The Third House:Lobbyists, Money, and Power in SacramentoJay Michael and Dan Walters, with Dan Weintraub
Ch. 1: Who are these people?   Lobbyists are a key player in the “three-    legged stool” of effective political action: ...
Lobbyist Power   Thousands of interest groups are affected    by state decisions every day   Lobbyists represent affecte...
Southern Pacific   Monopoly on transportation by Southern    Pacific Railroad in the late 19th century led    to reforms ...
1930s growth of state government   Transformation from agrarian to    manufacturing economy       Motion pictures      ...
Artie Samish   The Secret Boss of    California pushed    regulations that    protected his clients    from competition  ...
1940s-50s: Two Capitols?   Samish focused on minute but lucrative    issues affecting his clients   Governor Earl Warren...
Still Two Capitols?   Most people know that California state    legislators are making big decisions on    major issues s...
Jesse Unruh   Unruh took control of    the “select and elect”    system and brought it    inside       Legislative leade...
1960s-1980s   1961: Unruh elected speaker   1964: SC ends “federal system” in Senate       Shifts power from rural area...
1980s & Willie Brown                 Flow of legislative                  campaign money                  escalated      ...
Reform & Expansion   Increased growth of lobbyists as CA shifted    to postindustrial economy       Medical care, high t...
Ch. 2: Who Hires Lobbyists?               Potential every day for                serious consequences of                d...
Government Lobbyists   Proposition 13 made the state the primary    source of funds for local agencies       Cities and ...
Health Care Lobbyists   Health care is now California’s largest    single industry, leading to turf wars and    struggles...
How much does it cost?   http://cal-access.sos.ca.gov/Lobbying/   PG&E spent $2 million in 2009-2010       http://cal-a...
Who are these lobbyists?   Former elected officials & legislative    staffers       Expertise and personal contacts    ...
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The third house, chapters 1 and 2

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The third house, chapters 1 and 2

  1. 1. The Third House:Lobbyists, Money, and Power in SacramentoJay Michael and Dan Walters, with Dan Weintraub
  2. 2. Ch. 1: Who are these people? Lobbyists are a key player in the “three- legged stool” of effective political action:  Money  Grassroots Action  Lobbying Expertise These interact to generate policy success
  3. 3. Lobbyist Power Thousands of interest groups are affected by state decisions every day Lobbyists represent affected groups, working to craft legislation and regulations that benefit their clients  “Cream of the crop” of elite lobbyists calls the shots on most government decisions
  4. 4. Southern Pacific Monopoly on transportation by Southern Pacific Railroad in the late 19th century led to reforms of 1911  Public Utilities Commission  Direct Democracy
  5. 5. 1930s growth of state government Transformation from agrarian to manufacturing economy  Motion pictures  Oil Expansion of New Deal policies Artie Samish and the “select and elect” system
  6. 6. Artie Samish The Secret Boss of California pushed regulations that protected his clients from competition and/or ensured their ability to set prices (e.g. “fair trade” liquor laws)
  7. 7. 1940s-50s: Two Capitols? Samish focused on minute but lucrative issues affecting his clients Governor Earl Warren and legislators took the high road on major issues such as highways, colleges, parks and government services
  8. 8. Still Two Capitols? Most people know that California state legislators are making big decisions on major issues such as the budget, taxes, and high-speed rail They are also making decisions on minor issues such as pet microchips, the sale of shark fins, surface mining and outdoor advertising
  9. 9. Jesse Unruh Unruh took control of the “select and elect” system and brought it inside  Legislative leaders now decided how the money was collected and spent
  10. 10. 1960s-1980s 1961: Unruh elected speaker 1964: SC ends “federal system” in Senate  Shifts power from rural areas to cities 1966: Legislature made full-time and professional Increasing centralization and control under Unruh and then Willie Brown (1980)
  11. 11. 1980s & Willie Brown  Flow of legislative campaign money escalated  Intense pressure on lobbyists to contribute  Issues kept alive year after year to milk system  Booted using term limits
  12. 12. Reform & Expansion Increased growth of lobbyists as CA shifted to postindustrial economy  Medical care, high tech Prop 13 Regulatory Activism
  13. 13. Ch. 2: Who Hires Lobbyists?  Potential every day for serious consequences of decisions made in the Capitol  “Mushroom Bills”  Blatant grabs for power, money, or both that can only be enacted if virtually no one knows they exist
  14. 14. Government Lobbyists Proposition 13 made the state the primary source of funds for local agencies  Cities and Counties  School Boards Foreign governments Indian tribes
  15. 15. Health Care Lobbyists Health care is now California’s largest single industry, leading to turf wars and struggles between providers and lawyers  The Ankle War (podiatrists vs. orthopedic surgeons)  Dog Teeth (veterinarians vs. dog groomers)  Colonics (doctors and clinics)
  16. 16. How much does it cost? http://cal-access.sos.ca.gov/Lobbying/ PG&E spent $2 million in 2009-2010  http://cal-access.sos.ca.gov/Lobbying/Employers/Detail.aspx?id=1146888&view=activity&session=2009 Atherton spent $58K, trying to influence the high speed rail issue  http://cal-access.sos.ca.gov/Lobbying/Employers/Detail.aspx?id=1325474&view=activity&session=2009 Google spent $400,000 on tax issues, internet policies, and telephone number privacy  http://cal-access.sos.ca.gov/Lobbying/Employers/Detail.aspx?id=1265187&view=activity&session=2009
  17. 17. Who are these lobbyists? Former elected officials & legislative staffers  Expertise and personal contacts  One-year ban on “revolving door” not a serious impediment Former political campaign aids Goo-goos

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