City Council Staff Report Page 1 of 3 June 9, 2026
Staff Report
Agenda Item No. 6.4
DATE: June 9, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Kris Kokotaylo, City Attorney
SUBJECT: Waive Full Reading and Introduce by Title Only an Ordinance Amending Chapter 2.06 “Campaign Contribution Limitations in Municipal Elections” of the Union City Municipal Code
EXECUTIVE SUMMARY
The Union City Municipal Code (“UCMC”) establishes local campaign contribution requirements and limitations for municipal elections through Chapter 2.06 “Campaign Contribution Limitations in Municipal Elections” (the “Code”). The Code regulates contributions to candidates and candidate-controlled committees and imposes contribution limits.
It came to staff’s attention that certain provisions of the Code may be outdated and require revisions. Staff brought proposed revisions to the Legislation and Policy Committee (the “Committee”) on June 1 for consideration and recommendation. The Committee agreed with the proposed revisions and recommended forwarding a proposed ordinance to the City Council for consideration.
In order to align the Code with constitutional law governing campaign finance, in particular, contributions made to independent expenditure committees, and in order to make other revisions for consistency, staff recommends that the City Council waive full reading and introduce an ordinance amending Chapter 2.06 “Campaign Contribution Limitations in Municipal Elections” of the Union City Municipal Code.
STRATEGIC PLAN ALIGNMENT
This action aligns with Goal B. Governance and Organization Effectiveness of the Strategic Plan.
BACKGROUND
The Code establishes the City’s local campaign contribution limits applicable to municipal elections of the Mayor and City Council. The Code is intended to limit the potential of undue influence in municipal elections by imposing contribution restrictions, requiring disclosure, and establishing enforcement mechanisms.
Agenda Item No. 6.4
City Council Staff Report Page 2 of 3 June 9, 2026
The Code limits campaign contributions to candidates and candidate-controlled committees to $800 per person during an election period and exempts a candidate’s own money or property used in furtherance of the campaign. Notably, the Code also limits contributions to independent expenditure committees.
Finally, the Committee reviewed provisions of the Code that address committee officers and their ability to serve on other committees, and that treat loans as contributions only for special elections (but not general elections), and, upon consideration and staff recommendation, recommended revising them.
DISCUSSION
The proposed ordinance amends Chapter 2.06 while retaining the ordinance’s overall structure and purpose. As currently drafted, the provisions imposing campaign contribution limitations on independent expenditure committees are likely inconsistent with constitutional case law recognizing constitutional protection for activities not coordinated with a candidate, distinguishing such expenditures from those made directly to candidates or to committees controlled by the candidate. Specifically, Supreme Court precedent has held that limits on independent expenditures do not pose a risk of corruption that may exist for contributions made to candidate committees or candidates.
In response to this, the proposed ordinance would amend Chapter 2.06 to make several deletions and remove references to contribution limits imposed on independent expenditure committees. The proposed ordinance, if adopted, would no longer impose a contribution limit on such committees, in line with case law. The Code will continue to regulate contributions made to candidates and candidate-controlled committees.
Other minor revisions to the Code include removing text prohibiting committees supporting or opposing the same candidate from sharing officers or acting in concert.
This is not directly related to contributions and may be duplicative of existing regulations that address the ability of independent expenditure committees to work in concert with candidates.
Finally, the proposed ordinance would remove a provision that treats loans to committees as contributions only during special elections, and instead provide that loans made during special elections are treated the same as loans made during general elections. Provided that the loan is repaid within one year following the election, it will not be treated as a contribution.
FISCAL IMPACT
There is no direct fiscal impact associated with approving the proposed ordinance.
RECOMMENDATION
Staff recommends that the City Council waive full reading and introduce by title only an ordinance amending Chapter 2.06 “Campaign Contribution Limitations in Municipal Elections” of the Union City Municipal Code.
Agenda Item No. 6.4
City Council Staff Report Page 3 of 3 June 9, 2026
Prepared by: Kristopher Kokotaylo, City Attorney
Submitted by: Kristopher Kokotaylo, City Attorney
Attachments
1. Draft Ordinance
2. Exhibit A - Proposed Amendments to Chapter 2.06, “Campaign Contribution Limitations in Municipal Elections,” of the Union City Municipal Code