BILL ANALYSIS Ó SENATE COMMITTEE ON ELECTIONS AND CONSTITUTIONAL AMENDMENTS Senator Ben Allen, Chair 2015 - 2016 Regular Bill No: AB 2523 Hearing Date: 6/21/16 ----------------------------------------------------------------- |Author: |Mullin | |-----------+-----------------------------------------------------| |Version: |6/14/16 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Darren Chesin | | | | ----------------------------------------------------------------- Subject: Local elective offices: contribution limitations DIGEST 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 a local jurisdiction establishes its own limits. ANALYSIS Existing law: 1)Permits a county, city, special district, or school district to limit campaign contributions in local elections. 2)Creates the Fair Political Practices Commission (FPPC), and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA). 3)Requires any local government agency that has enacted, enacts, amends, or repeals an ordinance or other provision of law affecting campaign contributions and expenditures to file a copy of the action with the FPPC. 4)Prohibits a local government agency from enacting a campaign finance ordinance that imposes campaign reporting requirements that are additional to or different from those set forth in the PRA for elections held in its jurisdiction unless the AB 2523 (Mullin) Page 2 of ? additional or different requirements apply only to the candidates seeking election in that jurisdiction, their controlled committees or committees formed or existing primarily to support or oppose their candidacies, and to committees formed or existing primarily to support or oppose a candidate or to support or oppose the qualification or passage of a local ballot measure which is being voted on only in that jurisdiction, and to city or county general purpose committees active only in that city or county, respectively. 5)Provides that nothing in the PRA shall nullify contribution limitations or prohibitions of any local jurisdiction that apply to elections for local elective office, except that these limitations and prohibitions may not conflict with a specified provision of the PRA dealing with "member communications." 6)Prohibits a person, other than a small contributor committee or political party committee, from making any contribution totaling more than $4,200 to any candidate for elective state office other than statewide elective office, and prohibits candidates from accepting a contribution that exceeds that amount. Requires the FPPC to adjust this limit in January of every odd-numbered year to reflect any increase or decrease in the Consumer Price Index, and requires those adjustments to be rounded to the nearest $100. This bill: 1)Prohibits, commencing January 1, 2018, a person from making to a candidate for local elective office, and would prohibit a candidate for local elective office from accepting from a person, a contribution totaling more than the amount set forth for limitations on contributions to a candidate for specified elective state office (currently $4,200) as that amount is adjusted periodically by the FPPC. 2)Provides that a contribution shall not be deemed received for purposes of this bill if it is returned to the contributor within 14 days of receipt and further provides that this limitation does not apply to a candidate's contributions of his or her personal funds to his or her own campaign. 3)Authorizes a county, city, special district, or school AB 2523 (Mullin) Page 3 of ? district to impose a limitation that is different from, and in lieu of, the limitation imposed by this bill. That limitation may also be imposed by means of a local initiative measure. 4)Authorizes a local government that imposes a limitation that is different from the limitation imposed by this bill to adopt enforcement standards for a violation of the limitation imposed by the localgovernment agency, including administrative, civil, or criminal penalties. 5)Provides that a local government agency may not impose additional requirements on a person if the requirements prevent the person from complying with other existing provisions of the PRA. 6)Adds the contribution limitation imposed by this bill to the PRA, thereby making a violation of the limitation punishable pursuant to existing administrative, civil, or criminal penalties provided for in the PRA. However, the bill would specify that a violation of a limitation imposed by a local government is not subject to the PRA's enforcement provisions. 7)Makes the following findings and declarations: a) Most states impose limitations on contributions to candidates for local elective offices. California is among the minority of states without these contribution limitations. b) Most local governments in this state have not independently imposed limitations on contributions to candidates for local elective offices. c) In local jurisdictions in this state that have not imposed limitations on contributions, candidates for local elective offices often receive contributions that would exceed the limitations for a state Senate campaign, even though most local jurisdictions contain far fewer people than the average state Senate district. d) In local jurisdictions in this state that have not imposed limitations on contributions, candidates for local elective office sometimes raise 40 percent or more of their AB 2523 (Mullin) Page 4 of ? total campaign funds from a single contributor. e) A system allowing unlimited contributions to a candidate for local elective office creates the risk and the perception that local elected officials are beholden to their contributors and will act in the best interest of those contributors at the expense of the people. f) This state has a statewide interest in preventing actual corruption and the appearance of corruption at all levels of state government. g) This act establishes a limitation on contributions to a candidate for local elective office in a jurisdiction in which the local government has not established a limitation. However, a local government may establish a different limitation that is more precisely tailored to the needs of its communities. 1)Makes other conforming changes. BACKGROUND Existing State Contribution Limits . The existing contribution limits that apply to candidates for elective state office were enacted via Proposition 34 on the November, 2000 ballot through passage of SB 1223 (Burton, Chapter 102, Statutes of 2000). While Proposition 34 established new campaign contribution limits for elections to state office, it did not contain contribution limits for elections to local office. The limits on contributions by individuals contained in Proposition 34 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 does not impose limits on contributions to candidates for local office. Local Campaign Ordinances . Under existing law, local government agencies have the ability to adopt campaign ordinances that AB 2523 (Mullin) Page 5 of ? apply to elections within their jurisdictions, though the PRA imposes certain limited restrictions on those local ordinances. For instance, SB 726 (McCorquodale, Chapter 1456, Statutes of 1985), limited the ability of local jurisdictions to impose campaign filing requirements that differed from those in the PRA, while AB 1430 (Garrick, Chapter 708, Statutes of 2007), prohibits local governments from adopting rules governing member communications that are different than the rules that govern member communications at the state level. Aside from these restrictions, however, local government agencies generally have a significant amount of latitude when developing local campaign finance ordinances that apply to elections in those agencies' jurisdictions. Any 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. The campaign ordinances adopted by local governments in California vary significantly in terms of their scope. Some local ordinances are very limited in scope, while others are much more extensive. 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. In many cases, local campaign finance ordinances are enforced by the district attorney of the county or by the city attorney. In at least a few cases, however, local jurisdictions have set up independent boards or commissions to enforce the local campaign finance laws. According to a recent report prepared by California Common Cause, approximately 23 percent of cities and 28 percent of counties in the state have adopted local campaign contribution limits. Of the 124 local jurisdictions identified in the report as having adopted local campaign contribution limits, only one (Alameda County) has a contribution limit that is higher than the $4,200 per election limit that would be imposed by this bill. More than 90 percent of the cities that have adopted contribution limits have limits of $1,000 or less. By contrast, about half of the counties that adopted contribution limits have AB 2523 (Mullin) Page 6 of ? limits of $1,000 or less. COMMENTS According to the author : Currently, there is no state standard of limits on campaign contributions for candidates running for local office. This means that those local jurisdictions that have not adopted limits independently currently have no limit on the amount of money local candidates can accept. This opens the potential for the corrupting influence of money. 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. Thirty-four other states have enacted a statewide limit for local campaign contributions. California should be among them. According to a recent study by Common Cause, only 25 percent of cities and 30 percent of counties have established contribution limits. The percentage of districts with limits is much lower. Most jurisdictions have enacted no limits whatsoever; in these jurisdictions, contributors can give unlimited amounts to candidates for office. In the past few election cycles, there have been numerous examples of candidates running for local office receiving $20,000, $50,000, or even $90,000 contributions. In some cases, more than 50 percent of a candidate's campaign funds may come from just one or two contributors. Contributions of this magnitude harm public trust in the democratic process by deepening the perception or the possibility that candidates will be more responsive to their financial backers than their constituents. AB 2523 (Mullin) Page 7 of ? RELATED/PRIOR LEGISLATION SB 1223 (Burton, Chapter 102, Statutes of 2000), placed Proposition 34 on the November, 2000 ballot which enacted the existing contribution limits that apply to candidates for elective state office. PRIOR ACTION ------------------------------------------------------------------ |Assembly Floor: |51 - 26 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |14 - 5 | |--------------------------------------+---------------------------| |Assembly Elections and Redistricting | 5 - 2 | |Committee: | | ------------------------------------------------------------------ POSITIONS Sponsor: California Common Cause Support: California Clean Money Campaign League of Women Voters of California Money Out, Voters In (MOVI) San Francisco Bay Area Rapid Transit District (BART) Oppose:Fair Political Practices Commission Madera County Board of Supervisors -- END --