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HomeMy WebLinkAboutItem 6.6 AmendMuniCdChapt 2.2 (2) '" . . . . <; .CITY CLERK File # @]~[!]~-[I]~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: MAY 28,1996 SUBJECT: ... ,.. EXHIBITS ATTACHED: RECOMMENDATION: \i~ Public Hearing: Amendment of Dublin Municipal Code Chapter 2.28 Relating to Campaign Contribution Limitations (Report prepared by Elizabeth Silver, City Attorney & Kay Keck, City Clerk) 2. FINANCIAL STATEMENT: None 1. Draft Ordinance Amending Chapter 2.28 of the Municipal Code relating to Campaign Contribution Limitations Red-lined version of current Chapter 2.28 showing changes Agenda Statements from April 23 (Item 8.2) and May 14, 1996 (Item 7.2) Council meetings Agenda Statement from September 13, 1993 meeting Copy of Government Code Section 84211 Alternate Draft Ordinance 'Amending Chapter 2.28 3. 4, 5. 6. 1. 2. 3. 4. 5. Open public hearing Receive Staff presentation and public comment Question Staff and the public Close public hearing and deliberate Take appropriate action. DESCRIPTION: At the May 14, 1996 Council meeting, the Council considered the issue of campaign contribution limitations for the office of Councilmember and Mayor. By motion made by Councilmember Moffatt, the Council directed the staff to prepare an ordinance to include the following: 1) an election period to commence 120 days prior to and following an election; 2) a $300 limit on contributions; 3) a declaration under penalty ofpetjury that the candidate has not collected more than $300; 4) campaign statements shall itemize any amount over $25.01; . --------------------------------------------------~---------------- COPIES TO: H1cc-forms/agdastmt.doc ITEM NO. ~.. " =- " 5) 6) contributions can only be accepted during an election period; and if any part of the ordinance is held invalid, the remainder shall not be affected. ..: The City Attorney has drafted an ordinance which includes the six items included in CounciImember Moffatt's motion. (Exhibit 1.) Summmy of Draft Ordinance The draft ordinance ~ould make the following changes from the City's current ordinance, Dublin Municipal Code Chapter 2.28 (see Exhibit 2.): 1. Election Period The City's existing Campaign Contributions ordinance limits contributions made "with respect to an election." This term was adopted in 1993 when the ordinance was last amended. Prior to 1993, the City's ordinance defined an "election period" to be the period commencing July 1 prior to an election and ending June 30 following an election. The Agenda Statement for the September 13, 1993 Council meeting (Exhibit 4) explained that federal law, which has been upheld by the courts, limits contributions "with respect to an election" whereas state law, which ' limited contributions per fiscal year, has been held to violate the First Amendment. The draft ordinance eliminates the phrase "with respect to an election" and reverts to the . concept of an "election period." Staff recommends that the Council consider retaining the , ,:'. definition of "with respect to an election" rather than using the term "election period" for the reasons expressed in the September 13, 1993 Agenda Statement. 2. Dollar Limit on Contributions The current ordinance limits contributions for both the office of Mayor and the office of Councilmember to $1000 "with respect to an election." The draft ordinance would impose a $300 limitation for both offices. No contributions would be allowed except during the period 120 days prior to the election and 120 days following the election. The next municipal election will be held on November 5, 1996; 120 days prior to the election is July 18, 1996 and 120 days after the election is AprilS, 1997. By state law, a candidate can take out nomination papers and officially declare his or her intent to run for office on July 15, 1996. The proposed ordinance would result in a three-day period where a person has officially declared his or her intent to run for office but cannot accept contributions. In addition, a candidate can complete a form (Statement of Intention) stating the intention to run for future .: . e:, .' If the draft ordinance is adopted, it will apply prospectively only. (Because violation of the ordinance is a misdemeanor, an attempt to apply the draft ordinance retroactively would amount to an ex post facto law which is prohibited by the Constitution.) Hence, if an individual has, as of the effective date of the amendments to the Municipal Code, collected contri~utions for the upcoming election in November 1996 for either the office of Mayor or the office of Councilmember from any person in excess of$300 (but no more than $1000), there is no , requirement that such monies be returned and no violation of the Municipal Code has occurred. Similarly, an individual who has received contributions during the time the current ordinance is in effect would not be in vi~ration of the proposed ordinance even though the receipt of such contributions would have violated the proposed ordinance's restriction on contributions more than 120 days prior to an election if the proposed ordinance had been in effect. The change in the dollar limitation from $1000 to $300 will impact the reporting requirements for the November 1996 election. Candidates who have collected monies in excess of $300 or have collected any money during the period more than 120 days prior to the November 1996 election (i.e., July 18, 1996) will have to segregate such monies in their statement filed pursuant to Municipal Code Section 2.28.040 in order to enable the City Clerk to determine whether there has been compliance with the existing ordinance and the new ordinance's requirements during the time periods each ordinance is in effect. 3. Disclosure of Amounts Contributed The current ordinance relies on state law for reporting requirements. State law requires candidates to report amounts received in excess of $1.00 from any contributor. The proposed ordinance would require candidates for City office to report amounts received in excess of$25. It would do so by requiring Campaign Statements filed pursuant to Government Code Section 84211 (Exhibit 5) to contain infonnation regarding JUI contributions in excess of $25. This infonnation would be included in the Campaign Statement filed with the City Clerk. 4. No Contributions Exce.pt Durini Election Period The City's existing Campaign Contributions ordinance limits contributions to $1000 "with respect to an election." Candidates can thus accept contributions at any time prior to an election once they have declared their candidacy (and following the election if there are campaign debts). The proposed ordinance would prohibit candidates from accepting contributions except during the 120 days prior to and following an election. The Ninth Circuit Court of Appeal has struck down a campaign limitation law that.restricted campaign contributions to fiscal years rather than election periods on the grounds that the law would supposedly operate to benefit incumbents (who would seek contributions eaCh year they are in office in anticipation of seeking re-election) over challengers (who likely would not seek contributions early on). (Service Employees Int'l Union v. Fair Political Practices Commission (9th Cir. 1992) 955 F.2d 1312.) It .3- is unclear whether a law allowing contributions to be made for a particular election onl,y during a particular period and prohibiting contributions during other periods would be found to be e .. constitutional. Because the city could impose a limitation on contributions for the entire election period, which is a less intrusive means of achieving the same result, it is likely that a court would not uphold a prohibition on contributions for the bulk of the time between elections. This reason is another the staff recommends that the Council retain the defInition of "with respect to an election" which would allow contributions during the entire time prior to an election. ~ ". ~ 5. Effective Date # The draft ordinance can take effect immediately because it relates to an election. Government Code section 36937 provides that ordinances take effect 30 days after their fmal passage except for five categories of ordinances which take effect immediately. One of the five categories is an ordinance "relating to an election." Accordingly, the Council may provide that the draft ordinance shall take effect immediately. (Another of the five categories is an ordinance for the immediate preservation of the public peace, health or safety which contains a declaration of the "urgency"; df the five types of ordinances which take effect immediately, this is the only type which requires a four-fifths vote.) Recommendation Staff recommends the Council consider the proposed ordinance and take appropriate action. Although the ordinance includes language stating that it will take effect immediately, it is still necessary that it be introduced at one meeting and adopted at a subsequent meeting. (It is only "urgency" ordinances which can be introduced and adopted at the same meeting.) Thus, if a motion to waive the reading and introduce the ordinance passes tonight by a majority vote, the ordinance can be adopted and take effect on June 11, if it contains language to that effect. .'., An alternate version of the draft ordinance is attached (Exhibit 6) which incorporates the staff recommendations discussed above in paragraphs 1 and 4 if the Council concurs with Staffs recommendation. . 4- .,:- . .- .~ . ORDINANCE NO. - 96 AN ORDINANCE OF THE CITY OF DUBLIN *************** AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 2.28 OF THE DUBLIN MUNICIPAL CODE ~., RELATING TO CAMPAIGN CONTRIBUTION LIMITATIONS FOR ELECTIONS TO TAKE EFFECT IMMEDIATELY THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS: SECTION 1. Section 2.28.020 Amended -- Election Period Defined Section 2.28.020 of the Dublin Municipal Code is amended by deleting the definition of "With respect to a single election" and inserting the following new definition: "Election period" means that period oftime commencing 120 days preceding the date of any election and ending 120 days following such election. There shall be a separate "election period" for each election. SECTION 2. Section 2.28.030 Amended -- Contribution Limit Revised Subsection A of Section 2.28.030 of the Dublin Municipal Code is amended to read as follows: "A. No person shall make any contribution or contributions to a candidate or committee which exceed the cumulative amount oftbree hundred dollars ($300), nor shall any such contribution or contributions which exceed the cumulative amount oftbree hundred dollars ($300) be accepted by any candidate or committee from any person during an election period." SECTION 3. Section 2.28.030 Amended - Prohibition on Contributions. Subsection C is added to Section 2.28.030 of the Dublin Municipal Code to read as follows: "c. No person shall make any contributions to a candidate or committee nor shall any candidate or committee accept any contribution or contributions except during an election period." 1 EXHIBIT 1 SECTION 4. Section 2.28.040 Amended -- Declaration re Compliance . Subsection A of Section 2.28.040 of the Dublin Municipal Code is amended to read as follows: "A. To ensure full compliance with this chapter, each candidate shall execute a declaration under penalty of perjury on a fonn provided by the City Clerk stating that such candidate did not receive any contribution or contributions totaling more ~ than three hundred dollars ($300) from any person during an election period." SECTION 5. Disclosure of Amounts in Excess of $25 Section 2.28.040 is added to the Dublin Municipal Code to read as follows: "'When filing the Campaign Statement required by Article 2 of Chapter 4 of Title 9 ofthe Government Code, commencing with Section 84200, each candidate for the office of Mayor and Councilmember shall include in such Campaign Statement the same infonnation required by subdivision (f) of Government Code section 84211 for contributions (including loans) in excess of$25 receiveq from any person." SECTION 6. Renumbering .. Section 2.28.040 of the Dublin Municipal Code, entitled "Filing of Verified Declaration" is renumbered as "Section 2.28.050," and Section 2.28.050, entitled "Violation Penalty" is renumbered as "Section 2.28.060." SECTION 7. Severability If any part of this ordinance or the application thereof to any person is held invalid, the ~ remainder of the ordinance and the application of such provision to other persons shall not be affected thereby. SECTION 8. Immediate Effect This ordinance imposes restrictions on monetary contributions to candidates for office at municipal elections and thus relates to an election. Pursuant to Government Code section 36937(a), this ordinance shall take effect immediately. 2 . . . . SECTION 9. Posting The City Clerk ofthe City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Goverrunent Code of the State of California. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this _ day of _, 1996, QY. vote as follows: , AYES: NOES: ABSENT: ABSTAIN: MAYOR ATTEST: CITY CLERK J:\WPD\MNRSW\114\ORD\CAMPAlGN.W61 3 (Excerpts from Chapter 2.28 [Campaign Contributions] of the Dublin Municipal Code indicating proposed changes) . 2.28.020 Definitions For the purpose of this chapter, definitions codified in the Political Reform Act, beginning at Gove~Ihent Code Section 82000, et seq., shall apply with the addition of the following: "Election" means any municipal election, whether general or special, at which the offices of Councilmember and/or Mavor are to be filled. .I "\'Vith respect to a single election" means: 1. 11".. the case of a contribution dcsigr..ated in '..vriting by the contributor for a pan.ieular electiar.., the election so desigr,ated, pro\.idcd tbat a contribution designated ir, ~.\Iiting for a particular election may be made after the electior.. and plior to June 30th follo'Yving the election only to the extent such contribution does not exceed 1""..et debts outstanding from that ekction; 2. 11"".. the case of a contribution not designated in v.riting by the contributor for a particular election, the next election for the office after the contribution is . made. .iEi'e'ction 'Perlod,iITieans"that periocf of time cc}Iillrie~cing f2q, days'preceding , the d~te:of ally el~~9ri a~d en~ing 12Q days"follo~!1K,~~gfeJ~c~i,9j1. ,':Iheic; shall be a separate ~:~lectionkeriQ<t'~:for each ele~on. - "' (Ord. 10-93 S 1: Ord. 21-87 S 2) " 2.28.030 Limitations on contributions. A. No person shall make any contribution or contributions to a candidate or committee which exceed the, cumulative amount of one tbousand ($1,000) three hundred ($300), nor shall any such contribution or contributions which exceed the cumulative amount of one thousand ($1,000) three~~<:tred($3QO), be accepted by any candidate or committee from any person \\ith respect to a single during an election period. B. The prohibition stated in subsection A of this section shall not apply to contributions made or received in support of, or in opposition to, a ballot measure, nor shall said prohibition apply to contributions made by a candidate to his or her . campaign. (Ord. 10-93 S 2: Ord. 21-87 S 3) EXHIBIT 2 . . " . ". .. _" c~' ,N(). perS9~ s,[t~F*e. ~YC9~~qyif,on~:i~,i~~~~~,t~qr:cq~ittee nQI shall an" _ Cclrididate~or:'comiiUttee. acce ,: tan" :'c6ntiibfitlo*or~conttibutions eXce . t ~".i,:.. ':'~':'''Y;.'''''.'''''':'''' "<";>,~"",,,,,,;,,:,:,,,,,,,---~,,,~-,,~,"_P..._--...Y ...... --' , ..---..........-..-----. ...'.~.... _.P~, 4~g.~j~!.~5:g.2!hPeJj24.: 2:2'8:'046 "..,__... ~ ~""'i"~~"'_""''''''''' ". ~" ~''" ..- .~ ~l''''~''''''''~ .~,.~..... ,- '"~ . ~ ,.,<_.-.....-~. ~.......~,,--"'.,...... .....'"'""'!"". ,~..,....,.,~ DisclosUre of amounts in ex:cess:of $25 _."r"_"''''~__~~:'_''''^' ." ,__ ...... ,~".' ... ^W .<.........""~.._.^.N4'.....~_.........,...".,,.. ,'^' Wher(fiiilig:~-e~ainpaIgnStatefrienfreqUiIed-by-Artide ~fo(chaptei-' 4 of Title 96fthe Govdruuelt'tCode, 'commencing with Section 84200, each candidate for the offic~:o{Mayor axi~ Councilmernber shan inciu'd~eir!:suchCampaign ." Statement. the same information required by subdivision(f)of Government Code section...~1:~ ~ 1 J()r ~gg!Tibll.go!1S (inch.ldiJ:lg l()*I1s )!:r.:L~2fS~_S.~,_,()(~~~Jeceived from~ny p~rsQ~. 2.28.04G?9 Filing of verified declaration A. To ensure full compliance with this chapter, each candidate shall execute a declaration under penalty of perjury on a form provided by the eit; City Oerk stating that such candidate did not receive any contribution or contributions totaling more than one thousand ($1,000) !hree !l!:1:p:dred ($~OO), from any person \\ith respect to during an election:p~itod. B. The declaration required by subsection A of this section shall be filed with the City Clerk with each preelection statement filed pursuant to state law and \Vith the semi-annual statements required to be filed pursuant to state law, (Ord. 10-93 S 3: Ord. 21-81 S 4) 2.28.0:5-9 qO Violation--Penalty. ONLY NUMBERING CHANGES IN THIS SECTION. J:\WPD\MNRSW\114\ORD\MUNlCODE,EXC CITY CLERK File # D~r3J[QJ-~[GJ AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 23, 1996 .' SUBJECT: Campaign Contribution Limitations (Report Prepared by Elizabeth Silver, City Attorney) EXHIBITS ATTACHED: ." Dublin Municipal Code Chapter 2.28 (Campaign Contributions) RECOMMENDATION: ~f\J'."/ Receive report and provide appropriate direction to Staff FINANCIAL STATEM:ENT: None DESCRIPTION: Under discussion of "Other Business" at the March 26, 1996, City Council meeting, Councilmember Barnes requested that Staff place on a future agenda, the issue of campaign contribution reform. :.'.:,'.:: The Council first adopted an ordinance limiting campaign contributions in 1987 (Ordinance No. 21-87). :, The ordinance was codified in Dublin Municipal Code Chapter 2.28. Amendments were made to Chapter .,' 2.28 in 1993, which included increasing the contribution limit from $300 to $1000 with respect to a single election. Other changes were made to Chapter 2.28 to be consistent with state and federal laws relating to campaign contribution limitations. Expenditure limitations ar~ subject to strict scrutiny and will be upheld only if they are narrowly tailored to serve a compelling state interest. The United States Supreme Court held in the case of Buckley v. Valeo that it is unconstitutional to limit a candidate's personal expenditures. A limitation on expenditures is viewed as a restraint on Constitutionally-protected rights of expression and association. Spending limits are thus not valid unless they are tied to the receipt of public funds. J:\ WPDUv1NRSW\114\MISC\TERM-LMT.STM ',..:. K:;gI4-23-96IascampnS.doc ------------------------------------------------------------ COPIES TO: EXHIBI. :.3 ITE1\1 NO. .8..L Rptt-:L :l~, 1'11(;, . . . CITY CLERK FILE # D~b3JraJ-~[QJ CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE MAY 14, 1996 SUBJECT: . , . Campaign Contribution Limitations and Campaign Expenditure Limitations (Report prepared by Elizabeth H. Silver, City Attornry, and Kay Keck, City Clerk) EXHIBITS ATTACHED: 1) San Ramon Ordinance and Resolution 2) Agenda Statement for April 23, 1996 (Item 8.1) RECOMMENDATION: ,?-il,;~'. 1) Consider Motion to "Take From the Table" 2) If Motion Passes, provide appropriate direction to staff FINANCIAL STATEMENT: None DESCRIPTION: Background This matter came before the Council at the April 23, 1996 meeting. Mter discussing the issue, staff suggested that the item be continued to this meeting to research issues which were raised in the discussion. The Council voted to "table" the item. Staff has interpreted this to be a motion to continue the item inasmuch as no motion was pend- ing when the motion to "table" was made. The two issues which staff has researched are: (1) Can the City limit the source of campaign contributions made to candidates running for city office to City residents and/or non.residents who work in the City?; and ITEM NO. 7:i \~l (2) Does the City of San Ramon have in effect campaign expenditure limitations? Validity of Contribution and Expenditure Limitations Both contribution limitations and expenditure limitations are subject to strict scrutiny and will be upheld only if narrowly tailored to serve a compelling governmental interest. Austin v. Michigan Chamqer of Commerce, 494 U.S. 660, 657, 110 S. Ct. 1391, 1396 (I 990), citing.Buckley v. Valeo. 424 U.S. 1,44-45, 96 S. Ct. 612, 646-647 (I976). At issue in the leading case of Buckleyv. Valeo were provisions of the 1971 Federal Election Campaign Act (the "Act"), as amended in 1974, which placed limitations on both political contributions to, and expenditures by, candidates for federal office. The Act limited contributions by individual~ or groups to $1,000, and contributions by political committees to $5,000, for any single candidate per election. The Act limited expenditures by an individual or a group "relative to a clearly identified candidate" to $_ 1,000 per candidate per election, and by a candidate from personal or family funds to differing amounts, depending on the office sought by a candidate. The primary purpose advanced as justification for the Act's contribution and expenditure limitations was the government's interest in eliminating the appearance of impropriety and actual corruption associated with large financial contributions. Although contribution limitations infringe on a contributor's freedom of association and expression rights, the Supreme Court found the contribution limitations constitution~l because the governmental interest advanced justified the burdens placed on the rights. The contribution limitations were one of the "Act's primary weapons a- gainst the reality or appearance of improper influence stemming from the dependence of candidates on large campaign contributions. . . [which] serve[d] the basic governmental interest in safeguarding the integrity of the electoral process without directly impinging upon the rights of individual citizens and candidates to engage in political debate and discussion." Buckley, 424 U.S. at 58,96 S. Ct. at 653. While the Supreme Court upheld as constitutiQ!.lal the Act's contribution limitations, it determined that the expenditure limitations unconstitutionally infringed on the guarantees of the First Amendment. Because they are considered to be a more direct re- straint on freedom of expression and association, expenditure limits require a more compelling justification than do restrictions on contributions. California Medical A- ssociation v. Federal Elections Commission, 453 U.S. 182, 194, 196-197, 101 S. Ct. 2712, 2722-2723 (1981). In determining whether or not a restriction on expenditures can be constitutionally applied, therefore, a court will "ascertain whether it burdens the exercise of political speech and, if it does, whether it is narrowly tailored to serve a compelling state interest." Austin v. Michigan Chamber of Commerce, 494 U.S. 660, . . . . . . 657, 110 S.Ct. 1391, 1396 (1990), citing Buckley, 424 U.s. at 44-45, 96 S.Ct. At 646- 647. In finding the expenditure limitations to be unconstitutional, the Supreme Court in Buckley reasoned that the expenditure limitations substantially restrained the "quantity and diversity of political speech," by restricting the number of issues that would be discussed during a campaign, the depth to which they would be explored and the size of the audience that would be reached. Bucklev, 424 U.S. at 19, 96 S. Ct. at 634-635. On that basis it held that th~ limitations impermissibly infringed on the Pirst Amendment right to freedom of expression while failing to serve the substantial governmental interest of stemming corruption or the appearance of corruption. Response to Question (1) The Council asked whether or not the City can limit the source of campaign contributions to candidates for city office to city residents and non-residents who work in the City. Por the following reasons, it is my opinion such a restriction on contributions would fail to pass the constitutional tests established by the Supreme Court in Bucklev. Buckley and the line of cases follovving it note that the right to associate is a fundamental right protected by the United States Constitution. Any governmental restriction on the right to associate must be "closely drawn to avoid unnecessary a- bridgement of associational freedoms." Fair Political Practices Com'n v. Superior Court (1979) 25 Cal.3d. 33, 45, 157 Cal.Rptr. 855, 862. A compelling governmental interest must be advanced that would justify the First Amendment infringement. It is my opinion that an ordinance restricting campaign contributions to city residents or non- residents employed within the City would fail to meet this test. Additionally, it is likely that such a restriction would also be found to impermissibly affect the constitutionally protected right of contributors to travel. (See ~., CEEED v. Cal. Coastal Zone Comm'n, 43 Cal.App.3d 306, 332-333,118 Cal.Rptr. 315, 330-331 (1974); Dunn v. Blumstein, 405 U.S. 330, 338, 92 S.Ct. 995, 1001 (1972); (The right to interstate travel is a fundamental constitutional right that includes the right to take up residence in any state.) See also, Tobe v. Citv of Santa Ana'~ 9 Cal.4th 1069, 1096-97, 40 Cal.Rptr.2d 402, 419 (1995). (The right to interstate travel includes intra-municipal travel).) Responses to Ouestion (2) The Council asked whether the City of San Ramon has in effect an ordinance limiting campaign expenditures. We have obtained from San Ramon its ordinance which sets forth a policy encouraging voluntary expenditure limitations for cityvvide campaigns. In addition, we have obtained a recent resolution which sets a limitation on expenditures which candidates in the November 1995 election could voluntarily follow. . (Exhibit 1.) The City of San Ramon adopted Ordinance No. 58, an ordinance "Establishing Election Fair Campaign Practices," on July 9, 1985. Its stated purpose is to "preserve and foster an orderly political forum in which persons may express themselves effectively; to place realistic limits on the amounts of money that may be spent in political campaigns for City Council elections; to decrease the cost of campaigns; and to prevent the appearance of improper influence." It seeks to accomplish these purposes through the voluntary cooperation of candidates for city office. The ordinance sets forth a candidate's fair campaign pledge, which candidates for city council may voluntarily sign. By signing the pledge, a candidate agrees to attempt to limit expenditures for his or her campaign to an amount set forth by City Council resolution for the upcoming election. Last year, by Resolution No. 95-57, the City established a voluntary expenditure limit of $11,500.00 for the 1995 municipal election. This figure represented approximately $.50 per registered voter in the prior election. It should be noted that neither the City of Pleasanton nor the City of Livermore has an ordinance limiting expenditures for campaigns. . }:\WPD\MNRSW\114\MISOCAMPAlGN.96 . CITY OF DUBLIN . AGENDA STATEMENT CITY COUNCIL MEETING DATE: september 13, 1993 SUBJECT: status Report on campaign contribution Limitation Ordinance Amendment to Change Definition of "Election Period" H Report Prepared by Elizabeth silver, city Attorney and Kay Keck, City Clerk or"'" EXHIBITS ATTACHED: Agenda Statement from August 9, 1993 Meeting RECOMMENDATI~~ Receive Report Provide policy direction to staff regarding amount of limitation for Office of Mayor and Office of Councilmember Direct Staff to schedule a public hearing for September 27th Council meeting to consider amendment to the Campaign contribution Limitation Ordinance FINANCIAL STATEMENT: None .' DESCRIPTION: On August 9, 1993, the city council received a report regarding the City's campaign contribution Limitation Ordinance (Dublin Municipal Code Chapter 2.28). Staff indicated that the ordinance was unclear with respect to whether the $300 limitation applied only to an election period or whether it applied during "off years". The council indicated that it intended the $300 limitation to apply in each year and directed Staff to return to the council with an amendment to the ordinance to clarify the ordinance. In preparing a proposed amendment to the ordinance, the city Attorney concluded that, from a legal standpoint, it would be preferable to include a dollar limitation tied to an election, rather than for a fiscal year. This conclusion is based on court cases which have upheld contribution limitations in Federal elections (which are applied per election) whereas the State limitation (which is applied per fiscal year) has been found invalid. If the City'S ordinance is amended to follow the Federal model, the limitation on contributions would apply to the election for a specific office. The question then arises whether the limitation for the office of Mayor (a 2-year term) and the office of councilmemher (a 4- year term) should be the same. If the council wishes in effect to prohibit contributions in excess of $300 per year, that would translate to a $600 limitation per election for the office of Mayor and a $1,200 limitation per election for the office of councilmember. Staff will prepare an amendment to the ordinance to provide a limitation on contributions per election. Staff requests that the Council provide direction regarding the amount of the limitation for the office of Mayor and the office of councilmember. . EXHIBIT 4 ---------------------------------------------------------------------- ITEM NO. 1. Z COPIES TO: CITY CLERK FILE~ ~ 84202.7 -- , GOVERNMENT Cor)' .. ,- .. ~ 84202.7. Committees making large contributions; campaign statements; time for filing (a) Except as provided in subdivision (b), during an odd-numbered year, any committee by virtu~'~. Section 82013 which makes contributions totaling five thousand dollars ($5,000) or more to . office!'S, their controlled committees, or committees primarily formed to support or oppose. state officer during a period specified below shall file campaign statements on the folio da~ (1) );0 later than April 30 for the period of January 1 through March 31. (2) ~o later than October 31 for the period of July 1 through September 30. (br If a committee makes contributions totaling five thousand dollars ($5,000) or more to elected stat., office!'S, their controlled COmmittees, or committees primarily formed to support or oppose any electe: state officer dming a period specified in subdhision (a). and all of those contributions are repol"'..ec pursuant to Section 84202.5 · .. · on or before the time specified in subdivision (a), the committee shan not be required to file additional.statements for that period Pursuant to this section. (Amended by Stats.1993, c. 218 (ARI357), ~ 1.) ~ 84203.3. Late in-kind contributions; notification of recipients; reports (a) Any candidate or committee that makes a late contribution that is an in-kind contribution shall notiJy the recipient in writing of the value of the in-kind contribution. The notice shall be received by the recipient within 24 hours of the time the contribution is made. (b) Xothing in this section shall relieve a candidate or committee that makes a late in-kind contribution or the recipient of a late in-kind contribution from the requirement to file late contribution repor-.s pursuant to Section 84203. However, a report filed by the recipient of a late in-kind contribution shall be deemed timely filed if it is received by the filing officer within 48 hours of the time the contribution is received. (Added by Stats.1995, c. 77 (S.R904), ~ 1.) ~ 84.206, Short form reports; contribution and expenditure restrictions (a) The COmmission shall provide by regulation for a short form for filing reports required by this article for candidates or officeholders who receive contributions of less than one thousand dollars ($1,000). and who make expenditUres of less than one thousand dollars ($1,000), in a calendar year. (b) For the purposes of this section, in calculating whether one thousand dollars ($1,000) in expendi- tures have been made, payments for a filing fee or for a statement of qualiiication shall not be included ii these payments have been made from the candidate's personal funds. (c) Even' candidate or officeholder who has filed a short form Oursuant to subdivision (a). , .0 thereafter receives contributions or makes exnenditures totalin one thousand dollars ($1.000) or more in a calendar '''ear. shall send written notification to the SecretarY of State. the local filing' officer. and each candidate comending' for the same office within 48 hours of receiving' or e.'Q)ending' a total of one thousan dollars ($1.000), The written no' cation shall revoke the reviouslv filed short form statement. (Amended by Stats.1993, c. 391 (AB.32S), ~ 1.) o 84219 Contents of statement Each campaign statement required by this article shall contain all of the follo\\ing information: (a) The total amount of contributions received during the period covered by the campaign statement and the total cumulative amount of contributions received. (b) The total amount of expenditures made during the period covered by the campaign statement and the total cumulative amount of e."Cpenditures made. (c) The total amount of contributions received during the period covered by the campaign statement from pen;ons who have given a cumulative ~mount of one hundred dollars ($100) or more. (d) The total amount of contributions received during the period covered by the campaign statement from persol'.s who have given a cumulative amount of less than one hundred dollars ($100). (e) The balance of cash and cash equivalents on hand at the beginning and the end of the period covered by the campaign statement. (f) If the cumulative amount of contributions (including loans) received from a person is one hundred - dollars ($100) or more and a contribution or loan has been received from that person during the Period covered by the campaign statement, all of the follOwing: . (1) His or her full name. Additions or changes indIcated by underline; deletions by asterIsks * * * 36 . -- ~ 84211 -'" GO~' ,t;lL":'"')1E::--'"T CODE (2) ills or he street address. (S) !lis or he~ occ~pation. e1 The ;lame of his or her employer. or if self-employed. the name of the business. ) The date and amount received for each contribution received during the period covered by the c:l-'1lpaign statement and if the contribution is a loan. the interest rate for the loan. (6; The cumulative amount of contributions. (g) F or eac~ person, other than the filer, who is directly, indirectly. or contingently liable for repayment of a loan received during the period covered by the campaign statement, all of the following: (ll His or her full name. (2) His or her so-eet address. (S) His or he~ occupation. " .- (4) The name of iUs or her employer, or if self-employed, the name of the business. (5) The amOUl:.t of his or her ma."timum liability. (n) The total 3..-:lount of expenditures made during the period covered by the campaign statement to pe.'"5ons who ha...e received one hundred dollars ($100) or more. (D The total amount of e.'Cpenditures made during the period covered by the campaign statement to pe..'"5ons who have received less than one hundred dollars ($100). (j) For each person to whom an e.'Cpenditure of one hundred dollars ($100) or more has been made during the pe....;od covered by the campaign statement, all of the following: (1) His or her full name. (2) His or her street address. eS) The amount of each e.'Cpenditure. (..1) A brief desdption of the consideration for which each e.'Cpenditure was made. (5) In the case of an expenditure which is a contribution, the date of the contribution; the cumulative amount of cont.!ibutions made to a candidate, elected officer, or committee; the full name of the canciidate; and the office and district for which he or she seeks nomination or election. In the case of a contribution ir: support of or opposition to a measure, the number or letter of the measure and the "uisdiction in which the measure or candidate is voted upon. .,6) The iniormation required in paragraphs (1) to (4), inclusive, for each person, if different from the ayel!. who has provided consideration for an expenditure of one hundred dollars ($100) or more during t.1e period covered by the campaign statement. (7) In the C2Se of an e:-..-penditure made to payor reimburse the travel e.'Cpenses or necessary accommodatior:s of a candidate, his or her representative, or a member of the candidate's immediate family, the date. destination, and total expenditure for each trip. For purposes of subdi\isions (h). (D, and (j) only, the terms "e:\1lenditure" or "e.-cpenditures" mean any indi,idual payment or accrued expense. unless it is clear from surrounding circumstances that a series of pa:'":::1ents or acc,,'''ued expenses are for a single service or product. C;,) In the case of a controlled committee, an official committee of a political party, or an organization formed or e."Iisting primarily for political purposes, the amount and source of any miscellaneous receipt. . (l) If a committee is listed pursuant to subdivision (fl, (g), (j), (k), or (p), the number assigned to the committee by the SecretarY of State shall be listed, or if no number has been assigned, the full name and $!:"eet address of the treasurer of the committee. (m) In a c:u:1paign statement filed by a committee supporting or opposing more than one candidate or measure, the amount of expenditures of one hundred dollars ($100) or more for or against eacb candidate or measure during the period covered by the campaign statement and the cumulative amount of e."\.-penditures of one hundred dollars ($100) or more for or against each · · · candidate or measure. (n) In a campaign statement filed by a candidate who is a candidate in. both an election held on the first Tuesday after die first Monday in June and an election held on the first Tuesday after the first Monday in ~ovember. his or her controlled committee, or a committee primarily fonned to support or oppose such a cl!.."ldidate, the total amount of contributions received and the total amount of expenditures made for the pe...;od Janua."1' 1 through June 30 and the total amount of contributions received and e..'Cpenditures made for the period July 1 through December 31. Additions or changes indicated by underline; deletions by asterisks * * * . 37 . -~ ~ 84211 GOVERNMENT CODE (0) The full name. residential or business address, and telephone number of the filer, or in the case of a campaign statement filed by a committee defined by subdivision (a) of Section 82013, the name, street address, and telephone number of the committee and of the committee treasurer. In the case of a committee defined by subdivision (b) or (c) of Section 82013, the name that the filer uses on campaign statements shall be the name by which the filer is identified for other legal purposes or any name by which the filer is commonly knO\\11 to the .public. (p) If the campaign statement is filed ~y a candidate, the name, street address, and treasurer of any committee of which he or she has knowledge which has received contributions or made e),:penditures on behalf of his or her candidacy and whether the committee is controlled by the candidate, (q) A contribution need not be reported nor shall it be deemed accepted if it is not cashed, negotiated, or deposited and is returned to the contributor before the closing date of the campaign statement on which the contribution would otherwise be reported. (r) If the campaign statement is filed in connection ~ith the qualification of a measure, it shall contain the information required by paragraphs (1) to (4), inclusive, of subdivision (j) for each person who has directl)., indirectly, or through an intermediary received payments cumulatively totaling one hundred dollars ($100) or more for circulation of petitions to qualify a measure for the ballot. (s) If a committee primarily formed for the qualification or support of, or opposition to, an initiative or ballot measure is required to report an eJ.-penditure to a business entity pursuant to subdivision (j) and 50 percent or more of the business entit;y is owned b;y a candidate or person controlling the committee, by an officer or employee of the committee, or by a spouse of any of these individuals, the committee's campaign statement shall also contain, in addition to the infonnation required by subdivision (j), that person's name, the relationship of that person to the committee, and a description of that person's ownership interest or position with the business entity. (t) If a committee primarily fonned for the qualification or support of, or opposition to, an initiative or ballot measure is required to report an e:>..-penditure to a business entity pursuant to subdivision (j), and a candidate or person controlling the committee, an officer or employee of the committee, or a spouse of any of these individuals is an officer, partner, consultant, or employee of the business entity, the committee's campaign statement shall also contain, in addition to the information required by subdi\.ision (j), that person's name, the relationship of that person to the committee, and a description of that person's ownership interest or position with t~e business entit:y, (u) The information required by Sections 84216 and 84216,5, (v) If the campai~ statement is filed by a committee. as defined in subdivision (b) or (c) of Section 82013, infonnation s 'ficient to identify the nature and interests of the filer. includinf'- (1) If the filer is an individual. the name and address of the filer's emplover. if anv. or his or her principal ulace of business if the filer is self-employed, and a descriotion of the' business 'acti\.it\' in which the filer or his or her employer is eng'ag'ed, (2) If the filer is a business entity, a description of the business activity in which it is eng'ajred. (3) If the filer is an industry, trade, or orofessional association, a descriotion of the industrv. trade. or profession which it represents. including a specific desc:riotion of any portion or faction of the industry, trade. or profession which the association exclusively or Primarily represents, (4) If the filer is not an individual. business entity. or industry, trade. or professional association, a statement of the person's nature and purooses, includimo: a description of anv indusO'V. trade, profession, or other group with a common economic interest which the person principally represents or from which its membership or financial support is principally derived. (Amended by Stats,1993, c, 1140 (S.B.23l), S 1.) Article 3 PROHIBITIONS Section 84305.5. Slate mailers, requirements, United States Supreme Court Conmbutions or expenditures b)' corporations to iniIu- D,S. 765, 55 L.Ed.2cl 707, rehearing denied 98 S,Ct. 3126, ence election, statutolJ' prolubitions. see First Nat. Bank 438 U.S. 907, 57 L.Ed.2d 1150, of Bosum v, Bellotti, U.s.Mass.l978, 98 S,Ct. 1407, 435 Additions or changes indicated by underline; deletions by asterisks * * * 38 . GOVERNMENT CODE S 84305. Mass mailings; requirem~ Violations, see Elections Code i 18303, 1- Validity Griset v, Fair Political Practices Com'n 1992) 12 CaLRptr.2d 249, 9 CaLApp.4tl1 App.4tl1 1060. 20 CaLApp.4th 1114. 2S C~ [main volume] review granted and opinion CaLRpU'.2d 893, 843 P.2d 1208. affirmed < 659, 8 Cal,4th 851, 884 P.2d 116, certior:J S.Ct. 1794, 131 L,Ed.2d 722- Government code section requiring that public office identify themselves on 'llnY they send to prospective voten does n, Amendment rights of candida~ or cane S 84305.5. Slate mailers, requireme (a) No slate mailer organization or ballot measures shall send a slate ma (1) The name, street address, and c to support or oppose one or more ballo on at least one of the inserts include' v;hich shall be in a color or print v;~, office box may be stated in .' f tl the committee primarily fo ' . record with the Secretary' (2) At the top or bottom of the frOl side or surface of a postcard or other , which shall be in a color or print whit printed or draVo11 box and set apart following statement: THIS DOCUMEh"T WAS PR: primarily fonned to support 0:- POLITICAL PARIT ORG.~'I\ imply endorsement of others a. opposition to, any issues set b each candidate and ballot me<'-' (3) The name, street address. and to support or oppose one or more bai by paragraph (2) may appear on the (4) Each candidate and each ballo', - an .. Any candidate or ballot meas~: by an .. The · required by this subdivisio legibility as is used for the name 0: advocated to which the · designatio:, than 10-point boldface type. The de, name or number and position advocat of candidates and measures. If ther' least S-point boldface type, immediate position advocated on the ballot met- , (5) ,The name of anr caAle a~ diffenng from the politi~ wI': Additions or changes i . . " . ORDINANCE NO. - 96 AN ORDINANCE OF THE CITY OF DUBLIN *************** AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 2.28 OF THE DUBLIN MUNICIPAL CODE RELATING TO CAMPAIGN CONTRIBUTION LIMITATIONS FOR ELECTIONS TO TAKE EFFECT IMMEDIATELY THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS: SECTION 1. Section 2,28.030 Amended -- Contribution Limit Revised Subsection A of Section 2.28.030 of the Dublin Municipal Code is amended to read as follows: "A. No person shall make any contribution or contributions to a candidate or committee which exceed the cumulative amount of three hundred dollars ($300), nor shall any such contribution or contributions which exceed the cumulative amount ofthree hundred dollars ($300) be accepted by any candidate or committee from any person with respect to a single election," SECTION 2. Section 2,28.040 Amended -- Declaration re Compliance Subsection A of Section 2.28.040 of the Dublin Municipal Code is amended to read as follows: "A. To ensure full compliance with this chapter, each candidate shall execute a declaration under penalty of perjury on a fonn provided by the City Clerk stating that such candidate did not receive any contribution or contributions totaling more than three hundred dollars ($300) from any person with respect to an election." SECTION 3. Disclosure of Amounts in Excess of $25 Section 2.28.040 is added to the Dublin Municipal Code to read as follows: "\\Then filing the Campaign Statement required by Article 2 of Chapter 4 of Title 9 of the Government Code, commencing with Section 84200, each candidate for the office of Mayor and Councilmember shall include in such Campaign 1 Alternate Version EXHIBIT 6 .: Statement the same infonnation required by subdivision (f) of Government Code section 84211 for contributions (including loans) in excess of $25 received from any person." SECTION 4. Renumbering Section 2.28.040 of the Dublin Municipal Code, entitled "Filing of Verified Declaration" is remunbered as "Section 2~8.050," and Section 2.28.050, entitled "Violation Penalty" is renumbered as "Section 2.28.060." SECTION 5. Severabi1itv If any part of this ordinance or the application thereof to any person is held invalid, the remainder of the ordinance and the application of such provision to other persons shall not be affected thereby. SECTION 6. Immediate Effect This ordinance imposes restrictions on monetary contributions to candidates for office at municipal elections and thus relates to an election. Pursuant to Government Code section 36937(a), this ordinance shall take effect immediately. SECTION 7. Posting The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. ':, 2 Alternate Version .' ." . ;:.. . . \. . PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this _ day of _, 1996, by vote as follows: AYES: NOES: ABSENT: t ABSTAIN: MAYOR ATTEST: CITY CLERK J:\\\'PD\MNRSW\114\ORD\CAMPAlGN.ALT " ;) Alternate Version