5704ORDINANCE NO. 5704
AN ORDINANCE OF THE CITY OF ANAHEIM REPEALING
AND ADDING CHAPTER 1.09 OF TITLE 1 OF THE ANAHEIM
MUNICIPAL CODE RELATING TO CAMPAIGN REFORM
THE CITY COUNCIL OF THE CITY OF ANAHEIM HEREBY ORDAINS
AS FOLLOWS:
SECTION 1.
That Chapter 1.09 of Title 1 of the Anaheim Municipal Code
be, and the same is hereby, repealed in its entirety
SECTION 2.
That new Chapter 1.09 be and the same is hereby, added to
Title 1 of the Anaheim Municipal Code to read as follows:
"CHAPTER 1.09
CAMPAIGN REFORM
This chapter shall be known and may be cited as the "City of
Anaheim Campaign Reform Law."
1.09.020 PURPOSE.
The purpose of this chapter is to ensure that the financial
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 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.
1.09.030 RELATION TO POLITICAL REFORM ACT OF 1974.
This chapter is intended to supplement the Political Reform
Act of 1974. Unless a word or term is specifically defined in
this chapter, or the contrary is stated or clearly appears from
the context, words and terms used herein shall have the same
meaning as defined or used in Title 9 of the California
Government Code, in which the Political Reform Act of 1974 is
codified, and as supplemented by the Regulations of the Fair
Political Practices Commission as set forth in Title 2, Division
6 of the California Code of Regulation, as the same may be, from
time to time, amended.
1
1.09.040 DEFINITIONS.
.010 City Candidate. "City candidate" means any person who
is a candidate for member of the City Council or Mayor of the
City of Anaheim or any elective city officer whether or not such
officer is a candidate for reelection.
.020 City Election. "City election" means any general
election, special election or recall election.
.030 City Office. "City office" shall mean either the
office of Mayor or the office of city council. The two city
council seats which have terms which expire at the same general
municipal election shall be deemed the same city office for
purposes of this Chapter.
.040 Election Cycle. "Election cycle" shall mean the
applicable period as set forth in Section 1.09.060 of this
Chapter.
.050 Elective City Officer. "Elective city officer" means
any person who is a member of the City Council, including the
Mayor of the City of Anaheim, whether appointed or elected.
.060 Indebted Former Candidate. "Indebted former candidate"
means a person, other than an elective city officer, who was a
candidate for a city office at any city election and who has
campaign debt remaining from such election after expiration of
the election cycle for the city office for which he or she was a
candidate.
.070 Person. "Person" means an individual, proprietorship,
firm, partnership, joint venture, syndicate, business trust,
company, corporation, limited liability company, association,
committee, and any other organization or group of persons acting
in concert.
1.09.050 CONTRIBUTION LIMITATIONS.
.010 City Candidates. Except as provided in subsection .020
of this section or Section 1.09.055, no person shall make, and no
city candidate or treasurer of any controlled committee of any
city candidate shall solicit or accept, any contributions which
would cause the total amount contributed by such person to such
candidate or his or her controlled committee to exceed one
thousand dollars ($1,000) during any election cycle for any city
office.
2
.020 Elective City Officers and Candidates With Outstanding
Debt From Prior Election. No person shall make, and no elective
city officer or indebted former candidate, or treasurer of any
controlled committee of any elective city officer or indebted
former candidate, shall solicit or accept, any contributions for
the purpose of retiring outstanding debt from a prior city
election which would cause the total amount contributed by such
person to such elective city officer or indebted former candidate
or to his or her controlled committee, to exceed one thousand
dollars ($1,000) for the election in which the outstanding debt
was incurred, regardless of when the contribution(s) is made or
received.
.030 Recall Elections. The contribution limitations set
forth in Section 1.09.050.010 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 1.09.060 of this chapter.
.040 Independent Expenditures. Any person or committee that
spends or incurs more than twenty-five percent (250) of its
independent expenditures during the twelve (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
1.09.050.010 during the applicable time period as set forth in
Section 1.09.060 Of this chapter.
.050 Candidate's Personal Funds. The provisions of this
section shall not apply to a city candidate's contribution of his
or her personal funds to his or her own controlled committee.
Contributions from community property owned jointly by a city
candidate and his or her spouse shall be deemed contributions by
the city candidate. Contributions by the spouse of a city
candidate from such spouse's separate property shall be subject
to the contribution limitations set forth in Section
1.09.050.010.
1.09.055 EXEMPTION TO CONTRIBUTION LIMITATIONS FOR CAMPAIGN
DEBTS INCURRED PRIOR TO NOVEMBER 3, 1992.
.010 The contribution limitations set forth in Section
1.09.050 shall not apply to any contributions made by any person
to any city candidate, or the controlled committee of any city
candidate, solely to retire any campaign indebtedness incurred by
such candidate or committee on or prior to November 3, 1992,
relating to any city election held on or prior to such date
regardless of whether such contributions are received before or
after the operative date of this chapter.
3
.020 Any person making a contribution to any city candidate,
or the controlled committee of any city candidate, shall be
exempt from the contribution limitations set forth in Section
1.09.050 pursuant to this section only if such contribution is
made by a written instrument containing the name of the donor and
the name of the payee and such instrument contains a written
designation thereon that such contribution is for the purpose of
retiring campaign indebtedness incurred for a specifically
designated city election which occurred on or prior to November
3, 1992.
.030 A city candidate or committee treasurer shall be exempt
from the contributions limitations set forth in Section 1.09.050
pursuant to this Section 1.09.055 only if such contribution is
solicited, accepted and used by such candidate or treasurer
solely for the purpose of retiring campaign indebtedness incurred
on or before November 3, 1992, relating to a city election held
on or prior to such date (hereinafter in this section referred to
as the "outstanding debt").
.040 Any city candidate or committee treasurer claiming any
exemption from the contributions limitations set forth in Section
1.09.050 pursuant to this section shall file a "retirement of
outstanding debt report" (hereinafter the "report") with the City
Clerk, which report shall be filed at the same time and cover the
same reporting period (hereinafter the "reporting period") as
each campaign statement which is required to be filed by such
city candidate and campaign treasurer pursuant to applicable
provisions of the Political Reform Act of 1974, as amended. Such
reports shall continue to be filed by the city candidate and
committee treasurer at the times hereinabove provided until the
outstanding debt is completely retired or extinguished. Each such
report shall include all of the following information:
0401 Outstanding debt as of November 3, 1992;
.0402 Outstanding debt as of July 1, 1993;
0403 Outstanding debt at beginning of reporting period;
.0404 Contributions (identified by source, amount, and
date) received during the reporting period which are used to
retire outstanding debt;
0405 Outstanding debt at end of the reporting period.
.050 Any contributions received during a reporting period
for the purpose of retiring outstanding debt shall be:
El
.0501 Deposited into the campaign fund of the same
candidate or controlled committee which has the outstanding debt;
and
.0502 Applied to the retirement of outstanding debt of
such candidate or controlled committee during the same reporting
period in which received.
1.09.058 OUTSTANDING DEBT RETIREMENT AND REPORTING.
.010 Any elective city officer or indebted former
candidate, or any controlled committee of any such officer or
candidate, accepting any contribution(s) for the purpose of
retiring outstanding debt from a prior city election and required
by state law to report such contributions on Schedule A of Fair
Political Practices Commission Form 460 or any successor
provision thereto, shall, at the time required for the reporting
of such contributions on Schedule A and in addition to any other
reporting requirements under state law, clearly designate on said
Schedule A which contributions were received for the purpose of
retiring outstanding debt and for which prior city election such
contributions were received.
.020 Any contribution accepted for the purpose of
retiring outstanding debt from a prior city election shall be
applied to reduce or retire said outstanding debt in the same
reporting period in which such contribution was accepted. The
application of any contribution to retire outstanding debt from a
prior city election (i.e., repayment of outstanding loans and
payment of accrued expenses) shall be itemized and identified on
the appropriate schedules and on the Summary Page of Form 460, or
any successor form thereto, provided by the Fair Political
Practices Commission.
.030 No elective city officer or indebted former
candidate, or any controlled committee of any such officer or
candidate, shall use any contributions received for the purpose
of retiring outstanding debt from a prior city election for any
purpose other than for the retirement of outstanding debt
remaining from the prior city election for which such
contribution was received.
1.09.060 ELECTION CYCLES.
.010 General Elections. For purposes of any general
election for any city office, the term "election cycle" as used
in this chapter shall mean the period commencing on January 1
immediately following any general election for such city office
and ending on December 31 of the year in which the next general
5
election for the same city office occurs. Notwithstanding the
preceding sentence, following a special election for any city
office, the "election cycle" for the next general election for
said city office shall commence on the thirty-first (31St) day
following said special election and shall end on December 31 of
the year in which the next general election for said city office
occurs.
.020 Special Elections. For purposes of any special
election for any city office, the term "election cycle" as used
in this chapter shall mean the period commencing on the date a
special election is called by the City Council and ending on the
thirtieth (30th) day following said special election.
.030 Recall Elections. For purposes of any recall election
of any city officer, the term "election cycle" as used in this
chapter shall mean the period commencing on either the date a
committee is formed pursuant to the provisions of the Political
Reform Act in support of a recall election or the date the City
Clerk approves a recall petition for circulation and gathering of
signatures, whichever occurs earlier, and ending on the thirtieth
(30th) day following the first to occur of any of the following:
.0301 The time provided by law for the gathering of
signatures on recall petitions expires without sufficient recall
petition signatures having been filed with the City Clerk to
require a recall election;
.0302 All committees formed in support.of the recall
have been terminated pursuant to the provisions of the Political
Reform Act;
.0303 The date the recall election is held.
1.09.070 AGGREGATION OF CONTRIBUTIONS.
For purposes of the contribution limitations contained in
this chapter, the following provisions shall apply:
.010 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 during the same election cycle by the
sponsor(s) of the committee.
.020 Two or more entities shall be treated as one person
when any of the following circumstances apply:
.0201 The entities share the majority of members of
their boards of directors;
on
.0202 The entities are owned or controlled by the same
majority shareholder or shareholders;
.0203 The entities are in a parent -subsidiary
relationship.
.030 An individual and any partnership in which the
individual is a general partner, or an individual and any
corporation in which the individual owns a controlling interest
(fifty percent or more), shall be treated as one person.
.040 Any contributions made by a committee in support of or
in opposition to a city candidate shall be aggregated with the
contributions made by any other committee in support of or in
opposition to the same city candidate if a majority of the
officers of such committees are the same individuals. No
committee shall act in concert with, or solicit or make
contributions on behalf of, any other committee. This subsection
shall not apply to treasurers of committees if such treasurers do
not participate in or control in any way a decision on whether
the candidate or candidates receive contributions.
.050 Contributions by a married person shall be treated as
the separate contributions of such person and shall not be
aggregated with any contributions of the spouse of such person.
.060 Contributions by children under eighteen years of age
shall be treated as contributions by their parent(s) or legal
guardian(s) (one-half to each parent or guardian) unless only one
parent or guardian has legal custody of such child in which event
any such contributions shall be attributed solely to the
custodial parent.
1.09.080 MULTIPLE CAMPAIGN COMMITTEES.
.010 A city candidate shall have no more than one
controlled committee for each city office and such controlled
committee shall have only one bank account out of which all
qualified campaign and officeholder expenses related to that city
office shall be made.
.020 This section does not prevent a city candidate or an
elective city officer from establishing another controlled
committee solely for the purpose of running for a state, federal,
county, or other elective city office, or for opposing his or her
recall. For purposes of this section, candidacy for the same
office at different city elections shall be deemed different city
offices.
11
1.09.090 TRANSFERS OF FUNDS BETWEEN CONTROLLED COMMITTEES.
.010 Nothing contained in this chapter shall prohibit the
transfer of campaign funds from a candidate's controlled
committee for one elective office to the same candidate's
controlled committee for a different elective office except as
hereinafter set forth in this section.
.020 For purposes of this section only, whenever any funds
derived from campaign contributions are transferred from a
candidate's controlled committee for any elective office to that
same candidate's controlled committee for a different elective
office which controlled committee is subject to the contribution
limitations of this chapter (the "transferred funds"), such
transferred funds shall be deemed contributions made to the
controlled committee receiving such transferred funds (the
"transferee committee") by the contributors who made
contributions to the controlled committee which transferred such
funds (the "transferor committee"). For purposes of this section
only, each contributor to the transferor committee shall be
deemed to have contributed a proportionate amount of the
transferred funds (the "imputed contribution amount") to the
transferee committee during the same election cycle as in which
such contributions were received by the transferee committee. The
imputed contribution amount for any election cycle shall be equal
to the same percentage of the total transferred funds as the
amount of such contributor's total contributions to the
transferor committee during the election cycle is a percentage of
the total contributions received by the transferor committee
during the election cycle.
.030 No city candidate or treasurer of a city candidate's
controlled committee shall accept transferred funds from a
transferor committee to the extent the imputed contribution
amount thereof which is attributable hereunder to any contributor
for any election cycle, when combined with all other
contributions received by the candidate or controlled committee
from the contributor during the election cycle, would exceed the
contribution limitation for such election cycle as set forth in
Section 1.03.050.
.040 The term "election cycle" as used in this section shall
mean the applicable period described in Section 1.09.060.
.050 The treasurer of each transferee committee shall file
with the City Clerk of the City of Anaheim a report disclosing
any transferred funds received by such transferee committee which
report shall be filed with the campaign statement required to be
filed by such transferee committee under the provisions of the
Political Reform Act which campaign statement covers the period
during which the transferred funds were received by the
transferee committee from the transferor committee. The report
shall include the name, address, occupation, and imputed
contribution amount as calculated pursuant to subsection .020 of
this section with regard to each contributor. The report shall
also include the date each such contribution was received by the
transferor committee and the date such imputed contribution
amount was received by the transferee committee. Prior to, or
concurrently with the acceptance of any transferred funds, it
shall be the duty of the treasurer of each transferee committee
to obtain the necessary information from the treasurer of the
transferor committee in order to comply with the requirements of
this section. It shall be the duty of the treasurer of each
transferee committee to keep records of all contributions and
transferred funds sufficient to prove compliance with the
requirements of this section. Such records shall be kept a
minimum of three years following the date of receipt of any
transferred funds and shall be provided to the City Attorney upon
request.
1.09.100 LOANS TO CITY CANDIDATES AND THEIR CONTROLLED
COMMITTEES.
.010 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.
.020 The proceeds of a loan made to a city candidate 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 candidate. The guarantors of such a
loan shall remain subject to the contribution limits of this
chapter.
.030 Extensions of credit (other than loans pursuant to
Section 1.09.100.020) for a period of more than thirty days are
subject to the contribution limitations of this chapter.
.040 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.
1.09.110 FUNDS, PROPERTY, GOODS OR SERVICES 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
W
travel expenses related to holding public office shall be
excluded from the provisions of this section.
1.09.120 REPORTING OF CUMULATIVE CONTRIBUTIONS.
The cumulative amount of contributions which exceed $100
during an election cycle shall be reported for each contributor
who made contributions during the current reporting period. Such
cumulative amounts shall be reported on Schedule A of Form 460,
or any successor form thereto, as prepared by the Fair Political
Practices Commission, if the candidate or controlled committee is
required to use such form, or shall be reported on a separate
schedule appended to the required campaign statement. The term
"election cycle" as used in this section shall mean the
applicable period described in Section 1.09.060 of this chapter.
1.09.130 ENFORCEMENT OF CHAPTER.
.010 No Criminal Penalties. Notwithstanding any other
provision of the Anaheim Municipal Code, including without
limitation the provisions of Section 1.01.370 of said Code, any
violation of any provision of this chapter shall be enforceable
solely as provided in this section.
.020 Civil Liability. Any person who violates or otherwise
fails to comply with any provision or requirement of this chapter
shall be liable to the City of Anaheim in a sum not to exceed the
following amount for each such violation:
.0201 For the making or accepting of any
contribution in excess of the applicable contribution limits
specified in this chapter, a sum equal to three (3) times the
amount by which the contribution exceeds the applicable
contribution limit, or the sum of twenty-five hundred dollars
($2,500), whichever is greater, for each violation.
.0202 For any other violation of this chapter, the
sum of five hundred dollars ($500) for each violation.
.030 Debt Owing to City. Any amount due from any person
pursuant to subsection .020 above shall be a debt due and owing
upon demand to the General Fund of the City of Anaheim.
.040 Civil Action to Collect Debt and Obtain Other Relief.
The City Attorney of the City of Anaheim may file and prosecute a
civil action in municipal or superior court, to recover any
amount(s) due and owing to the City of Anaheim by any person
pursuant to this section, or to enjoin any violation or otherwise
compel compliance with the requirements of this chapter. In the
event of any civil action within the jurisdiction amount of the
10
small claims court, the City Council may designate the person to
bring such action.
.050 Limitation of Actions. No civil action shall be
brought under the provisions of this section unless said action
is filed within two (2) years following the date of such
violation.
.060 Reliance Upon Advice. The City Attorney shall have the
authority to make interpretations of the provisions of this
chapter. Good faith reliance upon the written advice provided to
any person by the City Attorney concerning any provision of this
chapter shall be a complete defense to any civil action which
otherwise could be maintained under this chapter.
.070 Remedial Measures. If the City Attorney determines or
believes that any person (the "target party") has violated any
provision of this chapter, the City Attorney may, at his or her
sole discretion, advise the target party of remedial measures
which may be taken by the target party to avoid possible civil
action (the "Remedial Measures"). Such Remedial Measures may,
but need not necessarily, include the payment of a civil fine to
the City. Nothing contained herein shall be deemed to require
the City Attorney to offer Remedial Measures to any target party.
In the event the target party is offered and timely performs such
Remedial Measures to the satisfaction of the City Attorney, the
City Attorney shall advise the target party (and any person who,
in writing, informed or complained to the City Attorney
concerning any such violation), in writing, that the alleged
violation has been resolved (the "Letter of Resolution") and, in
such event, no civil action shall thereafter be filed or
maintained relating to such alleged violation of this chapter.
.080 City Attorney Designee. The term "City Attorney" as
used in this chapter shall include any person designated by the
City Attorney or the City Council to act on his or her behalf due
to a conflict of interest or for any other reason.
1.09.140 APPLICABILITY OF OTHER LAWS.
Nothing in this chapter shall
applicable provisions of any other
jurisdiction or be interpreted in
or conflict with the power of the
legal business and proceedings of
703 of the Anaheim City Charter.
1.09.150 SEVERABILITY.
exempt any person from
laws of this state or
a manner which would restrict
City Council to control all
the City pursuant to Section
If any provision of this chapter, or the application of any
such provision to any person or circumstances, shall be held
11
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.
1.09.160 INTERPRETATION OF CHAPTER.
This chapter should be liberally construed to accomplish its
purpose."
SECTION 3.
The City Council of the City of Anaheim hereby declares that
should any section, subsection, paragraph, sentence, phrase or
word of this ordinance, adding new Chapter 1.09 to Title 1 of the
Anaheim Municipal Code, be declared for any reason to be invalid
or unenforceable, it is the express intent of the City Council
that it would have adopted all other portions of this ordinance
independent of the elimination herefrom of any such portion as
may be declared invalid.
THE FOREGOING ORDINANCE is approved and adopted by the City
Council of the City of Anaheim this 19th day of October, 1999.
�04'4�� "/
MA OR OF CITY 0 ANAHEIM
ATTEST:
CITY CLERK OF THE CITY OF ANAHEIM
32484.1
12
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Ordinance No. 5704 was introduced at a regular meeting of the City Council of the City of
Anaheim, held on the 5th day of October, 1999, and that the same was duly passed and adopted
at a regular meeting of said City Council held on the 19th day of October, 1999, by the following
vote of the members thereof:
AYES: MAYOR/COUNCIL MEMBERS: Kring, Tait, McCracken
NOES: MAYOR/COUNCIL MEMBERS: None
ABSTAINED: MAYOR/COUNCIL MEMBERS: Feldhaus, Daly
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Ordinance No. 5704
on the 19th day of October, 1999.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of
Anaheim this 19th day of October, 1999.
CITY CLERK 6F THE CITY OF ANAHEIM
(SEAL)
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
is the original of Ordinance No. 5704 and was published once in the North County News on the
28th of October, 1999.
Cl22A,U- oo'j"��
CLERK6F THE CITY OF ANAHEIM