Model City Charter Revision Project - Eighth Edition

Option Memo

Issue: Campaign Finance Reform

Seventh Edition: The seventh edition of the Model Charter contains no language requiring or encouraging cities to adopt any rules relating to the financing of campaigns.

Analysis of the Issue: Many cities have laws that require candidates for local office to disclose information associated with campaign contributions and expenditures. At least 121 cities have taken the additional step of creating laws intended to limit the amount of money that can be contributed to, or spent by, or on behalf of, a candidate during a campaign for local office. Nearly three fourth of these laws were enacted since 1990. Most of these laws were passed as ordinances but at least six of them are contained in city charters.

The proliferation of these laws reflects a growing concern by cities about the impact of large amounts of private money in elections. While the response to this concern has taken various forms, the approaches can generally be described as attempting to reach one of two goals. The first goal is to expose or reduce large private contributions to candidates for public office. These large contributions are perceived as providing the contributor with increased access to, and influence over, candidates voted into office. The second goal is to attempt to control expenditures made by, or on behalf of, candidates during their campaigns for public office. Left uncontrolled, candidates that are either well financed, or supported by well-financed interests, are considered to have a decisive advantage in modern campaigns that are increasingly reliant on consultants, pollsters, and expensive media advertisements.

Some could consider campaign finance legislation as inherently complex and detailed, and thus inappropriate for inclusion in a city charter. Another perspective, however, is to view such laws as essential to preserving the integrity of local elections and thus deserving of at least some reference in the charter.

Two Options: The Committee should adopt one of the following options:

1. The Model Charter shall remain without any reference to campaign finance reform.
2. The Model Charter shall be amended to include a menu options from below:
   1. Reporting of Campaign Contribution and Expenditures
   • Including name, occupation, and industry of contributor
   • Preference for reporting by electronic means when available
   2. Disclosure of Campaign Contribution and Expenditures
   • Preference for disclosure by electronic means when available
   3. Contribution Limits
      
      • Limitations on time and place for fundraising
      • Source limitations (i.e. corporations, unions, city contractors)
      • Limitations on amount
   4. Voluntary Spending Limits with Non-Financial Incentives (i.e. variable contribution limits, publication of non-compliance, public forum space)
   5. Voluntary Spending Limits with Financial Incentives (i.e. public financing, media buy