Title
Election Funding Disclosure (Dark Money) (Ordinance G-6617)
Description
Request City Council approval of an ordinance amending Chapter 12, Article VII of the Phoenix City Code by revising Division 2 on campaign finance and adding a new Division 3 relating to election funding disclosure obligations.
Report
Summary
The "Keep Dark Money Out of Local Phoenix Elections Ordinance" is intended to secure the right of City of Phoenix residents to know the source of all major contributions made to influence the result of a local Phoenix election, to prevent actual corruption and its appearance, and to protect the integrity of Phoenix elections. On Nov. 6, 2018, City of Phoenix voters passed Proposition 419 with 85 percent of votes in favor, for a Charter Amendment requiring election funding disclosure. On July 3, 2019 Gov. Doug Ducey signed the Charter Amendment. This report provides the City Council with information on election funding disclosure and provides a draft ordinance for Council consideration (Attachment A).
This ordinance will require entities currently not subject to disclosure under State law, including nonprofit organizations, to disclose expenditures of $1,000 or more to influence the outcome of a City of Phoenix election, as well as the source(s) of contributions received of $1,000 or more, including any intermediary through which such contributions passed. These disclosure reports will be filed with the City Clerk Department within 48 hours of making an expenditure of $1,000 or more. The disclosure will be required for any person or association that makes independent expenditures to influence a City candidate or ballot measure election. Entities that are found to be in violation of this ordinance may be fined up to three times the amount spent on the expenditure they failed to disclose.
Concurrence/Previous Council Action
On Feb. 15, 2018, then Councilwoman Kate Gallego, Councilwoman Debra Stark and then Mayor Greg Stanton requested an item be placed on a Formal agenda related to a proposed Charter Amendment regarding the disclosure of the contribution source for election-related independent expenditures, sometimes referred to as "dark money."
At the March 7, 2018 Formal Meeting, the City Council approved an eight-hour rule request for staff to conduct research on proposed ballot language for election funding disclosure.
On April 17, 2018, the Sustainability, Housing, Efficiency, and Neighborhoods Subcommittee approved a draft ordinance.
At the May 2, 2018 Formal Meeting, the City Council adopted an ordinance referring the proposed Charter Amendment regarding election funding disclosure to voters at the General Election on Nov. 6, 2018.
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the City Clerk Department.