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O2360F:\atty\m u n i\laws\mj m\Lim itatio nsOnContri butions0 rd 0524112d City Council Meeting: 5/24/2011 Santa Monica, California ORDINANCE NUMBER 2360 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTIONS 11.04.050 AND 11.04.070 OF THE SANTA MONICA MUNICIPAL CODE RELATING TO CONTRIBUTIONS TO CANDIDATES FOR OFFICE WHEREAS, the City of Santa Monica is known for its highly participatory local democracy; and WHEREAS, the City Council has adopted various laws and policies intended to encourage broad participation in the local political process; .and WHEREAS, among these laws is a contribution limit established in 1992 in the amount of $250; and WHEREAS, the law adopted in 1992 applies this limit to individuals, committees controlled by candidates, and uncontrolled committees; and WHEREAS, this limit has not been changed since 1992; and WHEREAS, the City Council has preserved the 1992 limit in order to curtail the influence of money and special interests upon the democratic process in Santa Monica; and WHEREAS, in recent years decisions of the United States Supreme Court and lower courts have invalidated campaign finance restrictions like Santa Monica's on First Amendment grounds; and WHEREAS, based on this development in the case law, the City Council has determined that Santa Monica's contribution limit must be revised, in order to maintain its constitutionality. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 11.04.050 is hereby amended to read as follows: 11.04.050 Limitations on contributions from persons. (a) No person shall make to any candidate for office or to the controlled committee of such a candidate, a contribution or contributions totaling more than two hundred fifty dollars for each election in which the candidate was on, is on, or is likely to be on the ballot or in which the candidate sought or seeks write-in votes. (b) No candidate for office or the controlled committee of such a candidate shall accept from any person a contribution or contributions totaling more than two hundred fifty dollars for each election. 2 (c) This section shall not be interpreted or applied to violate the right of association or the right to express views through expenditures. Rather, it is intended to be and shall be applied solely as a limit on campaign contributions to individuals and committees. (Prior code § 11203; added by Ord. No. 1630CCS § 1, adopted 6/9/92, amended by Ord. No. 2270CCS § 2, adopted 9/16/08) SECTION 2. Santa Monica Municipal Code Section 11.04.070 is hereby amended to read as follows: 11.04.070 Aggregation of payments. (a) All contributions made by a person or small contributor political action committee whose contributions or expenditure activity is financed, directed or controlled by any corporation, partnership, committee, labor organization, association, political party or any other person or committee, including any parent, subsidiary, branch, division, department or local unit of the corporation, labor organization, partnership, committee, association, political party or any other person, or by any group of such persons, shall be considered to be made by the person, organization or entity financing, directing or controlling the contribution as well as the person, small contributor or political action committee making the contribution. 3 (b) -Two or more entities shall be regarded as the same person or small contributor political action committee when any of the following apply: (1) The entities share the majority of members of their boards of directors; (2) The entities share two or more officers; (3) The entities are owned or controlled by the same majority shareholder or shareholders; (4) The entities are in aparent-subsidiary relationship. (c) An individual and any general partnership in which the individual is a partner, or an individual and any corporation in which the individual owns a controlling interest, shall be regarded as the same person. (d) No committee which supports or opposes a candidate for office shall have as officers individuals who serve as officers on any other committee which supports or opposes the same candidate. No such committee shall act in concert with, or solicit or make contributions on behalf of, any other committee. This subsection shall not apply to treasurers of committees if these treasurers do not. 4 participate in or control in any way a decision on whether the candidate or candidates receive contributions. (Prior code § 11205; added by Ord. No. 1630CCS § 1, adopted 6/9!92) SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance: The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: ~ ~ M RSH ~ NES OUTRIE C yAtt r ey 5 Approved and adopted this 24t" day of May, 2011. ~~ Richdrd Bloom, Mayor State of California ) County of Los Angeles ) ss. .City of Santa Monica ) I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2360 (CCS) had its introduction on May 10, 2011, and was adopted at the Santa Monica City Council meeting held on May 24, 2011, by the following vote: Ayes: Council members: Holbrook, McKeown, O'Connor, Shriver Mayor Pro Tem Davis, Mayor Bloom Noes: Council members: None Absent: Council members: O'Day A summary of Ordinance No. 2360 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: Maria M. Stewart, City Clerk