B0785-0001\2617419v2.doc
AGENDA REPORT
Meeting Date: February 8, 2022
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Subject: AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING
DISCLOSURE REQUIREMENTS FOR BALLOT MEASURE
COMMITTEES AND AMENDING THE BEVERLY HILLS MUNICIPAL
CODE
Attachments: 1. Ordinance
2. Legislative Digest
RECOMMENDATION
The City Attorney recommends that full reading be waived and that this ordinance be again introduced by title only.
INTRODUCTION
On January 18 the City Council introduced an ordinance to update the City’s campaign advertising disclosure requirements for advertisements from both ballot measure committees and independent expenditure committees. At that meeting, the City Council reduced the threshold for the three “top contributors” who are required to be disclosed from $10,000 to $1,000 and also instructed the City Attorney to report back every January with any changes that are made to the State’s DISCLOSE (Democracy Is Strengthened by Casting Light on Spending in Elections) statue.
There was some discussion regarding the application of rules related to Limited Liability Companies (“LLCs”). The Council seemed to be in agreement with adopting the requirements of Government Code section 84109 imposing disclosure requirements on LLCs. The Council also favored setting the threshold for the disclosure requirements at $1,000. However, the discussion also included concern about applications of this disclosure requirement to LLCs who were not engaging in activities in Beverly Hills. I read draft language into the record to try and address this concern. The City Council introduced this ordinance with that revised language. However, immediately after the D-7
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meeting I realized that there were definitions that could address this issue. Therefore this section has been revised to apply only to LLCs who qualify as a committee or a ballot measure committee in the City of Beverly Hills. Because this is a change to the ordinance (other than a typographical or clerical change), this ordinance is being presented to the City Council for introduction again. A legislative digest highlighting the January 18th changes is included as Attachment 2 to this report.
DISCUSSION
Since 2010 the City has had an ordinance that covered campaign disclosure requirements for ballot measure committees. This legislation forced ballot measure committees to disclose in their advertisements their three “top contributors.” Top contributors were defined as those contributors who donated $10,000 or more. In 2018 the State legislature adopted the DISCLOSE (Democracy Is Strengthened by Casting Light on Spending in Elections) act which incorporated many of the concepts embodied in the 2010 ordinance. Thus, on January 18, 2022 the City Council introduced the proposed ordinance updating the City’s campaign disclosure requirements to mirror the DISCLOSE act, apply it to independent expenditure committees as well as ballot measure committees, and reduce the definition of “top contributors” to anyone who had contributed more than $1,000. As a result, if one of the three top contributors to a ballot measure committee or an independent expenditure committee donated between $1,000 and $10,000, they would need to be identified as a top contributor.
Additionally, at that January 18, 2022 meeting, the Council also unanimously supported adopting the provisions of California Government Code section 84109 to require LLCs to disclose to the City Clerk anyone who owns more than 10% of the LLC and anyone who makes a certain contribution. The Council also voted to lower the threshold contribution from $10,000 to $1,000. Late into the evening, closer to midnight, there was some discussion concerning whether the municipal code section was overbroad and captured LLCs that were not involved in Beverly Hills elections. At the time, I read into the record some language to address this issue and the City Council introduced the ordinance with that revised language. However, immediately after the meeting I recognized that there were definitions that addressed this issue. Therefore, I have revised this section again to incorporate the definitions that were already contained in the Beverly Hills Municipal Code.
However, pursuant to Government Code section 36934, if changes are made to an ordinance after its introduction, then the ordinance must be reintroduced. Therefore, this ordinance is presented for reintroduction with the revised language.
If the City Council introduces this ordinance on February 8, 2022 then the ordinance will be presented for adoption at the February 15, 2022 meeting and will take effect immediately as an ordinance that relates to an election.
FISCAL IMPACT
The proposed update to this ordinance would not have any material fiscal impact.
Laurence S. Wiener,
City Attorney
Approved By
Attachment 1
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B0785-0001\2445358v7.doc
ORDINANCE NO. 22-O-_____
AN ORDINANCE OF THE CITY OF BEVERLY HILLS
AMENDING DISCLOSURE REQUIREMENTS FOR
BALLOT MEASURE COMMITTEES AND AMENDING
THE BEVERLY HILLS MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY
ORDAINS AS FOLLOWS:
Section 1. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to replace the definition of ADVERTISEMENT as follows:
“ADVERTISEMENT shall have the same meaning as set forth in Government Code Section 84501”
Section 2. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to add the definition of Cumulative Contribution as follows:
“CUMULATIVE CONTRIBUTIONS means the cumulative amount of contributions received by a committee beginning 12 months before the date of expenditure and ending 7 days before the time advertisements are sent to the printer or broadcaster.”
Section 3. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to add the definition of “Top Contributors” as follows:
“TOP CONTRIBUTORS shall have the same meaning as set forth in Government Code Section 84501 except that the threshold for a Top Contributor shall be one thousand dollars ($1,000) rather than fifty thousand dollars ($50,000).” Section 4. Section 1-8-5 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended and restated as follows:
“A. In addition to the requirements of this chapter, every committee and ballot measure committee, shall comply with the registration and reporting requirements set forth in the political reform act applicable to committees. In addition to other reports -2-
B0785-0001\2445358v7.doc
required by law, any committee and ballot measure committee that makes a qualifying payment shall, by 5:30 of the third day after making the first such qualifying payment, file in the office of the city clerk a letter containing the name and address of the committee, the full street address of the committee, the FPPC/Secretary of State identification number of the committee, the name of the treasurer of the committee, if applicable, the identifying letter or number of the city ballot measure(s) supported or opposed by such qualifying payment and, if applicable the candidate supported or opposed by such qualifying payment. It shall be unlawful for any person or committee to knowingly file or publish any name or street address for a committee that is not the complete and accurate name and/or street address of the committee.
B. In addition to any preelection statement required by the Political Reform Act, every committee and ballot measure committee shall file a preelection statement for the following periods at the following times:
1. For the period ending thirty (30) days before the election, the statement shall be filed not later than twenty five (25) days before the election.
2. For the period ending ten (10) days before the election, the statement shall be filed no later than five (5) days before the election.
Any contribution from any person of more than one thousand dollars ($1,000.00), individually or in the aggregate, that is made less than ten (10) days before the election shall be reported to the city clerk on the next business day following receipt of the contribution.
C. Every advertisement in support of or opposition to any city ballot measure placed by a ballot measure committee, or in an advertisement in support of or in opposition to a city council or city treasurer candidate or candidates placed by a committee, other than a political party committee or a candidate controlled committee, shall comply with the disclosure requirements contained in Article 5, Disclosure in Advertisements, of Chapter 4, Campaign Disclosure, of Title 9, Political Reform, of the Government Code beginning with section 84501 and the accompanying regulations of the Fair Political Practices Commission.
1. For the purposes of this Subsection C, any reference in the Government Code to “top contributors” shall mean top contributors as defined in this Chapter of the Beverly Hills Municipal Code.
D. Every advertisement in support of or opposition to a city ballot measure or every advertisement in support of or opposition to a city council or city treasurer candidate or candidates placed by a committee, other than a political party committee or a candidate controlled committee, shall include a statement indicating that additional information about contributions to the ballot measure committee or other committee paying for the advertisement is available at www.beverlyhills.org. The statement shall be substantially in the following form: “Funding details at www.beverlyhills.org.” -3-
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1. This requirement shall be waived for any advertisement that is required to have a similar reference to funding details at the Secretary of State’s website.
E. The city clerk shall maintain an online publicly available data base of all reports submitted by the ballot measure committees and other committees to the city clerk.
F. In addition to the other requirements of this Section, every advertisement in support of, or opposition to one or more city ballot measures shall contain the official title of the city ballot measure, as provided by the City Attorney pursuant to Elections Code Section 9203, and a clearly audible or legible form.
1. If the title of the ballot measure exceeds 25 words, then the proponent or proponents of the ballot measure may request a shorter title. The City Attorney, within 2 business days, shall provide a title that does not exceed 25 words.
2. The shortened ballot title prepared by the City Attorney shall be a true and impartial statement of the purpose of the proposed measure and shall not contain arguments nor be likely to cause prejudice for or against the proposed measure. The shortened ballot title shall be used solely for the purposes of compliance with this Section, and the City Attorney’s original title and summary shall continue to be used to comply with all requirements of Article 1 of Chapter 3 of Division 9 (commencing with section 9200) of the Elections Code and for all other requirements imposed by state law.
3. A radio advertisement, or other advertisement that is solely audible, of less than 45 seconds shall be exempt from this requirement.
G. A limited liability company that qualifies as a committee or a ballot measure committee shall file a report and amendments to that report with the City Clerk in accordance with the requirements of Government Code section 84109 whenever there is a capital contribution to the limited liability company of one thousand dollars ($1000) or more.
1. The report and amendments to the report shall be filed with the City Clerk by the end of the next business day after receiving a contribution of one thousand dollars ($1000) or more. Provided, however, that any limited liability company that qualifies as a committee or a ballot measure committee and is required to file a report pursuant to California Government Code section 84109 shall also concurrently file the same report with the City Clerk.
H. All disclosures shall conform to the requirements set forth in the Political Reform Act, unless a more stringent requirement is included herein. In that instance, committees shall comply with the applicable requirement in this Chapter.” -4-
B0785-0001\2445358v7.doc
Section 5. The City Attorney’s Office shall report no later than January of each year any changes made to the disclosure requirements contained in Article 5, Disclosure in Advertisements, of Chapter 4, Campaign Disclosure, of Title 9, Political Reform, of the Government Code beginning with section 84501 and the accompanying regulations of the Fair Political Practices Commission.
Section 6. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage, in accordance with Section 36933 of the Government Code; shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk’s certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.
Section 7. Pursuant to California Government Code Section 81009.5, the City Clerk shall cause a copy of this ordinance to be forwarded to the California Fair Political Practices Commission.
Section 8. Effective Date. The City Council hereby declares that this Ordinance relates to an election and shall take effect immediately upon its adoption.
Adopted:
Effective:
PASSED, APPROVED and ADOPTED this day of , 2022.
__________________________
ROBERT WUNDERLICH
Mayor of the City of Beverly Hills,
California
ATTEST:
_____________________________ (SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_____________________________
LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
Attachment 2
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B0785-0001\2445358v6.doc
ORDINANCE NO. [LEGISLATIVE DIGEST]
AN ORDINANCE OF THE CITY OF BEVERLY HILLS
AMENDING DISCLOSURE REQUIREMENTS FOR
BALLOT MEASURE COMMITTEES AND AMENDING
THE BEVERLY HILLS MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY
ORDAINS AS FOLLOWS:
Section 1. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to replace the definition of ADVERTISEMENT as follows:
“ADVERTISEMENT shall have the same meaning as set forth in Government Code Section 84501”
Section 2. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to add the definition of Cumulative Contribution as follows:
“CUMULATIVE CONTRIBUTIONS means the cumulative amount of contributions received by a committee beginning 12 months before the date of expenditure and ending 7 days before the time advertisements are sent to the printer or broadcaster.”
Section 3. Section 1-8-2 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended to add the definition of “Top Contributors” as follows:
“TOP CONTRIBUTORS shall have the same meaning as set forth in Government Code Section 84501 except that the threshold for a Top Contributor shall be one thousand dollars ($1,000) rather than fifty thousand dollars ($50,000).” Section 4. Section 1-8-5 of Chapter 8 of Title 1 of the Beverly Hills Municipal Code is hereby amended and restated as follows:
“A. In addition to the requirements of this chapter, every committee and ballot measure committee, shall comply with the registration and reporting requirements set forth in the political reform act applicable to committees. In addition to other reports -2-
B0785-0001\2445358v6.doc
required by law, any committee and ballot measure committee that makes a qualifying payment shall, by 5:30 of the third day after making the first such qualifying payment, file in the office of the city clerk a letter containing the name and address of the committee, the full street address of the committee, the FPPC/Secretary of State identification number of the committee, the name of the treasurer of the committee, if applicable, the identifying letter or number of the city ballot measure(s) supported or opposed by such qualifying payment and, if applicable the candidate supported or opposed by such qualifying payment. It shall be unlawful for any person or committee to knowingly file or publish any name or street address for a committee that is not the complete and accurate name and/or street address of the committee.
B. In addition to any preelection statement required by the Political Reform Act, every committee and ballot measure committee shall file a preelection statement for the following periods at the following times:
1. For the period ending thirty (30) days before the election, the statement shall be filed not later than twenty five (25) days before the election.
2. For the period ending ten (10) days before the election, the statement shall be filed no later than five (5) days before the election.
Any contribution from any person of more than one thousand dollars ($1,000.00), individually or in the aggregate, that is made less than ten (10) days before the election shall be reported to the city clerk on the next business day following receipt of the contribution.
C. Every advertisement in support of or opposition to any city ballot measure placed by a ballot measure committee, or in an advertisement in support of or in opposition to a city council or city treasurer candidate or candidates placed by a committee, other than a political party committee or a candidate controlled committee, shall comply with the disclosure requirements contained in Article 5, Disclosure in Advertisements, of Chapter 4, Campaign Disclosure, of Title 9, Political Reform, of the Government Code beginning with section 84501 and the accompanying regulations of the Fair Political Practices Commission.
1. For the purposes of this Subsection C, any reference in the Government Code to “top contributors” shall mean top contributors as defined in this Chapter of the Beverly Hills Municipal Code.
D. Every advertisement in support of or opposition to a city ballot measure or every advertisement in support of or opposition to a city council or city treasurer candidate or candidates placed by a committee, other than a political party committee or a candidate controlled committee, shall include a statement indicating that additional information about contributions to the ballot measure committee or other committee paying for the advertisement is available at www.beverlyhills.org. The statement shall be substantially in the following form: “Funding details at www.beverlyhills.org.” -3-
B0785-0001\2445358v6.doc
1. This requirement shall be waived for any advertisement that is required to have a similar reference to funding details at the Secretary of State’s website.
E. The city clerk shall maintain an online publicly available data base of all reports submitted by the ballot measure committees and other committees to the city clerk.
F. In addition to the other requirements of this Section, every advertisement in support of, or opposition to one or more city ballot measures shall contain the official title of the city ballot measure, as provided by the City Attorney pursuant to Elections Code Section 9203, and a clearly audible or legible form.
1. If the title of the ballot measure exceeds 25 words, then the proponent or proponents of the ballot measure may request a shorter title. The City Attorney, within 2 business days, shall provide a title that does not exceed 25 words.
2. The shortened ballot title prepared by the City Attorney shall be a true and impartial statement of the purpose of the proposed measure and shall not contain arguments nor be likely to cause prejudice for or against the proposed measure. The shortened ballot title shall be used solely for the purposes of compliance with this Section, and the City Attorney’s original title and summary shall continue to be used to comply with all requirements of Article 1 of Chapter 3 of Division 9 (commencing with section 9200) of the Elections Code and for all other requirements imposed by state law.
3. A radio advertisement, or other advertisement that is solely audible, of less than 45 seconds shall be exempt from this requirement.
G. A limited liability company that qualifies as a committee or a ballot measure committee shall file a report and amendments to that report with the City Clerk in accordance with the requirements of Government Code section 84109 whenever there is a capital contribution to the limited liability company of one thousand dollars ($1000) or more.
1. The report and amendments to the report shall be filed with the City Clerk by the end of the next business day after receiving a contribution of one thousand dollars ($1000) or more. Provided, however, that any limited liability company that qualifies as a committee or a ballot measure committee and is required to file a report pursuant to California Government Code section 84109 shall also concurrently file the same report with the City Clerk.
GH. All disclosures shall conform to the requirements set forth in the Political Reform Act, unless a more stringent requirement is included herein. In that instance, committees shall comply with the applicable requirement in this Chapter.” -4-
B0785-0001\2445358v6.doc
Section 5. The City Attorney’s Office shall report no later than January of each year any changes made to the disclosure requirements contained in Article 5, Disclosure in Advertisements, of Chapter 4, Campaign Disclosure, of Title 9, Political Reform, of the Government Code beginning with section 84501 and the accompanying regulations of the Fair Political Practices Commission.
Section 6. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage, in accordance with Section 36933 of the Government Code; shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk’s certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.
Section 7. Pursuant to California Government Code Section 81009.5, the City Clerk shall cause a copy of this ordinance to be forwarded to the California Fair Political Practices Commission.
Section 8. Effective Date. The City Council hereby declares that this Ordinance relates to an election and shall take effect immediately upon its adoption.
Adopted:
Effective:
PASSED, APPROVED and ADOPTED this day of , 2022.
__________________________
ROBERT WUNDERLICH
Mayor of the City of Beverly Hills,
California
ATTEST:
_____________________________ (SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_____________________________
LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager