Christmas in August for Lawmakers

SACRAMENTO — As California lawmakers were casting final votes on hundreds of bills in the just-ended legislative session, they raised more than $2 million from drug makers, car dealers and other interests with a stake in the legislative fights, campaign finance reports show.

Following a long-standing tradition, at least 76 of the state’s 120 lawmakers took campaign donations in August, the last month they would be in town before the November election. Most of the roughly $2.17 million came in chunks of $1,000 to $3,200 -- the maximum generally allowed by state law.

The total eclipsed the $2.08 million legislators raised at the end of the session two years ago, when some used a loophole allowing them to accept five-figure donations. The state Fair Political Practices Commission has since sealed the loophole.

There were no legislative elections in 2003.

August is a particularly significant month in election years, when there are contests for all 80 Assembly seats and 20 of the 40 Senate seats. Even lawmakers who don’t face serious challenges use it to bulk up their campaign accounts, in part to send money to their political parties and help allies seeking office.

This year’s bounty came as lawmakers bounced from committee hearings and floor sessions to fund-raisers held in restaurants and bars at breakfast, lunch and in evening hours. In the final two-week frenzy of bill passings -- when they considered more than 100 measures some days -- legislators arranged and attended about 100 fund-raisers around Sacramento.

Campaign finance watchdogs say legislators arrange end-of-session fund-raisers in part to capitalize on the bill-writing rush. And though most interest groups also give to candidates at other times of the year, many say they feel compelled to make donations during the session’s final weeks.

Lobbyists attended three or four events a week -- some went to that many in a day -- while they sought to persuade lawmakers to vote for measures they supported, retool bills to their liking or kill legislation altogether.

“Talk about conflict of interest,” one lobbyist said, speaking on condition of anonymity, not wanting to alienate legislators. “People are voting on bills at the same time they’re raising money.”

The lobbyist had worked for months with some legislators and their aides on bills and, when lawmakers sent invitations soliciting money, felt “almost a moral obligation” to attend. But the timing “bothers me,” he said.

The largest single recipient in August was a Republican, Assemblywoman Shirley Horton of Chula Vista, who raised $145,391. She faces a tough race against Democrat Patricia Davis, a Chula Vista city councilwoman.

Duane Dichiara, Horton’s political strategist, says that although much of the money she raises comes from her district, Horton tapped Sacramento donors in August because that was where she spent most of the month.

“People like to see you, generally, when they cut you a check,” Dichiara said. “Anybody who has known Shirley Horton knows you can’t buy her vote. She has built her reputation as being independent from the party system.”

The lawmaker with the next largest receipts, Assemblyman Juan Vargas (D-San Diego), who raised $111,096 last month, did not return calls from The Times. He faces a nominal challenge from a Libertarian whose occupation is listed as student.

“It’s a reality,” said Assemblyman Mark Leno (D-San Francisco), referring to end-of-session fund-raising. Leno, who raised a relatively modest $25,000 in August, dismissed suggestions by some critics that there be a “blackout period” during the final days of the session. Legislators would simply raise most of their money at other times, he said.

In this year’s legislative fights, pharmaceutical manufacturers sought to kill legislation opening the way for drug imports from Canada. Utilities backed a measure authorizing them to pass on to consumers more of the costs of building new plants. Other groups attracted little or no public attention.

One of the biggest battles last month involved a bill by Assemblywoman Cindy Montanez (D-San Fernando) to cap interest rates that car dealers charge, and give consumers a three-day window during which to return used vehicles after purchasing them.

As dealers’ lobbyists sought to derail the measure, car dealers’ representatives attended fund-raisers, handing out $32,950 -- $28,950 of which went to legislators who voted against the bill or abstained. Approved narrowly on the final night of the session, the measure awaits Gov. Arnold Schwarzenegger’s signature or veto.

“We don’t base contributions on bills,” said Peter Welch, president of the California Motor Car Dealers Assn. “Dealers take a much larger view than basing decisions on individual bills.”

Several donors had interests that attracted little or no attention as the legislative session waned. The Western Manufactured Housing Community Assn., a trade group representing mobile home park owners, gave $40,000 to incumbents, placing it among the five top donors that month.

Lawmakers took action last month on eight of 11 bills that the mobile home group lobbied for or against during 2004.

Sheila Dey, the group’s executive director, said that its issues largely were resolved in preceding months, and that by August the final bills were not significant. Dey said there was no link between donations and action on legislation.

“They like to have [fund-raisers] in Sacramento before they leave,” Dey said. “They tend to raise more money in Sacramento than in their districts.”

The healthcare industry consistently is among the largest donors to elected officials. So it was in August, when healthcare companies and groups -- including drug makers, health maintenance organizations and physicians -- gave almost $400,000.

Healthcare interests worried about bills that would tax premiums, inquiries into Blue Cross of California being acquired by an out-of-state company, and legislation covering hospital billing practices.

The largest donor in August was the California Medical Assn., which gave lawmakers $146,000. Dean Chalios, executive director of the organization’s political action committee, said giving in August before elections was a long-standing tradition. The physicians group gives to incumbents from both parties.

“Our public policy agenda is very wide and very broad, from scope of practice to medical issues to tort reform,” Chalios said. “We find on some issues Democrats are with us and on some issues Republicans are with us, and on others they are both with us.”

Democrats raised $1.24 million, compared to Republicans’ $926,000. There are more Democrats than Republicans in the Legislature. But the gap was far greater two years ago, when Democrat Gray Davis was governor.

In August 2002, incumbent Democratic legislators raised more than triple what Republicans raised: $1.6 million to $490,000.

GOP fund-raising has been on the rise since Schwarzenegger ousted Davis and Republicans have been sounding more moderate themes.

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In August, as they decided on hundreds of bills at the end of the legislative session, 76 of California’s 120 state lawmakers tapped scores of donors for at least $2.17 million. Most contributors had interests in the bills being considered.

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Who raised the most:

* Assemblywoman Shirley Horton (R-Chula Vista) $145,391

* Assemblyman Juan Vargas (D-San Diego) $111,096

* Sen. Mike Machado (D-Linden) $79,972

* Assembly Speaker Fabian Nunez (D-Los Angeles) $71,100

* Assemblywoman Bonnie Garcia (R-Cathedral City) $67,498

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Which donors gave the most:

* California Medical Assn. $146,000

* California Dental Assn. $51,945

* Agua Caliente Band of Cahuilla Indians $45,400

* Western Manufactured Housing Assn. $40,000

* SBC $31,650

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Which industries gave the most:

* Healthcare $394,612 (includes drug makers, dentists, health insurers)

* Political parties and other politicians $294,220

* Labor $251,373

* Real estate/construction $227,450

* Finance/insurance $201,196

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Source: California secretary of state website: www.ss.ca.gov

Los Angeles Times