Existing law authorizes the Fair Political Practices Commission, upon mutual agreement between the Commission and the Board of Supervisors of the County of San Bernardino, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance reform ordinance of the County of San Bernardino, as specified.

This bill would authorize the Commission and the City Council of the City of Stockton to also enter into such an agreement, as specified. The bill would require, if an agreement is entered into, that the Commission report specified information to the Legislature regarding the performance of that agreement on or before January 1, 2019. The bill would repeal its provisions on January 1, 2020.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Stockton.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a ²/₃ vote of each house and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

Existing law authorizes the Fair Political Practices Commission, upon mutual agreement between the Commission and the Board of Supervisors of the County of San Bernardino, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance reform ordinance of the County of San Bernardino, as specified.

This bill would authorize the Commission and the City Council of the City of Stockton to also enter into such an agreement, as specified. The bill would require, if an agreement is entered into, that the Commission report specified information to the Legislature regarding the performance of that agreement on or before January 1, 2019. The bill would repeal its provisions on January 1, 2020.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Stockton.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a ²/₃ vote of each house and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

The Political Reform Act of 1974 establishes the Fair Political Practices Commission (Commission), which has the primary responsibility for the impartial, effective administration and implementation of the act. The act authorizes,Existing law authorizes the Fair Political Practices Commission, upon mutual agreement between the Commission and the Board of Supervisors of the County of San Bernardino (board), the Commission to assume Bernardino, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance reform ordinance passed by the board. Under the act, the Commission may be the civil prosecutor responsible for civil enforcement of that local campaign finance reform ordinance. of the County of San Bernardino, as specified.

The Political Reform Act of 1974 establishes the Fair Political Practices Commission (Commission), which has the primary responsibility for the impartial, effective administration and implementation of the act. The act authorizes, upon mutual agreement between the Commission and the Board of Supervisors of the County of San Bernardino (board), the Commission to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance reform ordinance passed by the board. Under the act, the Commission may be the civil prosecutor responsible for civil enforcement of that local campaign finance reform ordinance.

This bill would make technical, nonsubstantive changes to this provision of law.

 THIRD READING 

Bill No: AB 1083

Author: Eggman (D)

Amended: 3/26/15 in Assembly

Vote: 27

SENATE ELECTIONS & C.A. COMMITTEE: 5-0, 6/16/15

AYES: Allen, Anderson, Hancock, Hertzberg, Liu

SENATE APPROPRIATIONS COMMITTEE: 6-0, 6/29/15

AYES: Lara, Beall, Hill, Leyva, Mendoza, Nielsen

NO VOTE RECORDED: Bates

ASSEMBLY FLOOR: 74-1, 5/18/15 - See last page for vote

SUBJECT: Political Reform Act of 1974: local enforcement

SOURCE: Author

DIGEST: This bill permits the City Council of the City of Stockton and the Fair Political Practices Commission (FPPC) to enter into an agreement that provides for the FPPC to enforce a local campaign finance ordinance passed by the City Council of the City of Stockton.

ANALYSIS:

Existing Law:

1. Creates the FPPC, and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA).

2. Requires a local government agency that adopts or amends a local campaign finance ordinance to file a copy of the ordinance with the FPPC.

3. 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 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.

4. Authorizes the FPPC, until January 1, 2018, upon mutual agreement between the FPPC and the San Bernardino County Board of Supervisors, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local San Bernardino County campaign finance reform ordinance. Requires the San Bernardino County Board of Supervisors to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that is subsequently enforced by the FPPC.

5. Authorizes the FPPC, pursuant to the aforementioned agreement, to investigate possible violations of the San Bernardino County campaign finance reform ordinance and bring administrative actions against persons who violate the ordinance, as specified.

6. Permits the San Bernardino County Board of Supervisors and the FPPC to enter into any agreements necessary and appropriate for the operation of these provisions, including agreements for reimbursement of state costs with county funds, as specified. Permits the San Bernardino County Board of Supervisors or the FPPC, at any time, by ordinance or resolution, to terminate any agreement for the FPPC to administer, implement, or enforce the local campaign finance reform ordinance or any provision thereof.

7. Requires the FPPC to report to the Legislature with specified information on or before January 1, 2017, if the FPPC enters into such an agreement with the San Bernardino County Board of Supervisors.

This bill:

1. Provides that, upon mutual agreement between the FPPC and the City Council of the City of Stockton, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the City Council of the City of Stockton. Provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of such an ordinance. Provides that as the civil prosecutor, the FPPC may do both of the following:

1. Investigate possible violations of the local campaign finance reform ordinance; and,

2. Bring administrative actions in accordance with the PRA and the administrative adjudication provisions of the Administrative Procedure Act.

2. Requires any local campaign finance reform ordinance of the City of Stockton that is enforced by the FPPC to comply with the PRA.

3. Requires the City Council of the City of Stockton to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.

4. Permits the City Council of the City of Stockton and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, including agreements pertaining to any necessary reimbursement of state costs with city funds for costs incurred by the FPPC in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to the provisions of this bill.

5. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the City Council of the City of Stockton to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement if the City Council of the City of Stockton terminates the agreement.

6. Permits the City Council of the City of Stockton or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.

7. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the City Council of the City of Stockton.

8. Requires the report to include, but not be limited to, all of the following:

1. The status of the agreement;

2. The estimated annual cost savings, if any, for the City of Stockton;

3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;

4. Public comments submitted to the FPPC or the City of Stockton relative to the operation of the agreement; and,

5. Legislative recommendations.

9. Contains a January 1, 2020 sunset date.

10. Makes legislative findings and declarations as to the necessity of a special statute for City of Stockton due to the need to avoid an appearance of corruption in the city’s electoral process.

Background:

San Bernardino County Contract with the FPPC. In 2012, the Legislature enacted AB 2146 (Cook, Chapter 169, Statutes of 2012), which permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance reform ordinance. Prior to this, the FPPC did not enforce any local campaign finance ordinances. According to previous analyses, the County of San Bernardino, which had been the subject of several high-profile corruption cases, was in the process of developing a campaign finance ordinance. Rather than appoint an ethics commission, which could present financial as well as conflict of interest challenges, the County proposed to contract with the FPPC to enforce their local campaign finance ordinance. Moreover, the County determined that it was in the best interest of the County to retain the services of the FPPC to provide for the enforcement and interpretation of San Bernardino County's local campaign finance ordinance as the FPPC has special skills, knowledge, experience, and expertise in the area of enforcement and interpretation of campaign laws necessary to effectively advise, assist, litigate, and otherwise represent the County on such matters. As a result, the FPPC and San Bernardino County entered into a mutual agreement, from January 1, 2013 through December 31, 2014, for the FPPC to provide the County campaign enforcement and interpretation services for the impartial, effective administration, implementation, and enforcement of San Bernardino's campaign finance reform ordinance. According to the FPPC, San Bernardino County and the FPPC have entered into a new two-year mutual agreement.

Local Campaign Ordinances and the PRA. Under existing law, local government agencies have the ability to adopt campaign ordinances that 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, permitting such requirements only when they applied solely to candidates and committees whose activity is restricted primarily to the jurisdiction in question. This provision sought to avoid the necessity of a candidate or committee active over a wider area being required to adhere to several different campaign filing schedules. Similarly, AB 1430 (Garrick, Chapter 708, Statutes of 2007), prohibited 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. Several cities and counties have adopted campaign finance ordinances, some of which are very extensive.

In some cases, those 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.

The FPPC does not currently enforce any local campaign finance ordinances other than San Bernardino County's. The FPPC can and does, however, bring enforcement actions in response to violations of the PRA that occur in campaigns for local office, even in cases where the local jurisdiction brings separate enforcement actions for violations of a local campaign finance ordinance.

Criminal, Civil, and Administrative Enforcement of the PRA and Local Campaign Ordinances. Violations of the PRA are subject to administrative, civil, and criminal penalties. Generally, the Attorney General (AG) and district attorneys have responsibility for enforcing the criminal provisions of the PRA, though any elected city attorney of a charter city also has the authority to act as the criminal prosecutor for violations of the PRA that occur within the city. The FPPC, the AG, district attorneys, and elected city attorneys of charter cities all have responsibility for enforcement of the civil penalties and remedies provided under the PRA, depending on the nature and location of the violation, while any member of the public also has the ability to file a civil action to enforce the civil provisions of the PRA, subject to certain restrictions.

The FPPC has the sole authority to bring administrative proceedings for enforcement of the PRA. When the FPPC determines on the basis of such a proceeding that a violation of the PRA has occurred, it can impose monetary penalties of up to $5,000 per violation, in addition to ordering the violator to cease and desist violation of the PRA and to file any reports, statements, or other documents or information required by the PRA. In the case of local campaign ordinances, there is no single approach as to the types of penalties that are available for the violations of those ordinances. Many local ordinances provide for misdemeanor or civil penalties for violations, while some ordinances do not establish any penalties for violations. In some local jurisdictions that have independent boards or commissions to enforce the local campaign finance ordinances, those boards or commissions have the authority to bring administrative enforcement proceedings, similar to the authority the FPPC has under the PRA.

Comments:

1. According to the author, this bill seeks to amend the Political Reform Act of 1974 in order to authorize the FPPC to enter into an agreement with the City of Stockton to enforce campaign contribution limits.
   
   There is an ongoing, national debate about the role money plays in campaigns, and particularly the effect that large contributions have on candidates once they are elected. Candidates for elected office typically rely on money to fund effective campaigns; the amount and source of those donations can vary greatly. The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits.
   
   The city does not have the resources to oversee and enforce such an ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, all administration and enforcement costs to the FPPC will be reimbursed by the City of Stockton (Local Fund).

SUPPORT: (Verified 6/29/15)

None received

OPPOSITION: (Verified 6/29/15)

None received

ASSEMBLY FLOOR: 74-1, 5/18/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Dodd, Eggman, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NOES: Ridley-Thomas

NO VOTE RECORDED: Daly, Frazier, Kim, Mathis, Melendez

Prepared by: Darren Chesin / E. & C.A. / (916) 651-4106

7/1/15 14:53:18

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1083 (Eggman) - Political Reform Act of 1974: local enforcement

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

AB 1083 will authorize the City Council of the City of Stockton to contract with the Fair Political Practices Commission (FPPC) to enforce its campaign finance laws, until January 1, 2020. The agreement must require reimbursement by the county to the FPPC for all costs.

Fiscal Impact:

• All administration and enforcement costs to the FPPC will be reimbursed by the City of Stockton (Local Fund)

Background:

Under existing law, the Fair Political Practices Commission is charged with enforcing the Political Reform Act of 1974 (PRA) and has the primary responsibility for the impartial, effective administration and implementation of the PRA.

Local governments are prohibited from enacting a campaign finance ordinance that imposes reporting requirements that are different from those set forth in the PRA, unless the different requirements apply only to the candidates seeking election in that jurisdiction, their controlled committees or committees formed primarily to support or oppose their candidacies, and to committees formed to support or oppose the qualification or passage of a local ballot measure which is being voted on only in that jurisdiction. Any jurisdiction that adopts or amends a local campaign finance ordinance is required to file a copy of that ordinance with the FPPC.

Proposed Law:

AB 1083 does the following:

1. Provides that, upon mutual agreement between the FPPC and the City Council of the City of Stockton, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the City Council of the City of Stockton. The bill provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of such an ordinance, and, that as the civil prosecutor, the FPPC may do both of the following:

1. Investigate possible violations of the local campaign finance reform ordinance; and,

2. Bring administrative actions in accordance with the PRA and the administrative adjudication provisions of the Administrative Procedure Act.

2. Requires any local campaign finance reform ordinance of the City of Stockton that is enforced by the FPPC to comply with the PRA.

3. Requires the City Council of the City of Stockton to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.

4. Permits the City Council of the City of Stockton and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, including agreements pertaining to any necessary reimbursement of state costs with city funds for costs incurred by the FPPC in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to the provisions of this bill.

5. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the City Council of the City of Stockton to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement if the City Council of the City of Stockton terminates the agreement.

6. Permits the City Council of the City of Stockton or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.

7. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the City Council of the City of Stockton.

8. Requires the report to include, but not be limited to, all of the following:

   1. The status of the agreement;

   2. The estimated annual cost savings, if any, for the City of Stockton;

   3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;

   4. Public comments submitted to the FPPC or the City of Stockton relative to the operation of the agreement; and,

   5. Legislative recommendations.

9. Contains a January 1, 2020 sunset date.

10. Makes legislative findings and declarations as to the necessity of a special statute for City of Stockton due to the need to avoid an appearance of corruption in the city’s electoral process.

Staff Comments:

Existing law (AB 2146, Cook, Chapter 169, Statutes of 2012) authorizes the FPPC, upon a mutual agreement with the County of San Bernardino, to enforce the local campaign finance ordinance for San Bernardino County until January 1, 2018.

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. Several cities and counties have adopted campaign finance ordinances, some of which are very extensive.

In some cases, those 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.

AB 1083 furthers the purpose of the Political Reform Act and will require a 2/3^rd vote on the Senate Floor.

-- END --

SENATE COMMITTEE ON

ELECTIONS AND CONSTITUTIONAL AMENDMENTS

Senator Ben Allen, Chair

2015 - 2016 Regular

Bill No: AB 1083 Hearing Date: 6/16/15

Subject: Political Reform Act of 1974: local enforcement

DIGEST

This bill permits the City Council of the City of Stockton and the Fair Political Practices Commission (FPPC) to enter into an agreement that provides for the FPPC to enforce a local campaign finance ordinance passed by the City Council of the City of Stockton.

ANALYSIS

Existing Law:

1. Creates the FPPC, and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA).
   
   
   

2. Requires a local government agency that adopts or amends a local campaign finance ordinance to file a copy of the ordinance with the FPPC.
   
   
   

3. 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 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.
   
   
   

4. Authorizes the FPPC, until January 1, 2018, upon mutual agreement between the FPPC and the San Bernardino County Board of Supervisors, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local San Bernardino County campaign finance reform ordinance. Requires the San Bernardino County Board of Supervisors to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that is subsequently enforced by the FPPC.

5. Authorizes the FPPC, pursuant to the aforementioned agreement, to investigate possible violations of the San Bernardino County campaign finance reform ordinance and bring administrative actions against persons who violate the ordinance, as specified.
   
   
   

6. Permits the San Bernardino County Board of Supervisors and the FPPC to enter into any agreements necessary and appropriate for the operation of these provisions, including agreements for reimbursement of state costs with county funds, as specified. Permits the San Bernardino County Board of Supervisors or the FPPC, at any time, by ordinance or resolution, to terminate any agreement for the FPPC to administer, implement, or enforce the local campaign finance reform ordinance or any provision thereof.
   
   
   

7. Requires the FPPC to report to the Legislature with specified information on or before January 1, 2017, if the FPPC enters into such an agreement with the San Bernardino County Board of Supervisors.

This bill:

1. Provides that, upon mutual agreement between the FPPC and the City Council of the City of Stockton, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the City Council of the City of Stockton. Provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of such an ordinance. Provides that as the civil prosecutor, the FPPC may do both of the following:

   1. Investigate possible violations of the local campaign finance reform ordinance; and,

   2. Bring administrative actions in accordance with the PRA and the administrative adjudication provisions of the Administrative Procedure Act.

2. Requires any local campaign finance reform ordinance of the City of Stockton that is enforced by the FPPC to comply with the PRA.

3. Requires the City Council of the City of Stockton to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.

4. Permits the City Council of the City of Stockton and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, including agreements pertaining to any necessary reimbursement of state costs with city funds for costs incurred by the FPPC in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to the provisions of this bill.

5. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the City Council of the City of Stockton to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement if the City Council of the City of Stockton terminates the agreement.

6. Permits the City Council of the City of Stockton or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.

7. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the City Council of the City of Stockton.

8. Requires the report to include, but not be limited to, all of the following:

   1. The status of the agreement;

   2. The estimated annual cost savings, if any, for the City of Stockton;

   3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;

   4. Public comments submitted to the FPPC or the City of Stockton relative to the operation of the agreement; and,

   5. Legislative recommendations.

9. Contains a January 1, 2020 sunset date.

10. Makes legislative findings and declarations as to the necessity of a special statute for City of Stockton due to the need to avoid an appearance of corruption in the city’s electoral process.

BACKGROUND

San Bernardino County Contract with the FPPC. In 2012, the Legislature enacted AB 2146 (Cook, Chapter 169, Statutes of 2012), which permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance reform ordinance. Prior to this, the FPPC did not enforce any local campaign finance ordinances. According to previous analyses, the County of San Bernardino, which had been the subject of several high-profile corruption cases, was in the process of developing a campaign finance ordinance. Rather than appoint an ethics commission, which could present financial as well as conflict of interest challenges, the County proposed to contract with the FPPC to enforce their local campaign finance ordinance. Moreover, the County determined that it was in the best interest of the County to retain the services of the FPPC to provide for the enforcement and interpretation of San Bernardino County's local campaign finance ordinance as the FPPC has special skills, knowledge, experience, and expertise in the area of enforcement and interpretation of campaign laws necessary to effectively advise, assist, litigate, and otherwise represent the County on such matters.

As a result, the FPPC and San Bernardino County entered into a mutual agreement, from January 1, 2013 through December 31, 2014, for the FPPC to provide the County campaign enforcement and interpretation services for the impartial, effective administration, implementation, and enforcement of San Bernardino's campaign finance reform ordinance. According to the FPPC, San Bernardino County and the FPPC have entered into a new two-year mutual agreement.

Local Campaign Ordinances and the PRA. Under existing law, local government agencies have the ability to adopt campaign ordinances that 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, permitting such requirements only when they applied solely to candidates and committees whose activity is restricted primarily to the jurisdiction in question. This provision sought to avoid the necessity of a candidate or committee active over a wider area being required to adhere to several different campaign filing schedules. Similarly, AB 1430 (Garrick, Chapter 708, Statutes of 2007), prohibited 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. Several cities and counties have adopted campaign finance ordinances, some of which are very extensive.

In some cases, those 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.

The FPPC does not currently enforce any local campaign finance ordinances other than San Bernardino County's. The FPPC can and does, however, bring enforcement actions in response to violations of the PRA that occur in campaigns for local office, even in cases where the local jurisdiction brings separate enforcement actions for violations of a local campaign finance ordinance.

Criminal, Civil, and Administrative Enforcement of the PRA and Local Campaign Ordinances. Violations of the PRA are subject to administrative, civil, and criminal penalties. Generally, the Attorney General (AG) and district attorneys have responsibility for enforcing the criminal provisions of the PRA, though any elected city attorney of a charter city also has the authority to act as the criminal prosecutor for violations of the PRA that occur within the city. The FPPC, the AG, district attorneys, and elected city attorneys of charter cities all have responsibility for enforcement of the civil penalties and remedies provided under the PRA, depending on the nature and location of the violation, while any member of the public also has the ability to file a civil action to enforce the civil provisions of the PRA, subject to certain restrictions.

The FPPC has the sole authority to bring administrative proceedings for enforcement of the PRA. When the FPPC determines on the basis of such a proceeding that a violation of the PRA has occurred, it can impose monetary penalties of up to $5,000 per violation, in addition to ordering the violator to cease and desist violation of the PRA and to file any reports, statements, or other documents or information required by the PRA. In the case of local campaign ordinances, there is no single approach as to the types of penalties that are available for the violations of those ordinances. Many local ordinances provide for misdemeanor or civil penalties for violations, while some ordinances do not establish any penalties for violations. In some local jurisdictions that have independent boards or commissions to enforce the local campaign finance ordinances, those boards or commissions have the authority to bring administrative enforcement proceedings, similar to the authority the FPPC has under the PRA.

COMMENTS

1. According to the Author: This bill seeks to amend the Political Reform Act of 1974 in order to authorize the FPPC to enter into an agreement with the City of Stockton to enforce campaign contribution limits.
   
   There is an ongoing, national debate about the role money plays in campaigns, and particularly the effect that large contributions have on candidates once they are elected. Candidates for elected office typically rely on money to fund effective campaigns; the amount and source of those donations can vary greatly. The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits.
   
   The city does not have the resources to oversee and enforce such an ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC.

RELATED/PRIOR LEGISLATION

AB 910 (Harper), which is still pending in the Assembly as a two-year bill, authorizes the FPPC to administer and enforce a local campaign finance ordinance for any city or county, upon mutual agreement between the FPPC and the local agency, as specified.

AB 2146 (Cook, Chapter 169, Statutes of 2012), permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance ordinance.

SB 1226 (Correa of 2014), would have authorized any city or county to enter into an agreement with the FPPC to administer and enforce a local campaign finance ordinance. The bill was gutted and amended in the Assembly Appropriations Committee.

PRIOR ACTION

POSITIONS

Sponsor: Author

Support: None received

Oppose: None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1083

Author:(Eggman)

As Amended Ver:March 26, 2015

2/3 vote

SUMMARY: Permits the City Council of the City of Stockton and the Fair Political Practices Commission (FPPC) to enter into an agreement that provides for the FPPC to enforce a local campaign finance ordinance passed by the City Council of the City of Stockton. Specifically, this bill:

1. Provides that, upon mutual agreement between the FPPC and the City Council of the City of Stockton, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the City Council of the City of Stockton. Provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of such an ordinance, as specified.

2. Requires the City Council of the City of Stockton to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.

3. Permits the City Council of the City of Stockton and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, as specified.

4. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the City Council of the City of Stockton to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement if the City Council of the City of Stockton terminates the agreement.

5. Permits the City Council of the City of Stockton or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.

6. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature, as specified, on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the City Council of the City of Stockton.

FISCAL EFFECT: According to the Assembly Appropriations Committee, all costs to the FPPC will be reimbursed by the City [of Stockton] by mutual agreement.

COMMENTS: According to the author, "This bill seeks to amend the Political Reform Act of 1974 in order to authorize the Fair Political Practices Commission (FPPC) to enter into an agreement with the City of Stockton to enforce campaign contribution limits. There is an ongoing, national debate about the role money plays in campaigns, and particularly the effect that large contributions have on candidates once they are elected. Candidates for elected office typically rely on money to fund effective campaigns; the amount and source of those donations can vary greatly. The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits. The city does not have the resources to oversee and enforce such [an] ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC."

In 2012, the Legislature passed and the Governor signed AB 2146 (Cook), Chapter 169, Statutes of 2012, which permitted San Bernardino County (County) and the FPPC to enter into an agreement that provides for the FPPC to enforce the County's local campaign finance reform ordinance. Prior to this, the FPPC did not enforce any local campaign finance ordinances. According to previous analyses, the County, which had been the subject of several high-profile corruption cases, was in the process of developing a campaign finance ordinance. Rather than appoint an ethics commission, which could present financial as well as conflict of interest challenges, the County proposed to contract with the FPPC to enforce their local campaign finance ordinance. Moreover, the County determined that it was in the best interest of the County to retain the services of the FPPC to provide for the enforcement and interpretation of the County's local campaign finance ordinance as the FPPC has special skills, knowledge, experience, and expertise in the area of enforcement and interpretation of campaign laws necessary to effectively advise, assist, litigate, and otherwise represent the County on such matters. As a result, the FPPC and San Bernardino County entered into a mutual agreement, from January 1, 2013, through December 31, 2014, for the FPPC to provide the County campaign enforcement and interpretation services for the impartial, effective administration, implementation, and enforcement of the San Bernardino's campaign finance reform ordinance. According to the FPPC, San Bernardino County and the FPPC have entered into a new two-year mutual agreement.

California voters passed an initiative, Proposition 9, in 1974 that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders, and lobbyists. That initiative is commonly known as the Political Reform Act. Amendments to the Political Reform Act that are not submitted to the voters, such as those contained in this bill, must further the purposes of the proposition and require a two-thirds vote of each house of the Legislature.

Please the policy committee analysis for a full discussion of this bill.

Analysis Prepared by: Nichole Becker / E. & R. / (916) 319-2094 FN: 0000403

Date of Hearing: May 13, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 1083

Author:(Eggman) – As Amended Ver:March 26, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill:

1. Authorizes the Fair Political Practices Commission (FPPC), until January 1, 2020, to assume primary responsibility for administration and enforcement, as specified, of the City of Stockton's campaign finance ordinance.

2. The bill also authorizes the FPPC and the County to enter into any mutual agreements necessary to implement (1), including provisions regarding City reimbursement of FPPC's costs.

3. Requires the FPPC, if an agreement is entered into, to report to the Legislature by January 1, 2019 regarding the performance of the agreement.

FISCAL EFFECT:

All costs to the FPPC will be reimbursed by the City by mutual agreement.

COMMENTS:

1. Purpose. According to the author, "The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits. The city does not have the resources to oversee and enforce such [an] ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC."

2. Prior Legislation. AB 1083 is modeled after AB 2146 (Cook), Chapter 169, Statutes of 2012, which permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance reform ordinance. The FPPC is required to report to the Legislature regarding the performance of the agreement by January 1, 2017.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 29, 2015

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Brian Maienschein, Chair

ABPCA Bill Id:AB 1083

Author:(Eggman) – As Amended Ver:March 26, 2015

SUBJECT: Political Reform Act of 1974: local enforcement.

SUMMARY: Allows the City of Stockton (City) to enter into an agreement with the Fair Political Practices Commission (FPPC) for the FPPC to administer and enforce the City's local campaign finance ordinance. Specifically, this bill:

1. Provides that, upon mutual agreement between the FPPC and the City Council (Council)
   of the City, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the Council.

2. Provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of the ordinance described above. As the civil prosecutor, the FPPC may do both of the following:
   
   

   1. Investigate possible violations of the local campaign finance reform ordinance; and,
      
      

   2. Bring administrative actions in accordance with the Political Reform Act (PRA) and the administrative adjudication provisions of the Administrative Procedure Act.
      
      

3. Requires any local campaign finance reform ordinance of the City that is enforced by the FPPC to comply with the PRA.
   
   

4. Requires the Council to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.
   
   

5. Permits the Council and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, including agreements pertaining to any necessary reimbursement of state costs with city funds for costs incurred by the FPPC in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to this bill.
   
   

6. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the Council to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement, if the Council terminates the agreement.
   
   

7. Permits the Council or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.
   
   

8. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the Council.
   
   

9. Requires the report to include, but not be limited to, all of the following:
   
   

   1. The status of the agreement;
      
      

   2. The estimated annual cost savings, if any, for the City;
      
      

   3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;
      
      

   4. Public comments submitted to the FPPC or the City relative to the operation of the agreement; and,
      

   5. Legislative recommendations.

10. Contains a January 1, 2020, sunset date.

11. Makes legislative findings and declarations as to the necessity of a special statute for the City due to the need to avoid an appearance of corruption in the City’s electoral process.

EXISTING LAW:

1. Creates the FPPC and makes it responsible for the impartial, effective administration and implementation of the PRA.

2. Requires local government agencies that adopt or amend local campaign finance ordinances to file a copy of the ordinance with the FPPC.

3. 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 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 being voted on only in that jurisdiction, and to city or county general purpose committees active only in that city or county.

4. 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."

5. Provides that payments made for communications to members, employees, shareholders, or families of members, employees, or shareholders of an organization for the purpose of supporting or opposing a candidate or a ballot measure, which are referred to as "member communications," are not contributions or expenditures, if those payments are not made for general public advertising such as broadcasting, billboards, and newspaper advertisements.

6. Makes violations of the PRA subject to administrative, civil, and criminal penalties.

7. Allows the FPPC, upon mutual agreement between the FPPC and the San Bernardino County Board of Supervisors, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local San Bernardino County campaign finance reform ordinance. The San Bernardino County Board of Supervisors must consult with the FPPC prior to adopting or amending any local campaign finance reform ordinance that is subsequently enforced by the FPPC.

8. Allows the FPPC, pursuant to 7), above, to investigate possible violations of the San Bernardino County campaign finance reform ordinance and bring administrative actions against persons who violate the ordinance, as specified.
   
   

9. Allows the San Bernardino County Board of Supervisors and the FPPC to enter into any agreements necessary and appropriate for the operation of 7), above, including agreements for reimbursement of state costs with county funds, as specified. The San Bernardino County Board of Supervisors or the FPPC may, at any time, by ordinance or resolution, terminate any agreement for the FPPC to administer, implement, or enforce the local campaign finance reform ordinance or any provision thereof.
   
   

10. Requires, if the FPPC enters into such an agreement with the San Bernardino County Board of Supervisors, the FPPC to report to the Legislature by January 1, 2017, the following information:

1. The status of the agreement;

2. The estimated annual cost savings, if any, for San Bernardino County;

3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;

4. Any public comments submitted to the FPPC or San Bernardino County relative to the operation of the agreement; and,

5. Any legislative recommendations.

11. Sunsets the provisions of 7) through 10), above, on January 1, 2018.

FISCAL EFFECT: This bill is keyed fiscal.

COMMENTS:

1. Bill Summary. This bill expands a limited authority that became effective in 2012, which allows San Bernardino County and the FPPC to enter into an agreement for the FPPC to administer and enforce San Bernardino County's local campaign finance ordinance, until January 1, 2018. This bill extends this authority to the City of Stockton, until January 1, 2020. This bill is sponsored by the author.

2. Author's Statement. According to the author, "This bill seeks to amend the Political Reform Act of 1974 in order to authorize the Fair Political Practices Commission (FPPC) to enter into an agreement with the City of Stockton to enforce campaign contribution limits.

"There is an ongoing, national debate about the role money plays in campaigns, and particularly the effect that large contributions have on candidates once they are elected. Candidates for elected office typically rely on money to fund effective campaigns; the amount and source of those donations can vary greatly. The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits.

"The city does not have the resources to oversee and enforce such an ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC."

3. Background. Current law, pursuant to AB 2146 (Cook), Chapter 169, Statutes of 2012, allows San Bernardino County and the FPPC to enter into a mutual agreement that permits the FPPC to enforce the County’s local campaign finance reform ordinance. AB 2146 was prompted by several high-profile campaign finance corruption cases in San Bernardino County, which subsequently developed and enacted a campaign finance reform ordinance.

San Bernardino County asked for legislative authority to contract with the FPPC to administer and enforce its campaign finance ordinance instead of creating an ethics commission as a means to avoid financial and conflict-of-interest challenges. San Bernardino County also wished to retain the services of the FPPC to provide for the enforcement and interpretation of San Bernardino County's local campaign finance ordinance because the FPPC has special skills, knowledge, experience, and expertise in the area of enforcement and interpretation of campaign laws necessary to effectively advise, assist, litigate, and otherwise represent the County on such matters. The FPPC and San Bernardino County entered into a mutual agreement on January 1, 2013. Prior to AB 2146, the FPPC did not enforce any local campaign finance ordinances.

4. Local Campaign Ordinances and the PRA. Current law allows local government agencies to adopt campaign ordinances that apply to elections within their jurisdictions, though the PRA imposes certain limited restrictions on those local ordinances. For example, 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, permitting such requirements only when they applied only to candidates and committees whose activity is restricted primarily to the jurisdiction in question. This provision sought to avoid the necessity of a candidate or committee active over a wider area being required to adhere to several different campaign filing schedules. Similarly, AB 1430 (Garrick), Chapter 708, Statutes of 2007, prohibited local governments from adopting rules governing member communications that are different than the rules that govern member communications at the state level.

Several cities and counties have adopted campaign finance ordinances, some of which are very extensive. In some cases, those ordinances include campaign contribution limits, reporting and disclosure requirements that supplement the requirements of the PRA, restrictions on when campaign funds can 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. However, some local jurisdictions have established independent boards or commissions to enforce local campaign finance laws.

The FPPC does not currently enforce any local campaign finance ordinances other than San Bernardino County's. However, the FPPC brings enforcement actions in response to violations of the PRA that occur in campaigns for local office, even in cases where the local jurisdiction brings separate enforcement actions for violations of a local campaign finance ordinance.

5. Penalties Under Local Campaign Ordinances and the PRA. Violations of the PRA are subject to administrative, civil, and criminal penalties. Generally speaking, the Attorney General (AG) and district attorneys have responsibility for enforcing the criminal provisions of the PRA, though any elected city attorney of a charter city also has the authority to act as the criminal prosecutor for violations of the PRA that occur within the city. The FPPC, the AG, district attorneys, and elected city attorneys of charter cities all have responsibility for enforcement of the civil penalties and remedies provided under the PRA, depending on the nature and location of the violation, while any member of the public also has the ability to file a civil action to enforce the civil provisions of the PRA, subject to certain restrictions. The FPPC has the sole authority to bring administrative proceedings for enforcement of the PRA. When the FPPC determines on the basis of such a proceeding that a violation of the PRA has occurred, it has the authority to impose monetary penalties of up to $5,000 per violation, in addition to ordering the violator to cease and desist violation of the PRA and to file any reports, statements, or other documents or information required by the PRA.

In the case of local campaign ordinances, there is no single approach as to the types of penalties that are available for the violations of those ordinances. Many local ordinances provide for misdemeanor or civil penalties for violations, while some ordinances do not establish any penalties for violations. In some local jurisdictions that have independent boards or commissions to enforce the local campaign finance ordinances, those boards or commissions have the authority to bring administrative enforcement proceedings, similar to the authority the FPPC has under the PRA.

6. Related Legislation. AB 910 (Harper) allows any city or county to enter into an agreement with the FPPC for the FPPC to administer and enforce a local campaign finance ordinance. AB 910 was referred to the Assembly Elections and Redistricting Committee, but was not heard at the request of the author.

7. Previous Legislation. SB 1226 (Correa) of 2014, authorized any city or county to enter into an agreement with the FPPC to administer and enforce a local campaign finance ordinance. The bill was gutted and amended in the Assembly Appropriations Committee.

AB 2146 (Cook), Chapter 169, Statutes of 2012, permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance ordinance.

8. Arguments in Support. None on file.

9. Arguments in Opposition. None on file.

10. Two-thirds vote. California voters in 1974 passed Proposition 9, commonly known as the PRA, which created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders, and lobbyists. Amendments to the PRA that are not submitted
    to the voters, such as those contained in this bill, must further the purposes of the PRA and require a two-thirds vote of each house of the Legislature.

11. Double-Referral. This bill is scheduled to be heard in the Elections and Redistricting Committee on April 29, 2015, and will be heard by this Committee pending referral.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958

Date of Hearing: April 29, 2015

ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING

Sebastian Ridley-Thomas, Chair

ABPCA Bill Id:AB 1083

Author:(Eggman) – As Amended Ver:March 26, 2015

SUBJECT: Political Reform Act of 1974: local enforcement.

SUMMARY: Permits the City Council of the City of Stockton and the Fair Political Practices Commission (FPPC) to enter into an agreement that provides for the FPPC to enforce a local campaign finance ordinance passed by the City Council of the City of Stockton. Specifically, this bill:

1. Provides that, upon mutual agreement between the FPPC and the City Council of the City of Stockton, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the City Council of the City of Stockton. Provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of such an ordinance. Provides that as the civil prosecutor, the FPPC may do both of the following:
   
   

   1. Investigate possible violations of the local campaign finance reform ordinance; and,
      
      

   2. Bring administrative actions in accordance with the Political Reform Act (PRA) and the administrative adjudication provisions of the Administrative Procedure Act.
      
      

2. Requires any local campaign finance reform ordinance of the City of Stockton that is enforced by the FPPC to comply with the PRA.
   
   

3. Requires the City Council of the City of Stockton to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.
   
   

4. Permits the City Council of the City of Stockton and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, including agreements pertaining to any necessary reimbursement of state costs with city funds for costs incurred by the FPPC in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to this bill.
   
   

5. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the City Council of the City of Stockton to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement if the City Council of the City of Stockton terminates the agreement.
   
   

6. Permits the City Council of the City of Stockton or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.
   
   

7. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the City Council of the City of Stockton.
   
   

8. Requires the report to include, but not be limited to, all of the following:
   
   

   1. The status of the agreement;
      
      

   2. The estimated annual cost savings, if any, for the City of Stockton;
      
      

   3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;
      
      

   4. Public comments submitted to the FPPC or the City of Stockton relative to the operation of the agreement; and,
      

   5. Legislative recommendations.

9. Contains a January 1, 2020 sunset date.

10. Makes legislative findings and declarations as to the necessity of a special statute for City of Stockton due to the need to avoid an appearance of corruption in the city’s electoral process.
    
    

EXISTING LAW:

1. Creates the FPPC, and makes it responsible for the impartial, effective administration and implementation of the PRA.
   
   

2. Requires a local government agency that adopts or amends a local campaign finance ordinance to file a copy of the ordinance with the FPPC.
   
   

3. 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 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.
   
   

4. Authorizes the FPPC, until January 1, 2018, upon mutual agreement between the FPPC and the San Bernardino County Board of Supervisors, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local San Bernardino County campaign finance reform ordinance. Requires the San Bernardino County Board of Supervisors to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that is subsequently enforced by the FPPC.
   
   

5. Authorizes the FPPC, pursuant to the aforementioned agreement, to investigate possible violations of the San Bernardino County campaign finance reform ordinance and bring administrative actions against persons who violate the ordinance, as specified.
   
   

6. Permits the San Bernardino County Board of Supervisors and the FPPC to enter into any agreements necessary and appropriate for the operation of these provisions, including agreements for reimbursement of state costs with county funds, as specified. Permits the San Bernardino County Board of Supervisors or the FPPC, at any time, by ordinance or resolution, to terminate any agreement for the FPPC to administer, implement, or enforce the local campaign finance reform ordinance or any provision thereof.
   
   

7. Requires the FPPC to report to the Legislature with specified information on or before January 1, 2017, if the FPPC enters into such an agreement with the San Bernardino County Board of Supervisors.
   
   

FISCAL EFFECT: Unknown

COMMENTS:

1. Purpose of the Bill: According to the author:

This bill seeks to amend the Political Reform Act of 1974 in order to authorize the Fair Political Practices Commission (FPPC) to enter into an agreement with the City of Stockton to enforce campaign contribution limits. There is an ongoing, national debate about the role money plays in campaigns, and particularly the effect that large contributions have on candidates once they are elected. Candidates for elected office typically rely on money to fund effective campaigns; the amount and source of those donations can vary greatly. The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits. The city does not have the resources to oversee and enforce such [an] ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC.

2. San Bernardino County: In 2012, the Legislature passed and the Governor signed AB 2146 (Cook), Chapter 169, Statutes of 2012, which permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance reform ordinance. Prior to this, the FPPC did not enforce any local campaign finance ordinances. According to previous analyses, the County of San Bernardino, which had been the subject of several high-profile corruption cases, was in the process of developing a campaign finance ordinance. Rather than appoint an ethics commission, which could present financial as well as conflict of interest challenges, the County proposed to contract with the FPPC to enforce their local campaign finance ordinance. Moreover, the County determined that it was in the best interest of the County to retain the services of the FPPC to provide for the enforcement and interpretation of San Bernardino County's local campaign finance ordinance as the FPPC has special skills, knowledge, experience, and expertise in the area of enforcement and interpretation of campaign laws necessary to effectively advise, assist, litigate, and otherwise represent the County on such matters. As a result, the FPPC and San Bernardino County entered into a mutual agreement, from January 1, 2013 through December 31, 2014, for the FPPC to provide the County campaign enforcement and interpretation services for the impartial, effective administration, implementation, and enforcement of the San Bernardino's campaign finance reform ordinance. According to the FPPC, San Bernardino County and the FPPC have entered into a new two-year mutual agreement.

3. Local Campaign Ordinances and the PRA: Under existing law, local government agencies have the ability to adopt campaign ordinances that 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, permitting such requirements only when they applied solely to candidates and committees whose activity is restricted primarily to the jurisdiction in question. This provision sought to avoid the necessity of a candidate or committee active over a wider area being required to adhere to several different campaign filing schedules. Similarly, AB 1430 (Garrick), Chapter 708, Statutes of 2007, prohibited 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.

Several cities and counties have adopted campaign finance ordinances, some of which are very extensive. In some cases, those 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.

The FPPC does not currently enforce any local campaign finance ordinances other than San Bernardino County's. The FPPC can and does, however, bring enforcement actions in response to violations of the PRA that occur in campaigns for local office, even in cases where the local jurisdiction brings separate enforcement actions for violations of a local campaign finance ordinance.

4. Criminal, Civil, and Administrative Enforcement of the PRA and Local Campaign Ordinances: Violations of the PRA are subject to administrative, civil, and criminal penalties. Generally, the Attorney General (AG) and district attorneys have responsibility for enforcing the criminal provisions of the PRA, though any elected city attorney of a charter city also has the authority to act as the criminal prosecutor for violations of the PRA that occur within the city. The FPPC, the AG, district attorneys, and elected city attorneys of charter cities all have responsibility for enforcement of the civil penalties and remedies provided under the PRA, depending on the nature and location of the violation, while any member of the public also has the ability to file a civil action to enforce the civil provisions of the PRA, subject to certain restrictions. The FPPC has the sole authority to bring administrative proceedings for enforcement of the PRA. When the FPPC determines on the basis of such a proceeding that a violation of the PRA has occurred, it can impose monetary penalties of up to $5,000 per violation, in addition to ordering the violator to cease and desist violation of the PRA and to file any reports, statements, or other documents or information required by the PRA.
   
   In the case of local campaign ordinances, there is no single approach as to the types of penalties that are available for the violations of those ordinances. Many local ordinances provide for misdemeanor or civil penalties for violations, while some ordinances do not establish any penalties for violations. In some local jurisdictions that have independent boards or commissions to enforce the local campaign finance ordinances, those boards or commissions have the authority to bring administrative enforcement proceedings, similar to the authority the FPPC has under the PRA.
   
   
   

5. Is Expansion of the Law to Soon? As mentioned above, in 2012, AB 2146 (Cook) became law to permit San Bernardino County and the FPPC to enter into an agreement for the FPPC to enforce the County’s local campaign finance reform ordinance. Among other provisions, AB 2146 also required the FPPC, if it entered into an agreement with the San Bernardino County Board of Supervisors, to report to the Legislature with specified information on or before January 1, 2017. Current law requires the report to include, but not be limited to, the status of the agreement, the estimated annual cost savings, if any, for the County of San Bernardino, a summary of relevant annual performance metrics, as specified, any public comments submitted relative to the operation of the agreement, and any legislative recommendations. According to the FPPC, a report has not been submitted to the Legislature yet. Would it be premature to expand current law when the Legislature has not received a report detailing the effectiveness of the current agreement between the FPPC and San Bernardino County?
   
   Furthermore, the committee may wish to consider whether such an expansion of the FPPC's workload could negatively impact the ongoing enforcement of the PRA. Because there is no guarantee that the City of Stockton's local campaign finance ordinance will be consistent with the general framework of the PRA, this additional local ordinance that the FPPC is asked to enforce could add complexity to the FPPC's work. Conversely, this bill only expands current law to add the City of Stockton's local campaign finance ordinance and gives the FPPC discretion on whether or not they will choose to enter into an agreement with the City Council of the City of Stockton to enforce its local campaign finance ordinance.
   
   
   

6. Political Reform Act of 1974: California voters passed an initiative, Proposition 9, in 1974
   that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders, and lobbyists. That initiative is commonly known as the PRA. Amendments to the PRA that are not submitted to the voters, such as those contained in this bill, must further the purposes of the proposition and require a two-thirds vote of each house of the Legislature.
   
   
   

7. Related Legislation: AB 910 (Harper), which is pending in this committee, authorizes the FPPC to administer and enforce a local campaign finance ordinance for any city or county, upon mutual agreement between the FPPC and the local agency, as specified.

8. Previous Legislation: AB 2146 (Cook), Chapter 169, Statutes of 2012, permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance ordinance.

SB 1226 (Correa) of 2014, would have authorized any city or county to enter into an agreement with the FPPC to administer and enforce a local campaign finance ordinance. The bill was gutted and amended in the Assembly Appropriations Committee.

9. Double-Referral: This bill is double referred to the Assembly Local Government Committee. Due to impending committee deadlines, if this bill is approved in this committee today, it is scheduled to be heard in the Assembly Local Government Committee this afternoon. However, if this bill is amended in committee today, it will not be able to be heard in the Assembly Local Government Committee before this week's deadline for policy committees to hear and report fiscal bills. In light of this fact, if it is the committee's desire to approve this bill with amendments, committee staff recommends that this bill be passed out of committee with the author's commitment to take those amendments subsequent to passage by this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Nichole Becker / E. & R. / (916) 319-2094

Date of Hearing: April 15, 2015

ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING

Sebastian Ridley-Thomas, Chair

ABPCA Bill Id:AB 1083

Author:(Eggman) – As Amended Ver:March 26, 2015

SUBJECT: Political Reform Act of 1974: local enforcement.

SUMMARY: Permits the City Council of the City of Stockton and the Fair Political Practices Commission (FPPC) to enter into an agreement that provides for the FPPC to enforce a local campaign finance ordinance passed by the City Council of the City of Stockton. Specifically, this bill:

1. Provides that, upon mutual agreement between the FPPC and the City Council of the City of Stockton, the FPPC is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance ordinance passed by the City Council of the City of Stockton. Provides that the FPPC is authorized to be the civil prosecutor responsible for the civil enforcement of such an ordinance. Provides that as the civil prosecutor, the FPPC may do both of the following:
   
   

   1. Investigate possible violations of the local campaign finance reform ordinance; and,
      
      

   2. Bring administrative actions in accordance with the Political Reform Act (PRA) and the administrative adjudication provisions of the Administrative Procedure Act.
      
      

2. Requires any local campaign finance reform ordinance of the City of Stockton that is enforced by the FPPC to comply with the PRA.
   
   

3. Requires the City Council of the City of Stockton to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that will be enforced by the FPPC.
   
   

4. Permits the City Council of the City of Stockton and the FPPC to enter into any agreements necessary and appropriate to carry out the provisions of this bill, including agreements pertaining to any necessary reimbursement of state costs with city funds for costs incurred by the FPPC in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to this bill.
   
   

5. Prohibits an agreement entered into pursuant to the provisions of this bill from containing any form of a cancellation fee, liquidated damages provision, or other financial disincentive to the exercise of the right to terminate the agreement, except that the FPPC may require the City Council of the City of Stockton to pay the FPPC for services rendered and any other expenditures reasonably made by the FPPC in anticipation of services to be rendered pursuant to the agreement if the City Council of the City of Stockton terminates the agreement.
   
   

6. Permits the City Council of the City of Stockton or the FPPC to terminate, at any time, by ordinance or resolution, any agreement made pursuant to this bill for the FPPC to administer, implement, or enforce a local campaign finance reform ordinance or any other provisions thereof.
   
   

7. Requires the FPPC, if an agreement is entered into pursuant to the provisions of this bill, to report to the Legislature on or before January 1, 2019, and submit that report in compliance with current law. Requires the FPPC to develop the report in consultation with the City Council of the City of Stockton.
   
   

8. Requires the report to include, but not be limited to, all of the following:
   
   

   1. The status of the agreement;
      
      

   2. The estimated annual cost savings, if any, for the City of Stockton;
      
      

   3. A summary of relevant annual performance metrics, including measures of utilization, enforcement, and customer satisfaction;
      
      

   4. Public comments submitted to the FPPC or the City of Stockton relative to the operation of the agreement; and,
      

   5. Legislative recommendations.

9. Contains a January 1, 2020 sunset date.

10. Makes legislative findings and declarations as to the necessity of a special statute for City of Stockton due to the need to avoid an appearance of corruption in the city’s electoral process.
    
    

EXISTING LAW:

1. Creates the FPPC, and makes it responsible for the impartial, effective administration and implementation of the PRA.
   
   

2. Requires a local government agency that adopts or amends a local campaign finance ordinance to file a copy of the ordinance with the FPPC.
   
   

3. 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 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.
   
   

4. Authorizes the FPPC, until January 1, 2018, upon mutual agreement between the FPPC and the San Bernardino County Board of Supervisors, to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local San Bernardino County campaign finance reform ordinance. Requires the San Bernardino County Board of Supervisors to consult with the FPPC prior to adopting and amending any local campaign finance reform ordinance that is subsequently enforced by the FPPC.
   
   

5. Authorizes the FPPC, pursuant to the aforementioned agreement, to investigate possible violations of the San Bernardino County campaign finance reform ordinance and bring administrative actions against persons who violate the ordinance, as specified.
   
   

6. Permits the San Bernardino County Board of Supervisors and the FPPC to enter into any agreements necessary and appropriate for the operation of these provisions, including agreements for reimbursement of state costs with county funds, as specified. Permits the San Bernardino County Board of Supervisors or the FPPC, at any time, by ordinance or resolution, to terminate any agreement for the FPPC to administer, implement, or enforce the local campaign finance reform ordinance or any provision thereof.
   
   

7. Requires the FPPC to report to the Legislature with specified information on or before January 1, 2017, if the FPPC enters into such an agreement with the San Bernardino County Board of Supervisors.
   
   

FISCAL EFFECT: Unknown

COMMENTS:

1. Purpose of the Bill: According to the author:

This bill seeks to amend the Political Reform Act of 1974 in order to authorize the Fair Political Practices Commission (FPPC) to enter into an agreement with the City of Stockton to enforce campaign contribution limits. There is an ongoing, national debate about the role money plays in campaigns, and particularly the effect that large contributions have on candidates once they are elected. Candidates for elected office typically rely on money to fund effective campaigns; the amount and source of those donations can vary greatly. The City of Stockton currently imposes no limits on donations by individuals to campaigns for city offices, so the City Council is considering the adoption of a municipal ordinance setting individual campaign donation limits. The city does not have the resources to oversee and enforce such [an] ordinance, but the FPPC has, through past legislation, arranged with the County of San Bernardino to do just that. This bill would simply allow the City of Stockton to make the same mutual arrangement with the FPPC.

2. San Bernardino County: In 2012, the Legislature passed and the Governor signed AB 2146 (Cook), Chapter 169, Statutes of 2012, which permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance reform ordinance. Prior to this, the FPPC did not enforce any local campaign finance ordinances. According to previous analyses, the County of San Bernardino, which had been the subject of several high-profile corruption cases, was in the process of developing a campaign finance ordinance. Rather than appoint an ethics commission, which could present financial as well as conflict of interest challenges, the County proposed to contract with the FPPC to enforce their local campaign finance ordinance. Moreover, the County determined that it was in the best interest of the County to retain the services of the FPPC to provide for the enforcement and interpretation of San Bernardino County's local campaign finance ordinance as the FPPC has special skills, knowledge, experience, and expertise in the area of enforcement and interpretation of campaign laws necessary to effectively advise, assist, litigate, and otherwise represent the County on such matters. As a result, the FPPC and San Bernardino County entered into a mutual agreement, from January 1, 2013 through December 31, 2014, for the FPPC to provide the County campaign enforcement and interpretation services for the impartial, effective administration, implementation, and enforcement of the San Bernardino's campaign finance reform ordinance. According to the FPPC, San Bernardino County and the FPPC have entered into a new two year mutual agreement.

3. Local Campaign Ordinances and the PRA: Under existing law, local government agencies have the ability to adopt campaign ordinances that 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, permitting such requirements only when they applied solely to candidates and committees whose activity is restricted primarily to the jurisdiction in question. This provision sought to avoid the necessity of a candidate or committee active over a wider area being required to adhere to several different campaign filing schedules. Similarly, AB 1430 (Garrick), Chapter 708, Statutes of 2007, prohibited 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.

Several cities and counties have adopted campaign finance ordinances, some of which are very extensive. In some cases, those 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.

The FPPC does not currently enforce any local campaign finance ordinances other than San Bernardino County's. The FPPC can and does, however, bring enforcement actions in response to violations of the PRA that occur in campaigns for local office, even in cases where the local jurisdiction brings separate enforcement actions for violations of a local campaign finance ordinance.

4. Criminal, Civil, and Administrative Enforcement of the PRA and Local Campaign Ordinances: Violations of the PRA are subject to administrative, civil, and criminal penalties. Generally, the Attorney General (AG) and district attorneys have responsibility for enforcing the criminal provisions of the PRA, though any elected city attorney of a charter city also has the authority to act as the criminal prosecutor for violations of the PRA that occur within the city. The FPPC, the AG, district attorneys, and elected city attorneys of charter cities all have responsibility for enforcement of the civil penalties and remedies provided under the PRA, depending on the nature and location of the violation, while any member of the public also has the ability to file a civil action to enforce the civil provisions of the PRA, subject to certain restrictions. The FPPC has the sole authority to bring administrative proceedings for enforcement of the PRA. When the FPPC determines on the basis of such a proceeding that a violation of the PRA has occurred, it can impose monetary penalties of up to $5,000 per violation, in addition to ordering the violator to cease and desist violation of the PRA and to file any reports, statements, or other documents or information required by the PRA.
   
   In the case of local campaign ordinances, there is no single approach as to the types of penalties that are available for the violations of those ordinances. Many local ordinances provide for misdemeanor or civil penalties for violations, while some ordinances do not establish any penalties for violations. In some local jurisdictions that have independent boards or commissions to enforce the local campaign finance ordinances, those boards or commissions have the authority to bring administrative enforcement proceedings, similar to the authority the FPPC has under the PRA.
   
   
   

5. Is Expansion of the Law to Soon? As mentioned above, in 2012, AB 2146 (Cook) became law to permit San Bernardino County and the FPPC to enter into an agreement for the FPPC to enforce the County’s local campaign finance reform ordinance. Among other provisions, AB 2146 also required the FPPC, if it entered into an agreement with the San Bernardino County Board of Supervisors, to report to the Legislature with specified information on or before January 1, 2017. Current law requires the report to include, but not be limited to, the status of the agreement, the estimated annual cost savings, if any, for the County of San Bernardino, a summary of relevant annual performance metrics, as specified, any public comments submitted relative to the operation of the agreement, and any legislative recommendations. According to the FPPC, a report has not been submitted to the Legislature yet. Would it be premature to expand current law when the Legislature has not received a report detailing the effectiveness of the current agreement between the FPPC and San Bernardino County?
   
   Furthermore, the committee may wish to consider whether such an expansion of the FPPC's workload could negatively impact the ongoing enforcement of the PRA. Because there is no guarantee that the City of Stockton's local campaign finance ordinance will be consistent with the general framework of the PRA, this additional local ordinance that the FPPC is asked to enforce could add complexity to the FPPC's work. Conversely, this bill only expands current law to add the City of Stockton's local campaign finance ordinance and gives the FPPC discretion on whether or not they will choose to enter into an agreement with the City Council of the City of Stockton to enforce its local campaign finance ordinance.
   
   
   

6. Political Reform Act of 1974: California voters passed an initiative, Proposition 9, in 1974
   that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders, and lobbyists. That initiative is commonly known as the PRA. Amendments to the PRA that are not submitted to the voters, such as those contained in this bill, must further the purposes of the proposition and require a two-thirds vote of each house of the Legislature.
   
   
   

7. Related Legislation: AB 910 (Harper), which is also being heard in this committee today, authorizes the FPPC to administer and enforce a local campaign finance ordinance for any city or county, upon mutual agreement between the FPPC and the local agency, as specified.

8. Previous Legislation: AB 2146 (Cook), Chapter 169 of 2012, permitted San Bernardino County and the FPPC to enter into an agreement that provides for the FPPC to enforce the County’s local campaign finance ordinance.

SB 1226 (Correa) of 2014, would have authorized any city or county to enter into an agreement with the FPPC to administer and enforce a local campaign finance ordinance. The bill was gutted and amended in the Assembly Appropriations Committee.

9. Double-Referral: This bill is double referred to the Assembly Local Government Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Nichole Becker / E. & R. / (916) 319-2094