Appeals Court Will Hear Rules Case

Denver CO, September 21, 2006 – The Colorado Court of Appeals Tuesday agreed to hear the appeal of a Denver District Court decision last Friday invalidating a Secretary of State rule requiring small donor political groups to seek members’ permission before donating their dues money to campaigns.

“I’m pleased that the court has agreed to hear our appeal on this important issue,” Secretary of State Gigi Dennis said on learning the appeal hearing was scheduled. “This is an important issue to the public at large in Colorado.”

The appeals court indefinitely stayed District Judge John McMullen’s invalidation of the rule and set oral arguments next Tuesday before a three-judge appellate panel.

Judge McMullen invalidated the rule Friday after attorneys for Colorado unions and Democrats sued Dennis to prevent the rule – implemented Aug 2 – from being enforced. Although he ruled the membership notice rule prevented unions from influencing this year’s election, Judge McMullen left it in place to allow the Secretary of State to appeal. Monday Gov. Bill Owens filed an amicus brief in support of Dennis’ appeal of the district court decision.

The plaintiffs sued Dennis to prevent the rule – implemented Aug. 2 – from being enforced and claimed Dennis had exceeded her authority in adopting two campaign finance rules.

Dennis’ office successfully argued another challenged rule in the case – requiring representatives of small donor committees to ensure that their donations do not come from foreign corporations or non-citizens. Judge McMullen found that rule appropriate and within Mrs. Dennis’ authority as Secretary of State. He also ruled she had done nothing inappropriate in meeting with attorneys from both political parties during the rule-making process.

“This rule applies equally to business groups and union groups,” Dennis said. “Colorado voters want transparency in campaign finance rules. These rules are important in ensuring that outcome.”