The city council seeks to place realistic and Constitutionally
enforceable limits on the amount individuals may contribute to political
campaigns in municipal elections and to prevent corruption or the
exercise of improper influence, or its appearance, over elected officials
by contributors to political campaigns in municipal elections; and
to ensure that multiple contributions in excess of the contribution
limits do not originate from the same source of funds. To achieve
these purposes, this chapter imposes a maximum limitation on the amount
of campaign contributions to candidates and candidate-controlled committees
which may be given by and received from designated sources for an
election. This chapter is intended to supplement and in no way conflict
with the provisions of the Political Reform Act of 1974, as amended,
and in the event of a conflict between the Act and this chapter, the
Act shall prevail. Nothing in this chapter shall exempt any person
from applicable provisions of any other laws of the state or the city.
This chapter should be liberally construed to accomplish its purpose
and intent.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
means any individual who is a candidate for the city council,
elected city clerk or elected city treasurer of the city. "Candidate"
includes any individual who: (a) is listed on the ballot for election
to any elective city office; (b) is qualified to have write-in votes
on his or her behalf counted by election officials; (c) has begun
to circulate nominating petitions or authorized others to circulate
petitions on his/her behalf for nomination or election to any elective
city office; (d) who receives a contribution or makes an expenditure
or gives his/her consent for any other person to receive a contribution
or make an expenditure with the intent of bringing about his/her nomination
or election to any elective city office. "Candidate" also includes
any current holder of an elective city office otherwise meeting this
definition. An individual is a "candidate" whether or not the specific
elective city office for which the individual will seek nomination
or election is known at the time the contribution is received or the
expenditure is made, and whether or not the individual has announced
his or her candidacy or filed a declaration of candidacy at the time
the contribution is received or the expenditure is made.
means:
A payment, a gift, a forgiveness of a loan, a payment of a loan
by a third party, or an enforceable promise to make a payment except
to the extent that full and adequate consideration is received unless
it is clear from the surrounding circumstances that the contribution
is not made for political purposes;
An expenditure for political purposes made at the direction
or under the control of a candidate or controlled committee is a contribution
to the candidate unless full consideration is received for making
the expenditure. This includes: (1) the granting of discounts or rebates
to a candidate or controlled committee not extended to the public
generally or the granting of discounts or rebates by television or
radio stations and newspapers to a candidate not extended on an equal
basis to all candidates for the same office; and (2) the payment of
compensation by any person for the personal services or expenses of
any other person if such services are rendered or expenses incurred
at the direction or under the control of a candidate or controlled
committee without payment of full consideration.
Volunteer personal services or payments made by an individual
for his or her own travel expenses are not a "contribution" if such
payments are made voluntarily without any understanding or agreement
that they shall be, directly or indirectly, repaid to him or her.
means a committee which is controlled by a candidate, or
which acts in coordination with a candidate or controlled committee
in connection with the making of expenditures. A candidate controls
a committee or acts in coordination with a committee if the candidate,
his or her agent, or any other committee controlled by the candidate
has a significant influence on the actions or decisions of the committee.
means any general or special municipal election held in the
city.
means the offices of member of the city council, elected
city clerk and elected city treasurer.
means that special counsel appointed by the city manager, in consultation with the city attorney pursuant to Section 1.14.130.
means an expenditure made by any person in connection with
a political communication which is not made to or at the direction,
under the control of, or in coordination with a candidate or controlled
committee and which: (1) expressly advocates the election or defeat
of a clearly identified candidate, or the qualification, passage or
defeat of a clearly identified measure; or (2) taken as a whole and
in context, unambiguously urges a particular result in an election.
means any proposition for the issuance of funding or refunding
or bonds of the city, voter approval of local taxes or other revenue
matters, or any other question or proposition submitted to a popular
vote at any election by action of the city council, or which is circulated
for petition signatures and is intended to be qualified and submitted
to a popular vote at an election by initiative, referendum or recall
procedure, whether or not it qualifies for the ballot.
shall be as defined in Government Code Section 82047, as
it may be amended.
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Unless expressly defined in this chapter, or the contrary is
stated or clearly appears from the context, words and phrases in this
chapter shall have the same definition and meaning as when they are
used in the Political Reform Act of 1974 (California Government Code
Section 81000 et seq.), or in regulations adopted by the California
Fair Political Practices Commission to implement the Act, as the same
may be from time to time amended.
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(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
Beginning on January 1, 2024, no person shall make to any candidate
for elective city office or a controlled committee, and no candidate
or controlled committee shall solicit or accept from any person, a
contribution or contributions totaling more than five hundred twenty
dollars in any single election. Beginning on January 1, 2025, the
limitation established by this subdivision shall be adjusted on January
1 of each odd-numbered year to reflect changes in the Consumer Price
Index for the Los Angeles-Orange County Metropolitan Area, rounded
to the nearest ten dollars. The city clerk shall publish or post the
adjusted limit on January 1 or each odd-numbered year or as soon thereafter
as applicable Consumer Price Index data is available. No adjustment
shall apply to past elections.
(b)
The provisions of subsection (a) shall not apply to a candidate's contribution of his/her personal funds or loans made from a candidate to his or her own controlled committee in accordance with state law, or community property funds to his/her own controlled committee, but shall apply to separate property contributions from the candidate's spouse or domestic partner to his or her controlled committee.
(c)
A contribution shall not be considered to be received if it is not negotiated, deposited or utilized and, in addition, is returned to the donor within thirty days of receipt. Contributions in excess of the maximum amount provided in subsection (a) shall, within thirty days of receipt, be returned to the donor.
(d)
The provisions of subsection (a) shall not apply to contributions made to a committee or expenditures made by a committee which is organized solely for the purpose of supporting or opposing the qualification and/or passage of one or more measures.
(e)
The provisions of subsection (a) shall not apply to contributions made to a committee or expenditures made by a committee which is organized solely for the purpose of supporting or opposing the recall of an incumbent city elective officer.
(f)
The provisions of subsection (a) shall not apply to contributions made to a committee or expenditures made by a committee that makes an independent expenditure or independent expenditures in support of or in opposition to a measure, or in support of or opposition to the election of a candidate for an elective city office.
(Ord. 1281 § 1, 1994; Ord. 1412 §§ 1, 2, 2002; Ord. 1432 §§ 1, 2, 2003; Ord. 1484 §§ 1, 2, 2008; Ord. 1663 §§ 1, 2, 2021; Ord. 1698, 5/28/2024)
(a)
All contributions made by a sponsored committee and the committee's
sponsor or sponsors shall be treated as having been made by one person.
(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 governing boards; (2) the entities share two or
more officers; (3) the entities are owned or controlled by the same
majority shareholder or shareholders; or (4) the entities are in a
parent-subsidiary relationship.
(c)
An individual and any general or limited partnership in which
the individual has a ten percent or more interest, or an individual
and any corporation in which the individual owns a fifty percent or
more interest, shall each be treated as one person.
(d)
No committee which supports or opposes a candidate shall have
as its officers individuals who serve as the majority of officers
on any other committee which supports or opposes the same candidate.
No such committee shall act in concert with, or solicit or make contributions
on behalf of, any other committee. This subdivision shall not apply
to treasurers of committees if such treasurers do not participate
or control in any way a decision on whether candidates receive contributions.
(e)
With respect to family contributions, contributions by a husband
and wife or by domestic partners shall be treated as separate contributions
and shall not be aggregated. Contributions by children under eighteen
years of age shall be treated as contributions by their parents, custodians
or guardians and shall be attributed proportionately to each parent,
custodian or guardian.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
No funds may be transferred into any candidate's campaign
committee from any other campaign committee controlled by the candidate.
(b)
No candidate and no controlled committee shall make any contribution
to any other candidate or any controlled committee. This restriction
shall not apply to contributions from the personal funds of a candidate.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
Every loan to a candidate or his/her controlled committee shall
be by written agreement, which agreement shall be filed with the candidate's
or the committee's campaign statement on which the loan is first
reported.
(b)
The proceeds of a loan made to a candidate 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 candidate
or his/her controlled committee. The guarantor(s) of such a loan shall
remain subject to the contribution limitations of this chapter.
(c)
Extensions of credit, other than loans pursuant to subsection (b) of this section, for a period of more than thirty days are subject to the contribution limitations of this chapter.
(d)
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.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
Any funds, property, goods or services (other than voluntary,
noncompensated personal or professional services) received by a candidate
or a controlled committee which are used, or intended by the donor
or by the recipient to be used, for expenses (including legal expenses)
relating to holding or running for city elective office, shall be
considered campaign contributions and shall be subject to the contribution
limitations of this chapter.
(b)
This section shall not apply to government salary, stipends
or other funds received by an elective city officer as compensation
for his or her service to the city. This section also shall not apply
to reimbursement for reasonable travel expenses related to holding
public office.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
A candidate shall have no more than one controlled committee
which shall have only one bank account into which all campaign contributions
shall be deposited and from which all qualified campaign expenses
related to elective city offices shall be made.
(b)
This section shall not prevent a candidate from establishing
another controlled committee solely for the purpose of running for
a state, federal, local or other elective city office. This section
also shall not prevent an elective city officer from establishing
another controlled committee solely for the purpose of opposing his
or her own recall.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
Campaign funds acquired in one election may be used in future
city elections as provided in the Political Reform Act.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
No person shall receive or personally deliver or attempt to
personally 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, "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; and "receive" includes the receipt of a contribution delivered
in person.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
No campaign contribution required to be reported by the Political
Reform Act of 1974 (cumulative or otherwise) shall be deposited into
a campaign bank account of a candidate unless the disclosure information
required by the Political Reform Act of 1974 is included in the records
of the recipient of the contribution and reported as required by the
Political Reform Act of 1974.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
Any person who willfully violates any provision of this chapter
is guilty of a misdemeanor.
(b)
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 guilty of a misdemeanor.
(c)
No person convicted of a misdemeanor under this chapter shall
be a candidate for elective city office 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 not be deemed a conviction
for purposes of this subsection.
(d)
If a person is convicted of a violation of this chapter after
election, and is thereby made ineligible to hold public office under
the laws of this state, the vacancy thus created will be filled in
accordance with the procedures provided in the Government Code.
(e)
The district attorney of Orange County or the enforcement authority
may enforce the criminal provisions of this chapter. Criminal prosecutions
for violations of any provision of this chapter shall commence within
four years of the date on which the violation occurred or four years
from discovery of the violation.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
Any person who intentionally or negligently violates any provision
of this chapter may be liable in a civil action brought by the enforcement
authority for an amount not more than three times the amount the person
failed to report properly or unlawfully contributed, expended, gave
or received, or five thousand dollars per violation, whichever is
greater.
(b)
If two or more persons are adjudged to be responsible for any
violation, then such persons shall be jointly and severally liable.
(c)
In determining the amount of liability for a person or persons
adjudged to have violated any provision of this chapter, the court
may take into account the seriousness of the violation and the degree
of culpability of the defendant.
(d)
Any amounts recovered in a civil action by the enforcement authority
shall be deposited into the city's general fund.
(e)
The enforcement authority may sue for injunctive relief to enjoin
threatened violations of or to compel compliance with the provisions
of this chapter.
(f)
To the maximum extent of applicable law, the court shall have
the discretion to award litigation costs and expenses, including reasonable
attorneys' fees, to the prevailing party.
(g)
Civil actions for violations of any provision of this chapter
shall be commenced within four years of the date on which the violation
occurred or four years from discovery of the violation.
(Ord. 1281 § 1, 1994; Ord. 1698, 5/28/2024)
(a)
The city attorney must not investigate or prosecute any alleged
violation of this chapter, but will defend the constitutionality and
legality of this chapter in any civil proceeding in which the city
or the city council is a party.
(b)
Review of complaints of violation of this chapter and enforcement
thereof may be commenced only by the enforcement authority appointed
by the city manager. The enforcement authority is authorized to commence
and prosecute criminal or civil litigation to compel compliance with
this chapter or to enjoin conduct in violation of this chapter. Prior
to each election, the city manager, in consultation with the city
attorney, will appoint an enforcement authority for that election.
If the appointment of an additional enforcement authority becomes
necessary or appropriate, the city manager, in consultation with the
city attorney, will appoint such additional enforcement authority
as may be required. No enforcement or prosecution or action of the
enforcement authority is subject to the review or control of the city
council or the city attorney. The city council shall appropriate sufficient
funds from the city's treasury to retain the services of the
enforcement authority and to permit him/her to fully investigate any
alleged violations of this chapter and, if necessary, to take action
to enforce this chapter.
(c)
Any resident of the city who believes that a violation of this
chapter has occurred may file a written complaint requesting investigation
of such violation by the enforcement authority. The complainant shall
file the complaint with the city clerk under penalty of perjury and
include proof that the complainant is a resident of the city. Anonymous
or nonresident complaints will not be reviewed and/or investigated.
The complaint shall state a full recitation of all facts that are
alleged to constitute a violation of this chapter. If a complaint
does not comply with these requirements, the city clerk shall return
the complaint to the complainant, with an explanation as to why it
is insufficient for filing. Within five working days after accepting
the complaint for filing, the city clerk shall forward it to the enforcement
authority.
(d)
The enforcement authority shall, within thirty calendar days
of receiving the complaint, make a determination of whether there
is probable cause to believe that a violation occurred. If no probable
cause is determined to exist, the complaint shall be dismissed summarily
and interested parties shall be notified of the dismissal in writing.
(e)
If the enforcement authority determines there is probable cause
to believe that a violation of this chapter has occurred, the enforcement
authority may refer the matter to the district attorney for criminal
prosecution or may conduct an investigation and commence such administrative,
civil or criminal legal action as it deems necessary for the enforcement
of this chapter. No enforcement, prosecution or legal action by the
enforcement authority shall be subject to the review or control of
the city council or city attorney.
(f)
The enforcement authority shall not investigate or take any
further action regarding any alleged violation which has been referred
to the district attorney or which is already the subject of a complaint
filed with the Fair Political Practices Commission, until the investigation
of that complaint is complete.
(g)
The enforcement authority has such investigative powers as are
necessary for the performance of duties described in this chapter
and may demand and be furnished records of campaign contributions
and expenditures of any person or committee at any time. In the event
that production of such records is refused, the enforcement authority
may commence litigation to complete such production.
(h)
The enforcement authority is immune to liability for its enforcement
of this chapter.
(Ord. No. 1698, 5/28/2024)
