yes” vote supports the proposed amendment while a “no” vote shall have the effect of retaining existing law on initiative measures.

Prop 132 would amend the Arizona Constitution relating to initiative and referendum measures by requiring any initiative or referendum that seeks to approve a tax to receive at least 60 percent of the votes cast to become law. A “yes” vote is for amending the Constitution while a “no” voter leaves the existing law of 50 percent plus 1 in effect.

Gilbert Mayor, Council Hit With Claim For Alleged 1st Amendment Violations

Gilbert Mayor, Council Hit With Claim For Alleged 1st Amendment Violations

By Terri Jo Neff |

An order last month by Gilbert Mayor Brigette Peterson for town police officers to remove three people from a council meeting has resulted in a notice of claim being served against town officials for First Amendment violations.

A notice of claim is required under Arizona law before a party can initiate a lawsuit against a public entity. On Thursday, such a notice was served on the Gilbert mayor and council members on behalf of Ryan Handelsman, Dr. Brandon Ryff, and Joanne Terry, who contend they were forced out of Sept. 20 town council meeting for engaging in constitutionally protected speech.

According to attorney Tim La Sota, his three clients attended the meeting during which dozens of protest signs were taken into the council chambers. Some of the signs were printed with the phrase “Stop Lying” while others read “Don’t Mesa My Gilbert.”

Peterson interrupted the meeting at one point and ordered a Gilbert police officer to remove a 6-inch by 24-inch “Stop Lying” sign Terry was holding in the back of the room. Terry set the sign down and the officer did not confiscate it.

A short time later, Handelsman addressed the mayor and council during the call to the public to challenge town officials to cite a statute or code being violated by those holding signs. Then Handelsman, Ryff, and Terry each decided to silently hold their signs.

“The Mayor halted the meeting and ordered the police to remove Dr. Ryff, Mr. Handelsman and Ms. Terry from the room. The police escorted them out of the meeting without incident,” according to the notice of claim, which notes the town code does not prohibit signs in the council chambers.

A First Amendment obstruction or retaliation violation could cost the town tens of thousands of dollars in legal fees plus potential damages to each of the three claimants. However, La Sota says his clients will settle for $1, but it will also cost something other than money.

In exchange for a complete release of their claims, the claimants will accept $1 as damages if Peterson and the town of Gilbert issue an official apology, La Sota wrote. In addition, Peterson would have to attend a First Amendment training class.

According to the notice of claim, Handelsman, Ryff, and Terry acknowledge that the government “need not tolerate actual disruptions of government business” and that courts have held that municipalities may enforce “certain free-speech restrictions.”

But those restrictions apply to time, place, and manner of public comment, La Sota noted, and even then courts have ruled such restrictions “must be reasonable, consistently enforced, and fall within constitutional parameters.”

Free speech restrictions by the government are also reviewed to ensure they “are both viewpoint neutral, equally and consistently enforced, as well as narrowly-tailored to meet the needs of the governing body to conduct its business, free of actual disruptions,” La Sota noted.

It is also not allowable to engage in retaliation against someone for asserting their First Amendment rights, which is what the notice of claim alleges Peterson did when she ordered Ryff removed. La Sota points to Ryff’s critical comments about the mayor during his call to the public comments at the prior council meeting.

“Then, at the very next meeting, 50 ‘Stop Lying’ signs show up with essentially the same message,” the notice of claim states, adding that Ryff contends Peterson believed Ryff was responsible for the signs.

“Dr. Ryff’s rights were violated by a vindictive Mayor who seized the opportunity to retaliate against him for years of political opposition and for having filed ethics complaints against her in the past,” the notice of claim states.

The notice of claim further alleges Handelsman, Ryff, and Terry were not being disruptive in how they displayed their signs at the Sept. 20 meeting. It also contends Peterson did not treat all sign-holders the same during that meeting, including an attendee with a visible “Don’t Mesa My Gilbert” sign who was not forced to leave the meeting.

“Certain persons silently holding signs in the back of the room may have been a distraction to the Mayor, but not every distraction is necessarily a disruption and not every disruption is an actual disruption which impedes the ability of the Council to do its business,” La Sota notes, citing a major First Amendment ruling from the Ninth Circuit of the U.S. Court of Appeals (Norse v. City of Santa Cruz, 2010).

Peterson later commented on her actions, arguing she could not read what was written on the signs. Yet that does not explain why his clients were ordered out of the council chambers while others with signs were allowed to remain, La Sota wrote in the notice of claim.

Town officials have 60 days to reject or accept the settlement demand included in the notice of claim.

Six U.S. Banks Served With Investigative Demands Over Their ESG Policies 

Six U.S. Banks Served With Investigative Demands Over Their ESG Policies 

By Terri Jo Neff |

Six U.S.-based global banking firms which participate in Environmental, Social, and Governance (ESG)  practices that seek to restrict investment in companies engaged in fossil fuel-related activities are under investigation by 19 states, it was announced this week.

Arizona Attorney General Mark Brnovich and 18 other state attorneys general served civil investigative demands against Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo related to each company’s involvement with the United Nations’ Net-Zero Banking Alliance (NZBA). The demands act as legally enforceable subpoenas.

NZBA-member banks have promised to set emissions reduction targets in their lending and investment portfolios to reach net zero by 2050. It is one example of ESG practices which have come under scrutiny for prioritizing policy initiatives ahead of sound investment strategies.

In the case of the NZBA initiative, it could lead to some farmers, oil leasing companies, suppliers, and other businesses connected with fossil-fuel production being unable to get loans or find investors from the six banking firms and their affiliates, according to Brnovich’s office.  

“American banks should never put political agendas ahead of the secure retirement of their clients,” Brnovich said in announcing Arizona’s involvement in the investigation. “These financial institutions are entrusted with protecting a different type of green.”

Arizona, Kentucky, Missouri, and Texas are the leadership states on the NZBA investigation. Some of the 10 interrogatories included in the civil investigative demands served on the six banking firms seek information on:

  • All divisions, groups, offices, or business segments whose responsibilities relate or used to relate to membership in the Net-Zero Banking Alliance or to ESG Integration Practices, and identify all executives, directors, officers, managers, supervisors, or other leaders of each division, group, office, or business segment;
  • Each Global Climate Initiative with which the firm is affiliated and an explanation of the reasons for choosing to join such Global Climate Initiatives;
  • Who made the decision to join each Initiative, including any involvement or input from the Board of Directors, investors, or Covered Companies; 
  • All involvement in each Global Climate Initiative, including dates as well as “any promises, pledges, or other commitments” made by each company;
  • A detailed description of the company’s involvement with the Net-Zero Banking Alliance, including identities of all individuals who have represented the company within the NZBA.

In August, Brnovich joined Arizona in a 21-state coalition in commenting on a U.S. Securities and Exchange Commission (SEC) proposed rule that would add requirements for investment funds which consider ESG factors in their investment decisions. The proposed SEC rule was seen by the states as an attempt to transform the agency from a “federal regulator of securities into a regulator of social ills.”

The same month, Arizona was one of 19 states which sent a letter that put investment firm BlackRock on notice that its actions on a variety of governance objectives may violate multiple state laws by using “the hard-earned money of our states’ citizens to circumvent the best possible return on investment.”

BlackRock, which oversees some pension funds in those states, has been engaging in a “quixotic climate agenda” that appeared to be sacrificing pensioners’ retirements instead of focusing solely on financial return.

“Fiduciary duty is not lip service. BlackRock has an obligation to act in the sole financial interest of its clients,” the Aug. 4 letter stated. “Given our responsibilities to the citizens of our states, we must seek clarification on BlackRock’s actions that appear to have been motivated by interests other than maximizing financial return.”

And in November 2021, Brnovich announced a review of Climate Action 100+ and its investment company members which manage trillions of dollars in assets. This was prompted by concerns that the firms will put their ESG goals ahead of well-established fiduciary duties.

This could include inappropriate pressure and anticompetitive conduct against the members’ own clients and customers who do not comply with the ESG practices of Climate Action 100+, according to the attorney general’s office.

Maricopa County Recorder Under Fire for Misinformation on Prop 309

Maricopa County Recorder Under Fire for Misinformation on Prop 309

By Terri Jo Neff |

If Maricopa County Recorder Stephen Richer intended to quell support for Proposition 309 last week, his effort appears to have backfired. And on top of that, he is the subject of an investigation by the Arizona Attorney General’s Office, sources say.

On Oct. 11, Richer issued an email via his county account to media outlets promoting a letter “from all 15 Arizona County Recorders” about Prop 309, which the email and the letter state the Arizona Association of County Recorders (AACR) opposes.

The next day, election attorney Tim La Sota asked Attorney General Mark Brnovich to investigate the AACR’s use of Maricopa County resources to sway voters into casting a “no” vote. Richer’s actions on behalf of AACR violated two state laws which prohibit the use of public funds and public resources to influence any campaign or contest, La Sota wrote.

Prop 309 seeks to require voters who use early ballots to vote by mail to write their birthdate and a government-issued identification number on the early ballot affidavit along with the voter’s signature, which is already required. Often referred to as universal voter ID, it would also require in-person voters to present a form of photo identification such as a driver’s license or state identification card.

The AACR letter, which is printed on letterhead listing  the names of the county recorders along the side, is signed “The People Responsible for Early Voting in Arizona.” The email goes further, showing it being “signed” by each of the individual recorders with their name and county noted, implying the county recorders were unanimous in their opposition.

Like many government associations, the AACR conducts its business based on a majority rule. This includes the association’s position on various matters, which is not always the same as that of the individual recorders.

For instance, Cochise County Recorder David Stevens is a very vocal proponent of Prop 309 and was consulted by lawmakers when the legislation’s language was drafted. This raised questions about the veracity of the email and letter issued by Richer, particularly after he retweeted that “Arizona’s county recorders put out a letter unanimously opposing #prop309.”

And in a subsequent Twitter exchange, Richer insisted it was a “unanimous voice vote…no nays, all ayes” with 14 of the 15 counties present (Apache County not in attendance).

Stevens wrote to Richer, demanding “a public retraction of this letter along with your apology for misleading the public.” He also questioned whether Richer was “pushing your own agenda” by giving the false impression of unanimity among the recorders on the Prop 309 issue.

The situation was further aggravated by the fact a newspaper in Stevens’ county published part of the AACR’s anti-Prop 309 letter with him listed as a signer.

Stevens told AZ Free News he was out of the country when the voice vote was conducted on Sept. 29. He was represented at the meeting by his chief deputy, who does not have a blanket proxy to vote on Stevens’ behalf.

“She was not elected by the people of Cochise County and is very careful to not speak on my behalf unless I have asked her to speak for me,” Stevens explained.

As to the statement by Richer, who is an attorney, that it was a unanimous vote, Stevens said any elected official—particularly one responsible for conducting elections—should know “that not voting no is not the same as voting yes.”

Stevens plans to push for all AACR votes in the future to be conducted by roll call, so there is documentation of how each recorder votes on a specific matter.

There has been no retraction by Richer nor AACR as of press time, but he quickly conceded it was “not appropriate” for him to post the AACR letter to the Maricopa County website.

“The letter has been taken down,” Richer said after the controversy erupted. As to La Sota’s complaint to the attorney general, Richer suggested the matter has “already been resolved” with the removal of the letter.

But election integrity proponents say the matter must not end there, as there must be consequences for the actions of AACR—and Richer specifically—for giving voters incorrect information about the group’s anti-Prop 309 position. In the meantime, supporters of strengthening voter ID laws are reporting more interest from voters on the subject.

Some Top County Election Officials May Have Violated Law In Pushing “No” On Prop 309

Some Top County Election Officials May Have Violated Law In Pushing “No” On Prop 309

By Terri Jo Neff |

Arizona Attorney General Mark Brnovich has been asked to look into whether some of the state’s top election officials violated state law this week by issuing a statement opposing Proposition 309, which is on the Nov. 8 statewide ballot.

Prop 309 is before the voters to decide whether to amend several of Arizona’s current election laws. For an example, a “yes” vote would require voters to write their birthdate and government-issued identification number on the concealed early ballot affidavit, and for those who want to vote in-person they would be required to present an official photo identification at their polling place.

The Arizona Association of County Recorders (AACR) issued a statement Tuesday advocating a “no” vote which would leave in place the state’s existing laws about early ballot affidavits and voter identification. Among the duties of a county recorder is to conduct early voting, including mailing out early ballots and verifying signatures when early ballots are returned by voters.

Maricopa County Recorder Stephen Richer is the president of AACR and is the one who distributed the anti-Prop 309 statement on Tuesday. Yet according to election law expert Timothy La Sota, it appears Richer has violated two Arizona laws in connection with the statement, which was also posted to a website controlled by Maricopa County.

“Contrary to what Mr. Richer appears to believe, the County Recorder’s website is a publicly funded website, and using it as a vehicle to promote Mr. Richer’s political agenda is not only inappropriate, it is illegal,” attorney La Sota wrote, pointing Brnovich to Arizona Revised Statute 11-410(A) and 16-192(A). “This website is not at Mr. Richer’s disposal to use as a campaign website for his favored political causes.”

That first statute states a county “shall not spend or use its resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value” for the purpose of swaying an election outcome.

The second statute prohibits the state and “any public agency, department, board, commission, committee, council or authority” from spending or using public resources to influence an election, including the use of “computer hardware and software, web pages and personnel and any other thing of value of the public entity.”

La Sota pointed out that data associated with the document indicates the AACR statement -which includes the names of all 15 county recorders- was created by one of Richer’s employees during office hours, another “no no,” he told the attorney general.

“As a countywide elected official charged with various election related duties, Mr. Richer should know this,” La Sota added. “And his actions in placing his thumb on the scale illegally in this context do not auger well for maintaining a professional perception in other realms.”

During an interview Thursday morning, Amy Yentes of the Arizona Free Enterprise Club discussed why Arizona law expressly prohibits the government from electioneering activities in an effort to sway a particular race or contest.

“This is a protection for taxpayers,” Yentes told KFYI’s James T. Harris. She also supports La Sota’s request to Brnovich for an investigation into how the AACR’s anti-Prop 309 statement came to be created by a Maricopa County employee and posted to the county’s website.

“What is more disturbing is that Stephen Richer is an election administrator,” Yentes told Harris. “It is quite concerning that he can’t even follow basic election law and yet we’re trusting him to administer our elections.”

But that is not the only problem stemming from Richer’s distribution of the anti-Prop 309 statement, which he said on Tuesday afternoon was approved by AACR members by “unanimous voice vote (no nays, all ays).” Richer also tweeted that “14 of the 15 counties were present” for the vote, with only Apache County absent.

According to Cochise County Recorder David Stevens, the inference voters will make from the AACR statement and Richer’s social media comments is that all 15 county recorders are against Prop 309. In fact, Richer retweeted someone else’s comment that the vote was unanimous against the proposition.

That, Stevens says, is not true. In fact, he is an adamant supporter of Prop 309 and has demanded Richer correct the AACR statement and clear any misperception.

“Stephen, I was out of the office yesterday and did not see this email. I STRONGLY OBJECT to anyone assigning an opinion to me without my expressed consent. Silence is NOT acceptance. I do support prop 309 and kindly request you remove my name from this list and issue a retraction immediately,” Stevens wrote.

As of press time, Stevens had no contact from Richer about the Prop 309 issue. He was, however, included on a mass email the Maricopa County Recorder sent to his fellow recorders Wednesday evening.

“Good luck Recorders!” the subject line reads, before Richer wished everyone “the absolute best this early voting season.”