Tag Archives: Charles Calderon

Is Amazon’s Referendum Constitutional?

Amazon wants to overturn rules requiring they collect sales taxes, but is it possible through referendum?

by Brian Leubitz

The following provision of the California Constitution will get much scrutiny over the next few weeks (and months) as Amazon seeks to overturn the requirement that they collect sales taxes:

SEC. 9.  (a) The referendum is the power of the electors to approve

or reject statutes or parts of statutes except urgency statutes,

statutes calling elections, and statutes providing for tax levies or

appropriations for usual current expenses of the State.

That’s from Article II of the California Constitution.  While a quick reading would indicate that Amazon could not, in fact, put the tax statute to a referendum, quick readings don’t always win the day.  And while Amazon’s attorney, Steve Merksamer, spouts off about how the right to referendum is “sacrosanct,” it isn’t quite that simple either.

The measure is now in the capable hands of Attorney General Kamala Harris, who will determine whether it can proceed to the signature gathering phase.  If she determines that it is not a valid referendum, then Amazon will likely sue.  If she finds it is valid, well, expect a suit in the opposite direction, after all these are some high stakes:

Whichever way she rules, the losing side could end up suing.

“I’m sure there will be litigation on this,” said Assembly Majority Leader Charles Calderon, D-Whittier.

Calderon, Assemblywoman Nancy Skinner and several area retailers crowded into Swanberg’s on J, a small midtown clothier that specializes in Hawaiian shirts, to blast Amazon’s sales tax stance. By not collecting the tax, Amazon is harming brick-and-mortar retailers, they said.

“It’s a fairly big issue,” said Swanberg’s owner Lauren Lundsten, wearing shorts and a Hawaiian shirt.(SacBee)

The automatic 9% discount that Amazon gets is made any more fair through all of their machinations.  They’ve blocked other avenues to charge sales tax on their products, so what choice is left?

We should hear sometime soon from the AG’s office, and then shortly thereafter in the courts.  But this is not a battle that should have to be fought for the sake of an unfair advantage for an out-of-state corporation.

Dems Behaving Badly

You may have noticed that I don’t always agree with Ron Calderon and his legislative priorities.  You know, killing bills that block the dumping of indigent hospital patients and releasing private prescription data to marketers just isn’t my thing.  But today he has a new honor, being named the Worst Legislator in California with his brother Asm. Charles Calderon.

Of course, Calderon isn’t the first to win this award from the LA Weekly, that honor goes to Felipe Fuentes for, well, being a California legislator.  The knock on Fuentes made last year could just as well have been made on almost every legislator in the Capitol.  The problem they pointed out with Fuentes was that he was “authoring” bills actually written by “sponsoring” interests.  Yes, Fuentes does that, and he might take the art to new levels, but he is hardly unique.  This is just part of the crazy, messed-up system we have in Sacramento. (Incidentally, if you’d like to learn just how messed up it is, Ray LeBov can teach you a lot in his Lobbying 101 class).

So, yes, “special interests” write most of our bills, and, yes, that is totally and completely messed up.  But, as for Fuentes, hate the game, don’t hate the player.  Well, maybe tell the player to knock it the hell off, and wait for him to get termed out.  And the Brothers Calderon’s “award” starts with a similar trope of bill “sponsors.”  But more importantly it moves on to how they have been key players on Team PayDayLoan:

The reward for Calderon has been significant. According to MAPLight, he received more in direct campaign contributions connected to the payday and title loans special-interest group – $31,450 – than any other member of the Assembly in the 2009-10 or 2010-11 sessions. In the state Senate, his brother Ron received the most from the payday group – $50,000.

The current $300 loans cost a fee of $45, the maximum allowed. But the fee is deducted from the loan, leaving the borrower just $255 – and beholden for $300. That must be repaid within two weeks. The average payday loan customer takes out seven such loans each year. …

Charles Calderon argues that the current $300 limit barely pays the bills. “There are people who think payday lenders are vultures,” he says. “I don’t think I’m in a position to decide what [people’s] reasons are for wanting these loans. I represent East L.A., and those people need that money when they need it, sometimes to save the family car. I grew up in East L.A. in a poor family. I know desperation. Desperate people do desperate things.”

The assemblyman bristles when he’s accused of taking money for his vote, or as payback for carrying a bill for special interests.

“I might take money from a bank or a union, and then two or three years down the road I vote on a bill affecting that bank or union – and I get criticized because they gave me money years before.”

Not always “two or three years” later. As MAPLight.org points out regarding his yes vote on AB 2774, the big sums appeared in Calderon’s campaign chest within days. (LA Weekly)

As Asm. Holly Mitchell (D-47th, SE LA) pointed out, these lenders are vultures who are preying on the vulnerable.  Making Californians more vulnerable is not the answer.

But that’s not all for the Brothers Calderon.  Today, the LA Times revealed the dirty work that the Calderons have been doing for their local water agency:

Central Basin has also paid Oldtimers’ board president, former Assemblyman Tom Calderon, more than $750,000 in consulting fees since 2004 for political and legislative advice.

Calderon’s two brothers, both state legislators, have defended the water district’s interests in Sacramento. In 2009, Sen. Ron Calderon (D-Montebello) helped thwart an audit of Central Basin’s books. This year, Assemblyman Charles Calderon (D-Whittier) proposed legislation that could reduce the fees Central Basin’s customers pay for groundwater.

Tom and Ron Calderon, as well as Central Basin officials and contractors, helped finance a recall effort in 2008 against two council members in the City of Commerce who were critics of the water district, records show. (LA Times

The Calderons are certainly not the only ones who will do you a favor for some campaign cash or a gig for their brother, but they certainly strike a stunning profile in the art.  Ron is termed out in 2014, Charles in 2012.  Although, I suppose it wouldn’t shock anybody to see Tom Calderon run for the Senate seat in 2014 so that they can continue their, umm, service to the people of California.

One of the issues with the so called “moderates” in the California Democratic party isn’t so much where they disagree on social issues, because that rarely comes up anymore.  It is where they are able to be swayed by, typically, large corporate interests to put the interests of the few over the interests of the many.  That’s really not being moderate, that’s something entirely different, that doesn’t serve constituents or the state in general.  If you have beliefs, fine, let’s talk about them.  But I’m not so sure the Calderons really want to have a very public debate about the finer points of payday loans or water policy vis a vis their consulting contracts.

Clearly the laws of the State of California leave gaping holes for dirty money to seep in, and much of it is completely legal while some others skirt the lines.  However, we needn’t strive to walk that line, but rather look for ways to cut dramatically back on this crap.  And perhaps some political dynasties, the state of California would be better doing without.

The Calderons are hardly the first, and they certainly won’t be the last.  However, we can hope that a little sunshine from organizations like MapLight can discourage the skeazier of these actions.

The Calderons Strike Again: Say No to More Loan Sharking

I’ve been in a tiff or two with a Calderon brother in my time,  but this time Ron Calderon isn’t the object of the net roots ire.  This time it is Asm. Charles Calderon, who was carrying a bill about advertising for payday lenders.  Apparently now he has decided that he would rather carry their water, and has gutted it and replaced it with provisions that would make many a loan shark smile.  Many consumer groups were surprised by the move, but together with CREDO, they are fighting back

Just before the Assembly went into its Spring Recess, payday lenders were able to change AB 1158, a bill originally about payday lender advertising, to instead raise the legal limit of payday loans in California from $300 to $500.

Consumer advocates were completely blindsided.

With millions of Californians struggling just to get by, the last thing we should do is make it easier for predatory payday lenders to trap people in a vicious cycle of debt.

They are asking their members, and I wholeheartedly support the ask, to call the Democratic members of the banking and finance committee in the Assembly.  Click here to get the names and phone numbers and to report the calls.

This is a sneaky move, but nothing really that new from one of the slimier business sectors.  It’s time to tell these lobbyists that they can’t just skulk around in hopes that nobody notices.  Unfortunately we can’t catch all of these egregious abuses of the arcane process, but on this one, they got caught.

Time to let the Assembly know that this is not cool.