The Blog

When is a Corporation Not a Corporation? According to Prop. 32, When It's an LLC, LLP, REIT or Etc.

Susan DeCesare, a teacher in the Martinez Unified School District, and Anita Vanegas, a teacher in the Fremont Unified School District, discuss Proposition 32, the CTA-opposed Special Exemptions Act that will increase the power of wealthy special interests to get their way in the state Capitol.
As teachers in Northern California learned more about Proposition 32, the CTA-opposed Special Exemptions Act on the November 6 ballot, they were surprised to discover the double-wide loopholes that will allow a host of corporations to drive through.

Proposition 32 presumably regulates political contributions by "corporations," but the proposition's language uses technical terminology that exempts every business organization that is not "technically" a corporation, as defined in law, from its ban on using payroll deductions for political purposes.
Want a short list of the kinds of "non-corporation" corporations that are exempt from its provisions?  Here are just some - limited liability companies (LLCs, such as Amazon), limited liability partnerships (LLPs), limited partnerships (LPs), business trusts, real estate investment trusts (REITs), and sole proprietorships are intentionally exempted by the crafters of this misleading measure.
Did I mention that billionaires and Super PACs are also exempted?  They are.

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