Subject: Re: Angelides Mailers Use Preschool Issue to Skirt Campaign Contribution Limits
From: Rick Hasen
Date: 6/2/2006, 2:30 PM
To: "daniel a. smith" <dasmith@polisci.ufl.edu>
CC: election-law <election-law@majordomo.lls.edu>

Dan,
I think it depends upon what you are trying to accomplish with the reform proposal.  If the reason contributions to candidate committees are limited is to prevent the corruption and appearance of candidates, the same rationale applies to the regulation of candidate-controlled ballot measure committees.  It does not apply to truly independent committees.  Of course, a lot will turn on the test for control.
Rick

daniel a. smith wrote:
rick

i'm not exactly sure how prop 82 will eliminate the loophole that angelides (and arnold before him; and wilson before him...) is exploiting, except that a candidate for state office won't be able to control the ballot measure committee. 

but what's to prevent some millionaire or interest group or corporation from setting up a ballot measure committee independently of a candidate for state office, and then running ads for or against a measure that feature a candidate for state office? this could easily be done independently of a candidate.

isn't angelides and others exploiting the current law really interested in the extra air time promoting (or opposing) an issue? if this is the case, it doesn't really matter who controls the committee, does it?

i think what was troubling with the way arnold was doing things in 2004 & 2005 was the potential of quid pro quo corruption--wealthy interests funneling their money through his ballot measure committees, circumventing the contribution caps, and getting the ear of the governor by supporting his ballot issues. but arnold wasn't on the ballot in either of those years. and god knows he doesn't need the face time on the airwaves.

dan

Rick Hasen wrote:

"Angelides Mailers Use Preschool Issue to Skirt Campaign Contribution Limits"

The Los Angeles Times offers this report, which begins: "Sidestepping California's campaign contribution caps, state Treasurer Phil Angelides is using a loophole in the law to tout himself in statewide mailings that promote a preschool initiative on Tuesday's ballot. Angelides, locked in a tight race for the Democratic gubernatorial nomination against Controller Steve Westly, is pictured smiling and surrounded by children in ads for the initiative, Proposition 82, sent to voters." Another snippet: "Under California law, a single donor cannot give more than $22,300 to a gubernatorial candidate. But there are no caps on contributions to campaigns for or against ballot measures. Last month, Angelides established a new ballot-measure campaign account called Standing Up for Our Kids. He transferred more than $750,000 into it from another account, and spent the money on the Yes-on-82 mailers. Much of that money was donated in sums as high as $250,000 -- far in excess of what Angelides can accept in his gubernatorial campaign." The campaign finance initiative proposed by the California Nurses Association (which I am consulting on) and awaiting signature verification in California would close this loophole. Proposed election code section 91137(b) provides:

    No person shall make a contribution or contributions totaling in excess of ten thousand dollars ($10,000) to any committee that is established for the purpose of supporting or opposing a state or local ballot measure and that is controlled by a candidate for elective state office or an elected state officer. This contribution limit shall apply as an aggregate limit upon all contributions made by any person to all ballot measure committees controlled by the same candidate for elective state office or the same elected state officer, even if those committees are established for the purpose of supporting or opposing different state or local ballot measures, and even if one or more of those ballot measure committees are controlled by more than one candidate for elective state office or elected state officers.

I defend the constitutionality of such a measure here.



  

-- 
Rick Hasen 
William H. Hannon Distinguished Professor of Law
Loyola Law School 
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