California Proposition 32 - Paycheck Protection Initiative

Political contributions by payroll deduction

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Many unions use funds they obtain from payroll deductions for political purposes. This includes contributions to campaigns for candidates, campaigns for ballot measures, or “independent expenditures” not directly coordinated with a campaign for a candidate or a ballot measure. Other than unions, not many corporations or other organizations obtain funds from payroll deductions to use for political purposes.

What Prop 32 would do if it passes:

  • Prohibit any corporation, labor union, government contractor, or government employer from using payroll deduction for political purposes.
  • Prop 32 would also prohibit any government contractor (including public sector labor unions) from making contributions to elected officials who play a role in awarding a contract to the contractor.

Effect on the state budget:

The state would experience increased costs to investigate possible violations of the law and to respond to requests for advice. These costs could exceed $1 million every year.

People for Prop 32 say (www.yesprop32.com):

  • Prop 32 prohibits money from being deducted from employees’ paychecks for political purposes without their permission.
  • Prop 32 stops special interest groups from influencing politicians with contributions.

People against Prop 32 say (www.stopspecialexemptions.org):

  • 99% of California corporations don’t use payroll deductions for political contributions, so Prop 32 is aimed at limiting unions.
  • Prop 32 does nothing to stop Corporate Super Political Action Committees and independent expenditure committees.

 

 

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