HomeMy WebLinkAboutD-1 Staff Report - Campaign Finance Reform OrdinanceSCHEDULED ITEM
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: ADRIAN GARCIA, MMC, CHIEF DEPUTY CITY CLERK
DATE: OCTOBER 5, 2020
SUBJECT: DISCUSS AND PROVIDE DIRECTION REGARDING AB 571 MANDATORY
LOCAL CAMPAIGN CONTRIBUTION LIMITS
BACKGROUND:
The Political Reform Act (PRA) was originally adopted by the California voters in 1974 in an effort to
combat political corruption and enhance transparency for political campaign contributions. The Fair
Political Practices Commission (FPPC) was created by the PRA and is responsible for the oversight of
campaign finance, financial conflicts of interest by public officials, lobbyist registration and reporting,
post-governmental employment, gifts and honoraria given to public officials and candidates, and
political mass mailings at the public's expense.
RECOMMENDATIONS:
Staff recommends the City Council take one of the following actions:
Option 1) Discuss and decide on setting contribution limits or keeping it as unlimited amount from one
contributor.
Option 2) Introduce First Reading, by title only, the following Draft Ordinance No. 2020-07: AN
ORDINANCE OF THE CITY OF AZUSA, CALIFORNIA, ADDING CHAPTER 2 ARTICLE I
SECTION 2-3 GENERAL PROVISIONS OF THE AZUSA MUNICIPAL CODE ESTABLISHING
CANDIDATE CAMPAIGN CONTRIBUTION LIMITS
Option 3) Declare it will accept the default limits set by FPPC as a result of passage of AB 571.
ANALYSIS:
Last year, the Governor signed into law Assembly Bill 571 (AB 571), amending portions of the PRA.
Primarily, AB 571 establishes campaign contribution limits for candidates for county and city offices at
the same level as contributions for candidates for Senate and Assembly, only for those counties and
cities that have not established its own campaign contribution limits. These 'default' contribution limits
APPROVED
CITY COUNCIL
10/5/2020
Option 3 approved
Campaign Contribution Limits
October 5, 2020
Page 2
are established by FPPC and include adjustments to reflect increases or decreases in the Consumer Price
Index (CPI). The current 'default' contribution limit for Senate and Assembly is $4,700 per contributor,
per election.
The City currently does not have a set limit, meaning a candidate currently can receive an unlimited
amount from one contributor. Over the last few elections, records show that $5,000 has been the
maximum amount received by candidates from one contributor. The Draft Ordinance attached sets the
City of Azusa contribution limit to $5,000 per contributor per election for Council consideration.
Effective January 1, 2021, AB 571 permits counties and cities to establish its own campaign
contribution limits that would prevail over the 'default' campaign contribution limits set by FPPC. AB
571 does not prohibit cities from setting their own limits. If a county or city chooses not to adopt its own
campaign contribution limits, under AB 571, FPPC will have expanded administration and enforcement
authority regarding the default contribution limits and violations of the 'default' limits within the FPPC's
purview would be enforced as a misdemeanor.
Under AB 571, the city must either declare it will accept the default limits set by FPPC, or it must set
and adopt campaign contribution limits before January 1, 2021.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
Prepared by: Fiscal Impact Review:
Adrian Garcia, MMC Sergio Gonzalez
Chief Deputy City Clerk City Manager
Attachment:
1) Ordinance No. 2020-07
ORDINANCE NO. 2020-07
AN ORDINANCE OF THE CITY OF AZUSA,
CALIFORNIA, ADDING CHAPTER 2 ARTICLE I
SECTION 2-3 GENERAL PROVISIONS OF THE AZUSA
MUNICIPAL CODE ESTABLISHING CANDIDATE
CAMPAIGN CONTRIBUTION LIMITS
A.Recitals.
(i)The City of Azusa (“City”) is a General Law City, incorporated under the laws of the
State of California;
(ii)The City Council for the City of Azusa is authorized to adopt local contribution limits and
other campaign regulations to the extent that they do not conflict with state or federal law; and,
(iii)Assembly Bill 571, signed by the Governor on October 8, 2019 and effective January 1,
2021, repeals Sections 10003 and 10202 of the California Elections Code, amends Section 85301,
amends, repeals, and adds Sections 85305, 85306, 85307, 85315, 85316, 85317, and 85318, and
adds Section 85702.5 of the California Government Code relating to the Political Reform Act of 1974;
(vi)Among other things, Assembly Bill 571 establishes default campaign contribution limits
for candidates running for local elected office unless the applicable city or county has enacted its local
ordinance addressing campaign limitations;
(v)The City Council desires to retain local control of its elections, and is adopting this
ordinance to establish Candidate Campaign Contribution Limits for the City of Azusa as a result of and
in compliance with Assembly Bill 571, and;
(vi)All legal prerequisites to the adoption of this Ordinance have occurred.
B.Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES ORDAIN AS
FOLLOWS:
Section 1: The facts set forth in the Recitals, Part A, of this Ordinance are true and correct.
Section 2: Chapter 2 Article I Section 2-3 General Provisions of the Azusa Municipal Code is
hereby enacted as follows:
Section 2-3 CANDIDATE CAMPAIGN CONTRIBUTION LIMITS
(1)Purpose and Intent.
The purpose and intent of the city council, in enacting this chapter, is as follows:
A.To eliminate the possibility of corruption, or the appearance of corruption, in local elections
arising as a result of disproportionately large political contributions by adopting limits on the total
Attachment 1
ORDINANCE NO. 2020-07
Page 2
contributions any person or committee may contribute or otherwise cause to be contributed to
candidates for elected offices in the City of Azusa, and specifically contributions made to candidates for
the Azusa City Council;
B. Pursuant to Government Code Section 81013 and Elections Code Section 10202, to impose
contribution limits and other regulations applicable to candidates for elected offices in the City of Azusa
that are consistent with those imposed by state law, and that do not prevent any person from
complying with state law;
C. To promote informed actions by the electors of the City by requiring the full and truthful
disclosure of contributions and expenditures in local election campaigns; and
D. To inhibit improper or illegal campaign activity, and to provide for enforcement of this
chapter.
(2) Definitions.
The definitions set forth in the California Political Reform Act of 1974 (Government Code Section
81000, et seq.), and the regulations of the California Fair Political Practices Commission (Title 2,
Division 6, Sections 18109 et seq. of the California Code of Regulations), as the foregoing now exist or
may be amended, shall govern the interpretation of this chapter.
(3) Contribution Limitations
A. No person or committee shall make to any candidate or the candidate’s controlled
committee, and no candidate or the candidate’s controlled committee shall solicit or accept, any
contribution that will cause the total amount of contributions made by the person or committee to the
candidate or the candidate’s controlled committee to exceed five thousand dollars ($5,000.00) for any
single election.
B. Except for independent expenditure committees or other committees not controlled by the
candidate, no person shall make to any committee, which supports or opposes any candidate or
candidates for City Council, and no such committee shall accept from any such person a contribution
or contributions totaling more than five thousand dollars ($5,000.00) for any single election.
C. The limitations of this section shall not apply to contributions of a candidate’s personal funds
to the candidates’ controlled committee on behalf of his or her own candidacy, but shall apply to
contributions made from a candidate’s spouse.
D. No person shall make a contribution to any candidate or a candidate’s controlled committee
in the name of another person.
E. No person shall reimburse, pay in advance, or otherwise compensate another person for a
contribution made to a candidate or to a candidate’s controlled committee.
F. No person, candidate, or controlled committee for a candidate shall knowingly solicit or
accept a contribution in violation of this chapter.
ORDINANCE NO. 2020-07
Page 3
G. A candidate for elected office in the City shall have no more than one controlled campaign
committee per single election. Such a committee shall have only one bank account out of which all
qualified campaign expenses shall be made. This section does not prevent a candidate or elected city
officer from establishing another committee solely for the purpose of running for an elected office with
a federal, state, or local agency or political subdivision other than the City, or a committee solely
formed to support or oppose a ballot measure.
H. Any contributions in excess or in violation of the applicable contribution limitations
established by this section and received by any person, candidate, or candidate’s controlled committee,
as applicable, shall be returned to the person or committee making the contribution within thirty (30)
days of the candidate or candidate’s controlled committee’s receipt receiving of the excess
contribution.
I. The contribution limits set in this section do not apply to any contribution received by a
candidate or his or her controlled committee if such contribution is used solely to retire campaign debt
existing on or before the effective date of this ordinance. If the contributions received are used, in
whole or in part, to seek nomination for or election to the Azusa City Council after the effective date of
this ordinance, the contribution limits established in this section shall apply to the entirety of such
contribution.
(4) Aggregation of Contributions
A. Contributions to candidate or to a candidate’s controlled committee shall be aggregated
as set forth in Government Code Section 82015.5, and Section 18215.1 of the FPPC Regulations.
B. A person whose contributions are subject to being aggregated under this section shall
disclose to the candidate or the treasurer of the candidate’s controlled committee of the person’s
relative ownership interest in any “entity,” if any, for purposes of facilitating compliance with this
section.
C. Contributions by dependents that are under eighteen (18) years of age and are not
emancipated shall be as aggregated contributions by their parent(s) or legal guardian(s) in equal
amounts, unless only one parent or guardian has legal custody in which event such contribution shall
be attributed solely to such person.
(5) Limitations on Loans
A. Loans to a candidate or to the candidate’s controlled committee, whether made by a
commercial lending institution in the regular course of business on the same terms available to
members of the public, or personal loans, shall not exceed five thousand dollars ($5,000) per single
election.
ORDINANCE NO. 2020-07
Page 4
B. Loans from different lending sources will be aggregated in accordance with Section 2-
3(5) for purposes of determining compliance with this section.
C. Any loan amount in excess or in violation of the applicable limitations established by this
section received by any candidate or a candidate’s controlled committee shall be returned or paid in-full
to the lender within thirty (30) days of the candidate or candidate’s controlled committee’s receipt of the
excess loan.
(6) Violation
A violation of any provision of this chapter or a failure to comply with any mandatory requirements
of this chapter is subject to prosecution in accordance with Section 1-10, of the Azusa Municipal Code,
and may be enforced through criminal, civil, administrative, injunctive or other relief available by law.
Section 3: Severability. The City Council declares that, should any provision, section;
paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action
in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining
provisions, sections, paragraphs, sentences and words of this Ordinance shall remain in full force and
effect.
Section 4: The effective date of this ordinance shall be December 31, 2020.
Section 5: The City Clerk of the City of Azusa shall certify to the passage of the Ordinance
and shall cause the same to be posted in the manner required by law.
PASSED AND ADOPTED this _____ day of _______________ 2020, by the following called
vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________________
Mayor
ATTEST:
_______________________________
City Clerk
ORDINANCE NO. 2020-07
Page 5
I, Jeffrey Lawrence Cornejo, Jr, City Clerk of the City of Azusa, California, do hereby certify
that the foregoing ordinance was introduced and passed at a regular meeting of the City Council of the
City of Azusa held on the ____ day of _________________ 2020.
______________________________________
City Clerk