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Home My WebLink About1835 - Amending Section 1.25.020 of the Newport Beach Municipal Code by Adding Subsection (D) thereto Defining Political Action Committee and Adding Sections 1.25.065 Through 1.25.069 Regarding the Disqualification of City Council Members from Voting on MORDINANCE NO. 1 R:3 rj AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING SECTION 1.25.020 OF THE NEWPORT BEACH MUNICIPAL CODE BY ADDING SUBSECTION (D) THERr'.TO DEFINING POLITICAL ACTION COMMITTEE AND ADDING SECTIONS • 1.25.065 THROUGH 1.25.069 REGARDING THE DISQUALIFICATION OF CITY COUNCIL MEMBERS FROM VOTING ON MATTERS AFFECTING MAJOR CAMPAIGN CONTRIBUTORS AND MAKING . TECHNICAL AND CONFORMING CHANGES IN CONFORMANCE THEREWITH • WHEREAS, the City Council of the City of Newport Bo ach declares this ordinance to be necessary to ensure that th- decisions of the Newport Beach City Council are not unduly influenced by campaign contributors; and WHEREAS, to achieve this purpose this ordinance is designed to discourage those who do business with the Newport Beach City government from making large contributions, either directly or indirectly, to City Council election campaigns. This ordinance is also intended to broaden the base of City funding for City Council election campaigns by eliminating those who do business with the City as the prime source of campaign dollars;. and WHEREAS, it is the intent of City Council to control indirect contributions to political action committees by major campaign contributors through this ordinance; and WHEREAS, this ordinance is intended to supplement the Political Reform Act of 1974 and, unless otherwise defined in this ordinance, words and phrases shall have the same meaning hex:c as when they are used in Title 9 of the California Government Code, wherein the Political Reform Act of 1974 is codified, -1- • C: L] NOW, THEREFORE, the City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. Chapter 1.25 of the Newport Beach Municipal Code is hereby amended by adding Section 1.25.020(D) thereto defining "Political Action Committee" to read as follows: :r "1.25.020(D) POLITICAL ACTION COMMITTEE (PAC) means any person or combination of persons who directly or indirectly receives contributions or makes expenditures or contributions for the purpose.of influencing or attempting to influence the action's,of voters for or against the nomination or election of one or more City Council candidates, including any committee or sub- committee of a political party, whether national, state or local, if: ` (1) Contributions received total Two Hundred Dollars,($200.00) or more in a calendar year; or (2) Independent expenditures total Two Hundred Dollars ($200.00) or more in a calendar year; or SECTION 2. Section 1.25.065 is hereby added to the Newport Beach Municipal Code to read as follows: "1.25.065 Matters Affecting Major Campaign Contribu- tors, -- Prohibition. (A) No member of the City Council shall make, participate in making, or in any attempt to use his official position to bring about a favorable governmental decision in which he knows or has reason to know he has a financial interest. (B) A member of the City Council has a financial interest in a decision within the meaning of subsection (A) -2- • • if it is reasonably foreseeable that a favorable decision will have a positive material financial effect, distinguishable from its effect on the public generally, on a major campaign contributor of that member of the City Council. (C) A major campaign contributor of a member of the City Council, within the meaning of Subsection (B), is a person who has contributed more than Two Hundred Dollars ($200.00) in the aggregate with respect to a single election to that member of the City Council, to one or more controlled committees of that member of the City Council, or to one or more political action committees which has made expenditures attempting to influence favorably the nomination or election of that member of the City Council. (D) If a major campaign contributor is an officer or director of a corporation, except a non- salaried officer or director of a non - profit corporation, any such corporation shall also be deemed to be a major campaign contributor unless the officer or director files an affidavit with the City Clerk stating under penalty of perjury that the contributions were made entirely unrelated to the business or interests of the corporation. (E) If a major campaign contributor is a member of a parternship, the partnership shall also be deemed to be a major campaign contributor unless the partner files an affidavit with the City Clerk stating under penalty of perjury that the contributions were made entirely unrelated to the business or interests of the partnership. (F) If a major campaign contributor owns.a business entity, that business entity shall also be deemed =I: L7,A to be a major campaign contributor unless the major campaign contributor files an affidavit with the City Clerk stating under penalty of perjury that the contributions were made entirely unrelated to the business or interests of the business entity. A major campaign contributor owns a business entity for purposes of this section if he, his agents, spouse or dependent children hold more than fifty percent (50 %) of the ownership interest in the business entity. (G) A corporation, partnership or business entity shall be deemed to be a major campaign contribu- tor if the invidual contributions of directors and officers of a corporation or of members of a partner- ship, or of owners of a business entity, when combined, exceed Two Hundred Dollars ($200.00) with respect to a single election to any member of, the City Council or to one or more controlled committees of a member of the City Council, or to one or more political action committees which have made expenditures attempting to influence the nomination or election of that member of the City Council." SECTION 3. Section 1.25.066 is hereby added to the Newport Beach Municipal Code to read as follows: "1.25.066 Responsibility of Major Campaign Contribu- tors. Each'major campaign contributor shall file with the City Clerk within thirty (30) days of the date he becomes such, and maintain for so long as he is such, a list of all the corporations of which he is an officer or director and of all the partnerships of which he is a member and of all the business entities which he owns." SECTION 4. Section 1.25.067 is hereby added to the Newport Beach Municipal Code to read as follows: -4- Ll "1.25.067 Responsibility of the City Clerk. The City Clerk shall compile and maintain a list of major campaign contributors to each member of the City Council and to any controlled committee or committees of such members or to any political action committee or committees which has made expenditures attempting to influence favorably the nomination or election of that member of the City Council. This list shall be updated quarterly and a copy shall be posted on the City Clerk's public posting board." SECTION 5. Section 1.25.068 is hereby added to the Newport Beach Municipal Code to read as follows: "1.25.068 Required Participation. Section 1.25.065 does not prevent a member of the City Council from making or participating in the making of a governmental decision to the extent his participation is legally required for the action or decision to be made. The fact that a Council member's vote is needed to break a tie does not make his participation legally required for purposes of this section. ". SECTION 6. Section 1.25.069 is hereby added to the Newport Beach Municipal Code to read as follows: "1.25.069 Good Faith Reliance. A member of the City Council shall not be guilty of a violation of Section 1.25.065 if the member in good faith relies on the list compiled and maintained by the City Clerk pursuant to Section 1.25.067 in determining who the member's major campaign contributors are. SECTION 7. This ordinance shall be published once in the official newspaper of the City and the same shall be effective thirty (30) days after the date of its adoption -5- ( 1 0 This ordinance was introducted at a regular meeting of the City Council of the City of Newport Beach held on the 7th_ day of Janll= , 1980, and was adopted on the 11th day of February , 1980, by the following vote, to -wit: ATTEST: .. ity,Clerk RTIFIED AS, TIM CRIGWAL AN1D ,.CERTIFIED AS TO F0W CAi IJ. d .. FE 15 . � DATE ....._... _...........1..9..$O i ...:-.1..5..P.f.. .... ...... CITY CLERK OF THE C TY CF NE\A PC• T ACH AYES, COUNCILMEN Ryckoff, Williams Humrel, Strauss NOES, COUNCILMEN Hart, Heather, McInnis ABSENT COUNCILMEN none Mayor a= HRC /ap 1/2/80