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HomeMy WebLinkAboutCC AG PKT 2009-09-14 #BACEN®~- STAFF REP®RT DATE: September 14, 2009 TO: Honorable Mayor and City Council THRU: David N. Carmany, City Manager FROM: Jill R. Ingram, Assistant to the City Manager SUBJECT: CAMPAIGN FINANCE ORD6NANCE SUMMARY OF RE(~UEST: This report is provided in response to a request by Councilmember Antos that the City Council consider the adoption of a Campaign Finance Ordinance. It is recommended that the City Council: 1. Discuss the consideration of adopting a Campaign Finance Ordinance; and/or 2. Receive and file the report; and/or 3. Provide direction to staff as appropriate. ~ACKGR®UN®: On November 8, 1993 the City Council adopted Ordinance No. 1377, which added Chapter 1 B to the Code of the City of Seal Beach. The purpose of Chapter 1 B was to impose additional contribution limitations and campaign finance disclosure requirements that were more stringent than those imposed by state law, for City Council candidates, as well as committees in support of or opposing ballot measures. According to a Council staff report dated October 27, 2003, Ordinance No. 1377 was a model campaign ordinance that was drafted in an effort to mitigate the impact of large contributions and excessive expenditures on the outcome of local elections. The purpose of this ordinance was to: • Require additional late campaign finance disclosure from candidates and committees involved in election campaigns for the City Council, and from committees which support or oppose City ballot measures, thereby making the public aware of candidates' and committees' use of campaign funds immediately preceding the election; • Limit the time in which candidates and committees in City Council races may accept and solicit contributions, thereby reducing the influence of late campaign contributions; Agenda Item B Page 2 • Place limits on the amounts any person or committee may contribute (not to exceed $250) or otherwise cause to be available to campaigns in support of or against candidates for the City Council; • Establish a voluntary campaign expenditure limit of $5,000 in City Council campaigns, in order to slow the paid rise in the cost of such campaigns. At its regular meeting of October 27, 2003, the' City Council unanimously adopted Ordinance No. 1509, repealing Chapter 1 B, Election Campaigns, of the Code of the City of Seal Beach. The attached staff report indicates that after the City Council adopted Ordinance No. 1377, "campaign ordinances and statewide initiatives on the same subject were routinely challenged in court. Court decisions invalidated most, if not all of the regulations applicable to local jurisdictions, necessitating periodic amendments to the City's ordinance." The staff report indicates that the City Council at that time directed staff to draft an ordinance repealing the campaign ordinance. By repealing this campaign ordinance, the City has relied exclusively on state law since October 27, 2003 regarding campaign disclosure. Therefore, there are no limitations on campaign contributions or campaign expenditures for local elections. I=IIVAINCIAL. I IVl PACT: None. REC®NiIVIEN®ATI®IV: This report is provided in response to a request by Councilmember Antos that the City Council consider the adoption of a Campaign Finance Ordinance. It is recommended that the City Council: 1. Discuss the consideration of adopting a Campaign Finance Ordinance; and/or 2. Receive and file the report; and/or 3. Provide direction to staff as appropriate. SUBMITTED BY: J' R. Ingram Assistant to the City anager NOTED AND APPROVED: ~'~ David N. Car any, City Manager Attachments: A. Ordinance No. 1377 B. Council Staff Report dated October 27, 2003 C. Ordinance No. 1509 •: ..., aRDINAwc~ No. /3 a7 AN 08DINANCB OF THE CITY COUNCIL OF TSS CITY OF SEAL SSACH, CALIFORNIA ADDING CHAPTER IB TO TEU; CODE OF TH8 CITY OF SEAL 88ACH, REQIIIRING ADDITIONAL CAMPAIGN FINANCIAL DISCLOSi7RE FROM CANDIDATES FOR CITY COUNCIL - AND COML~4ITTSBS IN SUPPORT OF OR OPPOSING SUCS CANDIDATES AND COMMITTE$S SUPPORTING OR OPPOSING BALLOT NISASURES, L]I'lITING TH8 AMOUNT OF CAMPAIGN CONTRIBUTIODiS 1•N CITY COUNCIL CAMPAIGDtS, AND ESTABLISHING A VOLUNTARY C~l1~AICN EXPENDITURE CEILING FOR CITY COUNCIL CANDIDATES THE CITY COUNCIL OF THB CITY OF SEAL BSACIi D08S BERF$Y ORDAIN AS FOLLOy7S SECTION I. The Code of the City of Seal Beach is hereby amended by , adding Chapter iB, to read as fvliows: ' ° CHAPTLIt IB 7~LECPION CAMPA1GNs S~~tion i8-i. Purflose. The purpose of this Chapter is to foster broader participation is the local. political grocers by: (a) Requiring additional late campaign finance disclosure from candidates and committees involved is election campaigns for the City Council, and from caurnnittees which support ar oppose City ballot measures, thereby making the public aware of candidates' and committees' use of campaign funds inanediately preceding the election; and (b} Lfa+itiag the time in wYsich candidates and caaQnitteee is City Council races may accept and solic+t contributions, thereby reducing the iafluenee of late campaign contributions; and (c) Placing limits on the amounts any person or camraittee may contribute or otherwise cause to be available to campaigns in support of ar against candidates for the City Council; sad (d) Establishing a voluntary expenditure ceiliang in City Council campaigns, in order to slow the rapid rise in the cost of such campaigns. section 1H-2. Definitions. The definitions contained in the Political Refozm Act of 7.974, as amended, (Gove*•*•~*+t Code Sections 82DQ0, et sea.. shall govern the interpretation of terms is this • chapter, except that; (a) "Candidate° shall mean nay individual who is listed on the ballot ar who has qualified to have vrrite-in votes an his or her behalf counted by election officials, for aemrinatioa ar election to an elective office, or who receives a contribution or makes an expenditure or gives his or her express ar implied consent for any other person to receive a contribution ar make as expenditure for the purpose of bringing about his or her nomination or election to an elective City office, whether or not the specific elective office for which he or she wi1Z seek aamiaation or election is known at the time•the coatributian is received ar the expenditure is made and whether or not he or she has announced his or her candidacy or filed a declaration of candidacy at such time. "Candidate° also includes any officeholder evho is the subject of a recall election. An individual who becomes a candidate shall retain hie or her status as a candidate until such time as that statue is terminated pursuant to Section 84214 of the . Ordinance Number ~~~7 _ California Government Code. °Caadidate° does not include any person within the meaning of Section 301 (b) of the Federal Election Campaign Act of 1971. (b) °City measure° shall mean any city-wide initiative, •referendum, recall or City Council apoasored ballot question, including proposed Charter amendmeata, which appears an the city-wide ballot at any municipal election. (c) °Committee° shall mean nay person or combination of persons who directly or indirectly does nay of the following is connection with a campaign for the City Council of the City of Seal Beach: ' (i) Receives contributions totalling two hundred fifty dollars ($2SD.00) or more is a calendar year; ar (2) Makes independent expenditures totalling two hundred fifty dollars ($250.00) ar more in a calendar year to support ar oppose any candidate, slate of candidates, or committee formed to support or appose a candidate or candidates for the City Council of the City of Seal Beach. {33 Makes contributions totalling one thousand dollars ($1,ODO.OD) or more in a calendar year to or at the behest of candidates or committees. A person or combination of persons may constitute a committee for the puzpoaes of this chapter, whether or not [hat person or combination of persons ie required to report activity pursuant to the Political Refaxm Act. {d} "Contribution" shall mesa: (1} A payment, a forgiveness of a loan, a payment of a loan by a third party, or as enforceable promise to make a payment except to the extent that full and adequate consideration is received ua3.esa it is clear frame the surrounding circumstances that it is not made for political purposes. An expenditure made at the behest of a candidate, committee or elected officer is a contribution to the candidate, committee or elected officer unless full and adequate consideration is received far making the expenditure. The term "cantribution° includes (i) the purchase of tickets for events each as dinners, luncheons, rallies and similar fund-raising events; {ii) the granting of discounts or rebates not exteaded•ta the publla generally or the granting of diacouats or•rebates by televigian and .• radio stations anal newspapers not extended on an equal basis to all candidates far the same office; (iii) the payment of•compensatioa by any person for the personal cervices or expenses of any other person if each services are rendered or expenses incurred on behalf of a candidate or committee without payment of full sad adequate consideration; (iv) any transfer of anything of value received by a casmnittee fraan another coamtittee, unless fu11 and adequate cansideratiaa is received; (v) a loan sad any extension of credit in excess of thirty (3D) days, except as provided below, from the maker of the loan, and which shall be by written agreement and filed with the candidate's or caamnittee's campaign statement on which the loan ie first reported. (2} The term °contributioa° does not include: (i} amounts received pursuant to as enforceable promise to the extent such amounts have been previously reported as a contribution. However, the fact that such amounts have been received shall, be indicated in the appropriate campaign statement; (ii} a payment made by an occupant Ordinance IJumber ~~~- of a home ar office far costs related to any meeting ar fund-raising event held is the occupaat~s home ar office if the costs far the meeting ar fund-raising event are five hundred dollars {$500.00) ar less; (iii) volunteer personal services or payments made by any individual for his or her own travel expenses if suds. payments are made voluatarilp without any understanding or agreement that they shall be, directly or indirectly, repaid to him or her; (iv) the proceeds of a loan made to a candidate by a comn-ercial leading institution in the regular course of business on the same terms available to members of the public and which is secured or guaranteed, or a loan made under circumstances making it clear that the loan is not far political purposes; Cv) as independent expenditure. (3) A contribution shall not be considered to be received if it is not negotiated, deposited, or utilized, and in addition it is returned to the•daaar within fourteen (14) days of receipt. {e) "Person" shall mean an•iadividual, praprietarship, firm, partnership, joint venture, syndicate, business trust, company, corporation, asaociatioa, committee, sad labor organization and nay other organization or groug of persons acting in concert. Section ,Z,~-3 Caamaiar~Coq~ributi on Limitation {a) No gersan ar coamtfttee other than an individual candidate shall make, and ao person, cam~ittee or candidate shall solicit or accept, nay contribution ar loan which will cause the aggregate amount contributed and/or loaned by such person ar committee with respect to a single district election for a member of the City Council, is support of ar opposition to a candidate far such office, including contributions or loans to all committees supporting or opposing such candidate, to exceed two hundred fifty dollars {$250.00}. Cb) The limitations of paragraph {a) of this Section shall sat apply to expenditures of a candidate on behalf of his ar her own candidacy. ~e~n ~-4 Aa~llttoaa~Campaiaa nisclo~ure ReauiremRnts In addition to nay other campaign disclosure report required by law, candsdates for the City Council, committees supporting or opposing such candidates, committees supporting or opposing nay City. measure, and committees supporting ar opposing nay combination of candidates sad/or City measures, shall file with the City Clerk a second supplemental preelection statement not later than 12:OD noon the Thursday immediately preceding the election„ which shall cover the period beginning sixteen (16) days before the election and closing at 5:00 p.m. the Tuesday one week before the election. Section 1B-5 Pro}cihition o~ Lath Contributions,, No contribution shall be received or solicited by nay candidate nor any committee supporting or opposing nay candidate ar cormbination of candidates for the City Council after 5;00 p.m. of the Tuesday one week before the election until the day following the election. Section 18-6 Voluntary Camaaian Sxnenditure L *. There is hereby established a voluntary campaign expenditure ceiling €or candidates far Member of the Gity Council of five thousand dollars ($5,000) in a primary nominating election and as additional three thousand dollars ($3,000.00) for a runoff or general municipal election, commencing with the 1994 election cycle. Thereafter, the voluntary campaign exgeaditure ceiling may be adjusted by Resolution of the City Council each City election cycle by an amount not to exceed the percentage change in Ordinance Number -~/~,..G~~ California per capita income as calculated is accordance urith subdivision (a) of Government Code Section 7901 ar its successor. The voluntary campaign expenditure limit shall apply to the combined campaign expenditures by a candidate and nay controlled committee of that candidate. Section i8-? S~atemeat of Intention o Comniv The City Clerk ahali provide to candidates, at the time each candidate for the City Council files his or her declaration of candidacy, a farm statement of intention to abide by the voluntary campaign expenditure ceiling imaosed by this chapter. A candidate who intends to abide by the voluntary campaign expenditure ceiling shall personally sign and return the statement of intent to the City Clerk not later thaw 24 hours fol7:awiag the deadline far filing a declara.tlon of candidacy. All statements of intent shall be maintained as public records, and the City Clerk shall make available to any person upon request a list of candidates who have filed such statements. Ceilinv. Any candidate who has filed a statement of intention to abide by. the, voluntary campaign expenditure ceiling may revoke such statement at any time, upon xritten request to the City Clerk; eopies'of which are hand delivered the same day to each opponent. Any candidate who has filed a statement of intention to comply with the voluntary campaign expenditure ceiling and who exceeds ~.he voluntary campaign expenditure ceiling shall, on the day that the voluntary campaign expenditure ceiling is actually or practically exceeded, notify the City Clerk is writing with copies of said notification hand delivered the same day to each opponent. The provisions of this Section shall apply to all candidates who have filed statements of intention to comply with the voluntary campaign expenditure ceiling, notwithstanding the fact that any other candidate revokes a statement of intention or exceeds the voluntary campaign expenditure li~¢it. ~PCtion i~-9. yiolar,~.ons - Penalty. Any person who violates Bectioas IS-3 ar 18-4 of this Chapter shall be guilt of an infraction, punishable as provided in section 1.-B afythie Code. Ia the event of a violation of Sections iB - 3 or 18 - ~ by a candidate or a candidate~e controlled committee, the candidate shall be held responsible for the violation. Ia the event of a violation by any non-candidate controlled committee, the eanmtittee treasurer shall be held responsible for the violation." S, S~,',('ION II. If any section, subsectionx, subdivision, paragraph, sentence, clause or phrase of this ordinance ar any part thereof is for any reason held to be imralid, such invalidity shall not affect the validity of the.remaiaing portions of this ordinance or any part hereof. The City Council of the City of Seal Beach hereby declares that it would have adapted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one ox more sections, subsections, aubdivisione, paragraphs, sentences, clauses or phrases be declared invalid. PASSED, APPROVED AND ADOPTE by the City Council of the Cfty of Seal ~h, California, z gul eti thereof held on the ,,. day of , 1993. _i oF~SEAI,:.`F1~tt ATTEST: ~I~o .~ j0~ /x+:o ~J9•~. ~ ' Git'y Clerk ~ ~h'yG+"°~.`~ sr.+°;.i r °' Ordinance Number e~/ sTAT>r of cALrnalzx~- } COUNTY OF ORANGE ~ SS CITY OF SEAL BEACK ~ i. 3aanne M Yeo, City Clerk of the City of Seal Beach, Catifa ia, do hereby certify that the foregoing Ordiaancx iS 8A anginal copy of Ordinance Number ~/~T on fde in the office of th ity Cler , intmducxd at a meeting held on the a?3~ day of 1993, and passed, a ~ed and adt~T by the 'ty Counal of the City of Seai Beach az a meeting he]d on the p =day of .p,.~ i993 by the following vote: ,? ~ _ _ AYES: AIOFS: Councilmembers AESENT: Councilmembers and do hereby further certify that Ordinance Number ~~has been published pursuant to the Seat Beach City Charter and Resolution Number 2836. City/Clerk ~ .~- AGEl~TAA REP®RT DATE: October 27, 2003 TO: Honorable Mayor and City Council THRU: City Clerk FROM: City Attorney SUB3ECT: CAN~FAIGN ®RDINANCE SU1VJ[MARY OF REQUEST: Adopt Ordinance. BACKGROUND: i' Y~~' ~~~-~ .,~` ~ p E The City Council adopted Chapter 1B in 1993, which was a "model" campaign ordinance drafted by a group from Santa Ana. At the time, some groups were concerned about the impact that large contributions and excessive expenditures may have on the outcome of elections. Accordingly, a model ordinance was drafted in an effort to mitigate the perceived problem. The model ordinance was presented to a number of local jurisdictions, including Seal Beach. Seal Beach adopted the model ordinance. Thereafter, campaign ordinances and statewide initiatives on the same subject were routinely challenged in court. Court decisions invalidated most, if not all of the regulations applicable to local jurisdictions, necessitating periodic amendments to the Clty' S Ordlnance. During the City Council's study sessions on the re-codification of the Code, the City Council directed staff to draft an ordinance repealing the campaign ordinance. It was felt that, due to the ever-shifting law on the subject, the City should rely on state law. The next election is March 2004, and the City Clerk has been fielding questions about the validity of the current Code provisions. Instead of waiting for the adoption of the new Municipal Code, staff recommends that the Council adopt the attached Ordinance at this time. Agenda Item G- repealing campaign ordinance FISCAL IMPACT: Reduction in staff time and City Attorney costs in amending Ordinance to comply with State law on a biannual basis. RECOlVIM~NDATION: Adopt Ordinance. rep;aling campaign ordinance 2 ORDINANCE NUMBER !~ AN ORDINANCE OF THE CITY OF SEAL BEACA• REPEALING CHAPTER 1B OR THE CpIDE OF THE CITY OF SEAL BEACH TAI{. CITY COUNCCL QF THE CITY OF SEAL BEACH DOE5 HEREBY ORDAIN A5 FOLLOWS: ~ . Section 1. Cha}~ter 1B, Election Campaigns, of the Coda of the City of Seal ]3each is ` hereby repealed in ifs entirety. Section 2. The City Clerk shall certify to the passage of this Ordinance and cause it to be published or gosted in accordance with Iaw. FASSED, APPROVED and ADOFTED this 27°i day of October 2003. ` ~ ~ Mayor A Ci lerk STATE OF CALIFORNIA ) COUNTY OF ORANGB ) SS CTfY OF SEAL BEACH ) I, Joanne M. Yeo, City Cleric of the City of Seal Seach, California, do he by certify that the foregoing Ordinance is the original copy of Ordinance Number oa file in the office of the City Clerk, passed, approved, and adopted _ the City C il of the City of Seal Beach at a regular meeting thereofheld•oa the day of 2 Jerk C