HomeMy WebLinkAboutOrdinance No. 3220 - Adopted 1/13/94 - Relating to Election PROOF OF PUBLICATION
STATE OF CALIFORNIA)
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County of Orange )
I am a Citizen of the United States and a Ka
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resident of the County aforesaid; I am
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over the age of eighteen years, and not a
party to or interested in the below OF N `� `
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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 �� ;
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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
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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 )
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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)
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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.
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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
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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.
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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".
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�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/