BEST PRACTICES IN CAMPAIGN FINANCE LEGISLATION National Policy Trends & Legislative Opportunities in Virginia Austin Graham, Legal Counsel Campaign Legal Center December 19, 2019
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Today’s Presentation I. Review of National Landscape: } Contribution Limits } Public Financing of Elections } Disclosure of Political Spending } II. Discussion of Virginia Legislation } III. Question & Answer Session }
National Landscape: In General There is a lot of variety in how states } regulate campaign finance Federal election law applies only to } candidates for federal office, and to political parties, PACs, & other organizations that spend money to support or oppose federal candidates. U.S. Constitution gives broad authority } to states over campaign finance requirements for statewide, legislative, and local office elections
National Landscape: Contribution Limits } 45 states impose limits on contributions to candidates from at least some sources } Only Alabama, Nebraska, Oregon, Utah, and… VIRGINIA do not } Courts have widely upheld contribution limits against constitutional challenges, on the grounds that limits on contributions serve to prevent corruption and the appearance of corruption within our democratic system
National Landscape: Contribution Limits Across the country, there is significant variety in how } states limit contributions to candidates: Differences in amounts : In California, an individual } may contribute up to $31,000 per election (primary & general) to a candidate for governor; in Alaska, the limit on an individual’s total contributions to a candidate for governor is $500 per year Different limits by office: Statewide vs. legislative vs. } local office candidates. Different limits by source: Individual contributors vs. } other sources of contributions (PACs, political parties, corporations); only 7 states (including Virginia) allow direct contributions from corporations to candidates
National Landscape: Contribution Limits National average & median state contribution limits for } 2019-2020 election cycle (source-National Conference of State Legislatures): Gubernatorial candidates: } Nat’l avg: $6,126 • Nat’l mean: $4,000 • State legislative candidates: Ø Nat’l avg.: $2,947 (state senate) & $2,539 (state house) • Nat’l mean: $2,000 (state senate) & $1,600 (state • house)
National Landscape: Contribution Limits Contribution Limits in Maryland (Md. } Code, Elec. Law Sec. 13-226): Maryland has a $6,000 limit, per } contributor, on total contributions to any statewide, legislative, or local office candidate within an election cycle With a few minor exceptions, } Maryland’s $6,000 limit applies across-the-board to all sources of campaign contributions, including individuals, political parties, PACs, and other organizations
National Landscape: Contribution Limits Prohibitions on campaign contributions from specific } sources (i.e., “Pay-to-play” restrictions): Some states prohibit candidates from receiving any } contributions from certain sources, such as government contractors, lobbyists, and public utility companies “Pay-to-play” restrictions typically apply to highly regulated } persons & entities that stand to benefit from very specific government action & whose campaign contributions present special concerns about corruption Courts have upheld prohibitions on contributions from } certain sources when there is a strong record of corruption & impropriety involving the sources who are prohibited from making contributions
National Landscape: Contribution Limits At least 5 states specifically prohibit public utility companies } from making contributions to candidates for public utility commissions, including Alabama, Georgia, Mississippi, New Mexico, & Oklahoma New Mexico prohibits contributions from both utility } companies and the owners, executives, and certain employees of those companies to candidates for the state’s utility commission Unlike in Virginia, voters in these 5 states elect the } members of the regulatory commissions that oversee public utility companies
National Landscape: Public Financing of Elections At least 15 states, plus Washington, D.C., provide public } financing for candidates (and N.Y. State is now in the process of creating public financing for statewide and legislative candidates) Many cities & counties also have public financing programs } for local office candidates Courts have upheld the constitutionality of public financing since } it: Helps to prevent corruption, and } Promotes democratic participation among the public at } large
National Landscape: Public Financing of Elections The existing state programs vary considerably: } By offices eligible (e.g., MD & NJ programs } only available to gubernatorial candidates) By mechanics (type of public financing; } candidate qualification requirements for public funds; conditions of participation for candidates)
National Landscape: Public Financing of Elections Types of Public Financing Programs: } Grant/ “Clean Elections” : Upon qualifying for the program, } candidates receive a single grant of public money to fund their entire campaign (e.g., Arizona) Matching funds: State matches private contributions given to } publicly financed candidates with public dollars at a certain rate (e.g., Hawaii matches state residents’ contributions with public funds at $1-to-$1 public-to-private dollar ratio) Vouchers: Eligible individuals receive credits of public funds to } contribute to candidates in the public financing program (currently only available in Seattle) Hybrids: Usually provide a combination of grants and matching } funds to candidates in the program (e.g., Washington, D.C.)
National Landscape: Disclosure Every state imposes at least some disclosure requirements for } campaign contributions and expenditures There is variety across states in who must disclose and how much } information is disclosed Courts have broadly upheld campaign disclosure laws, } recognizing these laws: (i) Provide valuable information to voters, } (ii) Prevent corruption & promote accountability in } government, and (iii) Help with enforcement of contribution limits and other } campaign finance laws
National Landscape: Disclosure Types of Disclosure Laws: } Reporting: Apply to candidates, } parties, PACs, and other organizations that raise or spend money in elections. Disclaimers: Public identification of } the sponsors of political advertising (i.e., “Paid for by” statements ) Political Ad Archives: Publicly } searchable databases of political advertisements
Nat’l Landscape: Disclosure Donor Disclosure Requirements : } Candidates, political parties, and registered PACs } generally must disclose the name, address, and date & amount of all sources of large contributions on campaign finance reports If they do not qualify as “political action committees,” } outside groups that pay for independent expenditures often are not required to report their donors on campaign finance reports, including in Virginia Problems with “dark money”: Non-PAC organizations that } funnel money from other sources to super PACs and groups that make independent expenditures often have NO disclosure obligations
Virginia Legislation: Contribution Limits S.B. 1146 } $10,000 limit per “person,” per election cycle on contributions to a statewide } or legislative candidate, with no more than $5,000 for the primary No limits no contributions made by political party committees to candidates. } S.B. 1497 } $2,500 (legislative)/ $5,000 (statewide) contribution limit per “person” (other } than PAC or political party) in a calendar year. PACs can contribution $5,000 (legislative)/ $10,000 (statewide) per year to a } candidate No limits on contributions made by political party committees to candidates. }
Virginia Legislation: Contribution Limits S.B. 1114 } Prohibits a candidate from receiving contributions from a } “public service corporation” or the corporation’s PAC The bill’s prohibition would not apply to contributions from the } owners or executives of a public service corporation, or to contributions made by a public service corporation to a political party committee or PAC
Virginia Legislation: Public Financing H.B. 1829: } Authorizes cities and counties in Virginia to enact } local laws creating public financing for city or county office candidates The bill would give cities and counties discretion in } administering public financing programs, including choosing the type of program (matching funds v Maryland enacted similar legislation in 2013, and } three MD counties have subsequently created public financing programs for county candidates.
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