BILL ANALYSIS Ó
AB 2523
Page 1
ASSEMBLY THIRD READING
AB
2523 (Mullin)
As Amended May 31, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Elections |5-2 |Weber, Gordon, Low, |Harper, Travis |
| | |Mullin, Nazarian |Allen |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |14-5 |Gonzalez, Bloom, |Bigelow, Gallagher, |
| | |Bonilla, Bonta, |Jones, Obernolte, |
| | |Calderon, Daly, |Wagner |
| | |Eggman, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Establishes campaign contribution limits for local
office at the same level as the limit on contributions from
individuals to candidates for Senate and Assembly, except where
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a local jurisdiction establishes its own limits, effective
January 1, 2018. Specifically, this bill:
1)Prohibits a person from making to a candidate for local
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 adjusted by the
Fair Political Practices Commission (FPPC), as specified. The
current limit under this provision is $4,200 per contributor
per election.
2)Permits a local government, by ordinance or resolution, to
impose a limitation on contributions to candidates for local
elective office which shall take precedence over the limits
otherwise imposed by this bill, and allows the local
government to adopt enforcement standards for violations.
Permits the limitation to be imposed by a local initiative
measure.
3)Provides that a violation of the contribution limits
established by this bill 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. Provides that a knowing and willful violation of the
contribution limits is a misdemeanor. Makes the district
attorney (DA) of the county in which the contribution is
required to be reported by the candidate responsible for
enforcing these civil and criminal penalties. Requires the
Attorney General to enforce these penalties if the candidate
who violated the contribution limits is the DA or a candidate
for DA.
4)Provides that whether a violation of the contribution limits
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imposed by this bill is inadvertent, negligent, or deliberate,
and the presence or absence of good faith, shall be considered
in applying penalties. Requires an enforcement action to be
commenced within four years after the date on which the
violation occurred.
5)Defines various terms for the purposes of this bill such that
those terms generally have the same or similar meanings as
those terms are defined in the Political Reform Act (PRA).
FISCAL EFFECT: According to the Assembly Appropriations
Committee, 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 attorneys, this bill will nonetheless increase the
FPPC's workload. According to the FPPC, 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 PRA. 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: According to the author, "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
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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.
Thirty-four other states have enacted a statewide limit for
local campaign contributions. California should be among them."
Under existing law, local government agencies have the ability
to adopt campaign ordinances that apply to elections within
their jurisdictions, though the PRA imposes certain limited
restrictions on those local ordinances. The campaign ordinances
adopted by local governments in California vary significantly in
terms of their scope. In some cases, the ordinances include
campaign contribution limits, reporting and disclosure
requirements that supplement the requirements of the PRA,
temporal restrictions on when campaign funds may be raised, and
voluntary public financing of local campaigns, among other
provisions.
With a few limited exceptions, provisions of state law
regulating campaign finance generally are found within the PRA,
and the FPPC has the primary responsibility for administering
and enforcing those provisions. Given the FPPC's role as the
primary entity responsible for administering, interpreting, and
enforcing the state's campaign finance laws, it could be argued
that a state law imposing local campaign contribution limits
should be enforced by the FPPC.
Even if the FPPC does not enforce the default contribution
limits, this bill nonetheless likely will increase the FPPC's
workload. The existence of contribution limits tends to be
associated with an increase in independent expenditures, and
attempts to circumvent contribution limits could result in an
increase in laundering of campaign contributions. Because laws
governing independent expenditures and the laundering of
campaign contributions are contained in the PRA, the FPPC would
have jurisdiction and enforcement authority over these matters
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even if it does not enforce the contribution limits imposed by
this bill.
Please see the policy committee analysis for a full discussion
of this bill.
Analysis Prepared by:
Ethan Jones / E. & R. / (916) 319-2094 FN:
0003126