THE SPECIAL EXEMPTIONS Act

THE SPECIAL EXEMPTIONS ACT

Coming this November to a California ballot box near you!

STOP the Special Exemptions ActIt’s not what it seems

What the initiative claims to do: The so-called “Stop Special Interest Money Now Act”

purports to be a “simple, fair and balanced solution…limiting both corporate and union political giving.”

Supporters claim that the measure: bans both corporate and union contributions to candidates prohibits campaign contributions from government

contractors prohibits corporations and unions from collecting political

funds from employees and members via voluntary payroll deduction

makes all employee political contributions by any other means strictly voluntary, requiring annual written consent.

Sounds fair and balanced, right?


The Special Exemptions Act was intentionally written to:

create special exemptions for billionaire businessmen, giving them even more political power to write their own set of rules.

exempt secretive Super PACs, which can raise unlimited amounts of money from corporate special interests and billionaire businessmen to support their candidates or defeat their enemies.

do nothing to stop anonymous donors from influencing elections.

STOP the Special Exemptions Act

It’s not what it seems – on prohibiting candidate contributions

It’s not going to solve Sacramento’s problems, because it was intentionally written to exempt many companies like Wall Street investment firms, hedge funds, real estate developers, insurance companies and businesses that are set up as LLCs, LLPs, sole proprietorships and other alternative structures - all of whom can still give directly to candidates.

And the measure does nothing to prevent unlimited contributions to Independent Expenditures campaigns and Super PACS that can support or oppose candidates


It’s not what it seems – on payroll deduction

It’s not a balanced approach. It unfairly singles out and limits the voices of teachers, our local nurses and the firefighters who keep us safe.

The Special Exemptions Act says it will stop corporations and unions from collecting political funds through payroll deductions -- but corporations almost never use payroll deductions to collect funds for political purposes; they use their corporate profits. Unions almost exclusively use payroll deductions to raise money for political purposes.

Corporations already outspend unions 15 – 1 in political expenditures


It’s not what it seems – on employee political contributions

Supporters of the initiative say that it protects union members from having their dues used towards politicians and issues they may not support. But union members already have the option to “opt out” and not have their dues go towards politics.

It does add a new requirement that even voluntary contributions from teachers, nurses, firefighters and other union members must be accompanied by annual, written permission to use the funds. This sets up an impractical and unnecessary hurdle for union members to be able to participate in the political process.


Who is Prohibited: Unions representing

working men and women Some Companies

Who is Exempted from the Prohibition:

Hedge Funds Billionaires Limited Partnerships Limited Liability Partnerships (LLPs) Limited Liability Companies (LLCs) Real Estate Investment Trusts (REITs) Business Trusts Indian Tribes Sole Proprietorships

Prohibition on Contributions to Candidates or Candidate Controlled

Committees


Who is Prohibited: Some Companies** Unions representing

working men and women Government Contractors Government Employers

** less than 1% of corporations use payroll deduction for political use – the vast majority use corporate profits


Insurance Companies Hedge Funds Limited Partnerships Limited Liability Partnerships

(LLPs) Limited Liability Companies (LLCs) Real Estate Investment Trusts

(REITs) Business Trusts Indian Tribes Sole Proprietorships Charities

Prohibition on Payroll Deduction Used for Political Purposes


Who is Prohibited:

Government Contractors Government Contractor

PACs


Lobbyists for Government Contractors

Lawyers for Government Contractors

CEOs and Officers of Government Contractors

Staff of Government Contractors

PACs sponsored by Government Contractor Trade Associations

Prohibition on Government Contractor Contributions


Here’s what others are saying: “…dripping with cynicism” – Sacramento Bee 12-22-11

“…a phony veneer of fairness…one-sided and biased” – Long Beach Press Telegram 8-21-11

“…would harm their union opponents more than it would harm business interests” – OC Register 8-11-11

“…would just expand unaccountable independent expenditure committees, the super-PACs” – LA Times 4-26-12


Who’s behind it:

Wealthy corporate interests

Orange County millionaires

Anti-union activists

Howard Jarvis Taxpayers Association

Lincoln Club (backers of Citizens United

case)


If the Special Exemptions Act were to pass, it

would effectively silence the voice of

union members while giving corporate

special interests and billionaire

businessmen free rein to exert even

more influence over our political system,

and that hurts all of us.


What We Need to Do to Beat It: Build a broad coalition of partners to spread the

word to their base

Statewide direct voter contact: voter persuasion and GOTV campaign to targeted voters

Statewide paid and earned media – TV, radio, direct mail and social media

THE SPECIAL EXEMPTIONS Act

Documents

Transcript of THE SPECIAL EXEMPTIONS Act