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HomeMy WebLinkAbout2021-04-06; City Council; ; Amend Carlsbad Municipal Code Chapter 1.12 regarding elections, Chapter 1.13 regarding election campaign disclosures and Chapter 1.15 regarding campaign contributionsMeeting Date: April 6, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Cindie K. McMahon, Assistant City Attorney cindie.mcmahon@carlsbadca.gov, 760-434-2891 Sheila Cobian, Assistant to the City Manager sheila.cobian@carlsbadca.gov, 760-434-2917 Subject: Amend Carlsbad Municipal Code Chapter 1.12 regarding elections, Chapter 1.13 regarding election campaign disclosures and Chapter 1.15 regarding campaign contributions District: All Recommended Action 1.Introduce ordinance amending Carlsbad Municipal Code Chapter 1.12 – Elections 2.Introduce ordinance amending Carlsbad Municipal Code Chapter 1.13 – Election Campaign Disclosures 3.Introduce ordinance adding Carlsbad Municipal Code Chapter 1.15 – Campaign Contributions Executive Summary On May 23, 2017, the City Council directed staff to commence work on a comprehensive update to the Carlsbad Municipal Code. On July 23, 2019, the City Council created the ad hoc Carlsbad Municipal Code and City Council Policy Update Subcommittee comprised of Mayor Pro Tem Blackburn and Councilmember Schumacher to assist staff from the City Attorney’s Office, City Manager’s Office and the City Clerk’s Office with recommendations for the update. As part of the update, the subcommittee recommends the City Council adopt ordinances amending Chapter 1.12 – Elections (Exhibit 1 and 2, showing revisions) and Chapter 1.13 – Election Campaign Disclosures (Exhibits 3 and 4, showing revisions). The subcommittee also recommends the City Council adopt an ordinance adding Chapter 1.15 – Campaign Contributions, and is providing two alternative ordinances for the City Council’s consideration (Exhibits 5 and 6). Because all of the proposals relate to elections and campaigns for local political offices, the subcommittee waited to bring these proposed revisions forward until all positions on the City Council were filled. April 6, 2021 Item #5 Page 1 of 27 Discussion Chapter 1.12 – Elections The subcommittee reviewed Chapter 1.12 – Elections and is recommending several amendments to this chapter (Exhibits 1 and 2, which shows the proposed revisions). These amendments are being recommended to simplify the language of this chapter and make it consistent with state law. In addition, the subcommittee is recommending the adoption of Section 1.12.030, which will allow the City Council to conduct elections wholly by mail ballot under the limited circumstances authorized by state law. Chapter 1.13 – Election Campaign Disclosures The subcommittee reviewed Chapter 1.13 – Election Campaign Disclosures and is recommending several amendments (Exhibits 3 and 4, showing the proposed revisions). In addition to simplifying the language and ensuring the code is consistent with current state law, the subcommittee is proposing changes to clarify the city’s online filing requirements. Chapter 1.15 – Campaign Contribution Limits Although the city has the authority to establish campaign contribution limits for local elections, the city currently does not have any limits. In 2019, the state enacted Assembly Bill 571, which sets default campaign contribution limits for local elections unless a local jurisdiction sets its own limits. The state’s default contribution limits took effect on January 1, 2021. If the city does not adopt its own campaign contribution limits, all of the provisions of Assembly Bill 571 will apply to local elections in the City of Carlsbad. In order to maintain local control over local elections, the subcommittee recommends adding a new chapter to the code to establish campaign contribution limits for local elections in the City of Carlsbad. While both subcommittee members agree the city should establish per election campaign contribution limits, they differ in their recommendations on the amount of the limits and are, therefore, providing two alternative recommendations for the full City Council to review (Exhibits 5 and 6). The table below summarizes the subcommittee’s recommendations for per election contribution limits as compared to the new state default limits. All three options include a provision to automatically adjust the contribution limits every two years based on changes in the Consumer Price Index. Elective city office Default state limit Mayor Pro Tem Blackburn’s recommendation (Exhibit 5) Council Member Schumacher’s recommendation (Exhibit 6) Mayor $4,900 $4,900 $3,100 Council member $4,900 $4,900 $900 City treasurer $4,900 $4,900 $3,100 City clerk $4,900 $4,900 $3,100 April 6, 2021 Item #5 Page 2 of 27 Assembly Bill 571 also limits the amount a candidate may loan to the candidate’s own campaign to no more than an outstanding balance of $100,000. Council Member Schumacher recommends setting that limit at $10,000. Mayor Pro Tem Blackburn would like to discuss the issue with the full council to determine an appropriate amount. Exhibit 7 shows a side-by-side comparison of the subcommittee members’ recommendations. Exhibit 8 contains a chart of other cities’ campaign contribution limits. Fiscal Analysis The existing fiscal year 2020-2021 budgets for the City Attorney’s Office and City Clerk’s Office include sufficient funding for the cost of amending and adding the referenced code provisions. Next Steps If introduced, the City Clerk’s Office will prepare the ordinances for adoption at the next regular council meeting. Once adopted, the City Clerk’s Office will publish the ordinances or a summary of the ordinances in a newspaper of general circulation within 15 days. The ordinances will be effective 30 days following their adoption. Environmental Evaluation (CEQA) In keeping with California Public Resources Code Section 21065, the recommended actions do not constitute a "project" within the meaning of the California Environmental Quality Act because they have no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, so the actions do not require environmental review. Public Notification and Outreach Public notice of this item was posted in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. Ordinance to amend Carlsbad Municipal Code Chapter 1.12 – Elections 2. Redline of proposed changes to Carlsbad Municipal Code Chapter 1.12 – Elections 3. Ordinance to amend Carlsbad Municipal Code Chapter 1.13 – Election Campaign Disclosures 4. Redline of proposed changes to Carlsbad Municipal Code Chapter 1.13 – Election Campaign Disclosures 5. Ordinance to add Carlsbad Municipal Code Chapter 1.15 – Campaign Contribution Limits (Mayor Pro Tem Blackburn’s recommendation) 6. Ordinance to add Carlsbad Municipal Code Chapter 1.15 – Campaign Contribution Limits (Council Member Schumacher’s recommendation) 7. Side-by-side comparison of recommendations for Carlsbad Municipal Code Chapter 1.15 – Campaign Contribution Limits 8. Other cities’ campaign contribution limits April 6, 2021 Item #5 Page 3 of 27 ORDINANCE NO. CS-394 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE TITLE 1, CHAPTER 1.12 — ELECTIONS WHEREAS, on May 23, 2017, the City Council of the City of Carlsbad, California (City Council) determined the Carlsbad Municipal Code (Code) requires revisions and amendments and a comprehensive update to the Code is necessary to improve clarity and consistency as well as to reflect current legal and professional best practices; and WHEREAS, on May 23, 2017, the City Council adopted Resolution 2017-095 authorizing the Code update; and WHEREAS, on July 23, 2019, the City Council adopted Resolution 2019-133 creating the ad hoc Carlsbad Municipal Code and City Council Policy Update Subcommittee (Subcommittee) to assist with •the update and expanding the update to include both the Code and City Council Policies (Policies); and WHEREAS, the Subcommittee has reviewed Chapter 1.12 — Elections and has made recommendations for revisions to this chapter; and WHEREAS, establishing clear rules for the conduct of municipal elections is important to the orderly operation of city government. NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains that: 1.The above recitations are true and correct. 2.Carlsbad Municipal Code Title 1, Chapter 1.12 is amended to read as follows: Chapter 1.12 ELECTIONS Sections: 1.12.010 Candidate's filing fee. 1.12.020 Date for general municipal election. 1.12.030 Mail ballot elections. 1.12.040 Governing law absent code provision. 1.12.050 Severability. 1.12.010 Candidate's filing fee. A.Upon the filing of nomination papers, or upon the filing of supplemental nomination papers, a candidate for elective office must pay a filing fee of $25 to the city clerk, which shall be deposited into the general fund. B.In lieu of paying the filing fee in subsection (A), a candidate may submit a petition under California Elections Code Section 8106. April 6, 2021 Item #5 Page 4 of 27 1.12.020 Date for general municipal election. The general municipal election for the city shall be held on the same day as the statewide general election. 1.12.030 Mail ballot elections. A. The city council may conduct the following elections or proceedings wholly by mail ballot: 1.An election to approve a special tax under Article XIII C of the California Constitution. 2.An election to approve a property-related fee or charge under Article XIII D of the California Constitution. 3.An assessment ballot proceeding under Article XIII D of the California Constitution; however, the proceeding shall be denominated an "assessment ballot proceeding" and ballots shall be denominated "assessment ballots." B. The city council shall determine whether an election or proceeding described in subsection (A) will be conducted wholly by mail ballot at the time the city council calls the election. C. An election under this section shall be held on a mail ballot election date established in California Elections Code Section 1500. D. An election under this section shall be conducted in accordance with any special provisions adopted by the resolution of the city council calling the election and with the applicable provisions for mail ballot elections in California Elections Code Section 4100 et seq. 1.12.040 Governing law absent code provisions. Except as provided in this code, city elections shall be governed by the applicable provisions of the California Government Code and California Elections Code. 1.12.050 Severability. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly situated. April 6, 2021 Item #5 Page 5 of 27 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 6th day of April, 2021, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the day of , 2021, by the following vote, to wit: AYES: NAYS: ABSENT: APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWER, City Attorney MATT HALL, Mayor BARBARA ENGLESON, City Clerk (SEAL) April 6, 2021 Item #5 Page 6 of 27 EXHIBIT 2 Chapter 1.12 ELECTIONS Sections: 1.12.010 Candidate's filing fee. 1.12.020 Date for general municipal election. 1.12.030 Mail ballot elections. 1.12.040 Governing law absent code provision. 1.12.050 Severabilitv. 1.12.010 Candidate's filing fee. A.Upon the filing fee of $-2-54;)-0-is-estahilished-far-a-oandiidatels-nomination papers for elective offices at municipal elections held in thc city. The . or upon the filing fee shall be paid to the city clerk by each of supplemental nomination papers, a candidate for an-elective office at-the-time-the-sandidatels-nonninatian paper is filed with the city clerk. The-city-dierk-shailmust pay a filing fee of $25 to the city treasurer all fees receivedclerk which shall be deposited ininto the general fund. Notwithstanding the provisions of this B.In lieu of all or part ofpaying the filing feeT in subsection (A), a candidate may submit a petition containing thc signatures of four registered voters for each dollar of the filing fee.under California Elections Code Section 8106. 1.12.020 Date for general municipal election. Pursuant -to-Sestion-1-140-3,5-of-the-California-G-GveR1-Mecit-Code,-theT h e general municipal election for the city shall be held on the same day as the day of the statewide general election, 1.12.030 Mail ballot elections. A. The city council may conduct the following elections or proceedings wholly by mail ballot: 1.An election to approve a special tax under Article XIII C of the California Constitution. 2.An election to approve a property-related fee or charge under Article XIII D of the California constitution. 3.An assessment ballot proceeding under Article XIII D of the California Constitution: however, the proceeding shall be denominated an "assessment ballot proceeding" and ballots shall be denominated "assessment ballots." B. The city council shall determine whether an election or proceeding described in subsection (A) will be conducted wholly by mail ballot at the time the city council calls the election. C. An election under this section shall be held on a mail ballot election date established in California Elections Code Section 1500. D. An election under this section shall be conducted in accordance with any special provisions adopted by the resolution of the city council calling the elebtion and with the applicable provisions for mail ballot elections in California Elections Code Section 4100 et seg. 1.12.040 Governing law absent code provisions. Except as provided in this code, city elections shall be governed by the applicable provisions of the California Government Code and California Elections Code. April 6, 2021 Item #5 Page 7 of 27 1.12.050 Severabilitv. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly situated. April 6, 2021 Item #5 Page 8 of 27 ORDINANCE NO. CS-395 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE TITLE 1, CHAPTER 1.13 — ELECTION CAMPAIGN DISCLOSURES WHEREAS, on May 23, 2017, the City Council of the City of Carlsbad, California (City Council) determined the Carlsbad Municipal Code (Code) requires revisions and amendments and a comprehensive update to the Code is necessary to improve clarity and consistency as well as to reflect current legal and professional best practices; and WHEREAS, on May 23, 2017, the City Council adopted Resolution 2017-095 authorizing the Code update; and WHEREAS, on July 23, 2019, the City Council adopted Resolution 2019-133 creating the ad hoc Carlsbad Municipal Code and City Council Policy Update Subcommittee (Subcommittee) to assist with the update and expanding the update to include both the Code and City Council Policies (Policies); and WHEREAS, the Subcommittee has reviewed Chapter 1.13 — Election Campaign Disclosures and has made recommendations for revisions to this chapter; and WHEREAS, establishing clear rules regarding the disclosure of campaign contributions promotes transparency in local elections. NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains that: 1.The above recitations are true and correct. 2.Carlsbad Municipal Code Title 1, Chapter 1.13 is amended to read as follows: Chapter 1.13 ELECTION CAMPAIGN DISCLOSURES Sections: 1.13.010 Purpose and intent. 1.13.020 Definitions. 1.13.025 Contributions—Disclosure. 1.13.026 Online filing of campaign statements. 1.13.040 Penalties and enforcement. 1.13.050 Rules of construction. 1.13.060 Severability. 1.13.010 Purpose and intent. .A. This chapter supplements the provisions of the Political Reform Act of 1974 (Act; Cal. Gov. Code, § 81000 et seq.) and its implementing regulations (Cal. Code of Regs., tit. 2, § 18110 et seq.) by: April 6, 2021 Item #5 Page 9 of 27 1.Providing for online filing of campaign statements, reports and other documents (campaign statements); and 2.Requiring additional campaign disclosures in city elections to ensure the city's voters will be fully informed about the receipts and expenditures of candidates and committees prior to the elections. B.The city council finds the online filing system will operate securely and effectively and will not unduly burden filers. C.The city council further finds this chapter is enacted in recognition of the city council's authority under California Government Code Sections 81009.5 and 81013 to impose additional campaign disclosure requirements that apply only to city elections and do not prevent a person from complying with the Act. 1.13.020 Definitions. The words and phrases used in this chapter have the same meaning as defined in the Act. 1.13.025 Contributions—Disclosure. A.No person shall knowingly accept any contribution or loan in excess of $100 without obtaining the name, address, occupation, employer's name, or if self-employed, the name of the business of the person making the contribution or loan. B.No person shall make a contribution or loan for any other person under an assumed name or under the name of any other person. C.Contributions or loans, not to exceed a total of $100 from any one person or source, are permitted to be retained by a candidate or any committee, including a committee supporting or opposing the passage of a measure, when received from anonymous sources or from persons who do not consent to having their name made known. Any such amount in excess of $100 shall be turned over to the city clerk and deposited into the city's treasury within 10 days of receipt of the contribution. D.Any candidate or committee that is required to file a campaign statement for a city election under the Act shall, in addition to the information otherwise required, list the name, address, occupation, name of employer, or if self-employed, the name of the business, and amount contributed or loaned by each person who has contributed or loaned a cumulative amount in excess of $100. 1.13.026 Online filing of campaign statements. A.Any elected officer, candidate, committee or other person who is required to file campaign statements with the city clerk under California Government Code Section 84100 et seq., and who received contributions and made expenditures totaling $2,000 or more in a calendar year, must file such statements using the city clerk's online system. B.When an original campaign statement is required to be filed with the Secretary of State and a copy of the statement is required to be filed with the city clerk, the copy may be, but is not required to be, filed using the city clerk's online system. C.If a campaign statement is filed under this chapter using the city clerk's online system, the statement does not have to be filed with the city clerk in paper format. D.The city clerk may establish and amend procedures for using the city clerk's online system as necessary to accomplish the following: 1. Ensure the online system complies with the requirements in California Government Code Section 84615, including containing a procedure allowing filers to comply with the obligation in California April 6, 2021 Item #5 Page 10 of 27 Government Code Section 81004 for campaign statements to be signed under penalty of perjury. 2.Meet the purpose and intent of this chapter and comply with other applicable laws. 3.Ensure the integrity of the data transmitted and include safeguards against efforts to tamper with, manipulate, alter, or subvert the data. 4.Enable filers to complete and submit filings free of charge. E.An online filing under this chapter will only be accepted if it is made in the standardized record format developed by the California Secretary of State under California Government Code Section 84602, subdivision (a)(2), and is compatible with the Secretary of State's system for receiving an online or electronic filing. F.If a campaign statement is not required to be filed using the city clerk's online system, or if the city clerk's online system is not capable of accepting a particular type of statement, the statement must be filed with the city clerk in paper format. The city clerk must post copies of documents filed in paper format to the Internet within the time periods and subject to the requirements specified in subsection (J). G.The city clerk must provide a person who files a campaign statement using the city clerk's online system with an electronic confirmation notifying the filer the statement was received. The confirmation must include the date and time the city clerk received the statement and the method by which the filer may view and print the data received. H.The filing date of a campaign statement filed using the city clerk's online system is the date the city clerk received the statement. I.The city clerk must make all data filed available on the Internet in an easily understood format that provides the greatest public access. The data must be made available free of charge and as soon as possible after receipt. The data made available on the Internet shall not contain the street name and building number of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The city clerk must make a complete, unredacted copy of a filed campaign statement available to any person upon request. J.The city clerk must post a copy of a document filed in paper format to the Internet within 72 hours of the applicable filing deadline. If the final day of the 72-hour period is a Saturday, Sunday, or holiday, the period is extended to the next day that is not a Saturday, Sunday, or holiday. The Internet posting must otherwise comply with the requirements of subsection (I). The posted document must remain available for four years from the date of the election associated with the filing. K.The city clerk's office must maintain, for a period of at least 10 years commencing from the date filed, a secured, official version of each online campaign statement filed under this chapter, which will serve as the official version of the record for purposes of audits and any other legal purpose. After data has been maintained for at least 10 years, the city clerk may archive it in a secure format. 1.13.040 Penalties and enforcement. Violations of this chapter are subject to the enforcement and penalty provisions of California Government Code Sections 91000-91014. Any person who knowingly or willfully violates any provision of this chapter is guilty of a misdemeanor. The San Diego County District Attorney is the civil and criminal prosecutor for this chapter. 1.13.050 Rules of construction. The provisions of this chapter must be construed liberally in order to accomplish the intent and purposes of this chapter and the Act. April 6, 2021 Item #5 Page 11 of 27 1.13.060 Severability. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision will not affect the validity of the remaining portions of this chapter or the application of this chapter to persons or circumstances not similarly situated. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 6th day of April, 2021, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the day of , 2021, by the following vote, to wit: AYES: NAYS: ABSENT: APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWER, City Attorney MATT HALL, Mayor BARBARA ENGLESON, City Clerk (SEAL) April 6, 2021 Item #5 Page 12 of 27 EXHIBIT 4 Chapter 1.13 ELECTION CAMPAIGN DISCLOSUREDISCLOSURES Sections: 1.13.010 Purpose and intent. 1.13.020 Definitions. 1.13.025 Contributions—Disclosure. 1.13.026 ElectronicOnline filing of campaign d-iseriesw-restatements. 1-1-4,030----Gash-sentri-butiens-p-rah-i-b-Rech 1.13.040 Penalties and enforcement. 1.13.050 Rules of construction. 1.13.060 Severabilitv. 1.13.010 Purpose and intent. A. This chapter is to supplementsupplements the provisions of the Political Reform Act of 1974 by requiring an(Act: Cal. Gov. Code. 81000 et seq.) and its implementing regulations (Cal. Code of Regs., tit. 2, 5 18110 et seq.) by: 1.Providing for online filing of campaign statements, reports and other documents (campaign statements); and 2.Requiring additional campaign disclosure statementdisclosures in municipalcity elections to insure thatensure the city's voters will be fully informed about the receipts 9f-and expenditures byof candidates and committees prior to s-usithe elections. B. The city council finds thatthe online filing system will operate securely and effectively and will not unduly burden filers. C. The city council further finds this chapter is enacted in recognition of the power of a local agencycity council's authority under California Government Code Sections 81009.5 and 81013 to impose additional campaign disclosure requirements as authorized by Government Code Section 81013, so long as theythat apply only to city elections and do not prevent a person from complying with the aGtAct. 1.13.020 Definitions. The words and phrases used in this chapter shall-have the same meaning as defined in the Political Reform Act-Gf--1-9.74-T-it4e-9-ef-tbe-G-Gyer-RmeRt-Gede-Gf-the-stater -as--tbe--ast--4GAL-ex4ts--Gf-ma}L-hereaftef be amended. 1.13.025 Contributions—Disclosure. A.No person shall knowingly accept any contribution or loan in excess of $100,08 without obtaining the name, address, occupation, employer's name, or if self-employed, the name of the business of the person making the contribution or loan. B.No person shall make a contribution or loan for any other person under an assumed name or under the name of any other person. C.Contributions or loans, not to exceed a total of $100,00 from any one person or source, are permitted to be retained by a candidate or any committee, including a committee supporting or opposing the passage of a measure, when received from anonymous sources or from persons who do not consent April 6, 2021 Item #5 Page 13 of 27 to having their name made known. Any such amount in excess of $100,09 shall be turned over to the city clerk and deposited into the city's treasury within 10 days of receipt of the contribution. D. Any candidate or committee that is required to file a campaign statement for a municipalcity election in Carlsbad pursuant tounder the Political Reform Act of 1974 shall, in addition to the information otherwise required, list the name, address, occupation, name of employer, or if self-employed, the name of the business, and amount contributed or loaned by each person who has contributed or loaned a cumulative amount in excess of $100,00. 1.13.026 glestr-onisOnline filing of campaign eliselesurestatements. A. Any elected officer, candidate, committee or other person who is required to file apesifiedcampaign statements, reports, or other documents ("statements") with the city clerk ae-r-eq-u-ifeci by Chapter 'I (commencing with Section 81100 ct seq.) of Title 9 of theunder California Government Code, al-co known as the Political Reform Act, Section 84100 et seg., and that hacwho received contributions sfand made expenditures of $1totaling $2,000,00 or more, may in a calendar year. must file such statements using the city clerk's online system. B. When an original campaign statement is required to be filed with the Secretary of State and a copy of the statement is required to be filed with the city clerk, the copy may be, but is not required to be. filed using the city clerk's online system according to. C. If a campaign statement is filed under this chapter using the city clerk's online system, the statement does not have to be filed with the city clerk in paper format. D. The city clerk may establish and amend procedures established by the city clerk. These procedures shall ensure thatfor using the city clerk's online system as necessary to accomplish the following: 1. Ensure the online system complies with the requirements set-fsct-h-fn-S-estish-846-1-5-ef them n California Government Code Section 84615, including containing a procedure allowing filers to comply with the obligation in California Government Code Section 81004 for campaign statements to be signed under penalty of perjury. During the period commencing with the effective- date of Ordinance CS 258 and ending December 31, electronically filing a statement that is required to be filed with the city clerk pursuant to Chapter '1 of the Political Reform Act. of any elected officer, candidate, or committee as set forth in this section, all future statements, reports and ether--GfgG61-mefttS-an-beha-lf-ef-that-effisefr candidate or committee shall be required to be filed electronically using the city clerk system. or other document using the city clerk's online system 2. Meet the purpose and intent of this chapter and comply with other applicable laws. 3.Ensure the integrity of the data transmitted and include safeguards against efforts to tamper with, manipulate, alter, or subvert the data. 4.Enable filers to complete and submit filings free of charge. E. An online filing under this chapter will only be accepted if it is made in the standardized record April 6, 2021 Item #5 Page 14 of 27 format developed by the California Secretary of State under California Government Code Section 84602, subdivision (a)(2), and is compatible with the Secretary of State's system for receiving an online or electronic filing. F. If a campaign statement is not required to #4e-a-Geffry-ef--that-clesuR4eRt-in-p-aper--foFmat-with-the-sity clerk. From and after January 1, 2016, elected officers, candidates and committees required to file statements must file such statements using the city clerk's online system, unless exempt from the requirement to file online pursuant to Government Code Section 84615(a) because the officer, candidate or committee fec-eives-less414an-$47000,00-i-n-Gentrib.1.14494:16-a451-makes-less-tIzian-$444)40-in-e-xpe4GtituFes-i-n-a-ealeRelaf year. An elected officer, candidate, committee or other person may choose to opt out of the electronic filing system by filing all original statements, reports or other documents in paper format with the city clerk. In-any-ipstariGe-i-n-wh-IGh-an-er-igi-Ral-statement7-FefaeFt7-or-othec-doGume-Rt-R4-616t-be-fileel-with-the-SeGFeta of State and a copy of that document is required to be filed with the city clerk, the filer may electronically file a copy with the city clerk, the filer may, but is not required to file the copy online or electronically. ffusinq the city clerk's online system, or if the city clerk's online system is not capable of accepting a particular type of statement, report or other document, an elected officer, candidate, committee or other person shall file that document in paper format with the city clerkthe statement must be filed with the city clerk in paper format. The city clerk must post copies of documents filed in paper format to the Internet within the time periods and subject to the requirements specified in subsection (J). The city clerk's system shall make all thcG. The city clerk must provide a person who files a campaign statement using the city clerk's online system with an electronic confirmation notifying the filer the statement was received. The confirmation must include the date and time the city clerk received the statement and the method by which the filer may view and print the data received. H.The filing date of a campaign statement filed using the city clerk's online system is the date the city clerk received the statement. I.The city clerk must make all data filed available on the Internet in an easily understood format that provides the greatest public access. The data thatImust be made available free of charge and as soon as possible after receipt/deadline. The data made available on the Internet shall not contain the street name and building number of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The city clerk's office shallclerk must make a complete, unredacted copy of thca filed campaign statement available to t4e—Fai-r—P-salitisal—Rrastises Commission for 87200 filersany person upon request. J.The city clerk must post a copy of a document filed in paper format to the Internet within 72 hours of the applicable filing deadline. If the final day of the 72-hour period is a Saturday, Sunday. or holiday, the period is extended to the next day that is not a Saturday, Sunday, or holiday. The Internet posting must otherwise comply with the requirements of subsection (IL The posted document must remain available for four years from the date of the election associated with the filing. K.The city clerk's office shalimust maintain records according to the city's records retention schedule for a period of at least 10 years commencing from the date filed, a secured, official version of each online or electroniccampaign statement filed under this chapter, which shall-will serve as the official version of thatthe record for the purposepurposes of audits and any other legal purpose. After data has been maintained for at least 10 years, the city clerk may archive it April 6, 2021 Item #5 Page 15 of 27 prohibited. No candidate in a eity-muhisipal-elestion-shal-l-aGGept-a-eash-senthbutien-ef-$400,40-er--moreAll-s-us# sentnhuti-ens-s-hal-l-be-made-by-shenk:-A-sand-i-date-is-r-espir-ed-te-make-a-seny-ef-eaGh-su4h-shesk-r-ec-eived prior to negotiating-it,secure format. A cash contribution shall not be deemed received if it is not negotiated or deposited, and is returned to the contributor before the closing date of the campaign statement on which the contribution would otherwise be reported. If a cash contribution, other than a late contribution, as defined in Section 82036, is negotiated Of-etepss-iteel;4t-s-hal-I-RGt-be4eemed-r-eGeive4-if-it-is-r-efu+14e4withTh-7-2-hour-s-ef-r-eGe-i-pt—l-n4he-Gase-ef--a-late contribution, as defined in Section 82036 (the Political Reform Act), it shall not be deemed received if it lE returned to the contributor within 18 hours of receipt. 1.13.040 Penalties and enforcement. The penalties and Violations of this chapter are subject to the enforcement and penalty provisions of the Political Reform Act of 1971, California Government Code Sections 91000 through _91014 of tho Government Code of the state shall apply to any-vielation-ef-the-p-Fovisions-ef-th-i-s-shapte. Any person who knowingly or wilfu-l-lywillfully violates any provision of this chapter is guilty of a misdemeanor. F-or-purp-ose-s of-thi-s-shapter-the-G1-istrist-attemey-ef-the-GauhtyThe San Diego County District Attorney is the civil and criminal prosecutor for this chapter. 1.13.050 Rules of construction. The provisions of this chapter sheitmust be construed liberally in order to accomplish the intent and purposes of this chapter and the Political-RefGcm-Act 1 13..060 Severability. If any portion of 1971. this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision áf a court of competent jurisdiction, the decision will not affect the validity of the remaining portions of this chapter or the application of this chapter to persons or circumstances not similarly situated. April 6, 2021 Item #5 Page 16 of 27 ORDINANCE NO. CS-396 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADDING CHAPTER 1.15 — CAMPAIGN CONTRIBUTION LIMITS TO TITLE 1 OF THE CARLSBAD MUNICIPAL CODE WHEREAS, on May 23, 2017, the City Council of the City of Carlsbad, California (City Council) determined the Carlsbad Municipal Code (Code) requires revisions and amendments and a comprehensive update to the Code is necessary to improve clarity and consistency as well as to reflect current legal and professional best practices; and WHEREAS, on May 23, 2017, the City Council adopted Resolution 2017-095 authorizing the Code update; and WHEREAS, on July 23, 2019, the City Council adopted Resolution 2019-133 creating the ad hoc Carlsbad Municipal Code and City Council Policy Update Subcommittee (Subcommittee) to assist with the update and expanding the update to include both the Code and City Council Policies (Policies); and WHEREAS, California Government Code Section 85702.5, subdivision (a) authorizes the City Council to adopt campaign contribution limits applicable to elective city offices; and WHEREAS, the City Council wishes to maintain local control over local elections; and WHEREAS, adopting campaign contribution limits applicable to elective city offices will: •preserve an orderly political forum in which individuals may express themselves effectively; •place realistic and enforceable limits on the amounts of money that may be contributed to campaigns for elective city offices; and •prevent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for elective city offices. NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains that: 1.The above recitations are true and correct. 2.Carlsbad Municipal Code Title 1 is amended to add Chapter 1.15 to read as follows: Chapter 1.15 CAMPAIGN CONTRIBUTION LIMITS 1.15.010 Purpose and intent. 1.15.020 Definitions. 1.15.030 Cash contributions prohibited. April 6, 2021 Item #5 Page 17 of 27 1.15.040 Campaign contribution limits. 1.15.050 Candidate contributions. 1.15.060 Transfer of funds between a candidate's controlled committees. 1.15.070 Loans. 1.15.080 Recall measures. 1.15.090 Post-election contributions. 1.15.100 Carry-over contributions from one election to another for the same city office. 1.16.110 Violations. 1.15.120 Severability. 1.15.010 Purpose and intent. California Government Code Section 85702.5, subdivision (a), authorizes the City Council to adopt campaign contribution limits applicable to elective city offices. In providing this authorization, the state Legislature found that in cities without campaign contribution limits, candidates for elective city offices often receive contributions exceeding the limits for a state senate campaign, even though most cities contain far fewer people than the average state senate district. The Legislature further found that in cities without campaign contribution limits, candidates for elective city offices sometimes raise 40% or more of their total campaign funds from a single contributor and that allowing unlimited contributions to candidates for elective city offices creates the risk and perception elective city officials are beholden to their contributors and will act in the best interest of their contributors at the expense of the people. It is the purpose and intent of the City Council in enacting this chapter: A.To preserve an orderly political forum in which individuals may express themselves effectively; B.To place realistic and enforceable limits on the amounts of money that may be contributed to campaigns for elective city offices; and C.To prevent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for elective city offices. 1.15.020 Definitions. The words and phrases used in this chapter have the same meaning as defined in the Political Reform Act of 1974, California Government Code Section 81000 et seq., as it now exists or may subsequently be amended. 1.15.030 Cash contributions prohibited. No candidate for city elective office shall accept a cash contribution of $100 or more. All such contributions must be made by check. A candidate is required to make a copy of each such check received. A cash contribution will not be deemed received if it is returned to the contributor before the closing date of the campaign statement on which the contribution would otherwise be reported. If a cash contribution, other than a late contribution, is spent or deposited, it will not be deemed received if it is refunded within 72 hours of receipt. In the case of a late contribution, it will not be deemed received if it is returned to the contributor within 48 hours of receipt. 1.15.040 Campaign contribution limits. A.A person shall not make to a candidate for city council, and a candidate for city council shall not accept from a person, a contribution totaling more than $900 per election. B.A person shall not make to a candidate for mayor, city treasurer or city clerk and a candidate for a candidate for mayor, city treasurer or city clerk shall not accept from a person, a contribution totaling more than $3,100 per election. C.The city clerk shall adjust the contribution limitations provisions in subsections (A) and (B) in January of every odd-numbered year to reflect any increase or decrease in the California Consumer Price Index for All Urban April 6, 2021 Item #5 Page 18 of 27 Consumers (CPI-U) for the San Diego region. Those adjustments shall be calculated based on the total change in the CPI-U, San Diego region, since the last adjustment was made and shall be rounded to the nearest $100. The city clerk shall post the adjusted contribution limit to the city's website. 1.15.050 Candidate contributions. A candidate for elective city office or a committee controlled by that candidate shall not make a contribution to any other candidate for elective city office in excess of the limits set forth in Section 1.15.040. 1.15.060 Transfer of funds between a candidate's controlled committees. A. A candidate for elective city office may transfer campaign funds from one of the candidate's controlled committees to the candidate's controlled committee for elective city office, provided all of the following requirements are met: 1. The candidate establishes a new campaign account into which funds will be transferred. The candidate may not re-designate an existing campaign account. 2. The transferred contributions are attributed to specific contributors to the campaign contribution account from which they were transferred. Contributions must be allocated and attributed to each specific contributor on either a "first in, first out" or "last in, first out" basis. For purposes of this section, the terms "first in, first out" and "last in, first out" have the following meanings: a."First in, first out" means the campaign funds being transferred are attributed to the transferring committee's contributors in chronological order beginning with the earliest of its contributors or, if there has been a prior transfer, beginning with the earliest contributor for which unattributed contributions remain. b."Last in, first out" means that campaign funds being transferred are attributed to the transferring committee's contributors in reverse chronological order beginning with the most recent of the committee's contributors or, if there has been a prior transfer, beginning with the most recent contributor for which unattributed contributions remain. 3. The transferred contributions, when aggregated with all other contributions from and transfers attributable to the same contributor, do not exceed the amount that the contributor could have contributed to the candidate, or the controlled committee of the candidate, under Section 1.15.040. 1.15.070 Loans. A.A candidate for elective city office shall not personally loan to the candidate's campaign, including the proceeds of a loan obtained by the candidate from a commercial lending institution, an amount, the outstanding balance of which exceeds $10,000. A candidate shall not charge interest on any loan the candidate made to the candidate's campaign. B.The provisions of this section apply to extensions of credit, but do not apply to loans made to a candidate by a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personally liable. 1.15.080 Recall measures. A.Notwithstanding any other provision of this chapter, an elected city officer may establish a committee to oppose the qualification of a recall measure and the recall election. This committee may be established when the elected city officer receives a notice of intent to recall under California Elections Code Section 11021. An elected city officer may accept campaign contributions to oppose the qualification of a recall measure, and if qualification is successful, the recall election, without regard to the campaign contribution limits set forth in this chapter. B.After the failure of a recall petition or after the recall election, the committee formed by the elected city officer shall wind down its activities and dissolve. Any remaining funds shall be treated as surplus funds and shall be expended within 30 days after the failure of the recall petition or after the recall election for a purpose specified in California Government Code Section 89519, subdivision (b). April 6, 2021 Item #5 Page 19 of 27 1.15.090 Post-election contributions. A contribution for an election may be accepted by a candidate for elective city office after the date of the election only to the extent that the contribution does not exceed net debts outstanding from the election, and the contribution does not otherwise exceed the applicable contribution limit for that election. 1.15.100 Carry-over contributions from one election to another for the same city office. Notwithstanding Section 1.15.060, a candidate for elective city office may carry over contributions raised in connection with one election for elective city office to pay campaign expenditures incurred in connection with a subsequent election for the same elective city office. 1.15.110 Violations. Violations of this chapter are subject to the enforcement and penalty provisions of California Government Code Sections 91000-91014. Any person who knowingly or willfully violates any provisions of this chapter is guilty of a misdemeanor. The San Diego County District Attorney is the civil and criminal prosecutor for this chapter. 1.15.120 Severability. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly situated. Il /I Il /I April 6, 2021 Item #5 Page 20 of 27 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 6th day of April, 2021, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the day of , 2021, by the following vote, to wit: AYES: NAYS: ABSENT: APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWER, City Attorney MATT HALL, Mayor BARBARA ENGLESON, City Clerk (SEAL) April 6, 2021 Item #5 Page 21 of 27 EXHIBIT 7 Chapter 1.15 CAMPAIGN CONTRIBUTION LIMITS 1.15.010 Purpose and intent. 1.15.020 Definitions. 1.15.030 Cash contributions prohibited. 1.15.040 Campaign contribution limits. 1.15.050 Candidate contributions. 1.15.060 Transfer of funds between a candidate's controlled committees. 1.15.070 Loans. 1.15.080 Recall measures. 1.15.090 Post-election contributions. 1.15.100 Carry-over contributions from one election to another for the same city office. 1.15.110 Violations. 1.15.120 Severability. 1.15.010 Purpose and intent. California Government Code Section 85702.5, subdivision (a), authorizes the City Council to adopt campaign contribution limits applicable to elective city offices. In providing this authorization, the state Legislature found that in cities without campaign contribution limits, candidates for elective city offices often receive contributions exceeding the limits for a state senate campaign, even though most cities contain far fewer people than the average state senate district. The Legislature further found that in cities without campaign contribution limits, candidates for elective city offices sometimes raise 40% or more of their total campaign funds from a single contributor and that allowing unlimited contributions to candidates for elective city offices creates the risk and perception elective city officials are beholden to their contributors and will act in the best interest of their contributors at the expense of the people. It is the purpose and intent of the City Council in enacting this chapter: A.To preserve an orderly political forum in which individuals may express themselves effectively; B.To place realistic and enforceable limits on the amounts of money that may be contributed to campaigns for elective city offices; and C.To prevent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for elective city offices. 1.15.020 Definitions. The words and phrases used in this chapter have the same meaning as defined in the Political Reform Act of 1974, California Government Code Section 81000 et seq., as it now exists or may subsequently be amended. 1.13.030 Cash contributions prohibited. No candidate for city elective office shall accept a cash contribution of $100 or more. All such contributions must be made by check. A candidate is required to make a copy of each such check received. A cash contribution will not be deemed received if it is returned to the contributor before the closing date of the campaign statement on which the contribution would otherwise be reported. If a cash contribution, other than a late contribution, is spent or deposited, it will not be deemed received if it is refunded within 72 hours April 6, 2021 Item #5 Page 22 of 27 of receipt. In the case of a late contribution, it will not be deemed received if it is returned to the contributor within 48 hours of receipt. 1.15.040 Campaign contribution limits. Council Member Schumacher's Recommendation Mayor Pro Tern Blackburn's Recommendation A. A person shall not make to a candidate for city council, and a candidate for city council shall not accept from a person, a contribution totaling more than $900 per election. A. A person shall not make to a candidate for elective city office, and a candidate for elective city office shall not accept from a person, a contribution totaling more than $4,900 per B. A person shall not make to a candidate for election. mayor, city treasurer or city clerk and a candidate for a candidate for mayor, city treasurer or city clerk shall not accept from a person, a contribution totaling more than B. The city clerk shall adjust the contribution limitation in subsection (A) in January of every odd-numbered year to reflect any increase or decrease in the California Consumer Price $3,100 per election. Index for All Urban Consumers (CPI-U) for the C. The city clerk shall adjust the contribution limitations provisions in subsections (A) and (B) in January of every odd-numbered year to reflect any increase or decrease in the California Consumer Price Index for All Urban Consumers (CPI-U) for the San Diego region. San Diego region. That adjustment shall be calculated based on the total change in the CPI-U, San Diego region, since the last adjustment was made and shall be rounded to the nearest $100. The city clerk shall post the adjusted contribution limit to the city's website. Those adjustments shall be calculated based on the total change in the CPI-U, San Diego region, since the last adjustment was made and shall be rounded to the nearest $100. The city clerk shall .post the adjusted contribution limits to the city's website. 1.15.050 Candidate contributions. A candidate for elective city office or a committee controlled by that candidate shall not make a contribution to any other candidate for elective city office in excess of the limits set forth in Section 1.15.040. 1.15.060 Transfer of funds between a candidate's controlled committees. A. A candidate for elective city office may transfer campaign funds from one of the candidate's controlled committees to the candidate's controlled committee for elective city office, provided all of the following requirements are met: 1.The candidate establishes a new campaign account into which funds will be transferred. The candidate may not re-designate an existing campaign account. 2.The transferred contributions are attributed to specific contributors to the campaign contribution account from which they were transferred. Contributions must be allocated and attributed to individual contributors on either a "first in, first out" or "last in, first out" basis. For purposes of this section, the terms "first in, first out" and "last in, first out" have the following meanings: a."First in, first out" means the campaign funds being transferred are attributed to the transferring committee's contributors in chronological order beginning with the earliest of its contributors or, if there has been a prior transfer, beginning with the earliest contributor for which unattributed contributions remain. b."Last in, first out" means that campaign funds being transferred are attributed to the transferring committee's contributors in reverse chronological order beginning with the most April 6, 2021 Item #5 Page 23 of 27 recent of its contributors or, if there has been a prior transfer, beginning with the most recent contributor for which unattributed contributions remain. 3. The transferred contributions, when aggregated with all other contributions from and transfers attributable to the same contributor, do not exceed the amount that the contributor could have contributed to the candidate, or the controlled committee of the candidate, under Section 1.15.040. 1.15.070 Loans. Council Member Schumacher's Recommendation Mayor Pro Tern Blackburn's Recommendation A. A candidate for elective city office shall not personally loan to the candidate's campaign, including the proceeds of a loan obtained by the candidate from a commercial lending institution, an amount, the outstanding balance of which exceeds $10,000. A candidate shall not charge interest on any loan the candidate made to the candidate's campaign. A. A candidate for elective city office shall not personally loan to the candidate's campaign, including the proceeds of a loan obtained by the candidate from a commercial lending institution, an amount, the outstanding balance of which exceeds . A candidate shall not charge interest on any loan the candidate made to the candidate's campaign. B. The provisions of this section apply to extensions of credit, but do not apply to loans made to a candidate by a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personally liable, B. The provisions of this section apply to extensions of credit, but do not apply to loans made to a candidate by a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personally liable. 1.15.080 Recall measures. A.Notwithstanding any other provision of this chapter, an elected city officer may establish a committee to oppose the qualification of a recall measure, and the recall election. This committee may be established when the elected city officer receives a notice of intent to recall under California Elections Code Section 11021. An elected city officer may accept campaign contributions to oppose the qualification of a recall measure, and if qualification is successful, the recall election, without regard to the campaign contribution limits set forth in this chapter. B.After the failure of a recall petition or after the recall election, the committee formed by the elected city officer shall wind down its activities and dissolve. Any remaining funds shall be treated as surplus funds and shall be expended within 30 days after the failure of the recall petition or after the recall election for a purpose specified in California Government Code Section 89519, subdivision (b). 1.15.090 Post-election contributions. A contribution for an election may be accepted by a candidate for elective city office after the date of the election only to the extent that the contribution does not exceed net debts outstanding from the election, and the contribution does not otherwise exceed the applicable contribution limit for that election. 1.15.100 Carry-over contributions from one election to another for the same city office. Notwithstanding Section 1.15.060, a candidate for elective city office may carry over contributions raised in connection with one election for elective city office to pay campaign expenditures incurred in connection with a subsequent election for the same elective city office. April 6, 2021 Item #5 Page 24 of 27 1.15.110 Violations. Violations of this chapter are subject to the enforcement and penalty provisions of California Government Code Sections 91000-91014. Any person who knowingly or willfully violates any provisions of this chapter is guilty of a misdemeanor. The San Diego County District Attorney is the civil and criminal prosecutor for this chapter. 1.15.120 Severability. If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly situated. April 6, 2021 Item #5 Page 25 of 27 EXHIBIT 8 Cities with Local Campaign Contribution Limits City Campaign Contribution Limit Recent Changes Cities in San Diego County Chula Vista $350 Coronado $200 County of San Diego $900 Limit raised from $850 due to CPI adjustment Del Mar $200 Encinitas $250 Escondido $1,000 for district council seats $1,750 for city-wide elective offices (mayor, clerk and treasurer) City Council approved new limits in Nov 2020. Prior limit was $4,300. Note: Initially the new limits included a prohibition on rolling over surplus campaign funds to a subsequent election and applied to political party contributions. In March 2021, those two provisions were removed after new council members were elected. Political parties must abide by state contribution limit of $4,700. Lemon Grove $1,090 Limit raised from $1,000 due to CPI adjustment National City $1,000 Newly adopted limit passed in April 2020. Poway $250 City of San Diego $650 for City Council $1,150 for Mayor and City Attorney San Marcos $250 Santee $700 Solana Beach $200 Limit raised from $180 due to CPI adjustment Vista $480 April 6, 2021 Item #5 Page 26 of 27 City Campaign Contribution Limit Recent Changes Other Comparable Cities Newport Beach $1,200 Santa Barbara Candidates are subject to state limitations unless they accept a voluntary expenditure limit of $50,000 Santa Monica $340 Ventura $150 or $325 if candidate adopts voluntary expenditure limit April 6, 2021 Item #5 Page 27 of 27 Mia De Marzo From: Sent: To: Subject: Shirley <sander1575@aol.com> Tuesday, April 6, 2021 12:46 PM City Clerk Campaign Finance Reform Ali Receive - Agenda Item # For the Information of the: CITY COUNCIL Date 141(41-1 CA y CC crvi )0 ACM `?° DCM Ref: Carlsbad Campaign Finance Reform Thank you to the Carlsbad Council for adding this important issue to the Council Agenda. As we saw how effective it was to divide Carlsbad into Districts to allow for better representation on our Council, so do I feel that campaign finance limits on campaigns will level the playing field for future candidates. Campaign finance limits will also limit the influence from outside donors, such as developers trying to buy their way to project approval. We saw this when big developer Carusso came to town to build a Mall on precious lagoon land. With many surrounding communities adopting such reforms it is time for the City of Carlsbad to do the same. Thank you, Shirley Anderson Bressi Ranch 92009 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Mia De Marzo From: Sent: To: Subject: Council Members, I support Cori Schumacher's effort to further limit individual contribution for council and city-wide races. -Barbara Diamond- District 2 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. Barbara Diamond <diamondbarb@gmail.com> Tuesday, April 6, 2021 8:19 AM City Clerk campaign finance All Receive - Agenda Item # For the Information of the: CITY COUNCIL Date tif 012- ICA OCC CM \pACM O DCM Veoe vecC 0/'14V 1 Mia De Marzo From: Stephanie Wells <ms.sicily@gmail.com> Sent: Monday, April 5, 2021 11:03 PM To: City Clerk Subject: Agenda #5 Please include this in the public record for agenda item #5 - 1.15 Donation and Expenditure Limits Dear Mayor and Council Members, I writing in support of lowering the donation and expenditure limits for the city of Carlsbad. In a city with a median income of $52,000, we do not need to be at the maximum allowed amount limit of $4900 for our Mayor and City Council campaigns. Our neighboring cities have capped limits with Encinitas and San Marcos capped at $250 and the city of San Diego capped at $1200 for Mayor and $650 for council. These lower caps fall in line with the citizens they represent. Lowering the donation and expenditure limits, makes running for office more accessible. We need new leaders to pursue careers in public service and represent the communities they live in. Lowering the donation and expenditure limits makes our election process more equitable, transparent, and ensures it represents the people in the community, not outside or wealthy donors. People who make large political donations should not have more political influence than the majority of it's residents. By continuing to allow these excessive campaign contributions, we are condoning outside special interest groups to dictate what happens within Carlsbad. Let's get Carlsbad more inline with our neighboring cities and limit donation and campaign expenditure limits and ensure equal representation for this city. Stephanie Wells 92008 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Mia De Marzo From: John <ranierijd@aol.com> Sent: Monday, April 5, 2021 7:50 PM To: City Clerk Cc: lorrrans23@aol.com; hopen51@att.net Subject: 4/6/21 City of Carlsbad Agenda Item :Campaign Finance Reform AGENDA #5 AMENDMENT TO CARLSBAD MUNICIPAL CODE CHAPTER 1.12 REGARDING ELECTIONS, CHAPTER 1.13 REGARDING ELECTION CAMPAIGN DISCLOSURES AND CHAPTER 1.15 REGARDING CAMPAIGN CONTRIBUTIONS Dear Mayor and Council Members, In an effort to minimize excessive campaign spending, discourage undue influence by special interest groups and allow for greater participation in the election process, we strongly urge the Council to adopt Agenda #5 Amendments to Carlsbad Municipal Code. John and Lorraine Ranieri Carlsbad, 92011 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Mia De Marzo From: Sent: To: Subject: Dear Council and Mayor: Nikki Faddick <nfaddick@gmail.com> Tuesday, April 6, 2021 10:01 AM City Clerk Campaign Contribution Limits Agenda Item #5 All Receive - Agenda Item # 5 For the Information of the: CITY COUNCIL Datetikp jiri CA )0 cc kto CM _y/ ACM NIO DCM {3) se I am a Carlsbad resident and mom, writing to express my support for lower campaign contribution limits, as put forth by Councilmember Schumacher. I would support even lower limits than what she has called for; but her limits appear to be an effort to simply mitigate the outrageous amounts supported by some council members and tolerated by this city for far too long. Campaign contribution limits are just good politics; they improve public trust in elected officials, as the appearance of "pay-for- play" is diminished; they give voters and small-dollar donors more agency, and they lower the financial bar to recruit capable candidates who may not have the typical connections to moneyed interests. Lowering campaign contribution limits is an easy way to reclaim our decision-making power at the grassroots level— the citizens who are most impacted by the council's decisions. Higher limits drive up overall campaign costs and lock out younger or historically disadvantaged candidates, which in turn shrinks and homogenizes our candidate pool. But my fear is that this isn't news to anyone who supports high limits. These policies run counter to the survival of a thriving democracy; one in which our ideas and our values ought to speak more loudly than the mighty dollar. Thank you, Nikki Faddick D3 CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Mia De Marzo From: Diana A <dra805@gmail.com> Sent: Tuesday, April 6, 2021 11:00 AM To: City Clerk Subject: Support of Agenda #5 Dear Mayor + Council Members, First, thanks to Councilmember Schumacher for adding this to the agenda. Much appreciated! I support lowering the donation limits for campaign contributions. This will allow greater access for individuals to run for elected office. It will also minimize special interests tied to political contributions & minimize excessive campaign budgets. Councilmember Schumacher's recommendation of the following is feasible: $3100 limit for Mayor $900 limit for City Council $10,000 limit on self donations As reference here is what other cities have applied to their contribution limits: The city of San Diego has contribution limits of $1200 for Mayor, and $650 for Council Members The city of Encinitas has contribution limits of $250 for any municipal office AMENDMENT TO CARLSBAD MUNICIPAL CODE CHAPTER 1.12 REGARDING ELECTIONS, CHAPTER 1.13 REGARDING ELECTION CAMPAIGN DISCLOSURES AND CHAPTER 1.15 REGARDING CAMPAIGN CONTRIBUTIONS — 1) Introduction of an ordinance amending Carlsbad Municipal Code Title 1, Chapter 1.12 — Elections; and 2)Introduction of an ordinance amending Carlsbad Municipal Code Title 1, Chapter 1.13 — Election Campaign Disclosures; and 3)Introduction of an ordinance adding Chapter 1.15 —Campaign Contribution Limits to Title 1 of the Carlsbad Municipal Code. (Staff contact: Cindie K. McMahon, City Attorney Department and Sheila Cobian, City Manager Department) Thank YOU, Diana Aguirre District 3 Resident CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Election-Related Ordinances Cindie McMahon, Assistant City Attorney Sheila Cobian, Assistant to the City Manager April 6, 2021 Recommended Action •Introduce an ordinance amending CMC Chapter 1.12 –Elections •Introduce an ordinance amending CMC Chapter 1.13 –Election Campaign Disclosures •Introduce an ordinance adding CMC Chapter 1.15 –Campaign Contribution Limits 2 Ch. 1.12 –Elections •Currently, Chapter 1.12 establishes: –Candidate filing fee of $25 –Date for the city’s general municipal election, which is the same date as the statewide general election 3 Ch. 1.12 –Elections •Proposed Amendments: –Modernize language of existing provisions –Add provision with option to conduct Proposition 218 elections wholly by mail –Add Government Code default and severability provisions 4 Ch. 1.13 –Election Campaign Disclosures •Currently, Chapter 1.13 establishes requirements for online filing of campaign finance statements with the City Clerk’s Office •Proposed amendments modernize language of existing provisions and add new provisions to conform online filing requirements to existing law. 5 Ch. 1.15 –Campaign Contribution Limits •New chapter •Prompted by AB 571: –Effective Jan. 1, 2021 –Establishes default local campaign contribution limits 6 Legal Standards •Campaign contributions are protected by First Amendment political expression and association rights •City may only regulate contributions to protect against quid pro quo corruption or the appearance of such corruption •City may not regulate contributions to –Reduce or equalize the amount of money in politics –Restrict political participation by one person/group in favor of another person/group 7 Legal Standards •City may impose limits on contributions to individual candidates •City may not limit a candidate’s contribution of personal funds to the candidate’s own campaign •City may not impose aggregate contribution limits (the amount a contributor may contribute to all candidates or committees) 8 Legal Standards •Campaign contribution limits must be closely drawn to avoid unnecessary abridgement of First Amendment rights –Not so low they: •Restrict a candidate’s ability to raise the necessary funds for a competitive election •Restrict a political party’s ability to help its candidate get elected 9 Legal Standards •In assessing the validity of campaign contribution limits, courts consider: –Whether limits are substantially lower than limits previously upheld –Whether limits are substantially lower than other comparable jurisdictions’ limits (Exhibit 8) –Whether limits are adjusted for inflation •Subcommittee recommendations comply with legal standards 10 AB 571 Default Limits •Same as limits applicable to State Senate or State Assembly offices •$4,900 per election for all elective city offices •Candidate’s loans to candidate’s own campaign may not exceed an outstanding balance of $100,000 •Amounts adjusted for inflation in odd-numbered (non-election) years 11 Recommended Contribution Limits – Mayor Pro Tem Blackburn •City contribution limits match AB 571 default limits •Candidate loan limits to be determined by the City Council 12 Recommended Contribution Limits – Council Member Schumacher •Contribution limits for mayor, city treasurer, and city clerk = $3,100 •Contribution limits for council member = $900 •Candidate loan limits = not to exceed an outstanding balance of $10,000 13 Other Provisions •No cash contributions of $100 or more (moved from Chapter 1.13) •Remaining provisions match AB 571 provisions –Limits apply to contributions from one candidate to another –Candidate may carry over contributions from one election to another for the same office 14 Other Provisions –No contribution limits for a candidate- controlled committee formed to oppose •Qualification of a recall measure •Recall election –Post-election contributions permitted •Subject to contribution limits •Not to exceed outstanding election debt 15 Other Provisions –Candidates may transfer funds from one candidate-controlled committee to another •Must comply with specific accounting requirements •Transfers may not allow any contributor to exceed contribution limits 16 Clarification Question Proposed Section 1.15.060(A)(2): “A candidate … may transfer campaign funds from one of the candidate’s controlled committees to the candidate’s controlled committee for elective city office, provided … [¶] … [¶] The transferred contributions are attributed to specific contributors to the campaign contribution account from which they were transferred.Contributions must be allocated and attributed to individual contributors on either a “first in, first out” or “last in, first out” basis.” 17 Proposed Clarification Proposed Section 1.15.060(A)(2): “A candidate … may transfer campaign funds from one of the candidate’s controlled committees to the candidate’s controlled committee for elective city office, provided … [¶] … [¶] The transferred contributions are attributed to specific contributors to the campaign contribution account from which they were transferred.Contributions must be allocated and attributed to each specific contributor on either a “first in, first out” or “last in, first out” basis.” 18 Violations and Enforcement •Misdemeanor •Subject to other civil and criminal remedies available under the Political Reform Act •Enforced by the San Diego County District Attorney’s Office 19 Effective Date and Transition •Ordinance effective 30 days after adoption •Transition for existing campaigns (based on FPPC AB 571 guidance) -Current elected officials running for same office or different office may carry over campaign funds without attribution -Funds raised before Jan. 1, 2021 = no limits 20 Transition –Funds raised after Jan. 1, 2021 = no further contributions allowed from a contributor who has reached or exceeded AB 571 limits –Funds raised after Ch. 1.15 effective date = no further contributions allowed from a contributor who has reached or exceeded Ch. 1.15 limits 21 Expenditure Limits •No expenditure limits proposed in Ch. 1.15 –City may not limit a candidate’s expenditures from candidate’s personal funds –City may not limit a candidate’s overall campaign expenditures except as a condition of voluntary participation in a public financing program 22 Public Financing Programs •Jurisdictions with voluntary public financing programs include: Berkeley, Los Angeles, Oakland, Sacramento, and San Francisco •Public financing programs are subject to the highest degree of legal scrutiny •Cannot discourage/limit a non-participating candidate from using campaign funds for campaign speech 23 Recommended Action •Introduce an ordinance amending CMC Chapter 1.12 –Elections •Introduce an ordinance amending CMC Chapter 1.13 –Election Campaign Disclosures •Introduce an ordinance adding CMC Chapter 1.15 –Campaign Contribution Limits 24 Election-Related Ordinances Cindie McMahon, Assistant City Attorney Sheila Cobian, Assistant to the City Manager April 6, 2021