California chamber leads campaign against Prop. 89
Guest opinion
By the California and Camarillo chambers of commerce

The California Chamber of Commerce is helping organize opposition to a November ballot measure that could virtually eliminate the ability of businesses to participate in the political process.

If approved by voters, Proposition 89, sponsored by the California Nurses Association and the Foundation for Consumer and Taxpayer Rights (a trial lawyer front group), will give anti-business forces such as the bar and nurses union a big advantage in campaigning for or against candidates and ballot measures.

The Camarillo Chamber of Commerce has not yet taken a position on this proposition.

According to the California Chamber of Commerce, Prop. 89 is falsely touted by its supporters as a "clean money" measure. Proposition 89 increases the income tax rate on corporations, banks and financial corporations by 0.2 percent per year to fund a new public campaign financing system.

Many small businesses, even mom-and-pop shops that are incorporated, would be subject to the tax. Candidates for office would be able to tap taxpayers to fund their campaigns, including paying for negative television ads and hit-piece direct mailers. The measure places practically no limits on how the politicians spend the taxpayer-provided campaign funds.

The new contribution restrictions on business include:

+a $10,000 limit on corporate expenditures to support or oppose any given ballot measure

+a ban on corporate contributions to political parties or political action committees

+a ban on corporations making independent expenditures to support or oppose candidates or contributing to an independent expenditure committee

+a $10,000 limit on corporate contributions to a candidate-controlled ballot measure committee

+a ban on corporate contributions to candidates who opt to receive public funding.

Individuals may contribute only up to $100 during specified periods and only if they live in the district in which the candidate seeks office

+a significant decrease in the amount a corporation may give to a non-publicly funded candidate for state office. The limits would be only $500 per election for legislative and Board of Equalization candidates and $1,000 per election for statewide candidates, with a combined annual limit of $7,500 to all candidates for state office.

Californians enjoy the right of referendum to take laws passed by the Legislature directly to the people before they take effect.

Under Proposition 89, businesses would in effect be barred from the referendum process due to the measure's severe limits on the ability of businesses to contribute to issue and ballot measure campaigns.

According to the California Chamber of Commerce's analysis of the measure, not only does Proposition 89 give tax money to politicians to spend on their campaigns, it also permits publicly funded candidates to receive additional "matching funds" to offset contributions and independent expenditures beyond a certain level on behalf of privately funded opponents.

The measure also prohibits state contractors or anyone seeking state contracts from contributing to any candidate for or holder of an office with which the contractor has or seeks a contract. State contractors could not contribute to political party committees or independent expenditure committees to support or oppose candidates, or to legal defense funds of candidates or office holders.

For more information on how to get involved, call the campaign at (916) 448-4234.