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HomeMy WebLinkAbout2010-07-13 - AGENDA REPORTS - CAMPAIGN LIMITATIONS (2)Agenda Item: - i CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manager Approval: 1. z! f±//1 Item to be presented by: Councilmember F DATE: July 13, 2010 SUBJECT: CAMPAIGN CONTRIBUTION LIMITATIONS AND DISCLOSURE DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council conduct second reading and adopt an ordinance entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA AMENDING CHAPTER 7.02 OF TITLE 7 OF THE CITY OF SANTA CLARITA MUNICIPAL CODE PERTAINING TO CAMPAIGN CONTRIBUTION REGULATIONS." BACKGROUND At the regular meeting of June 22, 2010, the City Council introduced, conducted first reading, and passed to second reading a proposed` ordinance relating to campaign contribution limits and disclosure. Existing state law outlines campaign contribution and disclosure requirements with which candidates for state and local elective office must comply. Local jurisdictions may enact ordinances that are more restrictive than state law for the elective office of the particular jurisdiction. In the absence of more restrictive campaign contribution and disclosure measures enacted by a local jurisdiction, state law shall prevail as the governing regulations. The City Council is considering the adoption of an ordinance to amend Chapter 7.02 of Title 7 of the Santa Clarita Municipal Code relating to campaign contribution limitations and disclosure. In an effort to enhance the transparency of Santa Clarita's municipal elections, establish some level of parity between the various political jurisdictions within the Santa Clarita Valley, and with a desire to lessen the influence of independent expenditures, the following changes to the Ad®p o Ord. I O -W D Santa Clarita Municipal Code are proposed: 1. Prohibit the ability for anonymous contributions to be made to a candidate, political committee, broad-based political committee, or ballot measure committee. An anonymous contribution is one in which the contributor is unknown. This is different from someone who contributes to a candidate or committee at a level that is not required to be itemized for reporting purposes, but the candidate or committee knows who made the contribution. Under the existing Municipal Code, anonymous contributions of less than $100 may be accepted by a candidate or committee up to a total maximum from all sources of less than $200. The proposed ordinance prohibits anonymous contributions in any amount. Any anonymous contribution received by a candidate or committee may not be kept, but must be paid to the Treasurer of the City of Santa Clarita. This shall result in the sources of all campaign contributions being known to the candidate and/or committee that receives them. 2. A significant number of cities and every other political jurisdiction within the Santa Clarita Valley, including the local school districts, water boards and the Los Angeles County Board of Supervisors permit individual contributions of $1000. For jurisdictions that do not have an adopted formal policy that limits campaign contributions, candidates for office in those jurisdictions may solicit and receive unlimited campaign contributions. The City of Santa Clarita currently has a limitation of $360 per election contest. Recent Santa Clarita municipal elections suggest a trend toward the increasing occurrence of independent expenditures during campaigns. An independent expenditure is an expenditure of money to support or oppose a candidate or position on a ballot measure that is done without the prior knowledge of the candidate(s) or committee(s) benefiting from the expenditure. By increasing the contribution threshold to candidates and committees controlled by a candidate, sufficient sums can potentially be raised by candidates and committees to lessen the impact of the independent expenditures. The proposed ordinance would establish the maximum contribution limit at $1000 per individual donor, still lowest when compared to other Santa Clarita Valley jurisdictions. At the meeting of June 22, 2010, the City Council considered revising the Municipal Code to require the reporting of all contributions to candidates or committees. Public testimony provided to the City Council favored retention of the existing Municipal Code provisions, which provide for aggregate reporting of contributions of less than $100 received by a candidate or committee and itemized reporting of contributions of $100 or more. Provisions of the Municipal Code which enable contributors to donate less than $100 to a candidate or committee controlled by a candidate without having their identity publicly disclosed shall be retained. It is recommended that the City Council enact reforms to Santa Clarita Municipal Code Chapter 7.02; eliminating anonymous contributions and lessening the influence of independent expenditures in Santa Clarita municipal elections by increasing the individual level of contributions, from $360 to $1000 per election contest, to candidates and committees controlled by a candidate. ALTERNATIVE ACTIONS Adopt one, but not both, of the proposed changes to Santa Clarita Municipal Code Chapter 7.02. 2. Make no changes to Santa Clarita Municipal Code Chapter 7.02. 3. Other direction as determined by the City Council FISCAL IMPACT All City Attorney, City Clerk and other staff time, plus collateral materials resulting from changes to the Santa Clarita Municipal Code, as outlined in this agenda report, shall be drawn from the adopted 2010/11 City budget, thus requiring no additional financial resources. ATTACHMENTS Ordinance Campaign Contribution Limits 0 ORDINANCE NO. 10 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING CHAPTER 7.02 OF TITLE 7, OF THE SANTA CLARITA MUNICIPAL CODE PERTAINING TO THE CAMPAIGN CONTRIBUTION REGULATIONS THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Amendments of Chapter 7.02. Chapter 7.02 of Title 7 of the City of Santa Clarita Municipal Code is amended and restated to read as follows: 7.02.030 Contribution Limits. A. Contributions. No person shall make, and no candidate for elective office or campaign treasurer shall solicit or accept, any contribution which would cause the total amount contributed by that person to that candidate or committees controlled by that candidate to exceed one thousand dollars ($1000.00) per election contest. B. Disclosure of Contributors. Candidates shall report the names and addresses of all persons who contribute one hundred dollars ($100.00) or more to their campaign. Such disclosure shall also include the name and address of the contributor's employer. If the contributor is self-employed, the candidate shall report the name and address of the contributor's business. C. Loans. No person shall make, and no candidate for elective office or campaign treasurer shall solicit or accept, any loan which would cause the total amount contributed to the candidate or committees controlled by the candidate to exceed one thousand dollars ($1,000) per election contest: D. Anonymous Contributions. No person shall make an anonymous contribution or contributions to a candidate, political committee, broad-based political committee, ballot measure committee or any other person. An anonymous contribution received by a candidate or such a committee shall not be kept by the intended recipient, but instead shall be paid promptly to the Treasurer of the City. No candidate for elective office or campaign treasurer shall solicit or accept anonymous contributions from any sources. E. Extension of Credit. No person shall extend credit, and no candidate for elective office or campaign treasurer, or political committee, broad-based political committee or ballot measure committee shall solicit or accept any extension of credit which will extend beyond ninety (90) days from the date upon which the debt is incurred by the candidate, or political committee, broad-based political committee, or ballot measure committees. F. Personal Funds. The provisions of this section shall not apply to a candidate's contributions of his or her personal funds to his or her own campaign contribution account. G. Commercial Loans. The provisions of this chapter regarding loans shall not apply to loans made by a commercial lending institution in the lender's regular course of business on terms available to members of the general public and for which the loan recipient is personally liable. SECTION 2. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 3. Publication. The City Clerk certify to the passage of this Ordinance and shall cause the same to be published as required by law. PASSED, APPROVED, AND ADOPTED this day of 2010. MAYOR ATTEST: CITY CLERK 5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance 10- was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the day of 2010. That thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council on the day of 2010, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: AND I FURTHER CERTIFY that the foregoing is the original of Ordinance and was published in The Signal newspaper in accordance with State Law (G.C. 40806). CITY CLERK 3 (0 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL ORDINANCE I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Ordinance 10- , adopted by the City Council of the City of Santa Clarita, CA on , 2010, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 2010. 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