11-10-2014 - Review of West Covina Municipal Code, Sections 2-4 - Attach 1 (2).pdf11/6/2014 West Covina, CA Code of Ordinances
ATTACHMENT 1
ARTICLE VIII. - CAMPAIGN CONTRIBUTIONS
Sec. 2-400. - Campaign contribution reporting requirements.
Candidates running for and officeholders in positions of elective office in the city shall adhere to
the following campaign contribution reporting requirements:
(1) Provide full disclosure of any amount given to his/her campaign.
(2) Provide the names of all individuals who give money to his/her campaign regardless of the
amount.
(3) Require that all money donations (regardless of amount) be made by check only.
(Ord. No. 2081, § 2, 4-2-02)
Sec. 2-401. - Contributions by individuals.
No individual shall make, and no candidate shall receive from any individual, any contribution to
the campaign of any individual candidate for any City of West Covina elective public office in excess of
five hundred dollars ($500.00) in any calendar year.
(Ord. No. 1669, § 1, 4-22-85)
Sec. 2-402. - Contributions by organizations.
No organization shall make, and no candidate shall receive from any organization, any
contribution to the campaign of any individual candidate for any City of West Covina elective public
office in excess of one thousand dollars ($1,000.00) in any calendar year.
(Ord. No. 1669, § 1, 4-22-85)
Sec. 2-403. - Contributions by political action committees.
No political action committee shall make, and no candidate shall receive from any political action
committee, any contribution to the campaign of any individual candidate for any City of West Covina
elective public office in excess of five hundred dollars ($500.00) in any calendar year. No such
candidate may receive any contributions in excess of fifteen hundred dollars ($1,500.00) combined
total contributions from political action committees in any calendar year.
(Ord. No. 1669, § 1, 4-22-85)
Sec. 2-404. - Identification of sponsor of campaign material.
(a) All campaign literature, mailings or radio and television advertisements shall identify the name(s)
of the sponsor(s) of the political advertisement. No such sponsor may identify itself by a name
which includes the name of an individual candidate without first obtaining that candidate's
express written consent. All mass mailings shall also comply with the requirements of Section
84305 of the California Government Code.
(b) Any campaign literature, mailings or radio and television advertisements sponsored by a political
action committee and endorsing a candidate for a West Covina elective public office shall contain
the following admonition in a prominent location on the advertisement and on the outside of each
piece of mail lit a mass mailing and on each insert in that mailing, unless the candidate has given
his express written consent to the endorsement:
This political endorsement is made without the authorization of [the candidate's name].
(Ord. No. 1669, § 1, 4-22-85)
Sec. 2-405. - Definitions.
Except for those terms specifically defined herein, the definitions set forth in Sections 82000 et
seq. of the California Government Code shall be applicable to the provisions and terms of this chapter:
(a) Candidate means an individual who is listed on the ballot or who has qualified to have write-in
votes on his or her behalf counted by election officials for nomination for or election to any
elective office, or who receives a contribution or makes an expenditure or gives his or her
consent for any other person to receive a contribution or make an expenditure with a view to
bringing about his or her nomination or election to any elective office, whether or not the
https://vvww.municode.comnibrary/ca/west_covina/codes/code_of ordinances?nodeld=M U CO 1/2
11/6/2014 West Covina, CA Code of Ordinances
specific elective office for which he or she will seek nomination or election is known at the
time the contribution is received or the expenditure is made and whether or not he or she has
announced his or her candidacy or filed a declaration of candidacy at such time. "Candidate"
also includes any officeholder who is the subject of a recall election. An individual who
becomes a candidate shall retain his or her status as a candidate until such time as that
status is terminated pursuant to Government Code Section 84214.
(b) Committee means any person or combination of persons who directly or indirectly does any of
the following:
(1) Receives contributions for political purposes totaling five hundred dollars ($500.00) or
more in a calendar year;
(2) Make independent expenditures for political purposes totaling five hundred dollars
($500.00) or more in a calendar year.
(c) Contribution means a payment, a forgiveness of a loan, a payment of a loan by a third party, or
an enforceable promise to make a payment except to the extent that full and adequate
consideration is received unless it is clear from the surrounding circumstances that it is not
made for political purposes. An expenditure made at the behest of a candidate, committee or
elected officer is a contribution to the candidate, committee or elected officer unless full and
adequate consideration is received for making the expenditure.
The term "contribution" includes the purchase of tickets for events such as dinners, luncheons,
rallies and similar fund-raising events; the granting of discounts or rebates not extended to the
public generally or the granting of discounts or rebates by television and radio stations and
newspapers not extended on an equal basis to all candidates for the same office; the payment of
compensation by any person for the personal services or expenses of any other person if such
services are rendered or expenses incurred on behalf of a candidate or committee without
payment of full and adequate consideration.
The term "contribution" further includes any transfer of anything of value received by a committee
from another committee, unless full and adequate consideration is received.
The term "contribution" does not include amounts received pursuant to an enforceable promise to
the extent such amounts have been previously reported as a contribution. However, the fact that
such amounts have been received shall be indicated in the appropriate campaign statement.
The term "contribution" does not include a payment made by an occupant of a home or office for
costs related to any meeting or fund raising event held in the occupant's home or office if the
costs for the meeting or fundraising event are five hundred dollars ($500.00) or less.
Notwithstanding the foregoing definition of "contribution," the term does not include the
candidate's own money or property used on behalf of his or her candidacy, personal services or
payments made by any individual for his or her own travel expenses if such payments are made
voluntarily without any understanding or agreement that they shall be, directly or indirectly,
repaid to him or her.
(d) Controlled committee means a committee which is controlled directly or indirectly by a
candidate or which acts jointly with a candidate or controlled committee in connection with
the making of expenditures. A candidate controls a committee if he, his agent or any other
committee he controls has a significant influence on the actions or decisions of the committee.
(e) Organization means any entity other than an individual, political action committee, or
controlled committee of a candidate, but including businesses (including sole
proprietorships), and nonprofit corporations or unincorporated associations.
(f) Political action committee means any committee as defined in this article, other than a
controlled committee of a candidate.
(Ord. No. 1669, § 1, 4-22-85)
https://www.municode.com/library/ca/west_covina/codes/code_of ordinances?nodeld=MUCO 2/2
ATTACHMENT 2
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
Section 2-400. - Campaign contribution reporting requirements. UNDER STATE LAW
Candidates running for and officeholders in positions of elective office in
the city shall adhere to the following campaign contribution reporting
requirements:
Cal. Government Code § 84211. Contents of statements
Each campaign statement required by this article shall contain all of the
following information:
(1) Provide full disclosure of any amount given to his/her campaign. (a) The total amount of contributions received during the period covered
(2) Provide the names of all individuals who give money to his/her by the campaign statement and the total cumulative amount of
campaign regardless of the amount. contributions received.
(3) Require that all money donations (regardless of amount) be made (b) The total amount of expenditures made during the period covered by
by check only. the campaign statement and the total cumulative amount of expenditures
made.
(c) The total amount of contributions received during the period covered
by the campaign statement from persons who have given a cumulative
amount of one hundred dollars ($100) or more.
(d) The total amount of contributions received during the period covered
by the campaign statement from persons 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.
(2) His or her street address.
(3) His or her occupation.
(4) The name of his or her employer, or if self-employed, the name of
the business.
(5) The date and amount received for each contribution received during
the period covered by the campaign statement and if the contribution is a
1
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
loan, the interest rate for the loan.
(6) The cumulative amount of contributions.
(g) If the cumulative amount of loans received from or made to a person
is one hundred dollars ($100) or more, and a loan has been received from
or made to a person during the period covered by the campaign
statement, or is outstanding during the period covered by the campaign
statement, all of the following:
(1) His or her full name.
(2) His or her street address.
(3) His or her occupation.
(4) The name of his or her employer, or if self-employed, the name of
the business.
(5) The original date and amount of each loan.
(6) The due date and interest rate of the loan.
(7) The cumulative payment made or received to date at the end of the
reporting period.
(8) The balance outstanding at the end of the reporting period.
(9) The cumulative amount of contributions.
(h) For each person, other than the filer, who is directly, indirectly, or
contingently liable for repayment of a loan received or outstanding
during the period covered by the campaign statement, all of the
following:
(1) His or her full name.
(2) His or her street address.
(3) His or her occupation.
(4) The name of his or her employer, or if self-employed, the name of
the business.
2
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
(5) The amount of his or her maximum liability outstanding.
(i) The total amount of expenditures made during the period covered by
the campaign statement to persons who have received one hundred
dollars ($100) or more.
(j) The total amount of expenditures made during the period covered by
the campaign statement to persons who have received less than one
hundred dollars ($100).
(k) For each person to whom an expenditure of one hundred dollars
($100)or more has been made during the period covered by the campaign
statement, all of the following:
(1) His or her full name.
(2) His or her street address.
(3) The amount of each expenditure.
(4) A brief description of the consideration for which each expenditure
was made.
(5) In the case of an expenditure which is a contribution to a candidate,
elected officer, or committee or an independent expenditure to support or
oppose a candidate or measure, in addition to the information required in
paragraphs (1) to (4) above, the date of the contribution or independent
expenditure, the cumulative amount of contributions made to a candidate,
elected officer, or committee, or the cumulative amount of independent
expenditures made relative to a candidate or measure; the full name of
the candidate, and the office and district for which he or she seeks
nomination or election, or the number or letter of the measure; and the
jurisdiction in which the measure or candidate is voted upon.
(6) The information required in paragraphs (1) to (4), inclusive, for each
person, if different from the payee, who has provided consideration for
an expenditure of five hundred dollars ($500) or more during the period
covered by the campaign statement.
For purposes of subdivisions (i), (j), and (k) only, the terms
"expenditure" or "expenditures" mean any individual payment or accrued
3
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
expense, unless it is clear from surrounding circumstances that a series of
payments or accrued expenses are for a single service or product.
(1) In the case of a controlled committee, an official committee of a
political party, or an organization formed or existing primarily for
political purposes, the amount and source of any miscellaneous receipt.
(m) If a committee is listed pursuant to subdivision (f), (g), (h), (k),( 1),
or (q), 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
street address of the treasurer of the committee.
(n) In a campaign statement filed by a candidate who is a candidate in
both a state primary and general election, his or her controlled
committee, or a committee primarily formed to support or oppose such a
candidate, the total amount of contributions received and the total
amount of expenditures made for the period January 1 through June 30
and the total amount of contributions received and expenditures made for
the period July 1 through December 31.
(o) 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 known to the public.
(p) If the campaign statement is filed by a candidate, the name, street
address, and treasurer of any committee of which he or she has
knowledge which has received contributions or made expenditures 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
4
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
•
the contribution would otherwise be reported.
(r) If a committee primarily formed for the qualification or support of, or
opposition to, an initiative or ballot measure is required to report an
expenditure to a business entity pursuant to subdivision (k) and 50
percent or more of the business entity is owned by 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 information required by
subdivision (k), 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.
(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
expenditure to a business entity pursuant to subdivision (k), 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 subdivision (k), 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 the campaign statement is filed by a committee, as defined in
subdivision (b) or (c) of Section 82013, information sufficient to identify
the nature and interests of the filer, including:
(1) If the filer is an individual, the name and address of the filer's
employer, if any, or his or her principal place of business if the filer is
self-employed, and a description of the business activity in which the
filer or his or her employer is engaged.
(2) If the filer is a business entity, a description of the business activity
in which it is engaged.
(3) If the filer is an industry, trade, or professional association, a
description of the industry, trade, or profession which it represents,
including a specific description of any portion or faction of the industry,
5
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
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 purposes,
including a description of any industry, 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.
Cal. Government Code § 84300. Limitation on cash contribution or
expenditure; In-kind contributions
(a) No contribution of one hundred dollars ($100) or more shall be made
or received in cash.
A cash contribution shall not be deemed received if it is not 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. If a cash contribution, other than a late contribution, as defined
in Section 82036, is negotiated or deposited, it shall not be deemed
received if it is refunded within 72 hours of receipt. In the case of a late
contribution, as defined in Section 82036, it shall not be deemed received
if it is returned to the contributor within 48 hours of receipt.
(b) No expenditure of one hundred dollars ($100) or more shall be made
in cash.
(c) No contribution of one hundred dollars ($100) or more other than an
in-kind contribution shall be made unless in the form of a written
instrument l containing the name of the donor and the name of the payee
and drawn from the account of the donor or the intermediary, as defined
in Section 84302.
(d) The value of all in-kind contributions of one hundred dollars ($100)
or more shall be reported in writing to the recipient upon the request in
1 There is no defmition of what "written instrument" satisfies this requirement, but credit card payments would almost certainly qualify.
6
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
writing of the recipient.
UNDER FEDERAL LAW
Federal law does not generally regulate campaign disclosure for local
elected officials except under the First Amendment principals. Due to
constitutional considerations, such laws are subject to an increased level
of scrutiny and must bedrawn with narrow specificity.2
Section 2-401. - Contributions by individuals.
No individual shall make, and no candidate shall receive from any
individual, any contribution to the campaign of any individual candidate
for any City of West Covina elective public office in excess of five
hundred dollars ($500.00) in any calendar year.
Section 2-402. - Contributions by organizations.
No organization shall make, and no candidate shall receive from any
organization, any contribution to the campaign of any individual
candidate for any City of West Covina elective public office in excess of
one thousand dollars ($1,000.00) in any calendar year.
Section 2-403. - Contributions by political action committees.
No political action committee shall make, and no candidate shall receive
from any political action committee, any contribution to the campaign of
any individual candidate for any City of West Covina elective public
office in excess of five hundred dollars ($500.00) in any calendar year.
No such candidate may receive any contributions in excess of fifteen
hundred dollars ($1,500.00) combined total contributions from political
action committees in any calendar year.
UNDER STATE LAW
Note: The amounts below are adjusted by the FPPC every two years, and
are only applicable to candidates for state office. The current limits are
attached to this document as Attachment 1.
Cal. Government Code § 85301. Maximum contributions to
candidates by persons other than small contributor or political party
committees.
(a) A person, other than a small contributor committee or political party
committee, may not make to any candidate for elective state office other
than a candidate for statewide elective office, and a candidate for elective
state office other than a candidate for statewide elective office may not
accept from a person, any contribution totaling more than three thousand
dollars ($3,000) per election.
(b) Except to a candidate for Governor, a person, other than a small
contributor committee or political party committee, may not make to any
candidate for statewide elective office, and except a candidate for
Governor, a candidate for statewide elective office may not accept from a
person other than a small contributor committee or a political party
committee, any contribution totaling more than five thousand dollars
($5,000) per election.
***(c) [relevant only to Gubernatorial candidates]
2Buckley, 424 U.S. at 66; see also, NAACP v. Button,371 U.S. 415, 433 (U.5.1963) ("Because First Amendment freedoms need breathing space to survive, government may
regulate in the area only with narrow specificity.")
7
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
(d) The provisions of this section do not apply to a candidate's
contributions of his or her personal funds to his orher own campaign.
Cal Government Code § 85302. Maximum amount of contributions
from small contributor committee
(a) A small contributor committee may not make to any candidate for
elective state office other than a candidate for statewide elective office,
and a candidate for elective state office, other than a candidate for
statewide elective office may not accept from a small contributor
committee, any contribution totaling more than six thousand dollars
($6,000) per election.
(b) Except to a candidate for Governor, a small contributor committee
may not make to any candidate for statewide elective office and except
for a candidate for Governor, a candidate for statewide elective office
may not accept from a small contributor committee, any contribution
totaling more than ten thousand dollars ($10,000) per election.
***(c) [applicable only to Gubernatorial elections]
Cal. Government Code § 85303. Maximum contributions to
committees
(a) A person may not make to any committee, other than a political party
committee, and a committee other than a political party committee may
not accept, any contribution totaling more than five thousand dollars
($5,000) per calendar year for the purpose of making contributions to
candidates for elective state office.
(b) A person may not make to any political party committee, and a
political party committee may not accept, any contribution totaling more
than twenty-five thousand dollars ($25,000) per calendar year for the
purpose of making contributions for the support or defeat of candidates
for elective state office. Notwithstanding Section 85312, this limit
applies to contributions made to a political party used for the purpose of
8
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
making expenditures at the behest of a candidate for elective state office
for communications to party members related to the candidate's
candidacy for elective state office.
(c) Except as provided in Section 85310, nothing in this chapter shall
limit a person's contributions to a committee or political party committee
provided the contributions are used for purposes other than making
contributions to candidates for elective state office.
(d) Nothing in this chapter limits a candidate for elected state office
from transferring contributions received by the candidate in excess of any
amount necessary to defray the candidate's expenses for election related
activities or holding office to a political party committee, provided those
transferred contributions are used for purposes consistent with paragraph
(4) of subdivision (b) of Section 89519.
UNDER FEDERAL LAW
Similar to disclosure requirements, there are no federal laws which
regulate contribution limits for local elected officials; however, First
Amendment Principals apply. In order to protect the free speech rights
of contributors, contribution limitations must be "closely drawn," i.e., the
means chosen do not burden substantially more speech than is necessary
to further the government's legitimate interests.' Contribution limits
must be exacting in their furtherance of the City's legitimate interests in
preventing corruption.4
In Citizens United v. FEC,558U U.S. 310(2010), a nonprofit corporation
sued the FEC challenging the constitutionality of a ban on corporate
independent expenditures and disclaimer and disclosure requirements
under federal law. While this case is not exactly on point, the analysis is
3 Ward v. Rock Against Racism,491 U.S. 781, 799 (1989) ("Rather, the requirement of narrow tailoring is satisfied 'so long as the. . . regulation promotes a substantial government
interest that would be achieved less effectively absent the regulation. [Citation omitted]'"); Buckley, 424 US at 30.
4 Our office's examination of the record does not indicate that preventing corruption was a motivating factor by the City Council in 1985; any revisions of the ordinance should
delineate that prevention of corruption is a motivating factor in establish restrictions.
9
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
informative. The Court found that there could be no suppression of a
speaker's political speech due to corporate identity.5
Courts have also held that limitations on contributions to state legislative
offices cannot be too low to permit candidates the ability to engage in
meaningful campaigns (i. e. , the contribution limitations must be
narrowly tailored, because theymay infringe upon the First Amendment
rights of candidates).6 Moreover, contribution limits are examined on a
case-by-case basis involving a fact-specific evaluation of the
circumstances to determine whether a meaningful campaign can occur.7
Aggregate Limits UNDER STATE LAW
WCMC section 2-403 states that "No such candidate may receive any Cal. Government Code § 85311. "Entity"; "Majority-owned";
contributions in excess of [$1,500] combined total contributions from
political action committees in any calendar year."
Aggregation of contributions of entities and individuals
(a) For purposes of the contribution limits of this chapter, the following
terms have the following meanings:
(1) "Entity" means any person, other than an individual.
(2) "Majority owned" means an ownership of more than 50 percent.
(b) The contributions of an entity whose contributions are directed and
controlled by any individual shall be aggregated with contributions made
by that individual and any other entity whose contributions are directed
and controlled by the same individual.
(c) If two or more entities make contributions that are directed and
controlled by a majority of the same persons, the contributions of those
entities shall be aggregated.
(d) Contributions made by entities that are majority owned by any
person shall be aggregated with the contributions of the majority owner
and all other entities majority owned by that person, unless those entities
5Citizens United v. FEC,558 U.S. 310, 485(2010) ("We return to the principle established in Buckley and Bellotti that the Government may not suppress political speech on the
basis of the speaker's corporate identity. No sufficient governmental interest justifies limits on the political speech of nonprofit or for-profit corporations.")
6Scully, 989 F. Supp. at 1298.
'Scully, 989 F. Supp. at 1299.
10
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
act independently in their decisions to make contributions.
FPPC Regulation 18215.1. Contributions; When Aggregated
(a) Definitions. For purposes of determining when contributions are
aggregated under the provisions of this title:
(1) "Entity" means any person, other than an individual;
(2) "Majority owned" means an ownership of more than fifty percent.
(b) The contributions of an entity whose contributions are directed and
controlled by any individual shall be aggregated with contributions made
by that individual and any other entity whose contributions are directed
and controlled by the same individual;
(c) If two or more entities make contributions that are directed and
controlled by a majority of the same persons, the contributions of those
entities shall be aggregated;
(d) Contributions made by entities that are majority owned by any
person shall be aggregated with the contributions of the majority owner
and all other entities majority owned by that person, unless those entities
act independently in their decision to make contributions.
UNDER FEDERAL LAW
In McCutcheon v. FEC,134 S. Ct. 1434(2014), federal law provided an
aggregate limit on what an individual may make in political campaign
contributions. The US Supreme Court held that these aggregate limits
were invalid under the First Amendment.8 The aggregate limits upon the
contributor prohibit an individual from fully contributing to candidates
they support and operate as an outright ban on further contributions to
further candidates beyond the aggregate limit.9 As result, the individual
must limit the number of candidates he or she desires to donate to.10
8 McCutcheon v. FEC, 134 S. Ct. 1434, 1442(2014) ("The Government contends that the aggregate limits also serve that objective, by preventing circumvention of the base limits.
We conclude, however, that the aggregate limits do little, if anything, to address that concern, while seriously restricting participation in the democratic process. The aggregate
limits are therefore invalid under the First Amendment.")
9 McCutcheon v. FEC,134 S. Ct. 1434, 1448(2014).
11
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
While not exactly on point, a prohibition on a candidate's ability to
accept contributions from PACs over a certain limit arguably operates as
a prohibition against a contributor's ability to donate.
Question: May the City limit inter-candidate contributions of campaign
funds from state or federal legislative candidates to City candidates?
UNDER STATE LAW
The Attorney General's office examined a ban on inter-candidate
contributions that was established by Orange County. They concluded
that the ban in OC was probably permitted, but still had their doubts.
They principally cite Service Employees Ina Union, etc. v. Fair Political
Practices Corn., 955 F.2d 1312 (1992). There, the 9th Circuit struck
down the State-level ban against all inter-candidate campaign
contributions (i.e., Candidate A donates to Candidate B's campaign using
Candidate A's campaign funds) reasoning that the ban was not closely
drawn to avoid unnecessary abridgment of associational freedoms. The
FPPC asserted that the inter-candidate transfer ban is necessary to
prevent contributors from circumventing the contribution limits by
funneling contributions through one candidate to another. The 9th Circuit
implicitly recognized that the ban would be valid if there were valid
contribution limits.
Using this, the AG argued that "where valid campaign contribution limits
are in place, a ban against inter-candidate transfers might be 'necessary
to prevent contributors from circumventing contribution limits by
funneling contributions through one candidate to another.' 85 Ups. Cal.
Atty. Gen. 43 (2002), citing, Service Employees Int? Union, etc. v. Fair
Political Practices Corn., 955 F.2d 1312, 1322 (1992). Thus, because OC
had presumptively valid contribution limits, OC could validly ban inter-
candidate transfers.
On the other hand, the state-level inter-candidate ban in Service
Employees was nevertheless struck down, because it was not narrowly
drawn as discussed below (i.e., the ban was not closely drawn to avoid
unnecessary abridgment of associational freedoms). The other interest
articulated by the FPPC was to prevent corruption or the appearance of
corruption by political power brokers. The 9th Circuit reasoned that the
12
WEST COVINA CODE APPLICABLE STATE LAW OR FEDERAL LAW
potential for corruption was not due to campaign contributions, per se,
but from large campaign contributions).
UNDER FEDERAL LAW
Federal law preempts all local regulations on expenditure of campaign
contributions with respect to election to Federal office. 2 USC § 453; 11
CFR § 108.7(a).
13
Contributor Sources
litical Party
Senate and Assembly
CalPERS/CaISTRS
Lt. Governor, Secretary of State, Attorney
General, Treasurer, Controller, Supt. of Public
Instruction, Insurance Commissioner, and Board
of Equalization
$4,100 $8,200 No Limit
$4,100 $8,200 No Limit
$6,800
$13,600 No Limit
Governor $27,200 I $27,200 No Limit
I Committee (Not Political Party) that Contributes to State Candidates (PAC)
Small Contributor Committee
Committee Account NOT for State Candidates (Ballot Measure, PAC, Political Party)
$200
No Limit*
Lt. Governor, Secretary of State, Attorney General,
Treasurer, Controller, Supt. of Public Instruction,
Insurance Commissioner, and Board of Equalization
Senate and Assembly
Governor
Cal PERS/CaISTRS
$22,600
$3,400
$5,700
$3,400
Contributor Sources
gate Fro
$113,000
$226,000
$56,500
$56,500
California Fair Political Practices Commission
California State Contribution Limits
(Effective January 1, 2013-December 31, 2014)
Candidates seeking a state office and committees that make contributions to state candidates are subject to con-
tribution limits from a single source. (Section 85301-85303.) Contributions from affiliated entities are aggregated
for purposes of the limits. (Regulation 18215.1.) The chart below shows the current limits per contributor for state
offices. The primary, general, special, and special run-off elections are considered separate elections. Contribution
limits to candidates apply to each election. Contribution limits to officeholder and other committees apply on a
calendar year basis. Contact your city or county about contribution limits for local offices.
Contribution Limits to State Candidates Per Election
Contributions to Other State Committees Per Calendar Year
Political Party Account for State Candidates
*State committees (including political parties and PACs) may receive contributions in excess of the limits identified above as long
as the contributions are NOT used for state candidate contributions. (Regulation 18534.)
Contributions to State Officeholder Committees Per Calendar Year
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 007-Dec-2012 • Page 1 of 2
advice@fppc.ca.gov
California Fair Political Practices Commission
California State Contribution Limits
(Effective January 1, 2013-December 31, 2014)
The contribution limits are effective for elections held
between January 1, 2013 and December 31, 2014. These
limits do not apply to contributions made to elections in
previous years. Such contributions are subject to the limits
in place for that year - see previous charts.
Legal Defense Funds
Contributions raised for a legal defense fund are
not subject to contribution limits or the voluntary
expenditure ceiling. However, a candidate or
officeholder may raise, in total, no more than is
reasonably necessary to cover attorney's fees and other
legal costs related to the proceeding for which the fund
is created. (Section 85304; Regulation 18530.4.)
Recall Elections
A state officeholder who is the subject of a recall
may set up a separate committee to oppose the
qualification of the recall measure and, if the recall
petition qualifies, the recall election. Neither
contribution limits nor voluntary expenditure ceilings
apply to the committee to oppose the recall that is
controlled by the officeholder who is the target of
the recall attempt. Candidates running to replace an
officeholder who is the target of a recall are subject
to the contribution limits and the expenditure limits
applicable to the election for that office. (Section 85315;
Regulation 18531.5.)
Ballot Measure Committees
Contributions to ballot measure committees controlled
by a candidate for elective state office are not limited.
Contributions from State Candidates and Officeholders
A state candidate or state officeholder may not
contribute more than $4,100 to a committee controlled
by another state candidate or state officeholder
(including a state or local election committee, legal
defense fund, officeholder account, recall committee,
or ballot measure committee). This limit applies on
a per election basis and includes, in the aggregate,
contributions made from the candidate's or
officeholder's personal funds and from campaign funds.
(Section 85305; Regulation 18535.)
Communications Identifying State Candidates
Any committee that makes a payment or a promise of pay-
ment totaling $50,000 or more for a communication that:
1. Clearly identifies a state candidate; but
2. Does not expressly advocate the election or defeat of
the candidate; and
3. Is disseminated, broadcast, or otherwise published
within 45 days of an election, may not receive a con-
tribution from any single source of more than $34,000
in a calendar year if the communication is made at the
behest of the candidate featured in the communica-
tion. (Section 85310.)
Officeholder Committees
Officeholder contributions must be cumulated (in full) with
any other contributions from the same contributor(s) for
any other future elective state office for which the office-
holder maintains a controlled committee during the term of
office in which the contribution is received. Contributions
to candidates for future elections and to their officeholder
account are cumulated for purposes of contribution limits.
(Regulation 18531.62.)
Contributions from State Lobbyists
A state lobbyist may not contribute to a state officeholder's
or candidate's committee if the lobbyist is registered to
lobby the agency of the elected officer or the agency to
which the candidate is seeking election. The lobbyist also
may not contribute to a local committee controlled by any
such state candidate. (Section 85702; Regulation 18572.)
Local Elections
Many cities and counties have local contribution limits
and other election rules. "Local Campaign Ordinances"
are listed on the FPPC's website. Check with your city or
county about contribution limits for local elections.
Definitions
Person: An individual, proprietorship, firm, partnership,
joint venture, syndicate, business trust, company, corpo-
ration, limited liability company, association, committee,
and any other organization or group of persons acting in
concert. (Section 82047.)
Small Contributor Committee: Any committee that meets
all of the following criteria:
(a) The committee has been in existence for at
least six months.
(b) The committee receives contributions from
100 or more persons.
(c) No one person has contributed to the committee
more than $200 per calendar year.
(d) The committee makes contributions to five or
more candidates. (Section 85203; Regulation 18503.)
Political Party Committee: The state central committee
or county central committee of an organization that meets
the requirements for recognition as a political party under
Elections Code Section 5100. (Section 85205.)
www.fppc.ca.gov
1.866.275.3772 or 916.322.5660
FPPC TAD • 007-Dec-2012 • Page 2 of 2
advice@fppc.ca.gov
ATTACHMENT 3 City of West Covina
Memorandum
AGENDA TO: Mayor and City Council
ITEM NO. 6
DATE October 21, 2014 FROM: Christopher J. Chung
City Manager
BY: Kimberly Hall Barlow
City Attorney
SUBJECT: REVIEW AND ANALYSIS OF THE CITY'S CAMPAIGN ORDINANCES
RECOMMENDATION:
Receive and file this report and provide direction to staff on the City's Campaign Ordinance
(Ordinance Nos. 1669 and 2081).
DISCUSSION:
The City of West Covina's municipal code contains two campaign ordinances: Ordinance No.
2081, enacted in 2002, and Ordinance No. 1669, enacted in 1985. Ordinance No. 2081 provides
for certain reporting requirements and finds its authority in Government Code sections 81009.5
and 81013, with certain restrictions, to enact additional reporting requirements above and beyond
what is required under the Political Reform Act ("PRA"). On the other hand; Ordinance No.
1669 provides for limitations upon campaign contributions by individuals, organizations, and
political action committees where each entity described is defined by the same ,ordinance.
Ordinance No. 1669 also generally provides that the sponsor of campaign material be identified
on all campaign literature, mailings or radio and television advertisements.
1. Ordinance No. 2081
a. Generally
Ordinance No. 2081, codified as West Covina Municipal Code ("WCMC") section 2-400,
provides that "[c]andidates running for and officeholders in positions of elective office in the city
shall adhere to the following campaign contribution reporting requirements:
(1) Provide full disclosure of any amount given to his/her campaign.
(2) Provide the names of all individuals who give money to his/her
campaign regardless of the amount
(3) Require that all money donations (regardless of amount) be made by
check only."
Additionally, WCMC 2-405(a) defines "candidate" as:
"...an individual who is listed on the ballot or who has qualified to have write-in
votes on his or her behalf counted by election officials for nomination for or
election to any elective office, or who receives a contribution or makes an
expenditure or .gives his or her consent for any other person to receive a
contribution or make an expenditure with a view to bringing about his or her
nomination or election to any elective office, whether or not the specific elective
office for which he or she will seek nomination or election is known at the time
the contribution is received or the expenditure is made and whether or not he or
she has announced his or her candidacy or filed a declaration of candidacy at such
time. "Candidate" also includes any officeholder who is the subject of a recall
election. An individual who becomes a candidate shall retain his or her status as a
candidate until such time as that status is terminated pursuant to Government
Code Section 84214."
(Emphasis added).
b. Analysis
The purpose of disclosing all contributions and requiring that all contributions be made in check
form is for the purpose of educating voters about the interests a candidate is likely to respond to;
exposing large contributions to the public eye so that candidates are discourage from accepting
and being beholden to special interests; and to assist in enforcement of contribution limits.
However, this cuts both ways: it could also be used as information to reveal the donors of minor
parties and, thus, subjecting those individuals to potential harassment.
c. Recommendation
.WCMC section 2-400's disclosure requirements likely need not necessarily be amended;
however, it is recommend that the City Council consider including an exemption for minor
parties for the reasons described above.
2. Ordinance No. 1669
a. Contribution Limits: Individuals (WCMC section 2-401), Organizations (WCMC
section 2-402), and Political Action Committees (WCMC section 2-403).
i. Generally
WCMC section 2-401 prohibits individuals from making, and any candidate from receiving, any
contribution to the campaign of a "...candidate for any City of West Covina elective public
.office in excess of five hundred dollars.. .in any calendar year."
WCMC section 2-402 prohibits organizations from making campaign contributions in excess of
$1,000 in any calendar year to the campaign of a candidate for a City of West Covina elective
office. WCMC section 2-405(e) defines an "organization" as any entity other than an "individual,
political action committee, or controlled committee of a candidate, but including businesses
(including sole proprietorships), and nonprofit corporations or unincorporated associations." A
"political action committee" is defined as "any committee as defined in this article, other than a
controlled committee of a candidate."1 A "controlled committee" is defined as one that "is
controlled directly or indirectly by a candidate or which acts jointly with a candidate or
controlled committee in connection with the making of expenditures."2 This means that this
contribution-El* applies to businesses, nonprofits, and, arguably, independent non-controlled
committees._3,—//
WCMC section 2-403 prohibits political action committees from making contributions in excess
of $500 a year to a candidate for any City elective public office nor may such a candidate receive
such a contribution.4 "Political action committee" is defined as "any committee as defined in this
article, other than a controlled committee of a candidate."' A "committee" is defined as "any
person or combination of persons who directly or indirectly does any of the following: (1)
Receives contributions for political purposes totaling [$500] or more in a calendar year..." and
"(2) Make independent expenditures for political purposes totaling [$500] or more in a calendar
year." Based upon this, political action committee appears to also cover independent non-
controlled committees, thus, there appears to be some overlap between the definition of
"organization" and "political action committee" (this will be discussed further below).
I WCMC § 2-405(f).
WCMC § 2-405(d).
3 This is in contrast with the definition of "political action committee" under WCMC 2-405(f): "Political action
committee means any committee as defined in this article, other than a controlled committee of a candidate."
Because of this ambiguity, there is an overlap between the definitions of "political action committee" and
"organization" such that they both could apply to independent non-controlled committees; however, based upon the
examples provided for the definition of"organization," it appears the intent is to only cover those entities which are
some kind of business entity or nonprofit corporation (e.g., Microsoft Corporation or the Red Cross). This issue is discussed further below.
WCMC section 2-403 also contains a prohibition against receipt of contributions in excess of $1,500 combined
total contributions from political action committees in any year by a candidate for an elective office of the City;
however, this will be discussed further below.
5 WCMC § 2-405(f).
ii. Analysis
These regulations provide for varying contribution limits for individuals, organizations, and
political action committees (where each is defined differently by the WCMC). Thus, the
differences in maximum contributions are dependent upon the entity status of the contributor
(i.e., individual versus organization versus political action committee) Additionally, these campaign contribution limits have not been revised since 1985.
iii. Recommendation
It is recommended that the contribution limits imposed upon individuals, organizations, and
political action committees, as defined by the WCMC, be revised such that the contribution
limitations without regard to the corporate, or non-corporate, status of the speaker. Moreover,
because the limits were enacted in 1985, it is also recommend that the City Council re-examine
individual contribution limits to determine that they meet contemporary needs.
b. WCMC section 2-403: Aggregate Limits on Contributions receivable by
Candidates
i. Generally
In relevant part, WCMC section 2-403 states that "No such candidate may receive any
contributions in excess of [$1,500] combined total contributions from political action committees
in any calendar year."
ii. Analysis
The City's ordinance serves to limit a candidate's ability to accept donations, which could have
an effect upon the ability of political action committees to contribute.
iii. Recommendation
It is recommended that the aggregate limits be re-examined to determine their desirability. If
there is a desire to keep the aggregate limits, then it is also recommended that they be equally
applied to individuals, organizations, and political action committees. Additionally, because the •
aggregate limits have not been examined since 1985, it is further recommended that the City
Council determine whether such limits meet contemporary needs.
c. WCMC section 2-405(e) and WCMC section 2-405(f): Ambiguities between
"Organization" and "Political Action Committee"
i. Generally
An "organization" is defined by WCMC section 2-405(e) as "any entity other than an individual,
political action committee, or controlled committee of a candidate, but including businesses
(including sole proprietorships), and nonprofit corporations or unincorporated associations."
Because this definition includes "nonprofit corporations" and excludes "controlled committees,"
then independent non-controlled committees are arguably included as an "organization." On the
other hand, a "political action committee" is defined by WCMC section 2-405(f) as "any
committee as defined in this article, other than a controlled committee of a candidate."
ii. Analysis
Based upon the above, a "political action committee" could also include an independent non-
controlled committee. As such, it would be unclear to independent non-controlled committees
whether the contribution limits under WCMC section 2-402 or WCMC section 2-403 apply.
Based upon the examples used for the definition of "organization," it appears that the intent of
WCMC section 2-405(e) is so that it covers business entities and nonprofit entities which are not
primarily organized for the purpose of political campaigning. With this in mind, it appears that
this ambiguity can be removed by clarifying the definitions.
iii. Recommendation
It is recommended that the definitions for both "organization" and "political action committee"
be clarified.
LEGAL REVIEW:
The City Attorney prepared this report.
FISCAL IMPACT:
Not applicable.
Prepared by:
Approved via Email
Kimberly Hall Barlow, City Attorney