Press Release May 14, 1998	Contact: Judith Bell or Harry Snyder 415-431-6747 Consumers Union West Coast Regional Office

CONSUMERS UNION OPPOSES PROPOSITION 226, WHICH WOULD LIMIT UNION & NONPROFIT INVOLVEMENT IN PUBLIC POLICY

SAN FRANCISCO, CA – Consumers Union today announced its opposition to Proposition 226, which requires annual written authorization from employees before any wage deduction may be used for political purposes, including ballot measures. The proponents have dubbed the measure “paycheck protection,” and specifically target labor union dues for political campaigns. However, the measure’s sweeping impact will also severely hamper the public policy work and fundraising efforts of nonprofit organizations.

According to a new opinion by the state Legislative Counsel, the measure will apply to those nonprofits that receive support through voluntary fundraising drives that utilize paycheck deductions, such as those coordinated by the United Way and other workplace giving programs. The new requirements will apply to those employee wage deductions where the employer may “know or have reason to know” that any portion of the funds may ultimately be used in a ballot measure campaign in California.

“Proposition 226 will send a chill through workplace giving programs,” said Judith Bell, director of the West Coast Regional Office of Consumers Union, nonprofit publisher of Consumer Reports.

“Consumers Union believes workplace giving programs are an efficient and useful way for consumers to give to nonprofit organizations,” according to Bell. “In a time of significant government cutbacks, we need policies that make charitable giving easier, not more difficult.”

Many nonprofits become involved in state and local ballot measure campaigns related to their mission, such as school bond measures, health service programs, child care initiatives, those involving environmental guidelines, and many other issues. Sometimes nonprofits sponsor such measures; often they become involved in the opposition efforts. Such ballot measures are often not known at the time that voluntary workplace contribution campaigns take place. Because of the added red tape required to implement Prop. 226, employers may decide to discontinue such contribution campaigns, or coordinating charities may decide to require that all participating nonprofits agree not to be involved in ballot measure policy debates.

Groups that will be impacted by the requirements of Proposition 226 include the Planning Conservation League and Coalition for Clean Air.

“Prop. 226 is anti-democratic,” Bell said. “It would silence nonprofits in ballot measures that are key to their constituents. It would restrict the voice of groups already underrepresented in the political process – nonprofits and labor unions that represent working families – while leaving the corporate voice as powerful as before.”

“Prop. 226 is plain false advertising,” Bell said. “It is not ‘paycheck protection,’ when it makes even voluntary contributions more difficult for employees. Nor is Prop. 226 ‘campaign reform,’ when it leaves untouched large corporate donations that dominate the political process. We urge voters to reject Prop. 226.”