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. . If.A-iS £ £RIS D£CIJ $8 005 UNCOI FIIUllOI J- Governor Asked 'lo Veto 5B 905 and AB 7243 'lo £rot:ecr Many Existin9 Payrolt Oeductions lhe league and the California State ,~sociation of Counties {C~C} have formally regu~sted that Governor Gray Davis veto both SB 905 (Perata) and AB 1243 (Wiggins). The bills are companion measures that were never heard in policy or fiscal committees and were passed on the last day of the legislative session, with A~ 1243 supplementing the provisions of the primary bill, SB 905, The League and CSAC advised the Governor that SB 905 is unconstitutional and the preemption provisions of SB 905 would invalidate a number of existing voluntary payroll deductions. In seeking veto by the Governor, the two groups offered an independent legal opinion by the law firm of Nielsen, Merksamer, Parrinello, Mueller & Naylor concerning the constitutionality of SB 905. The authors of the opinion, Steven Merksamer and Richard Martland, conclude specifically "that excluding elected officers, managem and rank-and-file employees, other than employees who are members of a recognized bargaining organization, from the opportunity to use payroll deductions for contributions to political action committees is not reasonably related to any rational, legitimate public purpose." For this reason, they conclude "that proposed subdivision (f) of section 3205 is unconstitutional in that it violates the First Amendment of the United States Constitution." City attorneys may obtain a copy of the legal opinion by accessing the League's City Attorneys Department Web site at www.cacities.org/attorneys. The veto request also points out that by preempting the subject of payroll deductions that S8 905 appears to outlaw a number o¢ existing and possible voluntary employee payroll deductions. These include: (1) employee gifts of sick leave to fellow employees facing catastrophic illnesses; (2) a union requested program under which employees donate by payroll deduction to purchase health insurance for the surviving family members of a deceased firefighter; (3) employee computer purchase loan repayment programs; and (4) voluntary deductions for support, maintenance or care of a current or former domestic partner, The letter also points out the lack of specific statutory authorization for payroll deduction for voluntary employee deferred compensation p~ograms and qualified tuition programs. City officials are urged to join in this.request for veto in order to protect existing at-risk employee payroll deduction programs and to protect the First Amendment rights of city employees and officers who are discriminated against by SB 905 a nd AB 1243, A copy of the League's letter to the Governor and a sample veto request letter for use by cities are available on the League's Web site (www.cacities.org). City officials are urged to write immediately before the Governor takes action on the bills. Page 2 · July/August Highway Users Tax Payments Made ' · Silicon Valley Tax Forum to Explore Revenues Needed for Regional Stewardship Page 3 · Technology Grants for Local Law Enforcement · Cities Line Up for Race Equality Week · CCS Partnership Launches E-Newsletter Page4 · Legislative Bill Summaries