Kara Randell - A contributor in the 2023 Councillor Ward 20, Scarborough Southwest By-Election who appears to have contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996

Section 88.34(2) of the Municipal Elections Act, 1996 requires the City Clerk to prepare a report identifying each contributor to a candidate for office on a council who appears to have contravened any of the contribution limits under Section 88.9.     3. Section 88.9(1) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to a candidate in an election is $1,200. Further, Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000.   4. The report dated November 20, 2024, from the City Clerk identified Kara Randall as a contributor who appeared to have exceeded the $1,200 contribution limit to the election campaign of Jessica Hines (the "Candidate"). The report (November 20, 2024) from the auditor, BDO Canada LLP, identified Kara Randall (the "Contributor") to have contributed $1,500 in the form of a website received by the Candidate on September 28, 2023.    5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report from the City Clerk, dated November 20, 2024, setting out the audit process and the findings with respect to the Contributor.     6. The Contributor attended virtually and provided an oral submission. The Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to an unintentional oversight. The Contributor explained that she was unaware that there were limits for in-kind contributions. The Contributor stated she is now familiar with the contribution limits and expressed her remorse. 7. The Candidate provided a written submission. In her written submission, the Candidate explained she ran this campaign with the help of a small volunteer team, including a volunteer bookkeeper tracking her finances. The Candidate also explained that she was overwhelmed with the volume of her responsibilities, especially given this was her first time running in a municipal election. Accordingly, the Candidate acknowledged that she should have exercised greater due diligence in managing her campaign finances and took full responsibility for her oversight. The Candidate stated that neither parties realized that this would contravene the Municipal Elections Act, 1996 and that the Contributor made an honest mistake when trying to help her friend, with no intention to disregard or undermine the law. 8. The Candidate also appeared virtually and provided an oral submission. The Candidate expressed that she and the Candidate did not intend to contravene the contribution limits in the Municipal Elections Act, 1996. The Candidate explained that she was not clear on the rules pertaining to in-kind contributions, but moving forward, she will be more meticulous about following the rules relating to contribution limits. 9. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against the Contributor for the contravention of Section 88.9 of the Municipal Elections Act, 1996.     10. There was a contravention of the contribution limit because the Contributor exceeded the contribution limit, notwithstanding the contravention was unintentional. Further, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor. 11. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629.  12. In accordance with Section 88.22(1)(r)(i) of the Municipal Elections Act, 1996, it is the candidate's obligation to ensure that each contributor is informed of the total maximum of $1,200 to any one candidate in an election. In the Committee's view, the responsibility rests with the candidate to fully understand their legal obligations with respect to the receipt of contributions and contribution limits. When a candidate chooses to seek office, they accept that they must understand and comply with the rules including campaign finance rules. A candidate should seek professional or legal advice in order to ensure that they meet their obligations in the Municipal Elections Act, 1996.