With three seats up for election in November, Morro Bay City Council candidates will have new limits on campaign donations, after the City Council unanimously approved setting individual limits far below what State Law allows.
The City Council approved a local ordinance (Ordinance No. 675, Chapter 2.50) setting the campaign limits at $500 for “candidate-controlled committees,” reads the report from new City Attorney, Brian Stack.
So, anyone who wishes to donate to their favorite city council candidate is limited to $500 total within 90 days of an election.
However, a candidate can donate or loan his or her campaign up to $100,000 under State Law.
The interest in a local campaign limit ordinance started last October when the Council voted to have such an ordinance come back for discussion, Stack said.
“Prior to 2021,” Stack said, “there were no campaign contribution limits on local political races unless the jurisdiction established their own limits. Like Morro Bay, many local jurisdictions did not have local contribution limits.”
In 2021, he added, Assembly Bill 571 went into effect and put in default limits for donations for local offices. “Local jurisdictions,” Stack said, “could still establish their own limits, but if they did not the state limits would apply by default.”
The default limits were set at $5,500 with a clause to adjust for inflation and are now $5,900 per donor per election.
The personal contributions made by the candidates themselves were not included on “First Amendment” principles. However, “There is a $100,000 cap on personal loans from a candidate to their controlled committee, unless the local jurisdiction establishes their own contribution limits,” Stack said.
And if a donation blows past the limit, the candidate could be in trouble.
“Contributions either in the aggregate or on their face that exceed the established limit,” Stack’s report said, “shall be deemed not to have been accepted if returned within 14 days of receipt, so long as the committee did not make use of the contribution.
“Existing city penalties and enforcement mechanisms (specifically administrative citations, criminal prosecution, and civil actions) would be available in the event violations occur that are not remedied by the candidate within 14 days.”
There are advantages to setting the campaign limit so low.
Stack explained, “Establishing local campaign contribution limits of less than $1,000 would simplify reporting requirements for campaigns, as there would be no need for treasurers to prepare, or the City to accept 24-hour contribution reports for contributions of $1,000 or more in the 90 days leading up to an election.”
And such low donations fall below the threshold where a council person would have to disclose it or recuse himself “related to business and land use permitting.”
By passing its own campaign limit ordinance, enforcement now falls entirely on the city’s election official, the city clerk and prosecution would fall to the city attorney. The State Fair Political Practices Commission (FPPC) would no longer be the go-to enforcement agency.
The standard penalties that the City has for breaking its local ordinances would apply. “This includes administrative fines beginning at $100 per violation up to $500 for repeat violations, criminal prosecution as an infraction or misdemeanor, and civil actions for injunctive relief and civil penalties.”
“The local campaign contribution limits,” Stack continued, “and regulations being proposed are straightforward, provide a reasonable grace period and would likely be self-enforcing given existing reporting requirements that would remain unaffected by the local ordinance.”
The new ordinance, however, does not mention campaign contributions for ballot initiatives. In the November 2024 General Election, none of the city council candidates were opposed on the ballot and the only thing Morro Bay voters faced was Measure A-24, a citizen’s initiative that sought to throw up a roadblock to a proposed Battery Energy Storage System (BESS) Project being proposed by power plant owners, Vistra.
Two citizen-led camps arose in the fight over Meas. A24 — Citizens For Estero Bay Preservation in support and Morro Bay Citizens Opposed to Measure A-24 against it.
In the run up to the election the opposition forces were greatly bolstered with some large campaign donations from outside political entities.
On Sept. 23, (2024) the Opposed Citizens’ Group filed paperwork listing a $26,000 donation from the “Local Jobs & Economic Development Fund” based in Dover, Del.
Two days later, a second form showed the Local Jobs & Economic Development Fund donated another $22,800 for a total of $48,800.
It was by far the two largest donations to a Morro Bay election campaign in town history.
Outside money continued to roll in as the opposition folks filed paperwork on Sept. 28 recording a $7,000 donation from “Green Light Action” out of Washington, D.C. and another $15,000 donation on Oct. 1 from Green Light Action.
Ironically, Vistra, which had the most to lose, stayed out of the fray.
In comparison the supporters of Meas. A-24 reported getting about $19,000 for the entire campaign.
All told, the opposition to Meas. A-24 amassed the largest war chest in the town’s history at some $90,000, but it was for naught, as the measure was approved with some 59% of the vote.
At the time, the city clerk said the big donations were perfectly legal. “Contributions to ballot measure committees are not limited by State Law,” City Clerk Dana Swanson said back then.
AB 571 does not put any donation limits on ballot initiatives, whether they are local, countywide or statewide.
The new ordinance will be in effect in November, when Mayor Carla Wixom and Councilwomen Zara Landrum and Cyndee Edwards will be due for re-election.
The official nomination period doesn’t happen until the end of summer. It remains to be seen if all three run again and if anyone steps up to challenge them for the seats.
In 2024, the three council spots were uncontested and Mayor Wixom and Councilmen Jeff Eckles and Bill Luffee won by default. It was the first election where all three council seats were uncontested.
