HomeMy WebLinkAboutAgenda Statement 1988/10/11 Item 13
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COUNCIL AGENDA STATEMENT
Item /-]
Meeting Date 10/11/88
ITEM TITLE:
Ordinance 2298 Adding d1apter 2.52 to the Chula Vista
Municipal Cbde Regulating Campaign Cbntributions
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City Attorney~>~
SUBMITTED BY:
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(4/5ths Vote: Yes_No~)
The proposed ordinance would initiate a $250 campaign contribution limitation
in City elections and would allow contributions from individuals only.
RECOMMENDATION: Place the ordinance on its first reading
BOARDS/CG1MISSIONS RECG1MENDATIOO: The ordinance was unanimoosly approved
by the Charter Review Cbmmittee (5-0).
DISCUSSION:
At the City Cbuncil's request, the Charter Review Oornrnittee studied the issues
involved with campaign contribution limitation ordinances and has prepared a
~mmended ordinance. There is a general Charter amendment on the
~~rnber 8, 1988 that would require the City to have a campaign contribution
limitation ordinance. The Charter Review Committee has prepared an ordinance
that would implement that general direction. The ordinance is being brought
to Oouncil so that Cbuncil will have an opportunity to review it prior to the
election. This would allow the voters to know that the City intends to do if
the general Charter amendment is passed. Sarre of the key provisions are
highlighted below.
PURPOSE (~2.52.020)
A major concern addressed by this ordinance is that some individuals and
organizations have a disproportionate influence on the election of candidates
for City offices because of their financial strength. This can lead to a
public perception that decisions of the City Cbuncil are improperly influenced
by rronetary contribJtions. One of the purposes of this ordinance is to help
equalize the influence of all ci tizens of the City of d1ula Vista and thereby
protect the integrity of the electoral process.
CONrRIBUTION LIMITATION (~2.52.050)
The key feature of the ordinance is a $250 campaign contribution limitation.
Before deciding on this amount, the Charter Review Cbmmittee reviewed the
ordinances of all those cities in San Diego County and the League Model
Ordinance along with Proposition 73. The League recommended a limit of
~ween $50 to $500. Proposition 73 limits contribJtions to between $1,000 to
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Agenda Item No.
Meeting Date: 10/11/88
Page 'TWo
$5,000 per year depending on whether you are an individual or other defined
entity. The Cbmmittee decided upon $250 because it is substantial enough to
allow a generous contribution but not so high that it would cause concern
abwt irrproper influence. The $250 limit also seemed advisable because it is
a number with which public officials have become familiar in working with the
Political Reform Act. Councilmembers who serve on outside boards and
commissions are prohibited from participating in decisions affecting
contributors who have given them $250 within the last year. Councilmembers
are also prohibited from participating in any decision that would have an
effect on a source of income of $250 within the past year.
PROHIBITION ON BUSINESS CONTRIBUTIONS (~2.52.060)
After rruch discussion, the Cbmmittee decided to recommend that contrirotions
from rusinesses and other organizations such as Political Action Cbmmittees
(PACS) be prohibited. The Cbrrunittee felt that allowing business and PAC
contributions would be inconsistent with its purposes of equalizing the
influence of contributors and increasing the importance of small
contributions. This does not disenfranchise rosiness. It merely requires
that a businessman contribute as an individual, the same way that everyone
else does.
eecond reason supporting this prohibition is that it makes the ordinance
ier to enforce. The City will not have to investigate issues involving
interlocking rusinesses to determine if one entity is actually making numerous
contributions. This is one of the reasons that the City of San Diego and the
City of Poway chose to ban business contributions.
LOANS (~2.52.090)
Loans that a candidate makes to his own campaign would be subject to the same
$250 contribution limitation that applies to other contributors. It was felt
that a loan is different from an expenditure (which is not limited) because
when a candidate expends money on his or her own behalf, there is no
expectation that he or she will get the money back. Loans from a commercial
lending institution at normal market rates, which will be paid back by the
candidate, are not limited.
TRANSFERS (52.52.120)
The candidate would not be allowed to transfer funds to any other candidate or
to use them to run for any non-City office. A candidate would be able to use
funds raised in a City Council election to run for re-election or to run for
l1ayor. As a corollary to this, the r1ayor would be able to use funds raised to
campaign for that office in a subsequent campaign for a City Council seat.
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Agenda Item No.
Meeting Date: 10/11/88
Page Three
ENFORCEMENT
It is recommended that the City use a Special Counsel to enforce the ordinance
in order to avoid the appearance of favoritism. Since the City Attorney works
for the City Cbuncil, it could lead to the appearance that he or she is trying
to protect incumbents when an action is taken against challengers. Special
Cbunsel would be appointed six months prior to the election and wc:uld be
authorized to bring both civil and criminal enforcement actions.
FISCAL IMPAcr: Uncertain. There will be some costs associated with
enforcement by Special Cbunsel but the amount would depend on the number of
complaints. This cost will be offset to some extent by the forfeiture of
excess contributions.
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Government Code Section 82015
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'if I 82015. Contribution
~ "Contribution" means a payment, a forgiveness of a loan, a payment of a
~Joan 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
}';Jrom the surrounding circumstances that it is not made for political purposes.
~An expenditure made at the behest of a candidate, committee or elected
"j'Officer is a contribution to the candidate, committee or elected officer unless
~~Iull and adequate consideration is received for making the expenditure.
-If' The term "contribution" includes the purchase of tickets for events such as
~Clinners, luncheons, rallies and similar fundraising events; the candidate's
ii'own money or property used on behalf of his or her candidacy; 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
~~~tended on an equal basis to all candidates for the same office; the payment
i_.. compensation by any person for the personal services or expenses of any
er 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 an)1hing of value
, ived by a committee from another committee, unless full and adequate
COnsideration is received.
'-'The term "contribution" does not include amounts received pursuant to an
. orceable promise to the extent such amounts have been previously report-
as a contribution. However, the fact that such amounts have been
ived shall be indicated in the appropriate campaign statement.
The term "contribution" does not include a payment made by an occupant
\ ~ a home or office for costs related to any meeting or fundraising event held
. the occupant's home or office if the costs for the meeting or fundraising
ent are five hundred dollars ($500) or less.
Notwithstanding the foregoing definition of "contribution," the term does
not include volunteer 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.
(Added by Initiative Measure approved by the electors June 4, 1974, df. Jan. 7, 1975.
Amended by Stats.1980, c. 289, p. 601, ~ 1.4.)
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