Green Party Draft for the California Public Financing of Candidates Law (2/4/04)

Sec. 1 Title

This chapter shall be known as the California Public Financing of Candidates Act of 2006.

Sec 2.  The people of California declare our intent to create a Public Financing of Candidates (PFOC) system that will:

A.     Improve the integrity of California State government by diminishing the influence of special-interest money.

B.     Provide all constituents equal access to their representatives regardless of their ability to donate.

C.     Decrease and reverse the rapidly escalating costs of political campaigns.

D.     Save the taxpayers millions of dollars by avoiding legislative and regulatory decisions made on behalf of major campaign contributors.

E.      Promote freedom of speech and equal access for all candidates by mandating public debates and by funding media, mailing, and printing costs for all participating candidates.

F.      Replace paid signature gatherers with volunteers.

G.     Encourage participation of a greater number and diversity of candidates, giving voters more choices.

H.     Allow all citizens equal and meaningful participation in the democratic process by removing wealth as a major factor affecting whether or not a person becomes a candidate.

I.        Provide candidates with funding for competitive campaigns.

J.       Create equal funding opportunities for incumbents and challengers, freeing them from the incessant rigors of fundraising.

K.    Provide candidates with the option to be either publicly or privately funded.

Sec. 3.  Applicability of the Political Reform Act

A.     Unless specifically superseded by this Act, the definitions and provisions of the Political Reform Act of 1974, Government Code Section 81000 et seq. shall govern the interpretation of the law.

B.     The Fair Political Practices Commission (FPPC) which already has regulation and enforcement powers for campaign finance and spending, will administer the Act.  Additions to the FPPC will state that:

1.      No more than two members of the FPPC shall be from the same political party. Parties shall be chosen in decreasing order of number of votes that the  party’s candidate received in the most recent gubernatorial election.

2.      The five FPPC members shall be appointed in the usual way: two by the Governor and one each by the Secretary of State, Attorney General and Controller. The state organizations of the political parties shall present a list of recommendations from which the officials may choose a member for the FPPC.  The lists will be used in the order that a political party’s candidate for Governor placed  in the last gubernatorial election.

3.      FPPC members are appointed by elected officials to one four year term.  When a vacancy occurs, or the commissioner’s term expires, the same official that made the original appointment makes the new appointment.

4.      The additional duties imposed on the FPPC by this Act include general administration of the PFOC process, education of candidates and voters, and the coordination of candidate debates.  The FPPC will make every attempt to insist that the Federal Communications Commission reinstate the Fairness Doctrine for political information on the media.  Funding to support these activities will come from the PFOC Fund.

5.      The FPPC may change requirements on the number of signatures required if the number of candidates increases to such a degree that the financial security of the PFOC is threatened or if the expenditures might exceed the $10.00 per registered voter per year can finance.

Sec. 4.  Offices covered by the PFOC Act.

Governor, Attorney General, Lieutenant Governor, Secretary of State, Treasurer, Controller, Insurance Commissioner, Superintendent of Public Instruction, and members of the Board of Equalization, Assembly and State Senate.

Sec. 5.  Qualifications for Public Financing of Candidates funds.

A.     The candidates will gather a specified number of qualifying signatures accompanied by a $5.00 endorsement contribution to the general PFOC fund from registered voters in the electoral district being contested. The number of qualifying signatures are:

B.     Voter’s rolls for each county in the district will be used by the Registrar of Voters of that County to verify signatures.

C.     Only volunteers registered to vote in the district of the candidate may collect qualifying contributions – no paid collectors.

D.     The only private donations PFOC candidates shall accept are seed money contributions.

E.      PFOC candidates shall spend no personal funds for their campaigns, except for seed money before the signature gathering begins.

F.      Maximum limits on seed money which may be used only before Primary period are specified below:

G.     Unspent seed money at the time of the grant shall be paid into the PFOC Fund (See Section 10).

H.     A qualified candidate must not make seed money expenditures of more than a total of five hundred dollars of the candidate’s personal money

I.        Candidates must participate in at least one candidate debate arranged by the FPPC.

J.       Seed money contributions are limited to $100 per contributor.  Only individuals may contribute seed money, not organizations or corporations.

K.    All candidates shall maintain a single campaign account and file financial reports as required.

L.      Candidates shall establish their party affiliation at least one year prior to applying for qualification as  PFOC candidates, or they may run as party non-affiliated candidates

Sec. 6  Endorsement contributions

A.     To qualify as an endorsement contribution, a contribution must be:

1.      Made by a qualified elector, who at the time of the contribution is registered in the electoral district of the office the candidate is seeking and who has not given another qualifying contribution to that candidate during that election cycle;

2.      Made by a person who is not given anything of value in exchange for the qualifying contribution;

3.      In the sum of five dollars, exactly;

4.      Received unsolicited during the qualifying period or solicited during the qualifying period by a person who is not employed or retained by the candidate and who is not compensated to collect contributions by the candidate or on behalf of the candidate;

5.      If made by check or money order, made payable to the candidate's campaign committee, or if in cash, deposited in the candidate's campaign committee's account;

B.     The endorsement contributions must be paid into the PFOC Fund and accompanied by a three part reporting slip that includes the printed  name, registration address, and signature of the contributor and the name of the candidate being endorsed.  Included must be the date of the contribution, and the printed name and signature of the solicitor.

C.     A copy of the reporting slip shall be given as a receipt to the contributor, and the candidate’s campaign committee shall retain another copy.  Delivery of an original reporting slip to the Secretary of State shall excuse the candidate from disclosure of these contributions on campaign finance reports.

D.     Volunteer campaign workers must do the gathering of these endorsements and contributions.  This Act is designed to cut the cost of an election and to strengthen our democracy by eliciting the active participation of the citizens.   The volunteer signature gatherer must be registered to vote in the district of the candidate for whom they are gathering signatures.

E.      Political parties may organize volunteers, but may not pay individuals to gather signatures.

Sec. 7.  Certification

A.     No more than one week after a candidate applies for Public Financing of Candidates benefits, the Commission shall certify  that the candidate is or is not eligible.  Unless, within that time, the commission denies an application and provides written reasons, the candidate shall be certified as a participating candidate.  Eligibility shall be revoked if the candidate violates the requirements of this Act, in which  case all Public Financing of Candidates funds must be repaid.

B.     The candidate’s request for certification shall be signed by the candidate and the candidate’s campaign treasurer under penalty of perjury.

Sec. 8.  PFOC benefits 

A.     Candidates who qualify for PFOC funds for the campaign:

1.      Shall receive PFOC funds for the election, the amount which is specified in Section 9.  This funding may be used to finance any and all campaign expenses during the particular campaign period for which it is allocated.

2.      May receive additional PFOC funds to match any excess expenditures spent by a  non-participating candidate up to 6 times the initial PFOC grant amount.

3.      Shall make available for public inspection all bank accounts, campaign finance reports and financial records relating to the candidate’s campaign, either by immediate disclosure through electronic means or at the candidate’s campaign headquarters, in accordance with rules adopted by the FPPC.

4.      Return all funds remaining in the campaign fund after the election to the Public Financing of Candidates Fund.

Sec. 9.  Public Funds for Candidates

A.     Initial PFOC grant amounts

B.     Candidates in contested primaries may elect to spend up to 2/3 of the total allotment on their primary campaigns.

C.     Non-participating candidates must report campaign spending and independent expenditures benefiting them to the FPPC.  If the total of those expenditures exceeds the initial PFOC grant for that office, that will trigger matching grants to the participating candidates. The total amount given to a participating candidate is capped at 6 times the initial PFOC grant amount.

D.     If any non-participating candidate exceeds these caps, the FPPC shall issue a press release so stating, and notify all other candidates for that office.

E.      Candidates unopposed in the Primary receive 40% of initial Primary funding and 100% of initial General election funding.

F.      Party non-affiliated candidates receive 40% of initial Primary funding and 100% of initial General elction funding.

G.     Candidates unopposed in the General election receive no PFOC funding.

Sec. 10.  Funding for the PFOC Act

A.     A Public Financing of Candidates Fund managed by the FPPC will be established.  The PFOC Fund will accumulate monies sufficient to provide for operation of the PFOC Act over a four year election cycle. 

B.     Resources for the fund

1.      A voluntary $5.00 check-off on the state income tax

2.      Voluntary contributions collected by the candidate  from their signature gathering for qualification.

3.      Voluntary contributions to the PFOC Fund of up to $500, which will be eligible for a tax credit on the CA income tax.

4.      Unspent seed money and unspent campaign funds

5.      Fines levied by the FPPC

6.      When a non-participating candidate's contributions exceed the PFOC grant allowance, a 10% assessment of the amount in excess of the PFOC grant allowance shall be paid from the candidate's campaign fund into the PFOC Fund.

7.      Funds shall be appropriated by the legislature from the General Fund to cover all necessary expenses not covered by the above resources.

Sec. 11.  Controlling the cost of PFOC

An overall spending cap will be set at $10.00 per California registered voter per year.

Sec. 12.  The Election Cycle

The election cycle for PFOC is divided into four phases: Exploratory, Qualifying, Primary and General Election.

A.     Exploratory Period

1.      Starts 18 months prior to the primary (statewide) or 12 months before the legislative primary.   

2.      During this period the candidate may collect and spend seed money up to the amounts specified in 5f

3.      3.Candidates may spend up to no more than $500. of personal funds during the exploratory period.

4.      Candidates may raise money during the Exploratory Period, in preparation for becoming a PFOC candidate.  Seed money contributions are limited to $100 per contributor, and may be from individuals only, not organizations or corporations. 

B.     Qualifying Period

1.      Begins 10 months before primary (statewide) or 7 months (legislative)

2.      Candidate declares intent to participate and starts collecting qualifying $5. contributions/signatures from registered voters in the contested electoral district.

3.      Candidates may spend seed money they have collected.

4.      Candidates submit qualifying contributions and signatures to the FPPC.

5.      The FPPC certifies the candidate as a PFOC candidate.

6.      Candidates turn in unspent seed money to the FPPC.

C.     Primary Period

1.      Starts 4 months before the Primary election.

2.      Candidates receive Primary PFOC grant funds by way of a debit card from the PFOC funds.

3.      Grant amounts are adjusted to provide matching funds for participating candidates when the total amount expended on behalf of a non-participating opponent exceeds the initial Public Financing of Candidates grant.

D.     General Election Period

1.      Begins the day after the primary election.

2.      Unsuccessful Primary candidates turn in unspent campaign funds to the FPPC.

3.      Successful candidates receive General Election initial funding grant.

4.      Grant amounts are adjusted to provide matching funds for participating candidates when the amount expended on behalf of a non-participating opponent exceeds the initial PFOC grant.

Sec. 13.  Political Party contributions

A.     Political parties may assist PFOC candidates in all campaign activities in all phases of the campaign except funding.

B.     Political parties may not provide direct financial assistance.

C.     Political parties may sponsor events, meetings and debates to inform the voters and seek their active participation. 

Sec. 14.  Ballot pamphlet statements and filing fees

A.     Participating PFOC candidates' filing fees shall be waived.

B.     Participating PFOC candidates are entitled to have their statements published in the voter pamphlet in all required languages at no cost. 

C.     PFOC candidates are entitled to identify themselves as such.

D.     Non-participating candidates will follow all election regulations in effect prior to the passage of PFOC.

E.      Non-participating candidates will file timely spending reports during all phases of the campaign cycle.

F.      Non-participating candidates must pay filing fees.

G.     Non-participating candidates must pay to have their statements published and translated in the voter pamphlet.

Sec. 15.   Penalties and fines for violations of the PFOC Act

To be determined, consistent with electoral campaign law, but include the following:

A.     A participating candidate must repay the PFOC grant in full in any of the following cases: If he or she:

1.      Misses a filing deadline by more than 30 days

2.      Spends more than $500 of personal funds to gather qualifying signatures

3.      Spends more than the seed money limit in gathering qualifying signatures

4.      Takes seed money from non-individuals individuals (such as organizations or corporations)

OR

5.      Refuses to participate in the FPPC-sponsored debates

B.     The FPPC shall determine and assess fines for violations fo the PFOC Act

Sec. 16.   Adjustment for inflation

Every 2 years the FPPC shall adjust dollar values of PFOC grants and seed money limits by the percentage change in the Consumer Price Index.