Donors Seek Biggest Bang for Their Political Bucks

Orange County state legislators, most of whom face little opposition at the polls, raise hundreds of thousands of dollars every year, and all but a handful of the money comes from individuals or groups directly affected by the laws they make, campaign finance reports show.

At least four of the county’s legislators say they have seen colleagues improperly pressure lobbyists to contribute money, punish lobbyists who won’t contribute or manipulate legislation to maximize contributions, though none would name names or provide details.

“Campaign fund raising has gone beyond obscenity,” said Sen. John Seymour (R-Anaheim), the county’s top political fund-raiser last year. “If we don’t do something about reforming it, I think it could bring down the whole system.”

There is no law in California limiting the amount of money legislators can spend on their campaigns, and there are no limits on how much individual contributors may give. Legislators are not allowed to accept contributions in exchange for specific votes, but anything else goes.

The manner in which campaign contributions are spent also is virtually unrestricted in California. Last year alone, Orange County legislators spent more than $800,000 of the nearly $2 million they raised for 1988 elections on items not directly related to their campaigns for office. That includes spending for travel, gifts for staff members and friends, restaurant meals, tickets to civic and entertainment events, and donations to other political campaigns.

“I’ve not alleged that anybody is a crook or on the take,” said Assemblyman Ross Johnson (R-La Habra), a longtime advocate of change. “But it is a system that has grown up over the years that is plainly wrong. The people of California have a right to assume that their elected representatives are going to serve them, not whoever can shovel the most campaign cash into the kitty.”

Johnson is a co-author of Proposition 73, one of two measures on the June 7 ballot that are designed to put new restrictions on campaign contributions and ban the transfer of funds from one politician to another. The other measure, Proposition 68, is sponsored by former insurance company executive Walter Gerken of Newport Beach and a coalition of consumer and business groups.

Nine of Orange County’s 13 state lawmakers support Proposition 73. Assemblyman John R. Lewis (R-Orange) and Sens. Edward R. Royce (R-Anaheim) and Cecil Green (D-Norwalk) say they have no position on the measure, and Sen. William Campbell (R-Hacienda Heights) opposes it. Every member of the delegation except Green opposes Proposition 68; Green says he is neutral on 68.

In an effort to assess the state’s current campaign-financing system as it relates to Orange County’s legislators, The Times early this year began reviewing and tabulating all the contributions the county’s lawmakers collected during 1987 for election campaigns this year. After a thorough review of campaign finance reports filed by each of the county’s legislators with the secretary of state’s office, all of last year’s contributions and expenditures were analyzed with the help of a computer.

Among the findings:

- During 1987, the county’s 13 state lawmakers accepted 3,591 contributions of $100 or more toward 1988 campaigns, for a total of $1,937,264. The average contribution was $540. Sen. Seymour was the top fund-raiser, bringing in $306,000.

- Businesses, political action committees and individuals with connections to the real estate and development industries contributed almost $322,000 to the county’s legislators last year, more than any other single interest group. Other big contributors included the insurance industry, doctors and gambling interests.

- About 65% of the money contributed to Orange County lawmakers came from sources outside Orange County. Only one county lawmaker, Assemblyman Richard E. Longshore (R-Santa Ana), raised at least half of his campaign funds from sources within the county.

- Sources within the county accounted for $486,478 in contributions to county lawmakers. About half of that amount came from contributors in four cities: Newport Beach, Santa Ana, Irvine and Anaheim. Seymour was the recipient of almost 25% of the money contributed within the county to county lawmakers.

The study confirmed in stark detail a belief long held by observers of Sacramento politics--that businesses and industry groups contributing to campaigns tend to funnel their money to the legislators best-positioned to support or defeat bills directly affecting the donors’ livelihoods.

The analysis showed that many of the county’s legislators collected the largest shares of their campaign funds from industries that are regulated by key committees on which they serve. On these committees, a few votes are often enough to block any measure’s passage into law.

For example, Assemblywoman Doris Allen (R-Cypress) and Sen. Royce, who serve on the Legislature’s health committees, collected the largest shares of their campaign money from doctors and other medical interests.

Assemblymen Lewis and Johnson serve on the Assembly Finance and Insurance Committee. The two interest groups contributing the most to both of them were the insurance and banking industries.

Sen. Campbell, who serves on the committee that oversees California horse racing and the state lottery, got more campaign money from gambling interests than from any other private interest group.

Sen. Marian Bergeson, a Newport Beach Republican who is chairwoman of the Senate Local Government Committee, got the largest share of her campaign money from developers and real estate interests. The Local Government Committee has been in the thick of an ongoing battle over how to finance new roads, sewers, schools and other public facilities needed for new development.

Every year, contributors who want to become major players in Sacramento hire lobbyists and send them equipped with checks to dozens of fund-raising parties. Most of the parties are held in the final few weeks of the legislative session, when the fate of hundreds of bills will be decided in an atmosphere so frenzied that even seasoned insiders often don’t know what has been done until weeks later.

But it is difficult to determine whether, or to what extent, contributions influence individual votes. In many instances the money is going to lawmakers who probably would agree with the contributor’s position even without a donation.

In a series of interviews, every member of the Orange County legislative delegation told The Times that his or her votes had never once been influenced by a campaign contribution.

Said Assemblyman Longshore of lobbyists with campaign contributions to spread around: “You let them know when they walk in the door you’re willing to listen. If they have good, common-sense arguments for their position, then you go along. If they don’t, you say, ‘I’m sorry, in spite of your donations, I still have got to go against you.’ ”

And several of the county’s legislators said they saw nothing wrong with soliciting and accepting campaign money from the industries that come before their committees.

“One reason that lobbyists make contributions is because they wish to argue their case with legislators, and they wish to set up meetings and come before the legislators and explain their rationale and their position on issues,” Sen. Royce said. “So professions tend to contribute to those legislators who are serving on committees where there is a likelihood that legislation affecting that profession might come up.”

Assemblyman Lewis said the relationship between campaign contributions and committee assignments is “an obvious thing.”

“The way the committee process works, the people you deal with and meet with legislatively are greatly (weighted) toward those people who come before the committees you sit on,” he said. He added that he has “a lot better rapport and a much greater relationship with advocates in the banking and savings and loan industries and some of the insurance companies” than with industries whose interests are handled by committees on which he does not serve.

Some, however, view the process differently.

“The vast majority of the money comes from contributors who want something rather specific out of the legislative process,” said Walter Zelman, executive director of Common Cause, a private watchdog group that advocates partial public financing of campaigns. “They (contributors) go to people they gave to and say, ‘Help us.’ That’s a fundamentally unhealthy way to run a political system.”

Zelman is a proponent of Proposition 68. It would limit individuals’ donations to California legislative campaigns to $1,000 per candidate, while capping contributions from groups at $2,500 or $5,000, depending on the makeup of the organization.

According to a recent report published by the California Commission on Campaign Financing, 23 states limit the amounts that individuals may give to a political campaign, while 35 prohibit or cap corporate contributions. Another 17 states restrict donations from political action committees, and 17 states also place controls on transfers of funds from one politician’s campaign to another.

In New York, for example, a corporation, labor union or political action committee may contribute a maximum of $5,000 to all candidates during a calendar year. The same limit applies to transfers of money among campaign committees.

In Texas, corporate and labor union contributions are flatly prohibited, and individuals or political action committees may not contribute to a lawmaker’s campaign while the Legislature is in session.

While no Orange County legislator interviewed for this article admitted being influenced by a campaign contribution, several said they believe some of their colleagues are swayed by the money. And many county lawmakers said they think the competition for contributions is harming the legislative process.

“The vast amounts of money tend to have the general public believe that money affects the outcome of legislation,” said Assemblyman Robert C. Frazee, a Carlsbad Republican whose district includes part of south Orange County. “It’s hard to deny that, when you see the amount of money put in on one side or the other of an issue.

“I guess, honestly, there are decisions made around this place that are based on their value for raising campaign funds.”

Several county lawmakers said elected officials sometimes exact money from lobbyists under a thinly veiled threat of dire consequences.

“Some contributors feel themselves held for ransom, if you will,” Johnson said.

Legislators openly acknowledge that they return phone calls from major contributors promptly and that those who give the most money find it easier to meet in person with lawmakers at key moments.

“When someone is a big contributor, a big supporter, when they call or come by, it’s just human nature that you pay a little closer attention and listen to them a little closer,” said Assemblyman Dennis Brown (R-Signal Hill), whose 58th District stretches into Orange County to include Seal Beach and part of Huntington Beach.

But sometimes the stakes are higher.

Bergeson said she knows that lobbyists who refuse to contribute when asked for money risk their clients’ interests.

“I’ve seen it happen,” Bergeson said. “I’ve seen those who refuse to attend a fund-raiser (punished). It’s done subtly; it’s reflected in the way people vote.”

Seymour was uniquely positioned to see the system work while serving as chairman of the Senate Republican Caucus for three years, a position that made him the chief fund-raiser for the party’s senators and Senate hopefuls.

He described one technique he sometimes used to obtain campaign funds from companies and interest groups:

“You take a look at the campaign finance reports, and you say to XYZ Co.: ‘You gave the Democrats $25,000. We (Republicans) normally vote for you, and you only gave us $10,000. This is inequitable. You’ve got to contribute more to us.’ ”

Seymour said he never threatened a potential contributor. He didn’t need to.

“Obviously, the contributors would like to go hide,” he said. “They’d like not to return the phone call. But they do business here. They need access. They’ve got to respond in one way or another. So they very carefully sit down with their political action committee budget, and they very carefully allocate that money.

“They know they’re going to be held accountable.”

Legislators also hold one another accountable at voting time, several lawmakers said. Party leaders raise huge amounts of money and distribute it to candidates they consider to be most in need through the kinds of campaign-fund transfers that would be prohibited by both Proposition 68 and Proposition 73. Later, the recipients are reminded of the help and are expected to remain loyal.

“The leadership, in either political party, on the close votes call their chits due,” Seymour said. “They say, ‘I was there when you needed me, and I’ll be there again, if. . . .’ ”

But politicians are not alone in applying leverage linked to campaign contributions. Private donors to political campaigns are not above reminding legislators that they expect something in return for their generosity.

When Assembly Republicans last fall were blocking passage of a business-backed bill to speed highway construction, members of Orange County’s Lincoln Club, a major Republican fund-raising group, threatened to drop their financial support for the GOP lawmakers if the measure died. Later, several Orange County builders boycotted a fund-raiser held in the county by Assembly Republican leader Pat Nolan of Glendale.

“We’re surely not going to consistently give to a candidate that isn’t supporting our position,” Brian Theriot, a spokesman for Newport Beach developer J.M. Peters Co., said in a recent interview. “A lot of us got together and said, ‘Let’s hold back and see when these people are going to get on the right track.’ ”

For many, that kind of pressure tactic is an accepted and perfectly acceptable way of doing business. Indeed, some contributors and legislators see no need for changes in California’s campaign-finance system.

Assemblyman Nolan Frizzelle (R-Huntington Beach), for one, said he does not think the state’s campaign finance laws need modification, though he supports Proposition 73 as a less drastic alternative to Proposition 68 on the June ballot.

“I can’t tell you more than a half-dozen people who are for sale and really have their votes influenced that much” by campaign money, Frizzelle said.

Sen. Campbell said he believes public disclosure of campaign contributions is a sufficient deterrent to wrongdoing.

“With our disclosure, we know who contributes to whom, and I think the public is intelligent enough to figure out why people contribute,” Campbell said. “It’s in the finest American tradition that you support a person who has a philosophy that is reasonably compatible with yours. It’s a free marketplace out there. If you don’t like the candidate, you support another candidate.”

But where Campbell sees a free market, others see an auction in which the big spenders are bidding for the services of the state’s elected representatives.

“There’s a moral threshold for every human being,” Seymour said. “Some people will rob a bank or give a vote for very little money. With other people it takes a larger sum. . . . It depends on the human being. But it’s there. It’s real. Everybody has a price in life.”

FUND RAISING BY ORANGE COUNTY’S ASSEMBLY MEMBERS IN 1987 Doris Allen 71st District Raised during 1987$62,150 Contributors 164 Average Contribution $378 Where the Money Came From From Orange County $24,275 (39%) Cities where most contributions came from: $5,000--Santa Ana $2,950--Anaheim $2,500--Newport Beach Outside Orange County $37,875 (61%) Cities where most contributions came from: $16,300--Sacramento $6,900--Los Angeles $4,600--San Francisco Corporations $21,875 (34%) Political Action Committees $32,300 (50%) Individuals $7,975 (12%) Notes Allen, who serves on the Assembly Health Committee, collected a higher percentage of her funds from doctors and medical interests than any other Orange County lawmaker. Dennis Brown 56th District Raised during 1987 $260,127 Contributors 559 Average Contribution $465 Where the Money Came From From Orange County $39,154 (15%) Cities where most contributions came from: $15,200--Hunt. Beach $4,854--Garden Grove $3,850--Seal Beach Outside Orange County 220,973 (85%) Cities where most contributions came from: $78,250--Long Beach $32,475--Sacramento $29,500--Los Angeles Corporations $138,050 (53%) Political Action Committees $62,379 (24%) Individuals $58,550 (23%) Notes Brown’s 559 contributions were the most among Orange County lawmakers. No other county lawmaker collected as much in one city. Gil Ferguson 70th District Raised during 1987 $170,348 Contributors 465 Average Contribution $366 Where the Money Came From From Orange County $79,474 (46.6%) Cities where most contributions came from: $23,462--Newport Bch $15,799--Irvine $6,175--Santa Ana Outside Orange County $90,874 (53.4%) Cities where most contributions came from: $23,662--Sacramento $9,675--Los Angeles Corporations $80,137 (45%) Political Action Committees $31,537 (18%) Individuals $48,689 (27%) Notes Ferguson collected a larger share of his contributions from individuals than any other county lawmaker and collected more in contributions of less than $100 and more from retirees than any of his colleagues. Robert C. Frazee 74th District Raised during 1987 $29,200 Contributors 47 Average Contribution $621.28 Where the Money Came From From Orange County $2,250 (7.7%) Cities where most contributions came from: $1,250--Irvine $500--Newport Beach Outside Orange County $26,950 (92.3%) Cities where most contributions came from: $9,250--Sacramento $3,800--San Francisco $3,250--Los Angeles Corporations $15,650 (54%) Political Action Committees $12,250 (43%) Individuals $1,000 (3%) Notes Frazee collected less money during 1987 and raised a higher percentage of his funds from Sacramento sources than any other county lawmaker. Nolan Frizelle 69th District Raised during 1987 $72,687 Contributors 205 Average Contribution $354 Where the Money Came From From Orange County $19,234 (26%) Cities where most contributions came from: $4,550--Fountain Val. $2,900--Irvine $1,850--Hunt. Beach Outside Orange County $58,453 (74%) Cities where most contributions came from: $17,950--Sacramento $10,200--Los Angeles $5,900--San Francisco Corporations $33,709 (45%) Political Action Committees $33,275 (45%) Individuals $4,800 (6%) Notes Frizzelle’s average contribution of $354 was the smallest among the 13 Orange County legislators. Ross Johnson Raised during 1987 $124,200 Contributors 234 Average Contribution $530.77 Where the Money Came From From Orange County $13,950 (11.23%) Cities where most contributions came from: $5,200--Yorba Linda $3,050--Fullerton Outside Orange County $110,250 (88.77%) Cities where most contributions came from: $33,050--Sacramento $16,050--San Francisco $14,500--Los Angeles Corporations $54,000 (43%) Political Action Committees $53,550 (43%) Individuals $11,650 (9%) Notes Of legislators whose districts are predominantly within Orange County, Johnson received the smallest percentage of his campaign funds from the county and the highest percentage from Sacramento. John R. Lewis 67th District Raised during 1987 $102,181 Contributors 275 Average Contribution $371 Where the Money Came From From Orange County $22,131 (15%) Cities where most contributions came from: $5,331--Yorba Linda $3,100--Orange $2,600--Santa Ana Outside Orange County $80,050 (85%) Cities where most contributions came from: $22,150--Sacramento $16,100--Los Angeles $7,300--San Francisco Corporations $47,550 (46%) Political Action Committees $39,300 (38%) Individuals $10,900 (11%) Notes Lewis, a member of the Finance and Insurance Committee, received a larger share of his campaign money from the insurance industry than any other county lawmaker. Richard E. Longshore 72nd District Raised during 1987 $114,000 Contributors 305 Average Contribution $374 Where the Money Came From From Orange County $59,900 (52.5%) Cities where most contributions came from: $20,000--Yorba Linda $7,850--Newport Beach $6,600--Santa Ana Outside Orange County $54,100 (47.5%) Cities where most contributions came from: $13,500--Sacramento $10,900--Los Angeles $8,400--San Francisco Corporations $39,600 (35%) Political Action Committees $33,150 (29%) Individuals $17,750 (16%) Notes Longshore received a higher percentage of his contributions from Orange County sources than any other county lawmaker. Of the nine lawmakers whose districts are predominantly within the county, Longshore received the smallest share of his contributions from Sacramento. Note: Percentages may not equal 100% because of rounding Source: Campaign Finance Reports FUND RAISING BY ORANGE COUNTY’S STATE SENATORS IN 1987 Marian Bergeson 37th District

Raised during 1987 $91,100 Contributors 219 Average Contribution $415 Where the Money Came From From Orange County $32,000 (35.13%) Cities where most contributions came from: $12,400--Newport Beach $3,900--Irvine Outside Orange County $59,100 (64.87%) Cities where most contributions came from: $13,850--Sacramento $8,750--Los Angeles $8,350--San Francisco Corporations $37,675 (41%) Political Action Committees $30,350 (33%) Individuals $22,675 (25%) Notes Bergeson raised a higher percentage of her funds from individuals than 11 of the 12 other Orange County lawmakers.

William Campbell 31st District

Raised during 1987 $268,949 Contributors 264 Average Contribution $1,018.75 Where the Money Came From From Orange County $5,050 (1.9%) Cities where most contributions came from: $2,000--Orange $1,500--Brea Outside Orange County $263,849 (98.1%) Cities where most contributions came from: $54,100--Los Angeles $41,750--Sacramento $35,000--Manhattan Beach Corporations $142,149 (52%) Political Action Committees $64,100 (24%) Individuals $27,700 (10%) Notes Campbell’s average contribution of $1,018.75 was the highest among the 13 lawmakers who represent parts of Orange County.

Cecil Green 33rd District

Raised during 1987 $186,363 Contributors 184 Average Contribution $1,012 Where the Money Came From From Orange County $12,900 (6.9%) Cities where most contributions came from: $4,125--Newport Beach $3,250--Orange Outside Orange County $173,463 (93.1%) Cities where most contributions came from: $40,000--Studio City $38,300--Los Angeles $24,400--San Francisco Corporations $58,225 (31%) Political Action Committees $81,700 (44%) Individuals $6,438 (3%) Note Green, the Orange County delegation’s only Democrat, raised more money from labor union groups than all 12 Republicans combined.

Edward R. Royce 32nd District

Raised during 1987 $149,960 Contributors 335 Average Contribution $447 Where the Money Came From From Orange County $63,885 (42.6%) Cities where most contributions came from: $10,750--Santa Ana $7,100--Anaheim $6,560--Newport Beach Outside Orange County $86,075 (57.4%) Cities where most contributions came from: $26,375--Sacramento $17,850--Los Angeles $11,950--San Francisco Corporations $67,500 (45%) Political Action Committees $58,175 (39%) Individuals $23,985 (16%) Note Royce, who serves on the Senate Health and Human Services Committee, got more campaign funds from the medical industry than any other Orange County legislator.

John Seymour 35th District

Raised during 1987 $306,000 Contributors 335 Average Contribution $913 Where the Money Came From From Orange County $112,275 (36%) Cities where most contributions came from: $29,200--Newport Bch $17,850--Anaheim $11,000--Irvine Outside Orange County $193,725 (64%) Cities where most contributions came from: $58,250--Los Angeles $42,900--Sacramento $15,500--San Francisco Corporations $168,000 (55%) Political Action Committees $95,725 (31%) Individuals $39,775 (13%) Notes Seymour raised more money in 1987 than any other Orange County lawmaker, got a higher percentage of his money from businesses than any other legislator from the county and raised more money within the county than any other lawmaker.

Percentages based on itemized contributions of more than $100.

Figures for Sen. Cecil Green include contributions from July through December.

Percentages may not equal 100% because of rounding Source: Campaign Finance Reports

IN THE ASSEMBLY

Special interest groups account for large percentages of campaign funds going to all Orange County legislators. Here is a look at the biggest contributors, by interest group, to each of the county’s eight Assembly members.

(Numbers are in thousands of dollars.)

Doris Allen

71st District

Medical $12.5

Development/Real Estate $11.3

Banking/Finance $4.1

Insurance $3.5Retail $3.0

Dennis Brown

58th District

Development/Real Estate $40.3 Banking/Finance $26.5 Manufacturing/Business $25.2 Medical $24.8 Insurance $22.2 Gil Ferguson

70th District

Development/Real Estate 50.8 Retired $11.9

Banking/Finance $11.2

Medical $10.3

Other Politicians $10

Robert Frazee

74th District

Insurance $5.0

Development/Real Estate $4.8

Banking/Finance $3.6

Retail $3.5 Medical $2.5

Nolan Frizzelle

69th District

Medical $11.9Development/Real Estate $7.6

Gambling Interests $6.0

Alcohol $5.8

Banking/Finance $5.1

Ross Johnson

64th District

Banking/Finance $22.9

Insurance $13.9

Gambling Interests $11.5

Medical $9.1 Lawyers $8.8

John R. Lewis 67th District Insurance Industry $19.8

Banking/Finance $13.8

Development/Real Estate $10 Medical $8.3 Gambling Interests $5.3 Richard Longshore

72nd District

Other Politicians $23.5

Developers/Real Estate $17.6 Medical $9.6 Communications $8.3 Insurance $6.6

IN THE SENATE

Special interest groups account for large percentages of campaign funds going to all Orange County legislators. Here is a look at the biggest contributors, by interest group, to each of the county’s five state senators.

(Numbers are in thousands of dollars.)

Marian Bergeson

37th District

Development/Real Estate $18.6 Insurance Industry $12.4 Medical $8 Retired $5.1 Agriculture $4.1 William Campbell

31st District

Other Politicians $35Gambling Interests $23.8

Medical $22.0Oil and Gas Industry $20.3

Insurance $18.6

Cecil Green

33rd District

Insurance Industry $19.8

Banking/Finance $13.8

Development/Real Estate $10

Medical $8.3

Gambling Interests $5.3

Edward Royce

32nd District

Medical $26.4

Insurance Industry $20.6

Development/Real Estate $19.7

Manufacturing/Business $11.8Banking/Finance $10.4

John Seymour

35th District

Development/Real Estate $111.4

Insurance Industry $31.0

Banking/Finance $21.7

Gambling Interests $12

Medical $10.9