HomeMy WebLinkAboutItem 6a - Intrduction of an Ordinance to Amend Municipal Code Chapter 2.40.040 (Campaign Contribution Limitations) Item 6a
Department: Administration
Cost Center: 1021
For Agenda of: 2/3/2026
Placement: Public Hearing
Estimated Time: 30 Minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: INTRODUCTION OF AN ORDINANCE TO AMEND MUNICIPAL CODE
CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS)
RECOMMENDATION
Consider introduction of a draft Ordinance 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” increasing the per person contribution limit
from $250 to $500.
POLICY CONTEXT
Municipal Code Chapter 2.40 outlines Elections Campaign Regulations and Section
2.40.040(A) establishes the current total contributi on limit per person at $250. Changes
to the Municipal Code require two public hearings: 1) Introduction of a draft Ordinance
(Attachment A) and 2) Second reading for final adoption of the proposed Ordinance at a
future public meeting.
DISCUSSION
Background
The Political Reform Act is a California voter-approved initiative requiring strict,
transparent, and public disclosure of money in state and local politics. It regulates
campaign contributions, lobbyist activities, and conflict of interest laws to ensure honest
government. In 2022, California Senate Bill 1439 expanded the requirements of
Government Code section 84308, known as the Levine Act.
Key points of the Levine Act
Who it applies to:
State and local elected officials, appointed officials, and certain agency members
who make decisions on licenses, permits, contracts, or other entitlements.
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Item 6a
Contribution threshold:
If the official receives more than $250 (amount set by statute) from a party,
participant, or agent involved in a matter.
Time restriction:
The official must recuse themselves from the decision:
o For 12 months after receiving the contribution, and
o For 3 months after a final decision is made.
Disclosure option:
In some cases, an official may publicly disclose the contribution and return it,
which can allow participation.
Purpose:
To ensure government decisions are made fairly and impartially, not influenced by
campaign donations.
Approved by the Governor in September 2024 and effective January 1, 2025, Senate Bill
1243 (“SB1243”) amended Section 84308 of the Political Reform Act.The following is a
summary of the amendments to the Levine Act:
Higher Contribution Threshold
The amount of campaign contributions that triggers the Levine Act restrictions was
raised from $250 to $500.
Clarified Definitions
Key terms—such as “pending,” “agent,” “participant,” and what counts as a license,
permit, or other entitlement for use—are now defined in the statute, reducing
confusion over when the rules apply.
Agent Contributions Treated Separately
Contributions by agents of a party or participant (like lobbyists or consultants) are
now prohibited in any amount during a pending proceeding and for 12 months
thereafter and are no longer aggregated with contributions from the party itself.
Extended Cure Period
Officials who receive a disqualifying contribution now have up to 30 days (instead of
14) to return it in order to “cure” the conflict and potentially participate in the
decision.
Disclosure Requirements Clarified
Parties to proceedings must disclose any contribution over $500 to officials before the
agency makes its final decision, with statutory timing requirements now clearer .
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Item 6a
Expanded Contract and Participant Exemptions
Certain contracts and circumstances are excluded from triggering the Levine Act,
such as:
o Contracts under $50,000,
o Contracts between two government agencies,
o Contracts where neither party receives compensation,
o Some periodic renewals or routine reviews,
At the May 20, 2025 Council Meeting, the Council decided not to appoint an Election
Regulations Review Committee to review whether the maximum allowable contribution
should be increased to $500 to align with Senate Bill 1243. Council provided direction to
return in the Winter of 2026 with a draft Ordinance increasing the maximum allowable per
person contribution from $250 to $500.
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 10 days prior (on January
22, 2026) to introduction of the ordinance and 5 days prior to final adoption. Additionally,
contents of the ad(s) 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.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommendation
in this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: No
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 $ $ $
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Item 6a
There are no financial impacts directly associated with this item.
ALTERNATIVES
Council could direct staff to not increase the per person campaign contribution limit to
$500. If Council chooses this alternative, the current limit of $250 would remain in effect,
and the City’s allowable campaign contribution limit would remain lower than the
disqualifying contribution amount in new state law.
ATTACHMENTS
A - Draft Ordinance amending SLOMC Chapter 2.40.040 (Contribution Limitations)
Page 134 of 185
O ______
ORDINANCE NO. _____ (2026 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING CHAPTER 2.40.040 OF THE
MUNICIPAL CODE RELATIONED TO CAMPAIGN CONTRIBUTION
LIMITATIONS
WHEREAS, Senate Bill 1243 amended Section 84308 of the Political Reform Act,
raising the threshold for a conflicted contribution from the previous limit of $250 to $500
in (in the aggregate per candidate.)
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
May 20, 2025, 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,
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 adopted 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:
2.40.040 Contribution limitations.
Page 135 of 185
Ordinance No. _____ (2026 Series) Page 2
O ______
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 five hundred 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 fiftyfive hundred dollars.
SECTION 3. Ordinance Number 1733 (2024 Series) is hereby amended and
superseded to the extent inconsistent herewith.
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 3rd day of February, 2026, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ____ day of ____, 202X, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
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Ordinance No. _____ (2026 Series) Page 3
O ______
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
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Page 138 of 185
1
Introduce an Ordinance Amending
Campaign Contributions
February 3, 2026
2
Recommendation
Introduce an ordinance amending
Chapter 2.40.040 of the Municipal Code
related to Campaign Contribution
Limitations.
•Increasing the per person contribution
limit from $250 to $500
3
Policy and Legal Background
Senate Bill 1439 became effective January 1, 2023, which broadens the scope of Section
84308 of the Political Reform Act to:
•Applies to agencies whose members are directly elected by voters including local
elected officials such as city councilmembers and county supervisors serving on their
respective boards.
•Prohibits local elected officials from taking part in licensing, permitting, and other use
entitlement proceedings involving a party or participant who contributed more than
$250 to the official within the 12 months prior to the proceeding .
•Extends the period in which an official is prohibited from receiving a contribution
exceeding $250 from a party or participant in the proceeding from three after the final
decision.
•Also includes limited opportunities to cure a violation by 1) returning the contribution,
or just the portion in excess of $250, within either 30 or 14 days, depending on certain
circumstances, or 2) recusing from participating in the proceeding.
8
History of City Campaign
Contributions Limits
1974
Per person contribution
limit established at $100
2005
Per Person contribution
limit increased to $200
2014
Per Person contribution
limit increased to $300
2024
Per person contribution
limit decreased to $250
due to the Levine Act
2026
Levine Act limit
increased to $500
9
State Law Update –SB 1243
•Effective January 1, 2025
•Threshold increased to $500
•Correct a typo in the Ordinance
c)The Council has considered and affirms the
statement of purpose and intent set forth herein and
determines the amended and decreased increased
contribution limits adopted herein further and support
the stated purpose and intent.
10
State Law Update –SB 1243
•Clarified definitions
o Participants
o Pending
•Agent contributions are now treated
separately.
•Extends the Cure Period
•Expands Contract exceptions
11
Recommendation
Introduce an ordinance amending Chapter
2.40.040 of the Municipal Code related to
Campaign Contribution Limitations.
•Increasing the per person contribution limit
from $250 to $500
•Including the change to the Ordinance
removing the word decreased and replacing
it with increased