HomeMy WebLinkAbout2006-06-27 - AGENDA REPORTS - CAMPAIGN FIN (2)Agenda Item Z V
CITY OF SANTA CLARITA
AGENDA REPORT
UNFINISHED BUSINESS City Manager Approval:
Item to be presented by:
DATE: June 27, 2006
SUBJECT: CAMPAIGN FINANCING
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council receive report and provide direction to staff.
BACKGROUND
At the February 14 and February 28, 2006, City Council meetings, residents requested the City
Council consider the issue of public campaign financing for city elections. At the February 28
meeting, Council directed staff to prepare an agenda item relating to campaign financing.
In California, modem campaign finance regulations began with the Political Reform Act of 1974
(PRA). The PRA requires the disclosure of campaign contributions and expenditures in
connection with state and local elections. These requirements provide a detailed description of
candidates' campaign sources, thereby educating the voters of potential influences on the
candidate, and are designed to prevent evasion of campaign restrictions imposed by the PRA.
Campaign statements must include the total amount of contributions received from contributors
over a specified threshold and the total amount received. Identification of contributors is
required when contributions total $100 or more. The State does not have specific limitations on
the amount an individual or political action committee can contribute to a candidate in a
municipal election. However, a city may limit campaign contributions in municipal elections by
way of an ordinance or resolution (California Elections Code 10202).
On February 13, 1990, the Santa Clarita City Council enacted an ordinance to limit contributions
from single sources to candidates for municipal office by imposing contribution limitations and
reporting procedures. The purpose of these requirements is to make local government more
accessible to the citizens by informing them of contribution sources and uses. Section 7.02.030
of the Santa Clarita Municipal Code (SCMC) addresses contribution limitations, including loans,
disclosure of contributors, anonymous contributions, extensions of credit, personal funds, and
RECEIVED
commercial loans. Campaign disclosure reports are available for viewing on the City website or
by request in the City Clerk's Office.
As of October 14, 2003, the City limits contributions made to either candidates or committees
controlled by the candidate to $360 per person per election cycle, and requires all candidates to
disclose the names and address of all persons who contribute $100 or more to their campaign.The
candidate must also report the names and addresses of the contributor's employer. Similarly, no
person may make an anonymous contribution to a candidate, ballot measure committee, or
political committee totaling $100 or more. The Municipal Code follows the Government Code's
definition of "Person" which is "an individual, proprietorship, firm, partnership, joint venture,
syndicate, business trust, company, corporation, limited liability company, association,
committee, and any other organization or group of persons acting in concert."
The ordinance also prohibits candidates from accepting any loan in excess of $1,000, and an
extension of credit which will extend beyond 90 days from the date the debt is incurred. Political
committees involved in a city election must file campaign reports with the City Clerk.
Any violation of the provisions pertaining to Section 7.02.030 of the SCMC may result in a
misdemeanor and is punishable by a fine of up to $1,000 or imprisonment for up to 6 months.
In assessing the City's campaign contribution guidelines, staff updated a survey originally
conducted in 2003 to review the guidelines used by comparable cities. Eleven of the twenty-four
cities surveyed have placed no limitations on the amount an individual may contribute to a
candidate's campaign, one city has a $1,500 limit, two have adopted a $1,000 limit, and the
remaining nine cities allow individual contributions in a range from $100 to $500 per election
contest. In comparison to the surveyed cities, Santa Clarita's campaign financing limitations are
one of the more conservative.
Other public agencies in the Santa Clarita Valley, including the Newhall County Water District,
Castaic Lake Water Agency, William S. Hart Union High School District, Saugus Union School
District, Sulphur Springs School District, and Newhall School District, currently do not have in
place any contribution limits to candidates seeking elected office. They do require disclosure of
contributions of $100 or more.
State Leeislation
Under existing law, General Law cities are obligated to conduct municipal elections in
accordance with the provisions of the California Elections Code and the Political Reforms Act
(PRA). Thus general law cities are prohibited from expending public funds to finance campaigns
for public office (California Government Code 85300). Changes to the Political Reform Act
require a 2/3 vote in each house of the Legislature and submitted to the voters.
State legislation, AB 583 (Hancock- D), has been introduced to allow for the creation of a
publicly funded campaign financing system for state offices. Proponents of this measure claim it
will lower overall campaign spending, restrict special interest funding, increase voter turnout,
and encourage a greater variety of individuals to run for office. Passage of AB 583 would enact
the California Clean Money and Fair Elections Act of 2006, which would continuously transfer
revenue to the Fair Political Practices Commission (FPPC) in an amount equal to $.01 per day
times the number of California residents 18 years of age of older, and authorizes eligible
candidates for statewide office to obtain public funds for their campaigns.
To qualify for the public funds, a candidate would gather a specified number of signatures
accompanied with a $5 contribution. Candidates would then receive a baseline amount of public
funds determined necessary to run an election. If the candidate is outspent by a nonparticipating
opponent, the publicly funded candidate would receive additional funds. Participating candidates
would be allowed to receive seed money contributions, not exceeding $100 per registered voter,
for the purpose of paying expenses incurred in qualifying for the public financing system.
Furthermore, participants would be prohibited from receiving private contributions from any
source other than qualifying contributions and seed money contributions. A public campaign
financing program would be voluntary and would not impose any additional provisions on
candidates not participating in the program.
AB 583 would repeal Section 85300 of the Government Code, which prohibits the use of public
funds for campaign purposes. This could be interpreted to allow for the use of non -clean money
public funds for campaign purposes, thus permitting general law cities to enact their own public
financing measures for local races. At that time, the City, through ordinance or resolution, could
choose to fund a full public financing campaign system or a matching system by transferring
funds from the general fund, issuance of fees, or implementation of a special tax.
Opponents of this system have expressed concerns pertaining to candidates using illegitimate
methods to gather the qualifying signatures, inappropriate spending of public funds and
complexities in monitoring the spending of these funds, and the sentiment of citizens whose
taxes are spent to fund the campaign of someone they do not support. Additionally, the proposed
public funding system may grant an unfavorable advantage to incumbents.
On May 17, 2006, a hearing by the Senate Elections Committee was postponed. If enacted by the
Legislature and signed into law by the Governor, the provisions of AB 583 would be submitted
to the statewide electorate on June 3, 2008.
ALTERNATIVE ACTIONS
Other actions as determined by the City Council
FISCAL IMPACT
The fiscal impact is dependant on the direction provided by the City Council.
ATTACHMENTS
Campaign Contribution Survey 2006
a
8
8
8
8
8
8
88
88888888888888
8�
b9
69
69
(A
b9
fH
69
b9
Vi
6A
69
69
69
69
59
d9
69
69
69
69
fA
69
fA
fA
"
z
�U
ZO
0
v
z
z
z
z
z
z
zz
zzzzzzzzzzzas%j»gfAV,
O
F
d
00
00
N'i}
M
00,00
•N+
00
O
0000
'
a+
4
of
�n—;000••;
00
M
00
00
l-
M
Qp
M
0O
M
\0
ppON
O
I—
00
N
et
M
fV
10
r -
Ml�
\D
W
00
M�
.11-11..06�
N
•-..
•N -i
M
g
rm
Ci
++
x
w'
O-
O
•�. •i -i
t
a+
p
u
a
W
x
Ta
C
V
U
upo
a"
W
CA
o
d
C
C
�C
S
dW
m O
Com"
.�'
:7
IAcn'v`�ivz12
�H
nv�ov'r
0Qvc7t7az°o:i�a°¢�v�a
§
§
�
/
i
)
a
§
b
f
|
f
�@f0000
§
S
k
7
R\
-&
�
a
\
pen
e
)
»
3
�
a
�
£
�a«■�