As California moves forward with new election protections, NBC Palm Springs turned to legal expert Walter Clark to explain what Senate Bill 398 actually changes and why it matters.
The bill, passed unanimously in the California Senate, targets a legal gray area that allowed Elon Musk and his super PAC to give away $1 million a day to voters in swing states ahead of the 2024 election. Musk wasn’t paying people to vote directly but instead held prize drawings for those signing petitions linked to specific political issues—effectively skirting existing laws.
“The loophole is a way of getting around the law,” Clark explained. “Instead of voting for a candidate, they’re signing petitions about issues that support the candidate. It’s clearly subterfuge.”
Clark said while the tactic doesn’t violate the letter of federal election laws, it violates the spirit, allowing wealthy donors to tilt the playing field. “It doesn’t pass the smell test,” Clark added. “It tends to erode public trust in the whole democratic system. It damages democracy.”
Senate Bill 398 makes it illegal in California to offer prize drawings or cash rewards tied to voter registration or participation. Violators could face up to five years in prison and a $10,000 fine.
Clark pointed out that this issue is rooted in past Supreme Court rulings. The 1976 Buckley v. Valeo decision struck down campaign spending limits on free speech grounds. The 2010 Citizens United decision expanded those protections to corporations, allowing unlimited corporate election spending.
“Corporations are being treated as people,” Clark said. “But you don’t see corporations going to jail. They get tax breaks. They get results from putting big money into elections. And that’s where we are.”
Clark also noted that while California’s new law has bipartisan support, it’s uncertain how far it will hold up federally. “Whether the Supreme Court will sustain that law, we just don’t know. They’ve made some strange decisions.”
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By: Fred Roggin
July 10, 2025
