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HomeMy WebLinkAbout87-48 - Amending Chapter 1.25 of the Newport Beach Municipal Code Pertaining to Municipal Election Campaign Contribution and Expenditure Control• is ORDINANCE NO. 87 -48 AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING CHAPTER 1.25 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO MUNICIPAL ELECTION CAMPAIGN CONTRIBUTION AND EXPENDITURE CONTROL. Section 1. Chapter 1.25 of the Newport Municipal Code is amended as follows: Sections: 1.25.010 Intent and Purpose 1.25.020 Definitions 1.25.030 Campaign Contributions - Limitations 1.25.040 Campaign Statement 1.25.050 Declaration in Lieu of Campaign Statement 1.25.060 Late Contribution 1.25.062 Penalties 1.25.063 Severability 1.25.010 Intent and Purpose. Beach The purpose of this Chapter is to prevent corruption, or the appearance of corruption, which results from the real or imagined influence of large contributions on the conduct or ac- tions of candidates elected to office. It is also the intent of the City Council that the limits on contributions to candidates and controlled committees imposed by this ordinance 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 persons who would otherwise contribute amounts greater than the limits imposed by the ordinance to expend such funds on direct political expression, rather than to reduce the total amount of money potentially available to promote such expression. This ordinance is enacted pursuant to Sections 5 and 7 of Article 11 of the Constitution of the State of California, Article 10 of the City Charter of the City of Newport Beach, and Section 22808 of the California Elections Code. In adopting this ordinance, the City Council finds that -1- Municipal Elections are municipal affairs and that there is no State law which preempts Charter cities from regulating contribu- tions in local elections. The City Council also finds that this ordinance supple- ments, and is not inconsistent with, the provisions of the Poli- tical Reform Act of 1974 as amended. 1.25.020 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 who receives a contribution or makes an expenditure or gives his or her consent for any other person to receive a contribution 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. "Candidate" also includes any officeholder who is the subject of a recall elec- tion. "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 combination 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 calendar year; or 3. Makes contributions totaling Five Hundred Dollars -2- ($500.00) or more in a calendar year to or at the behest of candidates or committees. . C. "Contribution" means a payment, a forgiveness 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 payment except to the extent that full and adequate consideration 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 simi- lar 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 ex- mittee without payment of full and adequate consideration. The term "contribution" further includes any transfer of anything of value received by a committee from another com- mittee, unless full and adequate consideration is received. The term "contribution" shall also include expenditures made by any person in cooperation, consultation or concert with or at the request or suggestion of, a candidate, the candidate's controlled 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 candidate's controlled committee or the can- didate'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 wilfully do any of the following: -3- tended on an equal basis to all candidates for the same office; 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 on behalf of a candidate or com- mittee without payment of full and adequate consideration. The term "contribution" further includes any transfer of anything of value received by a committee from another com- mittee, unless full and adequate consideration is received. The term "contribution" shall also include expenditures made by any person in cooperation, consultation or concert with or at the request or suggestion of, a candidate, the candidate's controlled 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 candidate's controlled committee or the can- didate'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 wilfully do any of the following: -3- 1. Share polling data or similar information 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 contribution. How- ever, 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 meet- ing 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 -4- 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 in- directly, repaid to him or her. 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 Newport Beach. F. "Late Contribution" means any contribution of $50.00 or more that is made to or received by a candidate, a controlled committee, or a committee before the date of the elec- • tion at which a candidate 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, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, committee, controlled committee, or any other organization or group of persons acting in concert. 1.25.030 Campaign Contributions - Limitations. A. CONTRIBUTIONS BY PERSONS TO CANDIDATES OR CONTROL COMMITTEES. No person shall make any contribution to a candidate and /or the candidate's controlled committees, with respect to any single election, which would cause the total amount contributed by such person to the candidate and the candidate's controlled • committees, when combined, to exceed Two Hundred Dollars ($200.00). B. ACCEPTANCE OR SOLICITATION BY CANDIDATES OR CONTROLLED COMMITTEES. No candidate or controlled committee -5- 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 can- didate's controlled committees, when combined, to exceed the sum of Two Hundred Dollars. ($200.00). C. CONTRIBUTIONS BY CANDIDATES. The provisions of subsections A and B shall not apply to contributions from a candidate to his or her controlled committee(s) nor to the expenditure, by the candidate, of his or her personal funds. D. CONTRIBUTIONS TO COMMITTEES. Contributions made to any person or a committee, and not to a candidate or controlled committee, shall not be considered as contributions to the can- didate or controlled committee notwithstanding the fact that such person or committee supports the candidate or uses the contribu- tion with a view to bringing about the nomination or election of the candidate. • E. ANONYMOUS CONTRIBUTIONS. No person shall make an anonymous contribution, or contributions, to a candidate, controlled committee, committee or any other person. Except as otherwise provided by State law, in the event an anonymous contribution is made in violation of this section, the contribution shall be promptly paid to the City of Newport Beach for deposit into the General Fund of the City, the monies to be used to defray the costs of Municipal elections. 1.25.040 Campaign Statement All candidates, committees, controlled committees, and persons shall file campaign statements in accordance with the provisions of the Political Reform Act of 1974, as amended. In addition to the disclosure requirements imposed by State law, • candidates, controlled committees and committees shall, on disclosure statements, file, pursuant this section, and provide the following information: A. If the cumulative amount of the contributions -6- received from any person is less than $50.00 the contributor's full name and street address shall be • provided in the disclosure statement; B. If the cumulative amount of the contributions received from any person is in excess of $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 employer, the date and amount of each contribution made during the period covered by the campaign statement, and the cumulative amount of contributions. 1.25.050 Declaration in Lieu of Campaign Statement A candidate need not file a campaign statement if such a statement would not be required under the provisions of the • Political Reform Act of 1974, as amended. 1.25.060 Late Contribution Any late contribution of $50.00 or more shall be reported by the filing, with the City Clerk within 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. Filing of a report of late contri- butions 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 section. 1.25.062 Penalties • A. Any person who knowingly and wilfully violates the provisions of Section 1.25.030 is guilty of a misdemeanor and may be punished by a fine of Five Hundred Dollars ($500.00) or six months in jail, or both. -7- B. In addition to the penalties provided in subpara- graph A if, after a candidate is elected, the candidate is con- 40 victed of a violation of the provisions of Section 1.25.030, the election to office of such candidate shall be void and the office shall become vacant as of the date of conviction or on the date upon which the candidate would otherwise take office whichever occurs later. In such event, the vacancy shall be filled in accordance with the provisions of 403 of the City Charter. If a candidate is convicted of a violation of Section 1.25.030 at any time prior to the election of the candidate, the candidacy shall be terminated immediately and the candidate shall no longer be eligible for election. 1.25.063 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 provisions of this ordinance are severable. • Section 2. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 14th day of December, 1987, and was adopted on the 11th day of janijPry , 1988 by the following vote, to wit; ATTEST: C. A lerk,- AYES, COUNCILMEMBERS Cox, Hart, Maurer, Plummer, Sansone, Strauss, Turner NOES, COUNCI "LMEMBERS ABSENT COUNCILMEMBERS