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HomeMy WebLinkAboutMINUTES - 12101996 - C.9 i - �-� C I i ORDINANCE NO. 96.48 (Amendments to conform Campaign Spending Reform Ordinance to Proposition 208) I The Contra Costa County Board of Supervisors ordains as follows (omitting the parenthetical footnotes from the official text of the lenacted or amended provisions of the County Ordinance Code). I I - SECTION I. SUI JAMY. This ordinance repeals the debt retirement cycle and the Fair Campaign Pledge. As to candidates for supervisorial office, this ordinance modifies the contribution limits and loan limits and deletes references to election cycles, broad.based political committees, and recall candidates for consistency with Proposition 208. This ordinance imposes contribution limits for small contributor committees; provides for increases in the voluntary expenditure ceiling in specified circumstances; and requires notifications by candidates who do not adopt the ceiling. I i SECTION II. Sections 530-2.407 "Contributions to committees making independent expenditures," 530-2.602 "Pledge," 530-2.603 "Exemptions from campaign expenditure limit," 530-2.604 "Voluntary Pledge," 530-:2.606 "Filing," 530-2.608 "Clerk's duties," 530-2.708 "Separate and special election cycles," 530-2.709"Fair Campaign Pledge, and 530-2.711 "Debt Retirement" are hereby repealed. I SECTION III. Section 530-2.215 is added to read: I I 530-2.215. Small Contributor Committee. "Small contributor committee" shall have the same meaning as Government Code section 85203. It means any committee which meets all of the following criteria: it has a membership of at least 100 individuals; all the contributions it receives from any person in a calendar year total fifty dollars or less; it has been in existence for at least six months; it is not a candidate controlled committee. (Ord. 96,48§3.) i SECTION IV. Section 530-2.702 is amended to read: i 530-2.702 Application. I (a) This Article applies only to candidates for the office of County Supervisor. Unless otherwise specified, "candidate" includes recall candidates. "Recall candidates" means those candidates who are running to replace an incumbent Supervisor who is the subject of a ballot measure calling for his or her recall. I (b) Ordinance Code sections 530-2.402, 530-2.403, 530-2.404, 530-2.405 and 530-2.603 shall not apply to candidates for the office of County Supervisor. I i' I I I 1 I I i I I i i (c) To the extent that there is any conflict between the provisions of this article and the other provisions of Chapter 530-2, the provisions of this article shall prevail as to campaigns for the office of County Supervisor. (Ords. 96 ,8§ 4; 95-8.) SECTION V. Section 530-2.703 is amended to read: 530-2.703 Individual campaign contributions. (a)For a single election, no person or political committee(other than the candidate or a small contributor committee) shall make, and no candidate or campaign treasurer shall accept, any contribution to or for a single candidate for County Supervisor or to or for a committee authorized in writing by the candidate to accept contributions to him or her, which will cause the total amount contributed by that person or political committee in support of that candidate for that election to exceed one hundred dollars($100), except as provided in subparagraph (b). (b)For candidates who adopt the voluntary expenditure ceiling defined in section 530- 2.707, for a single county election, no person or political committee (other than the candidate or a small contributor committee) shall make, and no candidate or campaign treasurer shall accept, any contribution to or for a single candidate for County Supervisor or to or for a committee authorized in writing by the candidate to accept contributions to him or her, which will cause the total amount contributed by that person or political committee in support of that candidate for that election to exceed five hundred dollars($500). (Ords. 96-48§ 5; 95-8 .) I I SECTION VI. Section 530-2.704;is amended to read: ' I 530-2.704 Small contributor committee campaign contributions. (a) For a single county election, no small contributor committee shall make, and no candidate or campaign treasurer shall accept, any contribution to or for a.,single candidate for County Supervisor or to or for a committee authorized in writing by the candidate to accept contributions to him or her, which will cause the total amount contributed by such small contributor committee in support of that candidate for that election to exceed two hundred dollars ($200), except as provided in subparagraph (b). (b)For candidates who adopt the voluntary expenditure ceiling defined in section 530- 2.707, for a single county election; no small contributor committee shall make, and no candidate or campaign treasurer shall accept, any contribution to or for a single candidate for County Supervisor or to or for a committee authorized in writing by the candidate to accept contributions to him or her, which will cause the total amount contributed by such small contributor committee in support of that candidate for that election to exceed one thousand dollars($1,000). (Ords. 96-48§ 6; 95-8.) 2 i i SECTION VII. Section 530-2.705 is amended to read: 1 530-2.705 Return of excess contributions. If for any reason the contribution limits set forth in Section 530-2.703 and 530-2.704 have been exceeded, the candidate, or campaign treasurer may within thirty days after receipt, return the excess amount of the contribution to the contributor without penalty. (Ords. 96-48§7; 95-8.) SECTION VIII. Section 530-2.706 is amended to read: 530-2.706 Limitation on pe rsonal loans. (a)For a single county election, no candidate shall lend to his or her campaign or controlled committee any amount inlexcess of five thousand dollars($5,000) except as provided in subparagraph (b)below. (b)For candidates who adopt the voluntary expenditure ceiling defined in section 530- 2.707, for a single county election, the candidate shall not lend to his or her campaign or controlled committee any amount in excess of twenty thousand dollars($20,000). (Ords. 96.48§ 8; 95-8.) SECTION IX. Section 530-2.707 is amended to read: I 530-2.707 Voluntary expenditure limits. (a) Statement accepting expenditure ceiling. All candidates who adopt the expenditure ceiling specified in subsection (c) may accept contributions in the amounts specified in section 530-2.703, subsection(b) and section 530-2.704, subsection (b). All candidates who adopt the expenditure ceiling specified in subsection (c) may loan their campaigns money up to the amount specified in section 530-2.706, subsection (b). Before accepting any contributions or making any loans within the amounts specified in sections 530-2.703, subsection(b), 530-2.704, subsection (b), and 530-2.706, subsection (b), a candidate for a primary, general, or recall election must file with the County Clerk-election division a statement, signed under penalty of perjury, which states that the candidate adopts the expeiditure ceiling specified in subsection(c)below. (b) Time for filing statement adopting expenditure ceiling. The statement may be filed by a candidate, other than a recall candidate, at any time after that date which is twelve months before the date of the primary elect-ion for the office and until such time as the candidate files his or her declaration of candidacy. In the event the candidate is not elected to office in the primary election, enters the runoff election,I and wishes to adopt the expenditure ceiling for the general election, the candidate must file a separate statement. Such statement may be filed at any time 3 I C .9 after the primary election results are final until thirty days prior to the general election. A recall candidate may file the statement adopting the expenditure ceiling at any time after the date the recall measure is certified for the ballot until thirty days before the recall election. (c)Amount of expenditure(ceiling. For an election, candidates who agree to accept the voluntary expenditure ceiling shall not incur campaign expenditures exceeding eighty thousand dollars($80,000), except as set forty in subsections (d), (e) and (f)below. (d) Contributions from individuals. For an election, a candidate who accepts the voluntary expenditure ceiling and who raises twenty percent of the amount of that ceiling in contributions of one hundred dollars'($100) or less from individuals residing in the supervisorial district in which the candidate stands for election, may incur ten thousand dollars ($10,000)in campaign expenditures in addition to that amount permitted in subsection (c). (e) Candidate whose opponent does not adopt ceiling. For an election, for a candidate who accepts the voluntary expenditure ceiling and whose opponent or opponents do not accept the expenditure ceiling, the amount of the voluntary expenditure ceiling specified in subsection (c) shall increase by ten thousand dollar's($10,000) each time the opponent or opponents not accepting the ceiling either receive cumulative contributions of ten thousand dollars ($10,000) or make cumulative expenditures often thousand dollars ($10,000.) For purposes of determining whether the ten thousand dollar threshold for cumulative contributions is reached, the contributions received by all opponents not accepting the limits shall be added together. For purposes of determining whether the ten thousand dollar threshold for cumulative expenditures is reached, the expenditures of all such opponents shall be added together. To be eligible for a ten thousand dollar increase in the ceiling, the candidate must have received disclosures pursuant to subsection (i) which show either cumulative contributions of ten thousand dollars($10,000) received by an opponent or opponents who did not accept the ceiling or cumulative expenditures of ten thousand dollars ($10,000)by such opponent or opponents. Each subsequent increase in the ceiling must be based on amounts disclosed pursuant to subsection(i) which were not counted for purposes of any previous increase in the ceiling. (f)Independent expendit Tres against candidate or on behalf of candidate's opponent. For an election, for a candidate who accepts the voluntary expenditure ceiling, the amount of the voluntary expenditure ceiling specified in subsection(c) shall increase by ten thousand dollars($10,000) each time a committee or committees make independent expenditures opposing the candidate or supporting his or her opponent(s) in the cumulative amount of ten thousand dollars ($10,000) or receive cumulative contributions in the amount of ten thousand dollars ($10,000.) For purposes of determining whether the ten thousand dollar threshold for cumulative contributions is reached, the contributions received by all committees making independent expenditures for or against a candidate shall be added together. For purposes of determining whether the ten thousand dollar threshold for cumulative independent expenditures is reached, the independent expenditures of all such committees shall be added together. To be eligible for a ten thousand dollar increase in the ceiling, the candidate must have received 4 disclosures pursuant to subsection 0)which show either cumulative contributions of ten thousand dollars ($10,000) received by the committee or committees, or cumulative independent expenditures of ten thousand dollars ($10,000)by the committee or committees. Each subsequent ten thousand dollar increase in the ceiling must be based on amounts disclosed pursuant to subsection 0) which were not counted for purposes of any previous increase in the ceiling. (g)Notwithstanding subsections(d), (e) and (f), the amount of the voluntary expenditure ceiling shall not exceed one hundred and sixty thousand dollars ($160,000) in any event. (h) Notification by candidate who exceeds ceiling. A candidate, other than a candidate who has accepted the voluntary expenditure ceiling and has qualified to incur additional campaign expenditures as specified in subsections(d), (e) or(f), who receives aggregate contributions exceeding the amount of the expenditure ceiling specified in subsection (c) shall notify the County Clerk-election division both by telephone and guaranteed overnight mail on the day such contributions exceeding that amount are received. A candidate, other than a candidate who has accepted the voluntary expenditure ceiling and has qualified to incur additional campaign expenditures as specified in subsections (d), (e) or(f), who makes aggregate expenditures exceeding the amount of the expenditure ceiling specified in subsection (c) shall notify the County Clerk-election division both by telephone and guaranteed overnight mail on the day such expenditures exceeding that amount are made. A candidate who has accepted the voluntary expenditure ceiling and has qualified to incur additional campaign expenditures as specified in subsections(d), (e), or(f), who receives aggregate contributions exceeding the amount of the respective ceiling specified in subsections(d), (e), or(f) shall notify the County Clerk-election division both by telephone and guaranteed overnight mail on the day such contributions exceeding that amount are received. A candidate who has accepted the voluntary expenditure ceiling and has qualified to incur additional campaign expenditures as specified in subsections(d), (e) or(f), who makes aggregate expenditures exceeding the amount of the respective ceiling specified in subsections (d), (e) or(f) shall notify the County Clerk-election division both by telephone and guaranteed overnight mail on the day such expenditures exceeding that amount are made. If the day on which notice is required is not a business day, notice shall be given on the next business day. (i) Notification by candidate who has not adopted voluntary expenditure ceiling. During the period which is more than twenty(20) days prior to the election, a candidate who has not adopted the voluntary expenditure ceiling shall notify the County Clerk-election division and all opponents running for the same seat, within 72 hours whenever the candidate has either received cumulative contributions,I or made cumulative expenditures of ten thousand dollars ($10,000), twenty thousand dollars($20,000), thirty thousand dollars($30,000) and so on in multiples of ten thousand. The notification shall state either that the candidate has received cumulative contributions, or has made cumulative expenditures of ten thousand dollars ($10,000) and so on in multiples of ten thousand. During the period which is twenty days or less before the election, a candidate who has not adopted the voluntary expenditure ceiling shall notify the I 5 i i C .9 County Clerk-election division and all opponents running for the same seat, within 24 hours whenever the candidate has either received cumulative contributions, or made cumulative expenditures of three thousand dollars ($3,000), six thousand dollars ($6,000), nine thousand dollars($9,000) and so on in multiples of three thousand. The notification shall state that the candidate either has received cumulative contributions, or has made cumulative contributions of three thousand dollars ($3,000) and so on in multiples of three thousand. Whenever the candidate has either received contribIutions or made expenditures in a threshold amount ($10,000 or$3,000), the candidate shall disclose the item(either contributions or expenditures) for which the threshold was reached, but not the other item. When the same threshold is reached for the item not disclosed, the candidate shall not have to disclose that item. All notifications shall be made by facsimile transmission or guaranteed overnight mail. (j) Notification by committee making independent expenditures. During the period which is more than twenty(20) days prior to the election, any committee which makes independent expenditures in support of or in opposition to any candidate for supervisorial office shall notify the County Clerk-election division and all candidates running for the same seat, within 72 hours whenever the committee Lias either received cumulative contributions, or made cumulative expenditures of ten thousand dollars ($10,000), twenty thousand dollars ($20,000), thirty thousand dollars($30,000) and so on in multiples of ten thousand. The notification shall state either that the committee has received cumulative contributions, or has made cumulative expenditures of ten thousand dollars($10,000) and so on in multiples of ten thousand. During the period which is twenty days or less before the election, a committee making independent expenditures for or against supervisorial candidates shall notify the County Clerk-election division and all candidates running for the same seat, within 24 hours whenever the committee has either received cumulative contributions, or made cumulative expenditures of three thousand dollars ($3,000), six thousand dollars ($6,000), nine thousand dollars ($9,000) and so on in multiples of three thousand dollars($3,000.). The notification shall state that the committee either has received cumulative contributions, or has made cumulative contributions of three thousand dollars ($3,000) and soon in multiples of three thousand. Whenever the committee has either received contributions or made expenditures in a threshold amount ($10,000 or $3,000), the committee shall disclose the item(either contributions or expenditures) for which the threshold was reached, but not the other item. When the same threshold is reached for the item not disclosed, the committee shall not have to disclose that item. For purposes of this subsection, "cumulative contributions" as used herein means all contributions received as to any supervisorial candidate. As used in this subsection, "cumulative expenditures" means all expenditures made as to any supervisorial candidate. All notifications shall be made by facsimile transmission or guaranteed overnight mail. (k) Exclusions. For purposes of this Article, expenditures (see California Government Code section 82025) subject to the expenditure ceiling do not include: (1) expenditures for' campaigns for other offices; (2) expenditures for campaigns fbr the office of Supervisor which occurred prior 6 to the effective date of this ordinance; (3) expenditures for office holder expenses. "Office holder expenses" means those expenditures arising out of the office holder's official duties which directly assist the office holder in performing his official duties, or which directly relate to a governmental,purpose. "Office holder expenses" include but are not limited to, (a) donations to charitable organizations; (b) the cost of tickets to political events; (c)the cost of postage, office supplies, stationary and similar expenses related to the conduct or performance of the office holder's governmental duties; (d) reasonable expenses for travel to conferences, seminars, educational events and similar activities related to the office holder's position; (e) the cost of books or publications reasonably related to the office holder's position; (f) litigation expenses related to the office holder's actions as a supervisor. The expenses listed in items (a) through (f) shall not be considered "office holder expenses" if they are used in connection with any office holder's campaign for a future term of office as a Supervisor. (4) Repayment of debt itself during the ninety day period following the election. (1) ex Ado tion of enditurl ceilingirrevocable. A candidate who adopts the P P expenditure ceiling for a particular pprimary election, may not thereafter revoke his or her adoption of the expenditure ceiling as to that election. A candidate who is not elected to office in the primary election, enters the runoff election, and adopts the expenditure ceiling for the general election, may not thereafter revoke his or her adoption of the expenditure ceiling as to that election . I - (Ords. 96-48§ 9; 96-24; 95-47; 95-35; 95-8.) SECTION X. Section 530-2.710 is amended to read: 530-2.710 Contributions cumulated. For a single election if an individual, committee, or small contributor committee contributes at least one hundred dollars to a candidate who has adopted the voluntary expenditure ceiling specified in section 530-2.707, then the cumulative amount of any contributions to that) candidate and contributions to independent expenditure committees on behalf of that candidate, or in opposition to that candidate's opponents, made by such individual or committee shall not exceed five hundred dollars ($500), and in the case of small contributor committees shall not exceed one thousand dollars($1,000). For a single election, if an individual, committee, or small contributor committee contributes at least one hundred dollars to a candidate who has not accepted the voluntary expenditure ceiling defined in section 530-2.707, then the cumulative amount of any contributions to that candidate and contributions to independent expenditure committees on behalf of that candidate, or in opposition to that candidate's opponents, made by such individual or committee shall not exceed two hundred and fifty dollars ($250), and in the case of small contributor committees shall not exceed five hundred dollars($500.) (Ords, 96-48§10; 95-8.) SECTION XI. EFFECTIVE DATE. This ordinance becomes effective 30 days after passage, 7 and within 15 days after passage shall be published once with the names of supervisors voting for and against it in the Contra Costa Times , a newspaper published in this County. PASSED ON December 10, 1996 , by the following vote: AYES: Supervisors Rogers, DeSaulnier and Smith NOES: Supervisors Bishop and Canciamilla ABSENT: None ABSTAIN: None ATTEST: PHIL BATCHELOR, clerk of the Board and County Administrator By: Deputy Bo d it [SEAL] A:\DEBT-1.WPD 8 JD. CY) z w 0 cc 0- f7 0 W 7� WO LU z co M z W - oow F- 0 0 U =5 ca :co 0 Lr) T-4 CN 0 >- 4-J 1 M z w F-: a 0) w > r-4 0 x w F� lo w 0 8 w w 0 w T-4 (a cc :3 Z CC .61 N 0 T-4 0 a. F—I 00 m a. 44 cc m CL < 0 z O d a aw: z d 0 E z w z z w J w z 0 z p (n cr 0 u Fn W z F- a < m m 0 w m 0 W F 0 Lu 0 (L w tR cc a:a 0-0 >-D I a< 0 w C) =)a: 0 cc 0 a.0 cy:n0 co U) .-j Cc uj 0 ac g w 0 t=2 a. Z)n F-<m f =D-j< Z 0 mc LU►Q- 0 T-4 D CN 0 z ui dd D z; u 1 C .9 A co co ca d T-1 - z -t z G0 a) a: w 0 a cts z ca w z -i w LU -W a. 2 > w .0 x 'WI a. z :3 0 co w 0 nm U W 3 U) z a: a LO < w 0 D <. co H !R w > cr) D -LL zi c) F 0 z 0 �-u) cc cc% U) U) L)W CL(D (1) 0 C') x , U cr) Da c0a. 0.2 E U) 20 WU) 0) c) a) a > w > U) D C.) W en 0 0 W 5 m do- N Wcr < U—) F— 10 m M: — >-(D w z R— :3 loc c4 U uj cc wo cc$ 0 cr LL oh D (1) W D Cr CL U) cc 0 < LU 0 Z Im IWL as w cc > wp W w L)In w 0:-u < -2 O:D > cn z <M cn Ln x CD a)li — co 0 cz cz UW) LF) a C-)C) W WLL E 15 0 z 0 Z�..L Q) E -0 E >'.2 c :3 .0 U) 0 C) 111 WW du) OCO z 000 4-J 5 Z)cn. CD C X S cc 0 W UUUa: z -C 0 �- cc P 4-4 (1) N F— o rw Q) U) Wo ZMOO- r 0 O. z a: w :Dz (-)�- 0 RW 0 0 �y U- co L- LL 3 r-4 Ln Zt CL CL rn C) cz r- U)Z 0:.:) W cn 'E F 400 z C%3 a) 0) -rl e% e"% IN rim Z� cu .- — W COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ,CALIFORNIA To: Board of Supervisors From: Victor J. Westman, County Counsel By: Mary Ann McNett Mason, Deputy County Counsel Date: December 4, 1996 Re: Draft Amendments to conform County's Campaign Ordinances to Proposition 208 Ii This memorandum discusses those amendments to the n County's Election Campaign Y P 9 Ordinance and Campaign Spendi,g Reform Ordinance which will be considered for adoption on December 10, 1996. The amendments conform those ordinances to Proposition 208 and specify circumstances under which the voluntary expenditure ceiling increases. A copy of the ordinance introduced on December 3, 1996 is attached hereto. Also attached are comments of November 27, 1996 from Deputy District Attorney Jim Sepulveda about enforcement of the ordinances. Sections Repealed. The amendments (Section III) would repeal all provisions pertaining to the Fair Campaign Pledge. In addition, toi conform the ordinance to Proposition 208, section 530- 2.407 "Contributions to committees making independent expenditures" would be repealed. This section, which limited contributions to committees making independent expenditures for or against supervisorial candidates, is preempted by Proposition 208 (Government Code section 85500 (b)) which provides that independent expenditure committees which make independent expenditures of oneithousand dollars or more supporting or opposing a candidate shall not accept any contribution in excess of two hundred and fifty dollars. Section 530-2.711 "Debt Retirement" would be repealed because it is preempted. Proposition 208 provides that as to campaigns occurring after January 1, 1997, candidates can accept campaign contributions no more than 90 days after the election. Contributions accepted during the 90 days after the election shall be used only to retire debt. (Gov't. Code §85305 (c).) These provisions do not apply to retirement of debt for elections held prior to January 1, 1997. However, as of January 1, 1997, the contribution limits specified in Proposition 208 are applicable to the collection of funds to retire debt for pre-1997 campaigns. 1 i Sections added and amended. 1. Section 530-2.215 "Small Contributor Committee" is added to define small contributor committees, a new form of committee created by Proposition 208. Small contributor committees have a membership of at least one hundred individuals, have been in existence for at least six months; are not candidate controlled committees; and in a calendar year do not receive contributions from any person exceeding fifty dollars. (Gov't. Code § 85203.) Proposition 208 allows small contributor committees to contribute at higher levels than other types of contributors. ((Gov't. Code § 85302.) In contrast, Proposition 208 omits reference to broad based political 1committees and treats these committees the same as any other individual contributor. 2. Section 530-2.702 is amended to specify that section 530-2.403 "In-kind contribution of campaign office space" does not apply to supervisorial candidates. That section permitted the acceptance of in-kind contributions of office space of up to $5,000. That amount exceeds the contribution limits imposed by Proposition 208. (Gov't. Code §§ 85301, 85402.) Proposition 208 provides that for candidate's in districts of one hundred thousand or more residents, the contribution limit for candidates accepting a voluntary expenditure ceiling imposed by the local jurisdiction are $500 per individual and $1,000 per small contributor committee. For candidates who do not accept the ceiling, the contribution limits are $250 per individual and $500 per small contributor committee. (Gov't. Code § 85301(c ); 85402 (b).) Proposition 208 allows local jurisdictions to set stricter limits. (Gov't. Code § 85706.) 3. Section 530-2.703 "Individual campaign contributions" is amended to reduce the contribution limit for candidates who accept the voluntary expenditure ceiling to $500, the maximum contribution Proposition 208 permits for such candidates. (Gov't. Code § 85402 (b).) In addition, references to election cycles are deleted because Proposition 208 limits the acceptance of contributions per election and prohibits candidates in supervisorial districts of fewer than one million residents from accepting campaign contributions more than six months before the primary election. (Gov't. Code § 85305 (a).) References to recall candidates are deleted because Proposition 208 does not differentiate between recall candidates and other candidates.) 4. Section 530-2.704 "Broad Based Political Committee Campaign Contributions" is amended to refer to "Small Con,tributor Committee Campaign Contributions." All references to broad based political committees are deleted and replaced with references to small contributor committees. Contribution limits for small contributor committees are established at $200 for candidates who do not accept the voluntary expenditure ceiling and at $1000 for candidates who do accept the ceiling. (Gov't. Code §§ 85302; 85402 (c); 85706 (b).) The ratio of the differential contribution limits for small contributors committees ($200/$1,000) is the same as the ratio of the differential contribution limits for other types of contributors ($100/$500.) The aggregate limitation on acceptance of contributions from broad based political committees is deleted. Note that Proposition 208 provides that a 2 candidate may accept no more than 25 percent of the recommended voluntary expenditure limits from other than individuals, small contributor committees and political parties. (Gov't. Code § 85309.) We note that the level of the individual and small contributor committee contribution limits could be subject Ito legal challenge on the basis that the limits for candidates not accepting the voluntary expenditure ceiling are too low and that the five to one ratio of the differential contribution limits would have a coercive effect on candidates to either adopt the limits and thereby restrict their expenditures or forgo the ability to collect contributions at the higher level so as to violate the First Amendment guarantee of free speech. (See Carver v. Nixon (1995) 72 F.3d 633; National Black Police Assn. V. District of Columbia Bd. Of elections and Ethics (D.D.C. 1996) 924 F.Supp. 270; Wilkinson v. Jones (W.D. Ky 1995), 876 F.Supp. 916.) 5. Section 530-2.706 11 imitation on personal loans" would be amended to delete references to election cycles. Proposition 208 limits the amount a candidate can loan to his or her campaign at any one point in time to $20,000. Thus, the draft amendments also would reduce the amount which a candidate accepting the voluntary expenditure ceiling may loan his or her campaign from $30,000 to $20,000. (Gov't. Code § 85307 (c ).) 6. Numerous chan es I ould be made to section 530-2.707 "Voluntary g 1 expenditure limits." Proposition 208 allows counties to impose voluntary expenditure limits and provides for higher contribution limits for candidates adopting limits imposed by a county. (Gov't. Code §§ 85400 (c); 85402 (b); 85706.) References to election!cycles and recall candidates would be deleted. Two new provisions allowing increases in the voluntary expenditure ceiling would be added. When a candidate accepting the ceiling has an opponent (or opponents) who does not accept the limits, the candidate's expenditure ceiling would increase by ten thousand dollars ($10,000) each time the opponent (or opponents) receive cumulative contributions totaling ten thousand dollars ($10,000) or make cumulative expenditures totaling ten thousand dollars ($10,000.) To determine if the threshold for increasing the ceiling is reached, the contributions of all opponents not accepting the ceiling would be aggregated as would the expenditures of all opponents. Increases would be tied to the candidate's receipt of disclosures of contributions and expenditures from the opponent. Until twenty days before the election, the opponent(s) would have to provide 72 hour notice by facsimile or overnight mail of either the receipt of contributions in multiples of ten thousand dollars ($10,000) or the making of expenditures in multiples of ten thousand dollars i ($10,000). During the last twenty days before the election, the opponent(s) would have to provide 24 hour notice of either contributions received in multiples of three thousand dollars i ($3,000.) or expenditures made in multiples of three thousand dollars ($3,000.) For each notification, the opponent would disclose either contributions or expenditures, whichever is higher. Similarly, the ceiling would increase by ten thousand dollars ($10,000) for a candidate accepting the ceiling each time independent expenditure committees opposing the candidate or supporting his opponent, either individually or in the aggregate, make 3 i independent expenditures of ten thousand dollars ($10,000) or receive contributions of ten thousand dollars ($10,000.) Again; increases in the expenditure ceiling are tied to disclosures from independent expenditure committees of amount spent and contributions received. The committee disclosures would be made in the same time and manner as the candidate disclosures. (Draft sections 530-2.707 (e), (f), (1), (j).) The draft amendments also would provide that notwithstanding,the provisions allowing an increase in the expenditure ceiling, the ceiling will not exceed $160,000 in any event. (Draft section 530-2.707 (g).) References to the debt retirement cycle would be deleted. Repayment of debt during the ninety day period following an election would not be an expenditure subject to the expenditure ceiling. (Draft sect ionl530-2.707 (1).) Former section 530-2.707 (h) "Timing of expenditures" would be deleted. It is preempted by Proposition 208 which specifies how expenditures are to be attributed between the primary and general election. (See Gov't. Code § 85403.) 7. Section 530-2.710 "Contributions cumulated" would be amended to delete references to election cycles and broad based political committees, to refer to small contributor committees, to make the cumulative contribution limits consistent with those of Proposition 208, to provide that when a contributor contributes to a candidate, the cumulation of contributions applies not only in the event of contributions to an independent expenditure committee on behalf or that candidate, but also to contributions to an independent expenditure committee opposing that candidate's opponents. Please note that after December 31, 1996 and until this ordinance is adopted and becomes effective, potentially mid- January 1997, the Supervisorial candidates and incumbents would be subject both to the provisions of this ordinance and Proposition 208, to the extent the provisions of the County ordinance are not preempted by Proposition 208. MAM1am attachments cc: County Administrator Jim Sepulveda, Deputy District Attorney 4 z Gary T.Yancey District Attorney OFFICE OF THE DISTRICT ATTORNEY COUNTY OF CONTRA COSTA TO: Mary Ann Mason L'a Deputy County Counsel 2 7FROM• James L. Se ulveda "an�o --S=L • p rIN ,CALIF Deputy District Attorney DATE: November 27, 1996 SUBJECT: County Campaign Ordinance I I understand that based upon the,passage of Proposition 208,the Board of Supervisors is considering amending the current County campaign ordinance to not only bring it into conformance with Proposition 208 but to add additional provisions as well. After having done legal research into the Constitutional issues brought into play by campaign finance laws, I have serious questions as to the constitutionality of most of the County's ordinance, at least as that ordinance will exist after January 1, 1997. The United States Supreme Court has made it very clear that campaign contribution limits and other disclosure requirements effect constitutionally protected free speech. Buckley v. Valeo (1976)424 U.S. 1. In order for 'said restrictions to pass constitutional muster,they must pass what the courts call a"strict scrutiny"test. The restrictions on speech must serve a compelling state interest and be drafted narrowly so as to not unnecessarily abridge constitutional rights. Where such restrictions have been upheld,the compelling state interest proffered as been the attempt to reduce corruption or the appearance of corruption by limiting monetary contributions and the possible quid pro quo effect such contributions produce. However,the burden is on the legislative body to establish that the recited harms are real and that the regulations will alleviate the harms in a direct and material way. Carver v.Nixon(8th Cir.) 72 F.3d 633, 637. It would, therefore, seem that although the County may have the legal authority to impose stricter standards than those set forth injProposition208, said additional restrictions are subject to the strict scrutiny test. Because for the last several year's there have been virtually no state imposed limits on campaign contributions or expenditures, it may well have been appropriate for the County to address that "void"by adopting reasonable restrictions. However, on January 1, 1997, once Proposition 208 goes into effect, that"void" no longer exists. Therefore, pursuant to the dictates of Buckley and its progeny, unless the County can demonstrate that it needs greater restrictions than those afforded by Proposition 208 in order to actually reduce corruption or the appearance of corruption, the harsher restrictions imposed by the County ordinance would seem to be an unconstitutional abridgement of free speech. I ' It does seem appropriate for the County to adopt reasonable voluntary spending limits in accordance with the guidelines set forth in Proposition 208. Said proposition contemplates that local jurisdictions will determine the appropriate spending limits for appropriate local offices. However, additional local restrictions on campaign contributions, independent expenditures, and advertising and other campaign disclosures would seem to be unconstitutional unless the rigors of the strict scrutiny test can be Met. Given the fact that no one yet knows how effective or ineffective'the Proposition 208 restrictions are going to be in regulating corruption or the appearance of corruption, it would appear to be an impossible task to prove that Contra Costa County,at this point in time,needs to have more restrictive laws. i Since it is apparent that a number of legal challenges will be filed against the constitutionality of Proposition 208,the issue arises as to what happens if its provisions are enjoined from going into effect by a court. Under that circumstance, should not the County have an ordinance in place that deals with contribution and disclosure issues? From an enforcement point of view, since the provisions of Proposition 208 are so similar to the county ordinance, a constitutional challenge to one is in reality a constitutional challenge to the other. Until the constitutional aspects of such a challenge could be determined, it would be unlikely that this office would undertake any enforcement action under the ordinance. Therefore,there is really no downside to the County in waiting to see how the challenges to Proposition 208 fare in the courts. Thank you for your considerati n of our views in this matter.