SAN MARCOS -- As the first council election in the city's history to exclude business campaign contributions approaches in November, candidates, city officials and political scientists say the new law is likely to limit the influence of corporations at the ballot box.

Whether businesses find other ways to exert their influence remains to be seen, said UC San Diego political science professor Thad Kousser on Thursday.

The law was approved by the City Council in January 2003 after corporations, such as housing development companies, contributed heavily to three of 10 candidates running for election in November 2002.

Councilwoman Pia Harris-Ebert, for example, received $8,000 from development companies such as E.L. Yeager Construction Co. Inc. of El Cajon; Cass Construction of El Cajon; Brookfield Homes of Del Mar, and American Concrete Construction Co. of San Marcos, according to campaign disclosure forms. Harris-Ebert raised a total of $38,049 that year.

Then-Councilman Mark Rozmus received $14,000 from the same companies -- as well as contributions from Shea Homes of San Diego and Standard Pacific Homes of San Diego, campaign records show. He raised $33,613 that year, but lost his re-election bid to Councilman Mike Preston, who raised $12,618.

Michael Sannella received $11,750 from companies such as Shea Homes; Area H3 Homebuilding of San Diego; Horton Continental Homes of Carlsbad; American Concrete Construction Co. of San Marcos; and Standard Pacific Homes, records show. He raised $26,889 that year, but lost to Mayor Corky Smith, who raised $19,580.

Businesses were previously allowed to contribute up to $3,000 per candidate. The law also reduced the total amount individuals are allowed to contribute from $3,000 to $250.

The exclusion of corporate money from this year's City Hall race, Kousser said, will minimize concern that businesses who make large donations to candidates are trying to win favors if those people are elected. But the prohibition on such financing, he said, may cause businesses to spend money independently to campaign for their candidates, an option that is legal under the city's campaign law.

"All contribution limits are designed to minimize corruption and its appearance," said Kousser. "But when you stop money in one direction, you have money flowing in another direction."

Corporations, the professor said, can choose to spend money on advertising or political mailers to campaign for or against certain candidates.

David Poole, vice president of Brookfield Homes, said his company gave $3,000 each to Harris-Ebert and Rozmus in 2002 because they were good candidates who needed financial assistance.

"We donate to candidates who are good for the city, and who ask," Poole said.

Sannella said he received money from developers because he did well in his interview with the Building Industry Association, an organization that represents developers in the region. Rozmus did not return a telephone call seeking comment.

Harris-Ebert, Sannella and Poole said they have no problems with the new ordinance as long as all the candidates are following the same rules.

Councilman Preston, who won the second open council seat that year, said he believes that few candidates are influenced by developers' money. But he said the city campaign ordinance will prevent the corporate money from influencing the minority of candidates who might be tempted.

"In the past, some candidates have been influenced by developers," said Preston, who declined to give names. "This ordinance will protect us from the few that are susceptible from that kind of lobbying effort."

Campaign finance inquiries

During the 2002 City Council race, some candidates questioned donations by a corporation and a political action committee, both of which had ties to developers and that supported the campaigns of Harris-Ebert, Rozmus and Sannella.

The organizations were investigated by an independent attorney for alleged campaign-finance violations, City Attorney Helen Holmes Peak said, but the groups were cleared of any wrongdoing.

Campaign finance violations are considered misdemeanors punishable by a $10,000 fine or a fine that is three times the amount that was illegally reported.

The corporation was investigated for allegedly paying between $2,500 and $3,000 to send campaign mail to voters at the request of the three candidates it supported, Holmes Peak said. That amount, along with the $1,500 the company had already contributed to each candidate, would have violated the previous campaign finance ordinance, which capped individual and business contributions at $3,000.

Under the state Fair Political Practices Commission's rules, businesses are allowed to spend money to independently campaign for a candidate, but not with the candidate's help or at their request.

The political action committee was investigated because of allegations that the group did not report a telephone phone survey that benefited Harris-Ebert, Rozmus and Sannella as a campaign contribution, the city attorney said.

The group was cleared of any wrongdoing because the city's campaign law allows groups to spend money independently to campaign on behalf of their candidates.

Raising money this year

Two city councilmen who are up for re-election in November say the new ordinance will not have a big effect on their campaigns, if they choose to run, because a majority of their supporters are private citizens, not businesses or corporations.

"I see this as having no effect," said Councilman Hal Martin, who has not decided whether he will seek re-election.

Martin said he plans to raise money from his base of supporters that include mobile-home park residents, soccer moms and NASCAR dads.

Councilman Lee Thibadeau, who has not declared his official candidacy, said he plans to have a fund-raiser and raise money from residents who support him.

Meanwhile, Twin Oaks resident Jim Desmond and San Elijo Hills resident Chris Orlando, who have filed papers with the City Clerk's office declaring their intentions to run, say they believe the new ordinance levels the playing field between challengers and incumbents.

Both men said they plan to raise money by having fund-raisers, knocking on doors and sending campaign mail to supporters.

Contact staff writer Ken Ma at (760) 761-4408 or kma@nctimes.com.