BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2523 (Mullin) - As Amended April 19, 2016


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          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  








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            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  








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          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  








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            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















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