SACRAMENTO — Dramatically changing California campaign fund-raising rules six weeks before the Nov. 6 election, a federal judge Tuesday sided with Democrats and struck down the voter-approved campaign contribution limits of Proposition 73 as unconstitutional.
In concluding that the initiative's restrictions on campaign financing violate the 1st Amendment right to free expression, U.S. District Judge Lawrence K. Karlton also rejected a key provision banning the transfer of campaign funds from a candidate to another.
Barring further court action, candidates for governor and other statewide posts are now free to raise unlimited amounts of money.
The decision came as a shock to candidates of both parties, who must adapt their campaigns to cope with the sudden change in the rules. But the ruling was hailed by Democratic Party Chairman Edmund G. Brown Jr., who helped bring the lawsuit.
"The decision strikes down one of the most pernicious campaign laws ever enacted," the former governor said.
Two authors of the initiative and the state Fair Political Practices Commission said they would go to court immediately to challenge the ruling and seek a stay of the judge's order.
"The timing of this decision is most unfortunate," said Assembly Republican Leader Ross Johnson, the primary author of Proposition 73. "There will be enormous confusion now as hundreds of candidates at all levels of government try to figure out what the new rules are."
Republican gubernatorial candidate Pete Wilson called on his Democratic rival, Dianne Feinstein, to continue complying with the $1,000 campaign contribution limit. But Feinstein, who trails far behind Wilson in fund raising, did not accept the challenge.
Further complicating the fund-raising picture, the Fair Political Practices Commission declared that Karlton's ruling now means the fund-raising restrictions of a rival initiative, Proposition 68, will take effect for legislative races--not statewide offices. Proposition 68 was approved by voters in 1988 but did not take effect because it received fewer votes than Proposition 73.
Proposition 73 has been under legal challenge ever since its passage.
Among other things, it prohibited candidates for state and local offices from accepting contributions of more than $1,000 from individuals and more than $5,000 from political committees during the fiscal year from July 1 to June 30. The limits applied only to candidates, not ballot measures.
