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HomeMy WebLinkAboutOrdinance No. 3220 - Adopted 1/13/94 - Relating to Election PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. County of Orange ) I am a Citizen of the United States and a Ka µ resident of the County aforesaid; I am ipf over the age of eighteen years, and not a party to or interested in the below OF N `� ` ' - +���rE+ie,Crry ; entitled matter. I am a principal clerk of , , the HUNTINGTON BEACH INDEPENDENT, a , newspaper of general circulation printed and published in the City of Huntington r . Beach, County of Orange, State of California, and that attached Notice is a M true and complete copy as was printed �� ; and published in the Huntington Beach and Fountain Valley issues of saidflons2 ,F1 newspaper to wit the issue(s) of: 467.a R aiQ Rel Act 'a •l C7thei lawff 1 7*4 o7+i14�t t]e�- verx llftY�. nftns; .0 .01�0:Camr>i��gn � Cont►iboon :i.*ttatk►ns 2.07Eii regson_ of is and AOdition C� January 13, 1994 �r►trrbirti sns; . � q�i��. $.0'F�Bor �ro6ribtttc t= sett} lurti►ie. JIA ORDINANCE '0 1 EmLE iN TMe.i 1rt;ERtcS OFFICE, i�r .b , to City tes, and Of the any Of TtWr r;o o Csnn� + th a tee; .'2d 110. nteetrrt ►5erd the J ! declare, under penalty of periury, that by I' TreaW 120 1 the foregoing is true and correct. aii►'t P� + ringers I ia�tttisn �xtto 9*41t, 2.07. ' " Executed on J 13 199 4 � �` # Vary , 2.07.140` at Costa Mesa, California. 2.0 °" 2�r.r�o of Cu- mk�ratF a the i utions 2 07;�R4LAO Cqe#t ti#��:Q7.f7o �'Y r C.ei++irrat." or,Acr, oRgd � tides; 8. 1w1, iC Rel 40,Z 07 t of utS- Sty gation Z E1T:Z1 ' i .per ia1y 13 * x t Signature ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING TITLE 2 OF THE HUNTINGTON BEACH MUNICIPAL CODE BY REPEALING CHAPTER 2.05 AND ADDING NEW CHAPTER 2.07 RELATING TO CAMPAIGN REFORM The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION I: That the Huntington Beach Municipal Code is hereby amended by repealing Chapter 2.05 and adding Chapter 2.07,to read as follows: CHAPTER 2.07 CAMPAIGN REFORM Sections: y 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 Contribution Limitations 2.07.060 Aggregation of Contributions 2.07.070 Election Cycles 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 Committees 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 ActionsI 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 1 11\sg\11/08/93 2.07,010 Name. This Chapter shall be known and may be cited as the "City of Huntington Beach Campaign Reform Law." 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. 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. 2.07.040 Definitions. 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. 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. 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. 2.07.050 Campaign Contribution Limitations. 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: (1) $300.00 in a City Council, City Clerk, City Treasurer, or City Attorney election cycle; or(2) $200.00 in a recall election cycle. B. No independent committee (PAC) shall make any contributions in support of the election of any candidate or any controlled committee with respect to any election, and no candidate shall accept contributions from an independent committee (PAC),which in the aggregate exceed $1,500.00. C. Any person or committee that spends or incurs independent expenditures during the 12 months preceding a City election on independent expenditures supporting or 2 11\sg\10/22/93 . • s opposing City candidates's) shall not accept any contribution's)from any person in excess of the amounts set forth in Section 207.050A during the applicable time periods as set forth in Section 2.07.070 of this Chapter. 2.07.060 Aggregation of Contributions. For purposes of the limitations in this Chapter,the following shall apply: 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. B. Two or more entities shall be treated as one person when any of the following circumstances apply: (1) The entities share the majority of members of their boards of directors. (2) The entities share two or more officers. (3) The entities are owned or controlled by the same majority shareholder or shareholders. (4) The entities are in a parent-subsidiary relationship. C. An individual and any general or limited partnership in which the individual has a 10% or more share, or an individual and any corporation in which the individual owns a controlling interest(50% or more), shall be treated as one person. 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. E. Contributions by children under eighteen years of age shall be treated as contributions by their parents. 2.07.070 Election Cycles. A. City Council, City Clerk, City Treasurer, and City Attorney Elections. For purposes of the limits of this Chapter, contributions made at any time between the final date 3 11\sg\10/22/93 ! 0 for contributions to the last election for that same City Council, City Clerk, City Treasurer or City Attorney seat through December 31 of the next election year, shall be deemed City Council, City Clerk, City Treasurer, or City Attorney election contributions,respectively. B. 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: (1) The recall proponents fail to return signed petitions to the City Clerk within the time limits set forth in the California Elections Code. (2) All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act. (3) Ten days after a recall election has been held. 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. 2.07.090 Prohibition on Transfers. 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). 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. 4 11\sg\10/22/93 2.07.100 Loans to C�Candidates and Elective Cily Officers and Their Controlled Committees. 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. 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. 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. D. Extensions of credit(other than loans pursuant to Section 2.07.100C) for a period of more than 30 days are subject to the contribution limitations of this Chapter. 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. 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. 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 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. 2.07.130 Transmittal of Campaign Contributions in City Office Buildings. 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. 5 11\sg\10/22/93 B. For purposes of this section: (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 (2) "Receive" includes the precept of a campaign contribution delivered in person. 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. 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. 2.07.160 Reporting of Late Contributions. Notwithstanding the limit contained in California Government Code Section 320, late expenditures or contributions in excess of $200.00 shall be reported to the City Clerk within twenty-four(24)hours of the contribution or expenditure. 2.07.170 Criminal Misdemeanor Actions. 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. 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 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. 2.07.180 Oyd Actions. 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 times the amount of person failed to report properly or unlawfully contributed, expended, gave or received or$5,000 per violation, whichever is greater. 6 11\sg\10/22/93 B. If two or more persons are responsible for any violation,they shall be jointly and severally liable. 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 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 60 days in order to determine the merits of the complaint. At the end of 60 days the City Attorney shall inform the complaining parry 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 30 days thereafter, no other action may be brought unless the action brought by the City 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 culpability of the defendant. If a judgment is entered against the defendant or defendants in an action,the plaintiff shall receive fifty percent of the amount recovered. The remaining fifty percent 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. 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. 2.07.190 Injunctive Relie£ 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. 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. 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 years after the date on which the violation occurred. 2.07.220 Annlicability of Other Laws. Nothing in this Chapter shall exempt any person from applicable provisions of any other laws of this state or jurisdiction. 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 7 11\sg\10/22/93 • s 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. 2.07.040 Interpretation of C a t r. This Chapter should be liberally construed to accomplish its purposes. 2.07.250 Amendments and Additional Requirements. The City Council shall review the contribution limitations contained in this Chapter in January of every fourth 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. 2.07.260 Effective Date. The provisions of this Chapter shall become effective on January 1, 1994. 8 11\sg\10/22/93 SECTION II A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the Office of the City Clerk at least five (5) days prior to the City Council meeting at which this Ordinance is to be adopted. A summary of this Ordinance shall also be published once within fifteen(15) days after this Ordinance's passage in the a newspaper of general circulation published, and circulated in the City of Huntington Beach. The City Clerk shall post in the Office of the City Clerk a certified copy of the full text of such adopted Ordinance along with the names of those City Council members voting for and against the Ordinance in accordance with Government Code Section 36933. ADOPTED this day of , 1993. Mayor ATTEST APPROVED AS TO FORM City Clerk CzAttorney REVIEWED AND AND APPROVED: INITIATED AND APPROVED: ity Administrator City Administrator 9 11\sg\10/22/93 2 .05 .010--2. 05.040 Chapter 2.05 LIMITATIONS ON CAMPAIGN -CONTRIBUTIONS AND REPORTING OF LATE CAMPAIGN CONTRIBUTIONS Sections: 2. 05 .010 Definitions. 2.05.020 Limitations on contributions--Individual . 2 .05 .030 Limitations on contributions--Independent committee (PAC) . 2.05 .040 Reporting of late contributions . 2.05 .050 Calendar year. 2.05 .060 Review of campaign statements. 2.05.070 Severance. 2.05 .080 Penalty--Misdemeanor . 2.05.010 Definitions . Unless the context otherwise re- quires, the 3efinitions set forth in Chapter 2 of Title 9 of the California Government Code (Political Reform Act) shall govern the interpretation off this chapter . (Ord. 2507, 4 Nov 81 ) 2.05.020 Limitations on contributions--Individual . No contributor shall make contributions in support of any candi- dacy or to any controlled committee with respect to any elec- tion, and no candidate shall accept contributions including contributions to such candidates ' controlled committees, from any individual, which contributions, in the aggregate, exceed $300 . (Ord. 28181 20 Mar 86; Ord. 2507, 11/81 ) 2 .05 .030 Limitations on contributions--Independent com- mittee (PAC) . No independent committee (PAC) shall make any contributions in support of the election of any candidate or to any controlled committee with respect to any election, and no candidate shall accept contributions from an independent committee (PAC) , which, in the aggregate, exceed $1,500. (Ord. 2818, 20 Mar 86; Ord. 2721 , 10/84; Ord. 2507, 11/81 ) 2 .05 .040 Reporting of late contributions . Notwith- standing the limit contained in California Government Code sec- tion 32036 , late expenditures or contributions in excess of $'200 shall be reported to the city clerk within twenty-four ( 24 ) hours of the contribution or expenditure. (Ord. 2860, 17 Sep 86 ; Ord . 2507, 11/81 ) 11 2'. 05 .050--2.05 .080 2 .05 .050 Calendar year . Expenditures or contributions ~-- made within the period of twelve (12) months prior and subse- quent to any election are considered to be made in support of a candidacy at such election. (Ord. 25078 4 Nov 81 ) 2 .05 .060 Review of campaign statements. The city clerk shall receive and review each campaign contribution and expend- iture statement and report apparent violations of this chapter to the city attorney. (Ord. 2507, 4 Nov 81) 2 .05 .070 Severance. If any part of this chapter is held by a court of competent jurisdiction to be unenforceable for any reason whatsoever , then such part shall be deemed severed from the remainder of the chapter and the remainder shall thereafter remain in full force and effect . Nothing in this chapter shall be deemed to place any limit upon any contribu- tion given or expenditure made by any candidate in support of his own election. (Ord. 2507, 4 Nov 81) 2.05 .080 Penalty--Misdemeanor . It is unlawful for any person knowingly to violate any provision of this chapter . Any such person shall be guilty of a misdemeanor and shall be sub- ject to a fine of not more than five hundred dollars ($500) or imprisonment in the county jail for a period not to exceed 180 days, or both such fine and imprisonment. (Ord . 2507, 4 Nov 81) 12 --_' REQUEST FOR CITY COUNCIL ACTION Date December 20,. 1993 Submitted to: Honorable Mayor& City Council Members Submitted by: Michael T. Uberuaga, City Administrator 6p/1& Prepared by: Patricia A. Dapkus, Management Assistan Subject: CAMPAIGN FINANCE ORDINANCE Consistent with Council Policy? [ ] Yes [ J New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: Statement of Issue: The purpose of this Ordinance 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 Ordinance 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. Recommendation: Approve Ordinance`s and thereby repeal existing Chapter 2.05 of the City of Huntington Beach Ordinance Code; and put into place a new chapter, Chapter 2.07, "Campaign Reform". Analysis: Under existing Chapter 2.05, guidelines were established with regard to campaign contributions. With the new Chapter 2.07, limitations on individuals and independent committees (PACs)remain at the levels established by 2.05. The new code then builds on these limitations by clarifying the definitions for the classification and by elaborating on their application including the following: 1. It defines and limits aggregate contributions. 2. It clarifies the definition for an election cycle. 3. It provides greater clarity on recall campaigns. 4. It prohibits multiple campaign committees. 5. It provides that 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 an elective city officer. t� P10 5/85 CAMPAIGN FINANCE ORDINANCE PAGE 2 12/16/93 6. Nor may other city candidates or committees controlled by a city candidate or elective city officer make any contribution to any other city candidate running for office or to any committee supporting or opposing a city candidate for elective office or to any committee supporting or opposing a recall of an elective city officer with the exception that a city candidate may contribute from his/her own personal funds to their own candidacy or to the candidacy of any other. 7. It sets guideline for loans to candidates for city elective office. 8. It clarifies other related issues regarding the financing of a campaign for an city elective office. Finally, the new code provides more details regarding reporting contributions and penalties for violations of the code. Funding Source: N/A Alternative Actions: 1. Do not approve the attached Ordinance, and allow the existing code to remain in place. Attachments: 1. Ordinance repealing Chapter 2.05 of the city's Ordinance Code and adding new Chapter 2.07. 2. Existing Chapter 2.05. t ORDINANCE NO. 3220 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING TITLE 2 OF THE HUNTINGTON BEACH MUNICIPAL CODE BY REPEALING CHAPTER 2.05 AND ADDING NEW CHAPTER 2.07 RELATING TO CAMPAIGN REFORM The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION-I: That the Huntington Beach Municipal Code is hereby amended by repealing Chapter 2.05 and adding Chapter 2.07,to read as follows: 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 Contribution Limitations 2.07.060 Aggregation of Contributions 2.07.070 Election Cycles 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 Committees 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 1 11\sg\Campaign\12/23/93 r 2.07.010 Name. This Chapter shall be known and may be cited as the "City of Huntington Beach Campaign Reform Law." 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. 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. 2.07.040 Definitions. 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. 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. 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. 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. 2.07.050 Campaign Contribution Limitations. 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: (1) $300.00 in a City Council, City Clerk, City Treasurer, or City Attorney election cycle; or(2) $200.00 in a recall election cycle. 2 11\sg\Campaign\12/23/93 3220 B. Any person or committee, during the 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 2.07.050A during the applicable time periods as set forth in Section 2.07.070 of this Chapter. 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. 2.07.060 Aggregation of Contributions. For purposes of the limitations in this Chapter,the following shall apply: 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. B. Two or more entities shall be treated as one person when any of the following circumstances apply: (1) The entities share the majority of members of their boards of directors. (2) The entities share two or more officers. (3) The entities are owned or controlled by the same majority shareholder or shareholders. (4) The entities are in a parent-subsidiary relationship. C. An individual and any general or limited partnership in which the individual has a 10%or more share, or an individual and any corporation in which the individual owns a controlling interest(50%or more), shall be treated as one person. 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. E. Contributions by children under 18 years of age shall be treated as contributions by their parents. 3 11\sg\Campaign\12/23/93 3220 2.07.070 Election Cycle. 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. B. Examples of Election Cycle. January 1, 1987,to December 31, 1990, was the 'Election Cycle" for the 1990 election. Pursuant to § 2.07.070 Election Cycle,the four year period for purposes of applying the interpretation of the Campaign Ordinance Election Cycle 2.07.070A shall be as follows: Example 1. 1992 Election Cycle - Three Council Seats and Clerk and 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. 1994 Election Cycle-Four 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. 4 11\sg\Campaign\12/23/93 3220 Example 3. 1996 Election Cycle-Three Council Seats and Clerk and 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: (1) The recall proponents fail to return signed petitions to the City Clerk within the time limits set forth in the California Elections Code. (2) All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act. (3) Ten days after a recall election has been held. 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 year period, to be the maximum amount specified in Section 2.07.50. 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. 2.07.090 Prohibition on Transfers. 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). 5 11\sg\Campaign\12/23/93 3220 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. 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. 2.07.100 Loans to City Candidates and Elective City Officers and Their Controlled Committee. 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. 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. 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. D. Extensions of credit(other than loans pursuant to Section 2.07.100C) for a period of more than 30 days are subject to the contribution limitations of this Chapter. 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. 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. 6 11\sg\Campaign\12/23/93 3220 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. 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 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. 2.07.130 Transmittal of Campaign Contributions in City Office Buildings. 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. B. For purposes of this section: (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. (2) "Receive" includes the precept of a campaign contribution delivered in person. 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. 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. 2.07.160 Reporting of Late Contributions. Notwithstanding the limit contained in California Government Code Section 320, late expenditures or contributions in excess of $200.00 shall be reported to the City Clerk within 24 hours of the contribution or expenditure. 7 11\sg\Campaign\12/23/93 3220 q 2.07.170 Criminal Misdemeanor Actions. 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. 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 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. 2.07.180 Civil Actions. 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 times the amount the person failed to report properly or unlawfully contributed, expended, gave or received, or$5,000 per violation, whichever is greater. B. If two or more persons are responsible for any violation,they shall be jointly and severally liable. 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 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 60 days in order to determine the merits of the complaint. At the end of 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 30 days thereafter, no other action may be brought unless the action brought by the City 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 culpability of the defendant. If a judgment is entered against the defendant or defendants in an action,the plaintiff shall receive 50%of the amount recovered. The remaining 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. 8 3220 111sg\Campaign\12/23/93 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. 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. 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. 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 years after the date on which the violation occurred. 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. 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. 2.07.240 Interpretation of Chapter. This Chapter should be liberally construed to accomplish its purposes. 2.07.250 Amendments and Additional Requirements. The City Council shall review the contribution limitations contained in this Chapter in January of every fourth 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. 2.07.260 Effective Date. The provisions of this Chapter shall become effective upon adoption, pursuant to Huntington Beach City Charter Section 500(e)(1). 9 11\sg\Campaign\12/23/93 3220 SECTION II ADOPTED this 3rd day of January 11994. Mayor ATTEST APPROVED AS TO FORM City Clerk City Attorney iZ 13-53 6e,1 REVIEWED AND APPROVED: City Administrator 10 11\sg\Campaign\12/23/93 Ord. No. 3220 STATE OF CALIFORNIA ) COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the 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 therof held on the loth day of December 19 93 , and was again read to said City Council at a regular meeting therof held on the 3rd day of January , 19 94 , and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council . AYES: Councilmembers: Bauer, Robitaille, Moulton-Patterson, Winchell, Leipzig, Sullivan NOES: Councilmembers: None ABSENT: Councilmembers: Silva City Clerk and ex-officiY Clerk of the City Council of the City of Huntington Beach, California SUGGESTED REVISIONS TO CAMPAIGN FINANCE ORDINANCE RALPH BAUER 12/20/93 ADD 2.070.040 Definitions (D) PERSON- As defined by the Political Reform Act and repeated here for clarity means individual, proprietorship firm, partnership,joint venture,syndicate,business, trust,corporation, association,committee,and any other organization or group of persons acting in concert. (Rational: to remind people that person(individual) and P.A.C.'s (committees) are the same legally. MODIFY 2.070.050 Since person means committee, political action committee, or sponsored committee, paragraph B can be left out providing the limit on amounts of contributions are the same for persons and committees. SUGGESTION: This amount should be$300, 500, or$1,000 for both. RATIONALE: Since one person can become a P.A.C. the$300 limit can easily be circumvented allowing a person action as a P.A.0 to make a$1,000 contribution. Further, since "Person" already means "P.A.C." this paragraph is redundant. ALTERNATE OPTION: This change can be made by changing the amount for P.A.C.'s from$1,000 to $300 or whatever amount the Council wishes. ADD: First paragraph on Page 3 The point is missing in 2[.]07.050A. CORRECT 2.070.050 D Second Line should read: . . . . . ."his or her personal funds e-r to his or her own campaign." 2.070.070 B Example 3, Section 1,should be changed to 1992. Section 2,change "eerperahenLf to "campaign". I MODIFY: 2.070.070 Election Cycle, Section C 3,change to read: "Contributions received by an elective City officer in opposition to his or her own recall shall be deposited into a separate campaign committee established exclusively for receiving contributions and making expenditures in opposition to his or her own recall. Funds remaining after the recall election ends in accordance with Section 302A will be consider surplus funds and may not be transferred into his or her other campaign committee for that City office." RATIONALE: This wording clarifies the intent and forces a new committee for a recall thus you can't co-mingle election funds with recall funds. DELETE 2.070.090 B Delete the first paragraph on page 6. RATIONALE: This paragraph is ambiguous and is an invitation to transfer between committees for different offices. A committee for a specific office should remain in effect until need for that committee disappears. ADD: 2.070.130 A The sentence needs to be completed with the word"rent". A64� d I e 0 0 ,J 00 D PEW Sv nJ �s' D Ei%vt-0 Ro 17 c r 1./`t-zl port l�/ 'STY �yf�ll�'S i�/,v�liio a�L� ���pGti t7zg 5r�Ilo r/�a7� �/�%��n�tJ�� J`a�wT v �=r-n 2��� s�'�✓D.<�-1�—� /�si.�l=�J ,T,C a s:%J J-/� k?7?e k-1 007 "�u P o pc•�lI s� rS S/�cG. lDa�So nJ �1G'�S f on�iy/I�'� p �I !'o��T�t1Z /tT/Ord �c•' t y�T O v T ®�� v���Nc �--�A ono�.vr ' �,�T��A�rz��.� T// Qt llSypj S Jr�� �o .�•�iT�tg SUGG z.ST7�+' �s 1��: 1' . � 75 1�"ll/v �v 1 ps J� , ' 3r-� c f 'gr �s /G!>,o , a u (/l���r%ice C i SINC I D�L 'pr0SGN '�eA-, ,two rve e,/ T iS /L,196?�i�a' ��; r T'`7.!' /% opt � 7 . - L '`� G/N L•' fj,'�GLJ `iiPSl" "BR�+ T'' pro ' 29 </�. yL C^ Ei lj/�•/.yJ��, T� ��l.�i+�/mil Gam/ �i 2 . 0 7 a 7e OV 7ary c." s <G iFi�s /�� r �,���� A g-"t ZA, �r2rz_- r ff /�' 61 E"Ci z— wiT7f e y l0'�1�/T7Z-`r' 1'l�► �" SOt2//-mot o%��cc S�dc./> /� �LGS / �jj .Z~ /�?r�f �/ v�Lc-7✓� / �- /T /]� S/firdi-?r�a' /ll�T 6 to r.IW,7- Ski c' 7'hlwnG !/,,v •v I/ /19.d/ '1G 461,001-/'5 c o�147 C• _ MIS /S r-sSrr-r/07- cr 17�- zzz- 1-7 gEv�-' G� �—!/i c w�� GJ Y �' to v►✓T1' r�Iry S�'Z- O/�' !> Jy�_' i • �f --(1) The recall proponents fail to return signed petitions - to the City Clerk within the time limits set forth in the California Elections Code. (2 ) All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act. (3 ) Ten days after a recall election has been held. B. Contributions received by an elective City officer in opposi- tion to his or her own recall shall be deposited into a separate campaign committee established exclusively for receiving contribu- tions and making expenditures in opposition to his or her own recall. Funds remaining after the recall election ends in accordance with _Section 302A will be considered surplus funds and may not be trans- ferred into his or her other campaign committee for that City office. 303. ggregation of Contributions For purposes of the limitations in this Ordinance, the following shall apply: 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 sponsors ) of the committee and the combined amount shall not exceed the contribution limits specified in Section 300 within the applicable time periods as set forth in Section 301 and 302 of this Ordinance. B. Two or more entities shall be treated as one person when any of the following circumstances apply: ( 1 ) The entities share the majority of members of their Boards of Directors. (2) The entities share two or more officers. ( 3 ) The entities are owned or controlled by the same majority shareholder or shareholders. (4 ) The entities are in a parent-subsidiary relationship. C. An individual and any general or limited _partnership in which the individual has a 10% or more share, or an individual and any corporation in which the individual owns a controlling interest (50% or more) , shall be treated as one person. D. Contributions by a husband and wife, except as set forth in Section 300D, shall be aggregated unless a contribution comes exclusively from the separate property of one spouse. E. Contributions by children under eighteen years of age shall be treated as contributions by their parents. F. 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 -3- REQUT FOR CITY COON&` ACTION November 15, 1993 Date Submitted to: Honorable Mayor& City Council Members Tj Submitted by: Michael T. Uberuaga, City Administr Prepared b Patricia A. Dapkus, Management Assistant Subject: CAMPAIGN FINANCE ORDINANCE Consistent with Council Policy? [ ] Yes ( ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source,Alternative Actions, Attachments: Statement of Issue: The purpose of this Ordinance 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 Ordinance 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. Recommendation: Approve Ordinance a,O and thereby repeal existing Chapter 2.05 of the City of Huntington Beach Ordinance Code; and put into place a new chapter, Chapter 2.07, "Campaign Reform". Analysis: Under existing Chapter 2.05, guidelines were established with regard to campaign contributions. With the new Chapter 2.07, limitations on individuals and independent committees (PACS) remain at the levels established by 2.05. The new code then builds on these limitations by clarifying the definitions for the classification and by elaborating on their application including the following: 1. It defines and limits aggregate contributions. 2. It redefines an election cycle. 3. It provides greater clarity on recall campaigns. 4. It prohibits multiple campaign committees. 5. It provides that no funds may be transferred into any city candidate or elective city officer's campaign committee from any other campaign committee controlled by an elective city officer. P10 5/85 CAMPAIGN FINANARDINANCE PAGE 2 11/03/93 6. Nor may other city candidate or committee controlled by a city candidate or elective city officer make any contribution to any other city candidate running for office or to any committee supporting or opposing a city candidate for elective office or to any committee supporting or opposing a recall of an elective city officer with the exception that a city candidate may contribute from his/her own personal funds to their own candidacy or to the candidacy of any other. 7. It sets guideline for loans to candidates for city elective office. 8. It clarifies other related issues regarding the financing of a campaign for an city elective office. Finally, the new code provides more details regarding reporting contributions and penalties for violations of the code. Funding Source: N/A Alternative Actions: 1. Do not approve the attached Ordinance, and allow the existing code to remain in place. Attachments: 1. Ordinance repealing Chapter 2.05 of the city's Ordinance Code and adding new Chapter 2.07. 2. Existing Chapter 2.05. I/