CITY OF REDONDO BEACH
BUDGET RESPONSE REPORT #58
June 15, 2021
Question:
What are possible options for investigating financial violations related to campaign contributions?
Response:
City Ordinance 3184-18 (attached) was adopted on January 18, 2019 to "place realistic and enforceable limits on the amounts persons may contribute to political campaigns in municipal elections" to "prevent the actuality or appearance of corruption in the election process" of which the ordinance limits are imposed on candidates for the positions of Mayor and City Council. Subsequently, Assembly 571 was enacted to amend the Political Reform Act in October 2019, and effective January 1, 2020 affecting campaign contribution limits for elective offices not covered by local ordinance. This statute was not in place when the City Council enacted our ordinance. The FPPC advises they conduct investigations only on alleged state law campaign finance violations not covered by City Ordinance (City Attorney, City Clerk, City Treasurer, and School Board) and advised that local ordinances are to be investigated by the local jurisdiction.
Due to the fact that the City Attorney's Office would handle the prosecution of violations as misdemeanors, they cannot also conduct the investigations leading to prosecution.
California City Clerks for cities with campaign finance ordinances were queried for methods of violation investigations. Of the five responses received, the method of investigations ranged from in-house code enforcement to outside contracted investigation firms. Two of the five cities that responded have a City Council-appointed ethics boards/commission that review alleged violations that work in concert with outside firms.
CITY METHOD OF INVESTIGATION
Berkeley Our Fair Campaign Practices Commission was created specifically to enforce the campaign finance ordinance. Cit Attorney's Office supports the commission and does th
Chula Vista Our Board of Ethics appoints a panel of outside attorneys to review complaints.
Rohnert Park We currently use our code compliance department to enforce the ordinance.
Sacramento We have an Ethics Commission that oversees campaign finance and the evaluator/investigator (attorney) is hired by them by RFQ process.
BRR #58
Santa Monica Complaints received by City Clerk who works with my City Attorney's Office to send a letter to the filer. Works with the Attorney's Office to bring the filer into compliance, fine or refer them to the District Attorney's Office. (But the District Attorney's Office has indicated they can't file such cases.)
In summary, because the City of Redondo Beach has its own local campaign contribution limits applicable to the Mayor and City Council campaigns, the FPPC will not investigate violations for these campaigns. Should the City Council wish to allocate funds to retain outside investigators/counsel to investigate Mayor/Council campaign violations, it is difficult to estimate a dollar amount to deal with an unknown number of violations that may be alleged. However, if pressed for a placeholder dollar amount, staff would suggest $50,000 should the City Council wish to allocate some resources. Another possible alternative could be to rescind ordinance 3184-18 which would enable the FPPC to investigate alleged campaign violations of State law.
Attachment A: Ordinance 3184-18
Attachment B: Campaign Contribution Limits current summary BRR #58
Attachment A
ORDINANCE NO. 3184-18
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF REDONDO BEACH, CALIFORNIA, AMENDING TITLE
2, CHAPTER 2 OF THE REDONDO BEACH MUNICIPAL
CODE REGARDING CAMPAIGN CONTRIBUTION LIMITS
FOR ELECTIONS
WHEREAS, the problem of campaign expenditures has become a serious reality of American politics and campaigns in the City of Redondo Beach are not excepted; and WHEREAS, incidental to the high cost of election campaigning is the problem of ortraps, influence, real or potential, exeroised by campaign contributors over elected WHEREAS, it is important to place reasonable and enforceable limits on the amounts that persons may contribute to political campaigns in municipal elections for the prevention of corruption and the appearance of corruption spawned by the real or imagined coercive influence of large financial contributions on candidates' positions and on their actions if elected to office.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. AMENDMENT OF CODE. Title 2, Chapter 2, Sections 2-2.301 through 2-2.309 of the Redondo Beach Municipal Code are hereby added to read as follows:
"Chapter 2 ELECTIONS
2-2.301 Purpose
It is the intent of the City Council in enacting this Article to place realistic and enforceable limits on the amounts persons may contribute to political campaigns in municipal elections. The City Council finds that the provisions of this Article are necessary to prevent the actuality or appearance of corruption in the election process. 2-2.302 Definitions
Unless otherwise defined in this chapter, words and phrases used hereinafter shall have the same meaning as defined in the Political Reform Act of 1974 which is codified in Title 9 of the California Government Code as it now exists or may hereafter be amended.
2-2.303 Campaign contribution limits: Candidates for City Council For general municipal and runoff elections, no person shall make to any candidate for City Council or the controlled committee of such a candidate, and no such candidate or the candidate's controlled committee shall accept from any such person, a contribution or contributions totaling more than One Thousand dollars ($1000.00) for the ORDINANCE NO. 3184-18
AMENDING TITLE 2, CHAPTER 2 - CAMPAIGN CONTRIBUTIONS
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Attachment A
general municipal election and One Thousand dollars ($1000.00) for the runoff election.
The One Thousand dollar ($1000.00) limit specified above shall be adjusted in June of every odd numbered year commencing in 2019 for changes in the consumer price index for the Los Angeles Area, CPI-U rounded to the nearest $50.00. Nothing herein shall be construed to restrict a candidate from contributing his or her own funds or assets to his or her campaign.
2-2.304 Campaign contribution limits: Candidates for Mayor For general municipal and runoff elections, no person shall make to any candidate for any of the office of Mayor or the controlled committee of such a candidate, and no such candidate or the candidate's controlled committee shall accept from any such person, a contribution or contributions totaling more than Two Thousand, Five Hundred dollars ($2,500.00) for the general municipal election and Two Thousand, Five Hundred dollars ($2,500.00) for the runoff election. The Two Thousand, Five Hundred dollar ($2,500.00) limit specified above shall be adjusted in June of every odd numbered year commencing in 2019 for changes in the consumer price index for the Los Angeles Area, CPI-U rounded to the nearest $50.00. Nothing herein shall be construed to restrict a candidate from contributing his or her own funds or assets to his or her campaign. 2-2.305 Loans
(1) A loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limitations of this Chapter. (2) Every loan to a candidate's controlled committee shall be by written agreement.
(3) Notwithstanding any other provision of this Section 2-2.306, a candidate for City Council shall not loan to his or her campaign, funds in excess of Fifteen Thousand dollars ($15,000.00) in a general municipal election and Fifteen Thousand dollars ($15,000.00) in a runoff election.
(4) Notwithstanding any other provision of this Section 2-2.306, a candidate for Mayor shall not loan to his or her campaign, funds in excess of Twenty-Five Thousand dollars ($25,000.00) in a general municipal election and Twenty-Five Thousand dollars ($25,000.00) in a runoff election.
(5) Nothing herein shall be construed to restrict a candidate from contributing his or her own funds or assets to his or her campaign.
2-2.306 Prohibition on nonelection cycle contributions
No candidate or the controlled committee of such a person shall accept any contribution except during the election cycle in which the candidate or officeholder intends to run for or be a write-in candidate for the office for which the contribution is made. Election cycle means that period commencing with January 1 of the even numbered year immediately preceding the general municipal election for that office and ending six (6) months after the general municipal election. For a special election, the ORDINANCE NO. 3184-18
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Attachment A
election cycle commences with the declaration of a vacancy in an elective office and ends six (6) months after the special election date.
2-2.307 Return of contributions
A contribution will not be considered to be received or accepted if it is not negotiated or deposited, and in addition it is returned to the donor within fourteen (14) days of receipt.
2-2.308 Family Contributions
Contributions from spouses shall be treated as contributions by separate persons and shall not be aggregated. Contributions by children under the age of eighteen (18) years of age shall be treated as contributions by their parents (or legal guardians) and attributed one-half (1/2) to each parent (or legal guardian) or the total amount to a single parent (or legal guardian).
2-2.309 Violations; Misdemeanor
Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor."
SECTION 2. EXEMPT FROM CEQA. The City Council determines that this ordinance is exempt from review under the California Environmental Quality Act (Cal.
Pub. Regs. Code Section 15000, et seq.) because the only potential physical effect on the environment that could foreseeably result from its implementation is a reduction in environmental impacts associated with vehicle traffic including, but not limited to, traffic congestion and greenhouse gas emissions. Such a reduction in the use or operation of an existing City street or property is categorically exempt from further CEQA review under Cal. Code Regs. Title 14, Section 15301. This ordinance, therefore, is an action that does not have the potential to cause significant effects on the environment.
SECTION 3. INCONSISTENT PROVISIONS. Any provisions of the Redondo Beach Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith, to the extent of such inconsistencies and no further, are hereby repealed.
SECTION 4. SEVERANCE. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, SECTION 5. PUBLICATION AND EFFECTIVE DATE. This ordinance shall be published by one insertion in The Beach Reporter, the official newspaper of said city, and same shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.
ORDINANCE NO. 3184-18
AMENDING TITLE 2, CHAPTER 2 - CAMPAIGN CONTRIBUTIONS
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Attachment A
PASSED, APPROVED AND ADOPTED this 8th day of January, 2019.
SCal
Mayor William C. Branc
APPROVED AS TO FORM: ATTEST:
Mill w. Ill
Michael W. Webb, City Attorney Eleanor Manzano, CMO, City Clerk ORDINANCE NO. 3184-18
AMENDING TITLE 2, CHAPTER 2 - CAMPAIGN CONTRIBUTIONS
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BRR #58A
Attachment A
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF REDONDO BEACH
1, Eleanor Manzano, City Clerk of Redondo Beach, California, do hereby certify that the foregoing Ordinance No. 3184-18 was duly introduced at a regular leeting of the City Council held on the 18th day of December, 2018, and wa uly approved and adopted at a regular meeting of said City Council held on th 8th day of January, 2019, by the following roll call vote:
AYES: NEHRENHEIM, LOEWENSTEIN, HORVATH
NOES: GRAN, EMDEE
ABSENT: NONE
ABSTAIN: NONE
Clean Mana
Eleanor Manzano, CMC
City Clerk
ORDINANCE NO. 3184-18
AMENDING TITLE 2, CHAPTER 2 - CAMPAIGN CONTRIBUTIONS
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Attachment B
CAMPAIGN CONTRIBUTION LIMITS
Contest Contribution Limits - per Election Personal Loans Mayor $2,550.00 $25,000
City Council $1,000.00 $15,000
City Attorney $4,700.00 (thru 12/31/20) $100,000
$4,900.00 (eff. 1/1/2021)*
School Board Member $4,700.00 (thru 12/31/20) $100,000
$4,900.00 (eff. 1/1/2021)*
• On January 8, 2019 the City Council adopted Ordinance No. 3184-18 regarding Campaign Contribution limits for Candidates for Mayor and for City Council, which are to be adjusted every June of odd-numbered years commencing June 2019 subject to Los Angeles Area Consumer Price Index (CPI-U).
• Effective January 1, 2020, California Assembly Bill 571 came into effect, which amends Government Code sections pertaining to campaign contribution limits that apply to elective offices that do not have limits under City ordinance. Therefore, contribution limits for the Offices of City Attorney, City Clerk, City Treasurer, and School Board are subject to the state law.
See Section 17 for Full Text of California Government Code 85300 - 85321 (Article 3 of Chapter 5, Title 9 of Political Reform Act). Assembly Bill 571 adds or amends Government Code Sections 85301, 85305-85307, and 85315-85318.
*Effective January 1, 2021, per the FPPC, the adjusted total Campaign Contribution limit for these offices is $4900.00. If a single contributor gives $4700 up to December 31, 2020, they may only give an additional $200 on or after January 1, 2021.
GME 2021(11/2020)
BRR #58B