HomeMy WebLinkAboutMemo 03/19/2001 •
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MA,R 14 203'
City of Petaluma, California
Memorandum
City M¢nager's Office, I1 English Street, Petaluma; CA 94952
(707) 778-4345 Eicc'(707) 778-4419 E-rani l:-citpmgrt'thci;petdlutna.ca.us
DATE: March 14, 2001.
TO: Mayor and-Members of the City Council
FROM: Frederick C. Stouder; City Manager
SUBJECT: Proposed Changes to,the:Campaign!FinahceOrdinance
Attached are proposed changes from Councilmember Mike Healy for,your review and
consideration. This item is scheduled for the April 2"d Council evening meeting.
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Attachment
d:/manager/stouder/fs0301/kc
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2 ORDINANCE NO. N.C.S.
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5 Introduced by Seconded by
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12 AN•ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA
13 SETTING MANDATORY LIMITS ON CAMPAIGN CONTRIBUTIONS TO
14 CITY COUNCIL AND CITY 1VIAYOR.CANDIDATES, ENACTING,MANDATORY
15 PUBLIC`.DISCLOSURE REGULATIONS,ENACTING PUBLICFUNDINC
16 • . - '- ._ . !I . • : " ! -
17 EXPENDITURES, PRESCRIBING ENFORCEMENT MECHANISMS
18 AND PENALTIES FOR VIOLATIONS OF SUCH LIMITS
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22 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
23 FOLLOWS: • •
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26 Section 1. The City of Petaluma Municipal Code is hereby amended by adding Chapter
27 1.30 to Title 1, in the manner hereinafter described.
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29 Section 2. Sections being added: 'Chapter 1.30 "Mandatory Limits on Campaign
30 Contributions."
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32 CHAPTER 1.30
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33 MANDATORY LIMITS ON CAMPAIGN CONTRIBUTIONS
34 Sections:
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35 1.30.010 Title
36 1.30.020 Legislative Intent
37 1.30.025 Definitions
38 1:30.030 Contribution Limitation
39 1.30.035 Election Cycles •
40 1.30:040 Disclosure Requirement
41 1.30,042 Aggregation of Contributions
42 1.30.044 Loan to City Candidates and Their Controlled Committees •
• 1.30.046 Multiple Campaign Committees
1.30.050 Public Matching Funds
3 1.30.060 Eligibility for Matching Funds
4 1.30.0570 Independent Expenditures,
5 1.30.06S0 Enforcement
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7 1.30.010 - Title.
8 This Chapter shall be entitled"Mandatory Limits on Campaign Contributions."
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10 1.30.020 - Legislative Intent.
11 To assure the public that: •
12 A. excessive campaign',costs and large contributions do not cause corruption or the •
13 appearance of corruption in the election process;
14 B. large campaign contributions will not be used to buy political access or to
15 influence governmental.actions;
16. C. access to large amounts of money Will not be a• prime requirement for
17 participation inthe political process;
08 D. they are fully informed of the contributors to political campaigns.
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20 1:30.025 - Definitions.
21 A. "Person" means an'individual, proprietorship, firm, partnership, joint venture,
22 syndicate, business trust, company, corporation, limited • liability company,
23 • association, committee, and any other organization or group of persons acting in
24 concert.
25 B. "City election" means any general election, special election or recall election.
26 C. "Election Cycle" shall mean the applicable period as set forth in Section 1.30.035.
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28 1.30.030 - Contribution Limitation.
29 No candidate for city council or mayor; or candidate committee, shall solicit or accept
30 any contribution, including any "in-kind" contribution, that will cause the total contributions
31 from any persoh to exceed twe Three Hundred Dollars (522300.00) during any Election Cycle
with respect to any single city election to that candidate: The recipient of any contribution which
33 would cause•the total amount of contributions to a candidate from a single person to exceed Two
'34 Three Hundred Dollars (32300.00) shall promptly return any such excess to the donor. The
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1 provisions of this section shall not apply to contributions by a candidate, for City Council or •
2 Mayor of his or her own funds to his or her own controlled committee. Contributions by the
3 spouse of a candidate for City Council or Mayor from such spouse's separate property shall be
4 subject to the contribution limits.
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6 1.30.035 - Election Cycles.
7 A. General Elections. For purposes of any election for City Council or Mayor, the
8 term Election Cycle as used inthis chapter shall mean the period commencing on
9 January 1 of the year following a.year in which a,City Council election'is.held:and
10 ending on December 31 of the year in which the next succeeding election is held. .
11 B. Special Elections, For purposes of any special election for City Councilor
12 Mayor, the term Election Cycle as used in this chapter shall mean the period
13 commencing on the date a special election is called by the City Council and
14 ending on the thirtieth (30th) day-following:said special election.
15 C. Recall Elections.. For purposes of any recall,election for City Council or Mayor,
16 the term Election Cycle as,used in this Chapter shall mean the period.commencing: +`
17 on either the date a committee is formed pursuant to the Political Reform Act in
18 support of recall election ortlie date the City Clerk approves a recall petition+for
19 'circulation and gathering of signatures, whichever occurs earlier, and ending on
20 ..the thirtieth ( 0d) day following the first to occur of any of the following:'
21 (1) The time provided by law for the gathering of signatures on recall
22 petitions expires without sufficient recall petition signature having been
23 filed with the City Clerk to require a recall election;
24 (2) All committees formed in ,support of the recall have been terminated
25 • pursuant to the provisions of the Political Reform Act;
26 (3) The date the recall election is held.
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28 1.30.040 - Disclosure.Requirement.
29 A- Each candidate for city council or mayor,.or candidate committee, shall provide•30 detailed itemization, as defined`in the California Political Reform Act of 1971, for
31 all contributions received, regardless of dollar amount.
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1 AB. Each.candidate for city. council or mayor, or candidate shall, file a third pre-
•2 election Campaign Disclosure Statement ,(F.orm 460), as provided by the
3 California,FairP.olitical;Practices Commission'for the period from the:end of the
4 period covered by•the 'Second pre-election statement to 11;59 PM on the third
5 • business day immediately preceding,election day.(normally Thursday). Such
6 statement-shall be filed with the Clerk of the City of Petaluma by 5:00 PM on the
7 second,busine'ss;day'immediately preceding election day,(normally Friday).
8 BC: Each candidate,. and each committee, person or entity making independent
9 expenditures, who sends a mailing or distributes more than.200 substantially
10. similar pieces of campaign literature shall deliver send-a copy of the mailing or
11 other literature to°the CityrClerk at the same time the:mailing or other literature is
12 given to the post officer or otherwise distributed. During the election campaign,
13 the City Clerk1merely serves-as a repository,for such literature and shall not judge
14 or comment on the contents of such literature, All literature so delivered shall be
15 available for inspection in the City' Clerk's office during regular business
• !6 hours. • •
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18 1.30.042 - Asgregation of Contributions., •
19 For purposes of the contribution':limitations contained in this chapter, the following
20 provisions shall apply:
21. A- All contributions made by-a,sponsored committee to;a candidate for City Council
22 or Mayor (or to a committcc controlled by such:candidate) shall be combined with
23 those'contributions;made during the same Elcctien Cycle by the sponsor(s) of the
24 - • committee. Consistent with the definition and use of the terms. "sponsored
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26 not include individual:,
27 AB. Contributions received from the following combinations of individuals and
28 entities must be aggregated.to determine the cumulative amount of contributions
29 received from a.contributor:.
30 el)i contributions from an individual who makes contributions from personal
•1 funds and who:also has sole authority to direct and control contributions
32 made:from:other funds:
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1 (2) Contributions from business entities: in a parent-subsidiary, relationship
2 and business entities with the same controlling owner '(more. than 50 •
3 percent), unless,tlie•entities act completely independently in their decisions
4 to make contributions:
5' (3) 'Contributions from any .member of entities .0 committees if the Sarno
6 person or a'majority of the,same persons in fact directs 'and' controls the
7 contributions, each 'entity makes. - This subdivision' shall not•apply to.
8 treasurers of committccs'if these'treasurers do not participate in or control
9 in any way a decision on Whether the candidate or candidates received
10 'contributions.
11 Be. Contributions by a married person shall be treated as-the:separate contributions of
12 such,person:and shall not be aggregated with any contributions of the spouse of
13 • such person.
14 CD:: Contributions by children under eighteen (18) years of'age shall be treated as
15; contributions by their parent(s)` or legal guardian(s), One-half to each parent or •
16 guardian unless only one parent or guardian has legal, custody of such :child `in •
17 which event•any such contributions shall be,attributed solely to, the'-custodial
18- parent.
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20 _1.30.044 -.Loan to'City`Candidates and Their Controlled Committees.
21 A. A loan shall be considered;a'contribution"from the maker and the.guarantor of the
22 loan,and shall be subject•to'the contribution limitations of this chapter.
23 B The 'proceeds of a' loan made to .a• candidate:for City Council•.or Mayor by a
24 commercial lending institution in the regular course of business on-the same terms
25 available for members of the public shall not be subject to the contribution
26 limitations of this chapter if the loan is made directly to the candidate. The
27 guarantors of;such a loan Shall remain subject to the contribution limits' of this
28 chapter:
29 C. Extensions of credit (other than loans pursuant to subsection By for•a period of
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30 more• than thirty (30) days are subject' to the contribution limitations of'this
31 chapter,
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•1 D. This section shall apply'only to loans.an of credit used or intended far
• 2 use for.campaign purposes.,or which are otherwise connected with the holding of
3 public office.:
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5 1.30.046— Multiple Campaign•.Committees.
6 A. A candidate for,City Council or Mayor shall have no more than one controlled
7 committee and,such.controlled committee:shall haveonly one bank-account out of
q campaign expenses shall
8 which all ualifed,cam ai nand officeholder ex eases related to that office sha
9 be made.
10 B. This section does not prevent a candidate for:City Council or Mayor or a City
11 Council member or Mayor from establishing another,controlled committee solely
12 for the purpose of running for a:state; federal, county or other elective office, or
13 for opposing his or her recall.
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15 1.30.050 Public Matching.Funds.
A- The city will, allocate and provide matching funds equal to fifty percent (50%) of
17 . every dollar expended,'up to,thirty three percent,(33%0) of the expenditure limit as
18 herein defined„to any city .council or city,'mayor candidate; for any single city
19 election who meets the;.eligibility requirements set out in.Section 1.30.060 below.
20 The expenditure limit shall be set:atTwenty Thousand.Dollars ($20,000.00). This
21, limit shall be adjusted based on changes in the Consumer Price Index (all items)
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23 area which includes the city, in,an amount equal to the percentage change for the
24 preceding two y ars Only actual currency or its equivalent shall,be matched with
25 . public funds...Neither loans nor in kind contributions nor amounts.exceeding One
26 Hundred Dollars ($100.00) from the candidate's personal w alth shall be eligible
27 for snatching funds.
28 B- After meeting'the eligibility requirements, any candidate may request matching
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29 funds from°the-cit no. more frc uentl than-once cr week in amounts-no lea
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�1 betsubmitted to the:city no'later than fourteen (14) days before the city election,
32,. but'may be for less than Five,;=lundred Dollars($500.00).
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2 • A candidate who meets the following.requirements shall be eligible"to receive matching
3 funds:
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5 from persons other than the Candidatehimself6r herself; and
6' W. The candidate•signs,a contracf with'thc city committing to the following:,
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9 ' ($10,000:00). Thin limit shall ',bc adjusted based on chang-cs .in the
10 Consumer Price'Index,(all.items)'of the U.S. Department ofLabor, Bureau
11 ' of Labor and Statistics, for'the 'statistical area which includes tile;,city, in
12 an amount equalto the percentage change for the preceding two years;.
13 2 Agrees to'contribute to his or her campaign for any city`election,and
14 during any Election Cycle no more than twenty five percent (25°A).of the
15' expenditure limit,fromhis orher own personal wealth;'
16 3. Agrees to return at least thirty three.percent '(33(:1,0); of any,unexpended
17 • funds received`during any Election Cycle for a single city election to the ..
18 • city, but not more than the matching funds received; and
19 4 Agrees Ito treat any carryover funds from a previous campaign as funda
20 from the candidate's personal wealth, subject to the limits of such funds;
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23 expended on any,single,city election exceeds the expenditurelimit.
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25 1.30.0570,-Ihdepend'entExpenditures. •
26 A. Any;person or entity making an,independent expenditures which,aggregate in
27 excess of One Hundred Twenty'.f}ve Dollars ($ 100:00) during.any Election
28 Cycle.shall„deliver notice in writing of such independent`expenditure, as "well, as - .
29 • the amount of such expenditure, and a detailed description of the use of such
30 independent expenditure. , Within twenty four (24) hours after,obligating funds
31 for such-expenditure Such-notice shall be filerl witivdclivcred to-all.candidates.in •
32 the affected race and to the-City Clerk on a form prepared by the City Clerk for -
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•1 such,purpose. The notice; shall. specifically state the name of the candidate or
2 candidates whom the independent expenditure tis intended to support or oppose,
3 and shall'also include the information required to be provided on the Campaign
4 Disclosure Statement (Form-460) as.provided by the California Fair Political
5 Practices Commission.. - . --- • • - -
6. new notice. Such notices shall be filed d for'the samereporting periods, and by
7 the same deadlines;: as are expenditures by candidates'pursuant to the
8 California Fair Political Practices Act and by section 130.040(A) of this
9 ordinance.
10 B. Any person or entity making;,an independent expenditure in excess of z
11 One Hundred Dollars ($25100:00) shall disclose.in any printed:or other political
12 message. produced by the expenditure, the fill name of the all persons who
13 contributed One .Hundred,Dollars ($100,00) or more to , the name of the
14 registered agent, the amount of the'$expenditure, and the specific statement that the
15 advertisement or material is not authorized by any candidate. Such disclosure
16 shall be printed in 12-point type or larger in any written materials, and
17 prominently.displayed in';any non-written materials. ,prominently f atured in the •
18 potential message. _
19 1. Expenditures by any person or entity pon behalf of a candidate for public
20 office thiat are coordinated with, or controlled by the candidate or the
21 candidate's agent shall be consideredra contribution to the candidate and
22 subject the ,candidate i and the contributor to any applicable penalties
23'• • contained in this ordinance. Merely distributing a candidate's literature
24 shall not constitute coordination or control within the meaning.,of this
25 subsection. .
26 2. . "Independent expenditure" means payment of money by any person or
27 .entity'for the purpose of,advocating the election or defeat of a candidate,
28 which expenditure is not controlled•by, coordinated with, or made upon
29 consultation with any candidate, or any agent of such candidate.
30 • "Independent' expenditure" includes expenditures for political messages
01 which unambiguously refer to any specific public office or candidate Mr
32 such .office, and includes but is not limited to expenditures for the
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1 design; printing or mailing of literature;for salaries or commissions
. 2 paid tmen y persons distributing,literature or in any way advocating the
3 election'or defeat;of specific candidates;for the design and production
4 of signs; and for='newspaper'or other paid°advertising:. In calculating the
5 amount of eYpenditurei to lie, reported, all monies expended in
6 connection with the literature, advertising; :labor, 'mailing or other
7 expense in which the reportable activity is contained:,shall be reported,
8 even if portions of the subject material or other .expense are not
9 otherwise reportable. but does'not include expenditures made by persona
1'0 or entities, other than political parties and political-committees, in the
11 regular course and scope of their business', including political messages.
12 ,sent solely to members. If the definition of independent expenditure used •
13 herein is determined to be contrary to state law, then the•term shall 1)&8,
14 defined by the ROliticaFReform Act.
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16 1.30:0680 -Enforcement. • •
17 A. The city council is• empowered 'to create an advisory committee and other
18 enforcement.procedures as it deems appropriate to implement thisiordinance.
19 B. The'city attorney or any attorney retained'by the City or by the city attorney in the
20 case if a conflict of interest on the part of the :city attorney or otherwise;shall
21 •enforce°all'provisions of•this=ordinance.
22 C:'"` Any registered elector of the city may'bring a civil action :including, without • -
23 . limitation, an action for injury, and may sue for injunctive relief to 'enjoin .
24 • violations or to compel:compliance'with'this ordinance consistent with D',.and.E„
25 below, provided suet' person first files withLthe city'attorney a`written request:for
26 the city•,attorney'to commence action. The request shall ,include a statement of
27 grounds for believing a,cause of action exists. The city attorney or any attorney
28 retained by the,City or by the city attorney in the case of a conflict,of,interest on
29 the'part of thecity attorney or otherwise shall respond within ten (10) days after.
30 receipt of the request indicating whether the city attorney intends to file a civil•
3;1 action: If the city attorney or any attorney retained by the City or by the city
32 attorney in the case of'a conflict of interest on the part of the city attorney or•
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1 otherwise indicates in the affrnmative',�and files suit within thirty (30) days
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'• 2 thereafter, no other civil action forrthe.,same violation may be brought unless the
3 action brought'.by the city.,attorney or any attorney retained by the City or by the
4 city attorney in the case of a.conflict of interest on the part of the city attorney or
5 otherwise isdismissed without,prejudice:
6 D. Any candidate.or-candidate committee who knowingly accepts a contribution in
7 excess of Two Three Hundred, Dollars ($2300.00), knowingly accepts
8 contributions from persons or entities within the meaning of section.1.30.042 of
9 this ordinance aggregate in,excess of Three Hundred.Dollars ($300.00)
10 or otherwise violates exceeds the expenditure limit;-in,violation of the contract
11 with the city and this. ordinance is liable in a civil;. action initiated by the city
12 attorney or any'attorney retained by the City or by the city attorney in the case 'of
13 a conflict of interest on the part-of the city attorney or otherwise or by a registered
14 elector of the city'for an amount up to Five'Hundred Dollars ($500.00) or three
15 times the amount by which the ,contribution or expenditure limit is exceeded,
aly17 E. Any person or enti " making independent expenditures that violates a
6 whichever is eater.
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18 provision of this ordinance-is liable in a civil action initiated by the city,attorney
19 or'any attorney retained-by the City or by the city attorney in the case of a
20 conflict of interest on`the part of the:city attorney=or otherwise or by a registered
21 elector,of the city for an:amountup to Five Hundred Dollars ($30000) or three
22 times. the amount by which the subject,contribution or expenditure is in
23 violation, whichever is greater.
24 1;F. In determining the amount. of liability, the ,court may take into account the
25 seriousness of the violation and the culpability of the:defendant.
26 G. The prevailing party in any civil action brought pursuant to this;ordinance shall
27 be awarded its reasonable attorney's fees, to b'e paid by the unsuccessful party!
. 28 H. Any civil action must be filed within six (6) monthsof the alleged violation.
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30 Section 3. If any section, subsection, sentence, clause or phrase or word of this ordinance
•1 is for any reason held-to be unconstitutional; unlawful or otherwise invalid 'by a court of
32 competent jurisdiction, such decision'shall not affect the validity of the remaining portions of
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1 this :ordinance. The City Council of the City of Petaluma hereby-declares that it would have •
2. passed and adopted'this ordinance and each and all provisions`thereof irrespective of the fact that
3 any one orgmore of said provisions be declared unconstitutional, unlawful or otherwise invalid.
4 Section 4`. This ordinance shall',become effective thirty(30) days after'the date of its
5 adoptiombythe Petaluma City Council.
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7 Section 5. The City Clerk is hereby directed to%,post'this ordinance for the period and in
8 the manner;requiredby`the City Charter..
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10 INTRODUCED and ordered posted/publishedthis' day of . 2001.
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12 ADOPTED this day of , 2001'by the following vote.
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14 AYES: •
15 'NOES:
16 ABSENT:
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20 Mayor •
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22 ATTEST: APPROVED AS TO FORM:
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26 City Clerk' City Attorney
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35 healy •
36 3/13/01 (fink)
1.1,