Corporate contribution restriction bill fails

By CMTA Staff

Capitol Update, April 7, 2006 Share this on FacebookTweet thisEmail this to a friend

Another bill by Senator Dunn, SB 1354, would target corporate political activity by entitling any objecting shareholder to a payment from the corporation, after the fact, of the part of the contribution equal to their proportional share of the value of his or her equity in the corporation. Every shareholder would have at least 60 days to file such an objection.

CMTA opposes the bill because the current FPPC mandated Major Donor reports and the user-friendly political activity database provided by the Secretary of State's website already provide for sufficient transparency with regard to political contributions. Based on this information, shareholders have the right and ability to dispose of shares if they disagree with a corporation's contribution strategies. Also, allowing any shareholder to profit by receiving extra payments as well as the gains attributable to stock ownership would unfairly harm other shareholders in the corporation.

SB 1354 failed passage in the Senate Elections, Reapportionment and Constitutional Amendments committee this week with the Chair, Senator Debra Bowen (D-Marina del Rey) and Senator Gloria Romero (D-Los Angeles) voting in support. The bill has been granted reconsideration and may come up for another vote in the weeks ahead .  The swing vote would likely be Senator Kevin Murray (D-Los Angeles), the only other democrat on the committee.
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