1) Strict Contribution Limits end the fundraising madness with constitutional
     limits so regular voters aren’t drowned out by big money.

2) Proven Clean Money Public Financing of Political Campaigns level the playing field
     so new candidates can win on their ideas, not because of the money they raise.

3) Tough Disclosure and Enforcement stop candidates from hiding behind negative ads and
     punish politicians who violate the law.

1) Strict Contribution Limits

Prop 89 imposes a number of strict new contribution limits on candidates for state office and also for initiative ballot committees.

Lowered Contribution Limits to State Candidates

Limits on contributions to state candidates who run with private financing. E.g:

• Now, candidates for Governor can get contributions of up to $22,300, an amount that only wealthy special interests can ever afford to give.  Prop 89 lowers it to $1,000 for individuals, groups or corporations and $2,500 for small contributor committees.
• Now, political parties can give unlimited amounts to their candidates, swamping opponents.  Prop 89 limits them to giving $20,000 to Assembly candidates in the general election, allowing them to help candidates without significantly unbalancing the playing field.

Other Contribution Limits

Prop 89 closes other campaign loopholes.  Each of the below additional contribution limits is in direct response to campaign finance scandals in the recent past:

• Bans lobbyists and state contractors from making contributions to state candidates.
  (Currently contributions from state lobbyists to candidates for agencies that the lobbyist lobbies are prohibited, but there are no limits for state contractors.)
• Limits independent expenditure committees that support or oppose state candidates to receiving $1,000 per year per contributor.
  (Currently no limit.)
• Bans any candidate from fundraising prior to 18 months before the primary election.
  (Currently no limit.)
• Prohibits contributions from one state candidate's committees to another state candidate's committees.
  (Currently limited to $3,300.)
• Limits the amount any person can give to ballot measure committees controlled by a candidate to an aggregate of $10,000.
  (Currently no aggregate limit.)
• Limits corporations and banks to a maximum of $10,000 in contributions or independent expenditures for or against any state ballot measure.
  (Currently no limits. Corporate employees and shareholders can still contribute through corporate PACs.)

2) Proven Clean Money Public Financing To Level the Playing Field

Prop 89 gives qualified candidates the option to receive a set amount of public funds for their campaigns if they agree to strict spending limits and to take no private contributions. This helps level the playing field and make our elections more fair and competitive – so that candidates with the best ideas have a chance to win, even if they are not rich or well connected to wealthy special interest groups or lobbyists.

Qualifying for Clean Money — Initial Steps

Candidates qualify for public financing in their campaign by agreeing to:

• Reject private fundraising during campaign and agree to limit spending to the amount provided by the public.
• Candidates initially allowed to raise a small amount of start-up seed funds to see if they can qualify.  Maximum seed fund contributions limited to $100 from any individual, including the candidate.  They cannot be spent during the actual campaign period.
• Demonstrate broad-based public support by gathering a set number of signatures and $5 contributions (from 750 for Assembly candidates up to 25,000 for Governor).
• Participate in at least one primary debate and two general election debates.

Receiving Clean Money — Public Financing Available

Once qualified, Clean Money candidates:

• Receive enough public financing to run competitive campaigns.
• If outspent – either by an opponent who does not participate, or because independet groups attack them or support their opponent -- then the Clean candidate receives matching funds to respond, up to 5x the original funding (4x for governor).
• If a wealthy candidate spends $25,000 or more of their own, matching limits double.
• Candidates are not allowed to raise or spend additional money beyond what they receive from the fund.

Third Party and Independent Candidates

Third party and independent candidates qualify for varying levels of funding:

• Third party candidates in individual districts or offices where they have strength qualify for full funding at the normal qualification levels if their party becomes “office-qualified” by getting at least 10% or more of the vote in the previous election for that office.
• Candidates from third parties that didn’t get 10% of the vote in the last election qualify for a quarter of major party funding in the general election if they gather half the normal number of qualifying $5 contributions (e.g. 375 for an Assembly race). This is meant to be enough to provide a fair test of whether they can get 10% of the vote and “office-qualify” for full funding in the next race.
• Independents and third party candidates can “performance qualify” for 20% of the major party funding in the primaries and 50% of the major party funding in the general election by gathering twice the normal number of qualifying signatures and $5 contributions (e.g. 1,500 for an Assembly race.)

Clean Money Fund

Proposition 89 is specifically funded by a modest increase in the corporate income tax rate – raising it from 8.84% to 9.04% in most cases, less than it was from 1980 until 1996. It would raise about $200 million annually to pay for public financing candidates along with oversight and enforcement of the law.

• There is no tax increase for individuals or the vast majority of small businesses. Larger corporations will pay their fair share in taxes.

3) Tough Disclosure and Enforcement

Prop 89 stops candidates from hiding behind negative ads and punishes candidates and politicians who violate the law.

Key Disclosure and Other Requirements

• Both the ballot and the ballot pamphlet specify whether or not candidates are participants in the public campaign funding system.
• Candidates must say that they approve all broadcast and print ads run by the campaign.
• Non-participating candidates or independent expenditure committees operating against participating candidates must disclose all significant expenditures within 24 hours.
• Wealthy candidates must disclose if they intend to spend over $25,000 of their own money, which triggers matching funds to Clean Money candidates and doubles the matching limits.
• Candidates must track and report and expenditures, records which are made available to the public.

Key Enforcement Provisions

• Any participating candidate or their agent who abuses the system by spending more than their public funds has committed a misdemeanor and will not only be subject to substantial fines but if convicted must serve time in jail, up to a maximum of five years.
• No person convicted of a violation can run for elective office, act as a lobbyist or state contractor, or be eligible for appointed office or commission for a period of five years unless the court specifically determines otherwise.
• Candidates whose violation is found by a court to have a material effect on the outcome of the race will be removed from office.