CHARTER HOPEFULS FREE TO CASH IN.

Byline: Patrick McGreevy Daily News Staff Writer

The state's ethics panel has ruled limits on campaign contributions do not apply to candidates for the Los Angeles Charter Reform Commission on April 8, freeing them to scramble for last-minute money.

The opinion issued by the state Fair Political Practices Commission voiding the previous $250 contribution limit drew outrage and threats of legal action from some officials.

``I think it's outrageous,'' said Councilman Mike Feuer, who chair's the city's Rules and Elections Committee and asked the City Attorney's Office to explore a possible legal action to block the rule change.

``It undermines what the voters have approved, and it creates open season for infusing huge amounts of cash into the campaign at a critical juncture.''

Councilwoman Jackie Goldberg and city union official Julie Butcher said the ruling will provide a potential big boost to candidates backed by Mayor Richard Riordan, who has already raised $500,000 from corporate supporters for an independent slate mailer.

``That just makes it so the special interests will be in the drivers' seat,'' Goldberg said.

Added Butcher, ``It's frightening.''

Steve Afriat, the campaign manager for some Riordan-backed candidates, said he would urge them to ask the mayor to make some calls and raise some large contributions.

Political consultant Rick Taylor, who is running an independent campaign for the mayor's slate, said the decision may help candidates backed by city employee unions, which have access to substantial funds.

His committee reported Thursday it has $506,000 in the bank after spending about $15,000 in the last month on slate mailers to support the candidates.

Butcher denied that the unions have large amounts to add to a campaign already budgeted at $400,000.

FPPC General Counsel Steven Churchwell said charter reform candidates are not subject to Proposition 208 because the state measure does not limit contributions to ballot measures.

Churchwell noted voters must approve Proposition 8 on the April 8 ballot in order for the commission to be created.

``The individuals seeking election to the charter commission are running as part of the ballot measure,'' Churchwell wrote. ``If the measure fails, they will not be elected to office. This is similar to a recall.''

Churchwell noted that candidates on recall elections are not subject to contribution limits.

Voters on April 8 will be asked whether to elect a commission to review the city's 72-year-old charter, and then recommend changes directly to voters. A charter commission appointed by the council is already at work.

Former Secretary of State Tony Miller, a co-sponsor of Proposition 208, the campaign finance measure, said he and other officials with California Common Cause, believe the FPPC is wrong and they may sue any candidate that accepts contributions of more than $250.

``It's absurd,'' Miller said. ``If any candidate exceeds the campaign limit, we may be filing actions against those we believe violate the law.''

Others, including political consultant Harvey Englander, said the opinion comes out too late to have a major impact.

``It's pretty hard to spend more money this late,'' said Englander, who sought the FPPC opinion and is putting out a slate mailer including candidates backed by City Council members.

The FPPC ruling does not apply to the runoff. The state agency is still researching that issue, but city Ethics Commission director Rebecca Avila said the state has verbally said they believe the $250 limit will apply to any runoff because the initiative issue will have already been resolved.