TO:Andrew P. Powers, City Manager
FROM:Tracy M. Noonan, City Attorney
Laura B. Maguire, City Clerk
DATE:March 14, 2023
SUBJECT: Campaign Contribution Update
RECOMMENDATION:
1. Receive report regarding the City’s campaign contribution limits regulations and provide direction to staff regarding campaign contributions.
2. Find that this action is not a project as defined by the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time required to prepare the report is included in the Adopted FY 2022-23 General Fund Budget.
BACKGROUND:
At the July 6, 2021, regular City Council meeting during the biennial campaign contribution update, and at the May 17, 2022, City Council Goals meeting, City Council requested staff agendize discussion of a possible re-evaluation of the $500 campaign finance base limit as outlined in the City’s Campaign Finance Ordinance.
The City adopted a local campaign finance reform ordinance in 1998. Pursuant to a City Council Top Priority goal for FY 2013-14, the entire ordinance was extensively reviewed and updated in the Fall of 2013 for consistency with State regulations and other revisions directed by City Council. The update included an increase of the campaign contribution base limit to $500 and directed that the $500 threshold be re-evaluated every five years.
Campaign Contribution Update
March 14, 2023
Prior Limit Updates
Since adoption of the original campaign finance ordinance in 1998, the contribution limit has been reviewed/changed per the Consumer Price Index (CPI) as listed in the following table:
Year Amount
1999 $250
2001 No change
2003 $300
2006 $320
2008 $350
2010 $360
2012 $380
2013 $500
2015 $510
2017 $530
2019 $560
2021 $580
New Legislation
Recent legislation has also impacted campaign contribution limits for local elections. As of January 1, 2021, pursuant to Assembly Bill (AB) 571, the State campaign contribution limit applies by default to city candidates when the city has not already enacted laws addressing contribution limits. The current state campaign contribution limit is $5,500 per contributor, per election.
In addition, Senate Bill (SB) 1439 took effect January 1, 2023. SB 1439 extends the “Levine Act,” which is part of the Political Reform Act, to local elected officials. The new law prohibits city councilmembers from accepting, soliciting, or directing a campaign contribution of $250 or more if the donor is involved in a proceeding involving a license, permit, or other entitlement for use, including a contract award, that is pending before the agency. This prohibition continues for 12 months following the proceeding. Under SB 1439, city councilmembers shall also recuse themselves from any proceeding involving a license, permit, or other entitlement for use, including a contract award, if the member has received a campaign contribution from a person involved in the proceeding within the previous 12 months. The rule does not apply to labor contracts, personal employment contracts, or contracts that are competitively bid.
A recent Fair Political Practices Commission Opinion (Opinion) clarifies that SB 1439 affects contributions received after January 1, 2023. The Opinion also explains that SB 1439 provides a way for an elected official to remedy a situation Campaign Contribution Update
March 14, 2023
where they would have to recuse themselves. The bill’s language provides a public official a period in which a contribution may be returned so the official is not inherently prohibited from taking part in a proceeding based on a contribution they received. Because an official who accepts a contribution may not anticipate it will disqualify them from a subsequent proceeding, the statute expressly provides the opportunity to return the contribution. However, this return period is limited to 30 days after having knowledge of the contribution and proceeding.
Campaign Contributions in Ventura County Cities
Staff polled the cities in Ventura County to determine which cities adopted campaign contribution ordinances and the amounts of their limits. The table below lists them in contribution limit amount order.
City Limit
Fillmore $250
Ventura (City) Voluntary Ceiling Expenditure limit is $46,000 with a single source contribution not to exceed $350 for the candidates accepting the voluntary expenditure limits. For those
candidates NOT accepting the voluntary expenditure limits, their single source contribution shall not exceed $175
Oxnard $500
Thousand Oaks $580
Simi Valley $1,000
Camarillo $5,500 (AB 571 State Limit)
Moorpark $5,500 (AB 571 State Limit)
Ojai $5,500 (AB 571 State Limit)
Port Hueneme $5,500 (AB 571 State Limit)
Santa Paula $5,500 (AB 571 State Limit)
About half of the cities have enacted their own local campaign contribution limits. In comparison to Thousand Oaks, one city, Simi Valley, has a higher contribution limit; and three cities, Fillmore, Oxnard, and Ventura, have lower limits. Ventura has a voluntary expenditure ceiling and contribution limits. If the candidate adopts the voluntary expenditure ceiling, the contribution limit increases. The remaining cities in the County follow state law which limits contributions to $5,500.
Upon review of the last seven elections in the City (2012, 2014, 2015, 2016, 2018, 2020, and 2022), the average amount of money raised was $36,225 and the average amount spent on a campaign was $36,075. During the 2016, 2018, 2020, and 2022 general municipal elections, staff did not receive any comments from candidates regarding the amount of the City’s campaign contributions limit.
Campaign Contribution Update
March 14, 2023
DISCUSSION/ANALYSIS:
In the Fall of 2018, staff deferred the five-year re-evaluation process due to the November 2018 election and other pressing issues in the City. On September 24, 2019, City Council chose to maintain the $500 base limit and set the next re- evaluation for 2023.
Pursuant to Thousand Oaks Municipal Code (TOMC) § 1-13.03(a)(3) (Attachment #1), City Council shall adjust the contribution limits established in March of every odd-numbered year to reflect any increase or decrease in the California Consumer Price Index (CPI) since the last such adjustment of the contribution limit. Such adjustments shall be rounded to the nearest ten and no/100ths ($10.00) dollar amount.
The last adjustment to the campaign contribution limit was approved by City Council on July 6, 2021. For the 2021 update, staff calculated the new limit based on a 4.18 percent CPI from March 2021 representing the Los Angeles, Long Beach, and Anaheim Areas. This resulted in a $20 increase in the contribution limit from $560 to $580. Should City Council wish to maintain the $500 limit as the base limit, staff would again calculate any increase to the campaign contribution limit based on the March 2023 CPI for the Los Angeles, Long Beach, and Anaheim Areas. The U.S. Bureau of Labor Statistics will release the March CPI on March 14th, which would be brought to City Council later in 2023 for approval for the 2024 election cycle.
At this time, staff is requesting direction from City Council whether to continue with the $500 base limit or to set a new base limit for future elections. If City Council chooses to move forward with a new base limit, staff will return to City Council at a future meeting with the new ordinance for City Council’s approval.
Potential options for consideration include:
1. No change; continue to increase the limit pursuant to TOMC Section 1-
13.03(a)(3) based on CPI.
2. Increase the limit to a new figure that is not based on CPI.
3. Remove contribution limits from the City’s Ordinance and defer to the State limit.
4. Remove contribution limits from the City’s Ordinance and state that there is no contribution limit.
5. Change contribution limit to $249 to manage conflicts as outlined in SB 1439, but adjustable if amount in SB 1439 changes.
Campaign Contribution Update
March 14, 2023
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
B. Provide municipal government leadership which is open and responsive to residents, and is characterized by ethical behavior, stability, promoting public trust, transparency, confidence in the future, and cooperative interaction among civic leaders, residents, business representatives, and staff, while recognizing and respecting legitimate differences of opinion on critical issues facing the City.
Attachments:
Attachment #1 – TOMC Contribution Limits & Disclosure Requirements CCD:630-10\lm\H:\COMMON\Elections\Local Camp Ord\2023\Campaign Contribution Update Staff Report.docx