HomeMy WebLinkAbout12/15/2009, B 1 - AMENDMENT OF ELECTION CAMPAIGN REGULATIONS council
j ac En as Report 8 ►
CITY OF SAN LU IS OBISPO
FROM: Jonathan P. Lowell, City Attorney
Elaina Cano, City Clerk
SUBJECT: AMENDMENT OF ELECTION CAMPAIGN REGULATIONS
RECOMMENDATION
Introduce an ordinance amending Chapter 2.40 (Election Campaign Regulations) of the
Municipal Code to incorporate the recommendations of the Council's ad hoc election campaign
regulations citizen committee.
DISCUSSION
The City's Election Campaign Regulations were first adopted in 1974. The regulations were
intended to place realistic and enforceable limits on campaign contributions and expenditures, to
ensure fairness and full disclosure, and to provide an opportunity for all citizens to become
candidates for public office unhindered by exorbitant campaign costs. The regulations
specifically call for a periodic review of such regulations in order to ensure they are consistent
with the original intent and with state and federal law. The last review was conducted in 2005
and revised Election Campaign Regulations were adopted by the Council in November of that
year.
Section 2.40.160 of the Municipal Code provides that at least nine months prior to the expiration
of Chapter 2.40 the Council shall appoint a committee of at least five citizens to study the
efficacy of the City's Election Campaign Regulations and report it deliberations to the City
Council. On June 16, 2009 the City Council appointed a citizens committee consisting of the
following: John Ewan (Chairperson), Ty Griffin, Michael Latner (Alternate), Christine
Mulholland, Pam Voges and Dodie Williams. This committee has met five times over the past
several months and makes this recommendation which staff concurs with.
While in years past, there have been calls for substantial revisions to the regulations, and the
Council has subsequently adopted amended regulations incorporating several such recommended
revisions, this year it was only candidate campaign treasurers that indicated the regulations need
to be transparent and provide for ease of use, i.e. simplification of filing requirements and forms
that coordinate with state filing requirements. The committee considered that concern, and
considered a few issues of their own, along with some minor changes in language to more closely
comport with state and federal law.
Amendment Of Election Campaign Regulations Page 2
Because the changes being proposed include simplification and coordination with state
regulations, there are several current provisions that are recommended for removal because they
are redundant in light of state law. Elimination of those provisions, or parts thereof, has made it
difficult to generate an easy to follow legislative draft of the proposed changes. For this reason, a
legislative draft is not being provided with this report; instead, the current regulations are
attached for review (Attachment 1) along with the proposed ordinance adopting revised
regulations (Attachment 2).
The most significant changes proposed by the committee are to:
1. Revise the language in the Purpose and Intent section to more closely follow the state
Political Reform Act and Fair Political Practices Commission (FPPC) regulations.
2. Incorporate by reference definitions of terms in the Political Reform Act and FPPC
regulations.
3. Delete provisions that duplicate state law requirements.
4. Delete provisions governing independent expenditures, as they are preempted by state and
federal law.
5. Require use of state form and, in addition, a City supplemental form which will set forth
name, address and amount of each person who contributes greater than $50 but less than
$100 to a campaign.
6. Not permit anonymous contributions in excess of$50.
7. Delete provision limiting contributions in last week before an election.
8. Require filing of campaign statements using both state and City forms in accordance with
time lines set forth in state law.
9. Require City Clerk to timely post above campaign statements on City's website for public
inspection, and place display ad in newspaper to advise public that such information is
available for viewing on the Internet. There will be no publication in the newspaper of
names of contributors and amounts of contributions. Newspaper display ad will direct
interested public to City's website to view campaign statements.
What is being recommended to stay the same:
1. The $200 per individual limit on campaign contributions.
2. The requirement that campaign accounts be maintained at a local branch bank.
. 3. The full range of legal and equitable remedies at the City's disposal in the event of a
violation of these regulations.
4. A means for the public to inspect campaign statements in order to understand who
contributors to campaigns are and how much is contributed.
The ad hoc committee's proposed revisions are crafted to ensure that the original goals of the
City of San Luis Obispo's campaign regulations are met, yet providing for practical and efficient
administration by candidates and their campaign treasurers, as well as the City Clerk. The Chair,
Vice Chair and other members of that committee are expected to be at the Council meeting of
December 15 in order to provide further explanation of the basis for their recommendations.
a,
Amendment Of Election Campaign Regulations Page 3
CONCURRENCES
The City Clerk and the City Attorney, who worked with the election campaign regulations citizen
committee as it formulated its recommendations, concur with the proposed changes.
FISCAL IMPACT
There will be an approximate savings of $3,500 per election if lists of contributors and their
contributions are posted on the Internet rather than being published in the newspaper.
ALTERNATIVES
Do nothing. This is not recommended as a citizen committee has provided relevant input based
on recent past experiences complying with the current regulations. In addition, pursuant to the
specific language in the current code, the campaign regulations will sunset in June 2010 unless
the Council specifically re-enacts them or adopts new ones.
ATTACHMENTS
1. Current Regulations
2. Proposed Ordinance
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
Minutes of ad hoc Election Campaign Regulations Citizen Committee
G:\Election Campaign Regulations�Agenda Report-Election Campaign Regs Amendment Ord.DOC
.131-3
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* Page 1 of 8
ATTAuHMENT t
Chapter 2.40
ELECTION CAMPAIGN REGULATIONS*
Sections:
2.40.010 Title.
2.40.020 Purpose and intent.
2.40.030 Definitions.
2_40.040 Campaign treasurer—Appointment required—Compliance with provisions
required.
2.40.050 Contributions.
2.40.055 Independent expenditures.
2.40.060 Election campaign accounts.
2.40_070 Campaign statements.
2.40.080 Campaign signs.
2.40.090 Responsibilities of city clerk.
2.40.100 Criminal misdemeanor actions.
2.40.110 Civil actions.
2.40.120 Injunctive relief.
2.40.130 Cost of litigation.
2.40.140 Disqualification.
2.40.150 Construction of provisions.
2.40:160 Council study committee.
2..40,170 Expiration of provisions.
*Prior legislation: Prior code §§ 2800-2812, as amended by Ord. 1067 § 1, 1986, Ord. 1191 §
1, 1991, and Ord. 1254 § 1, 1994.
2.40.010 Title.
This chapter may be cited as the election campaign regulations of the city. (Ord. 1483 § 1
(part), 2005: Ord. 1333 § 1 (part), 1998)
2.40.020 Purpose and intent
A. It is the purpose and intent of this chapter:
1. To promote integrity, honesty and fairness in municipal election campaigns.
2. To ensure a level of discussion of public issues adequate for a viable campaign by
providing voters with the information necessary to make an assessment of each candidate or
measure before voting.
3. To require public disclosure of campaign contributions and expenditures, including,
but not limited to, those made in support of or in opposition to candidates or measures in
municipal elections.
4. To place realistic and enforceable limits on the amounts persons may contribute in
municipal election campaigns.
5. To ensure that funds contributed to a campaign committee are used solely for
campaign purposes.
6. To allow appropriate use of signage in municipal, regional, state and federal
campaigns.
7. To provide full and fair enforcement of all the provisions of this chapter.
B. By enacting this chapter, the council does not intend to deprive or restrict any citizen of
the exercise of rights guaranteed under the United States Constitution and the California
Constitution. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998)
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* /►'I71 `1H"ENT Page 2 of 8
2.40.030 Definitions.
The following words or phrases shall have the meanings as indicated in this section when
used in this chapter:
A. "Campaign statement" means a report, made on a form prescribed and supplied by the
city clerk, which provides the information required by this chapter of candidates and
committees. Each campaign statement shall reflect all contributions received and expenditures
made through the closing date specified in Section 2.40.070.
B. "Campaign treasurer" means the.duly appointed representative responsible for financial
accounting and reporting as required by this chapter. A committee may have only one
campaign treasurer and one assistant treasurer.
C. "Candidate" means any individual listed on the ballot for election to or recall from any city
office, or who has otherwise taken action to seek such election to city office.
D. "Committee" means any person or combination of persons which directly or indirectly
receives contributions or makes expenditures or contributions for the purpose of expressly
advocating the election or defeat of a clearly identified candidate(s) or for supporting or
opposing the passage of any measure(s) in the city of San Luis Obispo.
E. Contribution.
1. The term "contribution" includes the following:
a. A payment, loan, forgiveness of a loan, 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 campaign purposes. An expenditure made at the behest of a candidate or committee
is a contribution to the candidate or committee, unless full and adequate consideration is
received for making the expenditure.
b. Money or property contributed by the candidate, as well as discounts or rebates
granted by television and radio stations and newspapers which are not extended on an equal
basis to all candidates for the same office.
c. The purchase of ticket(s) for events such as dinners, luncheons, rallies and
similar fundraising events. Contribution reporting requirements shall apply when the total
accumulative ticket purchases by any one person exceed the limitations set forth in Section
2.40.050(C).
d. Nonmonetary contributions such as art objects, furniture, and similar items of
value, or anything of value transferred from one committee to another.
e. 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 by the candidate
or committee.
f. Funds or professional services donated to assist in election-related litigation.
2. 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.
3. Notwithstanding the definition of"contribution" as set out in this subsection, the term
does not include volunteer personal services or payments made by any individual for personal
travel expenses, if such payments are made voluntarily without any understanding or
agreement which shall be, directly or indirectly, repaid to the person.
F. "Election" means any general, special or recall municipal election of the city of San Luis
Obispo.
G. "Expenditure" means a payment, forgiveness of a loan, payment of a loan by a third
party, or an enforceable promise to make payment, unless it is clear from the surrounding .
circumstances that it is not made for political purposes. When expenses are incurred to
support election-related litigation, they are considered expenditures. An expenditure is made
on the date the payment is made or on the date consideration, if any, is received, whichever is
earlier.
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* ATT®�L,�I�A��� Page 3 of 8
A {I�
H. "Immediate family° means a candidate's or elected officeholder's spouse or domestic
partner, and/or dependent children.
I. "Independent expenditure" means an expenditure made by any person in connection with
a communication which expressly advocates the election or defeat of a clearly identified
candidate(s) or the qualification, passage, or defeat of a clearly identified measure(s) or, taken
as a whole and in context, unambiguously urges a particular result in an election, but which is
not made to or at the behest of the affected candidate or committee. (Government Code
Section 82031..)
J. "Measure" means any charter amendment or other proposition which is submitted to a
popular vote at any municipal election by the city council, or which is submitted or is intended
to be submitted to a popular vote at a municipal election by initiative, referendum or recall
procedure whether or not it qualifies for the ballot.
K. "Person" means an individual, proprietorship, firm, partnership, joint venture, labor union,
syndicate, business trust, company, corporation, association, committee (including both
controlled and independent committees), and any other organization or group of persons
acting in concert. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 1, 2002; Ord. 1333 § 1 (part), 1998)
2.40.040 Campaign treasurer—Appointment required—Compliance with provisions
required.
A. Each candidate and/or each committee shall appoint a campaign treasurer. A candidate
may serve as the campaign treasurer for his/her campaign or for his/her committee. An
assistant treasurer may also be appointed.
B. Each campaign treasurer shall be responsible for complying with the requirements of the
California Government Code in addition to complying with the provisions of this chapter. (Ord.
1483 § 1 (part), 2005: Ord. 1407 § 2, 2002; Ord. 1333 § 1 (part), 1998)
2.40.050 Contributions.
A. Transmittal to Campaign Treasurer. All persons who receive contributions on behalf of a
candidate or committee shall transmit the contributions in full to the campaign treasurer
promptly, together with a list showing the name and address of each contributor and the
amount of the contribution, subject to the exceptions provided in this section.
B. Refusal to Accept. A candidate or a campaign treasurer shall have full authority to refuse
and to return any contribution offered, provided the contribution is returned within fourteen
days of receipt..
C. Prohibitions.
1. No person other than a candidate or the candidate's immediate family members shall
make, and no person or campaign treasurer shall solicit or accept, any contribution which will
cause the total amount contributed by such person with respect to a single election in support
of, or in opposition to, such candidate, including contributions to all committees supporting or
opposing such candidate, to exceed two hundred dollars.
2. The above contribution limitations do not apply to committees formed primarily to
support or oppose the qualification or passage of a ballot measure. Ballot measure committees
may not make contributions to candidates or committees which make contributions to
candidates.
3. No person shall make a contribution for any other person under an assumed name
or under the name of any other person.
4. No candidate or committee shall retain any amount greater than fifty dollars from one
person or source without obtaining the name and address of that contributor, or one hundred
dollars or greater without obtaining the name, address, occupation and employer of that
contributor. Any anonymous contribution greater than fifty dollars shall be forwarded to the city
clerk and deposited in the city's treasury.
5. For the purposes of this section, a contribution shall be deemed received at the time
of actual receipt by the campaign treasurer.
6. No person, candidate or candidate's committee shall make or accept any
contribution greater than fifty dollars after five p.m., Monday, eight days preceding the day of
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* AANMENT Page 4 of 8
election, except that a candidate and/or a candidate's immediate family shall be
permitted to make additional contributions to the candidate or to the candidate's committee.
7. Any contribution of one thousand dollars or more from a single source which is made
to or received by a committee primarily formed to support or oppose a ballot measure during
the sixteen days immediately preceding the election at which the measure is being voted upon
must be reported to the city clerk within twenty-four hours of the time it is received or
contributed. Any contribution of one hundred dollars or more from a single source which is
made to or received by a committee primarily formed to support or oppose a ballot measure
during the eight days preceding the election at which the measure is being voted upon must be
reported to the city clerk within twenty-four hours. Late contribution reports must be filed by
fax, telegram, mailgram, guaranteed overnight delivery service, or personal delivery (not by
regular mail).
8. No person shall deduct or withhold any amount or percentage from any contribution.
Any compensation provided to any person for solicitation, collection or other service shall be
treated as an election expenditure item.
D. Aggregation of Contributions.
1. For the purposes of this section, contributions received from a joint checking account
shall be attributed to the individual who signs the check. If two or more individuals sign the
check, the contribution is divided equally between or among the signers, unless there is an
accompanying document signed by each individual whose name is on the check which clearly
indicates a different apportionment.
2. Contributions made by two or more entities must be combined if the same person, or
a majority of the same person, directs or controls the contributions.
3. Contributions made by entities in a parent-subsidiary relationship and business
entities with the same controlling owner (more than fifty percent) must be combined unless the
entities act completely independently in their decisions to make contributions. A parent-
subsidiary relationship exists when one entity owns more than fifty percent of another business
entity. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 3, 2002; Ord. 1333 § 1 (part), 1998)
2.40.055 Independent expenditures.
A. Contribution Limitations Pertaining to a Candidate Election. Any person who makes
independent expenditures supporting or opposing a candidate(s) shall not accept any
contribution in excess of the amounts set forth in Section 2.40.050(C).
B. Reproduction of Materials. Any person who reproduces, broadcasts or distributes any
material which is drafted, printed, prepared or previously broadcast by a candidate(s) or a
committee controlled by such candidate shall report such an expenditure as a nonmonetary
contribution to such candidate or committee.
C. Identification of Expenditures. Any person who makes independent expenditures for or
against a candidate or a ballot measure shall indicate clearly on any material published,
displayed, distributed, or broadcast the name of the person and the fact that the material was
paid for by that person.
D. Every person accepting or making contributions pertaining to candidate elections shall
comply with all of the requirements imposed on candidates and committees by this chapter.
Every person making expenditures pertaining to candidate elections shall comply with all
reporting requirements of this chapter. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998)
2.40.060 Election campaign accounts.
A. Candidate Intention Statement and the Campaign Bank Account.
1. Candidate Intention Statement. Any individual who intends to be a candidate for a
city elective office mutt file a statement of intention to run for office prior to soliciting or
receiving any contribution or loan. Form 501 (Candidate Intention) is used to comply with this
requirement, and is filed with the city clerk.
2. Candidate Campaign Bank Account. In addition to filing the candidate intention
statement, an individual who plans to run for a city elective office and who plans to accept
contributions and make campaign-related expenditures must set up a campaign bank account /
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Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* QT������aw Page 5 of 8
at a financial institution with a branch located in the city of San Luis Obispo.
3. City ballot measure committees must set up a campaign bank account at a financial
institution with a branch located in the city of San Luis Obispo.
B. Statement of Organization. For each campaign bank account into which contributions
totaling one thousand dollars are received (including the candidate's personal funds) or within
ten days of receiving contributions of one thousand dollars or more, a recipient committee
statement of organization (Form 410) must be filed with the Secretary of State. A copy shall
also be filed with the city clerk. If a recipient committee qualifies during the sixteen days prior
to.an election, it must file, by telegram, fax or personal delivery within twenty-four hours of
qualifying as a committee, the information required to be reported in the statement of
organization. A copy of this form shall be filed with the city clerk.
C. Deposit of Contributions. All campaign contributions accepted by a campaign treasurer
shall be deposited into the election campaign account by the campaign treasurer or his/her
authorized agent.
D. Expenditures. Campaign expenditures shall be made only by checks drawn against the
election campaign account by the campaign treasurer or authorized agent, except that a
candidate or committee may establish one petty cash account.
1. No more than one hundred dollars may be in the petty cash fund at any one time,
and no expenditures of more than twenty-five dollars may be made from a petty cash account.
The petty cash account may be used only for expenses associated with the candidate's
election to the specific office for which the petty cash fund was established.
2. Petty cash or funds in the election campaign account shall not be considered for any
purpose to be personal funds of a candidate, campaign treasurer or any other person.
E. Access to Records by City Clerk. The city clerk shall have full access at all reasonable
hours to the bank's records concerning all election campaign accounts.
F. Disbursement of Unexpended Campaign Funds. If, following the election, the final
campaign statement for any committee discloses an unexpended campaign surplus, the
campaign treasurer shall disburse the whole of the surplus to the city and/or a nonprofit
charitable organization (qualified for federal income tax exemption) of the candidate's or
campaign treasurer's choice. This shall be done no later than ninety days after the election.
G. Closing of Account. No later than ninety days following the election, the campaign
treasurer shall close the election campaign account and file a State Form 460 (Recipient
Committee Campaign Statement) with the city clerk. The campaign treasurer shall also file a
State Form 410 (Statement of Organization—Termination) with the Secretary of State, with a
copy to the city clerk. However, should litigation arise as a result of the conduct of the
campaign, either during the campaign period or after the conclusion of the campaign, the
account may be kept open until such litigation is finally concluded. Within forty-five days of
such conclusion, a final campaign statement shall be filed with the city clerk.
H. Retention of Records. The campaign treasurer shall retain all campaign statements and
all other records required by this chapter for a period of four years after the election. (Ord.
1483 § 1 (part), 2005: Ord. 1407 §§ 4, 5, 6, 2002; Ord. 1333 § 1 (part), 1998)
2.40.070 Campaign statements.
A. Required Filing Schedule. Every campaign treasurer, upon receiving or expending one
hundred dollars or more, shall file with the city clerk campaign statements according to the
following schedule:
1. State campaign statements shall be filed as required by the provisions of the
Government Code.
2. A supplemental city campaign statement shall be filed no later than twelve noon,
Tuesday, one week before the election. The closing date of this statement shall be five p.m.,
Monday, eight days before the election.
B. Contents.
1. Each state campaign statement filed shall contain the information required under the
provisions of the Government Code.
2. The supplemental city campaign statement shall consist of:
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* Page 6 of 8
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a. The name, address and amount of the contribution for each person who
contributes greater than fifty dollars. In addition, the occupation of the contributor and the
name of the employer shall be provided for contributions of one hundred dollars or greater.
b. The total amount received from all persons who each contribute fifty dollars or
less.
c. The total expenditures made by each committee.
C. Filing. Each document required to be filed in this chapter shall be filed with the city clerk
during business hours, and elsewhere as may be required by the Government Code.
D. Filing Fees. Filing fees, if any, shall be established by council resolution.
E. Publication. On the Saturday preceding the election, the city clerk shall publish in a
newspaper of general circulation in the city of San Luis Obispo the following information for
each committee:
1. Total receipts;
2. Total expenditures;
3. Contributions; the name of each person contributing greater than fifty dollars;
4. The notice shall report of any candidate and/or committee that has failed to comply
by the required deadline with the campaign statement requirements pursuant to this section.
(Ord. 1483 § 1 (part), 2005: Ord. 1407 § 7, 2002; Ord. 1333 § 1 (part), 1998)
2.40.080 Campaign signs.
A. Severability. This section is a separate and severable provision of the election campaign
regulations.
B. Campaign Signs. Campaign signs shall not exceed three square feet per sign in
residential zones and ten square feet per sign in nonresidential zones, and shall be removed
no later than ten days following the election.
C. Definition. "Campaign sign" means a sign intended to draw attention to or communicate a
position on any issue, candidate, or measure in any national, state, local, college or university
campus election, the placement of which is in conformity with Section 15.40.300 (Prohibited
Signs); and which otherwise is not subject to regulation under Chapter 15.40 (Sign
Regulations).
D. Violation. Violation of this section shall be an infraction.
E. Enforcement. Enforcement of this section shall be pursuant to either Chapter 1.12
(General Penalty) or Chapter 1.24 (Administrative Code Enforcement Procedures) of the
Municipal Code. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 14, 2002)
2.40.090 Responsibilities of city clerk.
A. Duties. In addition to any other duties required of the city clerk under this chapter, the city
clerk shall:
1. Prescribe and furnish, without charge, appropriate forms for all campaign
statements, documents and reports required to be filed by this chapter.
2. Determine whether required statements and declarations have been filed and, if so,
whether they conform on their face with the requirements of this chapter.
3. Promptly notify all persons who have failed to file a statement in the form and at the
time required by this chapter.
4. Report, in writing, apparent violations of this chapter to the city attorney.
5. Place a timely advertisement(s) in a newspaper of general circulation in the city of
San Luis Obispo advising the public that a person(s) supporting or opposing a candidate(s) or
a measure(s) through newspaper or other advertisements may be subject to city reporting
requirements.
6. Compile and maintain a current log of all filed statements pertaining to each
reporting committee.
7. Provide an appropriate form, and prescribe a date for submission, which allows any
candidate to file a two-hundred-word ballot statement of qualifications and/or description of
his/her stand on issues. Such statement shall be on a form provided by the city clerk in
accordance with any other provision as set forth by Elections Code Section 13307 et seq.
8/-
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS*
A�' i �'` _� Page 7 of 8
ATTB. Additional Help or Services. The city clerk is authorized and directed to hire part-time
help, contract for services, and purchase supplies as the city clerk deems necessary to carry
out the additional duties imposed on the city clerk's office by this chapter. Within ninety days
after each election, the city clerk shall provide the council with a detailed report of the total
direct and indirect labor, materials and other costs incurred by the city clerk's office in
performing such additional duties. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 8, 2002; Ord. 1333
§ 1 (part), 1998)
2.40.100 Criminal misdemeanor actions.
Any person who violates any provision of this chapter is guilty of a misdemeanor. Any
person who causes any other person to violate any provision of this chapter, or who aids and
abets any-other person in the violation of any provision of this chapter, shall be liable under the
provisions of this section. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998)
2.40.110 Civil actions.
A. Any person who intentionally or negligently violates any provision of this chapter shall be
liable in a civil action brought by the city attorney or by a person residing within the city for an
amount not more than three times the amount of the unlawful contribution or expenditure.
B. If any person files an original city campaign statement after any deadline imposed by this
chapter, he or she shall pay, in addition to any other penalties provided for under this chapter,
the sum of one hundred dollars per day after the deadline until the statement or report is filed.
Liability may not be enforced if on an impartial basis the city clerk determines that the late filing
was not willful and that enforcement of the liability will not further the purposes of this chapter.
Liability shall not be waived if the supplemental city campaign statement is not filed within five
days of the deadline after the city clerk has sent specific written notice of the filing requirement.
In addition, the city clerk may assess any applicable fines in accordance with state law.
C. If two or more persons are responsible for any violation, they shall be jointly and severally
liable.
D. Any person, before filing a civil action pursuant to this section, shall first file with the city
attorney a written request for the city attorney to commence the action. The request shall
contain a statement of the grounds for believing a cause of action exists. The city attorney
shall respond within ten days after receipt of the request indicating whether he or she intends
to file a civil action. If the city attorney indicates in the affirmative and files a suit within thirty
days thereafter, no other action may be brought unless the action by the city attorney is
dismissed without prejudice.
E. In determining the amount of liability, the court may take into account the seriousness of
the violation and the degree of culpability of the defendant. If a judgment is entered against the
defendant or defendants in an action, the plaintiff shall receive fifty percent of the amount
recovered. The remaining fifty percent shall be deposited into the city treasury. In an action
brought by the city attorney, the entire amount shall be paid to the city treasury.
F. No civil action alleging a violation of any provision of this chapter shall be filed more than
four years after the date the violation occurred. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 9,
2002; Ord. 1333 § 1 (part), 1998)
2.40.120 Injunctive relief.
The city attorney or any person residing in the city may sue for injunctive relief to enjoin
violations or to compel compliance with the provisions of this chapter. (Ord. 1483 § 1 (part),
2005: Ord. 1333 § 1 (part), 1998)
2.40.130 Cost of litigation.
The court may award to a plaintiff or defendant who prevails in any action authorized by this
chapter his or her costs of litigation, including reasonable attomeys' fees; provided, however,
no costs of litigation or attorneys' fees shall be awarded against the city. (Ord. 1483 § 1 (part),
2005: Ord. 1333 § 1 (part), 1998)
2.40.140 Disqualification.
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* A�° Arf uJ v Page 8 of 8
In addition to any other penalties prescribed by law, if an official receives a contribution in
violation of this chapter, the official shall not be permitted to make, participate in making or in
any way attempt to use his or her official position to influence a governmental decision in which
the contributor has a financial interest. The provisions of Government Code Section 87100 et
seq. and the regulations of the Fair Political Practices Commission shall apply to
interpretations of this section. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998)
2.40.150 Construction of provisions.
A. This chapter shall be in addition to all other city and state laws applicable to municipal
elections. Unless the contrary is stated or clearly appears from the context, the definitions and
terms set forth in the Government Code shall govern the interpretations of terms used in this
chapter. This chapter shall be construed liberally in order to effectuate its purposes.
B. If any provision of this chapter, or the application thereof to any person or circumstance,
is held invalid, the validity of the remainder of the chapter and the applicability of such
provision to other persons and circumstances shall not be affected thereby. (Ord. 1483 § 1
(part), 2005: Ord. 1333 § 1 (part), 1998).
2.40.160 Council study committee.
A. Appointment. At least nine months prior to the expiration of this chapter, the council shall
appoint a committee of at least five citizens to study the efficacy of this chapter. The committee
shall complete its deliberations and report its findings to the city council on or before January
31, 2010. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 10, 2002: Ord. 1333 § 1 (part), 1998)
2.40.170 Expiration of provisions.
Unless readopted, this chapter shall expire on June 30, 2010. (Ord. 1483 § 1 (part), 2005:
Ord. 1407 § 11, 2002: Ord. 1333 § 1 (part), 1998)
� / - ll
ATTACHMENT a-
ORDINANCE NO. (2009 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING CHAPTER 2.40 OF THE MUNICIPAL CODE
WHEREAS, the Council of the City of San Luis Obispo conducted a public hearing in
the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on December
15, 2009, for the purpose of considering changes proposed to amend the Municipal Code.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. That the following sections of the San Luis Obispo Municipal Code
Chapter 2.40 are hereby amended to read as follows:
2.40.010 Title.
This chapter may be cited as the election campaign regulations of the city.
2.40.020 Purpose and intent.
A. It is the purpose and intent of this chapter:
1. To promote integrity, honesty and fairness in municipal election campaigns.
2. To prevent corruption, or the appearance of corruption, which results from the real
or imagined influence of large contributions on the conduct or actions of candidates elected to
office.
3. To ensure a level of discussion of public issues adequate for a viable campaign by
providing voters with the information necessary to make an assessment of each candidate or
measure before voting.
4. To require public disclosure of campaign contributions and expenditures made in
support of or in opposition to candidates or measures in municipal elections..
5. To place realistic and enforceable limits on the amounts persons may contribute in
municipal election campaigns.
6. To ensure that funds contributed to a campaign committee are used solely for
campaign purposes.
7. To provide full and fair enforcement of all the provisions of this chapter.
B. By enacting this chapter, the council does not intend to deprive or restrict any citizen of
the exercise of rights guaranteed under the United States Constitution and the California
Constitution.
C. The city council takes specific notice of the findings and declarations made in the
Political Reform Act and finds and declares them applicable to San Luis Obispo and a basis for
enacting this chapter.
D. It is the intent of this chapter to impose limits on the amount of money that may be
contributed to a candidate or controlled committee to achieve the purposes specified in this
section. This chapter is not intended, and shall not be construed, to establish any reporting, filing,
or procedural requirement in addition to, or different from, the Political Reform Act or the
ATTACHMENT c;z—
Ordinance No. (20OV)
Page 2
regulations adopted by the Fair Political Practices Commission (FPPC), except as specifically set
forth in sections 2.40.050 and 2.40.090 infra.
2.40.030 Definitions.
The terms used in this chapter shall have the same definitions as specified in the Political Reform
Act and FPPC regulations. In those cases where definitions in the Political Reform Act or FPPC
regulations contain a specific reference to any State election, candidate, or electoral criteria, the
definition shall be modified to reflect the municipal equivalent, or, in the absence of a municipal
equivalent,to delete the specific reference.
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 dollars ($200.00).
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 dollars ($200.00).
C. Contributions by Candidates. The provisions of subsections A and B of this section shall
not apply to contributions from a candidate to any controlled committee connected with that
candidate, nor to the expenditure, by the candidate, of his or her personal funds.
D. Anonymous Contributions. No candidate or controlled committee shall accept
anonymous contributions, with respect to any single election, which exceeds fifty dollars
($50.00). 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.
2.40.50 Election campaign accounts.
A. Campaign bank accounts. An individual who plans to run for a city elective office and
who plans to accept contributions and make campaign-related expenditures must set up a
campaign bank account at a financial institution with a branch located in the city of San Luis
Obispo.
B. Access to records by city clerk. The city clerk shall have full access at all reasonable
hours to the bank's records concerning all election campaign accounts.
C. Closing of Account. No later than ninety (90) days following the election, the campaign
treasurer shall close the election campaign account in accordance with State law.
D. Disbursement of Unexpended Campaign Funds. If, following the election, the final
campaign statement for any committee discloses an unexpended campaign surplus, the campaign
treasurer shall disburse the whole of the surplus to the city and/or a nonprofit charitable
organization (qualified for federal income tax exemption) of the candidate's or campaign
treasurer's choice. This shall be done no later than ninety (90) days after the election.
8 �-�3
ATTACHMENT
-
Ordinance No. (2009)
Page 3
Alternatively, surplus funds may be used by an unsuccessful candidate for a future election to the
same office, provided a form setting forth the intent to run for such office is filed no later than
ninety (90) days after the election.
2.40.060 Campaign statements.
A. Required Filing Schedule. Every campaign treasurer shall file with the city clerk:
1. Campaign statements as required by the provisions of the Government Code and in a
format acceptable to the city clerk.
2. Supplemental city campaign statements on forms provided by and in a format
acceptable to the city clerk at the same time campaign statements are filed as required by the
provisions of the Government Code.
B. Contents. Each state campaign statement filed shall contain the information required
under the provisions of the Government Code. Each supplemental city campaign statement shall
set forth the name, address and amount of the contribution for each person who contributes
greater than fifty dollars ($50.00), but less than one hundred dollars ($100.00), and the total
expenditures made by each committee.
C. Filing. Each document required to be filed in this chapter shall be filed with the city clerk
during business hours, and elsewhere as may be required by the Government Code.
D. Publication. The city clerk shall promptly, following receipt for filing, post a copy of each
campaign statement and supplemental city campaign statement on the City of San Luis Obispo's
website for public inspection, redacting personal information in accordance with State law. The
city clerk shall report on the website of any candidate and/or committee that has failed to comply
by the required deadline with the campaign statement requirements pursuant to this section or
state law. In addition, upon receipt of each campaign statement and supplemental city campaign
statement the city clerk shall timely cause to be published a display ad in a newspaper of general
circulation advising the public how and where to access copies of the filed campaign statements
and supplemental city campaign statements on the City of San Luis Obispo's website.
2.40.070 Campaign signs.
A. Severability. This section is a separate and severable provision of the election campaign
regulations.
B. Campaign Signs. Campaign signs shall not exceed three square feet per sign in residential
zones and ten square feet per sign in nonresidential zones, and shall be removed no later than ten
days following the election.
C. Definition. "Campaign sign" means a sign intended to draw attention to or communicate
a position on any issue, candidate, or measure in any national, state, local, college or university
campus election, the placement of which is in conformity with Section 15.40.300 (Prohibited
Signs); and which otherwise is not subject to regulation under Chapter 15.40 (Sign Regulations).
2.40.080 Responsibilities of city clerk.
A. Duties. In addition to any other duties required of the city clerk under this chapter, the city
clerk shall:
1. Prescribe and furnish, without charge, appropriate forms for all campaign
statements, documents and reports required to be filed by this chapter.
81 -1�
ATTACHMENT j
Ordinance No. (2009)
Page 4
2. Determine whether required statements and declarations have been filed and, if so,
whether they conform on their face with the requirements of this chapter.
3. Promptly notify all persons who have failed to file a statement in the form and at
the time required by this chapter.
4. Report, in writing, apparent violations of this chapter to the city attorney.
5. Promptly, following receipt for filing, post a copy of each campaign statement on
the City of San Luis Obispo's website for public inspection. The city clerk shall report on the
website of any candidate and/or committee that has failed to comply by the required deadline
with the campaign statement requirements pursuant to this section or state law. In addition, upon
receipt of each campaign statement and supplemental city campaign statement, the city clerk
shall timely cause such to be published in a display ad in a newspaper of general circulation
advising the public how and where to access copies of the filed campaign statements and
supplemental city campaign statements on the City of San Luis Obispo's website.
6. Compile and maintain a current log of all filed statements pertaining to each
reporting committee.
2.40.090 Criminal misdemeanor actions.
Any person who violates any provision of this chapter is guilty of a misdemeanor. Any person
who causes any other person to violate any provision of this chapter, or who aids and abets any
other person in the violation of any provision of this chapter, shall be liable under the provisions
of this section.
2.40.0100 Civil actions.
A. Any person who intentionally or negligently violates any provision of this chapter shall be
liable in a civil action brought by the city attorney or by a person residing within the city for an
amount not more than three times the amount of the unlawful contribution or expenditure.
B. If any person files an original city campaign statement after any deadline imposed by this
chapter, he or she shall pay, in addition to any other penalties provided for under this chapter, the
sum of one hundred dollars ($100.00) per day after the deadline until the statement or report is
filed. Liability may not be enforced if on an impartial basis the city clerk determines that the late
filing was not willful and that enforcement of the liability will not further the purposes of this
chapter. Liability shall not be waived if the supplemental city campaign statement is not filed
within five days of the deadline after the city clerk has sent specific written notice of the filing
requirement. In addition, the city clerk may assess any applicablefines in accordance with state
law.
C. If two or more persons are responsible for any violation, they shall be jointly and
severally liable.
D. Any person, before filing a civil action pursuant to this section, shall first file with the
city attorney a written request for the city attorney to commence the action. The request shall
contain a statement of the grounds for believing a cause of action exists. The city attorney shall
respond within ten days after receipt of the request indicating whether he or she intends to file a
civil action. If the city attorney indicates in the affirmative and files a suit within thirty days
thereafter, no other action may be brought unless the action by the city attorney is dismissed
without prejudice.
I?�1 -15
Ordinance No. (2009)' ATTACHMENT
Page 5
E. In determining the amount of liability, the court may take into account the seriousness of
the violation and the degree of culpability of the defendant. If a judgment is entered against the
defendant or defendants in an action, the plaintiff shall receive fifty percent (50%) of the amount
recovered. The remaining fifty percent (50%) shall be deposited into the city treasury. In an
action brought by the city attorney, the entire amount shall be paid to the city treasury.
F. No civil action alleging a violation of any provision of this chapter shall be filed more
than four years after the date the violation occurred.
2.40.110 Injunctive relief.
The city attorney or any person residing in the city may sue for injunctive relief to enjoin
violations or to compel compliance with the provisions of this chapter.
2.40.120 Cost of litigation.
The court may award to a plaintiff or defendant who prevails in any action authorized by this
chapter his or her costs of litigation, including reasonable attorneys' fees; provided, however, no
costs of litigation or attorneys' fees shall be awarded against the city.
2.40.130 Construction of provisions.
A. This chapter shall be in addition to all other city and state laws applicable to municipal
elections. Unless the contrary is stated or clearly appears from the context, the definitions and
terms set forth in the Government Code shall govern the interpretations of terms used in this
chapter. This chapter shall be construed liberally in order to effectuate its purposes.
B. If any provision of this chapter, or the application thereof to any person or circumstance,
is held invalid, the validity of the remainder of the chapter and the applicability of such provision
to other persons and circumstances shall not be affected thereby.
2.40.140 Council study committee.
A. Appointment. At least nine months prior to the expiration of this chapter, the council
shall appoint a committee of at least five citizens to study the efficacy of this chapter. The
committee shall complete its deliberations and report its findings to the city council on or before
January 31, 2014.
2.40.150 Expiration of provisions.
Unless readopted, this chapter shall expire on June 30, 2014.
SECTION 2. 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 Tribune, 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.
Ordinance No. (2009)
`,TTACHMENT
Page 6
INTRODUCED on the day of 2009, AND FINALLY
ADOPTED by the Council of the City of San Luis Obispo on the day of January 2010, on
the following vote:
AYES:
NOES:
ABSENT:
Mayor David F. Romero
ATTEST:
Elaina Caro
City Clerk
APPROVED AS TO FORM:
Jo an P. Lowell
City Attorney
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From: Lowell, Jonathan P -- --�C5HR DIR;
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Sent: Tuesday, December 15, 2009 5:11 PM
0.I-7-y �GlZ
To: Ashbaugh, John; Cano, Elaina; 'John Ewan 0ewan@alteryourenergy.com)'
Cc: Hampian, Ken; 'Katie Lichtig'
Subject: RE: Item B!for tonight's agenda-Campaign Regulations
John et al.,
Below I have responded to John Ashbaugh's comments. My comments are underlined and in italics, and are
interspersed into John's email below. This email will be redfiled prior to the Council meeting.
Jonathan
1. I think the committee has done great work so far in simplifying these regulations. They did not, however, deal
with one big issue that came up in the 2006 campaign cycle: The use of a "partnership"to obscure the identity
of individual contributors to campaign ballot issues. Is this matter being dealt with at a State level, and if so, is it
being done to our satisfaction? If not, should we deal with it?
The City's regulations adopt the state law and regulations by reference. This is a matter dealt with in the FPPC
Regulations and CampaignDisclosure Manual_Under the state regulations a contribution from a partnership is
a contribution from a person. However, contributions from certain combinations of individuals and entities must
be added together to determine the total amount that will be treated as received from a single contributor. If an
individual makes a contribution, and_a second contribution is received from an entity_in which that same
individual directs and controls the entity's contributions, then the contributions will be aggregated. !am not
aware of the situation in 2006 that you are referring to, but the State regulations should provide usdance
and they were updated in 2007.
2. On p. 61-2, the list of provisions that are being changed: Items 5 and 6 do not appear to be changes-these
requirements exist in the current campaign regs, no? (Item 5, which describes the City's supplemental form,
seems to be the same, although I understand that there is a change proposed that would eliminate the
separate disclosureof'contributions of$100 or more-these would only be reported on the State's forms).
Yes,_items 5 and 6 indicated in the staff report_as changes really_are not,-the provisions were simplified and moved
around within the ordinance, but not changed substantively. Yes, contributions of$100 or more will only require
use of the state form under the proposed ordinance.
3. That list of changes on p. B1-2 should also include three items that I noted, as follows:
The amount of changes beingmade, especially in tight of the fact that they encompass eliminatin _provisions that
are duplicative of state law overwhelmed_the track changes feature of our word processingprogram resu/ting
in an unreadable legislative draft document. There are other minor changes being recommended that weren't
called out specifically in the staff report.
a. The remedies for violations of campaign sign regulations, which currently provide for an infraction, would
be replaced by the general remedies for violations of this ordinance that are chargeable as a
misdemeanor. (New section 2.40-070). Do we really want to do this? I'm OK with infractions, myself...
(wait, that didn't come out right-I'd settle for an infraction remedy, as we now specify).
The current City regulations make a violation of this chapter .a misdemeanor. The proposed regulations do the
same. The City_Attomey way has the discretion to prosecute a violation as an infraction or drop the
charge to an infraction_
b. The new regulations permit an unsuccessful candidate to retain surplus funds in a campaign account, for
later use in a campaign for the same office. This is not possible under the current ordinance. (Note: If this
12/15/2009
1
new permission to retain funds is a good idea, why do we want to limit those funds for use only on a campaign
for the"same:office"?Why couldn't we, for example, enable an unsuccessful candidate for Mayor to retain
surplus funds in a campaign account for a Council office? Or vice versa?)
The Citizen Advisory Committee discussed this issue for quite awhilelssues considered were:incumbents
have an advantage in running for localofFce, by_a la ing an unsuccessful candidate to use funds to fun for
the same office again, it allows for serious challengers to try_again and perhaps result in new blood in the
position at the next election cycle, however, it was not supported by a majority that such funds should be
used for a different office, as a change in the rags should only be warranted if it_benefits the community
not simply_to-assist an once seeker, especially_one clear which office he or she realty wishes to
pursue. Finally State law allows funds to be used to run again for the same office, if a candidate declares
within 90 days after losing the election the first time.
c. The new regulations appear to omit current Section 2.40.050 (c) (6): "No person, candidate, or candidate's
committee shall make or accept any contribution greater than $50 after 5 pm Monday, 8 days before the ...
election..."Was this omission intentional? Is it required that we eliminate it to conform to State law?
A majority of the committee felt that the limitation on campaign contributions at the end of the election cycle is
no longer necessary
today, as opposed to in the past,_since many_v_oters now cast their votes absentee and
well in advance of election day much more information 's now disseminated on the Internet, and the
committee is proposing_(and staff concurs, as it did four years ago) that the City not print a list of all
contributors and there contributions in the newspaper the weekend prior to election day. The proposed
reputations direct the City_C/erk to timely_post cm the lntemet all campaign statements fled by_cand ddates_so,
the same information will still be available for the public, and more frequently_(There are three separate filings
made prior to an election, with the last one due two weeks before election day_.) A newspaper ad will still be
published advising that the information can be viewed on the lntemet or at City Hall. However, this will result in
an ap�oroximate$3500 savings per election. The old regulation regarding no contributions within 8 days of the
election was crafted to allow time to redact certain data, reformat it,-and submit it to the newspaper in time to
meet the newspapers printing deadline for the Saturday_newspaperUnder the proposed regulationsthis will
no longer be necessary_
4. On the list of items that are recommended to stay_the_same:
a. Under item 1, the existing $200 limit per individual applies only to candidate campaigns; for ballot
measures, it is$1,000. (By the way, I know I probably shouldn't ask this, but: Is that limit on contributions
for ballot measures constitutionally permissible?)
The City is prohibited under Federal and State law from regulating contribution_s_to ballot an campaigns
Also on this item, I wanted to ask whether the committee specifically decided to keep the limit at$200 for
individual contributions to candidates, or if they considered raising that limit to$250?Wouldn't that limit
more closely reflect a COLA for the five years since this ordinance was last reviewed? Personally, I would
be comfortable with raising the limit to$250, but I'd like to know whether the Committee considered and
rejected such a suggestion. If so, I'm less comfortable with this idea.
The committee specifically recommends that the level remain at$2.00;Mr.. Ewan may_prov_ide y_ou
additional comment on this subject at the meeting_tonight.
b. Under item 2 on this list, the committee recommends that campaign accounts be maintained at a local
branch bank. The problem that is not addressed in this recommendation-but which might fall under the
State's Political Reform law-is the situation that came up with my own campaign last year: Much of my
fund-raising was done by the Internet using a Pay Pal account. In the future, it's likely that MOST
campaign fund-raising will utilize Internet transactions that may or may not be specifically linked to a"local
bank"campaign account. The new regulations should address this reality: Campaign accounts that enable
fund-raising (or expenditures) on the Internet should be permitted, but subject to some reasonable
requirement that meets the City's standards for transparency.
The committee identified this issue early on. However, the State regulations address contributions by-Appy-Fa-1.
Yet, at the same time. campaigns still have need for banks to conduct some of their business. Under the
currenf_and proposed regulations, the City has the ability to conduct an audit of a campaign s books, thus,,
if necessary, the City Clerk and City Attorney can gain access to Pay Pal records_The committee expects
12/15/2009
to consider this issue again in 2013_
5. Finally, It appears that we've deleted the existing requirement that a candidate appoint a campaign treasurer.
I'm not sure that I oppose that, but I think it should be acknowledged. Is there any down side to that? I know
that in some cases, candidates"go solo," but doesn't that make a lot more work for our City Clerk? (Or, does
such a requirement now exist in the State Political Reform Act?)
The committee sought to simplify the City regulations and make them follow State law and regulations in most
respects. State law does not specifically require that a candidate appoint a campaign
-but most
candidates do. An uninformed candidate or campaign treasurer will take a bit more of the City Clerk's time.
I would note that the ordinance appears to be very flexible as to the need to submit forms on paper, if I interpret
2.40.060 (A) (1) correctly: "Campaign statements (shall be filed)... in a format acceptable to the city clerk." I would
hope that we can permit candidates and campaign committees to file forms digitally in the future, and bypass the
need for paper campaign statements altogether.
You are correct, the s ep cific purpose of that/anauage was to allow for that very ffexibility. Still, State regulations
require certain forms be fled with an original signature on them.
I know that it might be difficult to reply in writing to all of the above in time for tonight's meeting; if so, an oral review
is OK. We may have to revisit our ordinance soon, too, in order to conform with the upcoming U.S. Supreme Court
ruling in the Citizens United case, for which they just heard arguments in September.
Yes we will monitor this case. If revisions to the ordinance are warranted, staff will advise you.
Jonathan P. Lowell
City Attorney
990 Palm Street
San Luis Obispo, California 93401
(805) 781-7140
jlowell@slocity.org
CONFIDENTIALITY NOTE:This e-mail message contains work product or other information which is privileged,
confidential and/or protected from disclosure.The information is intended only for the use of the individual or entity named
above.If you think that you have received this message in error,please e-mail or phone the sender. If you are not the intended
recipient any dissemination,distribution or copying is strictly prohibited.
12/15/2009
r ;
council memouanaum
Fc-ftyofsan Lias Obispo
December 15, 2009
TO: Mayor Romero & Members of the City Council
FROM: Elaina Cano, City Clerk
VIA: Ken Hampian, CAO
SUBJECT: Council Correspondence to Item 61 — Election Campaign Regulations
Attached is an email from Council Member John Ashbaugh. Staff is working on providing
additional information, which will be provided either in writing or verbally at tonight's meeting.
G:\City Clerk Agenda Reports-General Correspondence\12-15-09 Red File-Bl Campaign Regs.doc
rr'l-T� COPY
CUNCIL 11 CDD DIR age 1 of 2
•D FILE SIN DIR
aFIRE CHIEF
MEETING AGENDA UTATTORNEY 2-PW DIR
Cano, Elaina DATE � �s ITEM #_ B I n _1 nEPR H°ADS p�—R��p RCHF
nzr > IL-VIR
From: Ashbaugh, John -�1z� 2-HR DO
Sent: Tuesday, December 15, 2009 1:11 PM A)Ok)r7/bE5 _.
To: Cano, Elaina; Lowell, Jonathan P; John Ewan (jewan@alteryourenergy.comYCYy '�
Cc: Hampian, Ken; Katie Lichtig
Subject: Item B!for tonight's agenda -Campaign Regulations.
Here are a few concerns that arose in my review of the staff report for this item last evening—some of which we
discussed at agenda review this morning.
1. I think the committee has done great work so far in simplifying these regulations. They did not, however, deal
with one big issue that came up in the 2006 campaign cycler The use of a"partnership"to obscure the identity
of individual contributors to campaign ballot issues. Is this matter being dealt with at a State level, and if so, is
it being done to our satisfaction? If not, should we deal with it?
2. On p. B1-2, the list of provisions that are being chaffed: Items 5 and 6 do not appear to be changes—these
requirements exist in the current campaign reps, no?(Item 5,which describes the City's supplemental form,
seems to be the same, although I understand that there is a change proposed that would eliminate the
separate disclosure of contributions of$100 or more—these would only be reported on the State's forms).
3. That list of changes on p. B1-2 should also include three items that I noted, as follows:
a. The remedies for violations of campaign sign regulations, which currently provide for an infraction, would
be replaced by the general remedies for violations of this ordinance that are chargeable as a
misdemeanor. (New section 2.40-070). Do we really want to do this? I'm OK with infractions, myself...
(wait, that didn't come out right—I'd settle for an infraction remedy, as we now specify).
b. The new regulations permit an unsuccessful candidate to retain surplus funds in a campaign account, for
later use in a campaign for the same office. This is not possible under the current ordinance. (Note: If this
new permission to retain funds is a good idea, why do we want to limit those funds for use only on a
campaign for the"same office"?Why couldn't we, for example, enable an unsuccessful candidate for
Mayor to retain surplus funds in a campaign account for a Council office? Or vice versa?)
c. The new regulations appear to omit current Section 2.40.050 (c) (6): "No person, candidate, or
candidate's committee shall make or accept any contribution greater than$50 after 5 pm Monday, 8 days
before the ... election..."Was this omission intentional? Is it required that we eliminate it to conform to
State law?
4. On the list of items that are recommended to stay the same:
a. Under item 1, the existing$200 limit per individual applies only to candidate campaigns; for ballot
measures, it is$1,000. (By the way, I know I probably shouldn't ask this, but: Is that limit on contributions
for ballot measures constitutionally permissible?)
Also on this item, I wanted to ask whether the committee specifically decided to keep the limit at$200 for
individual contributions to candidates, or if they considered raising that limit to$250?Wouldn't that limit
more closely reflect a COLA for the five years since this ordinance was last reviewed? Personally, I would
be comfortable with raising the limit to$250, but I'd like to know whether the Committee considered and
rejected such a suggestion. If so, I'm less comfortable with this idea.
b. Under item 2 on this list, the committee recommends that campaign accounts be maintained at a local
branch bank The problem that is not addressed in this recommendation—but which might fall under the
State's Political Reform law—is the situation that came up with my own campaign last year. Much of my
fund-raising was done by the Internet using a Pay Pal account. In the future, it's likely that MOST
campaign fund-raising will utilize Internet transactions that may or may not be specifically linked to a
"local bank"campaign account The new regulations should address this reality: Campaign accounts that
enable fund-raising (or expenditures)on the Internet should be permitted, but subject to some reasonable
requirement that meets the City's standards for transparency.
5. Finally, It appears that we've deleted the existing requirement that a candidate appoint a campaign treasurer.
I'm not sure that I oppose that, but I think it should be acknowledged. Is there any down side to that? I know
that in some cases, candidates"go solo," but doesn't that make a lot more work for our City Clerk? (Or, does
12/15/2009
Page z or z
such a requirement now exist in the State Political Reform Act?)
I would note that the ordinance appears to be very flexible as to the need to submit forms on a er, if I interpret
2.40.060(A) (1)correctly: "Campaign statements(shall be filed)... in a format acceptable to the city clerk." I would
hope that we can permit candidates and campaign committees to file forms digitally in the future, and bypass the
need for paper campaign statements altogether.
I know that it might be difficult to reply in writing to all of the above in time for tonight's meeting; if so, an oral
review is OK. We may have to revisit our ordinance soon, too, in order to conform with the upcoming U.S.
Supreme Court ruling in the Citizens United case, for which they just heard arguments in September.
John B. Ashbaugh
San Luis Obispo City Council
12/15/2009