BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2523 (Mullin) - Local elective offices: contribution limitations ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 14, 2016 |Policy Vote: E. & C.A. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2523 would establish campaign contribution limits for local office at the same level as the limit on contributions from individuals to candidates for Senate and Assembly ($4,200), except where a local jurisdiction establishes its own limits. Fiscal Impact: The Fair Political Practices Commission (FPPC) indicates that it would incur first-year costs of $1.1 million, and ongoing costs of $1 million to implement the provisions of the bill (General Fund). Counties would incur nonreimbursable enforcement costs, offset to some extent by fine revenue. Background: Current law (Proposition 34) imposes campaign contribution limits for elections to state office. The limits on AB 2523 (Mullin) Page 1 of ? contributions by individuals initially ranged from $3,000 (for candidates for Assembly and Senate) to $20,000 (for candidates for Governor) per election, and are required to be adjusted for inflation every two years. For 2015 and 2016, these limits range from $4,200 to $28,200, respectively. 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. Thus, 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 FPPC, which posts those ordinances to its internet site. 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, 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 instances, 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. A recent report prepared by California Common Cause indicates that about 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 limits of $1,000 or less. AB 2523 (Mullin) Page 2 of ? Proposed Law: This bill would, among other things, do the following: Prohibit, 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. Authorize a county, city, special district, or school 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. Authorize 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. Add 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. Specify that FPPC is not responsible for the administration or enforcement of a contribution limits adopted by a local government that is different from the limits imposed on state elective offices. AB 2523 (Mullin) Page 3 of ? Related 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. Staff Comments: As noted earlier, FPPC estimates that, based on prior experience with similar workload related to San Bernardino County, the bill would result in first-year costs of $1.074 million, and $1.018 million in the out years to administer the bill. This cost reflects eight new positions, and the following additional workload resulting from the bill: reviewing and responding to email and telephone requests for advice, posting local ordinances on its internet site, training, outreach and educational activities, updating existing manuals, implementing regulations and providing advice and counsel. -- END --