HomeMy WebLinkAbout011122-03.2TO:
STUDY SESSION MEMORANDUM
3.2
Town Council
SUBJECT: Campaign contribution limits
BACKGROUND
January 11, 2022
AB 571 became effective January 1, 2021, setting default campaign contribution limits for
local elections. The state contribution limit now applies to all city candidates, if the city
has not already enacted laws addressing a contribution limit on such candidates.
Along with the new campaign contribution limit, there are also other related provisions
and regulations in AB 571 that formerly applied only to state level candidates that now
apply to city and county candidates.
DISCUSSION
The contribution limit is updated by the FPPC biennially for inflation. The current
default limit for contributions for 2021-2022 is set at $4,900 per election. The FPPC adjusts
this limit in January of odd -numbered years to reflect any increase or decrease in CPI,
rounded to the nearest $100.
The Town has the option to adopt contribution limits for Town Council candidates, or an
ordinance stating there are no contribution limits, in which case the provisions in AB 571
do not apply. Jurisdictions can adopt a higher or lower limit threshold.
In addition to the contribution limits, candidate committees subject to AB 571 are not
permitted to redesignate an existing committee for a new election. A candidate that has
qualified as a committee must establish a separate controlled committee and campaign
bank account for each election. This means that candidates that are subject to AB 571
cannot amend their Form 410 for their old committee to redesignate the committee for
use when running for reelection. In addition, there are some complicated steps to take if
a candidate has amended the Form 410 redesignation in error.
A deeper read of AB 571 is required to understand the conforming changes to various
state laws related to contribution limits, including rules governing the transfer of
campaign funds from one controlled committee to another controlled committee for the
same candidate; the acceptance of campaign contributions for an election after that
election has occurred; the carryover of contributions raised in connection with one
election for an elective office to pay campaign expenditures incurred in connection with
a subsequent election to the same office; and personal loans made by a candidate to the
candidate's campaign committee.
In addition, AB 571 allows cities to adopt enforcement standards for violations, which
may include administrative, civil, or criminal penalties, and provides that the FPPC is not
responsible for the administration or enforcement of such city ordinance or resolution.
RECOMMENDATION
Provide direction to Town staff regarding adoption of a local contribution limit.
Prepared by:
. 7
Robert B. Ewing
City Attorney
L7y)2„,,
Marie Sunseri
City Clerk
Attachments: A - AB 571 Fact Sheet
B - California Cities - Campaign Contribution Limits survey
Campaign Contribution Limits 2 January 11, 2022
Fair Political Practices Commission
Contribution Limits: City and County Candidates
Introduction
Pursuant to Assembly Bill 571 (Stats. 2019, Ch. 556, AB 571 Mullin), beginning
January 1, 2021 a state campaign contribution limit will by default apply to city and
county candidates when the city or county has not already enacted a contribution limit
on such candidates. Along with the new campaign contribution limit, there are also
other related provisions that formerly applied only to state level candidates that will now
apply to city and county candidates. Please note that none of the provisions of AB 571
discussed in this fact sheet apply to candidates in cities or counties for which the city or
county has enacted campaign contribution limits.
Current State Contribution Limit
The contribution limit that will now apply to city and county candidates pursuant to AB
571 is updated biennially for inflation. Contribution limits can be found in Regulation
18545(a)2 and on the FPPC website's FPPC Regulations page. The default limit for
contributions to city and county candidates subject to AB 571 for 2021-2022 is set at
$4,900 per election.
Other Provisions Affecting City and County Candidates
Several other provisions will now apply to city and county candidates in jurisdictions that
have not enacted campaign contribution limits, including the following:
• A candidate may not make a contribution over the AB 571 limit to another
candidate in jurisdictions subject to the AB 571 limit with limited
exceptions related to recall elections, legal defense funds and candidate -
controlled ballot measure committees. (See Regulation 18535 for more
information.)
• A candidate that has qualified as a committee must establish a separate
controlled committee and campaign bank account for each specific
office. Candidates may not redesignate a committee for one election for
another election.
• Candidates may transfer non -surplus campaign funds from one candidate -
controlled committee to another committee controlled by the same candidate for a
different office if the committee receiving the transfer is for an elective state,
county or city office. However, contributions transferred must be attributed and
transferred using the "last in, firstout" or "first in, first out" accounting method and
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 1 of 7
shall not exceed the applicable contribution limit per contributor. If a candidate is
seeking to transfer campaign funds from one controlled committee to another for
the same office a candidate may carry over non -surplus campaign funds raised in
connection with one election to pay for campaign expenditures incurred in
connection with a subsequent election for the same office without attributing or
using the "last in, first out" or "first in, first out" accounting method. (See Regulation
18536 for more information on the transfer and attribution of contributions and See
Regulation 18537.1 for more information on carryover of contributions.)
• Candidates may not personally loan to a candidate's campaign an amount for
which the outstanding balance exceeds $100,000. "Campaign" includes both
the primary and general, or special and special runoff, elections. However, a
candidate may loan each committee for a different office or term of office up to
$100,000. A candidate may not charge interest on any such loan the candidate
made to the candidate's campaign. (See Regulation 18530.8 for more
information.)
• Candidates may establish a committee to oppose the qualification of a recall
measure and the recall election when the candidate receives a notice of intent to
recall. Campaign funds raised to oppose the qualification of a recall measure
and/or the recall election would not be subject to any campaign contribution limit
under the Act. (See Regulation 18531.5 for more information.)
• A candidate for local office may open a candidate -controlled general purpose
ballot measure committee to oppose or support a measure being voted on. The
committee must identify on its campaign statements and reports each measure
for which an expenditure of $100 or more is made. (See Regulations 18421.8
and 18521.5 for more information.)
• Contributions after the date of the election may be accepted to the extent
contributions do not exceed net debts outstanding from the election, and
contributions do not otherwise exceed applicable contribution limits for that
election. (See Regulation 18531.64 for more information.)
1 This fact sheet is informational only and contains only highlights of selected provisions of the
law. It does not carry the weight of the law. For further information, consult the Political Reform Act and its
corresponding regulations, advice letters, and opinions.
2 The Political Reform Act is contained in Government Code Sections 81000 through 91014. All
statutory references are to the Government Code, unless otherwise indicated. The regulations of the Fair
Political Practices Commission are contained in Sections 18110 through 18997 of Title 2 of the California
Code of Regulations. All regulatory references are to Title 2, Division 6 of the California Code of
Regulations, unless otherwise indicated.'
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 2 of 7
• Candidates are permitted to raise contributions for a general election before the
primary election and may establish separate campaign contribution accounts for
the primary and general so long as candidates set aside contributions and use
them for the general or special general election as raised. If the candidate is
defeated in the primary election or otherwise withdraws from the general election,
the general election funds must be refunded to contributors on a pro rata basis
less any expenses associated with the raising and administration of the general
election contributions. (See Regulation 18531.2 for more information.)
• Candidates that are currently in office that are running for reelection to the same
seat in an election after January 1, 2021 may carry over campaign funds without
attribution as mentioned above. Candidates running for a different office also do
not need to do LIFO FIFO or attribution for the election immediately subsequent
to the election prior to 2021 for which the money was raised.
• Candidates must disclose cumulative totals of contributions received or made for
each election on campaign statements. (See Regulation 18421.4 for more
information.)
FAQs
A. If a city or county does not currently have contribution limits set within their
ordinance would the state contribution limit be the default?
Yes. The state contribution limit stated above would be the default contribution limit if
the city or county ordinance is silent on whether there are contribution limits within
that jurisdiction or if there is no city or county ordinance in place.
B. Is there a way for a city or county to adopt "no" contribution limits for city or
county elective city and county offices?
Yes. A city or county may elect to have "no" contribution limits. To do so, it must
explicitly state in the city or county ordinance that there are no limits on
contributions. If it is explicit that the city or county has implemented "no" contribution
limits, the state contribution limit will not apply as a default for that jurisdiction.
C. Can a city or county ordinance be less restrictive than the AB 571 limit (e.g.,
the city or county limit is set higher than the state limit)?
Yes. A city or county can set contribution limits higher than the default state limit.
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 3 of 7
D. If a city or county imposes contribution limits, is the Commission responsible
for enforcing those limits?
No. The Commission will not regulate the administration or enforcement of the
penalties. Cities or counties with existing limits or that adopt their own limits are not
subject to the state limit and may impose their own penalties for violations.
E. If a city or county has voluntary contribution limits, but no mandatory
contribution limits will the state limit be applicable?
Yes. A city or county must enact mandatory contribution limits to avoid the state limit
applying to elective city and county offices.
F. Does the default contribution limit also include judicial candidates?
No. Elective city and county offices do not include judicial offices.
G. If a city or county has imposed contribution limits for particular city or county
offices (e.g., Board of Supervisors), do those limits also apply to other
positions such as the District Attorney or would the default state limit apply if
a particular position is not specifically addressed by the city or county?
The default state limit would apply to other positions for which the city or county has
not set contribution limits. A city or county ordinance must explicitly state the city or
county contribution limits and for which elective offices those limits will apply. A city
or county may adopt a general provision implementing a contribution limit for all
elective city and county offices in that jurisdiction. As noted above, a city or county
may also adopt an ordinance that states the city or county is adopting no
contribution limits for any offices to avoid the default state limit applying.
H. Does AB 571 apply to special district or school district elections?
No. AB 571 applies only to city and county elections for offices that a city or county
has not implemented its own contribution limit.
I. Can candidates that are subject to the AB 571 contribution limit open an
officeholder committee?
No. Officeholder committees are not permitted for candidates subject to the AB
571 contribution limit. However, a candidate may use a committee for the
officeholder's future election for officeholder expenses. A candidate may also use
existing funds in the election committee for current office for officeholder
expenses.
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 4 of 7
J. Does the AB 571 contribution limit apply to debt retirement for the 2020
election?
No. For purposes of retiring debt, the contribution limit is the one that was
applicable to that election. The Act did not impose a contribution limit on city and
county candidates in 2020.
K. If a contribution was received for an election occurring after January 1, 2021,
PRIOR to January 1, 2021, does this contribution count towards the new AB
571 contribution limit after January 1, 2021?
No. The Commission adopted a formal opinion on April 15, 2021 that states
contributions made prior to the effective date of AB 571 are not aggregated with
contributions made on or after the effective date of AB 571 for purposes of the
new contribution limit. Therefore, if someone contributed up to or above the
current limit to an AB 571 committee prior to January 1, 2021 the same person
can give additional contributions to the same committee up to the AB 571
contribution limit on or after January 1, 2021.
L. If a contributor gave $10,000 in 2020 (prior to the AB 571 limit going into
effect) to a committee for a 2022 primary election, what happens?
The AB 571 contribution limit does not apply to contributions made prior to
January 1, 2021 so a contribution of this amount is permissible.
M. Does the AB 571 contribution limit apply to political party committees and
small contributor committees making contributions to candidates subject to
the AB 571 limit?
Yes. Political parties and small contributor committees are only permitted to give
contributions to candidates subject to the AB 571 in amounts up to the applicable
AB 571 contribution limit for that candidate.
N. Does the AB 571 limit apply to county central committee candidates?
No. AB 571 imposes a contribution limit on city and county elective offices when a
local jurisdiction has not already done so. Local jurisdictions are prohibited from
placing contribution limits on county central committee candidates; therefore, AB
571 is not applicable to those offices.
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 5 of 7
0. If an election was held in November 2020, but resulted in the need for a run-off
election to be held in February 2021, how would the contributions be treated
under AB 571?
The run-off election is considered a new election. If a contributor gave any amount to
an AB 571 candidate for the November 2020 election, the same contributor would still
be permitted to contribute up to $4,900 (the AB 571 limit) to the same candidate for
the February 2021 run-off election.
P. An AB 571 candidate for city council would like to send out a request for
contributions to their constituents. Do they need to include anything specific in
the request?
Yes. A candidate that is subject to AB 571 must have the following information in the
solicitation: the name of the controlled committee soliciting contributions, and the
specific office for which those contributions will be used.
Q. If an AB 571 candidate is the subject of a recall, is their committee to oppose the
recall subject to contribution limits?
No. There are no contribution limits for a committee controlled by a candidate that is
the subject of a recall that is formed to oppose the recall.
R. An AB 571 candidate has debts for an election held after January 1, 2021, may
the candidate terminate their committee?
No. If a candidate -controlled committee has outstanding debts for an election held
after January 1, 2021, they may not terminate without resolving or paying off the debt.
When the committee has no net debts outstanding, the committee must be terminated
within 24 months after the earliest of the date the candidate is defeated, leaves office,
or the term of office for which the committee was formed ends, or, for withdrawn
candidates no later than 24 months after the election from which the candidate
withdrew. Please see Regulation 18404.1 for more on termination requirements for
committees subject to AB 571.
S. If a local jurisdiction, which is subject to AB 571, passes a local campaign
contribution ordinance, are the candidates still subject to AB 571?
No. They would no longer be subject to AB 571.
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 6 of 7
Index of Regulations and Government Codes:
FPPC Regulations:
18404.1
18421.4
18421.8
18521
18521.5
18523.1
18530.2
18530.8
18531.2
18531.5
18531.61
18531.63
18531.64
18535
18536
18537.1
18545
18951
Government Code(s):
85301
85303
85304.5
85305
85306
85307
85315
85316
85317
85318
85702.5
www.fppc.ca.gov
FPPC advice: advice@fppc.ca.gov 1.866.275.3772
FPPC Ed. Pro. 086-07-2021 Page 7 of 7
54. Lafayette - No Limit
Campaign Contribution Limits - Iistserve survey
1. Agoura Hills $250
2. Anaheim $1,500
3. Arcata $210
4. Banning - State
5. Bell Gardens $250
6. Belmont $500
7. Berkeley $250
8. Beverly Hills $450
9. Brentwood - State
10. Buena Park $4,000
11. Burbank $500
12. Campbell - State
13. Capitola $200
14. Chico $500
15. Chula Vista $350
16. Claremont $250
17. Clovis - No Limit
18. Commerce $1,000
19. Compton - No Limit
20. Cotati $350
21. Covina - No Limit
22. Cudahy $1,000
23. Culver City $500
24. Dana Point $760
25. Danville - State
26. Dublin $500
27. Del Mar $2,000
28. Downey $2,000
29. East Palo Alto $500
30. El Centro - No Limit
31. El Segundo $500
32. Encinitas $250
33. Escondido $4,300
34. Eureka $500
35. Fillmore $250
36. Folsom $150
37. Fontana -State
38. Fountain Valley $500
39. Fresno $4,400
40. Galt $100
41. Gardena $1,000
42. Gilroy $750
43. Glendale $1,000
44. Grand Terrace $250
45. Half Moon Bay $1,000
46. Hayward $350
1
47. Healdsburg $500
48. Hermosa Beach $250
49. Hesperia $500
50. Huntington Beach $500
51. Irvine $300
52. La Habra - State
53. La Mesa - State
55. Laguna Beach $360
56. Laguna Hills - $1,000
57. Laguna Niguel $1,000
58. Lemon Grove $1,000
59. Livermore - State/$50 anon.
60. Loma Linda - State
61. Long Beach $250
62. Los Altos - No Limit
63. Los Gatos - State
64. Malibu $250
65. Manhattan Beach $250
66. Marina $200
67. Menifee - State
68. Merced $500
69. Milpitas $250
70. Monrovia - State
71. Moorpark - No Limit
72. Moreno Valley - No Limit
73. Monterey $500
74. Murrieta $1,000
75. Newark $500
76. Newport Beach $1,200
77. Norwalk - No Limit
78. Novato $400
79. Oakland $1,000
80. Orange $1,000
81. Oxnard $500
82. Pacific Grove $600
83. Paramount - No Limit
84. Petaluma $200
85. Pinole $500
86. Pittsburg - State
87. Pleasant Hill - $2,000
88. Pomona $500
89. Poway $250
90. Redlands- State
91. Redondo Beach $1,000
92. Redwood City $1,000
Campaign Contribution Limits - Iistserve survey
93. Richmond $2,500
94. Riverside - No Limits
95. Rohnert Park $500
96. Rolling Hills Estates - State
97. Rosemead - State
98. Roseville $500
99. Sacramento $1,750
100. San Carlos - State
101. San Demas - State
102. San Diego $500
103. San Fernando $500
104. San Gabriel - State
105. San Jose $500
106. San Juan Capistrano $580
107. San Marcos $250
108. San Mateo $500
109. Santa Ana $1,000
110. Santa Clara $250
111. Santa Clarita $1,000
112. Santa Cruz $400
113. Santa Maria - No Limit
114. Santa Monica $340
115. San Ramon - State
116. Santa Rosa $500
117. Santee $500
118. Sausalito $500
119. Seal Beach $1,000
120. Scotts Valley $100
121. Sierra Madre - State
122. Signal Hill $440
123. Simi Valley $1,000
124. Solana Beach $100
125. Sonoma $100
126. South El Monte - State
127. South Gate $1,000
128. South Pasadena $1,000
129. St. Helena - No Limit
130. Sunnyvale - State
131. Temple City - State
132. Thousand Oaks $560
133. Torrance $1,000
134. Truckee - State
135. Turlock $1,000
136. Ukiah $500
137. Union City $720
138. Upland $1,000
2
139. Vacaville - State
140. Ventura $100
141. Vernon $100
142. Victorville - State
143. Walnut $1,000
144. Walnut Creek $100
145. Watsonville $500
146. West Covina $500
147. West Hollywood $1,000
148. West Sacramento $250
149. Whittier - No Limit
150. Windsor - No Limit
151. Woodland - No Limit