BILL ANALYSIS
AB 1430
Page 1
ASSEMBLY THIRD READING
AB 1430 (Garrick)
As Amended May 8, 2007
2/3 vote
ELECTIONS 7-0
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|Ayes:|Price, Adams, Leno, | | |
| |Levine, Mendoza, Niello, | | |
| |Saldana | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Prohibits local governments from adopting campaign
finance ordinances that restrict communications between an
organization and its members unless state law similarly
restricts such communications. Specifically, this bill
prohibits a local jurisdiction from doing any of the following:
1)Imposing source restrictions on payments for member
communications that are not expressly made applicable to
member communications by a state statute or by a regulation
adopted by the Fair Political Practices Commission (FPPC).
2)Adopting limits on payments to a political party committee for
member communications that are not expressly made applicable
to member communications by a state statute or by a regulation
adopted by FPPC.
3)Adopting limits on the scope of payments considered directly
related to the making of a member communication, including
costs associated with the formulation, design, production and
distribution of the communication such as surveys, list
acquisition, and consulting fees that are not expressly made
applicable to member communications by a state statute or by a
regulation adopted by FPPC.
FISCAL EFFECT : Keyed non-fiscal by Legislative Counsel.
COMMENTS : According to the author, "AB 1430 . . . would clarify
existing law regarding protected 'member communications' for
political parties, labor unions, and other membership
AB 1430
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organizations. Existing state law allows local jurisdictions to
establish regulations 'not in conflict' with state law or
regulations promulgated by the [FPPC]. However, some local
jurisdictions have begun the process of attempting to promulgate
local laws and regulations that conflict with the clear meaning
of the Political Reform Act (PRA) and FPPC regulations and
which, as such, are in clear conflict with both bodies. In
particular, local jurisdictions have begun the process of
attempting to restrict the First Amendment free speech of
political parties and labor unions to communicate with their
memberships without regulation by or from local jurisdictions.
This bill clarifies the clear intent of the [PRA] and FPPC
regulations to allow membership organizations to communicate
with their own members, and the primacy of state government's
authority to interpret the clear meaning of the [PRA]."
Proposition 34 was placed on the November 2000 ballot by SB 1223
(Burton), Chapter 102, Statutes of 2000. The proposition, which
passed with 60% of the vote, revised state laws on political
campaigns for state elective offices and ballot propositions.
One of the provisions of Proposition 34 provided that payments
for communications by an organization to members, employees,
shareholders, or families of members, employees, or shareholders
of that organization (commonly known as "member communications")
for the purpose of supporting or opposing a candidate or a
ballot measure are not contributions or independent
expenditures, provided those payments are not made for general
public advertising such as broadcasting, billboards, and
newspaper advertisements. Additionally, Proposition 34
prohibited local jurisdictions from adopting contribution
limitations or prohibitions on member communications that
conflicted with the member communications provisions of
Proposition 34.
In implementing the provisions of Proposition 34 governing
member communications, FPPC has adopted a regulation that sets
parameters for what constitutes a "payment[] for communications
to members" by an organization. Among other provisions, Title
2, California Code of Regulations, Section 18531.7 (Regulation
18531.7) defines various terms used in the member communications
statute (including "organization," "member," "shareholder," and
"family"); specifies what constitutes a payment for
communications; provides a safe harbor for communications
inadvertently directed to nonmembers; addresses payments for
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member communications made at the behest of a candidate or
committee; and, specifies the reporting requirements for member
communications made by entities that are considered committees
under PRA. FPPC is currently reviewing its regulations
governing member communications, and is deciding whether to
modify Regulation 18531.7, to adopt new regulations, or both.
Some of the issues FPPC plans to address in reviewing its
regulations governing member communications, as detailed above,
came to light due to an opinion request sent to FPPC from Stacey
Fulhorst, the Executive Director of the City of San Diego Ethics
Commission. Ms. Fulhorst posed 10 questions to FPPC on how
existing law governing member communications was to be enforced,
including whether a local jurisdiction can enact a law defining
as a "contribution" any payment for member communications that
are made at the behest of a candidate, and therefore subjecting
such payments to local contribution limits.
FPPC ultimately declined to issue an opinion in response to Ms.
Fulhorst's request, and instead decided to incorporate the
questions raised in her request into its review of regulations
governing member communications. However, because the issues
raised in Ms. Fulhorst's request are directly related to some of
the issues addressed by this bill, any new or revised
regulations that result from the FPPC's review of its member
communication regulations could directly impact issues addressed
by this bill.
California voters passed an initiative, Proposition 9, in 1974
that created FPPC and codified significant restrictions and
prohibitions on candidates, officeholders, and lobbyists. That
initiative is commonly known as PRA. Amendments to PRA that are
not submitted to the voters, such as those contained in this
bill, must further the purposes of the initiative and require a
two-thirds vote of both houses of the Legislature.
Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094
FN: 0000547