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HomeMy WebLinkAboutORD-18-92 Add New Ch 2.10 Title 2 Relating to Campaign ReformORDINANCE NO. 18- 92 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE ADDING NEW CHAPTER 2. 10 TO TITLE 2 OF THE ORANGE MUNICIPAL CODE RELATING TO CAMPAIGN REFORM.The City Council of the City of orange does hereby ordain as follows:SECTION I:That Chapter 2.10 be, and the same is hereby added to Title 2 of the Orange Municipal Code, to read as follows: 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 2.10. 190 2.10. 200 2.10. 210 2.10. 220 2.10. 230 2.10. 240 CHAPTER 2. 10 CAMPAIGN REFORM Name. Purpose.Relation to Political Reform Act of 1974. Definitions.Contribution Limitations.Aggregation of Contributions.Election Cycles.Prohibition on Multiple Campaign Committees.Prohibition on Transfers.Loans to City Candidates and Elective city Officers and Their Controlled Committees.Money Received by Officials Treated as Contributions.Solicitation of Contributions From Persons Who Have City Business Dealings.Transmittal of Campaign Contributions in City Office Buildings.Disclosure of Occupation and Employer.Criminal Misdemeanor Actions.civil Actions.Injunctive Relief.Cost of Litigation.Statute of Limitations.Applicability of Other Laws. severability.Interpretation of Chapter.Amendments and Additional Requirements.Effective 2.10.010 Hame. This Chapter shall be known and may be cited as the "city of Orange Campaign Reform Law." 2.10.020 Puroose. The purpose of this Chapter is to ensure that the financial strength of certain individuals or organiza- tions 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 reduce the influence of large contributions, to ensure that individuals and interest groups continue to have a fair and equal opportunity to participate in electing City candidates, and to 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 defined in this Chapter, or the contrary is stated or clearly appears from the context, words and phrases shall have the same meaning as when they are used in Title 9 of the California Government Code, in which the Political Reform Act of 1974 is codified, as the same may be, from time to time, amended. 2.10.040 Definitions. A. who is a candidate for Mayor, Clerk, or City Treasurer of the City Candidate" means any person member of the City Council, City 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. 2.10.050 Contribution Limitations. A. No person shall make to any City candidate or the controlled committee of any such City candidate, and no such candidate or committee shall accept from any such person, a contribution or contributions totaling more than: (1) $500 in a City Council, City Clerk, or city Treasurer election cycle; (2) $500 in a Mayoral election cycle; or (3) 250 in a recall election cycle. B. The contribution limitations set forth in Section 2.10.050A(3) 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 received by such elective City officer, during a recall election cycle as defined in Section 2.10. 070C of this Chapter. C. Any person or committee that spends or incurs more than 25% of its independent expenditures during the 12 months preceding a City election on independent expenditures supporting or opposing City candidate(s) shall not accept any contribution(s) from any person in excess of the amounts set forth in Section 2.10. 050A during the applicable time period as set forth in Section 2.10.070 of this Chapter. D. The provisions of this section shall not apply to a Citycandidate's contribution of his or her personal funds to his or Ord.No.18-92 her own campaign committee, but shall apply to contributions from a spouse. 2.10.060 Aaareaation 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 to an elective city officer (or to a committee controlled by such candidate or officer) shall be combined with those contributions made by the sponsor(s) of the committee and the combined amount shall not exceed the contribution limits specified in section 2.10. 050A within the applicable time period set forth in section 2.10.070 of this Chapter. B. Two or more entities shall be treated as one person when any of the following circumstances apply: 1) The entities share the majority 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. ship. 4) The entities are in a parent-subsidiary relation-C. 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.D. 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 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.E. contributions in section 2.10. 050D,comes exclusively from by a husband and wife, except as set forth shall be aggregated unless a contribution the separate property of one spouse.F. Contributions by children under eighteen years of age shall be treated as contributions by their parents.2.10.070 Election Cvc1es. A. Mayor Elections. For purposes of the limits of this Chapter, contributions made at any time between the final date for contributions in the last election for Mayor and November 30 of the present election year, shall be deemed mayoral election contributions.3 Ord.No. B. city Council, City Clerk, and City Treasurer Elections. For purposes of the limits of this Chapter contributions made at any time between the final date for contributions to the last election for that same City Council, City Clerk, or City Treasurer seat and November 30 of the present election year, shall be deemed City Council, city Clerk, or City Treasurer election contribu- tions. C. Recalls. For purposes of the limits of this Chapter, campaign 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. 2.10.080 Prohibi tion on Mu1 tiDle CamDaiqn Committees. A City candidate or an elective City officer shall have no more than one campaign committee which shall have only one bank account out of which all qualified campaign and office holder expenses related to that City office shall be made. 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 Prohibition on Transfers. A. No funds may be transferred into any city candidate or elective City officer 's campaign committee from any other campaign committee controlled by a candidate (including said City candidate) or by an elective officer (including said elective City officer). B. No City candidate and no committee controlled by a City candidate or elective City officer shall make any contribution to any other City candidate running for office or to any committee supporting or opposing a City candidate for elective City office. This section shall not prohibit a City candidate from making a contribution from his or her own personal funds to his or her own candidacy or to the candidacy of any other candidate for elective city office. 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. Ord.No.18-92 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 elec- tive City officer by a commercial lending 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. Extensions of credit (other than loans pursuant to section 2.10.100C) for a period of more than 30 days are subject to the contribution limitations of this Chapter. E. This section shall apply only to loans and extensions of credit used or intended for use for campaign purposes or which are otherwise connected with the holding of public office. 2.10.110 Money Received bY Officials Treated as Contributions. Any funds, property, goods or services, other than government funds, received by elective City officers which are used, or intended by the donor or by the recipient to be used, for expenses (including legal expenses) related to holding public office, shall be considered campaign contributions and shall be subject to the limitations of this Chapter. Reimbursement for reasonable travel expenses related to holding public office shall be excluded from the provisions of this section. 2.10.120 Solicitation of Contributions From Persons Who Have City Business Dea1inqs. No non-elected 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 the City official or employee or has had such a matter pending during the preceding 12 months. This section does not apply to a non-elected City official or city employee who is a City candidate acting in furtherance of his or her own controlled committee.2.10.130 Transmittal of CamDaiqn contributions in city Office Bui1dinqs. A. No person shall receive or personally deliver or attempt to deliver a contribution in any office which the City owns or for which the City pays the majority of the rent.B. For purposes of this section:1) "Personally deliver" means delivery of a contribu-tion in person or causing a contribution to be delivered in person by an agent or intermediary, other than the United states Mail.2) "Receive" includes the receipt of a campaign contribution delivered in person.5 Ord. 2.10.140 Disclosure of OccuDation and EmD1over. 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 file in the records of the recipient of the contribution. 2.10.150 Criminal Misdemeanor Actions. A. Any person who willfully violates any provision of this Chapter is guilty of a misdemeanor. 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, shall be liable under the provisions of this section. B. No person convicted of a misdemeanor under this Chapter shall be a candidate for an elective city office or act as a City contractor for a period of four years following the date of the conviction unless the court at the time of sentencing specifically determines that this provision shall not be applicable. A plea of nolo contendere shall be deemed a conviction for purposes of this section. 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 unlaw- fully 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. Any person, other than the City Attorney, before filing a civil action pursuant to this subdivision, shall 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. The City Attorney, within 30 days of receipt of the request, 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 City Attorney indicates in the affirmative and files a civil action or criminal charges wi thin 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 Ord.No.18-92 of culpability of the defendant. If a judgment is entered against the defendant or defendants ~n 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 General Fund. B. The term "city Attorney" as used in this section and section 2.10.170 shall mean and refer to the District Attorney of Orange County, or such other legal counsel as appointed by the city Attorney or City Council, in any instance in which such matter is referred to, and accepted by, such District Attorney or other legal counsel. In any instance where such matter is referred to and accepted by the District Attorney or other legal counsel, any civil recovery pursuant to section 2.10.160D shall 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, or such other legal counsel for the City as appointed by the city Attorney or City Council, may sue for injunctive relief to enjoin violations or to compel compliance with the provisions of this Chapter. 2.10.180 Cost of Li tiaation. The court may award to a plaintiff, other than a pUblic agency, who prevails in any action authorized by this Chapter, his or her costs of litigation. 2.10.190 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. 2.10.200 Chapter shall other laws of ADD1icabi1itv of Other Laws. exempt any person from applicable this state or jurisdiction. Nothing in this provisions of any 2.10.210 Severabi1itv. If any provision of this Chapter, or the application of any such provision to any person or circum- stances, shall be held invalid, the remainder of this Chapter to the extent it can be given effect, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby, and to this extent the provisions of this Chapter are severable. 2.10.220 Interoretation of ChaDter. This Chapter should be liberally construed to accomplish its purposes. 2.10.230 Amendments and Additional Requirements. The city Council shall review the contribution limitations contained in this Chapter in January of every fourth year commencing 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. 7 Ord.No.18- 2.10.240 Effective Date. The provisions of this Chapter shall become effective on November 30, 1992." SECTION II: A summary of this Ordinance shall be published and a certi- fied 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 to be adopted. A summary of this Ordinance shall also be published once within fifteen (15) days after this Ordinance's passage in the Orange City News, 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 become effective on November 30, 1992. ADOPTED this 28th day of July 1992. ATTEST: A/~~ ~"~A'/~ City Cle of e ty of Orange STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, MARILYN J. JENSEN, 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 21 st day of July , 1992, and thereafter at the regular meeting of said city Council duly held on the ?RTn day of July , 1992, was duly passed and adopted by the following vote, to wit: AYES: COUNCIL MEMBERS: STEINER, BARRERA, MAYOR BEYER. COONTZ, SPURGEOH NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE m4/U~*~ city Clerk f th C~ of Orange Ord.No.18-92 8 ROF: