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01-21-2014 - Request from Councilmember Corey Warshaw Requesting City Council to Review Current Local Ordinances on Campaign Contribution Requirements• City of West Covina Memorandum TO: Mayor and City Council FROM: Christopher J. Chung City Manager BY: Susan Rush Assistant City Clerk AGENDA ITEM NO. 16 DATE January 21, 241-3- 7-011 SUBJECT: REQUEST FROM COUNCILMEMBER COREY WARSHAW REQUESTING THE CITY COUNCIL TO REVIEW CURRENT LOCAL ORDINANCES ON CAMPAIGN CONTRIBUTION REQUIREMENTS RECOMMENDATION: It is recommended that the City Council provide direction accordingly. DISCUSSION: Section 81009.5 of the Political Reform Act entitled Local Ordinances provides authority to local government agencies to enact ordinances imposing filing requirements additional to or different from those set forth in the Political Reform Act for candidates and/or committees involved with offices or issues voted for solely in that jurisdiction. The City of West Covina has enacted two such local ordinances. Ordinance No. 1669 Ordinance No. 1669 (Attachment A) was adopted in 1985 which placed limits on contributions to campaigns of candidates for West Covina public office. Specific limits are as follows: • Campaign contributions by individuals - Limit of $500 per calendar year • Campaign contributions by an organization - Limit of $1000 per calendar year • Campaign contributions by Political Action Committee (PAC)- Limit of $500 from any one PAC and no more than $1,500 combined total contributions from PAC's per calendar year The ordinance also defines the identification of sponsors on campaign material and defines the definitions of certain terms. Ordinance No. 2081 Ordinance No. 2081 (Attachinent B) was adopted in 2002 and imposed stricter campaign contribution reporting requirements of candidates and office holders than those required by the Political Reform Act. The stricter reporting requirements included the following: • Providing full disclosure of any amount given to his/her campaign • Providing the names of all individuals who gave money to his/her campaign regardless of the amount • Required that all money donations (regardless of amount) be made by check only. Per the City Council Standing Rules, Councilmember Corey Warshaw is seeking the City Council's consensus to review the City's local campaign contribution ordinances and other cities ordinances and consider changes to West Covina's ordinances. There are currently 138 cities in California which have enacted local campaign ordinance, all of which are posted on the Fair Political Practices Commission's website (Attachment C). • i Should the City Council wish to amend the City's current local campaign ordinances, the City Attorney's office should be directed to draft a proposal for the City Council's consideration. Any proposal shall be within in the confines of the authority authorized by the Political Reform Act. FISCAL IMPACT: Any fiscal impact will be dependent on direction taken by the City Council. Prepared by: Susan Rush Assistant City Clerk Attachment A — Ordinance No. 1669 Attachment B — Ordinance No. 2081 Attachment C — List of Cities with Local Ordinances ATTACHMENT A ORDINANCE NO. 1669 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ADDING ARTICLE VIII TO CHAPTER 2 OF THE WEST COVINA MUNICIPAL CODE PLACING LIMITS ON CONTRIBUTIONS TO CAMPAIGNS OF CANDIDATES FOR WEST COVINA PUBLIC OFFICE THE CITY COUNCIL OF.THE CITY OF WEST COVINA DOES ORDAIN AS FOLLOWS: SECTION 1. Article VIII of Chapter 2 of the West Covina Municipal Code is hereby added to read as follows: "Section 2-401. Campaign Contributions • by'Individuals. No individual shall make, and no candidate shall receive from anv 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. Campaign Contributions by Organizations. No organization shall make, and no candidate shall receive from any organization, 1 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=Z463._.. Campaign 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." "Section",Z�. 0-4 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. -2- (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 Fli� prominent location on the advertisement and on the outside of each piece of mail in 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]." "Section 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 specific elective office for which he or she will seek -3- 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 adeclaration 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) Makes 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 -4- consideration is received for making the expenditure. The term "contribution" includes the purchase of tickets for events such as dinners, luncheons, rallies and similar fundraising 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 fundraising event -5- 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 non-profit corporations or unincorporated associations. (f) "Political Action Committee" means any committee as defined in this ordinance, other than a controlled committee of a candidate." MM Cl • • • SECTION 2. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this ordinance and shall cause the same to be published in the manner prescribed by law. PASSED AND APPROVED this 22nd day of -April , 1985. pe�� 54. MAYOR ATTEST: kkedl_ & 4�4� f CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF WEST COVINA ) I, —Helene M. Mooney, City Clerk of the City of West Covina, do hereby certify that the foregoing Ordinance No. 1669 was regularly introduced and placed upon a first reading at a regular meeting of the City Council on the 8th day of April , 1985. That thereafter said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 22nd day of April , 1985, by the following vote, to -wit: AYES: Councilmembers: Manners, Chappell, Shearer, Tennant, Bacon NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED AS TO FORM: a& I la-� CITY ATTORNEY -7- CITY CLERK 9 9 ATTACHMENT B • ORDINANCE NO. 2081 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, REVISING AND AMENDING THE WEST COVINA MUNICIPAL CODE AS IT RELATES TO CAMPAIGN CONTRIBUTION REPORTING REQUIREMENTS WHEREAS, the City Council is desirous of imposing additional requirements over and beyond those that are required by the Political Reform Act in relation to campaign contribution reporting; and WHEREAS, Section 81009.5 of the Political Reform Act entitled Local Ordinances provides authority to local government agencies to enact ordinances imposing filing requirements additional to or different from those set forth in the Political Reform Act for candidates and/or committees involved with issues or offices voted for solely in that jurisdiction; and WHEREAS, the West Covina Municipal Code requires slight renumbering of Articles VII and VM of Chapter 2 to accommodate the new text. THEREFORE, the City Council of the City of West Covina does ordain as follows: SECTION 1. Section 2-400 of Article VII of the West Covina Municipal Code was set aside some time ago, reserved for future use. The time has come to utilize that section to codify the new language into the Municipal Code book. Upon adoption of this ordinance, the municipal code section reserving certain sections of Article VII shall read as follows: "Secs. 2-336 — 2-399. Reserved." SECTION 2. Article VI1I - Campaign Contributions is hereby amended to include the .following section as follows: "Section 2-400. Campaign Contribution Reporting Requirements. Candidates running for and officeholders in positions of elective office in the City of West Covina shall adhere to the following campaign contribution reporting requirements: (a) Provide full disclosure of any ar zount given to his/her campaign. (b) Provide the names of all individuals who give money to his/her campaign regardless of the amount. (c) Require that all money donations (regardless of amount) be made by check only." SECTION 3. The City Clerk shall certify to the passage of this ordinance and shall have it published in accordance with the provisions of state law. APPROVED and ADOPTED this 2nd day of April, 2002. Attest. City•Clerk Janet Berry /W �, - Ma or Michael Touhey Ordinance No. 2081 Page Two 1, JANET BERRY, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the West Covina City Council on March 5, 2002, and duly adopted by the City Council at the following regularly scheduled meeting of April 2' �, 2002 by the following vote of the Council: AYES: Herfert, Sanderson, Touhey NOES: Miller, Wong ABSENT: None Approved as to form: 41ityy *Atto4rney/Arnold Alvarez-Glasman C` City Clerk Janet Bet . i`= California Fair Political Practic*ommission - Print ATTACHMENT C Local Campaign Ordinances Learn more about local campaign finance laws. Cities and counties that have adopted a campaign finance ordinance must submit a copy to the FPPC (§ 81009.5). The FPPC has received information from the following agencies. If you have questions about interpreting any of these provisions, please contact the local jurisdiction. 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