Miami weighs more disclosure by candidates for office

The City of Miami may soon require candidates for office to provide more thorough financial disclosures to increase transparency regarding campaign contributions.

Today (2/22), the city commission is to vote on the first reading of an ordinance that would require candidates who give or lend themselves more than $1,000 to produce an aged funds report proving the money’s origins. Commissioner Joe Carollo, who sponsored the legislation, said it aims to close a loophole that allows candidates to receive contributions from third parties and label them as personal loans.

During the Jan. 11 commission meeting, Mr. Carollo introduced a resolution directing the city manager, attorney and clerk to draft an ordinance providing for additional financial disclosures from candidates and to return before the commission with a proposed amendment in February. The resolution passed 3-2 with Commissioners Miguel Gabela and Damian Pardo dissenting.

Now, the proposed ordinance before the commission would amend city code to require candidates in municipal elections to provide an aged funds report for all personal loans made to their campaign over $1,000.

“Each candidate who gifts or loans themselves an aggregate of funds in excess of $1,000 in any municipal election shall be required to file an aged funds report with the City Clerk certifying, under the penalty of perjury, that the candidate had said funds in the originating account for a minimum of four months immediately prior to the candidate making said gift or loan,” reads the amendment.

A candidate who failed to file the report by the due date would be subject to a $500 fine.

“In pursuit of comprehensive campaign finance reform, it is imperative to address the issue of ‘aged money’ in the context of loans to self, whereby candidates may strategically time the reporting of such loans to obscure the true financial picture of their campaigns, necessitating clear regulations to ensure timely and accurate disclosure of all financial transactions to the public and relevant authorities,” the legislation states.

If approved on first reading today, the ordinance must pass a second reading to become official.