Bid to stop dark money law is dismissed by judge, again

Photo by Jim Small | Arizona Mirror

For the second time, a lawsuit asking the courts to block the state from enforcing a law voters approved in 2022 to require the disclosure of the sources of anonymous election spending has been rejected by a judge.

More than 70% of Arizonans voted to pass Proposition 211, the Voters’ Right to Know Act. The law aims to eliminate “dark money” election spending by requiring that political committees spending at least $50,000 in statewide or legislative campaigns reveal the identities of individual contributors who give more than $5,000. Individuals who give $2,500 or more to a committee spending at least $25,000 in local elections would also have to disclose their names, mailing addresses and employers. 

The conservative Arizona Free Enterprise Club and the Center for Arizona Policy have challenged the law in court, claiming it violates their free speech rights. Their previous attempt to do so was dismissed last year, as Maricopa County Superior Court Judge Scott McCoy noted that the public interest in transparency outweighs the risk of lost donations. 

After the dismissal, the groups amended their complaint and filed a second lawsuit. 

Both organizations are 501(c)(4) nonprofits that are allowed to engage in political activity and fundraise. Such organizations can spend to support or oppose candidates, as long as doing so is not the primary purpose the group exists. While their spending has long been required to be disclosed under campaign finance laws, there has not been a requirement that they say where the money came from. Such spending from anonymous sources is commonly referred to as “dark money.” 

“Today’s court ruling is a major win for voters in Arizona,” Trevor Potter, president of Campaign Legal Center, said in a statement about the ruling. “Voters have a right to know who is spending money to influence their decisions at the ballot box.” 

A similar lawsuit was filed at the federal level last year by Americans for Prosperity, another conservative group known for anonymous campaign spending. That challenge is still awaiting a final decision. Proponents of Prop. 211 believe that the case will likely head to the U.S. Supreme Court, which has made previous rulings against similar measures. 

“We respectfully disagree with the judge’s decision and plan to appeal,” Goldwater Institute Senior Attorney Scott Freeman said in a statement to the Arizona Mirror. The Goldwater Institute represents the groups in the suit.  

Since 2010, when the U.S. Supreme Court ruled that the government cannot restrict independent expenditures for political campaigns by corporations, anonymous political spending has skyrocketed.

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