Difference between revisions of "California Proposition 226, the "Paycheck Protection" Initiative (1998)"

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{{TOCnestright}}'''California Proposition 226''', also called the '''Political Contributions by Employees, Union Members, Foreign Entities Statute''', was on the [[California 1998 ballot propositions|June 2, 2008 statewide primary ballot]] in [[California]] as an [[initiated state statute]].  It was '''defeated.'''
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{{TOCnestright}}'''California Proposition 226''', also called the '''Political Contributions by Employees, Union Members, Foreign Entities Statute''', was on the [[California 1998 ballot propositions#June 2|June 2, 1998 statewide primary ballot]] in [[California]] as an {{issfull}}.  It was '''defeated.'''
 +
 
 +
Proposition 226 would have made two changes to California's Political Reform Act of 1974:
 +
* It would have established new requirements with regard to payroll deductions for political activities.
 +
* It would have established a provision similar to federal law prohibiting campaign contributions from a foreign national for a candidate for public office.
 +
 +
Proposition 226 was an example of a [[Paycheck protection ballot measures|paycheck protection ballot measure]] and attracted strong opposition from unions.  In 2005, another paycheck protection measure ([[California Proposition 75 (2005)|Proposition 75]]) was on the California ballot.  It, too, was defeated.
  
 
==Election results==
 
==Election results==
  
{| border="1" cellpadding="4" cellspacing="0" style="margin: 1em 1em 1em 0; background: #cef2e0; border: 1px #a3bfb1 solid; border-collapse: collapse; font-size: 95%;"
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{{Short outcome
|- style="background-color:#faecc8"
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| title = Proposition 226
! colspan="5" | California Proposition 226
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| yes = 2,723,268
|-bgcolor="#cef2e0 align="center"
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| yespct = 46.77
! colspan="2" style="width: 17em" |
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| no = 3,099,794
! style="width: 7em" |Percentage
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| nopct = 53.23
|-
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}}
| colspan="2" | Yes
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| align="right" | 46.6%
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==Campaign spending==
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<div style="float:right">
 +
{|class="wikitable" cellspacing="0" cellpadding="5" width="205"
 
|-
 
|-
| colspan="2" |  '''No''' [[Image:10px-600px-Red x.png|14px]]
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|{{#ev:youtube|MZ-elFrQwa0|400}}<br><span style="font-size:80%">Video distributed to union members opposing Prop 226</span>
| align="right" | '''53.4%'''
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|-bgcolor="#cef2e0"
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| colspan="2" style="text-align: right; margin-right: 0.5em" | '''Total votes'''
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| align="right"            | 100%
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|}
 
|}
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</div>
 +
===Supporters===
  
==Text of the proposal==
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Supporters of Proposition 226 spent $6,422,661. The top contributors to pass the measure were:
  
The language that appeared on the ballot:
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* Californians for Paycheck Protection, A Committee of Governor Pete Wilson Supporting Proposition 226: $4,022,926
 +
* Campaign Reform Initiative, A Project of the California Foundation for Campaign Reform: $1,346,219
 +
* [[Lincoln Club of Orange County]], Inc. PAC: $368,929
 +
* Yes on Proposition 226, A Project of California Foundation for Campaign Reform: $684,587 
  
Background
+
===Opponents===
  
Payroll Deductions.
+
Opponents of Proposition 226 spent $24,840,395. The top contributors to pass the measure were:
Employers make a variety of payroll deductions from their employees' wages, such as deductions for Social Security, income taxes, medical plans, and charitable contributions. The deductions are sent to various organizations, businesses, and governments. Existing law does not require employers to identify how the organizations will use the monies.
+
  
Political Contributions from Labor Unions.
+
* [[AFL-CIO]] No on 226 Education Fund: $2,723,521
Many workers in California belong to labor unions. In addition, many workers who do not belong to a union work for a business or organization in which a union provides collective bargaining and representation for all of the employees, both union members and nonmembers.
+
* California Teamsters Public Affairs Council Issues Account: $186,133
 +
* Californians to Protect Employee Rights, A Committee of Firefighters, Teachers, Nurses & Other Employee Organizations – No on 226: $19,709,442
 +
* Consumer Attorney Issues Political Reform Committee: $150,668
 +
* PMC-Nonprofits Concerned About 226: A Committee Against Proposition 226 sponsored by: Public Media Center: $45,430
 +
* Workers’ Rights Protection Fund of the California Labor Federation, AFL-CIO – No on 226 (formerly Workers’ Issues Fund of the California Labor Federation, AFL-CIO): $2,025,201
  
Workers who are represented by unions pay dues or fees to the unions. In most cases, such dues or fees are automatically deducted by the employer from the workers' wages and sent to the union. The union may use some of the dues or fees for political activities. A union member may request that his or her dues or fees not be used for political activities, although there is no legal requirement that the union honor the request. If a nonunion member requests that the fees not be used for political activities, the union must comply with the request.
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==Text of measure==
  
Campaign Contributions by Foreign Interests.
+
===Title===
Currently, federal law prohibits a foreign national from making a contribution to or expenditure for a federal, state, or local election campaign for a candidate for public office. A foreign national includes a foreign government, certain foreign businesses and organizations, and any person who is not a citizen or lawful permanent resident of the United States. Federal law also prohibits a person from accepting a campaign contribution from a foreign national.
+
  
In addition, state law prohibits a foreign government or business, or a person outside of the U.S. who is not a U.S. citizen, from making a contribution or expenditure in connection with a campaign for a state or local ballot measure. State law also prohibits a person or a political campaign committee from soliciting or accepting a contribution for a ballot measure from a foreign government, business, or person outside the U.S.
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The [[ballot title]] was:
  
Political Reform Act.
+
<center>'''Political Contributions by Employees, Union Members, Foreign Entities. Initiative Statute.'''</center>
California's Political Reform Act of 1974, an initiative adopted by the voters, establishes guidelines and requirements for political candidates and campaigns. The state's Fair Political Practices Commission (FPPC) enforces the requirements of the act.
+
  
Proposal
+
===Summary===
 +
[[File:Proposition 226.PNG|right]]
 +
The official [[ballot summary (California)|ballot summary]] for Proposition 226 was:
  
This proposition makes two primary changes to California's Political Reform Act of 1974. First, it establishes new requirements with regard to payroll deductions for political activities. Second, it establishes in state law a provision similar to federal law prohibiting campaign contributions from a foreign national for a candidate for public office.
+
:*Requires all employers and labor organizations to obtain employee's or member's permission before withholding wages or using union dues or fees for political contributions. Employee's or member's permission is to be obtained annually using a prescribed form. Requires record keeping.
  
Payroll Deductions for Political Activities.
+
:*Prohibits contributions to state and local candidates by residents, governments or entities of foreign countries.  
This proposition requires that, in order for an employer to deduct money from an employee's wages that the employer knows or has reason to know will be used for political campaign activities, the employer must have a signed form from the employee each year authorizing the deduction. These requirements apply to both private and government employers.
+
  
The measure also requires that, in order for a labor union to use a portion of the dues or fees it collects for political campaign activities, the union must have a signed form from the worker each year authorizing the use of the money for those activities.
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===Fiscal impact===
  
The proposition requires that employers and labor unions keep certain records, including a copy of the authorization form.
+
The [[California Legislative Analyst's Office]] provided an estimate of net state and local government fiscal impact for Proposition 226. That estimate was:
  
Campaign Contributions by Foreign Nationals.
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:"Unknown, but probably not major, net state enforcement costs."
Similar to existing federal law, this measure makes it illegal under state law for any person or political campaign committee to solicit or accept a campaign contribution for a candidate for public office from a foreign national.
+
  
Enforcement.
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:"Annual costs of up to about $2 million and one-time costs of $2 million to $5 million to the state for administration of employee payroll deductions for political activities; costs offset by fees."
A violation of the provisions of the measure would be punishable by the existing criminal and civil penalties established in the Political Reform Act of 1974. The FPPC would be responsible for enforcement.
+
  
Fiscal Effect
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:*Unknown, but probably not major, costs to local governments for administration of employee payroll deductions for political activities; probably offset by fees."
  
The proposition would result in additional costs to the state and local governments in two areas.
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===Background===
  
First, the measure would result in state costs to the FPPC to enforce its provisions. The costs could be offset in part by fines imposed by the FPPC for violations of the measure. The net costs are unknown, but probably are not major.
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The [[California Legislative Analyst's Office]] prepared a "background" statement about Proposition 226 for the state's [[California Voter Guide (official)|Voter Guide]]. It said:
  
Second, the proposition could result in additional administrative costs to the state and local governments to review payroll deductions of their employees and to keep additional records. The extent of these costs would probably depend on the regulations developed by the FPPC. The State Controller's Office estimates that its annual administrative costs would be up to about $2 million, with one-time costs in the range of $2 million to $5 million. These costs would be offset by fees paid by the businesses, organizations, and unions that receive the monies that are deducted from employee wages, thereby resulting in no net administrative costs to the state.
+
* '''Payroll Deductions.'''
 +
:Employers make a variety of payroll deductions from their employees' wages, such as deductions for Social Security, income taxes, medical plans, and charitable contributions. The deductions are sent to various organizations, businesses, and governments. Existing law does not require employers to identify how the organizations will use the monies.
  
Local governments could incur the same type of administrative costs. The costs to local governments are unknown, but are probably not major, and could be offset by fees.
+
* '''Political Contributions from Labor Unions.'''
 +
:Many workers in California belong to labor unions. In addition, many workers who do not belong to a union work for a business or organization in which a union provides collective bargaining and representation for all of the employees, both union members and nonmembers.
  
==See also==
+
:Workers who are represented by unions pay dues or fees to the unions. In most cases, such dues or fees are automatically deducted by the employer from the workers' wages and sent to the union. The union may use some of the dues or fees for political activities. A union member may request that his or her dues or fees not be used for political activities, although there is no legal requirement that the union honor the request. If a nonunion member requests that the fees not be used for political activities, the union must comply with the request.
  
 +
* '''Campaign Contributions by Foreign Interests.'''
 +
:Currently, federal law prohibits a foreign national from making a contribution to or expenditure for a federal, state, or local election campaign for a candidate for public office. A foreign national includes a foreign government, certain foreign businesses and organizations, and any person who is not a citizen or lawful permanent resident of the United States. Federal law also prohibits a person from accepting a campaign contribution from a foreign national.
 +
 +
:In addition, state law prohibits a foreign government or business, or a person outside of the U.S. who is not a U.S. citizen, from making a contribution or expenditure in connection with a campaign for a state or local ballot measure. State law also prohibits a person or a political campaign committee from soliciting or accepting a contribution for a ballot measure from a foreign government, business, or person outside the U.S.
 +
 +
* '''Political Reform Act.'''
 +
:California's Political Reform Act of 1974, an initiative adopted by the voters, establishes guidelines and requirements for political candidates and campaigns. The state's Fair Political Practices Commission (FPPC) enforces the requirements of the act.
 +
 +
==See also==
 +
* [[1998 ballot measures]]
 
* [[California 1998 ballot propositions]]
 
* [[California 1998 ballot propositions]]
  
 
==External links==
 
==External links==
 
+
{{colbegin|2}}
 
* [http://primary98.sos.ca.gov/VoterGuide/Propositions/226.htm Official California Voter Guide to Proposition 226]
 
* [http://primary98.sos.ca.gov/VoterGuide/Propositions/226.htm Official California Voter Guide to Proposition 226]
 
* [http://primary98.sos.ca.gov/Final/P98_SOV.pdf June 2, 1998 California statewide elections results] (PDF)
 
* [http://primary98.sos.ca.gov/Final/P98_SOV.pdf June 2, 1998 California statewide elections results] (PDF)
 
* [http://www.smartvoter.org/1998jun/ca/state/prop/226/ Proposition 226 on Smart Voter]
 
* [http://www.smartvoter.org/1998jun/ca/state/prop/226/ Proposition 226 on Smart Voter]
 
* [http://ca.lwv.org/lwvc.files/pc0698/prop226.html League of Women Voters analysis of pros/cons of Prop 226]
 
* [http://ca.lwv.org/lwvc.files/pc0698/prop226.html League of Women Voters analysis of pros/cons of Prop 226]
 +
* [http://www.sos.ca.gov/prd/bmprimary98_2/prop226-2.htm Campaign Finance Information]
 +
{{colend}}
  
 +
{{1998 ballot measures}}
 
{{California}}
 
{{California}}
  
[[Category:Labor, California]]
 
[[Category:Paycheck protection, California]]
 
 
[[Category:California 1998 ballot measures]]
 
[[Category:California 1998 ballot measures]]
 
[[Category:Elections and campaigns, California]]
 
[[Category:Elections and campaigns, California]]
 +
[[Category:Labor and unions, California]]
 +
[[Category:Paycheck protection, California]]
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[[Category:Elections and campaigns, 1998]]
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[[Category:Labor and unions, 1998]]
 +
[[Category:Paycheck protection, 1998]]

Revision as of 09:58, 20 September 2012

California Proposition 226, also called the Political Contributions by Employees, Union Members, Foreign Entities Statute, was on the June 2, 1998 statewide primary ballot in California as an initiated state statute. It was defeated.

Proposition 226 would have made two changes to California's Political Reform Act of 1974:

  • It would have established new requirements with regard to payroll deductions for political activities.
  • It would have established a provision similar to federal law prohibiting campaign contributions from a foreign national for a candidate for public office.

Proposition 226 was an example of a paycheck protection ballot measure and attracted strong opposition from unions. In 2005, another paycheck protection measure (Proposition 75) was on the California ballot. It, too, was defeated.

Election results

Proposition 226
ResultVotesPercentage
Defeatedd No3,099,79453.23%
Yes 2,723,268 46.77%

Campaign spending


Video distributed to union members opposing Prop 226

Supporters

Supporters of Proposition 226 spent $6,422,661. The top contributors to pass the measure were:

  • Californians for Paycheck Protection, A Committee of Governor Pete Wilson Supporting Proposition 226: $4,022,926
  • Campaign Reform Initiative, A Project of the California Foundation for Campaign Reform: $1,346,219
  • Lincoln Club of Orange County, Inc. PAC: $368,929
  • Yes on Proposition 226, A Project of California Foundation for Campaign Reform: $684,587

Opponents

Opponents of Proposition 226 spent $24,840,395. The top contributors to pass the measure were:

  • AFL-CIO No on 226 Education Fund: $2,723,521
  • California Teamsters Public Affairs Council Issues Account: $186,133
  • Californians to Protect Employee Rights, A Committee of Firefighters, Teachers, Nurses & Other Employee Organizations – No on 226: $19,709,442
  • Consumer Attorney Issues Political Reform Committee: $150,668
  • PMC-Nonprofits Concerned About 226: A Committee Against Proposition 226 sponsored by: Public Media Center: $45,430
  • Workers’ Rights Protection Fund of the California Labor Federation, AFL-CIO – No on 226 (formerly Workers’ Issues Fund of the California Labor Federation, AFL-CIO): $2,025,201

Text of measure

Title

The ballot title was:

Political Contributions by Employees, Union Members, Foreign Entities. Initiative Statute.

Summary

Proposition 226.PNG

The official ballot summary for Proposition 226 was:

  • Requires all employers and labor organizations to obtain employee's or member's permission before withholding wages or using union dues or fees for political contributions. Employee's or member's permission is to be obtained annually using a prescribed form. Requires record keeping.
  • Prohibits contributions to state and local candidates by residents, governments or entities of foreign countries.

Fiscal impact

The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 226. That estimate was:

"Unknown, but probably not major, net state enforcement costs."
"Annual costs of up to about $2 million and one-time costs of $2 million to $5 million to the state for administration of employee payroll deductions for political activities; costs offset by fees."
  • Unknown, but probably not major, costs to local governments for administration of employee payroll deductions for political activities; probably offset by fees."

Background

The California Legislative Analyst's Office prepared a "background" statement about Proposition 226 for the state's Voter Guide. It said:

  • Payroll Deductions.
Employers make a variety of payroll deductions from their employees' wages, such as deductions for Social Security, income taxes, medical plans, and charitable contributions. The deductions are sent to various organizations, businesses, and governments. Existing law does not require employers to identify how the organizations will use the monies.
  • Political Contributions from Labor Unions.
Many workers in California belong to labor unions. In addition, many workers who do not belong to a union work for a business or organization in which a union provides collective bargaining and representation for all of the employees, both union members and nonmembers.
Workers who are represented by unions pay dues or fees to the unions. In most cases, such dues or fees are automatically deducted by the employer from the workers' wages and sent to the union. The union may use some of the dues or fees for political activities. A union member may request that his or her dues or fees not be used for political activities, although there is no legal requirement that the union honor the request. If a nonunion member requests that the fees not be used for political activities, the union must comply with the request.
  • Campaign Contributions by Foreign Interests.
Currently, federal law prohibits a foreign national from making a contribution to or expenditure for a federal, state, or local election campaign for a candidate for public office. A foreign national includes a foreign government, certain foreign businesses and organizations, and any person who is not a citizen or lawful permanent resident of the United States. Federal law also prohibits a person from accepting a campaign contribution from a foreign national.
In addition, state law prohibits a foreign government or business, or a person outside of the U.S. who is not a U.S. citizen, from making a contribution or expenditure in connection with a campaign for a state or local ballot measure. State law also prohibits a person or a political campaign committee from soliciting or accepting a contribution for a ballot measure from a foreign government, business, or person outside the U.S.
  • Political Reform Act.
California's Political Reform Act of 1974, an initiative adopted by the voters, establishes guidelines and requirements for political candidates and campaigns. The state's Fair Political Practices Commission (FPPC) enforces the requirements of the act.

See also

External links