HomeMy WebLinkAboutOrdinance 3579 - Amending HBMC Pertaining to Limitations on s
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�A CITY OF HUNTINGTON BEA
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City Council Interoffice Communication 0B 19R01' S o
To: Honorable Mayor Pro Tern and City Council Members
!ram
From: Debbie Cook, Mayor M =�
Date: August 12, 2002 � - a `G
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Subject: "H"ITEM FOR AUGUST 19, 2002, CITY COUNCIL MEETING-4N
ORDINANCE PERTAINING TO LIMITATIONS ON CAMPAIGN
CONTRIBUTIONS
STATEMENT OF ISSUE:
Current Huntington Beach Campaign Ordinances do not adequately regulate
contributions to a Slate Mailer Organization. As a result of the recent Coad/Norby
Orange County Supervisor race, the ounty of Orange recently adopted language that
would prevent slate mailers in which more than 25% of the surface area expressly
advocates or opposes the election of an individual candidate without that individual
candidate paying his/her attributable cost of production and distribution of the slate
mailer. There are two requirements for the ordinance to take effect: (1) the candidate
must coordinate with the slate mailer organization (i.e., it is not an independent
expenditure, and (2) the slate mailer must devote over 25% of the surface area to
supporting or opposing a Huntington Beach candidate.
RECOMMENDED ACTION:
Direct the City Attorney to amend the city's codified campaign ordinances to further
regulate use of slate mailers as shown in the attached draft ordinance.
Attachment:
1. Proposed ordinance adding section to the codified ordinances of the city of
Huntington Beach pertaining to limitations on campaign contributions.
xc: Ray Silver
Connie Brockway
Gail Hutton
Z z d Z 19f. 1001
�'3 IIJ"/1'i 1,1c.1 nt4
ORDINANCE NO.
AN ORDINANCE ADDING SECTION TO THE CODIFIED ORDINANCES
OF THE CITY OF HUNTINGTON BEACH PERTAINING TO LIMITATIONS ON
CA2�VAIGN CONTRIBUTIONS
The City.Council of the City of Huntington Beach California,does ordain as
follows:
Section 1: Section _is hereby added to Chapter of Title_of the
Huntington Beach Municipal Code;to read as follows:
"Sc;ction Slate Mailers_
(a) The provisions of Government Code Section 82048.4 axe not incorporated in,
.and shall not be used in the interpretation of,the City of Huntington Brach Campaign
Reform Law.
(b) If a slate mailer is produced and/or distributed other than at the behest of a
Huntington Beach City Candidate,then it is an independent expenditure,and is not
subject to the contribution aimitations of this Chapter.
(c) The following provisions shall apply only to slate rnailers in which more than
twenty-five percent(?S%) of the surface area of the slate mailer(exclusive of the area
used for address and postage)expressly advocates or opposes the election of an
indi%idual Huz.tington Bcach City Candidate,
(1) If a third party has provided funds to the slate mailer organization that are
used for the production and/r distribution of a slate mailer at the behest of a Huntington
Beach City Candidate. then:
(A) the attributable cost of production abd/ar distribution of the slate
mailer is a contribution from the third party to the Huntington Beach City Candidate to
the extent the attributable cost of production and/or distribution exceeds the amount, if
any,paid by the Huntington Beach City Candidate or the controlled committee of such a
candidate,up to the total of the fi nds provided by the third party,and this contribution is
subj ect to the contribution limitations of this Chapter,and
(B) the attributable cost of production and/or distribution of the slate
trailer that exceeds the total of the funds provided by the third party,and any funds paid
by the Huntington Beach City Candidate or the controlled committee of such a candidate
is a contribution from the slate mailer organization to the Huntington Beach City
Candidate,and tbis contribution is subject to the contribution limitations of this Chapter.
(2) If a slate mailer is produced or distributed at the behest of a Huntington Beach
City Candidate,without any contribution from a third party,then the attributable cost of
production and/or distribution is a contribution from the slate mailer organization to the
Huntington Beach City Candidate To the extent the attributable cost of production and/or
distribution exceeds the amount, if any,paid by the Huntington Beacb City Candidate or
the controlled committee of such a candidate to the slate mailIer organization, and this
contribution is subject to the contribution limitations of this Chapter.
(3) If a slate mailer expressly opposes the election of an Huntington Beach City
Candidate,and the slate mailer is produced and/or distributed at the behest of an
opposing Huntington Beach City Candidate("the opponenf'), th=
(A) If a third party has paid the slate mailer organization to oppose the
Huntington Beach City Candidate,then:
(i) the attributable cost of production and/or distribution of the slate
mailer is a contribution from the third party to the opponent to the extent it exceeds any
payment to the slate mailer organization from the opponent or the controlled committee
of such opponent up to the total amount paid to the slate mailer organization by the third
party to oppose the Huntington Beacb City Candidate, and this contribution is subject to
the contribution limitations of this Chapter,and
00 the attributable cost of production.and/or distnbution of the slate
mailer that exceeds the total,of the payment made to the slate mailer organization by the
third party to oppose the Huntington Beach City Candidate and any payment made to the
slate mailer organization by the opponent or the controlled committee of such opponent is
a contribution from the slate mailer organization to the opponent;and this contribution is
subject to the contribution limitations of this Chapter.
(B) if no third party has paid the slate mailer organization to oppose the
Huntington Beach City Candidate,then the attributable cost of production and/or
distribution is a contribution from the slate mailer organization to the opponcat to the
extent the attributable cost of production and/or distribution exceeds the amount, if any,
paid by the opponent or the controlled committee of such opponent-to the slate mailer
organization,and this contriibution is subject to the contribution limitations of this
Chapter.
(d) "Attributable cost of production and/or distribution"is computed by
multiplying the total cost of production and/or distribution of the slate mailer by a
tiraction,the numerator of which is the number of square inches of the mailer that,
expressly advocates or opposes the election of a Huntington Beach City Candidate, and
the denominator of which is the number of square inches of the mailer devoted to all
candidates.
(e) A Slate mailer is produced and/or distributed at the behest of a Huntington
Beath City Candidate:
2
,a
(1) if the Huntington Beach City Candidate, or his/her controlled
committee,or the candidate's or committee's agent or consultant pays anp,of the costs for
the.slate mailer,or provides any information or photographs used in the mailer. or,
consults or confers with t}�e slate mailer. organization in.any manner regarding the
content, timing, or dib-tribuEon of the slate mailer, or
(2) under any of the circumstances described in Section 18225.7(a)and
Section 18225.7(b)of Title 2 of the California Code of Regulations, as those sections
exist as of June 1, 2002.
(3) a non-refuDdable deposit made to a slate mailer organization shall not
bc considered a payment within the meaning of subsections(e)(1) or(e)(2) above, if(A)
the deposit is made by., or on behalf of,a Huntington Beach City Candidate who is not
opposed in the City election, or(B)if the deposit is made as consideration for a written
agreement whereby the slate mailer organization obligates itself to not produce a slate
mailer in which more than twenty-five percent(25%)of the surface area of the slate
mailer(exclusive of the area used for address and postage)expressly advocates or
opposes the election of the Hwotington Beach City Candidate by,or for whom,the
deposit is made.
Section 2: This Ordinance shall take effect_ . (CityA,tty to fill in necessary.
language.)
�. li Y OF HUNTINGTON BEAM
MEETING DATE: September 3, 2002 DEPARTMENT ID NUMBER: CA 02-23
Council/Agency Meeting.Held:
Deferred/Continued to:
❑ Approved ❑ Conditionally Approved ❑ Denied
r�V F12�rA P K 1p Cit Cler s Signature
Council Meeting Date: September 3, 2002 Department ID Number: CA 02-23
CITY OF HUNTINGTON. BEACH
REQUEST FOR COUNCIL ACTION
t- :-, -
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=ss�.
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY:AGAIL
RRAY SILVER, City Administrator02/v
PREPARED BY- . HUTTON, City Attorney
SUBJECT: Adoption of Ordinance No. 3.r79 Amending Chapter 2.07-
Campaign Reform-of the Huntington Beach Municipal Code Pertaining
to Slate Mailers
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachment(s)
Statement of Issue: Should the City adopt Ordinance No. 357q amending Chapter
2.07-Campaign Reform-of the Huntington Beach Municipal Code pertaining to limitations on
campaign contributions?
Funding Source: N/A
Recommended Action: Defer consideration of Ordinance No. 3579 amending
Chapter 2.07 of the Huntington Beach Municipal Code pertaining to slate mailers until the City
Attorney's Office can adequately analyze the constitutionality of the proposed ordinance.
Alternative Action(s): Adopt Ordinance No. 3,57c/
Analysis: On August 19, 2002, City Council directed the City Attorney to prepare the
attached ordinance pertaining to slate mailers and campaign contributions. Although City
Council did not indicate a date certain for consideration of the ordinance, the ordinance will not
be effective for the current election cycle unless the City Council adopts the ordinance on
September 3, 2002. If the ordinance is adopted on September 3, 2002, it will become effective
thirty days after second reading on October 16, 2002.
Based on this time restraint, the City Attorney's Office cannot complete the consititutional
analysis and is therefore recommending the City Council defer consideration of the ordinance
until the proper analysis can be completed. The ordinance has been prepared and approved
02—chap 207 .2' 8/30/2002 11:05 AM
RL,.iUEST FOR COUNCIL ACTIG,,
MEETING DATE: September 3, 2002 DEPARTMENT ID NUMBER: CA 02-23
as to form for Council consideration; however, it will not be approved as to content unless and
until the City Attorney's Office can recommend the ordinance will survive a constitutional
challenge.
The City Attorney's Office contacted Deputy County Counsel Jim.Meade who was assigned to
research the slate mailer ordinance recently adopted at the County level. He was very helpful
and provided the following information:
1. The County's analysis relies upon a campaign contribution limitation of
$1000.00.
2. The ordinance provides a "safe harbor" for use of less than 25% of the surface
area of the slate mailer to permit candidates to utilize slate mailers to a limited
extent without fear of criminal'or civil penalties.
3. The analysis completed by the County limits the ordinance to candidates only
and did not consider inclusion of issues or ballot measures.
4. The sole legal authority in support of the ordinance is an unpublished section of
the Ninth Circuit legal opinion, Lincoln Club of Orange County v. City of Irvine,
California (2001) 274 F.3d 1262.
The constitutional analysis for the City of Huntington Beach is distinctly different from the
County. First and foremost, the City's campaign contribution limitation of $300.00 is
significantly lower than the County's limitation. Therefore, the effect of the proposed
ordinance for Huntington Beach could be a de facto ban of use of slate mailers which is
unconstitutional. Most importantly, the City would not be able to rely upon or cite the
unpublished Ninth Circuit decision in defense of the ordinance if the ordinance was
challenged.
Environmental Status: N/A
Attachment(s):
City Clerk's
. - Number No. Description
Ordinance No. 7 Adding Section 2.07.270 to the Codified
Ordinances of the City of Huntington Beach Pertaining to Slate Mailers
2. Legislative Draft of Chapter 2.07
RCA Author: McGrath
02-chap 207 8/30/2002 11:05 AM
T,T H"
4' T
NO - ACTION
ORDINANCE NO. Jam_
TAil�o
INANCE ADDING SECTION 2.07.270 TO THE CODIFIED
ORDINANCES OF THE CITY OF HUNTINGTON BEACH PERTAINING
TO LIMITATIONS ON CAMPAIGN CONTRIBUTIONS
The City Council of the City of Huntington Beach, California does ordain as follows:
SECTION 1: Section 2.07.270 is hereby added to the-Huntington Beach Municipal
Code, to read as follows:
2.07.270 Slate Mailers.
(a) The provisions of Government Code Section 82048.4 are not incorporated in, and
shall not be used in the interpretation of,the City of Huntington Beach Campaign Reform Law.
(b) If a slate mailer is produced and/or distributed other than at the behest of a
Huntington Beach City Candidate, then it is an independent expenditure, and is not subject to the
contribution limitations of this Chapter. "Slate mailer" means a mass mailing which supports or
opposes a total of four or more candidates or ballot measures.
(c) The following provisions shall apply only to slate mailers in which more than
twenty-five percent(25%) of the surface area of the slate mailer (exclusive of the area used for
address and postage) expressly advocates or opposes the election of an individual Huntington
Beach City Candidate.
(1) If a third party has provided funds to the slate mailer organizations that are
used for the production and/or distribution of a slate mailer at the behest of a Huntington
Beach City Candidate then:
(A)the attributable cost of production and/or distribution of the slate
mailer is a contribution from the third party to the Huntington Beach City Candidate to
the extent the attributable cost of production and/or distribution exceeds the amount, if
any, paid by the Huntington Beach City Candidate or the controlled committee of such a
candidate, up to the total of the funds provided by the third party, and this contribution is
subject to the contribution limitations of this Chapter, and
(B) the attributable cost of production and/or distribution of the slate
mailer that exceeds the total of the funds provided by the third party and any funds paid
by the Huntington Beach City Candidate or the controlled committee of such a candidate
is a contribution from the slate mailer organization to the Huntington Beach City
Candidate, and this contribution is subject to the contribution limitations of this Chapter.
(2) If a slate mailer is produced or distributed at the behest of a Huntington
Beach City Candidate, without any contribution from a third party, then the attributable
02ord/campaign/8/29/02 1
A c
cost of production 4anor distribution is a contribution from the slate mailer organization
n Beach City Candidate to the extent the attributable cost of production
AK ion exceeds the amount, if any, paid by the Huntington Beach City
Candidate or the controlled committee of such a candidate to the slate mailer
organization, and this contribution is subject to the contribution limitations of this
Chapter.
(3) If a slate mailer expressly opposes the election of a Huntington Beach City
Candidate, and the slate mailer is produced and/or distributed at the behest of an
opposing Huntington Beach City Candidate ("the opponent"); then:
(A) If a third party has paid the slate mailer organization to oppose the
Huntington Beach City Candidate, then:
(i)the attributable cost of production and/or distribution of the
slate mailer is a contribution from the third party to the opponent to the extent it exceeds
any payment to the slate mailer organization from the opponent or the controlled
committee of-such opponent up to the toial amount paid-to the slate mailer organization
by the third party to oppose the Huntington Beach City Candidate, and this contribution
is subject to the contribution limitations of this Chapter, and
(ii) the attributable cost of production and/or distribution of the
slate mailer that exceeds the total of the payment made to the slate mailer organization by
the third party to oppose the Huntington Beach City Candidate and any payment made to
the slate mailer organization by the opponent or the controlled committee of such
opponent is a contribution from the slate mailer organization to the opponent, and this
contribution is subject to the contribution limitations of this Chapter.
(B) If no third party has paid the slate mailer organization to oppose
the Huntington Beach.City Candidate, then the attributable cost of production and/or
distribution is a contribution from the slate mailer organization to the opponent to the
extent the attributable cost of production and/or distribution exceeds the amount, if any,
paid by the opponent or he controlled committee of such opponent to the slate mailer
organization, and this contribution is subject to the contribution limitations of this
Chapter.
(d) "Attributable cost of production and/or distribution" is computed by multiplying the
total cost of production and/or distribution of the slate mailer by a fraction, the numerator of
which is the number of square inches of the mailer that expressly advocates or opposes the
election of a Huntington Beach City Candidate, and the denominator of which his the number of
square inches of the mailer devoted to all candidates.
(e) A slate mailer is produced and/or distributed at the behest of a Huntington Beach City
Candidate:
02ord/campaiVV8/29/02 2
NO ACT10k)
TAKENhe Huntington Beach City Candidate,or his/her controlled committee,or
the candidate's or committee's agent or consultant pays any of the costs for the slate mailer, or
provides any information or photographs used in the mailer, or consults or confers with the slate
mailer organization in any manner regarding the content, timing, or distribution of the slate
mailer, or.
(2) under any of the circumstances described in Section 18225.7(a) and Section
18225.7(b) of Title 2 of the California Code of Regulations, as those section exist as of June 1,
2001.
(3) a non refundable deposit made to a slate mailer organization shall not be
considered a payment within the meaning of subsections (e)(1) or (e)(2) above, if(A) the deposit
is made by, or on behalf of, a Huntington Beach City Candidate who is not opposed in the City
election, or(B) if the deposit is made as consideration for a written agreement whereby the slate
mailer organization obligates itself to not produce a slate mailer in which more than twenty-five
percent(25%) of the surface area of the slate mailer(exclusive of the area used for address and
postage) expressly advocates or opposes the election of the Huntington Beach City Candidate by,
or nor whom, the deposit is made.
SECTION 2. This ordinance shall become effective i0 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 day of _, 2002.
--- Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk &i� City Attorney
g.Zo-6 2-
REVIEW ED AND PPR V APPROVED AS TO CONTENT:
City Administrator UZ City Attorney
S-je,
02ord/campaign/8/29/02
j
TAKEN
ATTACHMENT #2
ORDINANCE NO. 3
LEGISLATIVE DRAFT
CHAPTER 2.07
CAMPAIGN REFORM
(2507-11/81,2 7 2 1-1 0184,2818-3/86,3220-1/94,3452-W0 .
Sections.2.07.010 NameA mrlr
$ "
2 .020 Purpose
v
.07 rposc -
2.07.030 Relation to Political Reform Act of 1974
2.07.040 Definitions TA KE
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
2.07.270 Slate Mailers.
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)
1egisdrft/mc0207/8/26/02 I
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 the California
Government Code, in which the Political Reform Act of 1974 f d,,
may be, from time to time amended.
(3220-1194)
2.07.040 Definitions.(3220-1/94) T-A
(a) "City Candidate" means any person who is a candidate for the city Council, rt
Clerk, City Treasurer, or City Attorney of the City of Huntington Beach. (3220=1/94)
(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.(3220-1/94,3452-3/00)
(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:(3220-1194)
legisdrft/mc0207/8/26/02 2
(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 If f h
Section 2.07.070 of this Chapter. (3220-1/94) >. ,
(b) Two (2) or more entities shall be treated as one person when A
he following
circumstances apply: (3220-1/94)
(1) The entities share the majority of members of their boards of direr o .'
(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)
(c) An individual and any general or limited partnership in which the 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)
Iegisdrft/mc0207/8/26/02 3
�i
1992 Election Cycle -Three Council Seats and City.Clerk"
January 1, 1989 - December 31, 1992.
(1) The "last election" was November 1988. TA ,..
ER-11 N
2 December 31 1 88 wa O 9 s 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. (3220-1/94)
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.(3220-1/94)
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.
(2) December 31, 1992, was the last or final date for receipt of campaign
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)
Iegisdrft/mc0207/8/26/02 4
(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.(3,2 1.
This section shall be interpreted to allow the maxi ch c ;
be contributed by any person to any candidate or anyone whAa
candidate, during a four (4) year period,to be the maximTAftEN'
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.(3220-1194)
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)
(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)
legisdrft/mc0207/8/26/02 5
(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 t Pe
QanAI
elective City officer or his or her controlled committee. T t at
loan shall remain subject to the contribution limits of this Chap (32zo-1/sa) ..
p A
(d) Extensions of credit(other than loans pursuant to Section 2.07.1 c e
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.(3220-1194)
(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)
Iegisdrft/mc0207/8/26/02 6
(b) For purposes of this section: (3220-1/94)
(1) "Personally deliver" means delivery of a contrib.ut�o . in person or causing
a contribution to be delivered in person by an r nt_ i
than the United States mail. (3220-1/94)
4 �
(2) "Receive" includes the precept of a campaign contrib ti
person. (3220-1/94) jk Pi
EN
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.(3220-1194)
2.07.170 Criminal misdemeanor actions. (3220-1194)
(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.(3220-1194)
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)
IegisdrWmc0207/8/26/02 7
(b) If two (2) or more persons are responsible for any violatioRMY4,,
and severally liable.(3220-1/94)
4
(c) Any person, other than the City Attorney, before filing a civil a i * '£
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)
(d) In determining the amount of liability, the court may take into account 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 Iniunctive 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
1egisdrft/mc02O7/8/26/02 8
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:Lare era eco
- sa2.07.240 Interpretation of chapter. This Chapter should be liberally constru ` w
accomplish its purposes.(3220-1/94)
2.07.250 Amendments and additional requirements. The City Counci AshaMW
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)
2.07.270 Slate Mailers.
(a) The provisions of Government Code Section 82048.4 are not
incorporated in, and shall not be used in the interpretation of, the City
of Huntington Beach Campaign Reform Law.
(b) If a slate mailer is produced and/or distributed other than
at the behest of a Huntington Beach City Candidate, then it is an
independent expenditure, and is not subject to the contribution
limitations of this Chapter. "Slate mailer" means a mass mailing which
supports or opposes a total of four or more candidates or ballot
measures.
(c) The following provisions shall apply only to slate mailers in
which more than twenty-five percent (25%) of the surface area of the
slate mailer (exclusive of the area used for address and postage)
expressly advocates or opposes the election of an individual Huntington
Beach City Candidate.
(1) If a third party has provided funds to the slate mailer
organizations that are used for the production and/or distribution
of a slate mailer at the behest of a Huntington Beach City
Candidate then:
(A) the attributable cost of production and/or
distribution of the slate mailer is a contribution from the third
party to the Huntington Beach City Candidate to the extent the
1egisdrft/mc02O7/8/26/02 9
attributable cost of production and/or distribution exceeds the
amount, if any, paid by the Huntington Beach City Candidate or
the controlled committee of such a candidate,lu ,Yo` he e .n
funds provided by the third party, and this c&&i ti p
PJ o
to the contribution limitations of this Chapter, anc �"
(B) the attributable cost of production a d/ KE
distribution of the slate mailer that exceeds the total of the funds
provided by the third party and any funds paid by the Huntington
Beach City Candidate or the controlled committee of such a
candidate is a contribution from the slate mailer organization to
the Huntington Beach City Candidate, and this contribution is
subject to the contribution limitations of this Chapter.
(2) If a slate mailer is produced or distributed at the
behest of a Huntington Beach City Candidate,without any
contribution from a third party, then the attributable cost of
production and/or distribution is a contribution from the slate
mailer organization to the Huntington Beach City Candidate to
the extent the attributable cost of production and/or distribution
exceeds the amount, if any, paid by the Huntington Beach City
Candidate or the controlled committee of such a candidate to the
slate mailer organization, and this contribution is subject to the
contribution limitations of this Chapter.
(3) If a slate mailer expressly opposes the election of a
Huntington Beach City Candidate, and the slate mailer is
produced and/or distributed at the behest of an opposing
Huntington Beach City Candidate ("the opponent"); then:
(A) If a third party has paid the slate mailer
organization to oppose the Huntington Beach City Candidate,
then:
(i) the attributable cost of production and/or
distribution of the slate mailer is a contribution from the third
party to the opponent to the extent it exceeds any payment to the
slate mailer organization from the opponent or the controlled
committee of such opponent up to the total amount paid to the
slate mailer organization by the third party to oppose the
Iegisdrf/mc02O7/8/26/02 10
Huntington Beach City Candidate and this #6ntribu TO
subject to the contribution limitations of this Cha'to ,
(ii) the attributable cost of prodiue't
lew
distribution of the slate mailer that exceeds the total of the
payment made to the slate mailer organization by the third party
to oppose the Huntington Beach City Candidate and any payment
made to the slate mailer organization by the opponent or the
controlled committee of such opponent is a contribution from the
slate mailer organization to the opponent, and this contribution-is
subject to the contribution limitations of this Chapter.
(B) If no third party has paid the slate mailer
organization to oppose the Huntington Beach City Candidate,
then the attributable cost of production and/or,distribution is a
contribution from the slate mailer organization to the opponent to
the extent the attributable cost of production and/or distribution
exceeds the amount, if any, paid by the opponent or he controlled
committee of such opponent to.the slate mailer organization, and
this contribution is subject to the contribution limitations of this
Chapter.
(d) "Attributable cost of production and/or distribution" is
computed by multiplying the total cost of production and/or
distribution of the slate mailer by a fraction, the numerator of which is
the number of square inches of the mailer that expressly advocates or
opposes the election of a Huntington Beach City Candidate, and the
denominator of which his the number of square inches of the mailer
devoted to all candidates or issues.
(e) A slate mailer is produced and/or distributed at the behest of a
Huntington Beach City Candidate:
(1) if the Huntington Beach City Candidate, or his/her
controlled committee, or the candidate's or committee's agent or
consultant pays any of the costs for the slate mailer, or provides any
information or photographs used in the mailer, or consults or confers
with the slate mailer organization in any manner regarding the content,
timing, or distribution of the slate mailer, or
Iegisdrft/mc0207/8/26/02 I I
- t_
(2) under any of the circumstances described in Section
18225.7(a) and Section 18225.7(b) of Title 2 of the California Code of
Regulations, as those section exist as of June 1, 2001.
(3) a non refundable deposit made to a slate mailer
organization shall not be considered a payment within the meaning of
subsections (e)(1) or (e)(2) above, if(A) the deposit is,made by, or on
behalf of, a Huntington Beach City Candidate who is not opposed.in the
City election, or (B) if the deposit is made as consideration for a written
agreement whereby the slate mailer organization obligates itself to not
produce a slate mailer in which more than twenty-five percent(25%) of
the surface area of the slate mailer (exclusive of the area used for
address and postage) expressly advocates or opposes the election of the
Huntington Beach City Candidate by, or for whom, the deposit is made.
4{ i
&Y;
legisdrft/mc02O7/8/26/02 12
RCA ROUTING SHEET
INITIATING DEPARTMENT: City Attorney
SUBJECT: Adoption of Ordinance No. `1- Amending Chapter
2.07-Campaign Reform-of the Huntington Beach Municipal
Code Pertaining to Slate Mailers
COUNCIL MEETING DATE: Sept. 3, 2002
RCA ATTAC°HM�ENTS STATUS
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 FOR MISSING.ATTACHMENTS
REVIEWED; RETURNED FORWARDED
Administrative Staff
Assistant City Administrator (Initial) ( ) ( )
City Administrator (Initial) ( ) 040 )
City Clerk ( )
EXPLANATION;F.OR-:RE'TU.RN:OF;ITEM:
(Below . . Use Only)
RCA Author: McGrath