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HomeMy WebLinkAbout2007/08/14 Item 16 ~?:::. CITY OF ~-= (HULA VISTA AUGUST 14,2007, Itemk SUBMITTED BY: REVIEWED BY: ORDINANCE REPEALING CHAPTER 2.52 OF THE CHULA VISTA MUNICIPAL CODE IN ITS ENTIRETY AND AMENDING THE MUNICIPAL CODE TO ADD A REVISED CHAPTER 2.52, ENTITLED "CAMP AIGN CONTRIBUTIONS" CITY ATTORNEY ~ CITY ATTORNEY ITEM TITLE: 4/5THS VOTE: YES D NO 0 BACKGROUND On March 20,2007, the City Council voted to form an ad hoc committee [Committee] to review the campaign contribution ordinance. The Council determined that the Committee should be composed of one member each from the previous ad hoc committee on campaign finance, the Charter Review Commission, and the Board of Ethics. The Council directed the Committee to review implementation of the ordinance, which was previously amended in 2004. Councilmember Ramirez stated he wanted to limit discussions on increasing campaign contribution limits, allowing others besides individuals to contribute to candidates, or on anything else that would expand the ordinance. ENVIRONMENTAL REVIEW The proposed ordinance involves an activity that is not a "project" as defined under section 15378(a) of the State California Environmental Quality Act guidelines because it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment; therefore, pursuant to section 15060 (c)(3) of the State CEQA guidelines the activity is not subject to CEQA. RECOMMENDATION That the City Council hold the first reading of the ordinance. DISCUSSION The Committee was formed with former Councilmember John Moot, who served on the prior campaign finance committee, serving as the Chair. Also on the Committee were Michael German from the Board of Ethics and Humberto Peraza from the Charter Review Commission. City staff members assisting with the work were City Clerk Susan Bigelow, Assistant City Clerk Donna Norris, Deputy City Attorney Joan Dawson, and 16-1 AUGUST 14,2007, Itemk Page20f2 Legal Assistant Cheryl Ponds. The Committee met on May 16, 2007, May 25, 2007, June 21, 2007, and July 27, 2007. The Committee now comes to City Council with proposed amendments to the ordinance. The Committee followed the Council's direction and looked at implementation of the ordinance and made appropriate changes to clarify provisions. The substantive, proposed changes are as follows: 1) The definition of surplus campaign funds was modified so that campaign funds become surplus after an election in which a candidate is defeated or elected. They no longer carry over for the full term of a candidate who is elected. The use of surplus campaign funds is limited, as defined in the ordinance. 2) Surplus campaign funds can no longer be used to repay personal loans or contributions. 3) The loan limitation of $20,000 was eliminated because it was confusing and often ignored. 4) Personal loans and personal contributions are now treated the same. If someone uses personal funds or loans himself or herself more than $20,000, there are notice requirements, and his or her opponents may lift the $300 contribution limit until the opponent raises enough money to equal the amount of personal funds over $20,000. In other words, Candidate A loans himself $30,000. Candidate B, his opponent, can collect contributions in excess of $300 from contributors until Candidate Braises $10,000. 5) The ordinance provides for an implementation date and grace period to allow already declared candidates to repay any personal loans they have made with the thought they would be able to repay the loans after the upcoming (next year's) election. Committee Chair John Moot prepared a memorandum to the Council regarding the work of the Committee, which is attached to this Agenda Statement and incorporated by reference, herein. The Committee is recommending that the Council direct the Committee to continue to meet to address other issues, not raised by the Council in the direction provided by the Council to the Committee on March 20, 2007. DECISION MAKER CONFLICT The ordinance is not site specific; therefore no conflict exists pursuant to California Code of Regulations section 18704.2(a)(I). FISCAL IMPACT None. ATTACHMENTS Attachment A is a letter from Committee Chair John Moot to the City Council regarding the work of the Committee. Prepared by: Joan Dawson. Deputy City Attorney, City Attorney's Office 16-2 08~03-2007 10:59 From- 7-289 P,OOI/003 F-352 m WERTZ McDADE WALLACE MOOTfBROWER -.. -- --. .-...... .--- .-------. ..-. -. -- .. -..- LAwynre; ,A PROrESSIONAL COI(I'ORATION I FACSIMILE TRANSMITTAL August 3, 2007 TO: NAME/COMPANY TELEPHONE FACSIMILE Cheryl Ponds 409-5823 Chula Vista City Attorney FROM: BE: DOCUMENTS: PAGES: John S. Moot Ad Hoc Committee Report Memorandum _ (inclLlding cover page) If you do not receive all pages, please call (619) 233.1888 MESSAGE: co~r:lceNTIALITY NOTICE THE INFORMATION CONTAINED IN THIS F~X MFSS.^.CiO, AND ANY Fil-JO(S) TAANSMITTi:O WITH IT, IS INTENDJOO ONL-Y FOR THE PERSONAL AND CONFIDENTIAL- USE OF THe DESIGNATeD RJ;CIPIENT(S) NAMeD ABOVE. THIS FAX MESSAGE IS A COMMUNICATION FROM WERTZ MCOAOE WAI.LACE MOOT & BROWER, APC OR ITS AGENTS THAT MAY RELATE TO PENDING I.EGAI. MATTERS ANO, AS SUCH, MAY BE PRIVILEGED AND CONFIDENTIAL. IF TliE READER OF THIS FAX MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGi:NT RESPONSI8LE FOR OELM:RING IT TO THe INTENDeD RECIPIENT, YOU ARE HEREBY NOTIFIED THAT YOU HAVE RECEIveD THIS DOCUMENT.IN ERROR, AND TliAT ANY REVIEW, DISSEMINATION, DISTRIBUTION OR COPYING OF TliIS FAX MESSAGE IS STRICTLY PROHIBfTED. 94!1 f:o\lrth Averme, S.:m Diego, CrlHfOt'tlia 92'101 'I'elCpJ10l>< 619-2.,3-'1688' Facsimile 5]9..6%-9476. www.wcrtzmcdaJe.conl 16-3 _ EXH. A 08-03-2007 10:59 Frcm- T-259 P.002/003 F-352 I m WERTZ MCDADE WALLACE MOOT I BROWER L,\1N\'t;'1~3 j ^ PROP2SS10NAL (~\.'IU'()I~Al'H.)~ MEMORANDUM VIA EMAlL: smm'shal1~ci ,chula-vista.ca.l.lS i dawson@ci.chula-vista.ca.us cpound,@ci.chula-vista,ca,us TO, Honorable Mayor Cheryl Cox and Members of the City of Chula Vista City Council FROM: Jolm S, Moot. Chairman DATE: August 1,2007 Campaign Contribution Ordinance Ad Hoc Committee RE: On March 20, 2007, by Council action, an ad hoc committee was formed to review Chula Vista's Campaign Contribution Ordinance, Cerrain boundaries were added to the ad hoc committee's review which was to "focus on the implementation of the ordinance and limit discussions on increasing campaign contributions limits, allowing others besides individuals to contribute to the candidates, or on anything else that would expand the ordinatlce." With these parameters, the ad hoc committee has met and finished its proposed revisions to the Campaign Contribution Ordinance. A staff report has been prepared which highlights the recommended changes tmanimous])' agreed on by the ad hoc committee, Understanding the boundaries and parameters placed on the ad hoc committee's work. we did not address issues which came up during the ad hoc committee's discussions as well as Issues raised by members of the public who attended OUl' meetings which did not fall within the parameters of our assignment. For example, the CLlrrent ordinance does not address the repayment of debt and/or the role of or any limitations to be placed on independent expenditures which are issues which other ordinances like tho City of San Diego's do address. All membm of the ad hoc committee indicated their willingness to look aI, examine, and make recommendations on these issues or other revisions to the ordinance should the Mayor and City Council so desire. (186197v11S71 ].002] 16-4 EXH.A 08-03-2007 10:59 From- 1-289 P.003/003 F-352 Memorandum Honorable Mayor Cheryl Cox and Members of the City of Chula V ista City Council August I, 2007 Page 2 Additionally, it became clear in our work that the ordinance having the force of la w had to be as precise as possible in its language and legal precision in its wOrding was therefore a necessary requJrement. As such, an average person running for office may, no matter how clearly wriUen, still have questi ons regarding what the ordinance says or means. One of tl1e recommendatiollS of the ad hoc committee which we felt were not within our current assignment was to create a booklet of commonly asked questions and answers which could be llsed by candidates in an effort to avoid them having to seek the advice and expense of an attorney, at least to those issues which seem to be commonly asked fot which an example or commOn explanation is appropriate. The ad hoc comminee agreed that it wotJld assist the City Clerk and the City Attorney in the preparation of such a booklet should the Mayor and City Council feel that this would be useful, The only recommended change which might arguably fa]] into the category of "increasing campaign contribution limits" or "exp!l1lding the ordinance" is Section 2.52,110 which combines two sections of the former ordinance and is now entitled Personal Funds and Personal Loans; NOlice; and, Suspension of Limits, The ad hoc committee, with input from two members of the public who attended these meetings, debated the pros and cons of which of the monetary limits to apply from the current ordinance which deals with personal loans and personal funds differently. The ad hoc committee ultimately agreed on the $20,000 figure in the current ordinance being proposed after considering a variety of factors including the abillty of the nou-incwnbent to contributelloan themselves enough money to star! up a viable campaign. From our own discussions, the ad hoc committee acknowledges that there are pros and COns to adopting a lower limit or a number in between the two in the current version of the ordinance. TIle ad hoc corumittee did feel that having different limits for personal funds and personalloillls WllS awkward and this section of the ordiuance as redrafted now treats personal funds and persona! IOal1s identically. Members of the ad hoc committee will make every effort to be available at the time this matter comes before the Council to answer any questions that the members of the City Council may have, [I '61 57vl/57.1.002) 16-5 EXH.A. ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHAPTER 2.52 OF THE CHULA VISTA MUNICIPAL CODE IN ITS ENTIRETY AND AMENDING THE MUNICIPAL CODE TO ADD A REVISED CHAPTER 2.52, ENTITLED "CAMPAIGN CONTRIBUTIONS" WHEREAS, the City of Chula Vista, pursuant to the police powers delegated to it by the California Constitution and as a charter city, has the authority to enact laws that promote the public health, safety, and general welfare of its residents; and WHEREAS, the City Council of the City of Chula Vista has the authority to regulate aspects of campaign finance and control related to the election of City officials; which is a matter of the general welfare ofChula Vista residents; and WHEREAS, Charter Section 904 provides that it is the policy of the City to avoid the potential for undue or improper influence over elected officials resulting from excessive campaign contributions. In furtherance of that purpose, the City Council shall adopt reasonable regulations related to campaign contributions which shall be contained in the City Code; and WHEREAS, on March 20, 2007, the City Council voted to form an Ad Hoc Committee on the Campaign Contribution Ordinance to review the existing law and ensure it is meeting the needs of the people of Chula Vista and to bring forward suggestions regarding proposed changes as needed; and WHEREAS, the City Council requested that the Ad Hoc Committee be composed of a member of the City's Charter Review Commission and Board of Ethics, and a member who sat on the City's previous committee on campaign finance, which was formed in June 2003; and J:\AtlomeyIJDA WSQNIOrdinanceslCampaign FinanceI08.Q9-07 (clean copy or reo.l~e~~ 6 Ordinance No. WHEREAS, the current Ad Hoc Committee is composed of Humberto Peraza of the Charter Review Commission; Michael German of the Board of Ethics; and John Moot, a former City Councilmember and member of the previous campaign finance committee; and WHEREAS, the current Ad Hoc Committee on the Campaign Contribution Ordinance has prepared an ordinance for presentation to the Council. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain: SECTION I: Chula Vista Municipal Code Chapter 2.52 is repealed in its entirety. SECTION II: The Chula Vista Municipal Code is amended to add a revised Chapter 2.52, entitled "Campaign Contributions," to read as follows: Sections: 2.52.010 Purpose and intent. In enacting this chapter, the City Council finds and declares that moderate monetary contributions to political campaigns are a legitimate form of participation in the American political process. It is the policy of this City to protect the integrity of the electoral process, and the best interests of the citizens of this City are served by regulating campaign finance. Inherent in the high cost of election campmgnmg is the problem of improper influence, real or potential, exercised by campaign contributors over elected officials. It is the purpose and intent ofthe City Council in enacting this chapter: A. To preserve an orderly political forum in which individuals may express themselves effectively; Pa'5f6-- at 16 Ordinance No. B. To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections; C. To prohibit contributions by organizations and permit contributions by individuals only; D . To provide full and fair enforcement of all the provisions of this chapter; and E. To encourage candidate adherence to election regulations by making the regulations easier to understand. 2.52.020 Interpretation and effective date ofthis chapter. A. The terms and phrases in this chapter shall be defined as those terms and phrases are defined in the Political Reform Act of 1974, as amended (Government Code, Section 81000 et seq.), and in the regulations adopted by the Fair Political Practices Commission, unless otherwise specified in this chapter. B. This chapter takes effect on October 11, 2007, and is applicable to all candidates seeking City elective office in the general election of June 2008 and any election thereafter. Any candidate for City elective office participating in the general election of June 2008 or any election thereafter shall have a grace period of 60 days from the effective date of this chapter to repay any campaign contributions made or received prior to the effective date of this chapter in conflict with or in violation of any provisions ofthis chapter. A candidate repaying any campaign contributions or loans during this 60- day grace period shall provide written notice to the City Clerk of the repayment within three business days of the repayment. Ordinance No. 2.52.030 Definitions. A. "Agent" means a person who acts on behalf or at the behest of any other person or accepts a contribution on behalf of a candidate. If an individual acting as an agent is also acting as an employee or member of a law, architectural, contracting, construction, engineering, or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual are "agents." B. "At the behest" means made under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express prior consent of. C. "Campaign contribution account" is that account in which all contributions or loans made to the candidate shall be deposited, as required by Government Code section 85201. D. "Candidate" means any individual seeking any City elective office, the candidate's campaign committee, committee(s) controlled by the candidate, agents of the candidate. "Candidate" includes any individual in a City elective office, who becomes the subject of a recall election, on the earlier of the date a notice of intention to circulate a recall petition is published or the date a statement of organization for a committee to recall the elective officer is filed with the City Clerk or the Secretary of State pursuant to state and local law. E. "City campaign statement" means the statement, which, to the extent practicable, shall be similar to or consolidated with that required by state law. Pa!lf6~ <gf 16 Ordinance No. F. "City elective office" means an office held by the Mayor or a member of the City Council. G. "Contribution" is defined in a manner identical with the definition found in Government Code section 82015 and any related provisions in the California Code of Regulations. H. "Enforcement authority," under this chapter, means that special counsel appointed by the City Council pursuant to CYMC 2.52.170, without limiting the authority ofthe District Attorney, Attorney General, Fair Political Practices Commission, or other prosecutorial authority under any applicable provision of state or federal law. I. "General election" is that election identified by Charter Section 900, which is combined with the California State primary election. J. "Organization" means a proprietorship, labor union, firm, partnership, joint venture, syndicate, business, trust, company, corporation, association, or committee, including a political action committee. K. "Person" means a natural individual. 1. "Single election contest" means either a general or special election. M. "Special election," defined in Charter Section 901, means a municipal election other than a general election that may be held by authority of the Charter or of any law. 2.52.040 Campaign contribution limits. A. No person, other than a candidate, shall make a contribution in excess of $300 to a candidate for a single election contest. No candidate shall solicit or accept a PaT~~ ~b16 Ordinance No. contribution in excess of $300 from a contributor for a single election contest. This limit on contributions may be suspended only on the conditions set forth in CYMC 2.52.100. B. The terms of this chapter are applicable to any contributions made to a candidate, whether used by the candidate to finance a current campaign or to pay debts incurred in prior campaigns. C. No person shall make a contribution to any candidate, and no candidate shall accept from any person such a contribution earlier than eleven (II) months preceding a single election contest. D. A contribution for an election may be accepted by a candidate after the date of the election only to the extent that the contribution does not exceed net debts outstanding from the election, and the contribution does not otherwise exceed the applicable contribution limit for that election. E. A candidate may not solicit or accept contributions for a special election prior to the holding of the general election for that office. A candidate may carry over contributions raised in connection with a general election for a specific elective City office to pay campaign expenditures incurred in connection with a subsequent special election for the same elective City office. F. No person shall knowingly make or accept a contribution, or counsel, aid, abet, advise, or participate with another to make or accept a contribution in violation of any provisions of this chapter. Any person who violates any provision of this chapter shall be guilty of a misdemeanor, and shall be subject to the penalties set forth in CYMC 2.52.180 and other applicable laws. Paf%~~116 Ordinance No. 2.52.050 Surplus campaign funds. A. Campaign funds under the control of a candidate following the certification of election results by the County Registrar of Voters for a single election contest in which the candidate is either defeated or elected to a specific City elective office shall be considered surplus campaign funds. B. Surplus campaign funds shall be used only for the following purposes: I. To repay a loan or loans made to a candidate for the purpose of a campaign for a City elective office by a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personally liable. 2. To make a donation to any bona fide charitable, educational, CIVIC, religious, or nonprofit organization, where no substantial part of the proceeds will have a material financial effect on or benefit to the candidate, any member of his or her immediate family, or his or her campaign treasurer. 3. To pay for campaign-related goods and/or services reasonably incurred by the candidate during the preceding campaign for a specific elective office; such goods and/or services may include those incurred by a candidate participating in a special election, following a general election, as provided in CVMC 2.52.040(D). 4. To pay for professional services reasonably incurred by the candidate to assist in the performance of administrative functions related to the preceding campaign for a specific elective office, including payment of attorney's fees for litigation that arises directly out of a candidate's activities or his or her status as a candidate, including, but Ordinance No. not limited to, an action to enjoin defamation, defense of an action brought of a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount. C. Surplus campaign funds shall not be used to repay any personal loans. D. Surplus campaign funds shall not be carried over for use by a candidate in any subsequent election following a single election contest in which the candidate is either defeated or elected to a specific City elective office. 2.52.060 Organizational contributions. A. No organization or entity shall make a contribution to any candidate. B. No officer, employee, agent, attorney or other representative of a person covered by this chapter shall aid, abet, advise or participate in a violation of this chapter. All contributions made by a person whose contribution activity is financed, maintained or controlled by an organization or any other person shall be deemed to be made by that organization or other person. Any contribution made by an organization is prohibited. 2.52.070 Return of prohibited contributions. A. If a contribution is tendered and would be in violation of this chapter, it shall be returned by a candidate to a contributor within three business days of discovery of receipt of the contribution by the candidate, or his or her representative, or after notification by a contributor, whichever occurs first. The candidate shall also report in writing to the City Clerk within three business days of discovery the facts surrounding the contribution, and the City Clerk shall retain the report in the candidate's file for that campaign reporting period. Paf%~f~16 Ordinance No. B. A contribution shall not be considered to be received if it has not been negotiated, deposited, or utilized, and is returned by the candidate within three business days of discovery of receipt. 2.52.080 Written solicitations by candidates. Any candidate making a written solicitation for a contribution for his or her campaign shall include the following written notice in no less than six point type on each such solicitation: NOTICE The Chula Vista Municipal Code limits contributions to campaigns for City elective office to $300 per person. 2.52.090 Loans. A loan or extension of credit shall be considered a contribution from the maker of the loan or extender of credit and shall be subject to the contribution limitation of $300, as provided in this chapter. This contribution limit does not apply to loans made to a candidate for the purpose of a campaign by a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personally liable. 2.52.100 Personal funds and personal loans; notice, suspension oflimits. A. No candidate shall expend, contribute, or loan himself or herself more than $20,000 for a single election contest unless and until the following conditions are met: 1. Written notice of the candidate's intent to personally expend. contribute, or loan himself or herself in excess of $20,000 shall be provided to the City Clerk and all opponent candidates. The notice shall be delivered personally or sent by registered mail Pafg2f416 Ordinance No. to the last known address of the opponent candidates as shown in the records of the City Clerk and shall specify the amount intended to be personally expended, contributed, or personally loaned. The notice shall also provide the date the personal funds or personal loan shall be deposited into the candidate's campaign contribution account, as required by CYMC 2.52.l00(A)(3). 2. The required notice shall be given no later than 21 days prior to the election, unless the expenditure, contribution, or loan occurs during the 21 days preceding the election in which case the required notice shall be provided within 24 hours. 3. All personal funds, including personal loans of $1,000 or more to be expended or contributed by the candidate, shall first be deposited in the candidate's campaign contribution account. B. Each opponent of a candidate who has received notice of the candidate's use of personal funds, including personal loans, either through the requirements of CYMC 2.52.100(A) or as discovered in any campaign filing statement, shall be permitted to solicit and receive, and contributors to each such opponent may make, contributions in excess of the limits established in CYMC 2.52.040(A) for the single election contest in which notice was given. The $300 limit for individual contributions contained in CYMC 2.52.040 shall be suspended from the date the candidate deposited personal funds, including personal loans, into his or her campaign contribution account. The suspension of the $300 limit shall continue until the election day for the single election contest for which notice was given or until the opponent receives contributions, in excess of the Pagf61..91<g 16 Ordinance No. $300 limit, up to the amount of personal funds deposited by the candidate over $20,000, whichever occurs first. 2.52.110 Family contributions. Contributions by a husband and wife shall be treated as separate contributions and shall not be aggregated where the checks are drawn separately and signed by the spouse making the contribution. Contributions by a husband and wife shall be treated as separate even if combined into one check but presented with two signatures. 2.52.120 Prohibition of contribution in the name of another individual. It is unlawful for any individual, or combination of individuals acting jointly, to make directly or indirectly a contribution in the name of another individual or combination of individuals. 2.52.130 Contributions for legal defense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of a Councilmember and Mayor, or candidate made and used for the express purpose of offsetting costs already incurred by that Councilmember, Mayor, or candidate in the defense of a criminal or administrative prosecutorial action against said Councilmember, Mayor, or candidate, and not made or used for the purpose of aiding in the election of the Councilmember, Mayor, or candidate, and not made within (before or after) 100 days of an election in which the Councilmember, Mayor, or candidate is competing for a seat or office, shall not be deemed to be a contribution for the purposes of this chapter. 2.52.140 Campaign contribution account. Pagf61~,ot 16 Ordinance No. A. The campaign contribution account required by Government Code section 85201 shall be established at a financial institution located in San Diego County. B. All personal funds of $1,000 or more, including personal loans, shall be deposited into a candidate's campaign contribution account. C. Campaign contributions shall not be commingled with a candidate's personal financial accounts. 2.52.150 City campaign statements. Each candidate shall file campaign statements with the City Clerk as required by the Political Reform Act of 1974 as amended (Government Code Section 84100 et seq.). 2.52.160 Duties of City Clerk. In addition to other duties required of the City Clerk under the terms of this chapter and City Charter, the Clerk shall: A. Supply appropriate forms and manuals prescribed by the California Fair Political Practices Commission. These forms and manuals shall be furnished to all candidates and committees, and to all other persons required to report. B. Determine whether required documents have been filed and, if so, whether they conform on their face with the requirements of state law. C. NotifY promptly all person and known committees who have failed to file a document in the form and at the time required by state law. D. Refer complaints submitted pursuant to this chapter and apparent violations to the enforcement authority. If the City Clerk is uncertain or unable to determine whether Pa~6131o.f 16 Ordinance No. an apparent violation has occurred, the City Clerk shall refer the information to the enforcement authority. E. Compile and maintain a current list of all statements or parts of statements filed with the City Clerk's office pertaining to each candidate and each measure. F. Cooperate with the enforcement authority in the performance of the duties of the enforcement authority as prescribed in this chapter and applicable state laws. 2.52.170 Enforcement. A. The City Attorney shall not investigate or prosecute alleged violations of this chapter, but shall defend the constitutionality and legality of this chapter in any civil proceeding in which the City or the City Council is a party. B. Special counsel shall investigate or prosecute alleged violations of this chapter. C. The City Attorney shall solicit proposals from attorneys in accordance with Section 503 of the City Charter and Chapter 2.56 CYMC to act as special counsel eleven (II) months prior to a general election. As part of the annual budget process, the City Council shall appropriate no less than $100,000 to fund the retention of special counsel. These funds shall be separate from the City Attorney's budget and used solely for the investigation and prosecution of alleged violations of this chapter. D. The City Attorney shall appoint a panel of no less than three attorneys to act as special counsel. These attorneys shall be compensated by the City and serve as the enforcement authority for this chapter. Should the appointment of additional special counsel become necessary or appropriate, the City Attorney shall appoint additional Pa,e6!l1<tf 16 Ordinance No. special counsel as may be required. A single member of the special counsel panel shall be assigned to each case. Assignments shall be made on a rotating basis. Special counsel shall endeavor to maintain consistency of decisions regarding enforcement, in accordance with past precedent and shall consult with each other in the event of simultaneous investigations. E. Complaints of violation of this chapter may be submitted by any person. All complaints shall be submitted in writing, to the City Clerk, under penalty of perjury. The complaint shall state a full recitation of all facts that are alleged to constitute a violation of this chapter. F. The City Clerk shall forward the complaint to the special counsel for the single election contest within five working days of receipt for a probable cause determination. 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. G. If probable cause is determined to exist, special counsel shall take further investigatory and procedural steps necessary to resolve the matter. H. Violations of this chapter may be pursued either through a civil or criminal action at the discretion of the special counsel. Special counsel may also commence and prosecute any necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement or prosecution or action of special counsel shall be subject to the review or control ofthe City Attorney or City Council. 1. Special counsel may investigate and may institute legal action to prevent further violations. The special counsel may decline to investigate if the allegation is also Pa!\f~~f9l6 Ordinance No. a violation of state law and is the subject of a complaint filed with the Fair Political Practices Commission. 1. Special counsel shall be immune to liability for enforcement of chapter. 2.52.180 Penalties. A. Any person who willfully or intentionally violates any provision of this chapter is guilty of a misdemeanor. Any person who willfully causes or solicits any other person to violate any provisions of this chapter, or who aids and abets any other person in the violation of this chapter, shall be guilty of a misdemeanor. B. Any person who intentionally or negligently violates any provision of this chapter shall also be subject to removal from office, and shall be liable in a civil action brought by special counsel for an amount not more than three times the amount the person failed to report properly or unlawfully contributed, expended, gave or received, or $5,000 per violation, whichever is greater, plus attorney's fees for any intentional violation. In determining the amount of liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered, the funds recovered shall be deposited into the City's general fund. 2.52.190 Severability. If any provision of this chapter, or the application of any provision to any person or circumstances, shall be held invalid, the remainder of this chapter to the extent it can be given effect, or the application of those provisions to persons or circumstances other than Pa~s12i616 Ordinance No. those as to which it is held invalid, shall not be affected thereby, and to this end the provisions of this chapter are severable. SECTION III: Effective Date. This Ordinance shall take effect and be in force thirty days after its final adoption. Presented by Approved as to form Ann Moore City Attorney J:\AtlomcyIJDAWSON\Ordinances\Campaign Finam:e\08-09-07 (redline).doc Pa~~2ff16 r ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA REPEALING CHAPTER 2.52 OF THE CHULA VISTA MUNICIP AL CODE IN ITS ENTIRETY AND AMENDING THE MUNICIPAL CODE TO ADD A REVISED CHAPTER 2.52, ENTITLED "CAMPAIGN CONTRIBUTIONS" WHEREAS, the City of Chula Vista, pursuant to the police powers delegated to it by the California Constitution and as a charter city, has the authority to enact laws that promote the public health, safety, and general welfare of its residents; and WHEREAS, the City Council of the City of Chula Vista has the authority to regulate aspects of campaign finance and control related to the election of City officials, which is a matter of the general welfare of Chula Vista residents; and WHEREAS, Charter Section 904 provides that it is the policy of the City to avoid the potential for undue or improper influence over elected officials resulting from excessive campaign contributions.-Jn furtherance of that purpose, the City Council shall adopt reasonable regulations related to campaign contributions which shall be contained in the City Code; and WHEREAS, on March 20, 2007, the City Council voted to form an Ad Hoc Committee on the Campaign Contribution Ordinance to review the existing law and ensure it is meeting the needs of the people of ChuIa Vista and to bring forward suggestions regarding proposed changes as needed; and WHEREAS, the City Council requested that the Ad Hoc Committee be composed of a member of the City's Charter Review Commission and Board of Ethics, and a member who sat on the City's previous committee on campaign fmance, which was formed in June 2003; and J:\Attorney\JDAWSON\Ordinanccs\Campaign Finance\OS-09-07 (redline).doc 1 6 - 22 Ordinance No. WHEREAS, the current Ad Hoc Committee is composed of Hwnberto Peraza of the Charter Review Commission; Michael German of the Board of Ethics; and John Moot, a former City Councilmember and member of the previous campaign finance committee; and WHEREAS, the current Ad Hoc Committee on the Campaign Contribution Ordinance has prepared an ordinance for presentation to the Council. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain: SECTION 1:-_ Chula Vista Municipal Code Chapter 2.52 is repealed in its entirety. SECTION II: The Chula Vista Municipal Code is amended to add a revised Chapter 2.52, entitled "Campaign Contributions," to read as follows: Sections: 2.52.010 Purpose and intent. In enacting this chapter, the eCity eCouncil finds and declares that moderate monetary contributions to political campaigns are a legitimate form of participation in the American political process. It is the policy of this e~ity to protect the integrity of the electoral process, and the best interests of the citizens of this e~ity are served by regulating campaign finance. Inherent in the high cost of election campaigning is the problem of improper influence, real or potential, exercised by campaign contributors over elected officials. It is the purpose and intent of the eCity eCouncil in enacting this chapter: A. To preserve an orderly political forum in which individuals may express themselves effectively; Pa~ ~ -9Hli-l-S Ordinance No. B. To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in "City elections; C. To prohibit contributions by organizations and permit iaEiiviffilal contributions by individuals only; D. To provide full and fair enforcement of all the provisions of this chapter; and E. To encourage candidate adherence to election regulations by making them regulations easier to understand. 2.52.020 Interpretation and effective date ofthis chapter. A. -The terms and phrases in this chapter shall be defined as those terms and phrases are defined in the Political Reform Act of 1974, as amended (Govemment Code, Section 81000 et seq.), and in the regulations adopted by the Fair Political Practices Commission. unless otherwise specified in this chapter. B. This chapter takes effect on October II. 2007. and is applicable to all candidates seeking City electiye office in the general election of June 2008 and anv election thereafter. Any candidate for City electiye office participating in the general election of June 2008 or anv election thereafter shall haye a grace period of 60 davs from the effectiye date of this chapter to repay any campaign contributions made or received prior to the effective date of this chapter in conflict with or in yiolation of any provisions of this chapter. A candidate repaying any campaign contributions or loans during this 60- day grace period shall provide written notice to the City Clerk of the repayment within three business days of the repayment. 2.52.030 Definitions. Pa~e~_tt~+S Ordinance No. A. "Agent" means a person who acts on behalf or at the behest of any other person or accepts a contribution on behalf of a candidate. If an individual acting as an agent is also acting as an employee or member of a law, architectural, contracting. construction. engineering, or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual are "agents." B. "At the behest" means made under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express prior consent of. C. "Campaign contribution account" is that account in which all contributions or loans made to the candidate shall be deposited. as required bv Government Code section 85201. D. "Candidate" means any individual seeking any e~ity elective office, the candidate's campaign committee, committee(s) controlled by the candidate, agents of the candidate. "Candidate" includes any individual in a City elective office. who becomes the subiect of a recall election. on the earlier of the date a notice of intention to circulate a recall petition is published or the date a statement of organization for a committee to recall the elective officer is filed with the City Clerk or the Secretary of State pursuant to state and local law. g);;. "City campaign statement" means the statement, which, to the extent practicable, shall be similar to or consolidated with that required by state law. EE. "City elective office" means tflean offices held by the Mayor or a members of the e~ity eCouncil and maysr. Pa~ g~H~-l-S Ordinance No. I'G. "Contributions" areis defined in a manner identical with the definition found in Government Code 's~ection 82015 and any related provisions in the California Code of Regulations. GH. "Enforcement authority," under this chapter. means that special counsel appointed by the eCity eCouncil pursuant to CVMC 2.52.170. without limiting the authoritv of the District Attornev. Attornev General. Fair Political Practices Commission. or other prosecutorial authority under any applicable provision of state or federal law. HI. "General election" is that election identified by Charter Section 900, which is combined with the California sState primary election. 1. "hulefleRdent el'fleRditure esmmittee" is as ssfmed ill. GS'Ismrnent Csss Sset;ioRs 82013 ans 82031 7ffiieh SHfl!lafts or opposes ill. waole or iR!laft a ellflsisate for eit)' eleetive offiee if eontrilmtisRs are mase to saia eaHllRittee with the intent iliat they, ar a eOHlflarallle amaant of fuads otherwise o....nea by, Elr anaer the control of, tlle eammittee be uses ta SHfl!lslt or oppose a particular candidate for a eit)' eleetive offiee. This tYfle of eomm.ittes is not eElll.trolles BY the eanaisate. J. "lnts_ediar)''' mealls a !lerson waa selivers to a eaaaidate Elr committee sr eommittee treasurer a eontriBHtisR from anather persall. lIflless SHell. eORtriBHtioR is [ram the !lerSOR's eHlfllo)'er, immediate [arRil)' or an assoeiatiaR to whieh the persall. belongs. Neither eaadidats ar treasHrer is eaRsiserea all intermediary. K,[. "Organization" means a proprietorship, labor union, firm, partnership, joint venture, syndicate, business, trust, company, corporation, association, or committee, including a political action committee. Pa~~.?U~-l-& Ordinance No. l,K. "Person" means a natural individual. MI.. "Single election contest" means either a general or special election. NM. "Special election," defined in Charter Section 901, means fLatl sther municipal elections other than a general election that may be held by authority of the Charter or of any law. 2.52.040 Campaign contribution limits. A. No person, other than a candidate, shall make a contribution in excess of $300~ to a candidate for a single election contest. No candidate shall solicit or accept a contribution in excess of $300~ from a contributor for a single election contest. A eaadidate may reeei'ie lip tEl $300.00 1'Fem a eoffifieHtor in eaeR of the general and sfleeial eleetiElnsThis limit on contributions mav be suspended onlv on the conditions set forth in CYMe 2.52.100. B. The terms of this chapter are applicable to any contributions made to a candidate sr eElHllRittee heretffider, whether used by Slfe!h~ candidate Elr aSHllRittee to finance a current campaign or to pay debts incurred in prior campaigns. C. No person shall make a contribution to any candidate, for eit)" eleetive sffiees and no ~andidate shall accept from any person such a contribution SEl6HCwlier than eleven (II} months preceding a single election contest. D. A contribution for an election may be accepted by a candidate for eleative eity effiee-after the date of the election only to the extent that the contribution does not exceed net debts outstanding from the election, and the contribution does not otherwise exceed the applicable contribution limit for that election. Pa~e66_0{.p.+8 Ordinance No. E. A candidate for city electi'{e offiee may not solicit or accept contributions for a special election prior to the holding of the general election for that office. A candidate for city elective offiee may carry over contributions raised in connection with ;Le@neral election for a specific elective eCity office to pay campaign expenditures incurred in connection with a subsequent special election for the same elective eCity office. F. No person shall knowinglv make or accept a contribution. or counsel. aid. abet. advise. or participate with another to make or accept a contribution in violation of anv provisions of this chapter. Anv person who violates anv provision of this chapter shall be guiltv of a misdemeanor. and shall be subiect to the penalties set forth in CVMC 2.52.180 and other applicable laws. 2.52.050 Surplus campaign funds. A. Uj30R lea-'{iflg any electea effice, er at t!l.e eRd ef the j3est eleetioR rej3ertiRg j3eriea followiflg the defeat of a caRaiElate for elective office, '::hiellcver occurs last, eCampaign funds under the control of a candidate following the certification of election results bv the Countv Registrar of Voters for a single election contest in which the candidate is either defeated or elected to a specific Citv elective office shall be considered surplus campaign funds. B. Surplus campaign funds shall be used only for the following purposes: 1. To repay eoatrilmtioRsa loan or loans made to a candidate for the purpose of a campaign for a City elective office bv a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personal1v liable. Pa~ei_~~+S Ordinance No. 2. To make a donation to any bona fide charitable, educational, civic, religious, or nonprofit organization, where no substantial part of the proceeds will have a material financial effect on or benefit to the candidate, any member of his or her immediate family, or his or her campaign treasurer. 3. To pay for campaign-related goods and/or services reasonably incurred bv the candidate during the preceding campaign for a specific elective office: such goods and/or services may include those incurred bv a candidate participating in a special election, following a general election, as provided in CVMC 2.52.040(0). ~. To pay for professional services reasonably retjtlincurred by the candidate Of committee to assist in the performance of tts-administrative functions related to the preceding campaign for a specific elective office, including payment Qfm attorney's fees for litigation that arises directly out of a candidate's activities or his or her status as a candidate, including, but not limited to, an action to enjoin defamation, defense of an action brought of a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount. C. Surplus campaign funds shall not be used to repay any personal loans. D. Surplus campaign funds shall not be carried over for use bv a candidate in any subsequent election following a single election contest in which the candidate is either defeated or elected to a specific City elective office. 2.52.060 Organizational contributions. A. No organization or entity shall make a contribution to any candidate-6f candidate CaIRj3aigR committee. This c!u'!lter shall Rot a]l]lly to eofltfll3utioRS made te a Pa!I,e6~ '1glli+8 Ordinance No. samHl.iftee 'Nil.isll is argaFlized solei)' far the p\Hllase of sl:lflpaftiag ar opposiag the qualifieatioR fer tHe Ballet or adoption of eRe or FlHJre sit)' meaoares. B.- _No officer, employee, agent, 8f-attomey or other representative of a person covered by this chapter shall aid, abet, advise or participate in a violation of this chapter. All contributions made by a person whose contribution activity is financed, maintained or controlled by an organization or any other person shall be deemed to be made by that organization or other person. If..tfteAnv contribution is aeelRea made by an organization, it is prohibited. C. No eandidate shall kno'Ningl)' aeeept a pa)'mem or eoRtriButioR made ill. '/iolation of this ehlljlter. 2.52.070 Return of nrohibited Gfontribution~ in violation of this ehapter. A. If a contribution is tendered and would be in violation of this chapter, it shall be returned bv a candidate to a contributor within three business days of discovery...Q[ receipt of the contribution bv the candidate, or his or her representative. or after notification bv a contributor. whichever occurs first. The candidate shall also report in writing to the Citv Clerk within three business davs of discovery the facts surrounding the contribution. and the Citv Clerk shall retain the report in the candidate's file for that campaign reporting period. B. If a eeRtributiell. ':.il.ieh is ill. '/ialatioR of this ehlljlter is resei'/ea BY a 8aaElidate, the eandidate shall report ill. '.witiRg withia three BusiRess aaj's of disee'/ery of the reeeipt of the eoRtrieutioR to the eity elerk the faets sarroundiag SlieR s8Rtrieuti81l. aad sRall rerum sHeR eORtrieutiell. te tRe soRtribRtor wiiliiR 24 ReHrs af dise8very. pagf g.?~~-I-S Ordinance No. C. A contribution shall not be considered to be received if it has not been negotiated, deposited, or utilized, and is returned bv the candidateto the deRsr within three business days of discovery of receipt. 2.52.080 Written solicitations by candidates. Any candidate making a written solicitation for a contribution for his or her campaign for eity elective efBee shall include the following written notice in no less than six point type on each such solicitation: NOTICE Onliflllfiee Ne. 2955 of tIhe City of Chula Vista Municipal Code limits contributions to campaigns for City elective office, eitfter to $300coodidale coffirelled co_mess or to reglollates iRdepeRdeRt sllfleRditW"e cemmittees, te three ffirndred dollars per coRtriaatoroerson. 2.52.090 Loans. .f>r.-A loan or extension of credit shall be considered a contribution from the maker of the loan or extender of credit and shall be subject to the contribution limitations of $300. as provided in this chapter. This contribution limit B. The provisieRs of this eliajJter apply to perseRal loans er eKleRsieRs ef cresil, alolt does not apply to loans made to a candidate for the purpose of a campaign by a commercial lending institution in the lender's regular course of business on terms available to members of the general public for which the candidate is personally liable. C. .'\ candidate for electi':e city ofBce may Rst persoRally loan ts his er her caHlj3aigR an affiOIHK iR ellcess sf ~2Q,000. Page, ~O_~~+& Ordinance No. D. Eaeh ol3l3eRent of a samliclale who has maae a leaR to his or her saillj3aiga p<lfSliant to this sestioR sfiallbe peffilittea te solicit aHa reeeive, and eontribators te slish epl3ElfleRt may make, eontribatioRG iR eJlSeSS sf the limits eontaiRea iR CVMC 2.52.040. The limitatieR eoRtaiaea iR CVMC 2.52.040 saallbe saspeaded kem the date eaaaiaate made said leaR se that the eppoRent ma)' reeei...e eoatributieas iR elleess ef the limitatieR l:Ip to the amo\illt leaned by tfie eaHdidate. These eontribatioRs reeei'ied ';;ithiR er iR ellsess ef the limitatieR shaJ.l eEll:lnt tewara eEtl:laling the ame\illt leaRed. Eo Baeh eppElRent ef a eaRdiaate Elr ether perGeR 'Nhe has giveR Rease pllFGliant te CVMC 2.52.1 00 shaJ.l RElt be eeood by the IElan limitatioR withiR this seetieR to the 8lltent the amellIlt ofperseRal fuRas ellcpended er seRtriblited 8lweeds $20,000. 2.52.100 Netiee regarding pfersonal funds and personal loans: notice. suspension of limits. A. No candidate er other j3erseR shall expend, ~ontribute. or loan himself or herself more than $~20,OOO for a single election contest perseaal ruBes iR eellfteetioR with an eleetieR 6ai1lj3aigR unless and until the following conditions are met: I. Written notice of the candidate's er other perseR's intent to sepersonally expend, ef-contribute. or loan himself or herself in excess of $~20,OOO shall be proyided to the e~ity eClerk and all opponent candidates. The notice shall be deliyered personally or sent by registered mail to the last known address of the opponent candidates as shown in the records of the eCity eClerk and shall specify the amount intended to be personally expended, ef-contributed. or personally loaned. The notice shall also provide the date the Pag1 s~1#+S Ordinance No. personal funds or personal loan shall be deposited into the candidate's campaign contribution account, as required bv CYMC 2.52.l00(A)(3).;--aRtI 2. The required notice shall be given no later than 21 davs prior to the election. unless the exoenditure. contribution. or loan occurs during the 21 davs preceding the election in which case the required notice shall be provided within 24 hours. 3. All personal funds. including personal loans of $1.000 or more to be expended or contributed by the candidate, shall first be deposited in the candidate's campaign contribution cheeking account. The rellaired notiee shall 8e given no later than 21 days flrier to the eleetien. If the ellflenditllfe or eonlrilllltien oeellfs Elaring the 21 days flreeeding the electien, the retjaired notiee shall Be provided witlHn 24 hellfs. B. Each opponent of ~ candidate who has eOffij'llied with the alloye conElitiensreceived notice of the candidate's use of personal funds. including personal loans. either through the requirements of CYMC 2.52.l00(A) or as discovered in anv campaign filing statement. shall be permitted to solicit and receive, and contributors to each such opponent may make, contributions in excess of the limits established in CYMC 2.52.040(A) for the single election contest in which notice was given. The $300 limitatiefl for individual contributions contained in CYMC 2.52.040 shall be suspended from the date the candidate deposited sffiEloersonal funds. including personal loans. into his or her camoaign contribution account. The suspension of the $300 limit shall continue until the election dav for the single election contest for which notice was given or until the opoonent receives contributions. in excess of the $300 limit, UP to the amount of Page 12 of 18+& 16-;:sT" Ordinance No. personal funds deposited bv the candidate over $20.000. whichever occurs first so that the ell]leaeHt may reeeive eoatrilmtieas ia exeess ef the limitatioH up te the amooot of llerseRal maas aellesitea by tll.e eaHaidate ia his Elr her eamllaiga eeffiribHtioa efieekiag aeeellftt. Those eeatribHtioHs Feeeivea .,vithia er ia exeeGS of tll.e limitatioR saall eellftt tewara eE):ualiag tll.e arRelHlt of Ilerseaal fuaas aellesited by the eanaitlate ia his er her ellffifJaiga eeatrilmtiea eheelaag aeeooot. 2.52.110 Family contributions. Contributions by a husband and wife shall be treated as separate contributions and shall not be aggregated where the checks are drawn separately and signed by the spouse making the contribution. Contributions by a husband and wife shall be treated as separate even if combined into one check but presented with two signatures. 2.52.120 Prohibition of contribution in the name of another individual. It is unlawful for any individual, or combination of individuals acting jointly, to make directly or indirectly a contribution in the name of another individual or combination of individuals. 2.52.130 Contributions for legal defense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of a eCouncilmember and mMayor, or candidate made and used for the express purpose of offsetting costs already incurred by that eCouncihnember, aHa mMayor, or candidate in the defense of a criminal or administrative prosecutorial action against said eCouncilmember, aHa mMayor, or candidate. and not made or used for the purpose of aiding in the election of saidthe e~ouncilmember, aHd mMayor, or candidate, and not Pag1 S3_t~+& Ordinance No. made within (before or after) 100 days of an election in which the eCounci1member, aHd mMayor, or candidate is competing for a seat or office, shall not be deemed to be a contribution for the purposes of this chapter. 2.52.140 Campaign contribution eheelaBg account. A. The campaign contribution account required by Government Code S~ection 85201W shall be established at a financial institution located in San Diego County. B. All personal funds of $ 1.000 or more. including personal loans. shall be deposited into a candidate's campaign contribution account. C. Campaign contributions shall not be commingled with a candidate's personal fmancial accounts. 2.52.150 C~ampaign statements. Each candidate aHd eOHlHl.ittee shall file campaign statements with the City Clerkffi the time and mar.fler as required by the Political Reform Act of 1974 as amended (Government Code Section 84100 et seq.). CeHlfllianee ".vitl! the reE[lIiremeHts efthat I.et shall be seemed to be eemplianee with this ellliflter. 2.52.160 Duties of eCity eClerk. In addition to other duties required of the eCity eC1erk under the terms of this chapter and eCity Charter, the e~lerk shall: A. Supply appropriate forms and manuals prescribed by the California Fair Political Practices Commission. These forms and manuals shall be furnished to all candidates and committees, and to all other persons required to report. Pag~ 6'!..?f~H Ordinance No. B. Determine whether required documents have been filed and, if so, whether they conform on their face with the requirements of state law. C. Notify promptly all person and known committees who have failed to file a document in the form and at the time required by state law. D. Refu@efl complaints submitted pursuant to this chapter and apparent violations of this 6B.aj3ter ana aj3jllieatJle state law to the enforcement authority. If the Citv Clerk is uncertain or unable to determine whether an apparent violation has occurred. the Citv Clerk shall refer the information to the enforcement authoritv. E. Compile and maintain a current list of all statements or parts of statements filed with the eCitv Clerk's office pertaining to each candidate and each measure. F. Cooperate with the enforcement authority in the performance of the duties of the enforcement authority as prescribed in this chapter and applicable state laws. 2.52.170 Enforcement. A. The eCity aAttorney shall not investigate or prosecute alleged violations of this chapter, but shall defend the constitutionality and legality of this chapter in any civil proceeding in which the eCity or the ehity eCouncil is a party. B. Special counsel shall investigate or prosecute alleged violations of this chapter. C. The eCity aAttorney shall solicit proposals from attorneys in accordance with Section 503 of the eCity Charter and Chapter 2.56 CVMC to act as special counsel eleven (lll.8G ~onths prior to a eitygeneral election. As part of the annual budget process, the eCity eCouncil shall appropriate no less than $100,000 to fund the retention of special Pag, SS-W+& Ordinance No. counsel. SaieThese funds shall be separate from the eCity aAttorney's budget and used solely for the investigation and prosecution of alleged violations of this chapter. D. The eCity aAttorney shall appoint a panel of no less than three attorneys to act as special counsel. SaieThese attorneys shall be compensated by the e~ity and sfiaH-.serve as the enforcement authority for this chapter. Should the appointment of additional special counsel become necessary or appropriate, the e~ity aAttorney shall appoint SHell additional special counsel as may be required. A single member of the special counsel panel wtshall be assigned to each case. Assignments wtshall be made on a rotating basis. Special counsel shall endeavor to maintain consistencv of decisions regarding enforcement. in accordance with past precedent and shall consult with each other in the event of simultaneous investigations. E. Complaints of violation of this chapter may be submitted bv any person. All complaints shall be submitted in writing. to the City Clerk. under penalty of perjury,..-by-a residem ef the city te the city clerk. SaieThe complaint shall state the;! full aIlegrecitation of all facts that wetlMare alleged to constitute a violation of thise chaptereee.--+he com]3laim mlist be filed '.vithiR 90 days of disceyery of the alleged vielatioR, but 170 later tll.aR lED days ffem the elate of the electiell. F. The e~ity eClerk shall forward the complaint to the raademly aGsigaed special counsel ffom the panel ef attome~'s ap]3eillted by taB city aftemeyfor the single election contest within five working days of receipt for a probable cause determination. 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. Page 16 Q.f l8-l% 16-;:11 Ordinance No. G. If probable cause is determined to exist, special counsel shall take further investigatory and procedural steps necessary to resolve the matter. H. Violations of this chapter may be pursued either through a civil or criminal action at the discretion of the special counsel. Special counsel may also commence and prosecute any necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement or prosecution or action of special counsel shall be subject to the review or control of the "City aAttorney or "City "council. 1. Special counsel may investigate and may institute legal action to prevent further violations. The special counsel may decline to investigate if the allegation is also a violation of state law and is the subject of a complaint filed with the tEair flrolitical flrractices "Commission. J. Special counsel shall be immune to liability for enforcement of chapter. 2.52.180 Penalties. A. Any person who willfully or intentionally violates any provision of this chapter is guilty of a misdemeanor. Any person who willfully causes or solicits any other person to violate any provisions of this chapter, or who aids and abets any other person in the violation of this chapter, shall be guilty of a misdemeanor. B. Any person who intentionally or negligently violates any provision of this chapter shall also be subiect to removal from office. and shall be liable in a civil action brought by special counsel for an amount not more than three times the amount the person failed to report properly or unlawfully contributed, expended, gave or received, or Pag1 ~~W+S Ordinance No. $5,000 per violation, whichever IS greater. plus attornev's fees for anv intentional violation. In determining the amount of liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered, the funds recovered shall be deposited into the eCity's general fund. 2.52.190 Severability. _If any provision of this chapter, or the application of any SHeh-provision to any person or circumstances, shall be held invalid, the remainder of this chapter to the extent it can be given effect, or the application of those provisions to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby, and to this end the provisions of this chapter are severable. SECTION III:_-Effective Date. This Ordinance shall take effect and be in force thirty days after its [mal adoption. Presented by Approved as to form Ann Moore City Attornev Ann Moore City Attorney 1:\Attomev\mAWSON\Ordinance~\C:amn8illn FinanceI08_09.o7 (redline) docJ: 'RHAe/JD' "'~etrg If l. ee~'SB. ~a.! r a lH Q1! ~r 'J7 (RBB1:.RJE)_~6a Page 18 of 18 16-39