BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AJR 1
                                                                  Page  1


          ASSEMBLY THIRD READING
          AJR 1 (Gatto)
          As Introduced December 3, 2012
          Majority vote 

           JUDICIARY           7-2                                         
           
           ----------------------------------------------------------------- 
          |Ayes:|Wieckowski, Alejo, Chau,  |     |                          |
          |     |Dickinson, Garcia,        |     |                          |
          |     |Muratsuchi, Stone         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Wagner, Maienschein       |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Seeks to petition Congress to call for a federal  
          constitutional convention for the purpose and hope of solely  
          amending the United States (U.S.) Constitution with a single  
          amendment to limit "corporate personhood" for purposes of  
          campaign finance and political speech and declare that money  
          does not constitute speech.  


           EXISTING LAW  :


          1)Holds that limits on campaign contributions are permissible,  
            but that spending money to influence elections is a form of  
            constitutionally protected free speech.  Also holds that  
            candidates can give unlimited amounts of money to their own  
            campaigns.  (Buckley v. Valeo (1976) 424 U.S. 1.)


          2)Holds that both "contributions" to a candidate and  
            "expenditures" on behalf of a candidate are forms of speech  
            protected by the First Amendment; however, holds that  
            government only has a "compelling interest" in regulating  
            contributions, as opposed to expenditures, because only  
            contributions can reasonably give rise to corruption or the  
            appearance of corruption.  (Citizens United v. Federal  
            Election Commission (FEC) (2010) 130 S. Ct. 876; Buckley v.  
            Valeo (1976) 424 U.S. 1, 19-27, 48-49.)









                                                                  AJR 1
                                                                  Page  2



          3)Provides that neither Congress nor the states shall enact any  
            law respecting the establishment of religion, or prohibiting  
            the free exercise thereof; or abridging the freedom of speech,  
            or of the press; or the right of the people peaceably to  
            assemble, and to petition the Government for a redress of  
            grievances.  (Amendment I of the U.S. Constitution; applied to  
            the states by Amendment XIV of the U.S. Constitution.) 

          4)Provides that Congress, upon the application of two-thirds of  
            the several states, shall call a convention for proposing  
            amendments to the U.S. Constitution, which shall become valid  
            when ratified by either three-fourths of the state  
            legislatures or by conventions in three-fourths of the states,  
            as either mode of ratification may be proposed by Congress.
           
          COMMENTS  :  This joint resolution petitions Congress to call a  
          federal convention for the purpose of amending the U.S.  
          Constitution, with the objective solely to limit "corporate  
          personhood" for purposes of campaign finance and political  
          speech and declare that money does not constitute speech.  This  
          measure at least partially arises out of the Supreme Court's  
          extraordinarily controversial decision in Citizens United v. FEC  
          (2010).  That decision struck down key provisions of the federal  
          McCain-Feingold campaign finance reform law and, in the process,  
          overturned several prior decisions upholding the right of  
          Congress and the states to impose limits on campaign  
          contributions and expenditures.  

          This resolution is part of a national movement calling for not  
          just the overturning of Citizens United but for amending the  
          federal Constitution to enshrine the principle that there is no  
          such thing as corporate personhood and to declare that money  
          does not constitute speech.  However this resolution differs  
          from last year's approved resolution in that it proposes a  
          constitutional convention process not used since the founding of  
          the nation for securing the desired constitutional amendments.  

          There is great debate among constitutional scholars as to  
          whether the convention process is an advisable route for  
          instituting the targeted but fundamental change sought by such  
          measures, given that the process has never been used since our  
          country's creation, and there therefore are many uncertainties  
          regarding how, once created, such an untested process would  








                                                                  AJR 1
                                                                  Page  3


          proceed.  Some scholars argue there are sufficient safeguards in  
          place to ensure unintended consequences would not result; others  
          worry that such an approach unduly risks the possibility of a  
          "run-away" convention threatening the foundational liberties  
          upon which this nation was founded.

          In Citizens United v. FEC (2010), the U.S. Supreme Court  
          considered a provision of the federal Bipartisan Campaign Reform  
          Act (BCRA) of 2002, also known as "McCain-Feingold" for its  
          joint Senate authors.  The provision in question prohibited  
          corporations and unions from using general treasury funds to  
          make "independent expenditures" for "electioneering  
          communications" within 60 days of a general election or within  
          30 days of a primary election.  At issue in Citizens United was  
          a controversial documentary entitled, Hillary, which was highly  
          critical of then-Senator Hillary Rodham Clinton, a candidate in  
          the 2008 Democratic presidential primary.  Citizens United, a  
          non-profit corporation, wanted to make the documentary available  
          by "video-on-demand" within the 30 days of the primary election.  
           Concerned that the broadcast might be prohibited by BCRA,  
          Citizens United sought declaratory and injunctive relief that  
          the BCRA did not apply to the documentary and, indeed, would be  
          unconstitutional if applied to the showing of Hillary.  A  
          district court denied the request.  Citizens United appealed to  
          the U.S. Supreme Court. 
           
           Citizens United originally only asked the Court to find that  
          BCRA did not apply to the Hillary broadcast, and would therefore  
          be unconstitutional as applied in its case.  For example,  
          Citizens United argued that, as a matter of statutory  
          interpretation, the film was not an "electioneering  
          communication" as defined in BCRA.  Despite the opportunity to  
          decide the case on very narrow grounds, the Supreme Court, under  
          the new leadership of Chief Justice John Roberts, instead  
          dramatically departed from traditional jurisprudence and asked  
          the parties to submit supplemental briefs on the  
          constitutionality of the general BCRA provisions in question,  
          and whether the Court should overturn parts of its earlier  
          opinions on this general subject (discussed below) that had  
          upheld the right of Congress and the states to impose limits on  
          corporate campaign expenditures.

          After reframing the question in this uncharacteristically very  
          broad way, the Court then proceeded not only to strike down the  








                                                                  AJR 1
                                                                  Page  4


          provisions of the BCRA, but it went on to overturn long-standing  
          precedents upholding the constitutionality of federal and state  
          efforts to regulate campaign financing generally.  

          In dramatically overturning both its Austin v. Michigan Chamber  
          of Commerce (1990) 494 U.S. 652 and McConnell v. FEC (2003) 540  
          U.S. 93 decisions, the Supreme Court in its 2010 Citizens United  
          decision rejected its earlier idea that "distortion" constitutes  
          a compelling governmental interest and held that corporations  
          and unions are now free to spend unlimited amounts on  
          "independent expenditures" -- even for advertisements that  
          expressly mention the candidate by name.  

          Since the holding, Citizens United has been roundly criticized  
          by many political and legal commentators because it removes  
          virtually all limits on corporation and union expenditures.  In  
          addition, it has also been condemned as an unabashed and some  
          say very ironic example of profound judicial activism by the  
          very justices who usually laud judicial restraint.  Professor  
          Erwin Chemerinsky, for example, describes the opinion as "a  
          stunning example of judicial activism," insofar as it not only  
          failed to show any deference to Congress, but also because it  
          overturned years of precedent.  (Chemerinsky, "Who are the  
          Judicial Activists Now?" Los Angeles Times, January 22, 2010.) 

          What makes this judicial activism all the more remarkable, many  
          others have noted, is that, as noted above, the Court could have  
          decided the Citizens United case on much narrower grounds.   
          Indeed, Justice Stevens, quoting a prior appeals court opinion  
          by Chief Justice Roberts, noted that the "cardinal" principle of  
          the judicial process is, "if it is not necessary to decide more,  
          it is necessary not to decide more" - yet that is precisely what  
          the Court's conservative majority proceeded to do.  [Citizens  
          United, supra at 164, Stevens, J. dissenting.]  As Professor  
          Richard Hasen of Loyola Law School put it "in Citizens United  
          the Supreme Court ignored the well-established doctrine of  
          'constitutional avoidance,' by which it avoids deciding tough  
          constitutional questions when there is a plausible way to make a  
          narrower ruling based on a plain old statute."  (Quoted in David  
          Kirkpatrick, "Lobbyists Get Potent Weapon in Campaign Ruling,"  
          New York Times, January 21, 2010.) 

          According to the author's office, during the 2012 General  
          Election, residents in over 150 cities voted on measures calling  








                                                                  AJR 1
                                                                  Page  5


          for an end to the concept of corporate free speech and the  
          concept of money as free speech.  Every measure passed.  In  
          California, those localities included Mendocino County,  
          Richmond, and San Francisco.  More than a dozen states,  
          nation-wide, have passed and transmitted to Congress symbolic  
          resolutions expressing the same.

          As noted above, Article V of the U.S. Constitution presents a  
          mechanism for amending the Constitution when Congress refuses to  
          do so.  (See Michael Stern, Reopening the Constitutional Road to  
          Reform: Toward a Safeguarded Article V Convention, 78 Tenn. L.  
          Rev. 765, 765-66 (2011).)  However, the process has never been  
          used to amend the constitution; "[e]very one of the twenty-seven  
          amendments to the United States Constitution has been proposed  
          by the Congress [not via a constitutional convention]."  (Id. at  
          765.)

          The primary concern regarding the process is that of a "runaway  
          convention"-a scenario in which the convention initiated by the  
          states deviates from its initially intended purpose and results  
          in an unforeseen change to the nation's basic governmental  
          structure or individuals' constitutionally protected rights.   
          (Id. at 766.)  Given this concern, the prospect of limiting a  
          proposed convention to enumerated purposes-as this resolution  
          would do-strikes many as prudent.  And that is precisely what  
          the author of this measure hopes occurs.  The resolution  
          specifically states that this "application is for a limited  
          constitutional convention and does not grant Congress the  
          authority to call a constitutional convention for any purpose  
          other than for the sole purpose set forth in this resolution." 

          In background material provided by the author's office, an  
          argument is made that "because two-thirds of the states have to  
          approve the same resolution, and because this resolution  
          explicitly states the sole purpose of the convention, this  
          resolution will not initiate a 'runaway' convention."


           Analysis Prepared by  :    Drew Liebert / JUD. / (916) 319-2334 


                                                                FN: 0000061










                                                                  AJR 1
                                                                  Page  6