HomeMy WebLinkAbout23 - Campaign Contribution OrdinanceCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 23
June 23, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David R. Hunt, City Attorney
ext. 3131, dhunt @city.newport- beach.ca.us
SUBJECT. AMENDMENT OF CAMPAIGN CONTRIBUTION ORDINANCE, AS
REVISED, TO INCREASE THE LIMIT ON INDIVIDUAL CAMPAIGN
CONTRIBUTIONS TO $1,000, AND PROVIDE FOR ADJUSTMENT OF
CONTRIBUTION LIMITS BASED ON THE CONSUMER PRICE INDEX
ISSUE:
Should the Council amend the campaign contribution ordinance, as revised, in order to raise
individual campaign contribution limits from the current $500 to $1,000 per person, and provide for
adjustment of contribution limits based on the Consumer Price Index (CPI)?
RECOMMENDATION:
Approve an ordinance amending Chapter 1.25 of the Municipal Code, as revised, and pass
to second reading on July 14, 2009.
DISCUSSION:
Statutory Background:
The Political Reform Act of 1974 (codified in Title 9 of the California Government Code) sets forth
campaign contribution limits for individuals, different types of committees and aggregates of
individuals and affiliated entities. Specific limits are set forth in Government Code Sections 5301,
5302, and 5303 for contributions to candidates for state office (the State Legislature), and the
Governor and other statewide elected offices (Lieutenant Governor, Attorney General, Insurance
Commissioner, Controller, Secretary of State, Treasurer, Superintendant of Public Instruction, and
Board of Equalization, per the FPPC website.) For individual contributors, campaign contribution
limits currently range from $3,200 (for a state legislative candidate) to $21,200 (for Governor.)
It is well established that the City has the authority to enact limits on campaign contributions for
elections to local elective office within the City. California Election Code Section 10202 provides
that "[a] city may, by ordinance or resolution, limit campaign contributions in municipal elections."
Government Code Section 81013 states that local agencies may impose requirements in addition
to those imposed by the act on any person, so long as the requirements do not prevent that person
from complying with applicable provisions of the Political Reform Act. Government Code Section
Amendment to Campaign Contribution Ordinance
June 23, 2009
Page 2
85703 also provides, `Nothing in this act shall nullify contribution limitations or prohibitions of any
local jurisdiction that apply to elections for local elective office, except that those provisions may not
conflict with the provisions of Section 85312." (Section 85312 pertains to payments for
communication to members of organizations.)
Increasing Individual Contributions to $1.000
Specific limits on candidates for local office are not listed in the Political Reform Act. The FPPC
website notes that nothing in Proposition 34 nullifies local contribution limits. The FPPC website
also identifies a number of the provisions of the Act which do apply to local candidates, including
Sections 85703, 85700, 85312, 85500(b), 855501, 85919, 84204(b), 84305.6, 84511, 84501-
84510, 91005.5 and 85701. None of these sections limit the City s ability to impose or increase its
individual campaign contribution limits to the level requested, or to enact legislation providing for
future CPI increases.
"Limits on contributions to political campaigns are permissible under the First Amendment as long
as the Government demonstrates that the limits are closely drawn to match a sufficiently important
government interest." Citizens for Clean Govemment v. City of San Diego, 474 F.3d 647, 650 (911'
Cir. 2007), quoting Randall v. Sorrell, 126 S.Ct. 2479, 2491 (2006) (internal quotation marks
omitted.) The purpose and findings listed in existing NBMC Section 1.25.010 are sufficient to
demonstrate important government interests (avoiding corruption, or appearance thereof;
encouraging fundraising from a broader range or persons). Campaign contribution limits are
restrictions that are closely drawn to further those interests.
Raising the contribution limit to $1,000 per individual contributor does not appear to undermine the
City's stated interests. The City's current individual campaign contribution limit of $500 was
adopted in 1995. Costs associated with political campaigns have increased over the intervening
14 years, to the extent that an individual contribution of $1,000 appears no more likely to result in
corruption, the appearance of corruption, or limiting fundraising efforts to a narrow range of
contributors than a contribution of $500 would have created in 1995. -
At least two other cities reviewed (Torrance and Santa Ana) had individual campaign contribution
limits of $1,000. Other cities reviewed included Dana Point ($450), Irvine ($300) and Huntington
Beach ($500.)
Providing for Adjustments to Contribution Limits
Proposition 34 added Section 83124 to the Political Reform Act. Cal. Gov. Code Section 83124
requires that contribution and expenditure limits for elected state offices be increased or decreased
in accordance with changes in the Consumer Price Index in January of every odd - numbered year.
For elections to state office, adjustments shall be rounded to the nearest one hundred dollars
($100) for limitations on contributions, and to the nearest one thousand dollars ($1,000) for
limitations on expenditures.
Although many cities in Orange County have enacted provisions tying adjustments in individual
local campaign contribution limits to the Consumer Price Index (CPI), the Newport Beach Municipal
Code currently contains no provision for increases or decreases tied to the CPI. To allow for such
fluctuations in costs, proposed language is provided in the attached redline of the current
ordinance.
Amendment to Campaign Contribution Ordinance
June 23, 2009
Page 3
Other requirements
Government Code Section 81009.5 requires any local government that enacts, amends or repeals
any ordinance or other provision of law affecting campaign contributions and expenditures to file a
copy of the action with the Fair Political Practices Commission. If adopted, the resolution adopting
this amendment will need to be filed with the FPPC.
Recommendation — Proposed changes to NBMC Chapter 1.25 are reflected in proposed
Ordinance No. 2009 - attached hereto. It increases the limit for individual campaign
contributions, and for the solicitation and acceptance of such individual contributions, to $1,000. It
also provides two options for tying the limit to fluctuations in the CPI; one is very speck and
provides for computation of individual years and rounding the total adjusted amount for a two year
period, and one is much simpler and provides for increases or decreases in the CPI within an
entire two -year period. Another variable to consider is whether the Council wishes to approve the
adjusted limits by Council resolution, or whether the fluctuation should be handled entirely at the
staff level. Language providing for both options is provided in the attachment.
We recommend the Council consider the options presented in the attached proposed
Ordinance 2009 -_, select the options it wishes to adopt, and direct staff to prepare the
ordinance as revised, to be introduced for first reading and scheduled for second reading
and adoption of the ordinance at the July 7, 2009 City Council meeting.
Environmental Review: This is not a project under CEQA.
Public Notice: This agenda item has been noticed according to the Ralph M. Brown Act (72
hours in advance of the public meeting at which the City Council considers the item). It was
posted at City Hall and on the City's website.
Funding Availability; No funding is necessary.
Alternatives: The Council may choose not to take the action recommended or instruct staff
to consider alternatives for Council's consideration.
Pre ared by:
David R. Hunt,
City Attorney
Attachments: Revised Ordinance Amending NBMC Chapter 1.25
ORDINANCE NO. 2009-
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH, CALIFORNIA,
AMENDING CHAPTER 1.25 TO NEWPORT BEACH
MUNICIPAL CODE PERTAINING TO MUNICIPAL
ELECTION CAMPAIGN CONTRIBUTION AND
EXPENDITURE CONTROL
NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY
ORDAINS as follows:
SECTION 1: Chapter 1.25 of Newport Beach Municipal Code is hereby amended to read as
follows:
Sections:
1.25.010
Purpose and Findings.
1.25.015
Intent.
1.25.020
Definitions.
1.25.030
Campaign Contributions -- Limitations.
1.25.040
Penalties.
1.25.050
Severability.
1.25.010
Purpose and Findings.
The City Council of the City of Newport Beach finds and declares as follows:
A. The primary purpose of the ordinance codified in this chapter is 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.
B. The limits on contributions to candidates and controlled committees imposed by this
chapter will encourage candidates and their supporters to raise funds from a greater
number of persons than would otherwise involve themselves in the political process.
C. Contribution limits encourage persons to expend funds that would otherwise be
contributed to candidates on direct political expression which will., broaden the
discussion and debate on issues of importance to the electorate.
D. These contribution limits will not reduce the total amount of money potentially available,
or used, to promote expression in the context of a political campaign, but will increase
the amount of independent expenditures and encourage the dissemination of political
expression through a wider variety of media sources.
1
E. Local campaign contribution limits are municipal affairs and this chapter is authorized
pursuant to the laws and Constitution of the State of California, as well as the Charter of
the City of Newport Beach.
F. The contribution limitations imposed by this chapter are consistent with the spirit, intent
and letter of the Political Reform Act of 1974.
1.25.015 Intent.
The intent of this chapter is to impose limits on the amount of money that may be contributed
to a candidate or controlled committee to achieve the purposes specified in Section 1.25.010.
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
regulations adopted by the Fair Political Practices Commission (FPPC).
1.25.020 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.
1.25.030 Campaign Contributions — Limitations.
A. Contributions by Persons to Candidates or Controlled Committee(s). No person shall
make any contribution to a candidate and /or the candidate's controlled committee(s),
with respect to any single election, which would cause the total amount contributed by
such person to the candidate and the candidate's controlled committee(s), when
combined, to exceed five4Hmdnedone thousand dollars ($6W J1 000.00).
B. Acceptance or Solicitation by Candidates or Controlled Committee(s). 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 the candidate's controlled committee(s), when combined,
to exceed the sum of five4wndredone thousand dollars ($6W $j 000.00).
C. Contributions by Candidates. The provisions of subsections (A) and (B) shall not apply
to contributions from a candidate to his or her controlled committee(s) nor to the
expenditure, by the candidate, of his or her personal funds.
D. Contributions to Committees. Contributions made to any person or a committee, and
not to a candidate or controlled committee, shall not be considered as contributions to
the candidate or controlled committee notwithstanding the fact that such person or
committee supports the candidate or uses the contribution with a view to bringing about
the nomination or election of the candidate.
2
E. Anonymous Contributions. No candidate or controlled committee shall accept
anonymous contributions, with respect to any single election, which would cause the
total amount of anonymous contributions received by the candidate and the candidate's
controlled committee(s), when combined, to exceed two hundred dollars ($200.00).
Subject to the provisions of State law, in the event any candidate or controlled
committee(s) receive(s) an anonymous contribution that would, if accepted in whole or
in part, result in a violation of this subsection, the candidate or controlled committee(s)
shall promptly pay that sum to the City for deposit into the general fund to be used to
defray the costs of municipal elections.
F. Adiustment for Cost of Living Changes.
1. Adjustment. The campaign contribution limits and contribution acceptance and
solicitation limits set forth in Subsections 1.25.030(A) and (B) shall be adiusted in February at
two (2) year intervals beginning in 2011 by the City Clerk to reflect annual changes in the
Consumer Price Index (CPI) over the previous two (2) year period. The City Clerk shall use
the annual percent change in the Consumer Price Index for All Urban Consumers (CPI -U) in
the selected local area of Los Angeles — Riverside — Orange County, California to determine
the appropriate rate of increase or decrease. The City Clerk shall compute the adiustment for
each year separately, adding the adjustment for each year to the prior year's limit and then
rounding the total adjusted amount:forthe two (2) year period. The new limit representing the
rounded total adjustments for the previous two U year period shall be presented to the Citv
Council for approval by resolution.
2. Rounding of Adjusted Amounts. If the total adiusted limit under Subsections
1.25.030(A) and (B) for the two (2) year period ends in a digit between one and four (4), then
the limit shall be rounded down to the next lowest multiple of ten (10). If the final adjusted
limit for the two (2) year period ends in a digit between five (5) and nine (9). then the limit
shall be rounded up to the next highest multiple of ten (10).
(Alternate wording of Section F. for simplified approach allowing the Clerk to round to
the nearest $10 every two years.; Does not bring back for Council resolution): Fora
simpler approach, instead of two separate section under Subsection F— end current section 1 at"... Orange
County. California to determine the appropriate rate of increase or decrease Adjustments made pursuant to
this subsection shall be rounded to the nearest ten dollars (SSOX
1.25.040 Penalties.
A. Any person who knowingly and willfully violates the provisions of Section 1.25.030 is
guilty of a misdemeanor.
B. In addition to any criminal penalty, if, after a candidate is elected, the candidate is
convicted of a violation of the provisions of Section 1.25.030, the election to office of
such candidate shall be void and the office shall become vacant as of the date of
conviction or on the date upon which the candidate would otherwise take office,
whichever occurs later. In such event, the vacancy shall be filled in accordance with the
provisions of 403 of the City Charter. If a candidate is convicted of a violation of Section
1.25.030 at any time prior to the election of the candidate, the candidacy shall be
terminated immediately and the candidate shall no longer be eligible for election.
C. The City Attorney shall have the power to enforce this chapter only to the extent that
office has authority to enforce provisions of the Political Reform Act. In the event that
the City Attorney is not authorized to enforce the provisions of this chapter, the District
Attorney shall generally function as criminal prosecutor and the City Council shall have
the authority to appoint a special counsel to enforce civil penalties as provided in
subsection (B), or to function as the criminal prosecutor in the event that the District
Attorney is unable or unwilling to do so.
1.25.050 Severability.
If any provision of the ordinance codified in this chapter, or the application of such provision to
any person or circumstances, shall be held invalid, the remainder of the ordinance codified in
this chapter to the extent it can be given effect, or the application of such provision to persons
or circumstances other than those to which it is held invalid, shall not be affected thereby, and
to this end the provisions of the ordinance codified in this chapter are severable.
SECTION: 2: That if any section, subsection, sentence, clause or phrase of this Ordinance is for
any reason held to be invalid or unconstitutional, such decision shall not affect the validity or
constitutionality of the remaining portions of this Ordinance. The City Council hereby declares,
that it would have passed this Ordinance and each section, subsection, clause or phrase hereof,
irrespective of the fact that any one to more sections, subsections, sentences, clauses and
phrases be declared unconstitutional.
SECTION 3: The Mayor shall sign and the City Clerk shall attest to the passage of this
Ordinance. The City Clerk shall cause the same to be published once in the official newspaper
within fifteen (15) days after its adoption.
This Ordinance was introduced at a regular meeting of the City Council of the City of Newport
Beach held on the day of , 2009, and adopted on the day of
. 2009, by the following vote, to -wit:
AYES, COUNCILMEMBERS
4
NOES, COUNCILMEMBERS
ABSENT, COUNCILMEMBERS
ZT.We7
Edward Selich
ATTEST:
Leilani Brown, City Clerk
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
By
David R. Hunt, City Attorney
5