Candidates Get 2 Weeks to Return Excess Funds

The state Fair Political Practices Commission on Tuesday ruled that campaign donations exceeding contribution limits recently imposed by the voters cannot be deposited and must be returned to the contributor within two weeks.

The new rule is aimed at preventing candidates from temporarily depositing contributions exceeding the limits in order to attract more money by giving prospective donors the impression that the candidate has significant financial backing.

By a 4-0 vote, the commission adopted the regulation, which implements a major part of Proposition 73, the political reform initiative approved by voters in June. Under that provision, individuals are prohibited from giving more than $1,000 to a candidate in a fiscal year. Relatively small political committees are restricted to $2,500 while major political action committees are limited to $5,000.

The commission was told by its staff that by imposing the deadline for returning illegal contributions, candidates will be forced to return the money promptly in order to avoid a $2,000 fine for each violation.

Sen. Quentin Kopp (Ind.-San Francisco) and Assembly Republican Leader Ross Johnson of La Habra, co-authors of Proposition 73 who testified at the hearing, said the initiative was intended to create a “level playing field” for challengers and to take away at least some measure of an incumbent’s built-in reelection advantage.

Under the regulation, if a contribution is excessive on its face, it must be returned. In a case where multiple contributions are made, the entire check that put total donations over the limit must be sent back--not merely the excess.

In agreeing to a two-week return deadline, the commission rejected a staff suggestion that a candidate be allowed to keep the excessive donation for 30 days before refunding it. The staff contended that the longer period would enable campaign treasurers time enough to determine whether the contribution was legal or not.

But Johnson told the commission that in some small city elections, struggling candidates could deposit the excessive funds for 30 days, create an artificially inflated treasury, and then advertise themselves as “serious” contenders in an effort to attract more donations.