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Smart Voter
Los Angeles County, CA March 8, 2011 Election
Charter Amendment LA-H
Restriction on Campaign Contributions from City Contractors
City of Los Angeles

Charter Amendment - Majority Approval Required
Official Results

Pass: 159,832 / 74.9% Yes votes ...... 53,586 / 25.1% No votes

See Also: Index of all Measures

Information shown below: Summary | Fiscal Impact | Official Information | Impartial Analysis | Arguments |

Shall the Charter be amended to (1) restrict campaign contributions and fundraising by bidders on certain City contracts; require increased disclosure for bidders; and provide for bans on future contracts for violators; and (2) build upon the city's voter-approved campaign trust fund, which provides limited public matching funds for qualified City candidates who agree to spending limits, by lifting the maximum balance in the fund while allowing the City Council by a two-thirds vote to not make the annual appropriation and temporarily transfer funds to meet City budgetary obligations in certain emergency conditions?

Summary Prepared by
Ballot Simplification Committee:
THE SITUATION:

The City Charter limits campaign contributions to candidates. The Charter also provides a source of matching funds to candidates for City office, from the Matching Funds Trust Fund, which is not to exceed $8 million.

THE PROPOSAL:

This measure would:

  • Ban bidders on contracts of $100,000 or more from contributing to, and restrict fundraising for, City officials and candidates for a City office with authority to approve the contract; and
  • Eliminate the $8 million cap on the Matching Funds program, and allow the City to temporarily borrow from that fund in certain circumstances.

A YES VOTE MEANS:

You want to further restrict campaign contributions and fundraising by persons bidding on City contracts on behalf of elected City officials and candidates, and to lift the cap on the City's Matching Funds Trust Fund.

A NO VOTE MEANS:

You do not want to further restrict campaign contributions and fundraising by persons bidding on City contracts on behalf of elected City officials and candidates, and to lift the cap on the City's Matching Funds Trust Fund.

Fiscal Impact from Miguel A. Santana
City Administrative Officer:
This measure would restrict campaign contributions and fundraising and require increased disclosure by prospective City contract bidders and ban violators from future City contracts. These specific provisions of the measure are not expected to result in any additional revenue or cost to the City.

This measure eliminates the limitation currently set for the Matching Campaign Trust Fund, which is approximately $12 million. As a result, it will now require an annual contribution of approximately $3 million, subject to the change in the consumer price index. If the City Council declares a fiscal emergency and suspends the annual contribution requirement borrows from the Fund, the suspended borrowed amount would be required to be repaid when the funds are needed for its intended purpose or before the end of the subsequent year, whichever is earlier. This measure would reduce General Fund money available to fund other City functions such as public safety and/or community services.

- - - - -
Above corrections incorporate allegations made in L.A. Times editorial of February 16. Voters' sample ballots will retain the original wording.

Official Sources of Information

Impartial Analysis from Gerry F. Miller
Chief Legislative Analyst
The City Charter currently contains various limits and restrictions on contributions to and fundraising for elected City officials and candidates for City offices. However, no contribution or fundraising restrictions specific to firms bidding on City contracts currently exist in the Charter.

This Charter amendment would create new campaign contribution restrictions on contractors bidding on contracts with the City. It would ban contractors who are bidding on contracts worth $100,000 or more, and subcontractors that are expected to receive at least $100,000 from performing their portion of the contract, from the following:

  • Making campaign contributions to any elected City office, candidate for elected City office, or City committee controlled by an elected City official or candidate if the contract requires approval of the Council; and
  • Making campaign contributions to any elected City office, candidate for elected City office, or City committee controlled by an elected City official or candidate if the contract requires approval by the elected City office that is held or sought by the person to whom the contribution would be given.

This measure would also establish restrictions on hiring underwriters to sell City Revenue Bonds if the firm or its principals have given gifts or made contributions over the specified amounts to elected officials having a role in the decision to hire the underwriters.

The measure provides time-frames in which the prohibitions would remain in place.

The Charter provides for a public matching funds program for candidates for City offices and provides for a Matching Funds Program Trust Fund. Candidates can receive public funds to match funding from private sources provided that the candidates meet certain requirements.

The Matching Funds Program Trust Fund is used to provide matching contributions to candidates for City offices. The Charter requires the City to annually contribute $2 million in 1991 dollars, as adjusted by the Consumer Price Index (CPI), to that Trust Fund from the City's General Fund. The Charter caps the total amount that the Matching Funds Program Trust Fund can contain at $8 million in 1991 dollars, as adjusted by the CPI. Transfers from the City's General Fund to the Matching Funds Program are not required when the Program's Fund has reached its cap, and any amount in that fund above the cap is required to be transferred back to the City's General Fund.

This Charter amendment would remove the cap on the Matching Funds Program Trust Fund and would require the City to make annual contributions of the mandated amount to that Fund, regardless of how much money is in the Trust Fund. This Charter amendment would allow the City Council, by a two-thirds vote, to temporarily borrow from the Matching Funds Program Trust Fund, or withhold or reduce an annual contribution to the Trust Fund from the City's General Fund, if the City Council has declared a fiscal emergency and the Trust Fund contains at least $8 million in 1991 dollars as adjusted by the CPI.

This measure will become effective if approved by a majority of voters.

Contact FOR Charter Amendment LA-H:
Taxpayers for Honest Government
sponsored by Californians for Fair Elections,
3916 S. Sepulveda Blvd, Suite 109
Culver City, CA 90230.
Phone: (310) 397-0200.
Fax: (888) 633-8898.

  Nonpartisan Information

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Arguments For Charter Amendment LA-H Arguments Against Charter Amendment LA-H
Special Interests are always trying to buy influence at City Hall. Charter Amendment H will help stop them.

Our city faces serious challenges. Our elected officials should focus on addressing them instead of spending time fundraising for their next campaign.

Vote YES for Charter Amendment H to rein in pay-to-play politics and change the way we finance election campaigns. Charter Amendment H will:

  • Prohibit campaign contributions and fundraising by bidders on most large City contracts.

  • Increase disclosure requirements for bidders for City contracts.

  • Punish violators by banning them from winning city contracts for up to four years.

  • Strengthen Campaign Finance Trust Fund established by Los Angeles voters by lifting the maximum balance in the fund to give candidates greater incentive to agree to the city's voluntary campaign spending limits.

  • Protect taxpayers and public funds because it will not increase taxes or take away from other important programs, and has provisions to protect the budget in fiscal emergencies.

The League of Women Voters of L.A. says:

"Candidates shouldn't have to be wealthy or know wealthy donors to have a chance to run for office and win. Charter Amendment H will help voters choose city officials who have the best ideas and experience, not just the best fundraisers."

Bob Stern, co-author of the 1974 Political Reform Act, says:

"Measure H will strengthen the Ethics and Campaign Finance laws passed overwhelmingly by Los Angeles voters in the original Measure H in 1990."

Join the nonpartisan coalition of nurses, teachers, small business owners, good government experts, consumer groups, workers, seniors, environmentalists, and faith communities in voting YES on H.

VOTE YES ON H: CAMPAIGNS SHOULD BE WON, NOT BOUGHT BY SPECIAL INTERESTS.

For more information, please visit http://www.YesFairElections.org

PERSONS SIGNING ARGUMENT IN FAVOR OF
CHARTER AMENDMENT H

ERIC GARCETTI
Council President
City of Los Angeles

JOSÉ HUIZAR
Councilmember
City of Los Angeles

DAVID HOLTZMAN
President
League of Women Voters of Los Angeles

KATHAY FENG
Executive Director
California Common Cause

ANTONIO GONZALEZ
President
Southwest Voter Registration Education Project

TRENT LANGE
President
California Clean Money Campaign

BOB STERN
President
Center for Governmental Studies

BRAD PARKER
Small Business Owner

SARAH K. PILLSBURY
California Participation Project

IDA MAE WINDHAM
Retired Principal
Cleveland High School

Rebuttal to Arguments For

Vote NO on Charter Amendment H

Charter Amendment H is a boondoggle that provides millions of your tax dollars to politicians to fund their campaigns.

Charter Amendment H DOES NOTHING to stop politicians from raising money from special interests, lobbyists, and developers for unlimited independent expenditures that allow them to control City Hall.

At a time when our city faces serious challenges: a massive budget deficit, continued threats to fire and police service, library and park closures, and crumbling infrastructure, some people think of nothing better than to spend your money on their own political campaigns.

Taxpayer funded campaigns in the face of massive cuts to core services show how out of touch some people are.

The last thing the City of Los Angeles needs is increased taxpayer funded campaigns.

VOTE NO ON H: CAMPAIGNS SHOULD BE CONTROLLED BY VOTERS AND CAPPED, NOT BOUGHT WITH YOUR TAX DOLLARS

PERSONS SIGNING REBUTTAL TO THE ARGUMENT IN FAVOR OF CHARTER AMENDMENT H

GREIG SMITH
Councilman
City of Los Angeles

GREGORY N. LIPPE
Immediate Past Chair
Valley Industry and Commerce Association ("ViCA")

JOEL FOX
President
Small Business Action Committee

JAN PERRY
Councilwoman
City of Los Angeles

VICTORIA BOURDAS
Former Chair
North Valley Regional Chamber

WAYNE ADELSTEIN
President & CEO
North Valley Regional
Chamber of Commerce

SCOTT STERLING Owner,
Sterling Construction

VOTE NO ON MEASURE H to protect your money against the City of Los Angeles giving away more of your taxpayer dollars for political campaigns.

NO ON MEASURE H preserves crucial taxpayer dollars at a time the City is in the worst financial crisis since the Great Depression, and still faces a $350 million structural deficit. Now is not the time to spend more taxpayer funds to pay for political campaigns.

NO ON MEASURE H prevents additional cuts to overtime pay for Police Officers, more rolling brownouts for firefighters, and deeper cuts to City staff already reduced by over 3,000 employees. Now is not the time to spend more taxpayer funds to pay for political campaigns.

NO ON MEASURE H shields Recreation and Parks programs, youth and senior services and libraries from additional closures, and daycare centers and after-school programs from being further slashed. Now is not the time to spend more taxpayer funds to pay for political campaigns.

NO ON MEASURE H safeguards investment in infrastructure, tree trimming, street paving, graffiti removal and other vital services that have already been decimated by the global financial crisis from future cuts. Now is not the time to spend more taxpayer funds to pay for political campaigns.

Measure H will NOT prevent special interests with deep pockets and City contracts from influencing elections through unlimited multi-million dollar independent expenditure campaigns.

Vote NO on Measure H -- Los Angeles can't afford to spend more taxpayer money to pay for political campaigns.

PERSONS SIGNING ARGUMENT AGAINST
CHARTER AMENDMENT H

GREIG SMITH
Councilman
City of Los Angeles

DENNIS P. ZINE
Councilman
City of Los Angeles

GREGORY N. LIPPE
Immediate Past Chair
Valley Industry & Commerce Association

BERNARD C. PARKS
Councilmember
City of Los Angeles

CARMEN TRUTANICH
City Attorney
City of Los Angeles

JOEL FOX
President
Small Business Action Committee

Rebuttal to Arguments Against

THE TRUTH ABOUT MEASURE H

Measure H will NOT cost L.A. more money. Opponents will say anything to protect special interests that spend millions to buy elections.

As taxpayers, we want an honest City government. We need H.

VOTE YES ON H: Stop politics-as-usual at City Hall.

"As taxpayers, we need to ensure that services we care about + public safety, parks, libraries, youth and senior services, LAX + aren't auctioned off to the biggest campaign donors." -- Raquel Beltran, League of Women Voters of Los Angeles.

Measure H reins in pay-to-play politics by banning bidders on City contracts from giving or raising campaign contributions and strengthening the Campaign Trust Fund.

DON'T TRUST SPECIAL INTERESTS OPPOSING H AND DEFENDING THE CURRENT SYSTEM.

Join the League of Women Voters, small business owners, nurses, neighborhood councils, religious leaders, and good government groups in voting YES.

VOTE YES ON H: H is for Honest Government

www.YesFairElections.org

ERIC GARCETTI
Council President
City of Los Angeles

JOSÉ HUIZAR
Councilmember
City of Los Angeles

LAURA N. CHICK
California Inspector General

DEANN MCEWEN, RN
Co-President
California Nurses Assoc.

REVEREND DR. RICK SCHLOSSER
Executive Director
California Council of Churches

WAYNE WILLIAMS
San Fernando Valley
Small Business Owner

ISAAC BURK
Retired Fireman
Echo Park Resident

MARGARITA AMADOR
CPAB Co-Chair LAPD
Hollenbeck Division

CHARLOTTE LAWS
Member
Greater Valley Glen Council

RUSSEL BROWN
President
Downtown LA Neighborhood Council


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Created: September 13, 2011 11:10 PDT
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