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11-10-2014 - Review of West Covina Municipal Code, Sections 2-4 - Staff Report (2).docTO: Mayor and City Council FROM: Christopher J. Chung City Manager BY: Kimberly Hall Barlow City Attorney SUBJECT: REVIEW OF WEST COVINA MUNICIPAL CODE, SECTIONS 2-400 TO 2-405 CONCERNING CAMPAIGN CONTRIBUTIONS RECOMMENDATION: It is recommended that the City Council review the existing provisions of the West Covina Municipal Code, Sections 2-400 to 2-405, relating to Campaign Contribution regulations and provide the City Attorney direction on possible changes to the current Code sections. DISCUSSION: The City of West Covina previously enacted a series of ordinances which are codified in the Municipal Code and found in sections 2-400 to 2-405 (Attachment 1). Staff is seeking guidance from the City Council on how to approach this issue and seek direction on the types of changes desired by the City Council. Based upon previous direction, attached is a comparison chart of what the current City Campaign Contribution regulations require and what is required by State and federal law (Attachment 2). In many instances, there is a California Government Code section or a California Code of Regulation, promulgated by the Fair Political Practices Commission (“FPPC”), (collectively the “State Regulations”) which provides for a definition of a term that the Municipal Code also defines. Generally speaking, the definitions, and treatment of certain subjects such as aggregation of contributions by affiliated entities and individuals, between the Municipal Code and the State Regulations are the same. Additionally, some aspects of the State Regulations do not address local elected officials. However, there are many instances where the definitions between the Municipal Code and State Regulations vary. In terms of how the Municipal Code compares to Federal laws and regulations (collectively the “Federal Regulations”), Federal Regulations generally do not address State and local elected officials except that First Amendment principals tend to apply. Councilmembers requested input from the City Clerk’s Office regarding the City’s Campaign Ordinances as well. While the City Clerk’s Office recognizes that these issues are policy issues for the City Council to make, the City Clerk’s Office has concerns with the enforcement of local ordinances. The FPPC will not enforce or give advice on campaign ordinances adopted by a local agency. Under state law, the City Clerk is the filing officer and is not charged with enforcement. The City Clerk’s Office is responsible for determining whether a campaign statement facially conform with the requirements of the Political Reform Act and is not required to verify accuracy of information submitted nor investigate whether a committee or candidate has an obligation to file a campaign statement. The City Clerk’s Office therefore recommends that any West Covina local ordinance define enforcement procedures and penalties. Regarding Ordinance No. 2081, the City Clerk’s Office recommends repealing the ordinance. Candidates should be able to accept contributions received by electronic methods (credit cards, wire transfers, pay pal) and not by check only. Disclosure limits should be at $100 and above as provided in state law. Regarding Ordinance No. 1669, if the intent of the ordinance is to limit contributions to keep campaigns “low budget,” the ordinance may not be as effective as intended, as it does not restrict donations from candidate controlled committees, either local candidate controlled committees or state candidate controlled committees, but does restrict contributions from all others. Contribution limits should be equalized between individuals, organizations and companies. In addition to this input, the City Clerk’s Office has provided to the City Council a compilation of various local campaign ordinances for the City Council’s review and consideration. At this time, the City Attorney and staff is requesting direction from the City Council. It is recommended that the City Council discuss Attachments 1 and 2, as well as the ordinances of other cities, and provide direction on what the City Council desires. FISCAL IMPACT: There is no fiscal impact other than the staff costs involved in drafting, implementing and monitoring revisions to the City’s campaign ordinances. Prepared by: _______approved via e-mail_________________ Kimberly Hall Barlow City Attorney Attachment 1 – West Covina Municipal Co0de Section 2-400 to 2-405 Attachment 2 – Comparison chart of City, State, Federal Regulations Attachment 3 – Agenda Report from October 21, 2014 City Council Meeting