Calif. Prop. 32 in unions' crosshairs

http://www.sfgate.com/politics/joegarofoli/article/Calif-Prop-32-in-unions-crosshairs-3718306.php

The stated intention of Proposition 32 on the November ballot is to "ban both corporate and union contributions to candidates."

But analysts say that while it could dry up organized labor's primary funding source, it contains a loophole that will allow corporate interests to continue doling out campaign donations.

That scenario has put the fear of Wisconsin into California unions, which have raised $8.2 million to fight Prop. 32, positioning it as one of the most high-profile, high-dollar battles this fall.

Unions don't want to be weakened to the point where they could suffer a crackdown on their ability to bargain collectively, as happened in Wisconsin under Republican Gov. Scott Walker.

California's labor unions are stronger than those in Wisconsin, but Prop. 32 would limit labor's chief weapon for influencing the state's politics - political donations - by preventing unions from using automatic payroll deductions from members without their permission.

But while the measure also bans donations from corporations to political candidates and candidate-controlled committees, it doesn't ban contributions from limited liability companies, also known as LLCs, or from limited partnerships or real estate trusts - which represent some of California's biggest political donors to both major parties.

Those major donors, which contributed at least $10,000 in the 2010 election cycle, include: Yucaipa Companies LLC, which was founded by Ron Burkle, a nationally prominent Democratic donor; and Aurora Management Partners LLC, which is led by Gerald Parsky, a political appointee of five Republican presidents.