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HomeMy WebLinkAbout2021-04-13; City Council; 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 CODEORDINANCE 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 1.16.010 Purpose and intent. 1.15.020 Definitions. 1.15.030 Cash contributions prohibited. April 13, 2021 Item #5 Page 10 of 14 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. 1.15.030 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 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 Consumers (CPI-U) for the San Diego region. Those adjustments shall be calculated based on the total April 13, 2021 Item #5 Page 11 of 14 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. 1.16.050 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 13, 2021 Item #5 Page 12 of 14 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. 1.16.110 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 II II II April 13, 2021 Item #5 Page 13 of 14 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 13th day of April, 2021, by the following vote, to wit: AYES: Blackburn, Acosta, Bhat-Patel. NAYS: Hall. ABSENT: Schumacher. APPROVED AS TO FORM AND LEGALITY: 6)-2 CELIA A. BREWER, City Attorney MATT HALL, Mayor Z7a- 7/1/ki4, for BARBARA ENGLESON, City Clerk (SEAL) April 13, 2021 Item #5 Page 14 of 14