November 16, 2021
Campaign Finance
Items 3.5 and 3.6
• Campaign Advertisements
• Public Financing
• Foreign-Influence in Elections
• Contribution Limits on Business Entities
• Conflicts of Interests
Council Direction
• Disclaimers on printed “electioneering communications” sent within 90 days of an election
• Disclaimers on spoken form communications must have “paid for by” disclaimer
City Disclaimers
Notice to Voters
(Required by the City of San José)
This electioneering communication is not authorized or approved by any candidate for city office or by any election official. It is paid for by (committee name and committee identification number). (Address, city, state).
Total cost of this mailing is (amount).
• Disclaimers on many kinds of campaign ads
• More extensive than City
DISCLOSE Act
• Follows DISCLOSE ACT
• Statements substantially similar
- “Ad paid for by [insert committee name]”
- “Not authorized by a candidate or committee controlled by a candidate”
• May print in 10-point font
Proposed Ordinance
• DISCLOSE ACT
- top 3 contributors of $50,000 or more
• Proposed Ordinance
- top 3 contributors of [$5,000?] or more
• Disclaimers permitted limit on political speech
• Cannot take up too much room
“Major Committee Funding”
Proposed Ordinance
• Filing requirements for certain advertisements
• Aligning use of Surplus Funds with State law
• Technical changes
Proposed Ordinance
• San Francisco - 6:1 Matching Funds
• Los Angeles - 6:1 Matching Funds
• Oakland - Reimbursement
• Seattle - “Democracy Voucher”
Public Financing
• Foreign entities and nationals cannot contribute
• But Domestic subsidiaries can contribute
• Seattle and St. Petersburg, Florida have passed ordinances to further limit “foreign-influence” in elections
Foreign Influence
• No contributions to or expenditures on candidates
• Applies only to corporations
- 1% or more owned by a single foreign entity
- 5% or more owned by multiple foreign entities
- Foreign owner participates in decision-making on political activity
• Corporations must certify they are not foreign-influenced Seattle
Foreign Influence
• Applies to business entities
• Higher threshold to qualify
- 5% or more owned by a single foreign entity
- 20% or more owned by multiple foreign entities
- Foreign owner participates in decision-making on political activity
• Corporations must certify they are not foreign-influenced St. Petersburg
Foreign Influence
• Campaign contributions protected by First Amendment
• May limit contributions to prevent quid pro quo corruption • Restrictions must be “closely drawn”
• More than “mere conjecture“
Constitutional Issues
Contribution Bans
• Contribution limit on all donors
- $700 for Council
- $1400 for Mayor
• No contributions from Cardrooms
City Limits
Contribution Bans
• No contributions from persons of for-profit entities that are:
- Substantial Contractor
- Substantial Developer
- Substantial Landlord/Property Manager
“Fair Elections Initiative”
Contribution Bans
• No contribution from a party or participant with
• “License, permit, or other entitlement for use pending and for 3 months thereafter
- Land use
- Contracts (other than low cost bid, labor, personal employment) - Franchises
Levine Act (Gov. Code 84308)
Contribution Bans
• May not vote or use official position to influence decision • In a “license, permit, or other entitlement for use”
• If received a contribution within preceding 12 months • $250 under Levine Act
- City threshold?
Campaign Contributions
Conflict of Interest
• Applies only to contributions received for Councilmember’s own candidacy
• Will not apply to:
- general policy decision
- Participation legally required
- Councilmember removes conflict within 30 days
• Disclosure Requirements
Conflict of Interest
• Violation would not affect decision
• Board of Fair Campaign and Political Practices
- Can investigate
- Reprimand, levy fines, or require corrective action
Enforcement
Conflict of Interest