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5360ri ORDINANCE NO. 5360 AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING ORDINANCE NO. 5350 RELATING TO CAMPAIGN REFORM, NUNC PRO TUNC WHEREAS, the City Council of the City of Anaheim adopted Ordinance No. 5350 on February 2, 1993, adding new regulations to the Anaheim Municipal Code relating to campaign reform and purporting to codify said regulations as a new Chapter 1.03 to said Code; and WHEREAS, the City Council had theretofore adopted Ordinance No. 5213 adding regulations to the Code relating to franchise applications and codified said regulations as Chapter 1.03 of said Code; and WHEREAS, the later purported codification of the provisions of Ordinance No. 5350 as Chapter 1.03 of said Code was through inadvertence and clerical error; and WHEREAS, the City Council desires to correct said error contained in Ordinance No. 5350, nunc pro nunc. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS FOLLOWS: SECTION 1. That Chapter 1.03 of the Anaheim Municipal Code as adopted by Ordinance No. 5350 be, and the same is hereby, repealed and readopted, nunc pro tunc, as new Chapter 1.09 of the Anaheim Municipal Code, to read as follows: "CHAPTER 1.09 CAMPAIGN REFORM 1.09.010 NAME This Chapter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 h 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, as the same may be, from time to time, amended. 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. .020 Elective City Officer "Elective city officer" means any person who is a member of the City Council or Mayor of the City of Anaheim, whether appointed or elected. .030 Person "Person" means any individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, nonprofit corporation, association, committee, political committee, political action committee, and any other organization, entity or group of persons acting in concert. 1.09.050 CONTRIBUTIONS LIMITATIONS .010 No person shall make, and no city candidate or treasurer of any controlled committee of any city candidate shall solicit or accept, any campaign contribution(s) which would cause the total amount contributed by such person to such candidate, including contributions to any controlled committee of such candidate, to exceed $1,000 with respect to any city election in which such candidate is a city candidate. .020 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 1.09.070 of this Chapter. L .030 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 1.09.050.010 during the applicable time period as set forth in either Section 1.09.050.010 or Section 1.09.070 of this Chapter. .040 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 PRIOR CAMPAIGN DEBTS. .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. .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 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. The city candidate and campaign treasurer shall keep 3 L records sufficient to show compliance with the provisions of this section. 1.09.060 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 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: (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. (4) The entities are in a parent -subsidiary relationship. .030 An individual and any general partnership in which the individual is a general partner, or an individual and any corporation in which the individual owns a controlling interest (50% or more), shall be treated as one person. .040 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. .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. 4 k .060 Contributions by children under eighteen years of age shall be treated as contributions by their parent(s) or legal guardian(s) attributed proportionately to each such parent or guardian (one-half to each parent or guardian) unless only one parent has legal custody of such child in which event any such contributions shall be attributed solely to the custodial parent; provided, however, if the contribution is by a written instrument the drawer of which is the non-custodial parent, such contribution shall be attributed to such non-custodial parent. 1.09.070 RECALL ELECTION CYCLES 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: .010 The recall proponents fail to return signed petitions to the City Clerk within the time limits set forth in the California Elections Code. .020 All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act. .030 10 days after a recall election has been held. 1.09.080 PROHIBITION ON MULTIPLE CONTROLLED COMMITTEES A city candidate or an elective city officer shall have no more than one controlled committee for each elective city office for which such individual is a candidate and such controlled committee 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 controlled committee solely for the purpose of running for a state, federal, or other elective city office. For purposes of this Chapter, candidacy for the same city office at different city elections shall be deemed different elective city offices. 5 h 1.09.090 TRANSFERS OF FUNDS BETWEEN CONTROLLED COMMITTEES Nothing contained in this Chapter shall prohibit the transfer of campaign funds from a person's controlled committee for one elective office to the same person's controlled committee for a different elective office. 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 Every loan to a city candidate or the city candidate's controlled committee 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. .030 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. .040 Extensions of credit (other than loans pursuant to Section 1.09.100.030) for a period of more than 30 days are subject to the contribution limitations of this Chapter. .050 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 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 M I shall be excluded from the provisions of this section. 1.09.120 DISCLOSURE OF NAME, OCCUPATION AND EMPLOYER OF CONTRIBUTOR No campaign contribution shall be deposited into a campaign bank account of a city candidate or elective city officer, or the controlled committee of any city candidate or elective city officer, unless the name, address, occupation and employer of the contributor (or, if such contributor is self employed, the name of the business) is on file in the records of the recipient of the contribution. 1.09.130 OPERATIVE DATE OF CHAPTER The provisions of this Chapter shall become operative on July 1, 1993 (the "operative date"). Any campaign contributions received prior to the operative date shall not be subject to the provisions of this Chapter and shall not be included with any contributions made or received on or after the operative date for purposes of calculating any applicable contribution limitation set forth in this Chapter. 1.09.140 CRIMINAL MISDEMEANOR ACTIONS 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. 1.09.150 APPLICABILITY OF OTHER LAWS Nothing in this Chapter shall exempt any person from applicable provisions of any other laws of this state or jurisdiction. 1.09.160 SEVERABILITY If any provision of this Chapter, or the application of any such provision to any person or circumstances, 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. 7 6 1.09.170 INTERPRETATION OF CHAPTER This Chapter should be liberally construed to accomplish its purpose." THE FOREGOING ORDINANCE is approved and adopted by the City Council of the City of Anaheim this 6th day of April , 1993. MAY OF THE MY OF EIM ATTEST: CITY CLERK OF THE CITY OF ANAHEIM JLW:lm 477 I:\DOCS\ORDRES\31CAMP#A.012 8 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Ordinance No. 5360 was introduced at a regular meeting of the City Council of the City of Anaheim, held on the 23rd day of March, 1993, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 6th day of April, 1993, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Ordinance No. 5360 on the 7th day of April, 1993. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 7th day of April, 1993. ot --2f CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. 30HL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Ordinance No. 5360 and was published once in the Anaheim Bulletin on the 15th day of April, 1993. CITY CLERK OF THE CITY OF ANAHEIM