Loading...
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 That Chapter 1.09 of Title 1 of the Anaheim Municipal Code be, and the same is hereby, repealed in its entirety SECTION 2.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