BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                    AJR 3|
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                                 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  
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             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  







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             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  







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             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







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          RJG:do  3/2/10   Senate Floor Analyses 

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