REPORT TO COUNCIL
SUBJECT
Title
Action on Resolution Establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limits for the November 5, 2024 Municipal Election; Information on Levine Act (SB1439) Requirements
Report
Council Pillar
Enhance Community Engagement and Transparency
BACKGROUND
The City of Santa Clara Political Campaign Finance Reform Act (the "Act"), codified in Chapter 2.130 of the Santa Clara City Code, established an initial limit for a candidate's voluntary campaign expenditures of $25,000 for the November 2000 City election. The Act contains a cost-of-living adjustment using the index from the U.S. Department of Labor, Bureau of Consumers (CPI-U), San Francisco, Oakland, San Jose subgroup - all items ("CPI"), to be adjusted on an annual basis. The expenditure limit was last adjusted to $47,580 based on CPI adjustments for city-wide contests and set a separate voluntary expenditure limit for district-based contests of $25,730 by the City Council on April 19, 2022.
The Act also contains individual campaign contribution limits that were originally established at $500 for candidates who accepted the voluntary expenditure limit and $250 for those who did not. In 2014, the Act was amended to require that the applicable contribution limits also be adjusted by the CPI, rounded to the nearest ten-dollar figure. In 2022, the applicable contributions limits were adjusted to $650 and $320, respectively.
The Act was amended in May 2018 to increase transparency for the voters of Santa Clara by creating specific disclosure requirements for “dark money” campaign contributions to independent political organizations not controlled by candidates . The Act now includes mandatory disclosure of all contributions of one hundred dollars ($100) or more to any organization that makes expenditures that affect or are intended to affect a local Santa Clara election to City office or for or against a local Santa Clara ballot measure. Contributions must be reported in the same manner as campaign contributions are required to be reported under SCCC 2.130.280 <http://www.codepublishing.com/CA/SantaClara/>.
DISCUSSION
Pursuant to City Code Section 2.130.050, the Council must adjust the contribution limits by Resolution. Accordingly, the attached Resolution has been prepared accounting for the cost-of-living adjustment applicable to the expenditure limit for the upcoming 2024 November General Municipal Election, which shall be set at $48,290 for city-wide based contests and $26,110 for district-based contests. This reflects a 1.49% increase, applying the annual CPI adjustment based on the data from March 2024. Similarly, the same CPI adjustments were calculated for the individual campaign contributions. For candidates who accept the voluntary expenditure limit, the limit on individual campaign contributions shall be $660 and for candidates who do not accept the voluntary expenditure limit, the limit on individual campaign contributions shall be $320.
Pursuant to City Code section 2.130.050, the last day a campaign contribution may be deposited shall be eleven (11) calendar days before the election date (i.e., a Tuesday, November 5th election date would make Friday, October 25th the last day to deposit a contribution) and the last day a payment for campaign expenses may be made shall be the last day of the month following the election month (i.e., a November election would require that all campaign expenses be paid by December 31st - the last day of the month following the election month).
SB 1439 Levine Act Requirements
Candidates running in the 2024 municipal election should be aware of Senate Bill 1430 also known as the Levine Act that was passed by the California Legislature in 2022. This bill amended California Gov’t Code Section 84308 of the Political Reform Act (“the Act”). Prior to January 1, 2023, Section 84308 only applied to appointed officials, but it has been broadened to include members that are directly elected by voters, including local elected officials.
Section 84308 is a California law aimed at preventing “pay-to-play” practices, in part, by prohibiting parties, participants, and their respective agents in a proceeding involving a license, permit, or other entitlement for use (collectively referenced as an “entitlement for use proceeding” or “proceeding”) from contributing more than $250 to an officer of the agency the proceeding is before during a 12-month period. An officer is similarly prohibited from accepting, soliciting or directing such a contribution. The prohibition on contributions applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.
Under Section 84308, the officer of an agency is required to disclose any contribution exceeding an aggregate $250 that a party or any participant has made to them within the 12 months preceding the proceeding. Further, the officer of an agency may not make, participate in making, or in any way attempt to use their official position to influence the decision in the proceeding pending before the agency if the officer has received a contribution of more than $250 within the preceding 12 months from a party, or a party’s agent. An officer of an agency is similarly prohibited from taking part in a proceeding if the officer received a contribution of more than $250 within the preceding 12 months from a participant, or participant’s agency, if the officer knows or has reason to know that the participant has a financial interest in the decision.
Candidates and Elected Officials should become aware of these rules and their responsibilities as they solicit campaign contributions during this election period. A supplemental information Memorandum from the City Attorney’s Office regarding Levine Act requirements and compliance guidelines is attached to this report. The City Clerk’s Office will also be updating its web page with more information on the Levine Act requirements.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
There is no cost associated with this action other than staff time and expense.
COORDINATION
This report was prepared in coordination with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt a Resolution establishing the Political Campaign Voluntary Expenditure Limit and Campaign Contribution Limit for the November 5, 2024 General Municipal Election with:
the voluntary expenditure limit set to $48,290 based on CPI adjustments for city-wide contests and sets a separate voluntary expenditure limit for district-based contests not to exceed $26,110 (with future adjustments based on CPI). City Council sets the individual campaign contributions based on CPI adjustments as:
• $660 for candidates who accept the voluntary expenditure limit
• $320 for candidates who do not accept the voluntary expenditure limit
Staff
Reviewed by Hosam Haggag, City Clerk
ATTACHMENTS
1. Resolution
2. Memorandum from the City Attorney’s Office Regarding Levine Act Requirements and Compliance Guidelines