The left’s network of dark money appears to have successfully influenced voters in passing Propositions 209 and 308.
Prop 209, the Predatory Debt Collection Act, was passed by voters overwhelmingly, 72 to 28 percent. It’s a California-union backed effort to eradicate all debt collection in the state; the political action committee (PAC) driving support for the measure received the vast majority of its $12.7 million from the California union, Service Employees International Union United Healthcare Workers (SEIU-UHW). They’re rooted in the leftist infrastructure of dark money, since they don’t disclose the source of their millions in funding.
Marketing for Prop 209 promised a protection against medical debt collection. However, the measure goes much further by encompassing all other debts. The measure essentially makes all debt collection futile.
It took our membership of 1,600+ Arizonans talking to voters across AZ to win #YesOn209— and now this historic victory will change the lives of so many families. Now is the time to join our movement to fix healthcare & become a member of Healthcare Rising! https://t.co/JzCMl1Qubzpic.twitter.com/DPc19GDLpW
Prop 308, which would award in-state college tuition rates to Dreamers, was passed narrowly, 51 to 49 percent. According to the campaign finance data, the proposition was backed by at least $1.2 million in out-of-state dark money, such as NextGen, SEIU-UHW, United We Dream, and American Business Immigration Coalition Action.
Another $1 million came from Chicanos Por La Causa, a Phoenix-based organization, though their tax returns indicate that neither their organization or their political action arm raise anywhere near that amount in revenue respectively.
Those millions together make up the vast majority of the $2.6 million raised, $1.8 million spent to back the measure.
An undocumented student at ASU spent weeks talking to voters about Prop 308. "It makes a difference having a Dreamer at your door telling you about their story," she says. Prop 308 results are too close to call right now. https://t.co/yJ3jIi2o7T Story by @themariagarcia_
In-state tuition rates for Dreamers will add onto the increasing cost burden faced by Arizona’s public schools. As AZ Free News reported in September, illegal immigrant children cost Arizona public schools over $748 million in 2020.
The influence of leftist dark money will likely only grow in strength in the coming years, thanks to the success of another proposition.
Prop 211, the Voters’ Right to Know Act, was also passed by voters overwhelmingly, 72 to 27 percent. It proposes to remedy the influence of dark money in the state. However, it establishes neat carveouts ensuring leftist dark money isn’t affected: corporate media, Big Tech, labor unions, and “nonpartisan” PACs.
The main financier of the measure, David Tedesco, is the founder and CEO of the Phoenix-based venture capitalist firm, Outlier.
Tedesco donates heavily to both Democrats and Republicans according to state and FEC campaign finance records. He spent $211,600 backing Attorney General Mark Brnovich’s failed Senate campaign. He’s given at least $116,400 to Democrats for this election: $100,000 to the Arizona Democratic Party, over $5,000 to Democratic gubernatorial candidate Katie Hobbs, over $5,000 to Congressman Greg Stanton (D-AZ-09), and over $5,000 to failed Democratic candidate Aaron Lieberman.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
A group of Arizonans are suing to stop a California union-backed ballot initiative aiming to render debt collection futile in the state.
The Predatory Debt Collection Act is by the political action committee (PAC), Arizonans Fed Up With Failing Healthcare, or Healthcare Rising AZ. In order to do so, it would cap medical debt interest rates to 3 percent, reduce maximum disposable earnings garnishment from 25 to 10 percent (or 5 percent if garnishment would result in extreme economic hardship), raise home equity protection from $150,000 to $400,000, raise vehicle protection from $6,000 to $15,000 or $25,000 for the physically disabled, raise bank account protection from $300 to $5,000, raise household goods protection from $6,000 to $15,000. All raised protections would also adjust for inflation annually beginning in January 2024.
The PAC markets its ballot initiative as primarily a protection against predatory medical debt collection, though its provisions go much further to encompass all other possible debts.
Healthcare Rising AZ has raised over $7.6 million in funds so far. Over $3.5 million (46 percent) of those funds came from the PAC’s former version of itself, Healthcare Rising AZ, or SEIU-UHW. The latter name refers to the California union, SEIU United Healthcare Workers, from which the current PAC received over $4 million (53 percent) of its funds.
Some Arizonans believe that the ballot measure’s summary language inaccurately reflects its scope, and may cause voters to approve something that would demolish the state’s lending industry, like credit and financing.
Arizonans opposed to the ballot initiative formed a PAC of their own, Protect Our Arizona, which filed a lawsuit against Secretary of State Katie Hobbs and Healthcare Rising AZ in the Maricopa County Superior Court. Judge Frank Moskowitz will oversee the case.
Protect Our Arizona has raised $302,500 so far, 85 percent of which came from the Arizona Creditors Bar Association.
The "Predatory Debt Collection Protection Act" initiative has been challenged in court. Judge Moskowitz assigned:
Protect Our Arizona v. Katie Hobbs, Arizona Secretary of State; Arizonans Fed Up With Failing Healthcare aka Healthcare Rising AZ CV2022-009335
— Arizona Election Law (@azelectionlaw) July 23, 2022
On Monday, the Goldwater Institute filed an amicus brief in the lawsuit. The Phoenix-based public policy research and litigation organization argued that Healthcare Rising AZ made a patently false claim in its description by saying that the initiative wouldn’t change existing law regarding secured debt.
The Goldwater Institute also argued that the ballot initiative would increase the cost and procurement difficulty of credit and loans.
“The Act is breathtakingly wide in scope: severely restricting garnishments, raising the amount of home equity protected from unpaid businesses and creditors, and drastically increasing a host of other personal property exemptions, so as to leave businesses, landlords, and judgment creditors without legal recourse for unpaid debts,” wrote the organization. “If the Act were to become law, the enormous losses it would inflict on lenders and judgment creditors would have a devastating effect on the ability of Arizonans to obtain loans or to afford housing.”
The Arizona Chamber of Commerce and the Greater Phoenix Chamber both expressed opposition to the ballot initiative as well.
Support for the initiative includes the Arizona Democratic Party, Living United for Change Arizona (LUCHA), the Phoenix Workers Alliance, the Arizona Education Association (AEA), Our Voice Our Vote, Arizona Public Health Association (AZPHA), and the NAACP. The PAC currently has over 1,200 members.
MAJOR NEWS: Healthcare Rising AZ is now 1,000 members strong! We started 2021 with fewer than 30 contributing members. Now, we have the growing people power to win big changes in our state — like passing our ballot initiative, the Predatory Debt Collection Protection Act. pic.twitter.com/iqQGWAdK7h
Counsel for Healthcare Rising, the election and employment law firm Barton Mendez Soto, also served as counsel for the PAC’s effort the past several years.
The law firm is also behind another controversial ballot initiative that voters may decide on in November, Arizonans for Free and Fair Elections, funded with a similar amount of over $7.6 million from a Democratic network of dark money. That other initiative would eliminate voter ID and proof of citizenship for voter registration, allow same-day voter registration, bar election audits like the one authorized by the state senate for the 2020 election, raise small business taxes to increase political campaign funding, and restore private funding in election administration.
As part of their signature-gathering efforts, Healthcare Rising pledged donations that would relieve $100 in medical debt for Arizona patients.
709 signatures. 132 registered to vote. $70,900 in medical debt erased. That's what happens when we come together with @WorkersUnited – we do big things!
The Predatory Debt Collection Act summary description is reproduced below:
Caps interest rate on ‘medical debt,’ as defined in the Act; applies this cap to judgments on medical debt as well as to medical debt incurred. Increases the value of assets — a homestead, certain household possessions, a motor vehicle, funds in a single bank account, and disposable earnings — protected from certain legal processes to collect debt. Annually adjusts these amended exemptions for inflation beginning 2024. Allows courts to further reduce the amount of disposable earnings subject to garnishment in some cases of extreme economic hardship. Does not affect existing contracts. Does not change existing law regarding secured debt.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
