Corporate Campaign Contribution Ban. Lobbying Expenses Not Deductible.

CORPORATE CAMPAIGN CONTRIBUTION BAN. LOBBYING EXPENSES NOT DEDUCTIBLE. INITIATIVE STATUTE. Prohibits corporations from making contributions and expenditures, including independent expenditures, in state or local elections. Prohibits receipt of such contributions by candidates, committees and political parties. Prohibits employers from increasing employee compensation with intent that a portion be used to make contributions or expenditures. Prohibits discrimination against employees based upon their contributions or expenditures. Prohibits corporations from deducting state lobbying expenses from their state taxes. Amends Political Reform Act. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Would result in net annual revenues to the state of several millions of dollars. While the measure creates no new record keeping or tracking requirements, the Fair Political Practices Commission will be responsible for any enforcement actions that arise. It is not possible to estimate the amount of enforcement costs which will result from this measure, but these costs will probably not be major. The enforcement costs will be offset by additional annual revenues estimated to be six million dollars by the Franchise Tax Board. These revenues would result from the elimination of tax deductions for state lobbying expenses