BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AJR 3| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AJR 3 Author: Nava (D), et al Amended: 3/1/10 in Senate Vote: 21 PRIOR VOTES NOT RELEVANT SUBJECT : Political campaign funding SOURCE : Author DIGEST : Senate Floor Amendments of 8/1/09 deleted the subject matters dealing with offshore drilling. This resolution now memorializes the Legislatures disagreement with the decision of the United States Supreme Court in Citizens United v. Federal Election Commission and requests the Congress of the United States to pass and send to the states for ratification a constitutional amendment that allows Congress and state legislatures to place appropriate limits on political campaign contributions and expenditures made by corporations in connection with elections. ANALYSIS : This resolution makes the following legislative findings: 1.The protections afforded by the First Amendment to the United States Constitution to the people of our nation CONTINUED AJR 3 Page 2 are fundamental to our democracy. 2.The First Amendment was intended to ensure that the government could not infringe on the right of the people to freely assemble and to express their beliefs and opinions freely. 3.While corporations make important contributions to our society, corporations, as legally created economic entities, do not and should not share all of the same rights and privileges as natural persons, such as the right to vote and the right to seek public office. 4.The opinion of the four dissenting justices in the recent United States Supreme Court case Citizens United v. Federal Election Commission (2010), No. 08-205, noted that corporations have special advantages not enjoyed by natural persons, such as limited liability, perpetual life, and favorable treatment of the accumulation and distribution of assets, that allow them to spend prodigious sums on campaign messages that have little or no correlation with the beliefs held by natural persons. 5.Under previous Supreme Court decisions and existing campaign finance law, the individual shareholders of every corporation remain entirely free to state their opinions and to contribute money so that their opinions and beliefs can be disseminated by whatever media they choose and to the extent they choose outside of the corporate form. 6.In the unanimous decision in the United States Supreme Court case Federal Election Commission v. National Right to Work Committee (1982) 459 U.S. 197, Justice William Rehnquist wrote for the Court that Congress's "legislative adjustment of the federal electoral laws, in a cautious advance, step by step, to account for the particular legal and economic attributes of corporations ... warrants considerable deference" and "reflects a permissible assessment of the dangers posed by those entities to the electoral process," and, as Justice Rehnquist went on to write, "The governmental interest in preventing both actual corruption and the appearance of corruption of elected representatives has long been AJR 3 Page 3 recognized, and there is no reason why it may not be accomplished by treating corporations, and similar organizations differently from individuals." 7.The general public and political leaders in the United States have recognized, since the founding of our country, that the interests of corporations do not always correspond with the public interest and that, therefore, the political influence of corporations should be limited. 8.In 1816, Thomas Jefferson wrote, "I hope we shall crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country." 9.In 1864, President Abraham Lincoln wrote, "As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed." 10.In 1905, President Theodore Roosevelt said, "All contributions by corporations to any political committee or for any political purpose should be forbidden by law; directors should not be permitted to use stockholders' money for such purposes; and, moreover, a prohibition of this kind would be, as far as it went, an effective method of stopping the evils aimed at in corrupt practices acts." 11.In 1961, President Dwight D. Eisenhower said, in reference to the rise of defense industry corporations, "In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist." 12.In 2002, recognizing the deleterious effects that corporate influence can have on democracy, Democrats and AJR 3 Page 4 Republicans in Congress worked in a bipartisan manner to limit corporate contributions to election campaigns through legislation sponsored by Senators John McCain and Russell Feingold known as the Bipartisan Campaign Reform Act of 2002. 13.Congress has placed special limitations on campaign spending by corporations ever since passage of the Tillman Act in 1907. 14.The United States Supreme Court's ruling in Citizens United v. Federal Election Commission invalidated critical provisions of the Bipartisan Campaign Reform Act of 2002, which sought to limit the influence of special interests, especially corporations, in elections. 15.The decision in Citizens United v. Federal Election Commission overruled the United States Supreme Court's previous decision in Austin v. Michigan Chamber of Commerce (1990) 494 U.S. 652 and overruled in part the Court's previous decision in McConnell v. Federal Election Commission (2003) 540 U.S. 93. 16.Notwithstanding the decision in Citizens United v. Federal Election Commission , legislators have a duty to protect democracy and guard against the potentially detrimental effects of corporate spending in local, state, and federal elections. This resolution specifies that the Legislature of the State of California respectfully disagrees with the majority opinion and decision of the United States Supreme Court in Citizens United v. Federal Election Commission ; and that the Legislature of the State of California respectfully requests that the Untied States Congress pass and send to the states for ratification a constitutional amendment to restore the power of Congress and state legislatures to safeguard democracy by placing appropriate limits on the ability of corporations to influence the outcome of elections through political campaign contributions and other expenditures. FISCAL EFFECT : Fiscal Com.: No AJR 3 Page 5 RJG:do 3/2/10 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****