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    
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          |Author:    |Mullin                                               |
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          |Version:   |6/14/16                                              |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Darren Chesin                                        |
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             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  







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            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  








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            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 local   government 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  








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               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  








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          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  








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          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.









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                               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
           
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          |Assembly Floor:                       |51 - 26                    |
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          |Assembly Appropriations Committee:    |14 - 5                     |
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          |Assembly Elections and Redistricting  |  5 - 2                    |
          |Committee:                            |                           |
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          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


                                          
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