09.01 Campaign Contributions from Committees ORD 04-19 �� .0�9�
1� :'GORPORqTe: 'V'
7'ti'::`3� O`•, �
�' - �= AGENDA ITEM
:�
Z�,�c�`�GA�`�o
July 9, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Gary A. Sheatz, City Attorney
REVIEW: City Manag r Finance
1 . SUBJECT
Ordinance No. 04-19 — Introduction and first reading of an Ordinance of the City Gouncil
of the City of.Orange related to Campaign.Contributions from C.ommittees.
2.. SUMMARY
An ordinance of the City Council of the City of Orange amending Title 2 of the Orange
Municipal Code, by amending Chapter 2.10; section 2.10.090 regulating contributions
from committees. .
3. RECOMMENDED ACTION
Adopt Ordinance No: 04-19.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 1: Provide outstanding public service
a. Obtain, implement, and evaluate public input into our services and pr.ograms.
6. DISCUSSION AND BACKGROUND
City campaigns.are primarily regulated by the Political Reform Act ("Act"), Government
Code Section 8100 et seq. However, Government Code does allow cities to adopt local
contribution limits and other campaign regulations as long as they do not conflict uvith
state law. As such, in 1992, the City of Orange adopted a campaign reform ordinance
codified in Chapter 2.10 of the Orange Municipal Code.
Shirley Grindle, the original author of the City of Orange Campaign Reform Law, recently
recommended several clarifying amendments .to City Code sectio.n 2.10.090 regulating
contributions from committees. Ms. Grindle's suggestions were provided to clarify rules
ITEM � • � 1 7/09/2019
that apply to existing transfer requirements and one-time intra-candidate campaign
committee transfers.
The proposed changes are summarized as follows:
1. Amendment to OMC Section 2.10.090 C.2.
This amendment adds language clarifying that the transferred contributions shall
be deemed contributed, aggregated, during the same election cycle in which they
are received. While this may seem obvious and unnecessary it was not specifically
stated and is important for calculating campaign contribution limits during an
election cycle. Changes to this section also include the requirement that
transferred contributions shall be itemized on Schedule A of Form 460 and identify
the transferor committee for those contributions transferred. Here again is a
provision that implied reporting transferred funds would be itemized but was not
specifically stated. The amended language makes City Candidate compliance
easier. '
2. Amendment to OMC Section 2.10.090 C.3.
The old language has been eliminated in its entirety. It required a City Candidate
to notify each contributor, to which a transferred contribution is attributed, of the
amount of the transfer, and thereafter file an affidavit of proof of compliance with
this section when he or she files their campaign disclosure statement. Failure to
comply with this section called for the transferred funds to be forFeited to the City's
general fund. Aside from being confusing and cumbersome to comply with, this
provision is likely unenforceable under existing state law. As this provision has
never been complied with, nor enforced by this office, the City Attorney
recommends deleting it from the Code.
Replacement language has been added clarifying the rules for one-time intra-
candidate campaign committee transfers. It provides that a City Candidate shall
make a one-time transfer of campaign contributions from a different campaign
controlled committee only at the time he or she forms their City campaign
committee. Subsequent contributions from a transferor committee are prohibited.
3. Delete OMC Section 2.10.090 C.4. in its entirety.
With the adoption of the revised language proposed in the preceding section this
section is redundant and no longer necessary. -
The City Attorney has reviewed and recommends the changes proposed in Section
2.10.090 C, as attached. The amendments clarify existing transfer and reporting
provisions making compliance easier and less cumbersome and eliminates redundancy
in the Code.
7. ATTACHMENT
• Ordinance No. 04-19 - Clean
• Ordinance No. 04-19 — Redline
ITEM 2 7/09/2019
ORDINANCE NO. 4-19
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING SECTION 2.10.090
OF THE ORANGE MUNICIPAL CODE RELATING
TO CONTRIBUTIONS FROM COMMITTEES.
WHEREAS,the City of Orange has adopted campaign reform laws, codified in Chapter
2.10 of the Orange Municipal Code ("Code"), which are intended to supplement the Political
Reform Act of 1974; and
WHEREAS, Section 2.10.090 of the Code regulates the transfer of campaign funds and
contributions to a campaign comrnittee for a City office from another campaign committee; and
WHEREAS, this current Code section is unclear in some regards, and as such, is
cumbersome to comply with and difficult to enforce; and
WHEREAS, the proposed changes provide clarity to the transfer of campaign funds
among campaign committees.
NOW THEREFORE,the City Council of the City of Orange does ordain as follows:
SECTION I.
Orange Municipal Code Section 2.10.090 is hereby amended to read as follows:
2.10.090—Contributions from Committees.
A. Contributions Transferred from Committees. Contributions from candidate controlled
committees to a City Candidate Committee are prohibited except as provided in Section
2.10.090.C.
B. No committee controlled by a City Candidate or Elective City Officer shall make any
contribution to any other committee supporting or opposing a City Candidate for office.
C. Contributions Transferred Between Controlled Committees by the Same City Candidate. If
a City Candidate has more than one controlled committee, any transfers into the City
Candidate's City Candidate Committee sha11 be governed by the following rules:
1. Transferred contributions shall be deemed contributed during the election cycle in
which they are transferred to the receiving City Candidate Committee.
2. Transferred contributions shall be attributed to each contributor on a last in-first out
(LIFO) basis and shall be aggregated with any contributions made by such contributor
directly to the City Candidate Committee in the same election cycle and shall be subj ect
to the contribution limits of this chapter. Transferred contributions shall be itemized on
Schedule A of Form 460 or any successor form, and shall identify the transferor
committee for those contributions being transferred.
3. A one-time transfer shall be made at the time the City Candidate forms his/her
controlled committee. Subsequent contributions received by the transferor committee
on or after the date the City Candidate formed a committee to run for City office may
not be transferred to the transferee committee established for that City office.
D. No person or committee shall accept or make any contribution that is conditioned upon all
or part of the contribution being transferred to a City Candidate Committee or otherwise
violates Government Code Section 84301. Any contributions received in violation of this
subsection shall be paid by the City Candidate to the City's general fund within sixty (60)
days of discovery of the violation.
SECTION II:
Should any section, subsection, clause, or provision of this Ordinance for any reason be
held to be invalid or unconstitutional, such invalidity or unconstitutionaliiy shall not affect the
validity or constitutionality of the remaining portions of this Ordinance;it being hereby expressly
declared that this Ordinance, and each section, subsection, sentence, clause and phrase hereof
would have been prepared, proposed, approved and ratified irrespective of the fact that any one
or more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
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 to be adopted. A summary of this 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.
r
ADOPTED this day of ,2019.
Mark A. Murphy, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
2
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) .
CITY OF ORANGE )
I,PAMELA COLEMAN, 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_day of ,2019, and thereafter at the regular meeting of said City Council
duly held on the_day of ,2019,was duly passed and adopted by the following
vote,to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Pamela Coleman, City Clerk, City of Orange
3
ORDINANCE NO. 4-19
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING SECTION 2.10.090
OF THE ORANGE MUNICIPAL CODE RELATING
TO CONTRIBUTIONS FROM COMMITTEES.
WHEREAS, the City of Orange has adopted campaign reform laws, codified in Chapter
2.10 of the Orange Municipal Code ("Code"), which are intended to supplement the Political
Reform Act of 1974; and
WHEREAS, Section 2.10.090 of the Code regulates the transfer of campaign funds and
contributions from another campaign committee to a campaign committee for a City office; and
WHEREAS, this current Code section is unclear in some regards, and as such, is
cumbersome to comply with and difficult to enforce; and
WHEREAS, the proposed changes provide clarity to the transfer of campaign funds
among campaign committees.
NOW THEREFORE,the City Council of the City of Orange does ordain as follows:
SECTION I.
Orange Municipal Code Section 2.10.090 is hereby amended to read as follows:
2.10.090—Contributions from Committees.
A. Contributions Transferred from Committees. Contributions from candidate controlled
committees to a City Candidate Committee are prohibited except as provided in Section
2.10.090.C.
B. No committee controlled by a City Candidate or Elective City Officer shall make any
contribution to any other committee supporting or opposing a City Candidate for office.
C. Contributions Transferred Between Controlled Committees by the Same City Candidate. If
a City Candidate has more than one controlled committee, any transfers into the City
Candidate's City Candidate Committee shall be governed by the following rules:
l. Transferred contributions shall be deemed contributed during the election cycle in
which they are transferred to the receiving City Candidate Committee.
2. Transferred contributions shall be attributed to each contributor on a last in-first out
�_' '' _ '�; basis and shall be aggregated with any contributions made by such contributor
directly to the City Candidate Committee �1 tl�e � � ��,� .� � cI�and shall be subject
to the contribution limits of this chapter. �� , lr�sl�lr��ct�. � �a�����ric�ns shali be itemized on
� ,-,'rile A of Form 460 or any successor form, and shall identify the transferor
��ulinittee for those contributions being transferred.
3. .
�
s��rc��r�A one-time transfer shall be made at the time the Citv Candidate forms
llis/her controlled committee. Subsequent contributions received by the transferor
committee on or after the date the Citv Candidate formed a committee to run for City
c�ftice mav not be transferred to the transferee committee established for that Citv oftice.
r�,,,�•a.,to�� ,,,;t*oo
D. No person or committee shall accept or make any contribution that is conditioned upon all
or part of the contribution being transferred to a City Candidate Committee or otherwise
violates Government Code Section 84301. Any contributions received in violation of this
subsection shall be paid by the City Candidate to the City's general fund within sixty (60)
days of discovery of the violation.
SECTION II:
Should any section, subsection, clause, or provision of this Ordinance for any reason be
held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the
validity or constitutionality of the remaining portions of this Ordinance;it being hereby expressly
declared that this Ordinance, and each section, subsection, sentence, clause and phrase hereof
would have been prepared, proposed, approved and ratified irrespective of the fact that any one
or more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
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 to be adopted. A summary of this 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.
2
ADOPTED this day of , 2019.
Mark A. Murphy, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE )
I, PAMELA COLEMAN, 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_day of , 2019, and thereafter at the regular meeting of said City Council
duly held on the_day of , 2019,was duly passed and adopted by the following
vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Pamela Coleman, City Clerk, City of Orange
3