An Administrator's Guide to California Private School Law

Chapter 18 – Political Activity

B ALLOT I NITIATIVES

Section 4

A. F ORM O F D IRECT L OBBYING Ballot initiatives are quite common in California. Since the voters decide if an initiative is passed, the public is analogous to the legislature with respect to its role in passing legislation. Therefore, taking a public stance on a ballot initiative is akin to a form of direct lobbying because the voters are being urged to pass or not pass a certain piece of law. A school may have a particularly strong interest in the passage or defeat of a ballot initiative. Imagine a ballot initiative involving the creation of a proposed public transit line throughout a certain portion of a city. The plan for this transit line passes near the school’s campus, cutting it off from the main intersection used by most of the school’s parents and staff to enter the parking lot. The school fears that the placement of this transit line in its current proposed location will greatly disrupt access to the school and may dissuade future applicants from considering the school. If the school wanted to spend (an insubstantial amount of) time and money to urge voters not to pass this initiative, it may do so. However, as noted, it must report this direct lobbying activity on its annual Form 990, and make sure it is not spending more than an insubstantial amount of time and money on this issue. A. C ALIFORNIA T AX L AWS The California Revenue and Taxation Code has restrictions on lobbying that are similar to those in the Internal Revenue Code. 2459 If a school is going to engage in lobbying activities, we recommend it consult with a tax specialist to ensure the School properly reports and accounts for all lobbying expenditures when filing state tax documents. B. C ALIFORNIA L OBBYING L AW Under the Political Reform Act of 1974, lobbyists, organizations employing lobbyist(s) and organizations that spend $5,000 or more in any calendar quarter to influence legislation or administrative action generally must report their expenditures on Fair Political Practices Commission forms. 2460 Note that this law covers administrative action and not just legislation and does not apply to federal lobbying. This law defines a lobbyist as an individual who receives $2,000 or more in economic consideration in a calendar month for, or whose principal duties as an employee are, communicating directly or through agents with any elective or legislative official for the purpose of influencing legislation. 2461 Section 5 R ELATED C ALIFORNIA A ND F EDERAL L AWS

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 598