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HomeMy WebLinkAboutItem 6d. O-1733 Second Reading to amend SLOMC Chapter 2.40.040 (Contribution Limitations) to lower the limit from $300 to $250 Item 6d Department: Administration Cost Center: 1021 For Agenda of: 3/5/2024 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Megan Wilbanks, Deputy City Clerk SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1733 (2024 SERIES) TO AMEND MUNICIPAL CODE CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS) RECOMMENDATION Adopt Ordinance No. 1733 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 2.40.040 of the Municipal Code related to Campaign Contribution Limitations” reducing the per person contribution limit from $300 to $250. POLICY CONTEXT Municipal Code Chapter 2.40 outlines Elections Campaign Regulations and Section 2.40.040(A) establishes the current total contribution limit per person at $300. Changes to the Municipal Code require two public hearings: 1) Introduce the draft Ordinance, which occurred at the Council Meeting held on February 6, 2024 and 2) Second reading and adoption of the proposed Ordinance. DISCUSSION Background Approved by the Governor in September 2022 and effective January 1, 2023, Senate Bill 1439 (SB 1439) broadens the scope of Section 84308 of the Political Reform Act to prohibit local elected officials from taking part in licensing, permitting, and other use entitlement proceedings involving a party or participant who has contributed more than $250 to the official within the 12 months prior to the proceeding. SB 1439 also extends the period in which an official is prohibited from receiving a contribution exc eeding $250 from a party or participant in the proceeding from three to 12 months after the final decision. Page 37 of 116 Item 6d To reduce the likelihood of contributions that violate SB 1439, on February 6, 2024, Council introduced Ordinance No. 1733 (2024 Series) (Attachment A) to amend Chapter 2.40.040 (Contribution Limitations) to lower the per-person contribution limit from $300 to $250. Regardless of the updated contribution limit, council members are still required to monitor contributions for aggregated totals exceeding $250. Previous Council Action  On July 18, 2023, staff requested that the Council consider creating a committee to review Elections Campaign Regulations and whether the maximum allowable contribution should be lowered to $250 to align with Senate Bill 1439. Council provided direction (see approved Minutes) to return in the Winter of 2024 to further discuss the status and implementation of Senate Bill 1439 and consider a reduction of the maximum allowable contribution.  On February 6, 2024, Council approved the introduction of an Ordinance to amend Chapter 2.40.040 (Contribution Limitations) to lower the per -person contribution limit from $300 to $250 (see approved Minutes). Public Engagement In accordance with the City’s noticing requirements for proposing amendments to the Municipal Code, a legal ad was published in The New Times on January 25, 2024, 10 days prior to introduction of the ordinance and an additional legal ad will be published on February 28, 2024, 5 days prior to final adoption. Additionally, contents of the ads will be published to the City’s website, with e-notifications sent to subscribers of City News. The public will have an opportunity to provide public comment in writing prior to the meeting or as public comment during the meeting. CONCURRENCE The City Attorney’s Office, Community Development Department, and Finance Department concur with staff’s recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2023-24 Funding Identified: N/A Page 38 of 116 Item 6d Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $N/A $ $ $ State Federal Fees Other: Total $N/A $ $ $ There are no financial impacts directly associated with this item. ALTERNATIVES Do not adopt Ordinance No. 1733 (2024 Series) to lower the per-person campaign contribution limit to $250. ATTACHMENTS A - Ordinance No. 1733 (2024 Series) Page 39 of 116 Page 40 of 116 O 1733 ORDINANCE NO. 1733 (2024 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 2.40.040 OF THE MUNICIPAL CODE RELATED TO CAMPAIGN CONTRIBUTION LIMITATIONS WHEREAS, the Council of the City of San Luis Obispo conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on February 6, 2024, for the purpose of considering changes proposed to update the Municipal Code. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. After considering the meeting minutes and recommendations of the City Clerk and City Attorney and public input and testimony, and having considered arguments and authority supporting and opposing modifications to and continuation of the City's campaign regulations, the Council makes and adopts the following findings in support of the regulations a dopted herein: A. San Luis Obispo is a small and engaged community wherein residents closely follow and scrutinize elections processes and closely monitor the amounts and sources of campaign contributions to individual candidates for elected office . B. Based on an evaluation of campaign expenditures in comparable cities, the Council finds the direct contribution limits adopted herein are consistent with those in place in comparable jurisdictions and, notwithstanding the existing limitations or lack thereof in comparable jurisdictions, that the limitations adopted herein would permit candidates to solicit and accept contributions far in excess of historical expenditures by candidates in the City of San Luis Obispo and comparable cities. C. The Council has considered and affirms the statement of purpose and intent set forth herein and determines the amended and decreased contribution limits adopted herein further and support the stated purpose and intent. SECTION 2. That the following section of the San Luis Municipal Code Chapter 2.40 is hereby amended to read as follows: Page 41 of 116 Ordinance No. 1733 (2024 Series) Page 2 O 1733 2.40.040 Contribution limitations. A. Contributions by Persons to Candidates and/or Controlled Committees. No person shall make any contribution to a candidate and/or any controlled committee connected with that candidate, with respect to any single election, which would cause the total amount contributed by such person to the candidate and any controlled committee connected with that candidate, when combined, to exceed two hundred and fifty dollars. B. Acceptance or Solicitation by Candidates or Controlled Committees. No candidate or controlled committee shall solicit or accept any contribution from any person which would cause the total amount contributed by such person, with respect to any single election, to the candidate and/or any controlled committee connected with that candidate, when combined, to exceed the sum of two hundred and fifty dollars. C. Contributions by Candidates. The provisions of subsections A and B of this section shall not apply to contributions from a candidate or from his or her immediate family to any controlled committee connected with that candidate, nor to the expenditure, by the candidate, of his or her personal funds. For purpos es of this section, "immediate family" means a candidate's or elected officeholder's spouse or domestic partner, and/or dependent children. D. Anonymous Contributions. No candidate or controlled committee shall accept anonymous contributions, with respect to any single election, which exceed fifty dollars. Subject to the provisions of state law, in the event a candidate or controlled committee receives an anonymous contribution that would result in a violation of this subsection, the candidate or controlled committee shall promptly pay that sum to the city for deposit into the general fund to be used to defray the costs of municipal elections. SECTION 3. Ordinance Number 1599 (2014 Series) is hereby amended and superseded to the extent inconsistent herewith. Page 42 of 116 Ordinance No. 1733 (2024 Series) Page 3 O 1733 SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 6th day of February 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 20 24, on the following vote: AYES: NOES: ABSENT: ___________________________ Mayor Erica A. Stewart ATTEST: _______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 43 of 116 Page 44 of 116