Article I. Findings and Purpose

3.13.010 Title

3.13.020 Findings and Declarations

3.13.030 Purpose of this Act

Article II. Definitions

Unless the term is specifically defined in this Act or the contrary is stated or clearly appears from the text, the definitions set forth in Chapter 3.12 of the Oakland Municipal Code and in Government Code sections 81000 et seq. as amended in 1998 govern the interpretation of this Act.

There is hereby established an account within a special revenue fund of the City of Oakland to be known as the "Election Campaign Fund."

1. The Oakland City Council shall appropriate to the Election Campaign Fund, under the

City’s current two year budget cycle, an amount sufficient to fund all candidates for city office eligible to receive limited matching funds from the Election Campaign Fund.

b) The Oakland Ethics Commission shall provide in the form and at the time directed by the Mayor and City Manager a written estimate of the amount necessary to be appropriated for any two year budget cycle according to the provisions of this Act for all eligible candidates. The amount of funds to be allocated to the Election Campaign Fund shall be based on a consideration of anticipated campaign activity, anticipated administrative costs, and existing unspent funds within the account. The amount of funds to be allocated to the Election Campaign Fund shall not exceed $460,000 for any two year budget cycle, except that the allocation may exceed $460,000 to reflect changes in the consumer price index. The Ethics Commission may limit the allocation of funds for any primary election to assure that sufficient funds remain available for the general election.

c) The Election Campaign Fund shall be established as an interest bearing account. Unspent funds in the Election Campaign Fund at the end of a two year budget cycle shall remain in the Fund and accrue for disbursement to candidates eligible for matching funds in future elections and for administrative costs pursuant to subsection 3.13.060(d) below. In no event shall additional allocations to the Fund be made to cause the available balance in the Fund to exceed five hundred thousand dollars ($500,000), to include allocations made to the Public Ethics Commission pursuant to subsection 3.13.060(d) below.

d) Up to 7.5% of the amount allocated to the Election Campaign Fund pursuant to subsections 3.13.060 (a) and (b) may be utilized by the Public Ethics Commission to cover the anticipated cost of administering the provisions of this Act. The Public Ethics Commission shall make a sufficient proportion of such funds available to the City Auditor to conduct compliance reviews as provided in section 3.13.100.

a) Each candidate for city office no later than the time of filing his or her declaration of candidacy, shall file a statement with the City Clerk on a form approved for such purpose indicating acceptance or rejection of the voluntary spending ceilings under Oakland Municipal Code section 3.12.190.

b) A candidate who intends to accept public matching funds from the Election Campaign Fund shall sign an oath under penalty of perjury that the candidate and the candidate’s controlled committee have complied with and will continue to comply with all applicable contribution and expenditure limitations under the Oakland Campaign Reform Act at all times in which the limits apply to the candidate’s candidacy for the office in contest.

c) If a candidate declines to accept the voluntary expenditure ceilings prescribed in Oakland Municipal Code section 3.12.200, the candidate shall be subject to the contribution limits of Sections 3.12.050(a) and 3.12.060 (a) and shall not be eligible for matching funds.

d) If a candidate agrees to accept the voluntary expenditure ceilings prescribed in Oakland Municipal Code, section 3.12.200, the candidate shall be subject to the contribution limits of Oakland Municipal Code sections 3.12.050 (c) and 3.12.060 (c) as adjusted pursuant to sections 3.12.050(d) and 3.12.060(d), and shall be eligible for public matching funds upon meeting the qualification requirements as provided in this Act.

e) A candidate who agrees to accept the expenditure ceilings in Oakland Municipal Code section 3.12.200 shall not change the decision, unless an opposing candidate files a statement of rejection, or as otherwise provided in Oakland Municipal Code section 3.12.220. In the event an opposing candidate files a statement of rejection, any candidate for the same office may rescind his or her acceptance within 10 calendar days of the deadline for filing nomination papers, provided that the candidate has not accepted any contributions in amounts greater than the limitations set for in Oakland Municipal Code section 3.12.050 (a) and 3.12.060(a). Any candidate rescinding his or her acceptance of the expenditure ceilings shall not be eligible for public matching funds. In the event expenditures ceilings are lifted pursuant to Oakland Municipal Code section 3.12.220, a candidate who accepted expenditure ceilings shall be permitted to continue receiving matching public funds but shall no longer be subject to expenditure ceilings.

An eligible candidate shall be approved to receive public matching funds if the candidate meets all of the following requirements:

a) The candidate has filed a timely statement of acceptance of the voluntary spending ceilings and acceptance of public matching funds.

c) The financial statements required by the Public Ethics Commission to be filed by the candidate or candidate’s controlled committee indicate that the candidate has received matchable contributions in an aggregate amount of at least 5 percent of the expenditure ceiling for the office being sought. Matchable contributions shall consist of only the first $100 or less of a contribution or contributions received by the candidate for the office sought from each individual contributor to the candidate or candidate’s controlled committee and do not include any contributions received eighty eight or more days prior to closing of the nomination period for the office sought.

d) The candidate is opposed by another candidate for the same office who has qualified for matching funds, or the candidate is opposed by another candidate for the same office whose campaign reports indicate that the opposing candidate has received contributions or made expenditures or has cash on hand in an amount of at least 7 percent of the voluntary expenditure ceiling for that office.

e) The candidate agrees to all conditions and requirements of the use of public funds set forth in the Act and submits to any reasonable audits deemed appropriate by the Ethics Commission or other civil authorities.

Unless the voluntary expenditure ceilings are lifted in accordance with Oakland Municipal Code section 3.12.220, a candidate who accepts public matching funds shall not receive a contribution or contributions from the candidate’s own funds that exceed 5 percent of the voluntary expenditure ceiling for the office being sought. If the voluntary expenditure ceilings for the office being sought are lifted, this provision shall not apply.

Article V. Disbursement of Public Matching Funds.

a) The Ethics Commission shall develop any and all forms necessary to carry out the provisions of the Act, including forms for statements of acceptance or rejection of expenditure ceilings and forms for candidate requests for public matching funds.

b) The Commission shall cause the review of the statements of acceptance or rejection, nomination papers, requests for public subsidies and other campaign financial reports in a timely fashion to certify a candidate’s eligibility to receive public matching funds.

c) The certification of a candidate’s eligibility for public matching funds shall provide the reasons why a candidate is or is not eligible, the amount of the public matching funds disbursed, and what actions a candidate may take to correct any insufficiencies.

d) The City Auditor shall conduct a mandatory audit or audits of all candidates accepting public matching funds. Audits shall be conducted of other candidates to determine compliance with the eligibility requirements of section 3.13.80(c). The results of any audit(s) conducted shall be provided to the Ethics Commission.

110. Matching Fund Formula

A certified candidate shall receive public matching funds according to the following formula:

a) One dollar of public matching funds for each dollar raised of the first $100 or less contributed by each individual contributor per election.

b) The total amount of public funds allocated to each candidate shall not exceed 15 percent of the voluntary expenditure ceiling per election for the office being sought.

120. Disbursement of Public Funds

1. A candidate or candidate’s controlled committee, certified as eligible to receive public

matching funds, shall submit a request for public matching funds to the Ethics Commission each time a threshold of $3,000 or more in matchable funds is reached.

b) A candidate or candidate’s controlled committee, certified as eligible to receive public matching funds, may submit a request for public matching funds of $1,000 or more 10 calendar days before the election.

c) The Ethics Commission shall have 10 calendar days to cause the review and approval or denial of the request and disburse the public funds to the candidate or candidate’s controlled committee.

d) The request for public matching funds shall be made on a form determined by the Commission, but shall include copies of each check eligible to be matched by public funds.

All public funds shall be deposited directly into the candidate’s campaign checking account.

140. Use of Matching Funds

Public matching funds may only be used for legitimate campaign expenses incurred by a candidate during the election for which the funds were allocated.

150. Return of Matching Funds

1. Public matching funds provided by this Act remain the property of the City until

disbursed or encumbered for lawful campaign purposes.

2. Unencumbered matching funds must be returned to the Election Campaign Fund

within ten business days from the day following the defeat, withdrawal or election to office by the certified candidate. Any unencumbered campaign funds remaining after the defeat, withdrawal or election to office by the certified candidate, up to the amount of matching funds received for that election by the candidate, shall be considered unencumbered matching funds to be returned to the Election Campaign Fund pursuant to this section.

c) Public matching funds shall not be disbursed to the certified candidate from the Election Campaign Fund to match any contribution following the defeat, withdrawal, or election to office by the candidate.

160. Proof of Payment

a) Each certified candidate or candidate’s controlled committee which received public matching funds shall provide to the Ethics Commission sufficient proof of all disbursements made from matching funds no later than the due date for the next campaign finance report.

1. The last such report providing proof of payment shall be delivered to the Ethics

Commission not later than thirty (30) days following the defeat, withdrawal, or election to office of the candidate.

c) The Ethics Commission shall determine what constitutes sufficient proof of payment.

170. Public Debates

While not a condition for receiving matching funds, candidates receiving public matching funds are strongly encouraged to participate in one or more nonpartisan candidate debates for each election.

The Public Ethics Commission is the sole body for civil enforcement of this Act. In the event criminal violations of the Act come to the attention of the Public Ethics Commission, the Commission shall promptly advise in writing the City Attorney and the appropriate prosecuting enforcement agency.

Any person who knowingly or willfully misrepresents his or her eligibility for matching funds is guilty of a misdemeanor. Any person who knowingly or willfully causes any other person to violate any provision of the Act, or who knowingly or willfully aids and abets any other person in violation of any provision of this Act, shall be liable under the provisions of this section. Prosecution for violation of any provision of this Act shall be commenced within four (4) years after the date on which the violation occurred.