SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 1000 CAMPAIGN PRESENTATION November 20, 2009 Presented by Rebecca J. Olson Olson, Hagel & Fishburn, LLP

SERVICE EMPLOYEES SERVICE EMPLOYEES INTERNATIONAL UNION INTERNATIONAL UNION

LOCAL 1000LOCAL 1000CAMPAIGN PRESENTATIONCAMPAIGN PRESENTATION

November 20, 2009November 20, 2009

Presented by Rebecca J. OlsonPresented by Rebecca J. OlsonOlson, Hagel & Fishburn, LLPOlson, Hagel & Fishburn, LLP

www.olsonhagel.comwww.olsonhagel.com

OverviewOverview

This presentation will cover the following This presentation will cover the following topics:topics:

Supporting/Opposing State CandidatesSupporting/Opposing State Candidates

Supporting/Opposing Federal CandidatesSupporting/Opposing Federal Candidates

Reporting Campaign ActivityReporting Campaign Activity

OverviewOverview

• Campaign activities are regulated by Campaign activities are regulated by state, federal and sometimes local state, federal and sometimes local agenciesagencies

• Generally, the law regulates the use Generally, the law regulates the use of money in campaignsof money in campaigns

SUPPORTINGSUPPORTING STATE STATE CANDIDATESCANDIDATES

SUPPORTING STATE SUPPORTING STATE CANDIDATESCANDIDATES

The Local can support state candidates The Local can support state candidates in the following three basic ways:in the following three basic ways:

1.1. ContributionsContributions

2.2. Independent ExpendituresIndependent Expenditures

3.3. Member CommunicationsMember Communications

CONTRIBUTIONSCONTRIBUTIONS

Unions, through their political Unions, through their political action committees, or PACs, can action committees, or PACs, can make monetary or in-kind make monetary or in-kind contributions to state candidatescontributions to state candidates

CONTRIBUTIONSCONTRIBUTIONS

Contributions made to state candidates are limitedContributions made to state candidates are limited

Legislative Candidates: $3,900/$7,800 per electionLegislative Candidates: $3,900/$7,800 per election

Statewide Candidates (Except Gov.): Statewide Candidates (Except Gov.): $6,500/$12,900 per election$6,500/$12,900 per election

Governor Candidates: $25,900 per electionGovernor Candidates: $25,900 per election


Independent ExpendituresIndependent Expenditures

An independent expenditure is an expenditure An independent expenditure is an expenditure made in connection with a communication which made in connection with a communication which expressly advocates the election or defeat of a expressly advocates the election or defeat of a clearly identified candidate, or taken as a whole clearly identified candidate, or taken as a whole and in context, unambiguously urges a and in context, unambiguously urges a particular result in an election but particular result in an election but which is not which is not made to or at the behest of the affected made to or at the behest of the affected candidate or committeecandidate or committee..

INDEPENDENT INDEPENDENT EXPENDITURESEXPENDITURES

• Are not subject to contribution limitsAre not subject to contribution limits

• Are made from the Local’s Are made from the Local’s independent expenditure PACindependent expenditure PAC

• Cannot be made in coordination with Cannot be made in coordination with the candidatethe candidate

• If coordinated, become contributions If coordinated, become contributions and are subject to limitsand are subject to limits


Expenditures are coordinated, and Expenditures are coordinated, and therefore subject to limits, if they therefore subject to limits, if they are “made at the behest of” the are “made at the behest of” the affected candidateaffected candidate


A particular expenditure is “made at the A particular expenditure is “made at the behest of” a candidate if it is made:behest of” a candidate if it is made:

•Under the controlUnder the control•At the direction ofAt the direction of•In cooperation, consultation, coordination In cooperation, consultation, coordination or concert withor concert with•At the request or suggestion of or with At the request or suggestion of or with express, prior consent of the candidateexpress, prior consent of the candidate


Communications become contributions Communications become contributions and are no longer independent if and are no longer independent if made:made:

1. After the candidate or committee 1. After the candidate or committee has made or participated in making has made or participated in making any decision regarding content, any decision regarding content, timing, location, mode, intended timing, location, mode, intended audience, volume of distribution, or audience, volume of distribution, or frequency of placement of the frequency of placement of the communication, ORcommunication, OR


2. After discussion between the creator, 2. After discussion between the creator, producer, or distributor of the producer, or distributor of the communication, or the person paying for communication, or the person paying for that communication, and the candidate that communication, and the candidate or committee, regarding the content, or committee, regarding the content, timing, location, mode, intended timing, location, mode, intended audience, volume of distribution, or audience, volume of distribution, or frequency of placement of the frequency of placement of the communication, the result of which is communication, the result of which is agreement on any of these topicsagreement on any of these topics


Keeping Independent Expenditures Independent


ProhibitionsProhibitions

• No sharing of information obtained from the No sharing of information obtained from the candidate, committee or agent of eithercandidate, committee or agent of either

• No sharing of staffNo sharing of staff

• FirewallFirewall


Acceptable ContactAcceptable Contact• Interviewing the candidate about issuesInterviewing the candidate about issues• Obtaining photo, bio, position paper, press Obtaining photo, bio, position paper, press

release or other materialrelease or other material• Making a contributionMaking a contribution• Inviting the candidate to appear to discuss Inviting the candidate to appear to discuss

issuesissues• As long as no exchange of infoAs long as no exchange of info


MEMBER COMMUNICATIONSMEMBER COMMUNICATIONS

MEMBER COMMUNICATIONSMEMBER COMMUNICATIONS

•Includes Includes onlyonly communications to member communications to member and member’s familyand member’s family

•Applies only to communications made by Applies only to communications made by union to membersunion to members

•Does not apply to sending out candidate’s Does not apply to sending out candidate’s brochures – must be the union’s messagebrochures – must be the union’s message

•May be coordinated with candidate’s May be coordinated with candidate’s campaigncampaign


Q: Can unions do coordinated Q: Can unions do coordinated communications with a candidate communications with a candidate and independent expenditures for and independent expenditures for the same candidate?the same candidate?


A: Yes. Just because a union A: Yes. Just because a union coordinates its member coordinates its member communications or contributions with communications or contributions with the candidate does not mean it cannot the candidate does not mean it cannot also make independent expenditures.also make independent expenditures.

However, precautions must be taken However, precautions must be taken to maintain the independence of the to maintain the independence of the IEsIEs


• One precaution that can be taken by One precaution that can be taken by the union is called a firewallthe union is called a firewall

• Firewall can lessen the likelihood of Firewall can lessen the likelihood of coordinationcoordination

• Does not guarantee the Does not guarantee the independence of IEsindependence of IEs


• While a firewall can diminish the While a firewall can diminish the likelihood of coordination between likelihood of coordination between the candidate and the independent the candidate and the independent expenditure staff, each case is expenditure staff, each case is evaluated based on whether actual evaluated based on whether actual coordination occurredcoordination occurred


• Remember, an independent Remember, an independent expenditure is not independent if it is expenditure is not independent if it is “made at the behest of” the “made at the behest of” the candidate candidate

SUPPORTING FEDERAL SUPPORTING FEDERAL CANDIDATESCANDIDATES

• Federal elections governed by federal Federal elections governed by federal lawslaws

• No union contributions or expenditures No union contributions or expenditures permitted in federal elections except permitted in federal elections except through a federal PACthrough a federal PAC

FEDERAL CANDIDATESFEDERAL CANDIDATES

• Major exception for member communications Major exception for member communications by unionsby unions– Permitted if directed only to union members and Permitted if directed only to union members and

their immediate familiestheir immediate families– Reportable to Federal Election Commission when Reportable to Federal Election Commission when

costs exceed $2,000 per electioncosts exceed $2,000 per election– No coordination with federal candidatesNo coordination with federal candidates– Member=Members of all affiliated labor Member=Members of all affiliated labor

organizationsorganizations– Labor Fed and CLC communicate with members of Labor Fed and CLC communicate with members of

all affiliated local unions.all affiliated local unions.

CAMPAIGN REPORTINGCAMPAIGN REPORTING


INDEPENDENT EXPENDITURESINDEPENDENT EXPENDITURES

CALPERS ELECTIONCALPERS ELECTION

Late Independent Expenditure Reports Late Independent Expenditure Reports (FPPC Form 496)(FPPC Form 496)

Supplemental Independent Expenditure Supplemental Independent Expenditure Reports (FPPC Form 465)Reports (FPPC Form 465)


INDEPENDENT EXPENDITURESINDEPENDENT EXPENDITURES


Late Independent Expenditure Reports Late Independent Expenditure Reports are due within 24 hours of making are due within 24 hours of making independent expenditures $1,000 or independent expenditures $1,000 or more during the last 90 days before more during the last 90 days before the electionthe election


INDEPENDENT EXPENDITURESINDEPENDENT EXPENDITURESCALPERS ELECTIONCALPERS ELECTION

Supplemental Independent Supplemental Independent Expenditure Reports are due at the Expenditure Reports are due at the same time the candidates in the race same time the candidates in the race are required to fileare required to file

CAMPAIGN REPORTINGCAMPAIGN REPORTINGINDEPENDENT EXPENDITURESINDEPENDENT EXPENDITURES


Late Independent Expenditure Reports Late Independent Expenditure Reports for the runoff election are due within for the runoff election are due within 24 hours of the expenditure from now 24 hours of the expenditure from now until Election Day, December 4thuntil Election Day, December 4th

CAMPAIGN REPORTINGCAMPAIGN REPORTINGINDEPENDENT EXPENDITURESINDEPENDENT EXPENDITURES


Late Independent Expenditure Reports Late Independent Expenditure Reports for the runoff election are due within for the runoff election are due within 24 hours of the expenditure from now 24 hours of the expenditure from now until Election Day, December 4thuntil Election Day, December 4th

QUESTIONSQUESTIONS

Documents

SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 1000 CAMPAIGN PRESENTATION November 20, 2009 Presented by Rebecca J. Olson Olson, Hagel & Fishburn, LLP