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HomeMy WebLinkAboutORD-04-96 Amend Ch. 2.10 Campaign ReformORDINANCE NO. 4- 96 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING CHAPTER 2.10 OF THE ORANGE MUNICIPAL CODE PERTAINING TO CAMPAIGN REFORM.The City Council of the City of Orange does hereby ordain as follows:SECTION I:Chapter 2.10 of the Orange Municipal Code is deleted in its entirety and replaced with the following: Sections:2.10. 010 2.10. 020 2.10. 030 2.10. 040 2.10. 050 2.10. 060 2.10. 070 2.10. 080 2.10. 090 2.10. 100 2.10. 110 2.10. 120 2.10. 130 2.10. 140 2.10. 150 2.10. 160 2.10. 170 2.10. 180 Chaoter 2. 10 CAMPAIGN REFORM Name Purpose Relation to Political Reform Act of 1974 Defmitions Contribution Limitations Aggregation of Contributions Election Cycles Prohibition on Multiple Campaign Committees Limitations on Transfers Loans to City Candidates and Elective City Officers and their Controlled Committees Solicitation of Contributions from Persons Having City Business Dealings Transmittal of Campaign Contributions in City Office Buildings Disclosure of Occupation and Employer Reporting of Cumulative Contributions Criminal Misdemeanor Actions Civil Actions Injunctive Relief Statute of 2.10.190 2.10.200 2.10.210 Applicability of Other Laws Interpretation of Chapter Amendments and Additional Requirements 2.10.010 Name. This Chapter shall be known and may be cited as the "City of Orange Campaign Reform Law." 2.10.020 Purnose. The purpose of this Chapter is to ensure that the fmancial strength of certain individuals or organizations does not permit them to exercise a disproportionate or controlling influence on the election of City Candidates. To achieve such purpose, this Chapter is designed to (1) reduce the influence of large contributions; 2) ensure that individuals and interest groups continue to have a fair and equal opportunity to participate in electing City Candidates; (3) ensure that multiple contributions in excess of the contribution limits do not originate from a single source; and (4) maintain public trust in governmental institutions and the electoral process. 2.10.030 Relation to Political Reform Act of 1974. This Chapter is intended to supplement the Political Reform Act of 1974. Unless the term is specifically defmed in this Chapter, or the contrary is stated or clearly appears from the context, words and phrases shall have the same meaning as those set forth in the Political Reform Act and as it may be amended from time to time. 2.10.040 Defmitions. A. "City Candidate" means any person who is a candidate for Mayor, member of the City Council, City Clerk or City Treasurer of the City of Orange. B. "Elective City Officer" means any person who is Mayor, a member of the City Council, City Clerk, or City Treasurer of the City of Orange, whether appointed or elected. C. "Appointed City Official" means any person who is an appointed member of a City board, commission or committee. D. "Contribution" means money, in kind services or other things of value and as is further defmed in the Political Reform Act of 1974 to be used for campaign purposes or for the expenses, including legal expenses, of holding an elected City office. 2.10..050 Contribution Limitations. A. No person shall make and no City Candidate or treasurer of a controlled committee of a City Candidate shall solicit or accept, any contribution or contributions totaling more than: (1) $500 per Mayoral election cycle; (2) $500 per City Council, City Clerk or City Treasurer election cycle; (3) 250 per recall election cycle; or (4) $500 per special election cycle. B. The contribution limitations set forth in Section 2.1O.0S0A shall also apply to any committee which collects contributions for the purpose of making expenditures in support of or opposition to the recall of an Elective City Officer and to contributions 2 received by such Elective City Officer, during a recall election cycle as defined in Section 2.1O.070C of this Chapter. C. Any committee that spends or incw's more than 25% of its independent expenditures during the 12 months preceding a City election on independent expenditures supporting or opposing a City Candidate or City Candidates, shall be subject to the contribution limitations set forth in this Chapter. D. The contribution limitations of this section shall not apply to a City Candi.date's contribution of his or her separate or community property funds to his or her own controlled committee or campaign, but contributions by a spouse from separate property shall be subject to the limitations set forth in this section. 2.10.060 Aglp'egation of Contributions. For purposes of the limitations in this Chapter, the following shall apply: A. All contributions made by a sponsored committee to a City Candidate or Elective City Officer or to their committees, shall be aggregated in equal proportions with contributions made by the sponsor(s) of the committee. B. Contributions by committees or persons shall be aggregated whenever such committee or person directs or controls the contribution either directly or through an intemlediary or other committee. C. Two or more entities shall be treated as one person when any of the following circumstances apply: I) The entities share the majOlity of members of their boards of directors; 2) The entities share two or more officers; 3) The entities are owned or controlled by the same majority shareholder or shareholders; 4) The entities are in a parent-subsidiary relationship.D. An individual and any general or limited partnership in which the individual has a 10% or more share, or an individual and any corporation in which the individual owns a controlling interest (50% or more), shall be treated as one person.E. No committee which supports or opposes a City Candidate shall have as a majority of its officers, individuals who serve as the majority of officers on any other committee which supports or opposes the same City Candidate. No such committee shall act in concert with or solicit or make contributions on behalf of any other such committee. This subdivision shall not apply to treasurers of committees if these treasurers do not participate in or control in any way a decision on whether the candidate or candidates receive contributions.F. Contributions by a husband and wife, except as set forth in Section 2.1O.0S0D, shall be aggregated unless the c.ontribution is made exclusively from the separate property of the contributing spouse.G. Contributions by children under eightel:n (18) years of age shall be treated as contributions by their parent(s) or legal guardian(s) in equal amounts, unless only one parent or guardian has legal custody in which event such contribution shall be attributed solely to such person. 2.10.070 Election Cvcles. A. Mayor Elections: For the purposes of this Chapter, contributions made at any time between January 1st following a mayoral election year to December 31st of the next mayoral election year shall be aggregated in determining whether the contribution limits of this Chapter have been violated. B. City Council, City Clerk and City Treasurer Elections: For the purposes of this Chapter, contributions made at any time between January 1st of a City Council, City Clerk and/or City Treasurer election year to December 31st of the next election year for each such office shall be aggregated in determining whether the contribution limits of this Chapter have been violated. C. Recall Elections: For the purposes of this Chapter, contributions made at any time after a committee has been formed pursuant to the provisions of the Political Reform Act in support of a recall election or after the City Clerk has approved a recall petition for circulation and gathering of signatures, whichever occurs first, shall be considered contributions during a recall election cycle. A recall election cycle shall end whenever any of the following occur: 1) The recall proponents fail to return signed petitions to the City Clerk within the time limits set forth in the California Elections Code. 2) All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act. 3) Ten days after a recall election has been held. D. Special Elections: For the purposes of this Chapter, contributions made at any time between the period commencing on the date the City Council calls a special election for any City elected office and concluding on the 60th day following the special election, shall be aggregated in determining whether the contribution limits of this Chapter have been violated. 2.10.080 Prohibition on Multiple Camoaign Committees. A City Candidate or an Elective City Officer shall have no more than one controlled committee for each elective office which shall have only one bank account out of which all qualified campaign and office holder expenses related to that City office shall be paid. This section does not prevent a City Candidate or an Elective City Officer from establishing another campaign committee solely for the purpose of running for a state, federal, local or other City office. 2.10.090 Limitations on Transfers. A. Intercandidate Transfers Between City Candidates: No City Candidate or Elective City Officer may transfer contributions from his or her controlled committee to the controlled committee of another City Candidate or Elective City Officer. This section does not prohibit a City Candidate or Elective City Officer from making personal contributions to a City Candidate which do not exceed the contribution limits set forth in this Chapter. 4 B. Intracandidate Transfers Between Other Committees: No contributions may be transferred into any City Candidate's or Elective City Officer's controlled committee from any other committee which that City Candidate or Elective City Officer controls. C. Intercandidate Transfers Between Other Committees: No contributions may be transferred into any City Candidate or Elective City Officer's controlled committee from any other controlled committee. This section does not prohibit a candidate from making personal contributions to a City Candidate which do not exceed the contribution limits set forth in this Chapter. 2.10.100 Loans to City Candidates and Elective City Officers and their Controlled Committees. A. A loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limitations of this Chapter. B. Every loan to a City Candidate or Elective City Officer or their controlled committees shall be by written agreement which shall be filed with the candidate's or committee's campaign statement on which the loan is first reported. C. The proceeds of a loan made to a City Candidate or Elective City Officer by a (;ommerciallending institution in the regular course of business on the same terms available to members of the public shall not be subject to the contribution limitations of this Chapter if the loan is made directly to the City Candidate or Elective City Officer or his or her controlled committee. The guarantors of such a loan shall remain subject to the contribution limits of this Chapter. D. Notwithstanding any other provision of this section, a City Candidate or Elective City Officer shall not make any loan to his or her controlled committee in excess of $10,000 in any election cycle. Nothing herein shall be construed to otherwise limit a City Candidate's or Elective Officer's contribution to his or her campaign. E. Extensions of credit (other than loans pursuant to Section 2.1O.100C) for a period of more than 30 days are subject to the contribution limitations of this Chapter. F. This section shall apply only to loans and extensions of credit used or intended for use for campaign purposes or which are otherwise counected with the holdirlg of an elective city office. 2.10.11 0 Solicitation of Contributions from Persons Who Have City Business Dealings. No Appointed City Official or City employee shall solicit, direct or receive a contribution from any person, or his or her agent, who has a proceeding involving legislative or administrative action pending before sllch Appointed City Official or City employee or has had such a matter pending during tht; preceding 12 months. This section does not apply to an Appointed City Official or City, employee who is a City Candidate acting in furtherance of his or her own controlled comumttee. 2.10.120 Transmittal of Camoaign Contributions in City Office Buildings. No person shall receive or personally deliver or attempt through an intermediary to have 5 personally delivered, a contribution in any office which the City owns or for which the City pays the majority of the rent. 2.10.130 Disclosure of Occuoation and Emolover. No campaign contribution shall be deposited into a campaign bank account of a City Candidate or Elective City Officer unless the disclosure information required by the Political Reform Act, including the name, address, occupation and employer of the contributor or, if self employed, name of business, is on me in the records of the recipient of the contribution. 2.10.140 Rel'orting of Cumulative Contributions. It shall be the responsibility of all City Candidates to report cumulative contributions totaling $100 or more, for the applicable election cycle, on campaign statements filed pursuant to the Political Reform Act. 2.10.150 Criminal Misdemeanor Actions. A. Any person who willfully violates any provision of this Chapter or any person who willfully causes or solicits any other person to violate any provision of this Chapter, or who aids and abets any other person in the violation of any provision of this Chapter is guilty of a misdemeanor. B. No person convicted of a misdemeanor under this Chapter shall be a candidate for an elective City office or contract with the City for a period of four years following the date of the conviction. 2.10.160 Civil Actions. A. Any person who intentionally or negligently violates any provision of this Chapter shall be liable in a civil action brought by the City Attorney or by a person residing within the jurisdiction for an amount not more than three times the amount the person failed to report properly or unlawfully contributed, expended, gave or received or $5,000 per violation, whichever is greater. B. If two or more persons are responsible for any violation, they shall be jointly and severally liable. C. Before filing a civil action pursuant to this subdivision, persons other than the City Attorney must first file with the City Attorney a written request for the City Attorney to commence the action. The request shall contain a statement of the grounds for believing a cause of action exists. Within 30 days of receipt of the request, the City Attorney shall conduct an initial inquiry into the merits of the complaint. If the City Attorney determines in good faith that additional time is needed to examine the matter further, the complaining party shall be notified and the City Attorney shall automatically receive an additional 60 days in order to determine the merits of the complaint. At the end of 60 days, the City Attorney shall inform the complaining party whether the City Attorney intends to file a civil action or is conducting a criminal investigation. If the civil action or criminal charge is filed within 30 days thereafter, no other action may be brought unless the action brought by the City Attorney is dismissed without prejudice. D. In determining the amount of liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. 6 E. If a judgment is entered against the defendant or defendants in an action,the plaintiff shall receive fifty percent of the amount recovered. The remaining fifty percent shall be deposited into the City's general fund. In an action brought by the City Attorney, the entire amount shall be paid to the City's general fund.F. The term "City Attorney" as used in this section shall mean and refer to the City Attorney, the District Attorney of Orange County, or such other legal counsel as appointed by the City Attorney. If such a case is referred and accepted by the District Attorney or other legal counsel, any civil recovery pursuant this section may be shared in such manner as agreed by the City and such counsel.2. 10.170 Iniunctive Relief. Any person residing in the jurisdiction, including the City Attorney, may sue for injunctive relief to enjoin violations or to compel compliance with the provisions of this Chapter.2. 10.180 Statute of Limitations. Civil actions and/or criminal prosecutions for violations of any provision of this Chapter shall be commenced within four years after the date on which the violation occurred.2. 10.190 Applicability of Other Laws. Nothing in this Chapter shall exempt any person from applicable provisions of any other laws of this state or jurisdiction.2. 10.200 Interoretation ofChaoter. This Chapter should be liberally construed to accomplish its purposes.2. 10.210 Amendments and Additional Reauirements. The City Council shall review the contribution limitations contained in this Chapter in January of every fourth year '~ ommencing in 1996 and determine whether such limitations shall be increased,decreased, or remain the same. In the event the City Council determines that such limitations should be amended, it shall do so by holding a public hearing and adopting an ordinance reflecting such amendments. "SECTION II:Severability: If any provision of this Chapter is held to be invalid and of no force and effect, such invalidity shall not effect other provisions of this Chapter which can be enforced without the invalid provision and to this degree, the provisions of this Chapter are severable.SECTION III:A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the Office: of the City Clerk at least five (5) days prior to the City Council meeting at which this Ordinance is adopted. A summary of this 7 Ordinance shall also be published once within fifteen (15) days after this Ordinance's passage in a newspaper of general circulation, published, and circulated in the City of Orange. The City Clerk shall post in the Office of the City Clerk a certified copy of the full text of such adopted Ordinance along with the names of those City Council members voting for and against the Ordinance in accordance with Government Code Section 36933. This Ordinance shall take effect on December I, 1996. Adopted this 9th day of l~pril 1996. ATTEST: 1/ / t.4~~~~~ 0~tz /~~ ?7,~.Af/ l..:: t-Cityof Orange STATE OF CALIFORNIA)COUNTY OF ORANGE )CITY OF ORANGE )1, CASSANDRA J. CATHCART, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 12th day of. /'larch , 1996, and thereafter at a regular meeting of said City Council duly held on the 9th day of Apr il , 1996, was duly passed and adopted by the following vote, to wit:AYES:NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: ~ IURPHY BARRERA COONTZ SPURGEON SI,ATER COUNCIL MEMBERS: NONE COUNCIL MEMBERS: NONE COUNCIL MEMBERS: NONE 6J/.!Ai~ 4 ~A12-u l (;;:t;h/'A/d.City Clerk oftht{tityof Orange Ord. No.4-96 8 DAD:dg