BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2523 (Mullin) - Local elective offices:  contribution  
          limitations
          
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          |Version: June 14, 2016          |Policy Vote: E. & C.A. 4 - 1    |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Robert Ingenito     |
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          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  
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          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  
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          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  
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          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. 


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