HomeMy WebLinkAbout17. Proposed Amendment to the City of Downey Campaign Finance Reform Ordinance - Introduce Ordinance1+�
CITY MANAGER
TO: • i`+B•` AND MEMBERS OF •
FROM: i' OFFICE
By: Yvette M. Abich Garcia, City Aftorni
OFFICECITY CLERK'S
By: Maria Alicia Duarte, CIVIC, City Clerk
PROPOSED AMENDMENT • THE CITY OF DOWNEY CAMPAIGN FINANC
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That the City Council introduce:
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In August 2011, the City Council adopted an ordinance regulating campaign contributions and
expenditures in local elections (Attachment 1). The ordinance established contribution limits
based on whether or not the candidate opted in or opted out of voluntary expenditure limits.
The ordinance originally provided the following
1. For Districts 1-4 elections, the contribution limit is $1,500 per person in a single election
if the candidate opted in to voluntary expenditure limits. If the candidate opted out of voluntary
expenditure limits, the contribution limit per person in a single election is $1,000.
2. For District 5, the contribution limit is $2,000 per person in a single election if the
candidate opted in to voluntary expenditure limits. If the candidate opted out of voluntary
expenditure limits, the contribution limit per person in a single election is $1,500.
3. The voluntary expenditure limits were:
Districts 1-4: $30,000
District 5: $50,000
CAMPAIGN FINANCE REFORM ORDINANCE
JANUARY 14, 2020
The ordinance provided that these amounts be adjusted annually pursuant to either: (1) the Los
Angeles -Long Beach -Anaheim, All Urban Consumers, Consumer Price Index for the prior 12 -
month period ending August 31St OR (2) $500 whichever is less and rounded to the nearest
$1,000 dollars. The City Clerk is required to publish the contribution and voluntary expenditure
limits no later than February 1 St of each year.
The ordinance also contains regulations regarding a candidate's receipt of loans and family
contributions and the use of a candidate's personal funds. A penalty provision was also
included in the ordinance.
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The City Attorney and City Clerk have tracked the implementation of the ordinance over the last
four election cycles (2012, 2014, 2016 and 2018) as well as monitored changes in state law and
new court cases. This is an area of the law that has continued to develop over time.
For the Council's consideration is a proposed amendment to the ordinance that (1) would
conform with changes to state statutes and case law governing campaign contributions and
voluntary expenditure limits; and (2) clarifies certain questions that were raised in the past by
candidates regarding the application/interpretation of certain provisions. Attached is a redline of
the proposed changes to the ordinance for the Council's review (Attachment 3).
Below is a summary of the substantive changes made to the ordinance for the Council's
consideration:
a. The purpose has been changed primarily to reflect current case law that
allows municipalities to enact their own campaign finance ordinances in order to address the
"appearance of quid pro quo corruption" and by incentivizing candidates to voluntarily opt -in to
voluntary contribution limits.
b. The definitions contained in Section 2942 are amended to conform to the
changes made to these terms in the Political Reform Act.
2. Separation of Contribution Limits from Voluntary Expenditure Limits.
The most significant change to the ordinance is that the contribution limits must be separate
from voluntary expenditure limits. Courts have now discouraged the practice of allowing higher
contribution limits for candidates who opt -in to expenditure limits (and lower contribution limits to
candidates who opt -out of expenditure limits). In Section 2943(b) of the new ordinance, there is
one contribution limit for Districts 1-4 and a separate contribution limit for District 5, neither tied
to opting in or opting out of voluntary expenditure limits.
In Section 2945(x) of the new ordinance, voluntary expenditure limits remain for Districts 1-4
and District 5. Candidates who opt -in to expenditure limits will be designated in the "Notice of
Nominees for Public Office" as having accepted expenditure limits (Section 2945(e)). The
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CAMPAIGN FINANCE REFORM ORDINANCE
JANUARY 14, 2020
Notice will be published in the local paper and posted on the City website. However, candidates
will no longer be allowed to accept higher contribution limits for opting -in to expenditure limits.
3. Contribution Limits and CPI Increases.
In the original ordinance, the contribution limits in section 2943 were intended to be increased
each year pursuant to the Consumer Price Index (CPI). Since 2011, the contribution limits have
only increased incrementally or remained the same. As of February 2019, the current opt -out
contribution limits are:
Districts 1-4: $1,000
District 5: $2,000
Over the past four election cycles, the contribution limits have not kept pace with inflation. The
likely reason is in how the ordinance allows increases for inflation, which requires rounding
numbers to the nearest $1,000 dollars.
The contribution limits that apply as of February 2019 are reflected in the new ordinance. The
Council may change the contribution limits in its discretion. If the Council wishes to change the
limits, several options will be recommended.
The CPI language applicable to contribution limits has changed in the new ordinance by
allowing amounts to be rounded to the nearest $100 dollars (and not the nearest $1,000 dollars)
as follows:
"The contribution limits established in this section shall be automatically adjusted annually,
following the November, 2012 election, based on the increase in the Los Angeles -Long Beach -
Anaheim, All Urban Consumers, Consumer Price Index for the prior twelve (12) month period
ending on August 31st. Such agLqstrnents shall be rounded to the nearest one hundred
dollars. The City Clerk shall publish the contribution limitation amounts no later than February
1 st of each year."
This new language should allow the contribution limits to keep pace with inflation.
4. Voluntary Expenditure Limits and CPI Increases.
In the original ordinance, the voluntary expenditure limits in section 2945(a) were intended to be
increased each year pursuant to the Consumer Price Index (CPI). Since 2011, the voluntary
expenditure limits have only increased incrementally. As of February 2019, the current
voluntary expenditure limits are:
Districts 1-4: $34,000
District 5: $56,000
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CAMPAIGN FINANCE REFORM ORDINANCE
JANUARY 14, 2020
Over the past four election cycles, the voluntary expenditure limits have not kept pace with
inflation. The likely reason is in how the ordinance allows increases for inflation, which requires
rounding numbers to the nearest $1,000 dollars.
The current voluntary expenditure limits that apply in 2019 are reflected in the new ordinance.
The Council may consider changes to these limits in its discretion. If the Council wishes to
change the limits, several options will be recommended.
The CPI language in the ordinance applicable to voluntary expenditure limits has changed
similar to contribution limits allowing for automatic adjustments annually, following the
November, 2020 election, based on the increase in the Los Angeles -Long Beach -Anaheim, All
Urban Consumers, Consumer Price Index for the prior twelve (12) month period ending on
August 31st. Such adjustments shall be rounded to the nearest one hundred dollars.
This new language should allow the voluntary expenditure limits to keep pace with inflation.
5. Statement of Acceptance or Rejection of Voluntary Expenditure Limits:
In past elections, the City Clerk's Office has received inquiries from candidates regarding the
ability to rescind a previously filed Statement of Acceptance of Voluntary Expenditure Limits.
The ordinance has been amended to allow the rescission within (15) days after nomination and
papers are filed with the City Clerk and so long as the candidate has not received any
contributions for that election cycle.
At Section 2944, the ordinance has been amended to clarify the requirements for candidates
seeking personal or financial institution loans to fund their campaigns. This provision has also
been amended to allow automatic adjustments to the $15,000 loan cap pursuant to CPI similar
to the adjustments applicable to contribution and voluntary expenditure limits.
There is no fiscal impact to the General Fund.
Public Engagement
ATTACHMENTS:
Attachment 1: 2011 Ordinance Enacting Campaign Finance Reform Regulations
Attachment 2: Ordinance No. 20- . Ordinance Amending Campaign Finance Reform Ordinance
Attachment 3: Redline of Text Changes to Campaign Finance Reform Ordinance
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Chapter I I— CAMPAIGN FINANCE REFORM REGULATIONSPage I of
Downey Municipal Code
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AfWQkIL—_APB1NI5I9A!M
enforcement. The purpose of this chapter is to promote public trust in governmental institutions and the electoral process,
reduce the appearance of corruption and to prevent individuals or organizations from using their financial
strength to unduly influence Downey City government. Large campaign contributions associated with
campaigns for local elective office can undermine the public's trust and confidence in the electoral process
and lead to a public perception of abuse and corruption in the electoral process. It is the intent of this chapter
io lower campaign costs and slow the increase in campaign spending by implementing comprehensive
campaign finance reforms including a voluntary expenditure ceiling, mandatory contribution limits and an
effective
In furtherance of those goals, a reasonable campaign contribution limitation and a voluntary campaign
expenditure limitation are hereby enacted that are similar to those enacted by other communities. In those
communities, such limitations have not inhibited City Council candidates' ability to conduct meaningful and
effective campaigns, but they have limited the appearance and incidents of corruption and instilled greater
public confidence• • •
as provided by Section 10202 of the Elections Code of the State. Further, pursuant to Section 81013 of the
• • •# •- - -# .r• • .• •• -• bW this cha-wter• not
preclude any person from complying with the Political Reform Act of 1974, being California Government
Code Sections 81000 through 81016. (Added by Ord. 129 1, adopted 9-13-11)
41 ow*15(a.4 4WA 0A*. • #
meaning. This chapter is intended to supplement the Political Reform Act of 1974 as amended. Unless a word or term
is specifically defined in this chapter or the contrary is stated or clearly appears from the context, words and
terms shall have the same as i in Title •. of •rnia Government Code,
Commission as set forth in Title 2, Division 6 of the California Code of Regulations, as well as any
amendments to the Act or • the Regulations of Political Practices Commission.• ••`r by • •
•' adopted
(a) "Candidate" means an individual who is listed on the ballot or who has qualified to have write-in votes on
his or her behalf Counted by election officials, for nomination for or election to the Downey City Council, or
• receives a contributionor r • or gives his or • for other person to
receive a contribution or make an expenditure with a view to bringing about his or her nomination or election
to the Downey City Council, whether or not he or she has announced his or her Candidacy or filed a
declaration of candidacy at such time. "Candidate" also includes any City Council mernber who is the subject
of a recall election. An individual who becomes a candidate for the Downey City Counci I shall retain his or
her status as a candidate until
(b) "Contribution" rneans any payment made for political purposes for which full and adequate
consideration is not made to the donor.
institutions11 i) Any goods or services received by or requested by a City Council candidate at no charg*
or at a discount frorn tile fair market value, unless the discount is given in the regular course —
(iii) An extension of credit for more than thirty (30) days, other than loans from financia'i
♦rmal course of business.
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(i) For the purpose of influencing or attempting to influence the action of the voters for or
against the nomination or election of a City Council candidate or the recall of a City Council
member; or
candidate(c) "Controlled Committee" means a committee which is controlled directly or indirectly by a
or acts jointlyor • • •n with a candidate or o • r committee in
*#14111 A candidate controls a committee if such candidate or thA
candidate's agent, or any other committee.: • • • •ls has , significant influence on
actions or decision of the committee or if such committee coordinates its expenditures with the
expenditures of a candidate or a committee controlled by a candidate, whether or not such candidate is
personally aware of • { • •
(d) "Person" means any individual, proprietorship, firm, partnership, joint venture, syndicate, business
company, • f{ { -• liability company,• •committee,• any other
(a) Declaration of Candidacy. No person may make, and no candidate or the controlled committee of
that candidate may solicit, accept or receive, any campaign contribution until an FPPC Form 50 1,
Candidate • - been •However,• ! not •a -• if no contributions are
received and the only •` • from personal funds.
(i) For City Council elections in Districts I through 4, candidates or their controlled
committees • agree to limit their•. expenditures pursuant to Section 2945
accept• • s of • tos • • five hundred•• ($1,500.00) from
person in any . -- • • r a be adjusted annually following
November, 1 election in accordance• • •
(ii) For City Council elections in Districts I through 4, candidates or their controlled
committees who do not agree to limit their campaign expenditures pursuant to Section 2945
-• • • • • •s • ••• ' 111 i! • -•- •
any single election. This contribution will be adjusted annually following the November,
2012 electionaccordance• • •
(i) For City Council elections in District 5, candidates or their controlled committees who
• • c• • •
of up to two thousand dollars ($2,000.00) from any single person in any single election. This
contribution will be adjusted • • • the November,! •accordance
with subsection •
For • elections in District 5, candidates or • • • committees w•
do not agree to limit their campaign expenditures pursuant to Section 2945 may accept
contributions • • •• one •; •hundred•• 111'1 • -• •
singlein any •contribution• adjusted • • • - ;r -
i • •. • • •
contribution established in this sectionbe automatically adjusted annually,
endingfollowing the November, 2012 election, based on the increase in the Los Angeles -Long Bea]ch-
Anaheim, All Urban Consumers, Consumer Price Index for the prior twelve (12) month period
on or • • ••($500.00),adjustments
n it
be rounded to the nearest thousand dollars. The Citg Clerk shall yublish the contribution lirnitati
arnounts no later than February I st of each year.
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Chapter I I — CAMPAIGN FINANCE REFORM REGULATIONS Page 4 of i
(4) The contribution limits set forth in this section do not apply to any contribution received byz
candidate or his or her controlled committee if such contribution shall be used solely to retire
campaign debt existing oil or before the effective date of the ordinance codified in this chapter. If
the contributions received are used, in whole or in part, to seek nomination for or election to the
Downey City Council,established in this sectionapply.
(c) Return of Contributions. Any amount in excess of the applicable contribution lirnit received frorn
any single person shall be returned to the person making the contribution with in fifteen (15) business
days of the candidate or candidate's controlled committee's receipt of the excess contribution. The
excess contribution and the date of its return shall be reported on a form provided by the City Clerk.
•) Family Contributions. C• r • by •. r and wife shall be treated as contributionsby
separate persons and shall not be aggregated. Contributions by children under eighteen (18) years of age
are presumed • be a contributionfrom parent or • of •
partner.11
ke) Personal Funds. The limitations of this subsection shall not apply to contributions of a candidate-!-,
her own candidacy, but shall apply to contributions frorn the candidate's spouse or registered domestic
(Added by O • 1291,.••i •
(a) Loans to a candidate or the candidate's controlled committee, whether made by a commercial
• • • •. • - --• • . •• , 111 i1 �'• •,
(b) Every loan to a candidate• r•. -'s controlled committee shall be by
and such written agreement shall be filed with the candidate's or committee's campaign staternent on
which ` loan is first reported.
(c) Extensions of credit (other than loans pursuant to subsections (a) and (b)) for a period of more than
thirty (30) days are subject to contribution limitations of this chapter. (Added by Ord. 1291, adopted
9-13-11)
1 1 1
(I ) Districts I through 4. For City Council elections in Districts I through 4, no candidate or the candidate's
controlled committee who voluntarily accepts the expenditure limit shall make campaign expenditures,
including the expenditure of loan proceeds, in excess of an amount equal to thirty thousand dollars
i . i •i ii` di i i ii i t * r ` 1n 1/6/202Z
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($30,000.00). Thexpenditure be adjusted annually following1
election• a.nce with subsection (•
District 5. For• • no candidate or . • •.te's controlled
committee who voluntarily accepts the expenditure lirnit shall make campaign expenditures,
including the expenditure of loan proceeds, in excess of an amount equal to fifty thousand dollars
($50,000.00). Thexpenditure be adjusted annually following the November,1
election♦ •. - • •
(c) Relationship to Contribution Limits. Any candidate who accepts the voluntary expenditure limit
or any controlled committee of that candidate may not make campaign expenditures cumulatively in
excess of • expenditure
subject(1) If acandidate voluntarily accepts such campaign expenditure limits, the candidate shall be
♦ the campaign• • • • 94 r or r
candidate - ♦. expenditure the candidate shall be subject to -
campaign contribution limit set forth in Section 2943(b)(1)(ii) or (b)(2)(ii). I
(d) Increase to Expenditure Limits. The voluntary expenditure limits established in subsection (a)
shall be autornatically adjusted annually, following the November, 2012 election, based on the increase
in the Los Angeles -Long Beach -Anaheim, All Urban Consumers, Consumer Price Index for the prior
twelve (12) month period ending on August 3 1 st or five hundred dollars ($500.00), whichever is less.
Such adjustments shall 1` rounded to the nearest thousand dollars. The City Clerk shall publish the
yearsvoluntary expenditure lirnit no later than February I st of each year.
(e) Committee Expenditures. Expenditures by a candidate's controlled committee shall be deemed
expenditures by the candidate for the purposes of this chapter.
1,a) Misdemeanor Actions. Any person who violates any provision of this chapter is guilty of a —
of
aids and abets any other person in the violation of any provision of this chapter, shall be guilty of a
misdemeanor. Prosecution for violation of any provision of this chapter shall be commenced within four
- •.:e.- on • .:. ::• occurred.
(b) Civil Actions. Any person who intentionally or negligently violates the contribution provisions of
this chapter shall be liable in a civil action brought by the City Attorney or by a person residing within
the jurisdiction for an amount not more than three (3) times the amount of the unlawful contribution.
(c) Injunctive Relief. Any person residing in the jurisdiction, including the City Attorney, may sue for
injunctive relief to enjoin violations or to compel compliance with the provisions of this chapter. (Added
by Ord. 1291, adopted 9-13-11)
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ATTACHMENT 2
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WHEREAS, in August 2011, the City Council adopted an ordinance regulating
campaign contributions and expenditures in local elections; and,
WHEREAS, since 2011, changes in the law and new case authority governing
local regulations of campaign contributions and expenditures has necessitated changes
to the City's ordinance; and,
WHEREAS, over the past four election cycles, candidates have raised questions
regarding the interpretation of the City's ordinance, which are clarified in this amended
Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
ORDAIN AS FOLLOWS:
SECTION 1. Article II, Chapter 11 ("Campaign Finance Reform Regulations") of the
Downey Municipal Code is hereby amended in its entirety to read as follows:
The purposes of this chapter are:
(a) To eliminate the opportunity for the appearance of quid pro quo corruption
in local elections arising from individuals or organizations making unduly large
financial contributions to a particular candidate by adopting the most closely
drawn limits possible on the amount of money a person or organization may
contribute, or otherwise cause to be available, to the candidate running for City
Council without unnecessarily abridging the contributor's associational freedoms;
(b) In establishing contribution limits, the City Council has considered the
economic factors unique to its jurisdiction, such as the size of the voting
population, the cost of running a city council campaign, and other considerations,
and finds that the limits set forth in this Ordinance will avoid rendering
contributions useless and a candidate's campaign ineffective;
(c) To eliminate the need for candidates and their supporters and opponents
to seek large campaign contributions by establishing a reasonable voluntary
expenditure ceiling for campaigns that, if accepted, provides incentives for
agreeing to the expenditure ceiling;
(d) To deter improper and illegal campaign activity using an effective
enforcement mechanism; and
ORDINANCE NO.
PAGE 2
(e) Pursuant to the City's right as a charter city and pursuant to Article XI,
Section 5 of the California Constitution, to enact a ban on the use of public funds
to finance municipal election campaigns.
Pursuant to California Government Code Section 81013 and Elections Code Section
10202, this chapter is intended to enact contribution limitations and other requirements,
in addition to those imposed by the Political Reform Act of 1974 (Government Code
Sections 81000-91014) (the "Political Reform Act" or "Act") and which do not prevent any
person from complying with the Act, as amended, or render a candidate's election
campaign ineffective.
Terms in this chapter shall have the same meaning as those defined in the
Political Reform Act, and the regulations promulgated pursuant to Title 2, Division 6 of
the California Code of Regulations by the Fair Political Practices Commission, except as
to those terms defined below:
(a) "Candidate" means an individual who is listed on the ballot or who has
qualified to have write-in votes on his or her behalf counted by election officials,
for nomination for or election to the Downey City Council, or who receives a
contribution or makes an expenditure or gives his or her consent for any other
person to receive a contribution or make an expenditure with a view to bringing
about his or her nomination or election to the Downey City Council, whether or
not he or she has announced his or her candidacy or filed a declaration of
candidacy at such time. "Candidate" also includes any City Council member who
is the subject of a recall election. An individual who becomes a candidate for the
Downey City Council shall retain his or her status as a candidate until such time
as that status is terminated pursuant to Section 84214 of the California
Government Code.
(b) "Contribution" means a payment, a forgiveness of a loan, a payment of a
loan by a third party, or an enforceable promise to make a payment, except to
the extent that full and adequate consideration is received or if it is clear from the
surrounding circumstances that the payment is not a payment made for political
purposes. Any expenditure made at the behest of a candidate, committee or
elected officer is a contribution to the candidate, committee or elected officer
unless full and adequate consideration is received for making the expenditure.
(1) A "contribution" includes:
(i) The purchase of tickets for events such as dinners,
luncheons, rallies, and similar fundraising events;
(ii) The candidate's own money or property used on behalf of
his or her candidacy, except personal funds of the candidate used
to pay either a filing fee for a declaration of candidacy or a
candidate statement prepared pursuant to Section 13307 of the
Elections Code and Government Code Section 85200;
ORDINANCE NO.
PAGE 3
(iii) The granting of discounts or rebates not extended to the
public generally or the granting of discounts or rebates by
television and radio stations and newspapers not extended on an
equal basis to all candidates for the same office;
(iv) The payment of compensation by any person for the
personal services or expenses of any other person if the services
are rendered or expenses incurred on behalf of a candidate or
committee without payment of full and adequate consideration;
(v) The transfer of anything of value received by a committee
from another committee, unless full and adequate consideration is
received;
(vi) Any goods or services received by or requested by a City
Council candidate at no charge;
(vii) Cash;
(viii) An extension of credit for more than thirty (30) days,
except as provided in Section 2944; and
(ix) Expenditures coordinated with a candidate.
(2) A "contribution" does not include:
(i) Amounts received pursuant to an enforceable promise to
the extent such amounts have been previously reported as a
contribution and otherwise comply with the limits of this chapter.
However, the fact that such amounts have been received shall be
indicated in the appropriate campaign statement;
(ii) A payment made by an occupant of a home or office for
costs related to any meeting or fundraising event held in the
occupant's home or office if the costs for the meeting or
fundraising event are five hundred dollars ($500.00) or less;
(iii) Volunteer personal services or payments made by any
individual for his or her own travel expenses if such payments are
made voluntarily without any understanding or agreement that
they shall be, directly or indirectly, repaid to him or her;
(iv) The proceeds of a loan made to a candidate by a
commercial lending institution in the regular course of business on
the same terms available to members of the public, which is not
guaranteed by any other party, and for which a written agreement
has been executed and filed with the candidate's first campaign
statement due after the date the loan is made. Loans shall be
subject to the requirements of Section 2944.
ORDINANCE NO.
PAGE 4
(c) "Controlled Committee" means a committee that is controlled directly or
indirectly by a candidate or that acts jointly with or in coordination with a candidate
or controlled committee in connection with the making of expenditures. A
candidate controls a committee if such candidate or the candidate's agent, or any
other committee such candidate controls has a significant influence on the actions
or decision of the committee or if such committee coordinates its expenditures
with the expenditures of a candidate or a committee controlled by a candidate,
whether or not such candidate is personally aware of such coordination.
(d) "Payment" means a payment, distribution, transfer, loan, advance,
deposit, gift or other rendering of money, property, services, or anything else of
value, whether tangible or intangible.
(e) "Payment made for political purposes" is a payment, whether directly or
indirectly, made:
(i) For the purpose of influencing or attempting to influence
the action of the voters for or against the nomination or election of
a City Council candidate or the recall of a City Council member; or
(ii) Received by or made at the request of a candidate.
(f) "Person" means any individual, proprietorship, firm, partnership, joint
venture, syndicate, business trust, company, corporation, limited liability company,
association, committee, and any other organization or group of persons acting in
concert.
(a) Declaration of Candidacy. No person may make, and no candidate or the
controlled committee of that candidate, may solicit, accept or receive any
campaign contribution until an FPPC Form 501, Candidate Intention Statement,
has been filed pursuant to Section 18520 of Title 2, Division 6 of the California
Code of Regulations and Government Code Section 85200.
(b) Contribution Limits.
(1) Contribution Limits for Districts 1 Through 4.
(i) For City Council elections in Districts 1 through 4,
candidates or their controlled committees may accept
contributions of up to one thousand dollars ($1,000.00) from any
single person in any single election. This contribution will be
adjusted annually following the November, 2020 election in
accordance with subsection (b)(3).
(2) Contribution Limits for District 5-
(i) For City Council elections in District 5, candidates or their
controlled committees may accept contributions of up to two
thousand dollars ($2,000.00) from any single person in any single
ORDINANCE NO,
PAGE 5
election. This contribution will be adjusted annually following the
November, 2020 election in accordance with subsection (b)(3).
(3) The contribution limits established in this section shall be
automatically adjusted annually, following the November, 2020 election,
based on the increase or decrease in the Los Angeles -Long Beach -
Anaheim, All Urban Consumers, Consumer Price Index for the prior
twelve (12) month period ending on August 31St. Such adjustments shall
be rounded to the nearest one hundred ($100.00) dollars. The City Clerk
shall publish the contribution limitation amounts no later than February 1 st
of each year.
(4) The contribution limits set forth in this section do not apply to any
contribution received by a candidate or his or her controlled committee if
such contribution shall be used solely to retire campaign debt existing on
or before the effective date of the ordinance codified in this chapter. If the
contributions received are used, in whole or in part, to seek nomination
for or election to the Downey City Council, the contribution limits
established in this section shall apply.
(c) Return of Contributions. Any amount in excess of the applicable
contribution limit received from any single person shall be returned to the person
making the contribution within fifteen (15) business days of the candidate or
candidate's controlled committee's receipt of the excess contribution. The excess
contribution and the date of its return shall be reported on a form provided by the
City Clerk and filed within fifteen (15) business days of its return to the donor, or
no later than the applicable voting day, whichever is earlier.
(d) Family Contributions. Contributions by a husband and wife shall be
treated as contributions by separate persons and shall not be aggregated.
Contributions by children under eighteen (18) years of age are presumed to be a
contribution from the parent or guardian of the child.
(e) Personal Funds. The limitations of this section shall not apply to
contributions of a candidate's personal and community property funds to his or
her controlled campaign committee on behalf of his or her own candidacy, but
shall apply to contributions from the candidate's spouse or registered domestic
partner.
i .,
(a) Loans to a candidate or the candidate's controlled committee, whether
made by a commercial lending institution in the regular course of business on the
same terms available to members of the public or personal loans, shall not
exceed fifteen thousand dollars ($15,000.00) in any single election.
(b) Every loan to a candidate or the candidate's controlled committee shall be
by written agreement, which is not guaranteed by any other party, and for which
a written agreement has been executed and filed with the candidate's first
campaign statement due after the date the loan is made. A candidate shall not
accept a loan by verbal agreement to avoid reporting requirements.
ORDINANCE NO.
PAGE 6
(c) The loan limit set forth in subsection (a) shall be automatically adjusted
annually, following the November, 2020 election, based on the increase or
decrease in the Los Angeles -Long Beach -Anaheim, All Urban Consumers,
Consumer Price Index for the prior twelve (12) month period ending on August
31't. Such adjustments shall be rounded to the nearest one hundred ($100.00)
dollars.
(d) Extensions of credit (other than loans pursuant to subsections (a) and (b))
for a period of more than thirty (30) days are subject to contribution limitations of
this chapter.
(a) Voluntary Expenditure Limits by Districts.
(1) Districts 1 through 4. For City Council elections in Districts 1
through 4, no candidate or the candidate's controlled committee who
voluntarily accepts the expenditure limit shall make campaign
expenditures, including the expenditure of loan proceeds, in excess of an
amount equal to thirty-four thousand dollars ($34,000.00). This
expenditure limit will be adjusted annually following the November, 2020
election in accordance with subsection (c).
(2) District 5. For City Council elections in District 5, no candidate or
the candidate's controlled committee who voluntarily accepts the
expenditure limit shall make campaign expenditures, including the
expenditure of loan proceeds, in excess of an amount equal to fifty-six
thousand dollars ($56,000.00). This expenditure limit will be adjusted
annually following the November, 2020 election in accordance with
subsection (c).
(b) Statement of Acceptance or Rejection. Each candidate must file with the
City Clerk at the time nomination papers are filed a statement of acceptance or
rejection of the voluntary expenditure limit prior to accepting any contributions.
The statement of acceptance or rejection of the voluntary expenditure limit may
be rescinded within fifteen (15) calendar days after nomination papers are filed
with the City Clerk and so long as the candidate has not received any
contributions for that election cycle.
(c) Adjustment to Expenditure Limits. The voluntary expenditure limits
established in subsection (a) shall be automatically adjusted annually, following
the November, 2020 election, based on the increase or decrease in the Los
Angeles -Long Beach -Anaheim, All Urban Consumers, Consumer Price Index for
the prior twelve (12) month period ending on August 31St. Such adjustments shall
be rounded to the nearest one hundred ($100.00) dollars. The City Clerk shall
publish the voluntary expenditure limit no later than February 1 st of each year.
(d) Committee Expenditures. Expenditures by a candidate's controlled
committee shall be deemed expenditures by the candidate for the purposes of
this chapter.
ORDINANCE NO.
PAGE 7
(e) Notification to Voters. The City Clerk shall prominently designate on the
"Notice of Nominees for Public Office" those candidates who voluntarily accept
expenditure limits which notice shall be published as required by law and posted
on the City's website.
(a) Misdemeanor Actions. Any person who violates any provision of this
chapter is guilty of a misdemeanor. Any person who causes any other person to
violate any provision of this chapter, or who aids and abets any other person in
the violation of any provision of this chapter, shall be guilty of a misdemeanor.
Prosecution for violation of any provision of this chapter shall be commenced by
the City Prosecutor within four (4) years after the date on which the violation
occurred.
(b) Civil Actions. Any person who intentionally or negligently violates the
contribution provisions of this chapter shall be liable in a civil action brought by
the City Attorney or by a person residing within the jurisdiction for an amount not
more than three (3) times the amount of the unlawful contribution.
(c) Injunctive Relief. Any person residing in the jurisdiction, including the City
Prosecutor, may sue for injunctive relief to enjoin violations or to compel
compliance with the provisions of this chapter.
No candidate may accept or expend public monies for the purpose of seeking public
office.
The provisions of this chapter are severable. If any provision of this chapter or its
application to any person or circumstance is held invalid by a court, the remainder of this
chapter and the application of the provision to other persons or circumstances are not
affected by that determination, to the extent that the provision or its application can be
given effect."
SECTION 2. If any article, section,
phrase of this Ordinance is declared b�
unconstitutional or otherwise invalid, such
remaining portions of this Ordinance. Th
adopted this Ordinance, and each article,
clause, phrase or portion thereof, irrespecti
sections, subsections, paragraph, sentence
invalid or unconstitutional.
subsection, paragraph, sentence, clause or
a court of competent jurisdiction to be
decision shall not affect the validity of the
City Council declares that it would have
section, subsection, paragraph, sentence,
ie of the fact that any one or more articles,
clauses, phrases, or portions be declared
9 0
ZU'le] I
SECTION 3. The City Clerk shall certify to the adoption of this Ordinance and
cause the same to be published in the manner prescribed by law.
APPROVED AND ADOPTED this I day of ,2020.
BLANCA PACHECO, Mayor
ATTEST:
MARIA ALICIA DUARTE, CMC
City Clerk
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES)
CITY OF DOWNEY
I HEREBY CERTIFY that the foregoing Ordinance No. 20- was
introduced at a Regular Meeting of the City Council of the City of Downey held on the
day of 1 2020, and adopted at a regular meeting of the City Council of
the City of Downey held on the. day of 2020, by the following vote,
to wit:
AYES:
Council Members:
NOES:
Council Member:
ABSENT:
Council Member:
ABSTAIN:
Council Member:
I FURTHER CERTIFY that a Summary of the foregoing Ordinance No. 20-
1 was published in the Downey Patriot, a newspaper of general circulation in the
City of Downey, on , 2020 (after introduction), and on
2020 (after adoption, including the vote thereon). It was also posted
in the regular posting places in the City of Downey on the same dates.
MARIA ALICIA DUARTE, CMC
City Clerk
ATTACHMENT
Chanter 11 —CAMPAIGN FINANCE REFORM REG ULATIONS
SECTION 29, 1). PIJRVOSI,;
ThepUrPOSe
(a) ""[l;, opporwv.i,;.'r'the _-Iec+ora� of
IpO corruption IwI4 [0-pre-vc-ff I I k""r[I 'i1 I klxl "individuals or
------------- -- ---- -
organizations IeF rrr usini--thek.- 11111L.ol,,u financial
Df v L v C F k I 11-1 4� I 16, 1 1 l) 1 I I C, I I k) L k. 1 11t
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large campaign contributions w4h Im 4(Cal C1VLE1-k'e- o,11 ice
C " I I I l i i I & I I I I I I I C 0) C-[ }t, I b I i c's- I a 1'1 1111 d Cof ifidcil ct i n 4 h L- e 11C etoril F procc ""s ii fikk I Ca d- t(
I) Lf h c per ,�1) 1 io I I k I I' i I htl -,, C L11 1& 0 H-111 f1d 011 -i I I t hC C- I tC N YFa kj_�R)Ce,S, -41 i �,- Lh e -i n Lcf) i- I' I I I i s
1",,,.,:W(,:I,0,),,,voluntary expenditure ceiling-m-afida
0of
__h
(d) Ll,w�o,w,Lli an effective enforcement
mechanism:, lwi
"I flnw appearaiw�and
Mid- thc
(e)
eonti-ibution.."
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oi wc on%tkUoo;�, :11 01� dlO"W 0i
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SYC TION 29,41, REI.ATIONSHIP TO THE POLITICAL REFORM WT OF f974
�":oa i�
requirementsi. ;u _,,16�,,1JJDJ,,,
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All caps
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numbering
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imposed by+#+ts—l'#1iit+ic 11 l; (�s'i°1_t6a;ll Kt'f�,alii 441, Ika4)'ili .tc"il:d tidt'-SE,°t.,[ItA4:4, 1n°,iil—
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from complying with the of
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SUCTION 2942. DFFINITIONS
r14 aa;ed�+r+1w i� f=hale{ef
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Mt° na „ii t '�~' � a",' is ctie'
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(a) "Candidate” means an individual who is listed on the ballot or who has qualified
• •mi
•: • • •
expenditure or gives his or her consent for any other person to receive a contribution or
g "SiNI-Im
�• • • •— —• • i • •
` :i
or filed a declaration of candidacy at such time. "Candidate" also includes any City
Council member who is the subject of a recall election. An individual who becomes a
such :. terminated pursuant
Code.Government
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:+,�e.�trtlie�e rris i c#z s°a tir;+ri�fit++t rrwttde-ter t#+e-E�rt3Nr
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id3✓, I t"Ils'.',I � l - ti;. a,.a,f, .r i=". w e fl.i:"alr°l°+.` 4 v" i „a. �'a'vt?N&' 8," ,,k .. 7.l c..I,t IG., aj ihr -Iia." x "a t't4P -,� t't'..
'�N^` ' :p;' t.: lx,'t"ua".g6 ,ii i�l �"5'; %7i iIK°:vS if_a➢� ,.."i t, .'•k'u C;Eitt:,!ik" ti+�a+i`r«�.l i',';', �a; iii f°,,, t'i'L'',"I''r t";; i,, o -t, __..
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01 oi coh ;t
6 !D m! i l I-I,
-Any goods or services received by or requested by a City Council
candidate at no
(4i)(vii) Cash;
(+i i)(Vi i i) An extension of credit for more than thirty (30) days, ,L4he+
[him )bans 1'rom knLineial-instiLutions
bu,"m St%,„i;,!,
q , 2`t. L, 1-i I c Ific
V! 11,:, dltt,l17 th I 11i,y, t'.A c k
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l
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i .1 pe,, j 1 s l ('"7 w``t6 ^.,w 'w I �.8'I tf t.Ka r"! f i t N Y,";I I'
f ,a.''uc_' :t al�:ti01n1vi—Ik°°t,,1'1 -L 1 o I I
"Controlled Committee" directly or
candidateindirectly by a candidate or that acts jointly with or in coordination with a candidate or
a committee if such candidate or the candidate"s agent, or any other committee such
introls has a significant influence on the actions or decision of •
•.i • -♦ a 1. ♦ a
such coordination.
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— "Person" means any individual, proprietorship, firm, partnership, joint
syndicate, ny, corporation, limited liability company,
association, committee, and any other organization or group of persons acting in concert.
SECTION 2943. CAMPAIGN CONTRIBUTION I,I( d`I'ATIONS
Declaration of ♦ No person may make, and no candidate or
controlled • - of aa.- may solicit, acceptreceivei._
Formatted: Indent: Left: 0.44", No bullets or
numbering
Formatted: Indent: Left: 1.5', No bullets or
numbering
Formatted: Indent: Left: 0.44", No bullets or
numbering
contribution until an FPPC Form 501, Candidate Intention Statement, has been filed.-
1-If?wc-ierE -iOF[i1-50-1--i's-nol-fe I-nii-efintrdb.;[;-2R,.":}8''1'Eev:ls'd 41 S' ''>_'_,K OP
caul°trp� P ` and the --Hili`
CouncilFor City •ns in Districts I through 4, candidates
controlledtheir
acceptr • of • to
one • • . 'r •, any single person in
election.• be adjustedfollowing
November,the • • •. r
ri ii -1 a„14;y;°, t1+
;W I0J,`j^IK. P—Viiia'— •iki: _ w'`lr4'`S .x,.'vi'..,t'.Su.
Formatted: Indent: Left: 1.5°, No bullets or
numbermel
♦ 't
Formatted: Not Highlight
(i) For City Council elections in District 5, candidates or their
controlled committees
may accept contributions of up to two thousand
dollars®($ .... u,)1,.00) from any single per°son_in any single election, This
Formatted: Not Highlight
contribution will be adjusted annually following the November, 20 ,
Formatted: Not Highlight
election in accordance with subsection (b)(3).
:(t !�4._.t 4[ .,.;, aY =I, 4l'i.k SV w°CCti."p't t4x'4kifi'.` Vii. C ".v 0« Mr
H
Formatted: Not Highlight
ai:'4'', ',14", "viti Fs ,Ru Iili'k«!'n iY'k7t•'v': ,�3`a
,:7w' sa rwp Q'a:; '. ec,
contribution
adjusted annually, following• • on the
increase r in the Los Angeles -Long Beach -Anaheim,
Consumers Consumer• ir twelve '12�, month #eriod ending
on
adjustmentsbe de to the nearest
dollars. The City Clerk shall publish the contribution limitation amounts no later
than February I st of each year.
Formatted: Superscript
Formatted: Not Highlight
section(4) The contribution limits set forth in this do not► • any
contribution► by a candidate or his or her controlled committee
u#TTaftatiT-sirA-4u-=i• • ♦ • • r• •
effective date of ordinance codified in this chapter. If the contributions
received are used, in whole or in part, to seek nomination for or election to the
Downey City Council, the contribution.section shall
(c) Return of Contributions. Any amount in excess of the applicable contribution
limit received from any single person shall be returned to the person making the
contribution within fifteen (15) business days of the candidate or candidate's controlled
committee's receipt of the excess contribution. The excess contribution and the date of its
return shall be reported on a form provided by the City Clerlc._vudti7:((,�6 id-J:;i_lii�cc;i
r o 1,11c, i'T: 1 !i i1i 9xi E[d y14 ,ji" WN i„;_i':irv"
(d) Family Contributions" Contributions by a husband and wife shall be treated as
contributions by separate persons and shall not be aggregated. Contributions by children
under eighteen (18) years of age are presumed to be a contribution from the parent or
guardian of the child.
Personalrs. The limitations of • apply toc r • of
committeea candidate's personal and community property funds to his or her controlled campaign
behalf of his or her own candidacy,but apply to contributions from
the d • • domestic
` ECTION 2944. 1, $AMS,
(a) Loans to a candidate or the candidate's controlled committee, whether made by a
commercial lending institution in the regular course of business on the same terms
available to members of the public or personal loans, shall not exceed fifteen thousand
dollars $15,000.00) in any single election. Formatted: Not Highlight
f -i- (W Every loan to a candidate or the candidate's controlled committee shall be by Formatted: Tabbed_O
written agreement i,;,t+ a' ,,,t."t bt 1, zsO k ilv,f o i _
rw.;
,t.,it`d' iia` Oak' I6 W f -a ilc:°d.R�li:s
Ia o_I;kl;` 7sh[i?l iltll' 't,'i 't 7.'1 "'I `,i §'�5."ti't 4,, i q,^E,t `;�" I) tAC ;",I tit }a",i"�s,, il_„i f"*Ct t,l ;tfi[ i ka i'•,.
9,Ila4t i,i'6. t,ld' 56 ra t,ilii5,•., ti RBai 6-7 fs,Ga. I'., t arttM 1It IITCC � e -'+C .Ia 0'6 1 11
%a rA°w-i tY I'' ('i
.§'' .f�l"- .. :` 4 1i ':I f L. I:_ ",, 14 i JL",;
{' i'1k"
i 1 4Tfi 1G(�I '� F~$ t9,,,I n iia .Y, --,_, _ ...__ _ LI;1j"I [J
.. ._, ._-
is ilra'I'a:',;;A+.( -'{M 'll.Pal"'.•Cdr: :"ti (i iii '7,",yk A,iS)li:Y;°.
(h �(d)_ Extensions of credit (other than loans pursuant to subsections (a) and (b)) for a
SECTION 2945® V IJ NT.ARV EXPENDITt P%r LIMIT.
RITIROWDIUMM
(1) Districts 1 through 4. For City Council elections in Districts 1 through 4,
no candidate or the candidate's controlled committee who voluntarily accepts the
expenditure limit shall make campaign expenditures, including the expenditure of
loan proceeds, in excess of an amount equal to thirty -i,, ma thousand dollars
j_$3 ',000.00). This expenditure_limit_will be adjusted annually- following the ---------- Formatted: Not Highlight
November, 20 : election in accordance with subsection ( .).
(2) District 5. For City Council elections in District 5, no candidate or the
candidate's controlled committee who voluntarily accepts the expenditure limit
shall make campaign expenditures, including the expenditure of loan proceeds, in
excess of an amount equal to fifty thousand dollars,($5 ` ,000.00). This Formatted: Not Highlight
---------------------
expenditure limit will be adjusted annually following the November, 20..
election in accordance with subsection ( ).
(b) Statement of Acceptance or Rejection. Each candidate must file with the City
Clerks i11t' ;.Y,,',a,:i7ia,11i5„tp;q%;%,,r l'1,l',,;astatement ofacceptance orrejection ofthe
voluntary expenditure limit prior to accepting any contributions.
,;�a',.^l,'[;,s.�,t� 4Y1 '�tay,s' 'S'¢,+l €I .• �_s,�ltii,,,,,"., ,..,Ire',°,i�°;I: i',»ri�_t_ I ta'_I w�_�.�s, 'c _ ,,I +,,,.4f�Et� !;,t.a.'.:'',
'X a:w.7hhw Lt hims, OL G d :� of cowl
Fa; r wti�'i5,t+laa„7tiiit';' �.t> n. .af'�?!i"'1 f'4;'i ;e,st; ';°i�'h �: i".. ��A; - w; rii It knK Y;3 b,.� �4�, 4°eF ..4,'w'k•c'o„`, "9Yt' °. c'f 9'. ii'1t.1'.'
i
c.'” ^iuw9 i; [{:-u.°.F x:`t :i ¢Pt: Prrl kh, a° 1�'['n:":4, �:'.•'.,",�.Ctr_I F'. �'." at,�3 ", d'vi,^^� l^�;'k-ia.P;w,rt'; �i'I.u�7i�.:
..'a -:�i�t.'i,rot^eb�it"tip^ ,;al!,;,rt[ t& », i.-, � •alt' i z':,t;i;[°a¢;x, t' s�i'.t1I�1 G:1'". tt'w:'@,:a.'
.r
ti:lSiw.B�.l,.a:l."....a1tdl �. p�.e-v'a&i'A1c'�,: ivs "'..,.,b`1:;:911'^fi 9'k^3I -..s ^' 1'Istf!i,t'+:; "r P•{}i'�,, .,,;'L ..¢..; t,- .� P ,
^:t ,,y IgA
f�l-}fl>_ ara, iitii ;^tit.i., ;. .i = to Expenditure Limits. The voluntary expenditure limitsFormatted: Font: Not Bold
established in subsection (a) shall be automatically adjusted annually, following the
November, 20 election, based on the increase in the Los Angeles -Long
Beach -Anaheim, All Urban Consumers, Consumer Price Index for the prior twelve (12)
month period ending on August 3 i�' e n'—; i1 f : t P.:4'c a t l I»tA k "r l °V t ? t ,; ,a lRt :l ;'-t ^ ^ti`4^,. Formatted, Superscript
Such adjustments shall be rounded to the nearest -one lrl;t,} 9r _itit flat^;ctrrcl ($1 00 .00)
dollars. The City Clerk shall publish the voluntary expenditure limit no later than
February 1 st of each year.
(e)Wj_Committee Expenditures. Expendituresby a candidate's controlled committee Formatted. Font: Not Bald
shall be deemed expenditures by the candidate for the purposes of this chapter.
t R fa'';,. `.]t;iI ,,I'a+I: -1fl r-'; itc Formatted: Font: Not Bald
. i':,f:.:tt,G;a° 4,:; C Y<<, ¢u
44=14 �- i�ht� }c�ti�n i Voters.- -- — - -- -- _ _ ._
111"kc.`A'c'r IsJiIjic? Jf;l '„ ':If ti>, .xi{li, fY' AI4".a v, rota,t,d'.fut', l'fkN 4:xi
`- k }7C r'G,al3 � �I • ^'_ a �A. ". ? {5 r x, a .r", Al ,1,"a,
A§,,$
c'tflhii:,*',4,04-4 �4-,+li:atS'= ,c"a: ',a:x ;,°f +t klw —z' ,- ,. 1:Formatted: Not Expanded by Condensed by
SWCTION 2946. VIOLATION AND PENALTY.
misdemeanor.(a) Misdemeanor Actions. Any person who violates any provision of this chapter is
guilty of a • causes any other personto violate
iorovision of aU ` or • aids and abets an other i erson in the violation
any provision of this chapter shall be commenced !),,-,J-w k within four (4)
years after ` date on • occurred.
Actions.(b) Civil •I' who intentionally or negligently violates
contribution•liable in a civil actionbroughtby
Attorneyor by person residing• • • an amountnot • ` than three
amount(3) times the of
(c) Injunctive Relief. Any person residing in the jurisdiction, including the C
may sue for injunctive f to enjoin violationsto comp
ompliance with the provisions
Y �." ;"rVhPl } G=nl"= t'I �i,l tib°, ,}t,"u .17w •,..y t„'E Ii -q a'. �: .`YI � f4�
1, i I)V 4 1&Yr C:}°4 X i:4`i;+ 1 1'; .¢: ;
Iq