ITEM 6-J

City Council Meeting  6-9-92             Santa Monica, California

                          STAFF REPORT

TO:         Mayor and City Council

FROM:       City Attorney

SUBJECT:    Ordinance Amending Article XI of the Santa Monica
            Municipal Code Relating to Campaign and Election
            Reform

      At its meeting on June 2, 1992, the City Council introduced
for  first  reading an ordinance amending Article XI of the Santa
Monica Municipal Code relating to campaign and  election  reform.
The ordinance is now presented to the City Council for adoption.

                         RECOMMENDATION

      It  is  respectfully  recommended  that  the   accompanying
ordinance be adopted.

PREPARED BY:  Robert M. Myers, City Attorney
              Joseph Lawrence, Assistant City Attorney


                      ORDINANCE NUMBER ____

                      (City Council Series)

             AN ORDINANCE OF THE CITY COUNCIL OF THE
            CITY OF SANTA MONICA AMENDING ARTICLE XI
               OF THE SANTA MONICA MUNICIPAL CODE
            RELATING TO CAMPAIGN AND ELECTION REFORM

      THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:

      SECTION 1.  Chapter 1 of Article XI  of  the  Santa  Monica
Municipal Code is amended to read as follows:

            SECTION 11200.  Title.  This Chapter shall  be
      known  as  the  City  of  Santa  Monica Campaign and
      Election Reform Act of 1992.

            SECTION 11201.   Findings  and  Purpose.   The
      City  Council  of the City of Santa Monica finds and
      declares:

            (a)   Monetary  contributions   to   political
      campaigns  are a legitimate form of participation in
      the American political process,  but  the  financial
      strength  of  certain  individuals  or organizations
      should   not   permit    them    to    exercise    a
      disproportionate  or  controlling  influence  on the
      election of candidates.

            (b)  The rapidly increasing costs of political
      campaigns  have  forced  many  candidates  to  raise
      larger and larger percentages of money from interest
      groups  with  a  specific financial stake in matters
      before City governmental bodies.   This  has  caused
      the   public   perception   that   votes  are  being
      improperly  influenced  by  monetary  contributions.
      This  perception  is undermining the credibility and
      integrity of the governmental process.

            (c)   Officeholders  are  responding  to  high
      campaign costs by raising ever increasing amounts of
      money.    This    fundraising    distracts    public
      officeholders  from  important  public  matters  and
      encourages  contributions   which   may   have   the
      appearance of a corrupting influence.

            (d)  High campaign costs have  the  effect  of
      discouraging citizens from running for public office
      since,   without   access    to    large    campaign
      contributors,  newcomers  to  the  political process
      cannot wage effective campaigns.

            (e)   By  enacting  this  Chapter,  the   City
      Council  seeks:   to  ensure  that  individuals  and
      interest groups in our society have a fair and equal
      opportunity  to  participate  in  the  elective  and
      governmental processes; to reduce the  influence  of
      large  contributors  with a specific financial stake
      in matters before City governmental bodies; to limit
      overall  expenditures  in  campaigns;  to reduce the
      excessive fundraising advantage  of  incumbents  and
      thus  encourage  competition for elective office; to
      improve the disclosure of  contribution  sources  in
      reasonable  and  effective ways; and to help restore
      public   trust   in   governmental   and   electoral
      institutions.

            SECTION 11202.  Definitions.  Unless a word or
      phrase  is specifically defined in this Chapter, the
      definitions  set  forth  in   the   Fair   Political
      Practices  Act,  Government  Code  Sections 82000 et
      seq. shall apply to  this  Chapter.   The  following
      words  or phrases as used in this Chapter shall have
      the meanings set forth below.

            (a)   Candidate.   Any  individual   who   has
      qualified  to  be  listed  on  a  ballot  or who has
      solicited write-in votes on his or  her  behalf  for
      election  to  the  Santa  Monica City Council, Santa
      Monica Rent Control  Board,  or  any  other  elected
      office  of the City of Santa Monica, or who receives
      a contribution or  makes  an  expenditure  or  gives
      consent   for   any   other   person  to  receive  a
      contribution or to make an expenditure with  a  view
      to  bringing  about  such  person's election to such
      office, whether or not the specific elective  office
      for which such person will seek election is known at
      the  time  the  contribution  is  received  or   the
      expenditure  is made, and whether or not such person
      has announced candidacy or filed  a  declaration  of
      candidacy  at  such time.  "Candidate" also includes
      any  office  holder  who  is  subject  of  a  recall
      petition.

            (b)  Committee.  Any person or combination  of
      persons   who   directly   or   indirectly  receives
      contributions or makes expenditures or contributions
      for  the  purpose  of  influencing  or attempting to
      influence the action of the voters  for  or  against
      the   nomination   or   election   of  one  or  more
      candidates.

            (c)   Election.   Any   general   or   special
      election  held  to  elect  or remove a member of the
      Santa Monica City Council,  the  Santa  Monica  Rent
      Control  Board,  or  any other elected office of the
      City of Santa Monica.

            (d)     Organization.     Any     corporation,
      association,     partnership,    committee,    labor
      organization,  political  party,  or  other  similar
      legal  entity  or arrangement, whether organized for
      profit or not.

            (e)  Person.  A natural  born  individual,  as
      well as any organization.

            (f)   Small   Contributor   Political   Action
      Committee.    "Small  contributor  political  action
      committee" means any committee which  meets  all  of
      the following criteria:

                  (1)   All  of   the   contributions   it
      receives  from  any  person in a twelve month period
      total $50 or less.

                  (2)  It has been in existence  at  least
      six months.

                  (3)  It contributes  to  at  least  five
      candidates within a three (3) year period.

                  (4)  It is not  a  candidate  controlled
      committee.

                  (5)  It receives contributions from more
      than 100 persons.

            SECTION 11203.  Limitations  on  Contributions
      from Persons.

            (a)  No person shall make to any candidate for
      office  or  to  the  controlled  committee of such a
      candidate or to  any  committee  which  supports  or
      opposes    such   candidate,   a   contribution   or
      contributions totaling more than Two  Hundred  Fifty
      Dollars  ($250.00)  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 or any committee which
      supports or opposes such candidate shall accept from
      any  person a contribution or contributions totaling
      more than Two Hundred Fifty  Dollars  ($250.00)  for
      each election.

            SECTION 11204.  Return  of  Contributions.   A
      contribution  shall not be considered to be received
      if it is not negotiated, deposited, or  utilized  in
      any  way,  and  in addition if it is returned to the
      donor within ten (10) days of receipt.

            SECTION 11205.  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.

            (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  a  parent  -
      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  subdivision  shall  not
      apply   to   treasurers   of   committees  if  these
      treasurers do not participate in or control  in  any
      way   a   decision   on  whether  the  candidate  or
      candidates receive contributions.

            SECTION 11206.  Loans.

            (a)  A loan shall be considered a contribution
      from  the maker as well as the guarantor, if any, of
      the loan and shall be subject  to  the  contribution
      limitations of this Chapter.

            (b)  Every loan to a  candidate  or  committee
      shall  be  by  written  agreement and shall be filed
      with  the  candidate's   or   committee's   campaign
      statement on which the loan is first reported.

            (c)  A loan made to a candidate  or  committee
      by  a  commercial lending institution in the regular
      course of business on the same  terms  available  to
      members  of  the  public shall not be subject to the
      contribution limitations of this Chapter.

            (d)  Extensions of credit,  other  than  loans
      pursuant  to  subdivision (c) of this Section, for a
      period of more than thirty (30) days are subject  to
      the contribution limitations of this Chapter.

            SECTION 11207.  Family Contributions.

            (a)  Contributions by a husband and wife shall
      be  treated  as separate contributions and shall not
      be aggregated under this Chapter.

            (b)  Contributions by minors shall be  treated
      as  contributions  by  their parents or guardian and
      attributed equally to each parent or guardian.

            SECTION 11208.  Filing  of  Statements.   Each
      candidate  and each committee supporting or opposing
      a candidate or candidates or any ballot measure  and
      each  member of the Santa Monica City Council, Santa
      Monica Rent Control  Board,  or  any  other  elected
      office  of the City of Santa Monica, shall file with
      the City Clerk each statement required under Chapter
      4  of  Title  9  of  the  Government Code (Political
      Reform Act of 1974).

            SECTION  11209.   Printed   Literature.    All
      literature  that  is  printed by or on behalf of any
      person, candidate or committee  including,  but  not
      limited  to,  small  cards  and billboards, shall be
      identified  with  the  name  and  address   of   the
      candidate   or   committee,   or   chairperson   and
      secretary, or at least two officers of the political
      group  or  organization on whose behalf or order the
      same is printed.  If the literature  is  printed  on
      behalf of any person or group of persons who are not
      also a candidate or committee, the person  or  group
      of persons shall be identified.  Such identification
      of said persons shall be printed legibly  and  shall
      be   appropriate   to  the  size  and  type  of  the
      literature, but in no event shall such  printing  be
      less  than  in  six (6) point type.  Compliance with
      Government Code Sections  84305  et  seq.  shall  be
      deemed compliance with this Section.

            SECTION  11210.   Candidate's   Statement   of
      Qualifications.

            (a)  Each  candidate  for  Santa  Monica  City
      Council,  Santa  Monica Rent Control Board, or other
      elected office of the  City  of  Santa  Monica,  may
      prepare   a   statement   of   qualification  on  an
      appropriate form provided by the City  Clerk.   Such
      statement  may include the name, age, and occupation
      of the candidate and a brief description of no  more
      than  two  hundred  (200)  words  of the candidate's
      education  and  qualifications  expressed   by   the
      candidate.   Such  statement  shall  be filed in the
      office  of  the  City  Clerk  when  the  candidate's
      nomination  papers  are returned for filing.  It may
      be withdrawn but not changed during  the  period  of
      filing  nomination papers and until 5:00 p.m. of the
      next working day after the close of  the  nomination
      period.

            (b)  The City Clerk shall send to  each  voter
      together  with  a  sample ballot, a voter's pamphlet
      which  contains  the  written  statements  of   each
      candidate's qualifications that is prepared pursuant
      to this Section.  The statement  of  each  candidate
      shall  be  printed  in  type  of  uniform  size  and
      darkness and with uniform spacing.  The  City  Clerk
      shall  provide for and certify a Spanish translation
      to those candidates who wish to have one.

            (c)  The  costs  of  printing,  handling,  and
      translating  of  any statement submitted pursuant to
      this Section shall be paid by the City.

            (d)  The City Clerk may reject  any  statement
      which  contains  any obscene, libelous or defamatory
      matter, which violates the constitutional  or  civil
      rights  of  any  person,  or  which is prohibited by
      state or federal law from being  circulated  through
      the mail.

            (e)  Nothing in this Section shall  be  deemed
      to   make  any such statement or the authors thereof
      free or exempt from any civil or criminal action  or
      penalty  because of any false or libelous statements
      offered for printing or  contained  in  the  voter's
      pamphlet.

            SECTION  11211.   Distribution  of  Newsletter
      Prohibited   During   Campaign.   No  newsletter  or
      similar matter shall be circulated by  mass  mailing
      or  similar method by the Santa Monica City Council,
      Santa  Monica   Rent   Control   Board,   or   their
      administrative officers as follows:

            (a)  Within eighty-eight (88)  days  prior  to
      any  municipal election to approve or disapprove any
      ballot measure.

            (b)  Within eighty-eight (88) days prior to an
      election to select any member of its governing body.

            (c)  After any member of  its  governing  body
      has   filed   a   nomination  petition  pursuant  to
      Municipal Code Section 11000.

            SECTION 11212.  Ballot Order.  In any election
      for   any   City   office,  the  order  in  which  a
      candidate's name or ballot measure shall  appear  on
      the  ballot shall be randomly determined by the City
      Clerk.

            SECTION  11213.   Format  for  Petitions   for
      Recall,  Initiative, Referendum, or Amendment of the
      City Charter.  Any petition for recall,  initiative,
      referendum,  or  amendment  of the City Charter must
      substantially  comply  with  the  applicable  format
      contained in this Section or alternatively, with the
      applicable sections of the California Elections Code
      governing   the  same  matters.   In  addition,  the
      proponent(s) of any such petition must  comply  with
      all  other  applicable  sections  of  the California
      Elections Code including, but not  limited  to,  any
      requirements  relating  to the filing of a notice of
      intent to  circulate  petition,  summary  and  title
      prepared  by  the  City Attorney, any publication or
      posting  obligations,  any   time   limitation   for
      securing signatures, and any filing requirements.

            (a)   Sample Initiative Petition Format.   The
      form   for   an   initiative   petition   shall   be
      substantially in the form set forth in Exhibit A.

            (b)   Sample   Charter   Amendment    Petition
      Format.   The  form for a petition to amend the City
      Charter shall be substantially in the form set forth
      in Exhibit B.

            (c)   Sample Referendum Petition Format.   The
      form    for   a   referendum   petition   shall   be
      substantially in the form set forth in Exhibit C.

            (d)   Sample  Recall  Petition  Format.    The
      following  form  for  a  recall  petition  shall  be
      substantially in the form set forth in Exhibit D.

            SECTION 11214.  Acceptance of Petition.  Prior
      to  circulating a petition, any person may request a
      determination from the City Clerk that the  petition
      form  is  in  substantial  compliance  with the form
      required by Section 11213.   The  City  Clerk  shall
      have  seven  (7) days from receipt of a petition for
      initiative, referendum  or  amendment  of  the  City
      Charter  to  determine  whether  the  petition is in
      substantial compliance with the format permitted  by
      this Chapter.  If, within this time period, the City
      Clerk fails to reject the petition for noncompliance
      with  the  acceptable  format, the petition shall be
      conclusively presumed to be in compliance  with  the
      proper  format and shall not be rejected for failing
      to be in the form required by law.  Recall petitions
      shall  be reviewed in accordance with the procedures
      set forth in Elections Code Section 27031.5.

      SECTION 2.  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, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.

      SECTION 3.  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  any  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 4.  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 after 30 days from its adoption.

APPROVED AS TO FORM:

__________________________________
ROBERT M. MYERS
City Attorney