February 25, 2005
Dear Attorney General Lockyer:
Pursuant to Elections Code Section 9005, we have reviewed the proposed statutory initiative related to political contributions from corporations (File No. SA2005RF0044).
Under current law, corporations with stockholders are authorized to make political contributions. A corporation determines on its own who can authorize such contributions (for instance, an executive officer, board of directors, or stockholders).
This measure restricts corporations with stockholders from making political contributions (for candidates, ballot measures, and issue advocacy) unless the stockholders authorize the contributions through a written resolution. The resolution would have to list the recipients and amounts of any authorized contributions.
The state’s Fair Political Practices Commission could experience increased costs to enforce the measure’s provisions. These costs would potentially total a few hundred thousand dollars annually. Such costs could be partially offset by fines collected from corporations not abiding by the measure’s provisions.
Fiscal Summary. This measure would have the following major fiscal impact:
State enforcement costs potentially totaling a few hundred thousand dollars annually, partially offset by increased fine revenues.