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HomeMy WebLinkAboutRPT 6 CAMPAIGN REFORM 7-18-88FROM: $ UBJ F. CT: NONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL CITY ATTORNEY CAMPAIGN RP. FORM ORDINANCE Pursuant to the request of the City Council, please find enclosed a first draft of a proposed campaign reform ordinance patterned closely after the Ordinance of the City o£ Newport Beach, as requested by the Council. Several things should be noted about this proposed ordinance. 1. Section 1308 C provides that there is no limitation on how much a candidate can spend on a campaign from the candidate's own money. This is in accordance with a decision of the United States Supreme Court that no candidate can be prohibited from spending the candidate's ow~ money unless the limitation is part of a voluntary agreement to limit expenditures, conditioned upon public funding of campaign expenditures. Inasmuch as it is my understanding that the Council is not interested in considering public financing of political campaigns, it is not possible for the City to limit expenditure of a candidate's own funds. 2. There is no provision for expulsion from office, as contained in the Newport Beach ordinance. Newport Beach is a charter city and therefore has broader powers in some regards than a general law city like Tustin. It is even appears questionable to us whether the Newport Beach provision for expulsion is valid, but we are even more certain that such a provision would not stand up for a general law city so we have not included such a provision, jA JGR '. se .'D: 7/6/88 (8 97) Enclosure cc: WH 1 4 § 6 ? 8 9 10 11 12 15 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 ORDINANCE NO. 1011 AN ORDINANCE OP T~tE CITY COUNCIL OF THE CITY OF 'TUSTIN, CALIFORNIA, AMENDING AMENDING THE TUSTIN CITY CODE TO PROVIDE LIMITATIONS ON CITY COUNCIL CAMPAIGN CONTRIBUTIONS AND EXPRNDITUR~.S. The City Council of the City of Tustin does hereby ordain as follows: 1. Chapter 3 of the Tustin City Code, Sections 1306 et seq. are hereby added to read as follows: Section 1306. Intent and PurpQS~. The purpose of this Chapter is to prevent corruption, or the appearance of corruption, which results from the real or imagined in- fluence of large contributions on the conduct or actions of candidates elected to office. It is also the intent of the City Council that the limits on contributions to candidates and con- trolled committees imposed by the ordinance codified in this Chapter will encourage candidates and their supporters to raise funds from a greater number of persons than would otherwise involve themselves in the political process. It is also the intent of the City Council to encourage p.ersons who would otherwise contribute amounts greater than the limits imposed by the ordinance codified in this Chapter to expend such funds on direct political ex- pression, rather than to r-educe the total amount of money potentially available to promote such expression. The ordinance codified in this Chapter is enacted pursuant to Sections 5 and 7 of Article 11 of the Constitution of the State of California. The City Council also finds that the ord- inance codified in this Chapter supplements and is not in- consistent with the provisions of the Political Reform Act of 1974 as amended. Section 1307. Definitions. Unless the contrary is stated, or it clearly appears from the context, the definitions set forth in this section shall govern the interpretation of this Chapter. A. "Candidate" means an individual who is listed on the ballot or who has qualified to have write-in votes on his or her behalf counted by election officials, for nomination for or election to any elective office, or 1 2 4 5 6 ? 8 9 10 11 12 14 15 16 17 18 19 20 21 22 24 25 26 27 28 who receives a contribution or makes an expenditure or gives his or her consent for any other pekson to receive a contri- bution or make an expenditure with a view to bringing about his or her nomination or election to any elective office whether or not the specific elective office for which .he or she will seek nomination or election is known at the time the contribution is received or the expenditure is made and whether or not he or she has announced his or her candidacy or filed a declaration of candidacy at such time. "Candi- date" also includes any officeholdler who is the subject of a recall election. "Candidate" does not include any person within the meaning of Section 301(b) of the Federal Election Campaign Act of 1971. B. "Committee" means any person or combina- tion of persons who directly or indirectly: 1. Receives contributions totaling Five Hundred Dollars ($500.00) or more in a calendar year; or 2. Makes independent expenditures totaling Five Hundred Dollars ($500.00) or more in a calen- dar year; or 3. Makes contributions totaling Five Hundred Dollars ($500.00) or more in a calendar year to or at the behest of candidates or committees. c. "Contribution" means a payment, a for- giveness of a loan, a loan made without full and adequate security guaranteeing repayment thereof, payment of a loan by a third party, or an enforceable promise to make a pay- ment except to the extent that full and adequate considera- tion is received unless it is clear from the surrounding circumstances that it is not made for political purposes. The term "contribution" also includes the purchase of tickets for events such as dinners, luncheons, rallies and similar fundraising events; the granting of discounts or rebates not extended to the public generally or the granting of discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all candidates for the same office; the payment of compensa- tion by any person for the personal services or expenses of any other person if such services are rendered or expenses incurred on behalf of a candidate or committee without pay- ment of full and adequate consideration. The term "contribution" further includes any transfer of anything of value received by a committee from another committee, unless full and adequate consideration is received. The term "contribution" shall also include 9 10 11 12 14 15 16 17 18 19 20 21 22 25 24 25 . 26 27 28 expenditures made by any person in cooperation, consultation Or concert with or at .the request or suggestion of, a candi- date, the candidate's contr-oiled committees or their agents. The term "contribution" shall also include expenditures made on behalf of a candidate by a committee that has established a course of communication with the candidate, the candi- date's controlled committee or the candidate's agents. A Course of communication shall be presumed to exist if the candidate, controlled committee or the candidate's agents and the person or committee making the expenditure knowingly and willfully do any of the following: 1. Share polling data or similar in- formation establishing the preferences of, or the issues of importance to a substantial number of potential voters; 2. Share mailing lists containing a significant number of potential voters; 3. Jointly coordinate fundraising efforts, provided, however, the presence of a candidate at a fundraising meeting rally or event sponsored in whole or in part by any person or committee for the purpose of eliciting the candidate's views on issues shall not be considered as joint coordination of fundraising efforts; 4. Use a substantial number of common vendors that provide services relating to the preparation or dissemination of campaign literature such as speechwriters, publicists or professional campaign managers; or 5. Employ a person who is, or persons who are, employed by the other for political purposes during the course of the then current campaign. The term "contribution" does not include amounts received pursuant to an enforceable promise to the extent such amounts have been previously reported as a con- tribution. However, the fact that such amounts have been received shall be indicated in the appropriate campaign statement. The term "contribution" does not include a payment made by an occupant of a home or office for costs related to any meeting or fundraising event held in the occupant's home or office if the costs for the meeting or fundraising event are Five Hundred Dollars ($500.00) or less. Notwithstanding the foregoing definition of "contribution", the term does not include volunteer personal services or payments made by any individual for his or her own travel expenses if such payments are made voluntarily without any understanding or agreement that they shall be directly or indirectly repaid to him or her. 1 2 4 § 6 7 8 9 10 11 12 15 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 D. "Controlled Committee" means a committee which is controlled directly or indirectly by a candidate or which acts jointly with a candidate or controlled committee · "in connection with the making of expenditures. A'candidate controls a committee if he, his agent or any other committee he controls has a significant influence on the actions or decisions of the committee. E. "Elective Office" means the office of City Council of the City of Tustin. F. "Late Contribution" means any contri- bution of Fifty Dollars ($50.00) on more that is made to or received by a candidate, a cont:rolled committee, or a committee before the date of the election at which a candi- date or measure is to be voted on but after the closing date of the last campaign statement required to be filed before the election. G. "Person" means an individual, pro- prietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, committee, controlled committee, or any other organization or group of persons acting in concert. tions. Section 1308. Campaiqn Contr. i_b_u_tions; _Limita~ A. CONTRIBUTIONS BY PERSONS TO CANDIDATES OR CONTROLLED COMMITTEES. No person shall make any contribu- tion to a candidate and/or t'he candidate' s controlled committees, with respect to any single election., which would cause the total amount contributed by such person to ~he candidate and the candidate's controlled committees, when combined, to exceed One Hundred Dol~lars ($100.00). B. ACCEPTANCE OR S05ICITATION BY' CANDIDATES OR CONTROLLED COMMITTEES. No candidate or controlled committee shall solicit or accept any contribution from any person which would cause the. total amount contributed by such person with respect to any single election, to the candidate and the candidate's controlled committees, when combined, to exceed the sum of One Hundred Dollars ($100.00). C. CONTRIBUTIONS BY CANDIDATES. The pro- visions of subsections A and B shall not apply to contribu- tions from a candidate to his or her controlled committee(~) nor to the expenditure, by the candidate, of his or her personal funds. D. CONTRIBUTIONS TO COMMITTEES. Contribu- tions made to any person or a committee, and not to a candi- date or controlled committee, shall not be considered as contributions to the candidate or controlled committee not- 1 2 $ 4 § 8 10 11 12 14 15 15 17 18 20 21 23 24 25 27 28 withstand g the fact that such perso., or committee supports the candidate or uses the contribution with a view to bring- ing about the nomination or election of the candidate. E. . ANONYMOUS CONTRIBUTIONS. No-person shall make an anonymous contribution, or c · candidate: .controlled committee ^,' ~ ...... ontrlbution.~, to a as otherwise .p. rovided.b~ ,,~,_ ~ e.r per,on. Except ~ ~.~u= Law, in the event, an anonymous contribution is made in violation of this section, the contribution shall be promptly paid to the City of Tustin for deposit into the General Fund of the City, the monies to be used to defray costs of Municipal elections. Section 1309. Cam_~ai~n Statement All candi dates, committees, controlled committees, and Persons shall file campaign statements in accordance with the provisions of the Political Reform Act of 1974, an amended. In addi- tion to the disclosure requirements imposed by State ].aw, candidates, controlled committees and committees shall, on disclosure statements, file, pursuant to this section, and provide the following information: A. If the cumula.tive amount butions received from any person &s le of the contri- ($50.00) the contr:~-- , - ss than Fifty Dollars xuu=or s full shall be . . name and street address provided in the disclosure statement. B. If the cumulative amount of the contri- butions received from any person is in excess of Fifty Dollars ($50.00) the campaign statement shall disclose the date and amount of each contribution made during the period Covered by this statement and the contributor,s full name, .street address, occupation, the name of the contributor,s ~mployer, the date and amount of each contribution made during the period covered by the campaign statement, and the cumulative amount of contributions. Section 1310. _De_~cl_a.ratto_n i~n _L_/e__qu of CamDa~iln S--tatemen~. A candidate need not file a campaign statement if such a statement would not be required under the pro- visions of the Political Reform Act of 1974, as amended. Section 1311. La_~te 99~ntributio_n' Any late con- tribution of Fifty Dollars ($50.00) or more shall be report- ed by the filing, with the City Clerk within forty-eight (48) hours of its receipt, the full name, street address, occupation, name of employer, if any, or the principal place of business if self employed, of the contributor. Piling of a report of late contributions may be by any written means of communication, including but not limited to, telegram or letter. Late contributions shall be reported on subsequent campaign statements as required by the Political Reform Act of 1974, as amended and without regard to reports filed pursuant to this sec_rich. 1 $ 4 5 ? 8 9 10 11 12 15 14 .15 17 18 19 20 21 24 Z8 Section 131'2. Penaltie.s. Any person who know- ingly and willfully violates the provisions 0f. Section 1306 is guilty of a misdemeanor and may be punished by a fine of Ptve Hundred Dollars ($500.00) or six months in jail, or both. Section 1313. Severability. If any provision of this ordinance, or the application of such provision to any person or circumstances, .shall be held invalid, the remainder of this ordinance to the extent it can be given effect, or the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, and to this end the pro- visions of this ordinance are severable. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the day of , 1988. ATTEST: MAYOR CITY CLERK JGR: se .-D: 07/06/88 (896)