Rules & Legislation Committee
June 23, 2022

OAKLAND FAIR ELECTIONS ACT POLICY BREAKDOWN CHART – Attachment A REFORM IMPACT NUMBERS CONTRIBUTION LIMITS Lowers contribution limits in all city races. Reduces reliance on and influence of wealthy interests and donors. ● $500 contribution limits for all candidates (lowered from $900) ● $1000 contribution limits for “broad-based political committees” ● These limits are adjusted annually per the CPI SAFEGUARDS & PENALTIES Safeguards and penalties for election law violations. ● Public Ethics Commission may revoke a candidate’s certification to participate in the Democracy Dollar program if they violate or no longer meet certification requirements or commit other violations of state or local law. ● A candidate whose certification is revoked must return the remaining Democracy Dollar proceeds to the fund and in cases of legal violations shall be personally liable for any Democracy Dollar proceeds already spent by the candidate. ● Surplus Democracy Dollar funds must be returned after an election. ● Prohibition on the sale or transfer of Democracy Dollars. DISCLOSURE Expands disclosure requirements and increases transparency to shine a light on who are the top contributors on all mass mailings and campaign advertisements. ● Requires the top 3 highest contributors to be disclosed on all mass mailings and advertisements (not just TV ads) for independent expenditures supporting or opposing Oakland candidates or measures (formerly top 2 highest contributors) ● Increases disclosure requirements for independent expenditures information in Oakland politics. LOBBYING Closes the “revolving door” of top officials becoming lobbyists after leaving office ● Extends the lobbying ban on former City officers to 2 years after leaving office (formerly 1 year). DEMOCRACY DOLLAR FUNDRAISING CAPS Maximum amount of Democracy Dollar proceeds candidates are eligible to receive. ● The Commission shall not disburse to a certified candidate Democracy Dollar proceeds more than be two-thirds (2/3s) of the adjusted limits outlined below. ● Uncontested Candidates: $10,000 limit CANDIDATE SPENDING CAPS Candidates participating in Democracy Dollar program may not exceed the spending limit for the office sought (subject to CPI increases every two ● Mayor: $500,000 ● City Auditor: $275,000 ● City Attorney: $275,000 ● At-Large Councilmember: $275,000 ● District City Councilmember: $150,000 ● School Board Director: $100,000 years) unless granted a release from the PEC Director. ● The PEC Director shall release a candidate from the expenditure limit upon request and verification that an opponent has funds that exceed the expenditure limit or those independent expenditures exceeding the expenditure limit were made in opposition to the petitioning candidate or supporting another candidate for that office. RESIDENTS & DEMOCRACY VOUCHERS Encourages candidates to target ordinary voters for support, rather than just the wealthy political elite. Allows candidates based in low-income communities and/or who don’t have strong connections to wealthy donors or interests to compete. ● Four $25 Democracy Dollars ($100 total) vouchers for each election are distributed to eligible residents. ● Democracy Dollars are sent to eligible residents by no later than April 1 of the year in which the election occurs. ● Eligible residents are at least 18 years old who are not prohibited from making a contribution under 52 U.S.C. 30121. ● Residents may give, or “assign,” one or more of their four $25 Democracy Dollars to the eligible candidate(s) of their choice by writing the name of the candidate on the Democracy Dollars, signing and dating the Democracy Dollars, and submitting the Democracy Dollars to the PEC (by mail, personal delivery, or online) or to a candidate or representative of the candidate. ● Democracy Dollars can be assigned by a resident up to 30 days after the election ● PEC must create and maintain an online portal to assign, redeem, and track Democracy Dollars. ● PEC must conduct education and outreach, including developing an outreach plan in coordination with community organizations and the City’s Race and Equity Department to ensure all City residents are informed about the Democracy Dollar program. CANDIDATE CERTIFICATION FOR DEMOCRACY VOUCHERS ● Candidates must submit a notice of intent to apply for certification to participate in the Democracy Dollars program. PEC may conduct audits of all certified candidates. ● Candidates must agree to personally participate in at least 3 public debates or forums; 5 debates or forums for Mayoral candidates ● Candidates must receive a minimum number of qualifying contributions required based on the office sought: o Mayor: 400 contributions with 10 contributions from each district o City Attorney: 150 contributions with 5 contributions from each district o City Auditor: 150 contributions with 5 contributions from each district o At-Large Councilmember: 150 contributions with 5 contributions from each district o District Councilmember: 125 contributions including 25 contributions from the candidate’s Council district o School Board Director: 75 contributions with 20 contributions from candidate’s School Board Director district FUNDING/ STAFFING ● Increases funding and staffing for Oakland's political watchdog, the Public Ethics Commission o $4 million to fund the Democracy Dollars Program in each two-year budget cycle. o $700,000 for start-up costs initiating the Democracy Dollar program o Hiring 4 FTEs staff to administer the program, plus O&M for PEC ● Requires late fees and funds forfeited to the City. ADMINISTRATION ● The Public Ethics Commission is responsible for administering, implementing, and has the discretion to adjust the main conditions of the Democracy Voucher program ● The Commission must also create a technology system that provides eligible residents to receive and/or redeem Democracy Dollar Vouchers electronically; and ● Educate and inform the candidates and the Public about the Program; and ● Conduct community outreach and create a public facing website with information on the Program; and ● Conduct audits and investigations of certified candidates. ● The new Democracy Dollar program will first apply to the 2024 election.