Action Guide June 2, 1998

DESCRIPTION

This is an initiative statute that would require that an employee’s written permission be obtained each year before wages could be withheld and used for political contributions or expenditures. It would also require that before a labor union could use a portion of dues or fees it collects from members for political campaign activities, it would need a signed authorization from each member every year. It would also place in state law a ban on contributions from foreign nationals to state and local candidates. If passed, the law would go into effect July 1, and authorization forms would have to be developed and approved by the State Fair Political Practices Commission before moneys could be withheld or used for political campaigns.

BACKGROUND

Employers make payroll deductions from employees’ wages for various purposes, including Social Security, taxes, medical plans, union dues and charitable contributions, but are not required to identify how the money will be used. Workers who are represented by unions pay dues or fees to the union, usually by automatic deductions, and the unions may use some of those funds for political activities. A union member may request that his dues not be used for political activities, though there is no legal requirement that the union honor that request. Some workers who do not belong to a union work for a business or organization for which a union provides collective bargaining and representation for both union and non-union members. If a non-union member requests that his/her fees not be used for political activities, the union must comply with the request.

Federal law now prohibits foreign contributions to or expenditures for election campaigns for candidates for federal, state or local office. State law now also prohibits foreign contributions or expenditures in campaigns for state or local ballot measures.

IMPORTANT POINTS

• The measure is misleading, in that it purports to regulate the fund-raising methods of both business and labor while actually only applying to one, and in including unnecessary prohibitions on foreign contributions.

• Business interests do not raise money for political campaign activities by employee payroll deductions, but can use corporate funds for that purpose, and are not required to obtain permission from individual stockholders to do so.

• The measure unfairly creates two sets of rules for contributors by targeting the customary fund-raising methods of only one group of contributors.

• By creating new bureaucratic procedures that would only affect unions and would probably not be in operation until late in the year, unions would be placed at a heavy disadvantage in this November's elections.

• The provisions regarding foreign contributions to candidates are unnecessary since they are already covered by federal law.

• The measure was placed on the ballot with contributions primarily from out-of-state interests which had sponsored ballot measures that were defeated with strong union opposition, such as the voucher initiative.

• Corporate interests now contribute 11 times more to political campaigns than unions do.

• Union members generally contribute only one to two dollars a month for political purposes. Unlike business stockholders, they are informed about what candidates and measures their unions are supporting, have regular membership meetings at which they can question union activity and have an existing procedure for requesting that their dues not be used for political purposes.

• The measure will be challenged in court and is likely to be ruled unconstitutional.

Supporters Signing ballot argument for: Pete Wilson, Governor State of California Elizabeth Lee, Member California Teachers Association Robert Eisenbeisz, Member United Electrical Workers - local 99

Opponents Signing ballot argument against: Lois Tinson, President California Teachers Association Howard Owens, Executive Director Consumer Federation of California Dan Terry, President California Professional Firefighters

Resources

Californians to Protect Employee Rights, 1510 J St., Suite 115, Sacramento 95814, 916-554-1050, www.defeatprop226.org.