BEST PRACTICES IN CAMPAIGN FINANCE LEGISLATION National Policy - - PowerPoint PPT Presentation

BEST PRACTICES IN CAMPAIGN FINANCE LEGISLATION

National Policy Trends & Legislative Opportunities in Virginia

Austin Graham, Legal Counsel Campaign Legal Center December 19, 2019

About the Campaign Legal Center

A NONPARTISAN, NONPROFIT 501(C)(3) ORGANIZATION BASED IN WASHINGTON, D.C. MISSION: CLC ADVANCES DEMOCRACY THROUGH LAW AT THE FEDERAL, STATE, AND LOCAL LEVELS TO GIVE EVERY AMERICAN AN EQUITABLE OPPORTUNITY TO PARTICIPATE IN OUR DEMOCRATIC PROCESS AREAS OF FOCUS: CAMPAIGN FINANCE, ETHICS, VOTING RIGHTS, AND REDISTRICTING LEARN MORE ABOUT OUR WORK AT CAMPAIGNLEGAL.ORG

Today’s Presentation

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• I. Review of National Landscape:

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Contribution Limits

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Public Financing of Elections

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Disclosure of Political Spending

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• II. Discussion of Virginia Legislation

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• III. Question & Answer Session

National Landscape: In General

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There is a lot of variety in how states regulate campaign finance

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Federal election law applies only to candidates for federal office, and to political parties, PACs, & other

• rganizations that spend money to

support or oppose federal candidates.

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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

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Across the country, there is significant variety in how states limit contributions to candidates:

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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

• n an individual’s total contributions to a candidate for

governor is $500 per year

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Different limits by office: Statewide vs. legislative vs. local office candidates.

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Different limits by source: Individual contributors vs.

• ther sources of contributions (PACs, political parties,

corporations); only 7 states (including Virginia) allow direct contributions from corporations to candidates

National Landscape: Contribution Limits

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National average & median state contribution limits for 2019-2020 election cycle (source-National Conference of State Legislatures):

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Gubernatorial candidates:

• Nat’l avg: $6,126
• Nat’l mean: $4,000

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State legislative candidates:

• 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

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Contribution Limits in Maryland (Md. Code, Elec. Law Sec. 13-226):

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Maryland has a $6,000 limit, per contributor, on total contributions to any statewide, legislative, or local

• ffice candidate within an election

cycle

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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

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Prohibitions on campaign contributions from specific sources (i.e., “Pay-to-play” restrictions):

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Some states prohibit candidates from receiving any contributions from certain sources, such as government contractors, lobbyists, and public utility companies

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“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

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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

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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

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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

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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

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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)

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Many cities & counties also have public financing programs for local office candidates

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Courts have upheld the constitutionality of public financing since it:

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Helps to prevent corruption, and

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Promotes democratic participation among the public at large

National Landscape: Public Financing of Elections

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The existing state programs vary considerably:

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By offices eligible (e.g., MD & NJ programs

• nly available to gubernatorial candidates)

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By mechanics (type of public financing; candidate qualification requirements for public funds; conditions of participation for candidates)

National Landscape: Public Financing of Elections

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Types of Public Financing Programs:

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Grant/ “Clean Elections”: Upon qualifying for the program, candidates receive a single grant of public money to fund their entire campaign (e.g., Arizona)

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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)

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Vouchers: Eligible individuals receive credits of public funds to contribute to candidates in the public financing program (currently only available in Seattle)

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Hybrids: Usually provide a combination of grants and matching funds to candidates in the program (e.g., Washington, D.C.)

National Landscape: Disclosure

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Every state imposes at least some disclosure requirements for campaign contributions and expenditures

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There is variety across states in who must disclose and how much information is disclosed

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Courts have broadly upheld campaign disclosure laws, recognizing these laws:

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(i) Provide valuable information to voters,

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(ii) Prevent corruption & promote accountability in government, and

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(iii) Help with enforcement of contribution limits and other campaign finance laws

National Landscape: Disclosure

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Types of Disclosure Laws:

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Reporting: Apply to candidates, parties, PACs, and other

• rganizations that raise or spend

money in elections.

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Disclaimers: Public identification of the sponsors of political advertising (i.e., “Paid for by” statements )

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Political Ad Archives: Publicly searchable databases of political advertisements

Nat’l Landscape: Disclosure

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Donor Disclosure Requirements:

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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

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If they do not qualify as “political action committees,”

• utside groups that pay for independent expenditures
• ften are not required to report their donors on

campaign finance reports, including in Virginia

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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

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S.B. 1146

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$10,000 limit per “person,” per election cycle on contributions to a statewide

• r legislative candidate, with no more than $5,000 for the primary

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No limits no contributions made by political party committees to candidates.

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S.B. 1497

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$2,500 (legislative)/ $5,000 (statewide) contribution limit per “person” (other than PAC or political party) in a calendar year.

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PACs can contribution $5,000 (legislative)/ $10,000 (statewide) per year to a candidate

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No limits on contributions made by political party committees to candidates.

Virginia Legislation: Contribution Limits

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S.B. 1114

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Prohibits a candidate from receiving contributions from a “public service corporation” or the corporation’s PAC

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The bill’s prohibition would not apply to contributions from the

• wners 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

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H.B. 1829:

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Authorizes cities and counties in Virginia to enact local laws creating public financing for city or county

• ffice candidates

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The bill would give cities and counties discretion in administering public financing programs, including choosing the type of program (matching funds v

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Maryland enacted similar legislation in 2013, and three MD counties have subsequently created public financing programs for county candidates.

Virginia Legislation: Disclosure

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• Del. Simon’s Honest Ads Act:

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Amends certain definitions in Virginia’s campaign finance law, including “advertisement,” to apply to

• nline political ads

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Requires online political advertising to include disclaimer statements in same manner as TV, radio, and print ads

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Requires “online platforms” and other media outlets to

• btain proof of identify from persons who pay for

political advertising on the platforms or outlets

Q&A