BILL ANALYSIS Ó AB 1083 Page 1 ASSEMBLY THIRD READING AB 1083 (Eggman) As Amended March 26, 2015 2/3 vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Elections |5-1 |Travis Allen, |Ridley-Thomas | | | |Gatto, Gordon, | | | | |Mullin, Perea | | | | | | | |----------------+------+--------------------+----------------------| |Local |9-0 |Maienschein, | | |Government | |Gonzalez, Alejo, | | | | |Chiu, Cooley, | | | | |Gordon, Holden, | | | | |Linder, Waldron | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | AB 1083 Page 2 | | | | | | | | | | ------------------------------------------------------------------- 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. AB 1083 Page 3 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." AB 1083 Page 4 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. AB 1083 Page 5 Please the policy committee analysis for a full discussion of this bill. Analysis Prepared by: Nichole Becker / E. & R. / (916) 319-2094 FN: 0000403