AB 543

This bill creates a democracy trust fund under which eligible candidates for the

office of justice of the supreme court may receive public grants derived from general

purpose revenues to finance their campaigns.

Under the bill, a candidate for the office of justice of the supreme court may

qualify for public financing from the democracy trust fund to finance a campaign in

a primary or election by receiving qualifying contributions from at least 1,000

separate contributors who are electors of this state in amounts of not less than $5 nor

more than $100 in an aggregate amount of at least $5,000 but not more than $15,000.

A candidate who accepts public financing may also accept "seed money"

contributions from electors of this state in amounts of $100 or less, subject to

aggregate limitations, and may contribute personal funds in specified amounts

during specified periods. In order to qualify for a public financing benefit for the

primary, a candidate at the spring primary must have an opponent who qualifies to

have his or her name appear on the ballot at the primary, and in order to qualify for

a public financing benefit for the spring election, a candidate at the election must

have an opponent who qualifies to have his or her name appear on the ballot at the

election. A candidate who accepts a public financing benefit may not accept any

contributions other than qualifying and seed money contributions and contributions

from personal funds within the limitations permitted. Public financing benefits for

eligible candidates are $100,000 in the spring primary and $300,000 in the spring

election. The benefits are subject to a biennial cost of living adjustment.

The bill imposes a limitation on disbursements (expenditures) by a candidate

who accepts a public financing benefit that equals the total public financing benefit

allocated to the candidate and the total qualifying and seed money contributions

lawfully accepted by the candidate. The bill provides that if a candidate makes

disbursements that exceed the total permitted under the bill, the candidate is subject

to a forfeiture (civil penalty) of not more than ten times the amount by which his or

her disbursements exceed the allocation. In addition, the bill provides that a

candidate who accepts contributions in excess of any limitation imposed under the

bill is subject to a forfeiture of not more than ten times the amount by which the

contributions exceed the applicable limitation. The bill also provides that if any

candidate or agent of a candidate knowingly accepts more contributions than the

candidate is entitled to receive, or makes disbursements exceeding the total amount

of the public financing benefit received by the candidate and the qualifying and seed

money contributions lawfully received by the candidate, the candidate or agent may

be fined not more than $25,000 or imprisoned for not more than ten years, or both.

Under the bill, any person who, in connection with the receipt or disbursement of a

public financing benefit, knowingly provides false information to the Government

Accountability Board, or knowingly conceals or withholds information from the

board, is subject to the same penalty.