CC - Item 4D - AB84 - Expenditure of Public Funds on Organization Forming Political Action Commmittees - Oppose S
\\pn,�% stafteport TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
DATE: MAY 5, 1999
RE: AB 84(GRANLUND)-EXPENDITURE OF PUBLIC FUNDS ON ORGANIZATIONS
FORMING POLITICAL ACTION COMMITTEES - OPPOSE
AB 84 (Granlund) seeks to prohibit cities, counties and special districts from paying membership
dues to any organization that contributes to or establishes a Political Action Committee(PAC). This
bill is in direct response to the League of California Cities formation of a PAC to defray the costs
of placing an initiative on state ballot to protect local funding sources. Current state law allows
direct lobbying activities by cities and other local entities. However, it does not grant specific
authorization to local governments to expend public money on PAC activities. Because specific
authorization is lacking, Assemblymember Granlund believes that it is inappropriate to use public
funds to pay membership dues in organizations that engage in such activities. Accordingly, the
Assemblymember has introduced a bill to ensure that his point of view prevails.
I i
The practical impact of AB 84 on the City of Rosemead is probably not significant. To date, the
Council has not indicated whether it supports the current League efforts to form a PAC.and the City
does not contribute directly to any PACs. However, if the Council is supportive of the League's
efforts to form a PAC for the purposes of placing an initiative on the ballot, it would be appropriate
to oppose the bill because of its potential to limit local government influence on policy formation
at the State level.
Attached is a copy of AB 84 and a recent committee analysis of the bill for the Council's review.
RECOMMENDATION:
It is recommended that the City Council oppose AB 84 (Granlund) and authorize the Mayor to send
the appropriate correspondence.
COUNCIL AGENDA
.c,vemoab84 fp MAY 111999
ITEM No.iZ• tt .
J
• MRY 05. '99 08:32PM GONSALVES & SON P.1/2
AMENDED IN SENATE APRIL 26, 1999
AMENDED IN ASSEMBLY APRIL 8, 1999
AMENDED IN ASSEMBLY MARCH 11, 1999
CALIFORNIA LEGISLATURE-1999-2000 REGULAR SESSION
ASSEMBLY BILL No. 84
Introduced by Assembly Member Granlund
(Coauthor: Assembly Member Frusetta)
December 9; 1998
An act to add Section 53072.5 to the Government Code,
•
relating to political committees.
LEGISLATIVE COUNSELS DIGEST .
AB 84, as amended, Granlund. Political committees:
public entities.
Existing law generally prohibits any elected state officer,
•
appointee, employee, or consultant from using or permitting
others to use state resources for political campaign activity.
This bill would prohibit a city, county, special district, or
other local governmental agency from using public funds to
pay membership dues or membership fees to any
organization that is, makes defined contributions to, or
establishes or maintains, a committee as defined under the
Political Reform Act of 1974 that is established and registered
with the Secretary of State on and after January 1., 1999,
. Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
•
96
•
f1F]Y e5.'99 ee:33AM GONSALVES & SON P.2/2
AS 84 — 2 —
The people of the State of California do enact as follows:
1 SECTION 1. Section 53072.5 is added to the
2 Government Code, to read:
3 53072.5. No city, county, special district, or other local
4 governmental agency may use public funds to pay
5 membership dues or membership fees to any
6 organization that is, makes any contribution to, or
7 establishes or maintains, a committee as defined in
8 Section 82013 that is established and registered with the
9 Secretary of State on and after January 1, 1999. For
10 purposes of this section, "contribution" has the same
11 meaning as defined in Section 82015. For purposes of this
12 section, "contribution" does not include the
13 communication by an organization of its endorsement of
14 a candidate made either directly to the candidate or in its
15 membership based newsletter.
16 SEC. 2. It is the intent of the Legislature that no
17 committee, as defined in Section 82013 of the
18 Government Code, that is established and registered with
19 the Secretary of State on and after January 1, 1999, and
20 that is established, managed, or maintained with any
21 public funds shall participate in any campaign involving
22 the qualification or election of a candidate or ballot,
23 measure.
•
Or
96
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Bill ID(s): ab84
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CA AB 04 AUTHOR: Oranlund Frueetta
TITLE: Political Committees: Public Entities
LOCATION: Senate Elections and Reapportionment
Committee
SUMMARY:
Prohibits a city, county, special district, or other local
governmental agency from using public funds to pay membership
dues or membership fees to any organization that is, makes
defined contributions to, or establishes or maintains, a
committee as defined under the Political Reform Act of 1974 that
is established and registered with the Secretary of State on and
after 1/1/1999.
STATES:
12/09/1998 INTRODUCED.
01/11/1999 To ASSEMBLY Committee on ELECTIONS, REAPPORTIONMENT
AND CONSTITUTIONAL AMENDMENTS.
03/11/1999 Prom ASSEMBLY Committee on ELECTIONS,
REAPPORTIONMENT AND CONSTITUTIONAL AMENDMENTS with
author's amendments.
03/11/1999 In ASSEMBLY. Read second time and amended-
Re-referred to Committee on ELECTIONS, REAPP & CON
AMEND.
03/22/1999 Prom ASSEMBLY Committee on ELECTIONS,
REAPPORTIONMENT AND CONSTITUTIONAL AMENDMENTS: DO
pays.
03/24/1999 In ASSEMBLY- Read second time. To third reading.
04/08/1999 In ASSEMBLY. Read third time and amended. To third
reading.
04/15/1999 In ASSEMBLY. Read third time. Passed ASSEMBLY.
*****To SENATE.
04/21/1999 To SENATE Committee on ELECTIONS AND REAPPORTIONMENT.
04/26/1999 From SENATE Committee on ELECTIONS AND
REAPPORTIONMENT with author's amendments.
04/26/1999 Ia SENATE. Read second time and amended.
Re-referred to Committee on ELECTIONS AND
REAPPORTIONMENT.
END OF REPORT
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5/5/999:16 AM
MAY 25 '99 08:06AM GONSALVES & SON P.3/4
In analysis text, brackets have special meaning'
[A> <A) contains added text, and
[Do cD) contains deleted text.
ab 84
aft
19990413
BILL ANALYSIS
ASSEMBLY THIRD READING
AE 84 (Granlund)
As Amended April B, 1999
Majority vote
SUMMARY: Prohibits cities, counties, special districts, and other local
governmental agencies from using public funds to pay membership dues to
political committees. Specifically,this bill:
1) Prohibits a city, county, special district, or other local governmental
agency, from using public funds to pay membership dues or fees to:
a) Any political committee, as defined by the Political Reform Act of 1974
(PRA) , that is established and registered with the Secretary of State (SOS) on
and after January 1, 1999; and,
b) Any organization that makes a contribution to, establishes, or
maintains, a political committee, as defined by PRA, that is established and
registered on and after that date.
2) States the intent of the Legislature that no committee established and
registered on and after January 1, 1999, that is established, managed, or
maintained with any public funds shall participate in any campaign involving
the qualification or election of a candidate or ballot measure .
EXISTING LAW:
1) PRA generally defines three types of "committees" : a) recipient
committees that receive contributions totaling $1,000 or more in a calendar
year; b) Independent expenditure committees that make independent expenditures
totaling $1,000 or more in a calendar year; and, c) major donor committees
chat make contributions totaling $10,000 or more in a calendar year.
2)Allows cities, counties, and local agencies to lobby the Legislature
directly or through a representative, to enter into associations that lobby
the Legislature directly or through a representative, and makes the costs and
expenses of that activity proper charges against the city, county, or local
agency.
3)Requires any city to file with SOS periodic reports disclosing
membership dues payments to any organization that spends 10t of its total
expenditures, or $15,000 or more, during any calendar quarter on lobbying
activities.
FISCAL EFFECT: Unknown
MAY 05 '99 O8:06AM GONSALVES & SON P.4/4
COMMENTS: The author's office indicates that this bill was introduced in
response to an announced effort by the League of California Cities (League) to
qualify an initiative for the November 2000 ballot that would protect local
property taxes and guarantee cities and counties the revenue they receive from
vehicle registration. The intent of the initiative is to create stability in
this source of funding for city services. The League intends to form a
political action committee to collect contributions to defray the high cost of
the initiative campaign. The author of this bill believes that taxpayer funds
should not be used to create or maintain activities of a political action
committee.
Public moneys may not generally be spent for campaign purposes without
clear statutory authority. Local officials who spend public money on
campaigns are subject to prosecution for violation of criminal statutes, such
as embezzlement and other crimes. As discussed above, however, state law
expressly authorizes cities, among other local agencies, to expend public
funds for lobbying the Legislature directly or by joining an association that
engages in lobbying activities. Public funds cannot be used to gather
signatures for an initiative or referendum measure, or to promote a measure
that has qualified for the ballot, without clear and explicit legislative
authorization. This bill would go a step further and prohibit the use of
public moneys by a city, county, district, or other local agency, to belong to
an association of other local agencies that engages in campaign activities,
even when public funds are not used for those activities .
The League, which opposes this bill, states that its intent in
establishing a committee is to create a "parallel organization" to support the
League' s efforts to communicate its position on key ballot measures and
legislative issues. There will be no dues money from California cities used,
and the organization will make no contributions to candidates for state or
local office. It is strictly established to advocate/communicate on behalf of
city issues. This will remove any appearance of impropriety in representing
the position of an organization of public agencies. Thus, notwithstanding the
apparent purpose of the author to stop a practice that the author finds
questionable, the intent of the League is to communicate the message of city
officials on key issues, an option that should be available to the cities of
California.
Analysis Prepared by: Romulo I. Lopez / E. ,R. & C.A./ (916)
319-2094