BILL ANALYSIS Ó AB 2523 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2523 (Mullin) - As Amended April 19, 2016 ----------------------------------------------------------------- |Policy |Elections and Redistricting |Vote:|5 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill establishes a campaign contribution limit for local offices at the same level as for Senate and Assembly candidates, unless a local jurisdiction adopts its own limits. Specifically, this bill: 1)Prohibits a person from contributing to a candidate for local AB 2523 Page 2 elective office, and prohibits a candidate for local elective office from accepting from a person, a contribution totaling more than the limit on contributions to candidates for state Senate and Assembly from persons other than small contributor committees and political party committees, as inflation-adjusted by the Fair Political Practices Commission (FPPC) pursuant to current law. The current limit under this provision is $4,200 per contributor per election. 2)Provides that a violation of the contribution limits in (1) is punishable by a civil fine of up to $5,000 or three times the amount that was contributed or accepted in excess of the contribution limit, whichever is greater, and provides that a knowing and willful violation of the contribution limits is a misdemeanor. The district attorney of the county in which the violation occurs would be responsible for enforcing these civil and criminal penalties. 3)Permits a local jurisdiction, by ordinance, resolution or initiative, to impose a limitation on contributions to candidates for local elective office which shall take precedence over the limits otherwise imposed by (1), and allows the local government to adopt enforcement standards for a violation of that limit, including administrative, civil, or criminal penalties. FISCAL EFFECT: Given that most local entities have not adopted their own campaign contribution limits, this bill will, at least initially, apply broadly to most counties, cities, special districts and school districts. Though enforcement of the contribution limits-a nonreimbursable cost-will be by district AB 2523 Page 3 attorneys, this bill will nonetheless increase the FPPC's workload. According to the commission, the existence of contribution limits tends to be associated with an increase in independent expenditures and an increase in laundering of campaign contributions, activities governed by the Political Reform Act. The FPPC will require three positions at an annual General Fund cost of $350,000 to amend manuals and instructions, respond to a large number of advice requests, and conduct additional investigations and enforcement. As stated above, there will be nonreimbursable costs to counties for enforcement, offset to some extent by fine revenue. COMMENTS: 1)Background. Proposition 34 was passed by the voters in the November 2000 general election after being placed on the ballot through passage of SB 1223 (Burton), Chapter 102, Statutes of 2000. This proposition revised state laws on political campaigns for state elective offices and ballot propositions, including placing new campaign contribution limits for elections to state office. These limits ranged from $3,000 (for candidates for Assembly and Senate) to $20,000 per election (for candidates for Governor), and are required to be adjusted for inflation every two years. For 2015 and 2016, these limits range from $4,200 per election for candidates for Assembly and Senate to $28,200 for candidates for Governor. While local governments have the authority to adopt contribution limits for elections to local offices in their jurisdictions, state law (and Proposition 34) does not impose limits on contributions to candidates for local office. Any AB 2523 Page 4 jurisdiction that adopts or amends a local campaign finance ordinance is required to file a copy of that ordinance with the FPPC, and the FPPC posts those ordinances on its website. The FPPC's website currently includes campaign finance ordinances from 19 counties, 141 cities, and one special district. 2)Purpose. According to the author, "Ensuring the integrity of our elections process should be a priority, and more money should not equal more representation, even at the lowest level of elected office. Local elected officials often have the most direct influence on the governance, and California needs a standard in place to ensure that local candidates are not overly reliant upon a select few wealthy donors. "AB 2523 establishes a standard $4,200 limit on campaign contributions to candidates running for local elected office in jurisdictions that have not adopted their own contribution limits. By establishing a reasonable cap to prevent excessive contributions in jurisdictions that have no limits and simultaneously maintaining and encouraging local jurisdictions' ability to enact their own contribution limits tailored to the needs of their communities, this measure safeguards our democracy down to the local level." Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 2523 Page 5