This chapter shall be known and may be cited as the "City of
Orange Campaign Reform Law."
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
The purposes of this chapter are: (1) to preserve the integrity
of the City's election process through public disclosure of contributions;
(2) to maintain public trust in City government and its elected officials;
(3) to encourage participation in City elections; (4) to ensure the
neutrality and appearance of neutrality by the City in elections;
(5) to prevent corruption or the appearance thereof that can be caused
by large contributions; and (6) to prevent evasion of contribution
limits by the funneling or laundering of contributions.
(Ord. 13-02; Ord. 8-07)
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 those set forth in the
Political Reform Act and as it may be amended from time to time.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
means any person who is an appointed member of a City board,
commission or committee.
means any person who is or was a candidate for Mayor, member
of the City Council, City Clerk or City Treasurer of the City of Orange.
means the controlled committee of a City candidate for the
office of Mayor, member of the City Council, City Clerk or City Treasurer
of the City of Orange.
means money, in kind services, goods, extensions of credit, certain loans or other things of value and as is further defined in the Political Reform Act of 1974 and Title 2, California Code of Regulations, Section 18530.7.
means any person who is Mayor, a member of the City Council,
City Clerk, or City Treasurer of the City of Orange, whether appointed
or elected.
(Ord. 18-92; Ord. 4-96; Ord. 8-07; Ord. 06-24, 4/9/2024)
A.
No person shall make, and no City candidate
or treasurer of a controlled committee of a City candidate shall solicit
or accept any contribution aggregating more than: (1) $1,500.00 per
mayoral election cycle; (2) $1,500.00 per City Council, City Clerk,
or City Treasurer election cycle; (3) $1,500.00 per recall election
cycle; or (4) $1,500.00 per special election cycle.
B.
The contribution limitations set forth in Section 2.10.050(A) shall also apply to any committee which is formed for the purpose of making expenditures in support of or opposition to the recall of an elective City officer, and to contributions received by such elective City officer, during a recall election cycle as defined in Section 2.10.070(C) of this chapter.
C.
The contribution limitations of this section
shall not apply to a City candidate's contribution of his or her separate
or community property funds to his or her own City Candidate Committee
or campaign. Contributions by a spouse from separate property shall
be subject to the limitations set forth in this section.
(Ord. 18-92; Ord. 4-96; Ord. 13-02; Ord. 8-07; Ord. 08-24, 5/28/2024)
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
Elective City Officer or to their committees shall be aggregated in
equal proportion with personal contributions made by the sponsor(s)
of the committee.
B.
Contributions
by committees or persons shall be aggregated whenever such committee
or person directs or controls the contribution either directly or
through an intermediary or other committee.
C.
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; and
5.
Any
business that is a sole proprietorship and the individual who is the
sole proprietor.
D.
Contributions
from business entities (partnerships, corporations, sole proprietorships,
etc.) shall be aggregated with contributions from individuals if such
individual owns a 50% or more share or interest in such business entity
or controls in any way a decision on whether the candidate receives
contributions from the business entity regardless of the percentage
of ownership. Any individual who falls within the application of this
subsection shall disclose to the City Candidate or his/her treasurer
at the time the contribution is made to the City Candidate, their
relative ownership interest in any business entity.
E.
No committee
that 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 that 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 such 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.
F.
Monetary
and non-monetary contributions as defined in this chapter shall be
aggregated.
G.
Contributions
by children under 18 years of age who are not emancipated, shall be
treated as contributions by their parent(s) or legal guardian(s) in
equal amounts, unless only one parent or guardian has legal custody
in which event such contribution shall be attributed solely to such
person.
(Ord. 18-92; Ord. 4-96; Ord. 14-01; Ord. 8-07)
A.
Mayor
Elections. For the purposes of this chapter, contributions made at
any time between January 1st following a mayoral election year to
December 31st of the next mayoral election year, shall be aggregated
in determining whether the contribution limits of this chapter have
been violated.
B.
City
Council, City Clerk and City Treasurer Elections. For the purposes
of this chapter, contributions made at any time between January 1st
following a City Council, City Clerk and/or City Treasurer election
year to December 31st of the next election year for each such office
shall be aggregated in determining whether the contribution limits
of this chapter have been violated.
C.
Recall
Elections. For the purposes of this chapter, 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.
D.
Special
Elections. For the purposes of this chapter, contributions made at
any time between the period commencing on the date the City Council
calls a special election for any City elected office and concluding
on the 60th day following the special election, shall be aggregated
in determining whether the contribution limits of this chapter have
been violated.
(Ord. 18-92; Ord. 4-96; Ord. 16-98; Ord. 8-07)
A City Candidate or an Elective City Officer shall have no more
than one City Candidate Committee for each elective City office that
shall have only one bank account out of which all qualified campaign
and office holder expenses related to that City office shall be paid.
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
or from transferring campaign funds into an interest bearing account
or other securities provided that all campaign expenses are paid from
the City Candidate Committee.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
A.
Contributions Transferred from Committees.
Contributions from candidate controlled committees to a City Candidate
Committee are permitted.
B.
Contributions Transferred Between Controlled
Committees by the Same City Candidate. If a City candidate has more
than one controlled committee, any transfers into the City candidate's
City Candidate Committee shall be governed by the following rules:
1.
Transferred contributions shall be deemed
contributed during the election cycle in which they are transferred
to the receiving City Candidate Committee.
2.
Transferred contributions shall be attributed
to each contributor on a last-in, first-out (LIFO) basis and shall
be aggregated with any contributions made by such contributor directly
to the City Candidate Committee in the same election cycle and shall
be subject to the contribution limits of this chapter. Transferred
contributions shall be itemized on Schedule A of Form 460 or any successor
form, and shall identify the transferor committee for those contributions
being transferred.
3.
A one-time transfer shall be made at the
time the City candidate forms his or her controlled committee. Subsequent
contributions received by the transferor committee on or after the
date the City candidate formed a committee to run for City office
may not be transferred to the transferee committee established for
that City office.
C.
No person or committee shall accept or
make any contribution that is conditioned upon all or part of the
contribution being transferred to a City Candidate Committee or otherwise
violates Government Code Section 84301. Any contributions received
in violation of this subsection shall be paid by the City candidate
to the City's general fund within 60 days of discovery of the violation.
(Ord. 18-92; Ord. 4-96; Ord. 8-07; Ord. 4-19, 2019; Ord. 09-24, 5/28/2024)
A.
The
provisions of Government Code Section 82048.4(c) are not incorporated
and shall not be used in the interpretation of this chapter.
B.
If a
slate mailer is not produced and/or distributed at the behest of a
City Candidate, then it is an independent expenditure and is not subject
to the contribution limitations of this chapter.
C.
The
following provisions shall apply only to slate mailers in which more
than 25% of the surface area of the slate mailer (exclusive of the
area used for address and postage) expressly advocates or opposes
the election of an individual City Candidate.
1.
If
a third party pays funds to the slate mailer organization that are
used for the production and/or distribution of a slate mailer (hereafter,
"slate mailer cost") at the behest of a City Candidate, then:
a.
The slate mailer cost is a contribution from the third party to the
City Candidate to the extent the attributable slate mailer cost exceeds
the amount paid by the City Candidate or the controlled committee
of the City Candidate, up to the total of the funds provided by the
third party and shall be subject to the contribution limitations of
this chapter.
b.
The attributable slate mailer cost that exceeds the total of the
funds paid by the third party and the City Candidate or the controlled
committee of the City Candidate is a contribution from the slate mailer
organization to the City Candidate and shall be subject to the contribution
limitations of this chapter.
2.
If
a slate mailer is produced or distributed without any contribution
from a third party, then the attributable slate mailer cost is a contribution
from the slate mailer organization to the City Candidate to the extent
the attributable slate mailer cost exceeds the amount paid to the
slate mailer organization by the City Candidate or the controlled
committee of the City Candidate and shall be subject to the contribution
limitations of this chapter.
3.
If
a slate mailer expressly opposes the election of a City Candidate,
and the slate mailer is produced and/or distributed at the behest
of an opposing City Candidate ("the opponent"), then:
a.
If a third party has paid the slate mailer organization to oppose
the City Candidate:
i.
The attributable slate mailer cost is a contribution from the third
party to the opponent to the extent it exceeds any payment to the
slate mailer organization from the opponent or the controlled committee
of the opponent up to the total amount paid to the slate mailer organization
by the third party to oppose the City Candidate and shall be subject
to the contribution limitations of this chapter; and
ii.
The attributable slate mailer cost that exceeds the total of the
funds paid by the third party to oppose the City Candidate and by
the opponent or the controlled committee of the opponent is a contribution
from the slate mailer organization to the opponent and subject to
the contribution limitations of this chapter.
b.
If no third party has paid the slate mailer organization to oppose
the City Candidate, then the attributable slate mailer cost is a contribution
from the slate mailer organization to the opponent to the extent the
attributable slate mailer cost exceeds the amount paid by the opponent
or the controlled committee of such opponent to the slate mailer organization
and is subject to the contribution limitations of this chapter.
D.
"Attributable
slate mailer cost" is computed by multiplying the total cost of production
and/or distribution of the slate mailer by a fraction, the numerator
of which is the number of square inches of the mailer that expressly
advocates or opposes the election of a City Candidate, and the denominator
of which is the number of square inches of the mailer devoted to all
candidates and/or measures.
E.
A slate
mailer is produced and/or distributed at the behest of a City Candidate:
1.
If
the City Candidate, or the City Candidate's controlled committee,
or the City Candidate's or committee's agent or consultant pays any
of the costs for the slate mailer, or provides any information or
photographs used in the mailer, or consults or confers with the slate
mailer organization in any manner regarding the content, timing, or
distribution of the slate mailer; or
2.
Under any of the circumstances described in Section 18225.7(a) and Section 18225.7(b) of Title 2 of the California Code of Regulations, as those sections exist as of June 1, 2002.
F.
A non-refundable
deposit made to a slate mailer organization shall not be considered
a payment within the meaning of subsections (E)(1) or (E)(2) above
if: (a) the deposit is made by, or on behalf of, a City Candidate
who is not opposed in the City election; or (b) the deposit is made
as consideration for an agreement whereby the slate mailer organization
obligates itself to not produce a slate mailer in which more than
25% of the surface area of the slate mailer (exclusive of the area
used for address and postage) expressly advocates or opposes the election
of the City Candidate by, or for whom, the deposit is made.
(Ord. 8-07)
A.
Loans.
1.
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.
2.
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. If the loan is from a City Candidate to his or
her City Candidate Committee, the City Candidate shall identify the
original source of the loan (i.e., personal funds, bank, credit card,
etc.).
3.
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.
4.
Notwithstanding
Section 2.10.110(A)(3), a City Candidate or Elective City Officer
shall not have a personal outstanding loan to his or her City Candidate
Committee which in the aggregate exceeds $100,000.00.
B.
Extensions of Credit. An extension of credit consists of a receipt of goods or services pursuant to an agreement between the provider of the goods and/or services and a City Candidate or City Candidate Committee and where payment is not made until a later date and as is more specifically defined in Title 2, California Code of Regulations Section 18530.7.
(Ord. 18-92; Ord. 4-96; Ord. 14-01; Ord. 8-07)
No appointed City official or City employee shall solicit, direct
or receive a contribution from any person, or his or her agent, who
has a proceeding involving legislative or administrative action pending
before such appointed City official or City employee or has had such
a matter pending during the preceding 12 months. This section does
not apply to an appointed City official or City employee who is a
City Candidate acting in furtherance of his or her own controlled
committee.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
No person shall receive, deliver or make a contribution or campaign
payment from any City property from which the business of the City
is conducted. This includes City Hall, the Senior Center, City fire
stations, police stations, libraries, community service building,
gymnasiums or any other City building that the City occupies as a
place for the conduct of City business. This does not include City
property that are traditional public forums, such as sidewalks, outdoor
areas of parks, streets, etc.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
No contribution cumulating $100.00 or more shall be accepted
by 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. Any contributions that are not disclosed in accordance
with this section shall be returned to the contributor immediately
or if the contributor cannot be ascertained, forfeited to the City's
general fund.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
Contributions received during an election cycle that are subject
to aggregation and result in a cumulative total of $100.00 or more
shall be itemized along with the cumulative total of such contributions
on campaign disclosure forms filed during the election cycle that
they are received.
(Ord. 4-96; Ord. 8-07)
Contributions which are in excess of the limitations imposed
by this chapter shall be returned to the contributor within seven
days of discovery. A written disclosure shall be filed with the City
Clerk within 72 hours of making the return, stating the contributor's
name, the date of return and the amount of the return. Excess contributions
not returned in accordance with this subsection shall be forfeited
to the City's general fund.
(Ord. 8-07)
Any person who violates any provision of this chapter or any
person who 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 is guilty of a misdemeanor. In addition
to any fines or imprisonment that may be imposed for a misdemeanor
conviction, any City candidate who is convicted of a misdemeanor shall
forfeit and be liable to the City's general fund for the value of
any contributions paid or received in violation of this chapter.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
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. Violations shall be punishable by a penalty of $1,000.00 and the value of any contributions paid or received in violation of this chapter shall be paid to the City's general fund, except as provided in subsections E and F below.
B.
If two
or more persons are responsible for any violation, they shall be jointly
and severally liable.
C.
Before
filing a civil action pursuant to this subdivision, persons other
than the City Attorney must 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. Within 30 days of receipt of the request, the City
Attorney 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 civil action or criminal charges
are brought 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.
E.
If a
judgment is entered against the defendant(s) 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 City's general
fund.
F.
The
term "City Attorney" as used in this section shall mean and refer
to the City Attorney, the District Attorney of Orange County, or such
other legal counsel as appointed by the City Attorney. If such a case
is referred and accepted by the District Attorney or other legal counsel,
any civil recovery pursuant to this section may be shared in such
manner as agreed by the City and such counsel.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
Pursuant to Government Code Section 91013 and this section,
the City Clerk may impose a penalty of $10.00 per day against any
City Candidate who files any campaign statement or amendment thereof,
report or other document required by this chapter or state law after
any deadline imposed by this chapter or state law. Amendments to campaign
statements shall be considered filed after the deadline if filed more
than 10 business days after a written or oral request by the City
Clerk. Late penalties shall be deposited into the City's general fund.
(Ord. 8-07)
Campaign funds may not be used to pay for fines and penalties
imposed pursuant to this chapter.
(Ord. 8-07)
Any person residing in the jurisdiction, including the City
Attorney, may sue for injunctive relief to enjoin violations or to
compel compliance with the provisions of this chapter.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
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.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
This chapter should be liberally construed to accomplish its
purposes.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
The City Council may review the contribution limitations contained
in this chapter at any time 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.
(Ord. 18-92; Ord. 4-96; Ord. 8-07)
