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

2. Overview This presentation will cover the following topics:  Supporting/Opposing State Candidates  Supporting/Opposing Federal Candidates  Reporting Campaign Activity

3. Overview Campaign activities are regulated by state, federal and sometimes local agencies Campaign activities are regulated by state, federal and sometimes local agencies Generally, the law regulates the use of money in campaigns Generally, the law regulates the use of money in campaigns

4. SUPPORTING STATE CANDIDATES

5. The Local can support state candidates in the following three basic ways: 1. Contributions 2. Independent Expenditures 3. Member Communications

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

7. CONTRIBUTIONS Contributions made to state candidates are limited Legislative Candidates: $3,900/$7,800 per election Statewide Candidates (Except Gov.): $6,500/$12,900 per election Governor Candidates: $25,900 per election

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

9. INDEPENDENT EXPENDITURES Are not subject to contribution limits Are not subject to contribution limits Are made from the Local’s independent expenditure PAC Are made from the Local’s independent expenditure PAC Cannot be made in coordination with the candidate Cannot be made in coordination with the candidate If coordinated, become contributions and are subject to limits If coordinated, become contributions and are subject to limits

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

11. INDEPENDENT EXPENDITURES A particular expenditure is “made at the behest of” a candidate if it is made: Under the control Under the control At the direction of At the direction of In cooperation, consultation, coordination or concert with In cooperation, consultation, coordination or concert with At the request or suggestion of or with express, prior consent of the candidate At the request or suggestion of or with express, prior consent of the candidate

12. INDEPENDENT EXPENDITURES Communications become contributions and are no longer independent if made: 1. After the candidate or committee has made or participated in making any decision regarding content, timing, location, mode, intended audience, volume of distribution, or frequency of placement of the communication, OR

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

14. SUPPORTING STATE CANDIDATES Keeping Independent Expenditures Independent

15. INDEPENDENT EXPENDITURES Prohibitions No sharing of information obtained from the candidate, committee or agent of either No sharing of information obtained from the candidate, committee or agent of either No sharing of staff No sharing of staff Firewall Firewall

16. INDEPENDENT EXPENDITURES Acceptable Contact Interviewing the candidate about issues Interviewing the candidate about issues Obtaining photo, bio, position paper, press release or other material Obtaining photo, bio, position paper, press release or other material Making a contribution Making a contribution Inviting the candidate to appear to discuss issues Inviting the candidate to appear to discuss issues As long as no exchange of info As long as no exchange of info

17. SUPPORTING STATE CANDIDATES MEMBER COMMUNICATIONS

18. Includes only communications to member and member’s family Includes only communications to member and member’s family Applies only to communications made by union to members Applies only to communications made by union to members Does not apply to sending out candidate’s brochures – must be the union’s message Does not apply to sending out candidate’s brochures – must be the union’s message May be coordinated with candidate’s campaign May be coordinated with candidate’s campaign

19. SUPPORTING STATE CANDIDATES Q: Can unions do coordinated communications with a candidate and independent expenditures for the same candidate?

20. SUPPORTING STATE CANDIDATES A: Yes. Just because a union coordinates its member communications or contributions with the candidate does not mean it cannot also make independent expenditures. However, precautions must be taken to maintain the independence of the IEs

21. SUPPORTING STATE CANDIDATES One precaution that can be taken by the union is called a firewall One precaution that can be taken by the union is called a firewall Firewall can lessen the likelihood of coordination Firewall can lessen the likelihood of coordination Does not guarantee the independence of IEs Does not guarantee the independence of IEs

22. SUPPORTING STATE CANDIDATES While a firewall can diminish the likelihood of coordination between the candidate and the independent expenditure staff, each case is evaluated based on whether actual coordination occurred While a firewall can diminish the likelihood of coordination between the candidate and the independent expenditure staff, each case is evaluated based on whether actual coordination occurred

23. SUPPORTING STATE CANDIDATES Remember, an independent expenditure is not independent if it is “made at the behest of” the candidate Remember, an independent expenditure is not independent if it is “made at the behest of” the candidate

24. SUPPORTING FEDERAL CANDIDATES Federal elections governed by federal laws Federal elections governed by federal laws No union contributions or expenditures permitted in federal elections except through a federal PAC No union contributions or expenditures permitted in federal elections except through a federal PAC

25. FEDERAL CANDIDATES Major exception for member communications by unions Major exception for member communications by unions –Permitted if directed only to union members and their immediate families –Reportable to Federal Election Commission when costs exceed $2,000 per election –No coordination with federal candidates –Member=Members of all affiliated labor organizations –Labor Fed and CLC communicate with members of all affiliated local unions.

26. CAMPAIGN REPORTING

27. INDEPENDENT EXPENDITURES CALPERS ELECTION  Late Independent Expenditure Reports (FPPC Form 496)  Supplemental Independent Expenditure Reports (FPPC Form 465)

28. CAMPAIGN REPORTING INDEPENDENT EXPENDITURES CALPERS ELECTION Late Independent Expenditure Reports are due within 24 hours of making independent expenditures $1,000 or more during the last 90 days before the election

29. CAMPAIGN REPORTING INDEPENDENT EXPENDITURES CALPERS ELECTION Supplemental Independent Expenditure Reports are due at the same time the candidates in the race are required to file

30. CAMPAIGN REPORTING INDEPENDENT EXPENDITURES CALPERS ELECTION Late Independent Expenditure Reports for the runoff election are due within 24 hours of the expenditure from now until Election Day, December 4th

31. CAMPAIGN REPORTING INDEPENDENT EXPENDITURES CALPERS ELECTION Late Independent Expenditure Reports for the runoff election are due within 24 hours of the expenditure from now until Election Day, December 4th

32. QUESTIONS