HomeMy WebLinkAboutOrdinance 3452 - Amending Campaign Contribution Limitation al �8 &wir d17'L�
Council/Agency Meeting Held:
Deferred/Continued to:
0-Approved ❑ Conditionally Apprc -nrl ❑ Denied _
Oy Clerk's Signature
Council Meeting Date: January 18, 2000 Depa ment ID Number: 99-24
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CITY OF HUNTINGTON BEACH
REQUEST FOR ACTION =µ
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMEBERS - --�"
0
SUBMITTED BY: eGA'IL HUTTON, City Attorney
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PREPARED BY: ' GAIL HUTTON, City Attorne 5 Fl rya
SUBJECT: Adopt Ordinance Amending Limitation on Campaign Contribu i ns:>
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: Whether to revise the City Campaign Reform law to conform with
current administrative practice, allowing for the pooling of contributions.
Funding Source: No funds are required.
Recommended Action: Introduce and adopt Ordinance No. 3115Z. amending the
campaign contribution limitation of the City of Huntington Beach Campaign Reform Law.
Alternative Action(s): Do not introduce the Ordinance.
Analysis:: In 1995, the City Council requested a written report from the City
Attorney's office regarding whether the Council should amend the current Huntington Beach
Campaign Reform Law to more closely resemble the Orange County Campaign Reform Law
and to address any infirmities in the law that were identified in the litigation entitled Righeimer
v. City of Huntington Beach. In February of 1996, that report was provided to the Council.
(Attachment No. 2.) It recommended an amendment to the Campaign Reform Law to codify
an existing administrative interpretation, which allows for joint, independent expenditures to
publish advertisements that exceeded the contribution limit, provided that no individual
exceeded the contribution limit. However, the Council did not amend the ordinance at that
time.
Since then, we have been notified that the City of Irvine has been sued on similar grounds as
were raised in the Righeimer case. Although the City Attorney believes that the City has
administratively cured any potential infirmity with the City's ordinance, it is still recommended
that Council actually amend the law to reflect this administrative interpretation. Consequently
it is recommended that the Council adopt Ordinance No. 3 452 , which is attached as
Attachment No. 1. This ordinance will provide that the City limits contributions by individuals
and committees to under$300, but that individuals and committees may pool expenditures.
REQUEST FOR ACTION
MEETING DATE: January 18, 2000 DEPARTMENT ID NUMBER: 99-24
Environmental Status: N/A
Attachment(s):
City Clerk's
. . • NumberDescription
1 Ordinance No. 5z
2 February 1996 report
RCA Author: SFF
99-24-Campaign Ordinance -2- 01/05/00 4:57 PM
5
ORDINANCE NO. 3 4 5 2
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING SECTION 2.07.050(b) OF THE
HUNTINGTON BEACH MUNICIPAL CODE
REGARDING THE CAMPAIGN CONTRIBUTION L'IMITATON OF THE
CITY OF HUNTINGTON BEACH CAMPAIGN REFORM LAW
WHEREAS, the City Council adopted in 1994 the "City of Huntington Beach Campaign Reform
Law"; and
The purpose of the Campaign Reform Law is to ensure that the financial strength of
certain individuals or organizations would not permit them to exercise a disproportionate or
controlling influence on the election of City candidates. To achieve such purpose, the Campaign
Reform Law was designed to reduce the influence of large contributions,to ensure that multiple
contributions in excess of the contribution limits do not originate from the same source of funds,
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; and
The City was sued in the case entitled Righeimer, et al. v. City of Huntington Beach,
U.S.D.C., Central District of California, Case No. SACV94-676-AH5(EEx), in which the
Plaintiffs alleged that Section 2.07.050(b) of the Campaign Reform Law prohibited them from
making joint independent expenditures to publish advertisements to support or oppose candidates
for election; and
The City has interpreted Section 2107.050(b) to only limit contributions to persons and
committees, and not joint independent expenditures; and
The City Council is desirous of codifying this interpretation to avoid further litigation;
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
ordain as follows:
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SF-2000 Ordinance:Campaign Contributions
SECTION 1. That Section 2107.050(b) of the Huntington Beach Municipal Code is
hereby amended to read as follows:
"(b) Any person or committee, during the twelve (12)months preceding a City
election, that makes independent expenditures or incurs obligations
supporting or opposing city candidate(s) shall not accept any
contribution(s) from any person in excess of the amounts set forth in
Section 2.07.070 of this Chapter. This subsection does not prohibit
individuals from making joint independent expenditures for purchasing
advertisements and engaging in similar expressive activity, provided they
pay the vendor directly and separately."
SECTION 2. This codification of an existing administrative interpretation of the
Campaign Reform Law should not be interpreted as excusing compliance with the California
Political Reform Act, and particularly, any requirements that persons acting in concert to make
joint independent expenditures to vendors are subject to the Political Reform Act's reporting
requirements.
2
SF-2000 Ordinance:Campaign Contributions
SECTION 3. This ordinance shall become effective thirty days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 7th day of February , 2000.
Mayor
ATTEST: APPROVED AS TO FORM:
41
City Clerk City Attorney
REVIEWED AND APPROVED: INITIATED AND APPROVED:
Cit dministrator City Attorney
3
SF-2000 Ordinance:Campaign Contributions
Ord. No. 3452
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIB BROCKWAY, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing ordinance was read to said City Council
at a regular meeting thereof held on the 18th day of January, 2000, and was again read
to said City Council at a re ular meeting thereof held on the 7th day of
February, 2000, and was passed and adopted by the affirmative vote of at least a
majority of all the members of said City Council.
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff
NOES: None
ABSENT: Bauer
ABSTAIN: None
I,Connie Brockway CITY CLERK of the City of
Huntington Beach and ex-officio Clerk of the City Council,
do hereby certify that a synopsis of this ordinance has been
published in the Independent on •
,19
In accordance with the City Charter of said City City Clerk and ex-officio Cletv
Connie Brockway City Clerk of the City Council of the City
Deputy City Clerk of Huntington Beach, California
G/ordinanc/ordbkpg
2/8/00
LEGISLATIVE DRAFT
CHAPTER 2.07
CAMPAIGN REFORM
Sections:
2.07.010 Name
2.07.020 Purpose
2.07.030 Relation to Political Reform Act of 1974
2.07.040 Definitions
2.07.050 Campaign contribution limitations
2.07.060 Aggregation of contributions
2.07.070 Election cycle
2.07.080 Prohibition on multiple campaign committees
2.07.090 Prohibition on transfers
2.07.100 Loans to city candidates and elective city officers and their controlled committee
2.07.110 Money received by officials treated as contributions
2.07.120 Solicitation of contributions from persons who have city business dealings
2.07.130 Transmittal of campaign contributions in city office buildings
2.07.140 Disclosure of occupation and employer
2.07.150 Reporting of cumulative contributions
2.07.160 Reporting of late contributions
2.07.170 Criminal misdemeanor actions
2.07.180 Civil actions
2.07.190 Injunctive relief
2.07.200 Cost of litigation
2.07.210 Statute of limitations
2.07.220 Applicability of other laws
2.07.230 Severability
2.07.240 Interpretation of chapter
2,07.250 Amendments and additional requirements
2.07.260 Effective date
2.07.010 Name. This Chapter shall be known and may be cited as the "City of Huntington Beach
Campaign Reform Law." (3220-1/94)
2.07.020 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 multiple contributions in excess of the
contribution limits do not originate from the same source of funds, 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.
(3220-1/94)
2.07.030 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.
(3220-1/94)
2.07.040 Definitions. (3220-1/94)
(a) "City Candidate" means any person who is a candidate for the city Council, City Clerk,
City Treasurer, or City Attorney of the City of Huntington Beach. (3220-1/94)
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Chapter 2.07.050(b)
(b) "Elective City Officer" means any person who is Mayor, a member of the City Council, City
Clerk, City Treasurer, or City Attorney of the City of Huntington Beach, whether appointed
or elected. (3220-1/94)
(c) "Non-elected City Official" means any person who is a member of a City of Huntington Beach
board, committee, or commission, and who is not elected to that position. (3220-1/94)
(d) "Person" means an individual, proprietorship, firm, partnership,joint venture, syndicate,
business trust, company, corporation, association, committee, and any other organization or
group of persons acting in concert. (3220-1/94)
2.07.050 Campaign contribution limitations. (3220-1/94)
(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: (3220-1/94)
(1) Three hundred dollars ($300.00) in a City Council, City Clerk, City Treasurer, or
City Attorney election cycle; or (3220-1/94)
(2) Two hundred dollars ($200.00) in a recall election cycle. (3220-1/94)
(b) Any person or committee, during the twelve(12) months preceding a City election, that
makes independent expenditures or incurs obligations supporting or opposing city
candidate(s) shall not accept any contribution(s)from any person in excess of the amounts set
forth in Section 2.07.050(a) during the applicable time periods as set forth in Section 2.07.070
of this Chapter. This subsection does not prohibit individuals from making
joint independent expenditures for purchasing advertisements and engaging
in similar expressive activity, provided they pay the vendor directly and
separately.
(c) The provision of this section shall not apply to a candidate's contribution of his or her personal
funds to his or her own campaign committee. (3220-1/94)
2.07.060 Aggregation of contributions. For purposes of the limitations in this Chapter, the
following shall apply: (3220-1/94)
(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 2.07.050 within the applicable time
periods set forth in Section 2.07.070 of this Chapter. (3220-1/94)
(b) Two (2) or more entities shall be treated as one person when any of the following
circumstances apply: (3220-1/94)
(1) The entities share the majority of members of their boards of directors. (3220-1/94)
(2) The entities share two (2) or more officers. (3220-1/94)
(3) The entities are owned or controlled by the same majority shareholder or shareholders.
(3220-1/94)
(4) The entities are in a parent-subsidiary relationship. (3220-1/94)
2
G:S F:L.egdraft:Campai gn
Chapter 2.07.050(b)
(c) An individual and an., eneral or limited.partnership in which i. _ individual has a ten(10%)
percent or more share, or an individual and any corporation in which the individual owns a
controlling interest (fifty (50%) percent or more,) shall be treated as one person. (3220-1/94)
(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. (3220-1/94)
(e) Contributions by children under eighteen (18)years of age shall be treated as contributions by
their parents. (3220-1/94)
2.07.070 Election cycle. (3220-1/94)
(a) City Council, City Clerk, City Treasurer, and City Attorney Elections. For purposes of the
limits of this Chapter, as applied to elections for City Council, City Clerk, City Treasurer, and
City Attorney, the final date for contributions shall be December 31 of the year in which the
election for the open position was held. Contributions made after the final date shall be
deemed contributions for the next election cycle. (3220-1/94)
(b) Examples of the Election Cycle. January 1, 1987, to December 31, 1990, was the "Election
Cycle" for the 1990 election. Pursuant to Section 2.07.070 Election Cycle, the four(4)year
period for purposes of applying the interpretation of the Campaign Ordinance Election Cycle
2.07.070(a) shall be as follows: (3220-1/94)
Example 1. (3220-1/94)
1992 Election Cycle-Three Council Seats and City Clerk and City Treasurer: January 1,
1989 -December 31, 1992.
(1) The "last election" was November 1988.
(2) December 31, 1988, was the last or final date for receipt of campaign contributions for the
1988 election.
(3) January 1, 1989, began the election cycle for the 1992 election.
(4) December 31, 1992, ended the election cycle for the 1992 election.
Example 2. (3220-1194)
1994 Election Cycle -Four (4) Council Seats and City Attorney: January 1, 1991 -December
31, 1994.
(1) The "last election" was November 1990.
(2) December 31, 1990, was the last or final date for receipt of campaign contributions for the
1990 election.
(3) January 1, 1991, began the election cycle for the 1994 election.
(4) December 31, 1994, ends the election cycle for the 1994 election.
Example 3. (3220-1194)
1996 Election Cycle - Three (3) Council Seats and City Clerk and City Treasurer: January 1,
1993 -December 31, 1996.
(1) The "last election" was November 1992.
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Chapter 2.07.050(b)
(2) December 31, 15_ , was the last or final date for receipt o. _ anpaign contributions for the
1992 election.
(3) January 1, 1993, began the election cycle for the 1996 election.
(4) December 31, 1996, ends the election cycle for the 1996 election.
(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:
(3220-1/94)
(1) The recall proponents fail to return signed petitions to the City Clerk within the time limits
set forth in the California Elections Code. (3220-1/94)
(2) All committees formed in support of the recall have been terminated pursuant to the
provisions of the Political Reform Act. (3220-1/94)
(3) Ten(10) days after a recall election has been held. (3220-1/94)
This section shall be interpreted to allow the maximum amount which can be contributed by any
person to any candidate or anyone who has been a candidate, during a four(4)year period, to be
the maximum amount specified in Section 2.07.050. (3220-1/94)
2.07.080 Prohibition on multiple campaign 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. This section also does not prevent an elective City officer from establishing another
campaign committee solely for the purpose of opposing his or her own recall. (3220-1/94)
2.07.090 Prohibition on transfers. (3220-1/94)
(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 City officer(including said elective City officer.) (3220-1/94)
(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, nor to any committee
supporting or opposing a recall of an elective City officer. 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. (3220-1/94)
The provision of this section shall not apply to the candidate or elected officer who forms a new
committee for purposes of reelection to the same office and, to close out the prior committee,
transfers the money or debt from the prior committee to the new committee and, in so doing,
complies with all regulations of the political Reform Act of 1974, and as amended. (3220-1/94)
2.07.100 Loans to city candidates and elective city officers and their controlled committee. (3220-
1/94)
(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. (3220-1/94)
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G:SF:LegdraR:Campaign
Chapter 2.07.050(b)
(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. (3220-1/94)
(c) The proceeds of a loan made to a City candidate or elective 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. (3220-1/94)
(d) Extensions of credit (other than loans pursuant to Section 2.07.100(c) for a period of more
than thirty(30) days are subject to the contribution limitations of this Chapter. (3220-1/94)
(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.
(3220-1/94)
(f) The monetary limitations or provisions of this section shall not apply to a candidate's loan of
his or her personal funds to his or her own campaign committee. (3220-1/94)
(g) 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, nor to any committee
supporting or opposing a recall of an elective City officer. 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. (3220-1/94)
2.07.110 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. (3220-1/94)
2.07.120 Solicitation of contributions from persons who have city business dealings. No non-
elected City official or City employee shall solicit, direct or receive a campaign 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 twelve (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.
(3220-1/94)
2.07.130 Transmittal of campaign contributions in city office buildings. (3220-1/94)
(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.
(3220-1/94)
(b) For purposes of this section: (3220-1/94)
(1) "Personally deliver" means delivery of a contribution in person or causing a contribution to
be delivered in person by an agent or intermediary, other than the United States mail.
(3220-1/94)
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G:SF:Legdraft:Campaign
Chapter 2.07.050(b)
(2) "Receive" include.. .ne precept of a campaign contribution 6-Livered in person. (3220-1/94)
2.07.140 Disclosure of occupation and employer. 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. This information is to be reported on each Campaign Statement
required to be filed by the Political Reform Act. (3220-1/94)
2.07.150 Reporting of cumulative contributions. A cumulative contribution for each contributor
shall be based on an election cycle and shall be reported on each Campaign Statement required to
be filed by the Political Reform Act. (3220-1/94)
2.07.160 Reporting of late contributions. Notwithstanding the limit contained in California
Government Code Section 320, late expenditures or contributions in excess of two-hundred
dollars($200.00) shall be reported to the City Clerk within twenty-four(24) hours of the
contribution or expenditure. (3220-1/94)
2.07.170 Criminal misdemeanor actions. (3220-1/94)
(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. (3220-1/94)
(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(4)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. (3220-1/94)
2.07.180 Civil actions. (3220-1/94)
(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 (3) times the amount the person failed to report
properly or unlawfully contributed, expended, gave or received, or$5,000 per violation,
whichever is greater. (3220-1/94)
(b) If two (2) or more persons are responsible for any violation, they shall be jointly and severally
liable. (3220-1/94)
(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 thirty(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 sixty(60) days in order to determine the merits of the complaint. At the end of
sixty(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 within thirty
(30) days thereafter, no other action may be brought unless the action brought by the City
Attorney is dismissed without prejudice. (3220-1/94)
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G:S F:Legdraft:Campai gn
Chapter 2.07.050(b)
(d) In determining the an.-Lint of liability, the court may take into iwcount the seriousness of the
violation and the degree of culpability of the defendant. If a judgment is entered against the
defendant or defendants in an action, the plaintiff shall receive fifty percent (50%) of the
amount recovered. The remaining fifty percent (50%) 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. (3220-1/94)
(e) The term "City Attorney" as used in this section and Section 2.07.190 shall mean and refer to
the City Attorney of the City of Huntington Beach or such other legal counsel as appointed by
the City Attorney or City Council. (3220-1/94)
2.07.190 Injunctive 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. (3220-1/94) .
2.07.200 Cost of litigation. The court may award to plaintiff, other than a public agency, who
prevails in any action authorized by this Chapter, his or her costs of litigation. (3220-1/94)
2.07.210 Statute of limitations. Civil actions and/or criminal prosecutions for violations of any
provision of this Chapter shall be commenced within four(4)years after the date on which the
violation occurred. (3220-1/94)
2.07.220 Applicability of other laws. Nothing in this Chapter shall exempt any person from
applicable provisions of any other laws of this state or jurisdiction. (3220-1/94)
2.07.230 Severability. If any provisions 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. (3220-1/94)
2.07.240 Interpretation of chapter. This Chapter should be liberally construed to accomplish its
purposes. (3220-1/94)
2.07.250 Amendments and additional requirements. The City Council shall review the
contribution limitations contained in this Chapter in January of every fourth(4th)year
commencing in 1998 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. (3220-1/94)
2.07.260 Effective date. The provision of this Chapter shall become effective upon adoption,
pursuant to Huntington Beach City Charter Section 500(e)(1). (3220-1/94)
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G:S F:Legdraft:C ampa i gn
Chapter 2.07.050(b)
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CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
NUNnNGTON BEACH
TO: Honorable Dave Sullivan, Mayor, and
Members of the City Council
FROM: Gail Hutton, City Attorney
DATE: February 2, 1996
SUBJECT: Limitation on Campaign Contribution
The City Council has requested a written report from the City Attorney's Office regarding
amending the Campaign Reform Law to more closely resemble the Orange County Ordinance,
and address any infirmities in the Law that were identified in the Righeimer, et al. v City of
Huntington Beach litigation.
In Righeimer, the Plaintiffs alleged that Section 2.07.050(b)of the Campaign Reform Law
prohibited them from making joint, independent expenditures to publish advertisements to support
or approve candidates for election where they paid for the ads by separate checks. (It should be
explained that this provision of the Huntington Beach law actually does not differ materially
from the Orange County law. A copy of Orange County law is attached for comparison
purposes.)
However,the City never interpreted Section 2.02.050(b)to limit joint independent
expenditures. Rather, the City only intended the Section to limit contributions to persons and
committees to under$300, but not expenditures. In fact, this interpretation probably was
constitutionally mandated.
Under the United States Supreme Court's rulings in Buckley v Valeo, CARC v
Berkeley, and FEC v. National Conservative PAC, campaign laws may not constitutionally limit
the amount any person may spend on supporting or opposing a candidate, as this would limit the
amount of his speech. However, campaign laws may restrict the amount any person may
contribute to a committee, because while the committee may engage in free speech, the act of
contributing to the committee does not involve speech. It then follows that if a single individual
could pay more than$300 to a newspaper for placement of an advertisement,two people may
jointly, but independently pay the newspaper directly for an advertisement, even if each
expenditure exceeds$300. However, the law may still prohibit the same two individuals from
contributing to a committee, which in turn, pays the newspaper for the advertisement.
1
SF:s:G:Campaign
Moreover,this interpretation of the City's campaign law does not sacrifice any of the
disclosure obligations imposed under state law. The California Political Reform Act distinguishes
between"recipient" committees(i.e.,those combinations of persons who have become a
committee by reason of their receiving contributions of$1,000 or more in a calendar year(Govt.
Code § 82013(a))--and"independent expenditure" committees(i.e.,those becoming committees
because they make independent expenditures totaling$1,000 or more per year(§ 82013(b)).
When individuals jointly pay for an ad worth more than$1,000,they became a"committee"under
section 82013, even if they made their payments directly and separately to the newspaper.
Consequently,they would have to file the appropriate FPPC disclosure reports and late
independent expenditure notifications. The public would thus be able to discover the true source
of the various expenditures that were being made. Moreover, many newspapers(and certainly
media ads)will require that the source of payment for the advertisements be included in the ad;
Thus, if the individuals continue to make separate payments to the newspaper,the ad may well
have to include each of their names as the source of payment.
Finally,this interpretation of the City's Campaign Law does not.sacrifice much in the way
of the contribution limits, either. The principal problems with independent expenditures that have
developed in the past were the result of PACs and other organizations donating large sums of
moneys to third-party committees that then pooled those funds in making"independent
expenditures"that often had great effects on the.outcome of the local election. The pooling of
such funds through an"independent expenditure" committee would still be prohibited.
Consequently, several individuals could not pool their resources and advertise under an assumed
name, like the"Good Government League."
During the course of the Righeimenr litigation, the City adopted this very interpretation of
its Campaign Law. It is recommended that the City codify this interpretation into law, so as to
avoid further litigation. The attached ordinance would accomplish this result.
fF,r Gail Hutton
City Attorney
c: Michael Uberuaga, City Administrator
Ray Silver, Assistant City Administrator
2
SF:s:G:Campaign
I
11
7
ORDINANCE NO. 3862
' AN ORDINANCE OF THE COUNTY OF ORANGE,
-CALIFORNIA, ADOPTED PURSUANT TO THE
THE PROVISIONS OF SECTION 3750 OF THE
CALIFORNIA ELECTIONS CODE, LIMITING
6 CAMPAIGN CONTRIBUTIONS TO COUNTY ELECTED
OFFICIALS AND OTHERWISE REGULATING THE
- i CONDUCT OF CAMPAIGNS FOR COUNTY OFFICES
8 ; The People of the County of Orange, California, do ordain as
follows:
9 SECTION 1. NAME
10 This division shall be known and may be cited as the .~Orange
111 County Campaign Reform Ordinance No. . 3862. "
I
121 SECTION 2. PURPOSE
131 The purpose of this Ordinance is to ensure that the financial
strength of certain individuals or organizations does not permit them
141 to exercise a disproportionate or controlling influence on the electio
1 of Orange County candidates. To achieve this purpose this Ordinance i
»� designed to reduce the influence of large contributions, to ensure tha
0 151 individuals and interest groups continue to have a fair and equal
VVW 16I opportunity to participate in electing county candidates, and to
-12 I maintain public trust in governmental institutions and the electoral
° 3 process.
° ° l' f
18i SECTION 3. RELATION TO POLITICAL REFORM ACT OF 1974
This Division is intended to supplement the Political Reform Act
19I of 1974. Unless the term is specifically defined in this Ordinance or
20Ithe 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 o
21 the California Government Code, in which the Political Reform Act of
1974 is codified, as the same may be, from time to time, amended.
77i SECTION 4. DEFINITIONS
231 (a) County Candidate
24
"County Candidate" means any person who is a candidate for super-
^ 2S visor, sheriff-coroner, district attorney, assessor, treasurer-tax
collector, county clerk, recorder, auditor, public administrator, or
26 superintendent of schools.
N
27 (b) Elective County Officer
® 28 ~Elective County Officer" means any person who is a supervisor,
sheriff-coroner, district attorney, assessor, treasurer-tax collector,
I
11 county clerk, recorder, auditor, public
administrator, or superinten-
dent of schools, whether appointed or elected.
3 !.1 SECTION 5. CONTRIBUTION LIMITATIONS
4 :i (a) No person shall make to any candidate for county elective
office or the controlled committee of such a candidate, and no such
sl candidate or committee shall accept from any such person, a contribu-
tion or contributions totaling more than $1,000 for each of the follow
6 ; ing elections for which the person is a candidate: a primary election
or a general (runoff) election.
' (b) The contribution limitations set forth in Section 5(a) shall
8 ; also apply to any .committee which collects contributions for the
purpose of making expenditures in support of or opposition to the
9 recall of the elective county officer, and to contributions received t
the elective county officer during the time period set forth in Sectic
10 ► 7(b) of this Ordinance.
11i (c) Any person or. committee. that spends or incurs more than 25%
of its independent expenditures during the 12 months preceding a count
121 election on independent expenditures supporting or opposing county
13 , candidate(s) shall not accept any contributions) from any person in
excess of $1,000 during the time periods set forth in Section 7. of thi
Ordinance.
14J . �
(d) The provisions of this section shall not apply to a candi-
date's contribution of his or her personal funds to his or her own
° 30 iS campaign committee, but shall apply to contributions from a spouse.
WowVV
i
16 ; SECTION 6. AGGREGATION OF CONTRIBUTIONS
OZ , t
o0 1 i
For purposes of the limitations in this Ordinance, the following
18 ! shall apply:
191 (a) All contributions made by a sponsored committee to a county
candidate or to an elective county officer (or to a committee con-
20itrolled by such candidate or officer) shall be combined with those
I contributions made by the sponsor(s) of the committee, and the combine
Z1E amount shall not exceed $1,000 within the time periods set forth in
Section 7 of this Ordinance.
22
(b) Two or more entities shall be treated as one person when any
23 ! of the following circumstances apply:
24 ; (1) The entities share the majority of members of their
boards of directors.
25I (2) The entities share two or more officers.
N 26
N (3) The entities are owned or controlled by the same majori
27 ty shareholder or shareholders.
® 28 (4) The entities are in a parent-subsidiary relationship.
1 ,I
(c) An individual and any general or limited partnership in whici
the individual has a 10% or more share, or an individual and any
corporation in which the individual owns a controlling interest ( 50% o:
3 .� more) , shall be treated as one person.
4 :1 (d) No committee which supports or opposes a candidate for count
office 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 candidate. No such committee shall act in concert
6 ; with, or solicit or make contributions on behalf of, any other commit-
tee. 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 .
8 ,
(e) Contributions by a husband and wife, except as set forth in
91 Section 5(d) , shall be aggregated unless a contribution comes exclu-
i sively from the separate property of one spouse.
10
( f) Contributions by children under eighteen years of age shall
lli be treated as contributions by their parents.
12 SECTION 7. ELECTION CYCLES
13 (a) Primary and General (Runoff) Elections
14 , For purposes of the limits of this Ordinance, contributions made
at any time between the final date for contributions to the last
� Z= 15 primary or general (runoff) election (whichever occurred last) for that
° 30 same elective county office and June 30 of the present election year,
= " W 16 ; shall be considered primary election contributions. If there is a
Z general (runoff) election, then contributions made from July 1 through
'0z 1 December 31 of the election year shall be considered general (runoff)
election contributions.
18
(b) Recalls
191
For purposes of the limits of this Ordinance, contributions made
20 ; at any time after a committee has been formed, pursuant to the provi-
sions of the Political Reform Act, in support of a recall election, or
21 after the Registrar has approved a recall petition for circulation and
gathering of signatures, whichever occurs first, shall be considered
_17 ; contributions during a recall election cycle. A recall election cycle
shall end whenever any of the following occur:
,3
(1) The recall proponents fail to return signed petitions tc
241 the Registrar within the time limits set forth in the California
Elections Code.
25
r (2) All Committees formed in support of the recall have been
26 terminated pursuant to the provisions of the Political Reform Act.
N
27 (3) 10 days after a recall election has been held.
U.
® 28
t '�
i SECTION 8. PROHIBITION ON MULTIPLE CAMPAIGN COMMITTEES
` ! A county candidate or an elective county officer shall have no
more than one campaign committee which shall have only one bank
3j account out of which all qualified campaign and office holder expenseE
41 related to that county office shall be made.' This section does not
i prevent a county candidate or an elective county officer from estab-
51 lishing another campaign committee solely for the purpose of running
for a state, federal, or local office that is not identified in Sectic
61 4 of this Ordinance.
SECTION 9. PROHIBITION ON TRANSFERS
8 (a) No funds may be .transferred into any county candidate or
i elective county officer's campaign committee from any other campaign
91 committee controlled by a candidate.
_ I
10 (b) No county candidate and no committee controlled by a county
{ candidate or elective county officer shall make any contribution to an
{ other county candidate running for office or to any committee support-
ing or opposing a county candidate for office. This section shall not
121 prohibit a county candidate from making a contribution from his or her
1 own personal funds to his or her own candidacy or to the candidacy of
13i any other candidate for elective county office.
1t ; SECTION 10. LOANS TO COUNTY CANDIDATES AND ELECTIVE COUNTY OFFICERS
! AND THEIR CONTROLLED COMMITTEES
W_
° Jo tS (a) A loan shall be considered a contribution from the maker and
VUW 16 ; the guarantor of the loan and shall be subject to the contribution
;= z I limitations of this Ordinance.
� ° t' ' (b) Every loan to a county candidate or elective county officer
18 i
or their controlled committees shall -be by written agreement which
shall be filed with the campaign statement on which the loan is first
19 i reported.
20 (c) The proceeds of a loan made to a county candidate or electiv
! county officer by a commercial lending institution in the regular
21 ' course of business on the same terms available to members of the publi
shall not be subject to the contribution limitations of this Ordinance
211 if the loan is made directly to the county candidate or elective count
officer or his or her controlled committee. The guarantors of such a
23 ; loan shall remain subject to the contribution limits of this Ordinance
24 ! (d) Extensions of credit (other than loans pursuant to Section
25 ! 10(c) ) for a period of more than 30 days are subject to the contribu-
tion limitations of this Ordinance.
26I (e) This section shall apply only to loans and extensions of
N credit used or intended for use for campaign purposes or which are
27 otherwise connected with the holding of public office.
® 28
1i SECTION 11. MONEY RECEIVED BY OFFICIALS TREATED AS CONTRIBUTIONS
� I
1 Any funds, property, goods or services, other than government
funds, received by elective county officers which are used, or intende•
311 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
Ordinance. Reimbursement for reasonable travel expenses .related to
holding public office-.shall be excluded from the provisions of this
6section.
SECTION 12. SOLICITATION OF CONTRIBUTIONS FROM PERSONS WHO HAVE
COUNTY BUSINESS DEALINGS
S ► No non-elected county public official or county employee shall
9 solicit, direct or receive a contribution from any person, or his or
i her agent, who has a proceeding involving legislative or administrativE
101 action pending before the county public official or county employee or
I has had such a matter pending during the preceding 12 months. This
section does not apply to a non-elected county public official or
lli county employee who is a county candidate acting in furtherance. of his
121 own controlled committee.
i TRANSMITTAL OF CAMPAIGN CONTRIBUTIONS IN COUNTY OFFICE
l3i SECTION 13. .
BUILDINGS
14
(a) No person shall receive or personally deliver or attempt to
y� deliver a contribution in any office which the county owns or for whicr
o00 15 ; the county pays the majority of the rent.
� �V ►
"' 13 W 16 ;, (b) For purposes of this section:
07 !
° ° (1) "Personally deliver" means delivery of a contribution ir.
18 ; person or causing a contribution to be delivered in person by an
agent or intermediary, other than the United States Mail.
191 (2) "Receive" includes the receipt of a campaign contribu-
20 tion delivered in person.
L1 SECTION 14. DISCLOSURE OF OCCUPATION AND EMPLOYER
„ No campaign contribution shall be deposited into a campaign bank
account of a county candidate or elective county officer unless the
23f disclosure information required by the Political Reform Act, including
the name, address, occupation and employer of the contributor or, if
241 self employed, name of business, is on file in the records of the
recipient of the contribution.
BSI SECTION 15. CRIMINAL MISDEMEANOR ACTIONS
N 26 (a) Any person who willfully violates any provision of this
ry
40 Ordinance is guilty of a misdemeanor. Any person who willfully causeE
�� or solicits any other person to violate any provision of this Ordi-
® 28 nance, or who aids and abets any other person in the violation of any
i
II
I
1 { provision of this Ordinance, shall be liable under the provisions of
21 this section.
i
� � (b) No person convicted of a misdemeanor under this Ordinance
shall be a candidate for an elective county office or act as a county
4 . lobbyist or as a county contractor for a period of four years followi
the date of the conviction unless the court at the time of sentencing
5 ; specifically determines that this provision shall not be applicable.
plea of nolo contenders shall be deemed a conviction for purposes of
0 ' this section.
SECTION 16 . CIVIL ACTIONS
i
(a) Any person who intentionally or negligently violates any
8 ' provision of this Ordinance shall be liable in a civil action brought
by the District Attorney or by a person residing within the jurisdic-
tion for an amount not more than three times the amount the person
10i failed to report properly or unlawfully contributed, expended, gave a
received or $5,000 per violation, whichever is greater.
tl ; (b) If two or more persons are responsible for any violation,
! they shall be jointly and severally liable.
1_,
(c) Any person, other than the District Attorney, before filing
i31 civil action pursuant to this subdivision, .shall first file with the
District Attorne a written request for the District Attorneyto
t � i commence the action. The request shall contain a statement of the
^Z grounds for believing a cause of action exists. The District Attorne_
03o t5 ' within 30 days of receipt of the request, shall conduct an initial
tG inquiry into the merits of the complaint. If the District Attorney
Y'Jdetermines in good faith that additional time is needed to examine th,
°z = 1_ ` matter further, the complaining party shall be notified and the Dis-
V 3 trict Attorney shall automatically receive an additional 60 days in
18 order to determine the merits of the complaint. . At the end of 60 day:
the District Attorney shall inform the complaining party whether the
191 District Attorney intends to file a civil action or is conducting a
criminal investigation. If the District Attorney indicates in the
20 affirmative and files a civil action or criminal charges within 30 dad
thereafter, no other action may be brought unless the action brought
21 � the District 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 of culpa
23 ' bility of the defendant. If a judgment is entered against the defen-
dant or defendants in an action, the plaintiff shall receive fifty .
24 ; percent of the amount recovered. The remaining fifty percent shall b
deposited into the County's General Fund. In an action brought by th
251 District Attorney, the entire amount shall be paid to the General Fun,
r �
0 26 SECTION 17. INJUNCTIVE RELIEF
N
27 Any person residing in the jurisdiction, including the District
Attorney, may sue for injunctive relief to enjoin violations or to
28 compel compliance with the provisions of this Ordinance.
i
1 SECTION 18 . COST OF LITIGATION
The court may award to a plaintiff, other than an agency, who
3 ;1 prevails in any action authorized by this Ordinance, his or her costs
rf litigation.
4
1 SECTION 19. STATUTE OF LIMITATIONS
5
Civil actions and/or criminal prosecutions for violations of any
6 .! provision of this Ordinance shall be commenced within .four years after
' I the date on which the violation occurred.
SECTION 20. APPLICABILITY OF OTHER LAWS
8 :
Nothing in this Ordinance shall exempt any person from applicable
91 provisions of any other laws of this state or jurisdiction.
10 ; SECTION 21. SEVERABILITY
If any provision of this Ordinance, or the application of any suc
llil provision to any person or circumstances, . shall. be held invalid, the
12 remainder of this Ordinance to the extent it can be given effect, or
the application of such provision to persons or circumstances other
13 than those as to which it is held invalid, shall not be affected
thereby, and to this extent the provisions of this Ordinance are
severable.
o � 15I SECTION 22. INTERPRETATION OF ORDINANCE
°
" y 16 •I This Ordinance should be liberally construed to accomplish its
; ZZ 1 purposes.
° ' 1' � SECTION 23. AMENDMENTS AND ADDITIONAL REQUIREMENTS
18 1
(a) The Board of Supervisors shall by ordinance adjust the
191 contribution limitations in January of odd-numbered years to reflect
I any cumulative increase or decrease in the Consumer Price Index for th
201 State of California as announced by the United States Department of
! Labor since the last adjustment. Such adjustments shall be rounded- of
21i to the nearest hundred dollars for the limitations on contributions.
I '
221 (b) Except as specified in Section 23(a) , no amendment or repeal
of any provision of this Ordinance shall be effective unless the
231 proposition of its amendment or repeal shall first have been submitted
to the electors of the County and approved by a majority vote.
24
i (c) Nothing in this Ordinance prevents the Orange County Board o
25 Supervisors from imposing additional requirements on any person if the
r requirements do not prevent the person from complying with this Ordi-
26 nance.
N
N
27 SECTION 24. REPEAL OF ORANGE COUNTY ORDINANCE NO. 3066
U.
® 28 Orange County Ordinance No. 3066 is repealed effective July 2 ,
1992, except that Article 2 of Division 6 .of the Codified Ordinances o
f
I ; the County of Orange shall remain in effect until July 2, 1996 for a
contributions received prior to July 2, 1992.
SECTION 25. EFFECTIVE DATE
The provisions of this Ordinance sh become effective on July
1992 .
�> chaiV of the Board of Supervise
SIGNED AND CERTIFIED THAT A COPY OF
THIS DOCUMENT HAS BEEN DELIVERED TO
8 THE CHAIRMAN OF THE BOARD
91
I
10 ,1 --�
qWC1F K. SWANSON, Assistant
11 Clerk of the Board of Supervisors
t County of Orange, California
I?
i STATE OF CALIFORNIA )
13 ) ss.
COUNTY OF ORANGE )
14
I, NANCY K. SWANSON, Assistant Clerk of the Board of Supervisors
- _ ; 15 ; do hereby certify that at a regular meeting of the Board of Superviso:
:I of Orange County, California, held on the 23ra day of June
161 1992, the foregoing ordinance containing twenty-five (25) sections wa:
certified as having received a majority of the votes cast in the
0z 17 ;I election held on June 2, 1992.
l8 ! AYES: SUPERVISORS MRRI>M M. WXEDXR, CADDI H. V SQUEZ, Dos R. ROM,
THONM F. RILE!, AND ROGER R. STRUTON.
1911
{ NOES: SUPERVISORS �t0e8
20
ABSENT: SUPERVISORS HOM
2,1
22 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the Board of Supervisors of the County of Orange,
23 State of California, this 29th day of June , 1992.
24 j
25XAN
Q.n
CY K. SWANSON, Assistant
N 2G1 Clerk of the Board of Supervisors
27 of Orange County, California
L6
28
RCA ROUTING SHEET
INITIATING DEPARTMENT: CITY ATTORNEY
SUBJECT: Limitation on Campaign Contributions
COUNCIL MEETING DATE: January 18, 2000
STATUS.
RCA,ATTACH�M;ENTS
Ordinance (w/exhibits & legislative draft if applicable) Attached
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement Unbudget, over$5,000) Not Applicable
Bonds If applicable) Not Applicable
Staff Report If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION' FORAMISS'ING'ATTACHME�NTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: