HomeMy WebLinkAbout2019-19 - Amending Chapter 1.25 of Title 1 of the Newport Beach Municipal Code Pertaining to Municipal Campaign Contribution and Expenditure LimitsORDINANCE NO. 2019-19
AN ORDINANCE OF THE CITY OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH, CALIFORNIA,
AMENDING CHAPTER 1.25 OF TITLE 1 OF THE
NEWPORT BEACH MUNICIPAL CODE PERTAINING TO
MUNICIPAL CAMPAIGN CONTRIBUTION AND
EXPENDITURE LIMITS
WHEREAS, on April 9, 2019, the City Council adopted Resolution No. 2019-33
forming an Ad Hoc Committee on Election Reform ("Committee") to determine whether
the provisions of the Newport Beach Municipal Code ("NBMC") should be modified or
updated;
WHEREAS, the Committee has recommended the City Council modify and
update Chapter 1.25 of Title 1 of the NBMC to clarify what constitutes a violation of the
campaign contribution limits; provide a process for handling excess contributions that
were inadvertently made by a person or received by a candidate or candidate controlled
committee; and provide a clear path for the enforcement of violations of the campaign
contribution ordinance; and
WHEREAS, the City Council has reviewed the proposed modifications to
Chapter 1.25 of Title 1 of the NBMC and has determined that these modifications are
consistent with the purpose and findings set forth in Section 1.25.010, Chapter 1.25 of
Title 1 of the NBMC.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Chapter 1.25 of Title 1 of the Newport Beach Municipal Code is
hereby amended to read as follows:
Chapter 1.25
MUNICIPAL ELECTION CAMPAIGN CONTRIBUTION AND EXPENDITURE
CONTROL*
Sections:
1.25.010 Purpose and Findings.
1.25.015 Intent.
1.25.020 Definitions.
Ordinance No. 2019-19
Page 2 of 7
1.25.030 Campaign Contributions—Limitations.
1.25.040 Enforcement and Penalties.
1.25.010 Purpose and Findings.
The City Council of the City of Newport Beach finds and declares as follows:
A. The primary purpose of the ordinances codified in 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 actions of candidates elected to office.
B. The limits on contributions to candidates and candidates' controlled committees
imposed by 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.
C. Contribution limits encourage persons to expend funds that would otherwise be
contributed to candidates on direct political expression which will broaden the
discussion and debate on issues of importance to the electorate.
D. These contribution limits will not reduce the total amount of money potentially
available, or used, to promote expression in the context of a political campaign, but will
increase the amount of independent expenditures and encourage the dissemination of
political expression through a wider variety of media sources.
E. Local campaign contribution limits are municipal affairs and this chapter is
authorized pursuant to the laws and Constitution of the State of California, as well as
the Charter of the City of Newport Beach.
F. The contribution limitations imposed by this chapter are consistent with the spirit,
intent and letter of the Political Reform Act of 1974 (Title 9 of the California Government
Code).
1.25.015 Intent.
The intent of this chapter is to impose limits on the amount of money that may be
contributed to a candidate or candidate's controlled committee to achieve the purposes
specified in Section 1.25.010. This chapter is not intended, and shall not be construed,
to establish any reporting, filing, or procedural requirement in addition to, or different
from, the Political Reform Act or the regulations adopted by the Fair Political Practices
Commission (FPPC).
Ordinance No. 2019-19
Page 3 of 7
1.25.020 Definitions.
The terms used in this chapter shall have the same definitions as specified in the
Political Reform Act and FPPC regulations. In those cases where definitions in the
Political Reform Act or FPPC regulations contain a specific reference to any State
election, candidate, or electoral criteria, the definition shall be modified to reflect the
municipal equivalent, or, in the absence of a municipal equivalent, to delete the specific
reference.
1.25.030 Campaign Contributions—Limitations.
A. Contributions by Persons to Candidate or Candidate's Controlled Committee. No
person shall knowingly and willfully contribute to a candidate and/or the candidate's
controlled committee, with respect to any single election, an amount that would cause
the total contributed by such person to the candidate and the candidate's controlled
committee, when combined, to exceed one thousand two hundred dollars ($1,200.00).
B. Acceptance or Solicitation by Candidate or Candidate's Controlled Committee.
No candidate or candidate's controlled committee shall knowingly and willfully 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 committee, when combined, to exceed the sum of one thousand
two hundred dollars ($1,200.00).
C. Adjustment for Cost of Living Changes. The campaign contribution limits and
contribution acceptance and solicitation limits set forth in subsections (A) and (B) shall
be adjusted in two-year intervals, beginning in 2021, by the City Clerk to reflect changes
in the Consumer Price Index for All Urban Consumers (CPI -U) in the selected local area
of Los Angeles -Long Beach -Anaheim, California. In June of each year there is to be an
adjustment, the City Clerk shall determine the new limit by comparing the last published
index number that is closest in time to the date the adjustment in limits is to be made,
and the corresponding index number for 2019. [(A)-B)/B*100=i, where A=Most recent
index, B=Corresponding index for 2019, i=Adjustment in percent]. Adjustments made
pursuant to this subsection shall be rounded to the nearest one hundred dollars
($100.00), shall be announced by the City Clerk in June of the year an adjustment is to
be made, and shall be effective July 1.
Ordinance No. 2019-19
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D. Demand for Return of Excess Contributions. It shall not be a violation of
subsection (A) if the person: (1) first became aware the person violated the limitations
set forth in subsection (A) when the person received a return of the excess
contribution(s) from the candidate or candidate's controlled committee; or (2) if the
person demands, in writing, a return of the portion of any contribution(s) donated in
excess of the limitations imposed by subsection (A) within fourteen (14) calendar days
from the date the City provides written notice to the person of the alleged violation of
subsection (A) or the date the person discovers that the person's contribution(s) exceed
the contribution limit set forth in subsection (A), whichever is sooner. A copy of the
written notification by the person demanding the return of the portion of any
contribution(s) donated in excess of the limitations imposed by subsection (A) shall be
provided via certified mail or courier delivery to the last known address of the candidate
or the candidate's controlled committee. If the excess contributions were not returned by
the candidate or candidate's controlled committee prior to sending the written demand,
the person shall provide the City Clerk with a copy of the written demand, and proof of
delivery thereof, within fourteen (14) calendar days of the date the demand is made.
E. Return of Excess Contributions. It shall not be a violation of subsection (B) if the
candidate or candidate's controlled committee returns the portion of any contribution(s)
donated in excess of the limitations imposed by subsection (B) within fourteen (14)
calendar days from the date the City provides written notice to the candidate or
candidate's controlled committee of the alleged violation of subsection (B) or the date
the candidate or candidate's controlled committee discovers that the contribution(s)
exceed the contribution limit set forth in subsection (B), whichever is sooner. If the City
notified the candidate or candidate's controlled committee that the contributions
exceeded the limitations imposed by subsection (B), written notification showing the
donor's name, the amount returned, and the date of the return shall be provided to the
City Clerk within fourteen (14) calendar days of the date of the return.
F. Contributions by Candidates. The provisions of subsections (A) and (B) of this
section shall not apply to contributions from a candidate to his or her controlled
committee nor to the expenditure, by the candidate, of his or her personal funds.
G. Contributions to Committees. Contributions made to any person or a committee,
and not to a candidate or candidate's controlled committee, shall not be considered as
contributions to the candidate or candidate's controlled committee notwithstanding the
fact that such person or committee supports the candidate or uses the contribution with
a view to bringing about the nomination or election of the candidate.
Ordinance No. 2019-19
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H. Anonymous Contributions. No candidate or candidate's controlled committee
shall knowingly and willfully accept anonymous contributions, with respect to any single
election, which would cause the total amount of anonymous contributions received by
the candidate and the candidate's controlled committee, when combined, to exceed one
hundred dollars ($100.00). Subject to the provisions of State law, it shall not be a
violation of this subsection if the candidate or candidate's controlled committee pays to
the City, for deposit into the general fund to be used to defray the costs of municipal
elections, the portion of any contributions accepted in excess of the limitations imposed
by this subsection within fourteen (14) calendar days from the date the City provides
written notice to the candidate or candidate's controlled committee of the alleged
violation of this subsection or within fourteen (14) calendar days of the date the
candidate or candidate's controlled committee discovers the contribution(s) exceed the
contribution limit set forth in this subsection, whichever is sooner.
I. Notice from the City. For purposes of this section, written notification by the City
shall be by certified mail to the person to be notified at the persons last known address.
Service by certified mail shall be deemed completed at the time of deposit with the post
office.
J. City Clerk. If the City Clerk has a good faith belief that a person, candidate, or
candidate's controlled committee has violated Section 1.25.030, the City Clerk shall
refer the matter to the District Attorney.
1.25.040 Enforcement and Penalties.
A. Any person who violates the provisions of Section 1.25.030 is guilty of a
misdemeanor.
B. In addition to any criminal penalty, if, after a candidate is elected, the candidate is
convicted of a misdemeanor for violating 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
Section 403 of the City Charter. If a candidate is convicted of a misdemeanor for
violating 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. A plea of nolo contendere shall be deemed a conviction for purposes of this
subsection.
Ordinance No. 2019-19
Page 6 of 7
C. For purposes of this chapter, the district attorney of the county is the civil and
criminal prosecutor. If after a candidate is convicted of a misdemeanor there is a need
to bring an enforcement action pursuant to subsection (B) and the district attorney of the
county refuses to bring the action, the City Council shall have authority to appoint a
special counsel to act as the civil prosecutor to enforce the civil penalties provided for in
subsection (B).
Section 2: The recitals provided in this ordinance are true and correct and are
incorporated herein by this reference.
Section 3: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 4: The City Council finds the introduction and adoption of this
ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
Section 5: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
Ordinance No. 2019-19
Page 7 of 7
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall be effective thirty
(30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 5th day of November, 2019, and adopted on the 19th day
of November, 2019, by the following vote, to -wit:
AYES: Mayor Dixon, Mayor Pro Tem O'Neill, Council Member Avery Council
Member Brenner, Council Member Duffield, Council Member Herdman
NAYS.-
ABSENT.-
AYS:
ABSENT: Council Member Muldoon
94_�_
DIANL B. DIXON, MAYO
APPROVED AS TO FORM: cgcr`�
CITY / TTORNEY'S OFFI E
r
AARON C. HARP, CITY ATTORNEY
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance
No. 2019-19 was duly introduced on the 51h day of November, 2019, at a regular meeting, and adopted by
the City Council at a regular meeting duly held on the 191h day of November, 2019, and that the same was
so passed and adopted by the following vote, to wit:
AYES: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman
NAYS: None
ABSENT: Council Member Kevin Muldoon
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 201h day of November, 2019.
Leilani I. Brown, MMC
City Clerk
City of Newport Beach, California
CERTIFICATE OF PUBLICATION
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that
Ordinance No. 2019-19 has been duly and regularly published according to law and the order of the City
Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation
on the following dates:
Introduced Ordinance: November 9, 2019
Adopted Ordinance: November 23, 2019
In witness whereof, I have hereunto subscribed my name this 9111hday of OR
2019.
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Leilani I. Brown, MMV
City Clerk
City of Newport Beach, California