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HomeMy WebLinkAbout2010/11/23 Item 21CITY COUNCIL AGENDA STATEMENT .,;, ~ ~~~ CITY OF CHULAVISTA Item No. 21 ITEM TITLE: ORDINANCE AMENDING CHULA CODE CHAPTER 2.52, THE CONTRIBUTION ORDINANCE SUBMITTED BY: REVIEWED BY: VISTA MUNICIPAL CITY'S CAMPAIGN BART C. MIESFELD, CITY ATTORNEY ~'~'.pti~, CITY ATTORNEY 4/STHS VOTE: YES ~ NO SUMMARY At the October 12, 2010 City Council meeting, the City Attorney presented the City Council with a report analyzing the City's Campaign Contributions ordinance and identifying the provisions that were duplicative of the Political Reform Act ("PRA"), in order to determine whether, and to what extent, the Fair Political Practices Commission ("FPPC") could enforce the ordinance. The City Council then directed the City Attorney's office to return with amendments to the ordinance to: (i) delete the provisions that duplicate the PRA; (ii) make updates necessitated by recent case law; and (iii) revise the enforcement section. This item is brought forward in response to that direction. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment because it does not involve a physical change to the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council place the ordinance on first reading if it deems appropriate. BOARDS/COMMISSION RECOMMENDATION Not Applicable. 21-1 NOVEMBER 23, 2010, Item Z) Page-2- DISCUSSION I. BACKGROUND The City's Charter requires the City Council to "adopt reasonable regulations related to campaign contributions" in order to "avoid the potential for undue or improper influence over elected officials resulting from excessive campaign contributions." The regulations must be contained within the City's Municipal Code. Chula Vista Municipal Code Chapter 2.52, entitled, "Campaign Contributions," was enacted in 1989, in compliance with the Charter requirement. At the May 25, 2010 City Council meeting, the Council discussed the Campaign Contributions ordinance and some Council members expressed concerns with the ordinance. The Council directed the City Attorney to review the ordinance and return to Council with recommendations regarding potentially repealing or amending the ordinance. At the June 15, 2010 City Council meeting, Councilmember Ramirez initiated further discussion of the ordinance. The discussion centered on the potential for repealing Section 2.52.140, which contains the enforcement provisions of the ordinance. During the discussion, certain Council members voiced concerns regarding the ordinance, including the costs that the City has incurred to investigate complaints filed in recent years, potential abuses, and the possibility of duplication of the enforcement efforts of other agencies. As a result, the Council directed the City Attorney to return to the Council on June 22, 2010 to present the Council with potential options for suspending enforcement of the ordinance, pending the outcome of the City Attorney's comprehensive review and analysis. The Council ultimately voted to amend the ordinance to suspend Section 2.52.140 for 180 days. On July 13, 2010, the Council again discussed the Campaign Contributions ordinance. That discussion centered primazily on enforcement of the ordinance. At the end of the discussion, the Council directed the City Attorney to review the ordinance to determine which of its provisions are duplicative of the PRA, in order to determine whether, and to what extent, the FPPC could enforce the ordinance. The Council directed the City Attorney to return to the Council to report the results of the ordinance review. That report was presented to the Council on October 12, 2010. At that time, the Council directed the City Attorney's office to return with amendments to the ordinance to: (i) delete the provisions that duplicate the PRA; (ii) make updates necessitated by recent case law; and (iii) revise the enforcement section. This item is brought forwazd in response to that direction. II. PROVISIONS DUPLICATING THE PRA The Campaign Contributions ordinance can be found at Chula Vista Municipal Code ("CVMC") Chapter 2.52. Sections 2.52.040 through 2.52.120 set forth the substantive provisions of the ordinance.2 In our October 12u' staff report, we detailed our comparison ~ Chula Vista City Charter, Sec. 904 z Attachment 1 to this Agenda Statement contains the entire text of the City's Campaign Contributions ordinance for the Council's reference. 21-2 NOVEMBER 23, 2010, Item 2 Page - 3 - of the City's Campaign Contribution to the PRA. We identified the following provisions as being duplicative: 2.52.040.C. (Prohibition against making a contribution in another's name) 2.52.040.D. (Prohibition against aggregating husband and wife contributions) 2.52.070.B. (Campaign contribution account personal funds to be deposited) 2.52.090.A. (Return of contributions) 2.52.110 (Campaign statements) Pursuant to the City Council's direction, we have prepazed an amended ordinance which deletes the above provisions. A copy of the draft amended ordinance, reflecting the revisions in a redline/strikeout format, is attached as Attachment 2 to this Agenda Statement for the CounciPs consideration. In addition, CVMC section 2.52.080 (Surplus Campaign Funds) is essentially duplicated at PRA section 89519(b). However, there are a couple of differences: (i) the phrase "including loans to oneself up to an amount of $5,000" from CVMC 2.52.080.B.1. is not included; and (ii) section 89519(b) also allows surplus funds to be used for: "(1) The payment of outstanding campaign debts or elected officer's expenses. (4) Contributions to a political party committee, provided the campaign funds are not used to support or oppose candidates for elective office. However, the campaign funds may be used by a political party committee to conduct partisan voter registration, partisan get-out-the-vote activities, and slate mailers as that term is defined in Section 82048.3. (5) Contributions to support or oppose any candidate for federal office, any candidate for elective office in a state other than California, or any ballot measure." Because Section 2.52.080 is not exactly duplicated in the PRA, we have left it in the draft amended ordinance. However, the Council could opt to delete section 2.52.080 and rely on the FPPC to enforce PRA section 89519. Doing so would expand the acceptable uses of surplus funds to include those in section 89519. Alternatively, the Council could retain Section 2.52.080. Doing so would leave enforcement to the local enforcement authority and would limit the acceptable uses of surplus funds to those in CVMC2.52.080.B. Finally, we added some language to the ordinance in response to concerns voiced by some of the Council members regazding adequately informing local candidates of applicable FPPC provisions. Specifically, we added an opening paragraph in Section 21-3 NOVEMBER 23, 2010, Item Page-4- 2.52.010 that notifies local candidates that they are required to comply with Chapter 2.52, as well as the PRA and FPPC regulations, and providing the citations for easy reference. III. LEGAL UPDATES Several of the revisions reflected in the draft amended ordinance were made as a result of recent Supreme Court and District Court decisions. These revisions primarily affect the City's regulation of campaign contributions and are discussed below. A. Basis for Limiting Campaign Contributions Limitations on campaign contributions aze subject to strict scrutiny because they have been found to impinge on First Amendment rights. The only basis on which limits on direct campaign contributions to candidates have been upheld is a governmental interest in stemming the reality or appearance of corruption in the electoral process. [Davis v. FEC (2008) 554 U.S. 724; Buckley v. Valeo (1976) 424 U.S. 1.] As a result, we have added language regarding the City's interest in preventing corruption and the appearance of corruption in its local elections. B. Amount of Campaign Contribution Limits The City's ordinance currently limits the amount of contribution an individual can make to $300, and prohibits an "organization," as that term is defined in the ordinance, from making contributions. We have made some revisions to these provisions in response to recent case law. First, in a recent challenge to the City of San Diego's campaign contribution ordinance, a federal district court enjoined San Diego's ban on contributions by political parties, but subsequently upheld a $1,000 limit on such contributions. [Thalheimer, et al. v. City of San Diego, et al. (S.D. Cal. Feb. 16, 2010) 706 F.Supp.2d 1065; Thalheimer, et al. v. Ciry of San Diego (S.D. Cal. Sep. 3, 2010) _ F. Supp.2d _, 2010 U.S.Dist. LEXIS 92090.] As a result, we added language to the ordinance to cleazly exempt political parties from the definition of "organization" and to limit campaign contributions by political parties to $1,000. The City Council could choose to increase that limit, but we would not recommend imposing a lower limit because it may be subject to a Constitutional challenge. Second, the United States Supreme Court has opined as to factors to be considered in determining whether campaign contribution limits would withstand Constitutional scrutiny; one factor considered is whether the limit is indexed to inflation. [Randall v. Sorrel (2006) 548 U.S. 230: U.S. Supreme Court struck down $400 Vermont contribution limit on state elective office, partially because the limit was not indexed to inflation.] In response, we amended the ordinance to provide that both the individual contribution limit and the political party contribution limit be indexed to inflation. 21-4 NOVEMBER 23, 2010, Item ~- ~ Page-S- C. Limitations on Expenditures Although the Supreme Court has approved limitations on campaign contributions, subject to strict scrutiny, it has rejected such limitations on campaign expenditures. It affirmed this position in a decision earlier this yeaz in which it held unconstitutional the long-standing ban on corporations and labor unions using their general treasury funds to make independent expenditures on behalf of federal candidates. [Citizens United v. Federal Election Com. (2010) 130 S.Ct. 876.] The City's ordinance does not limit campaign expenditures. However, so that the ordinance is not misconstrued, we have added language to clarify that the contribution limitations do not limit expenditures. D. Application to Elected City Attorney Finally, we revised the ordinance to include the City Attorney in the definition of "City elective office." This change was made in response to the Charter amendment making the City Attorney an elected, rather than appointed, position. IV. ENFORCEMENT We also revised the enforcement provisions of the ordinance, in response to comments from the Council members. The changes to section 2.52.140 are summarized below. A. Bifurcation of Review and Investigation Responsibilities As revised, the amended ordinance essentially constitutes a bifurcated version of the prior enforcement approach. The amended ordinance retains the panel counsel, selected by the City Attorney, for review of complaints alleging violations of the ordinance. However, there would be an initial review of the complaint; any follow-up investigation would be handled sepazately. Specifically, the first panel counsel would be responsible for reviewing the complaint and making a probable cause determination. If he or she determines the complaint is meritless, the complaint will be returned to the complainant and no further action will be taken. If the enforcement authority determines there is probable cause to find there was a knowing or willful violation of the chapter, the complaint will be forwarded to the District Attorney for handling. If the enforcement authority determines there is probable cause to find there was a negligent violation of the chapter, the complaint will be returned to the City Attorney, who will forwazd it to the next attorney in the panel counsel rotation for investigation and further handling. The primary aim of this approach is to expeditiously obtain an initial determination of the merits of the complaint by a qualified, unbiased reviewer and then to get it to the appropriate authority if further investigation is warranted. B. Reliance on Other Agencies In response to Council member concerns regazding duplication of efforts of other agencies and the enforcement costs to the City, we also revised the ordinance to utilize other agencies when appropriate. The amended ordinance provides that the District Attorney will receive complaints that alleging knowing or willful violations and that the violations of the PRA will be sent to the FPPC and will not be investigated by the enforcement authority. We also eliminated the $100,000 appropriation mandate. The 21-5 NOVEMBER 23, 2010, Item 2 1 Page-6- intent of these revisions is to limit the role of the enforcement authority, and consequently, the cost to the City of enforcing the ordinance. C. Other Additional revisions were made in response to various Council member comments. Those include: (i) reducing the amount of the per violation fine from $5,000 to $500, in order to reduce the dispazity in how fines were meted out; (ii) modifying the limitations period so that, whether the enforcement authority chooses to pursue a complaint as a civil or an administrative matter, the limitations period is four yeazs in either case; and (iii) adding language and penalties to dissuade the filing of meritless complaints. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. CURRENT YEAR FISCAL IMPACT The General Fund currently reflects a budget of $100,000 to investigate alleged violations of the City's Campaign Contributions Ordinance. ONGOING FISCAL IMPACT Eliminating the requirement to investigate alleged violations of the Campaign Contributions Ordinance would result in budgetary savings of $100,000. There would continue to be unanticipated litigation expenses if the City was required to pay for attorney services on behalf of the City employee being investigated. ATTACHMENTS Attachment 1 -Chula Vista Municipal Code Chapter 2.52 Attachment 2 -Proposed Amended Chapter 2.52 -Redline Prepared by: Ji11 D.S. Maland, Assistant City Attorney, Office of the City Attorney 21-6 Chula Vista Municipal Code f~f tzt,e h n'ceY~ ~ r 2.52.030 Chapter 2.52 CAMPAIGN CONTRIBUTIONS* Sections: 2.52.010 Purpose and intent. 2.52.020 Interpretation of this chapter. 2.52.030 Definitions. 2.52.040 Campaign contribution limits. 2.52.050 Loans. 2.52.060 Notice regarding personal funds. 2.52.070 Campaign contribution account. 2.52.080 Surplus campaign funds. 2.52.090 Return of prohibited contributions. 2.52.100 Written solicitations by candidates. 2.52.110 Campaign statements. 2.52.120 Contributions for legal defense. 2.52.130 Duties of City Clerk. 2.52.140 Enforcement 2.52.150 Penalties. 2.52.160 Severability. * Prior legislation: Orris. 2298, 2334, 2391, 2434, 2581, 2654, 2661, 2769, 2849 and 2955. 2.52.010 Purpose and intent. In enacting this chapter, the City Council finds and declazes that moderate monetary contributions to political campaigns are a legitimate form of paz- ticipation 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 citi- zens of this City aze served by regulating campaign finance. Inherent in the high cost of election campaign- ing is the problem of improper influence, real or potential, exercised by campaign contributors over elected officials. It is the purpose and intent of the City Council in enacting this chapter: A. To preserve an orderly political forum in which individuals may express themselves effec- tively; 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 elec- tion regulations by making them easier to under- stand. (Ord. 3086 § 1, 2007). 2.52.020 Interpretation of this 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.), unless otherwise specified in this chapter. B. The terms of this chapter aze applicable to any contributions made to a candidate or candi- date-controlled committee whether used by the candidate to finance a current campaign or to pay debts incurred in prior campaigns. C. Revisions to this chapter take effect on December 13, 2007, and are applicable to all con- tributions received by 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 shall have a grace period of 60 days from the effective date, as stated in this subsection, to repay any campaign contributions made or received prior to the effective date of the revisions in conflict with or in violation 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, defined as Monday through Friday and excluding City holidays, of the repayment. (Ord. 3086 § 1, 2007). i 2.52.030 Definitions. A. "Agent" means a person who acts on behalf or at behest of any other person or accepts a contri- bution on behalf of a candidate. If an individual acting as an agent is also acting as an employee or member of a law, architectural, engineering or con- sulting 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 con- trol or at the direction of, in cooperation, consulta- tion, 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 candi- date, agents of the candidate. E. "City campaign statement" means the state- mentwhich, to the extent practicable, shall be sim- 21-7 2-77 laemsea uoe> z.s2.oao filar to or consolidated with that required by state law. F. "City elective office" means the offices held by the Mayor or members of the City Council. The "same City elective office," as used herein, means the speck Council seat numbered one, two, three, or four or the specific seat held by the Mayor as defined by Charter Section 300(C). G. "Contribution" is defined in a manner iden- ticalwith the definifion found in Government Code Section 82015, contained within the Political Reform Act, and any related provisions in the Cal- ifornia Code of Regulations. H. "Enforcement authority," under this chapter, means that special counsel appointed by the City Attorney pursuant to CVMC 2.52.140. I. "General election" is that election identified by Charter Section 900, which is combined with the state primary election. ]. "Independent expenditure committee" is as deftned in the Political Reform Act, which sup- ports or opposes in whole or in part a candidate for City elective office if contributions aze made to said committee with the intent that they, or a com- pazable amount of funds otherwise owned by, or under the control of, the committee be used to sup- port or oppose a particulaz candidate for a City elective office. This type of committee is not con- trolled by the candidate. K. "Organization" means a proprietorship, labor union, firm, partnership, joint venture, syndi- cate, business, trust, company, corporation, associ- ation, or committee, including a political action committee. L. "Person" means a natural individual. M. "Political Reform Act" means the Califor- nia Political Reform Act of 1974, as amended, found at Govetmnent Code Section 81000 et seq., and includes regulations adopted by the Fair Polit- ical Practices Commission. N. "Single election contest" means either a gen- eral or special election. O. "Special election" is defined in Charter Sec- tion 901 as all other municipal elecdons that may be held by authority of the Charter or of any law. (Ord. 3086 § 1, 2007). from a contributor in each of the general and spe- cial elections. B. No organization shall make a contribution to any candidate or candidate-controlled campaign committee. This chapter shall not apply to contri- butions made to a committee that is organized solely for the purpose of supporting or opposing the qualification for the ballot or adoption of one or more City measures. 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 the contribution is deemed made by an organization, it is prohibited. C. No individual or combination of individuals acting jointly shall make directly or indirectly a contribution in the name of another individual of combination of individuals. D. Contributions by a husband and wife shall be treated as separate contributions and shall not be aggregated where the checks are drawn sepazately 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. E. No person shall make a contribution to any .candidate and no such candidate shall accept from any person such a contribution sooner than 11 months preceding a single election contest. F. A contribution for an election may be accepted by a candidate after the date of the elec- tion 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. G. A candidate may not solicit or accept contri- butions for a special election prior to the holding of the general election for that office. H. A candidate may carry over contributions raised in connection with one election for City elective office to pay campaign expenditures incurred in connection with a subsequent election for the same City elective office. (Ord. 3086 § 1, 2007). 'ma'r 252.040 Campaign contribution limits. A. No person, other than a candidate, shall make a contribution in excess of $300.00 to a can- didate for a single election contest. No candidate shall solicit or accept a contribution in excess of $300.00 from a contributor for a single election contest. A candidate may receive up to $300.00 (Revised 2/08) 2.52.050 Loans. A. A candidate shall not personally loan to his or her campaign funds, with the intent to receive repayment of those funds, an aggregate amount in excess of $5,000 for a single election contest. B. A loan or extension of credit shall be consid- ered acontribution from the maker of the loan or extender of credit and shall be subject to the contri- bution limit of $300.00 per person, pursuant to 2-7s 21-5 Chula Vista Municipal Code 2.5?.100 CVMC 2.52.040. The $300.00 contribution limit does not apply to loans made to a candidate for the purpose of a campaign by himself or herself or 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 candi- date is personally liable. (Ord. 3086 § 1, 2007). 2.52.060 Notice regarding personal funds. If a candidate spends or contributes personal funds of more than $5,000 aggregate, in connection with a campaign for a single election contest, a candidate shall do all of the following: A. Prior to spending or contributing the per- sonal funds, the candidate shall provide written notice of the candidate's intent to spend or contrib- ute more than $5,000 of personal funds to the City Clerk and all opponent candidates. The notice shall be delivered personally or sent by registered mail to the last known address of the opponent candi- dates as shown in the records of the City Clerk and shall specify the amount of personal Funds intended to be expended or contributed. The notice shall also provide the date the personal funds shall be depos- ited into the candidate's campaign contribution account, as required by CVMC 2.52.070(B). Sepa- rate notice is also required for every separate deposit of personal funds of any amount that is a contribution from a candidate to his or her cam- paign once the candidate has spent or contributed more than $5,000 in personal funds in connection with the campaign for a single election contest. B. The required notice shall be given no later than 21 days prior to the election, unless the expen- diture or contribution occurs during the 21 days preceding the election, in which case the required notice shall be provided 24 hours prior to deposit into the candidate's campaign contribution account. (Ord. 3086 § 1, 2007). 2.52.070 Campaign contribution account. A. The campaign contribution account required by Government Code Section 85201(a) shall be established at a financial institution located in San Diego County. B. All persona] funds to be expended or con- tributed by a candidate, including all loans of per- sonal funds, shall first be deposited in the candidate's campaign contribution account. (Ord. 3086 § 1, 2007). 2.52.080 Surplus campaign funds. A. Upon leaving any elected office, or at the end of the post-election reporting period following [he defeat of a candidate for elective office, which- ever occurs last, campaign funds under the control of a candidate shall be considered surplus cam- paign funds. B. Surplus campaign funds shall be used only for the following purposes: 1. To repay contributions, including loans to oneself up to an amount of $5,000. 2. To make a donation to any bona fide char- itable, educational, civic, religious, or nonprofit organization, where no substantial pan of the pro- ceeds will have a material financial effect on the candidate, any member of his or her immediate family, or his or her campaign treasurer. 3. To pay for professional services reason- ably required by the candidate or candidate-con- trolled committee to assist in the performance of its administrative functions, including payment for 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 for a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount. (Ord. 3086 § 1, 2007). 2.52.090 Return of prohibited contributions. A. A contribution need not be reported nor shall it be deemed accepted if it is not cashed, negoti- ated, or deposited and is returned to the contributor before the closing date of the campaign statement on which the contribution would otherwise be reported, as provided by the California Political Refotm Act. B. 1f a contribution is tendered and would be in violation of [his chapter, it shall be returned by the candidate to the contributor within 60 days of receipt by the candidate. (Ord. 3086 § 1, 2007). 2.52.100 Written solicitations by candidates. Any candidate making a written solicitation for a contribution for his or her campaign for City elec- tive office shall include the following written notice in no less than six point type on each such solicitation: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for City elective office to three hundred dollars per person. (Ord. 3086 § 1, 2007). 2-79 21-9 (Revised 2/08) z.sz.l to 252.110 Campaign statements. Each candidate shall Fle campaign statements with the City Clerk in the time and manner as required by the Political Reform Act of 1974 as amended (Government Code Section 84100 et seq.). Compliance with the requirements of that Act shall be deemed [o be compliance with this chapter. (Ord. 3086 § 1, 2007). 2.52.120 Contributions for legal defense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of a Councilmember, 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 admin- istrative prosecutorial action against said Coun- cilmember, Mayor, or candidate and not made or used for the purpose of aiding in the election of said Councilmember, Mayor, or candidate, and not made within (before or after) 100 days of an elec- tion in which the Councilmember, Mayor, or can- didate is competing for a seat or office, shall not be deemed to be a contribution for the purposes of this chapter. (Ord. 3086 § 1, 2007). 2.52.130 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 pre- scribed 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 persons and known com- mittees who have failed to file a document in the form and at the time required by state law. D. Report alleged violations of this chapter fi]ed pursuant to CVMC 2.52.140(E) and applica- ble state law 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 applica- ble state laws. (Ord. 3086 § 1, 2007). 252.140 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. The enforcement authority, as defined by this chapter, 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 CVMC to act as the enforcement authority 11 months prior to a general election. As part of the annual budget pro- cess, the City Council shall appropriate no less than $100,000 to fund the retention of special counsel to serve as the enforcement authority. These funds shall be separate from the City Attorney's budget and used solely for the investigation and prosecu- tion of alleged violations of this chapter. D. The City Attorney shall appoint a panel of no less than three attorneys to act as the enforce- ment authority. These attorneys shall be compen- sated by the City. Should the appointment of additional special counsel become necessary or appropriate, the City Attorney shall appoint such additional special counsel as may be required. A single member of the special counsel panel will be assigned to each case. Assignments will be made on a rotating basis. E. Complaints of violations of this chapter shall be submitted in writing, under penalty of perjury, by a resident of the City to the City Clerk. 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 forwazd the complaint to the enforcement authority 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 inter- ested parties shall be notified of the dismissal in writing. G. If probable cause is determined to exist, the enforcement authority shall take further investiga- tory 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 dis- cretion of the enforcement authority. The enforce- ment authority may also commence and prosecute any necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement or prosecution or action by the (Revised ?JOB) 2-80 21-~~ Chula Vista Municipal Code 2,52.160 enforcement authority shall be subject to the review or control of the City Attorney or City Council. I. The special counsel, serving as the enforce- ment authority, may investigate and may institute legal action to prevent further violations. The spe- cial counsel may decline to investigate if the alle- gation is also a violation of state law, and is the subject of a complain[ filed with the Fair Political Practices Commission, J. Criminal prosecution for violations of this chapter must be commenced within one year after the date on which the violation occurred. K. Civil prosecution for violation of this chap- ter must be commenced within four years after the date on which the violation occurred. No adminis- trative action alleging a violation of any of the pro- visions of this chapter shall be commenced more than five years after the date on which the violation occu~red.lf the person alleged to have violated a provision of this chapter engages in the fraudulent concealment of his or her acts or identity, the five- year period for administrative actions shall be tolled for the period of concealment. For purposes of this subdivision, "fraudulent concealment" means the person knows of material facts related to his or her duties under this chapter and knowingly conceals them in performing or omitting to per- formthose duties, for the purpose of defrauding the public of information to which it is entitled under this title. L. Special counsel, serving as the enforcement authority, shall be immune to liability for enforce- ment of chapter. (Ord. 3086 § I, 2007). chapter or the Political Reform Act, or who are compensated for services involving the planning, organization, or directing any activity regulated or required by this chapter or the Political Reform Act. D. Whether or not a violation is inadvertent, negligent, or deliberate, and the presence or absence of good faith shall be considered in apply- ing the remedies and sanctions of this chapter. Fur- ther, in determining the amount of civil 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. (Ord. 3086 § 1, 2007). 2.52.160 Severability. If any provision of [his chapter, or the applica- tion of any such provision to any person or circum- stances, 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 cir- cumstances 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. (Ord. 3086 § 1, 2007). 2.52.150 Penalties. A. Any person who knowingly or willfully vio- lates any provision of this chapter; who knowingly or willfully causes, solicits, advises, or participates with any other person to violate any provision of this chapter; or who knowingly or willfully 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 or causes any other person to violation any provision of this chapter shall be liable in a civil or administrative action brought by the enforcement authority for an amount not more than three times the amount the person failed to report properly or unlawfully con- tributed, expended, gave or received, or $5,000 per violation, whichever is greater. C. This section shall apply only to persons who have filing or reporting obligations under this 2-81 (Revised 2/08) 21-~~ /-~ft~eG~rn~- 2 Chapter 2.52 CAMPAIGN CONTRIBUTIONS Sections: 2.52.010 Purpose and intent. 2.52.020 Interpretation of this chapter. 2.52.030 Definitions. 2.52.040 Campaign contribution limits. 2.52.050 Loans. 2.52.060 Notice regarding personal funds. 2.52.070 Campaign contribution account. 2.52.080 Surplus campaign funds. 2.52.090 Return of prohibited contributions. 2.52.100 Written solicitations by candidates. 2.52.110 Campaign statements. 2.52.120 Contributions for legal defense. 2.52.130 Duties of City Clerk. 2.52.140 Enforcement. 2.52.150 Penalties. 2.52.160 Severability. 2.52.010 Purpose and intent. This chapter is intended to supplement the Political Reform Act of 1974 (California Government Code sections 81000 et seg) (the, "PRA"), and the implementing reuulations adopted by the Fair Political Practices Commission (the, "FPPC") (see. California Code of Regulations Title 2 Division 6, sections 18110 through 18997). All local candidates should be aware that they must comply with this Chapter 2.52, as well as the PRA and the FPPC regulations when participating in a local election campaign. Sections 81013 and 85703(a) of the PRA authorize the City Council to adopt contribution limitations and Rrohibitions for local elective office. In enacting this chapter, the City Council finds and declares that moderate monetazy 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 to serve the best interests of the citizens of this City-~a~sc=:~d 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 City Council in enacting this chapter: A. To preserve an orderly political forum in which individuals may express themselves effectively; B. To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections; 21-12 C. TO L•pivaroxrcvn+..:l...+: ,,.,~ 1. ..+:.. ...1 ....,:r .. «r~:1...+:...,~ 1.., :.,.]:. ,:,1....1.. 7~ g° Y° ~ extyprevent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for local elective office; 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 easier to understand. 2.52.020 Interpretation of this chapter. A. The terms and phrases in this chapter shall be defined as those terms and phrases are defined in the PRA° r ~ , n r n F , n~,l .. °..,1°a in ..............+ ~°a° o°,.+:°.. Q, nnn °+ °°° (see California Government Code sections 82000 through 82054), unless otherwise specified in this chapter. B. The terms of this chapter aze applicable to any contribution made to a candidate or candidate-controlled committee whether used by the candidate to finance a current campaign or to pay debts incurred in prior campaigns. C. Revisions to this chapter take effect on January 2, 2011r'°°°-~'~°~ " ''nn' and are applicable to all contributions received by candidates seeking City elective office ~ +1, ° °~°1 °1....r:,... „F r.,.,° ~nno .,,,,r any election which takes place thereafter that date. n a•a F r• 1°°«:.,° °Fr.,.° ..,..+:°:..°+:.,,.:.. +1,° ,. ~°1 oto,.r:,,.,_,.r ,...,° ~nn4 ~ r r a a 1, 11 1. A F Gn A°.... F..,.., +l,° °Ff ,.+:.,° .J.,r° °+°roA ;.. rh;~_ ~,.1..,..,,.ti,,.. s r ~ ,....+~: i„,+: ,...,.... °,]° ,. .°a .. r,. rl,v aFF ,.+:..,, ,l°+° „F +L,,. r ~ ° 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, engineering or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual aze "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 "Campaign statement" means the campaign statement required by the PRA (see. California Government Code sections 84200, et seq. ). ~E. "Candidate" means any individual seeking any City elective office, the candidate's campaign committee, committee(s) controlled by the candidate, and agents of the candidate. 21-13 F. "City elective office" means the offices held by the Mayor,--e~ members of the City Council, or the City Attorney. The "same City elective office," as that term is used in this chapterl3erein, means the specific Council seat numbered one, two, three, or four or the specific seat held by the Mayor as defined by Charter Section 300(C), or the specific seat held by the Citv Attomev. G. "Contribution" is defined in a manner identical with the definition found in Government Code Section 82015, contained within the Political Reform Act, and any related provisions in the California Code of Regulations. H. "Enforcement authority," under this chapter, means that special counsel appointed by the City Attorney pursuant to CVMC 2.52.140. I. "General election" is that election identified by Charter Section 900, which is combined with the state primary election. r "T a P ndent e3fpenditere ee~nrriittee" ' a F a >, n 1• , n r L,' 1. ...l,..lo ,. ..,..+ ^ .,.l:.l.,ro F « !`: r., ol~.t:.,, ,.fF...o :C YY YY~ r ~ f F ,] 1. ,7 1. ...7 e« ~l,e ^,..,~..,.1 ..f tt,e ,. «,:~too l,o ~o.i r ~e ^.-~: ,...1^« ^ .^,]:,l..re F « ^ !`: r., olo..r:..o ..Ff,^o T1.:^ a.,..~ ,.F ^~......:µ~e JIB. "Organization" means a proprietorship, labor union, firm, partnership, joint venture, syndicate, business, trust, company, corporation, association, or committee, including a political action committee. "Organization" does not include political parties. KL. "Person" means a natural individual. Lli4. "Political Reform Act" means the California Political Reform Act of 1974, as amended, found at Government Code Section 810 et seq., and includes regulations adopted by the Fair Political Practices Commission. Ml~l. "Single election contest" means either a general or special election. N8. "Special election" is as defined in Charter Section 901 11 1 « ~^^1 1 1, Tb.. l,,,l ,l l.,T ^..~1,.,«a.. ,.F tl.o !`L, ^.rto ,.f ^ .. 1., 2.52.040 Campaign contribution limits. A. No person, other than a candidate, shall make a contribution in excess of $300.00 to a candidate for a single election contest. No candidate shall solicit or accept a contribution in excess of $300.00 from a contributor for a single election contest. A candidate may receive up to $300.00 from a contributor in each of the general and special elections. The contribution limit in this subsection shall be adiusted bi-annually pursuant to subsection 2.52.040.D. B No political party committee as that term is defined in California Government Code section 85205 shall make a contribution in excess of $1,000.00 to a candidate for a single election contest No candidate shall solicit or accept a contribution in excess of $1 000 00 from a political party for a single election contest. A candidate may receive up to $1 000 00 from a political party in each of the general and special elections. The contribution limit in this subsection shall be adiusted bi-annually pursuant to subsection 2.52.040.D. C14. No organization shall make a contribution to any candidate or candidate- controlled campaign committee. This chapter shall not apply to contributions made to a committee that is organized solely for the purpose of supporting or opposing the 21-14 qualification for the ballot or adoption of one or more City measures. 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 the contribution is deemed bade by an organization, it is prohibited. !' TT ,7' ',7 1 t,' F • .1' '.1 Ir n4:« «41. ..1,.,t1mm.,L .1; ..~ -,7' 1 '1. 41+.~ «...«o ..F ,.«,.41. e« :«.1:.,:.1...,1 .. .«l.:«~4:..« ..F :«,7:.,:.7..,.1.. J Tl !` '1, L 1. 1...«,] ..«,l ..:C ..l...ll l,0 4..0..40.7 ., «n4e «4«:1,. d;nn J 1, 11 1, ,...40,7 .. l.e«,. 41.0 ,.l.e,.l... ., o .7...,.,.. «.~4olir_.,«.] .. «0,7 1.., 41.v .. as 7 i, '1, (`..«4«:1...4: .. 1.. .. L....1.~«.1 «.1 ,;f ~l...il 1,~ 4.. ,.40.1 n4e 'F t.' ,1 ' 4 ,.ho,.l, 1...4 «..0..0„40,1 ..,:41, 4..,,, ~ «,.4..r,,,. .. .~ ~.,___., _____ ______ ____ _______ ___ r_ ___- -_ _ _-- D The contribution limits set forth in this section shall be adjusted every odd- numbered year starting in 2013 The City Clerk shall adiust the contribution limits to reflect any changes in the Consumer Price Index for the San Diego area for the two-year period ending on December 31s` of the previous year. Adiustments shall be rounded to the nearest ten dollars The City Clerk shall publish a public notice of any adjustments by March ls` of each odd-numbered year or as soon as after as practicable following the Bureau of Labor Statistic's release of the applicable Consumer Price Index data. The adiustments shall Qo into effect as soon as the public notice is published but shall apply only to elections held in subsequent years. The adjustments shall not be construed to raise the contribution limits applicable to past elections or to special elections held in the same year that the limits are adiusted. E. No person shall make a contribution to any candidate and no such candidate shall accept from any person such a contribution sooner than 11 months preceding a single election contest. F. 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. G. A candidate may not solicit or accept contributions for a special election prior to the holding of the general election for that office. H. A candidate may carry over contributions raised in connection with one election for City elective office to pay campaign expenditures incurred in connection with a subsequent election for the same City elective office. I The contribution limitations of this section are not limitations on expenditures and shall not limit the expenditures by any candidate person or committee. 2.52.050 Loans. A. A candidate shall not personally loan to his or her campaign funds, with the intent to receive repayment of those funds, an aggregate amount in excess of $5,000 for a single election contest. B. 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 limit of $300.00 per person, pursuant to CVMC 2.52.040. The $300.00 contribution limit does not apply to loans made to a candidate for the purpose of a campaign by himself or herself or 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. 21-15 2.52.060 Notice regarding personal funds. If a candidate spends or contributes personal funds of more than $5,000 aggregate, in connection with a campaign for a single election contest, a candidate shall do all of the following: A. Prior to spending or contributing the personal funds, the candidate shall provide written notice of the candidate's intent to spend or contribute more than $5,000 of personal funds to the City Clerk and all opponent candidates. The notice shall be delivered personally or sent by registered mail to the last known address of the opponent candidates as shown in the records of the City Clerk and shall specify the amount of personal funds intended to be expended or contributed. The notice shall also provide the date the personal funds shall be deposited into the candidate's campaign contribution account, as required by CVMC 2.52.070(B). Separate notice is also required for every separate deposit of personal funds of any amount that is a contribution from a candidate to his or her campaign once the candidate has spent or contributed more than $5,000 in personal funds in connection with the campaign for a single election contest. B. The required notice shall be given no later than 21 days prior to the election, unless the expenditure or contribution occurs during the 21 days preceding the election, in which case the required notice shall be provided 24 hours prior to deposit into the candidate's campaign contribution account. 2.52.070 Campaign contribution account. t~The campaign contribution account required by Government Code Section 85201(a) shall be established at a financial institution located in San Diego County. 1 f 1 F.....,7,. ..1...11 {:....t ti,e ao ~:ro.7 tl.o ...1; ~_~to „v«: L...t: ,. «t - ,. fsC-ti~--~vca~. 2.52.080 Surplus campaign funds. A. Upon leaving any elected office, or at the end of the post-election reporting period following the defeat of a candidate for elective office, whichever occurs last, campaign funds under the control of a candidate shall be considered surplus campaign funds. B. Surplus campaign funds shall be used only for the following purposes: 1. To repay contributions, including loans to oneself up to an amount of $5,000. 2. To make a donation to any bona fide chazitable, educational, civic, religious, or nonprofit organization, where no substantial part of the proceeds will have a material financial effect on the candidate, any member of his or her immediate family, or his or her campaign treasurer. 3. To pay for professional services reasonably required by the candidate or candidate-controlled committee to assist in the performance of its administrative functions, including payment for attorney's fees for litigation that azises directly out of a candidate's activities or his or her status as a candidate, including, but not limited to, an 21-16 action to enjoin defamation, defense of an action brought for a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount. 2.52.090 Return of prohibited contributions. F tl. r.,te.,, o.,r ,. .. 1,:,.1, rl,o ,.,..,r«:l.,,r:,,,, ..,,7.7 .,*ho....;~o },.: « ..,...te,7 Y b ~ ^r 1~-If a contribution is tendered and would be in violation of this chapter, it shall be returned by the candidate to the contributor within 60 days of receipt by the candidate. 2.52.100 Written solicitations by candidates. Any candidate making a written solicitation for a contribution for his or her campaign for City elective office shall include the following written notice in no less than six point type on each such solicitation: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for City elective office to three hundred dollars per person.* *The dollar amount to be included in this Notice shall be amended bi-annually to reflect any CPI adiustment to the contribution limit made pursuant to 2.52.040.D. 2.52.110 Campaign Statements. Each candidate shall file campaign statements with the City Clerk in the time and manner as required by the Political Reform Act of 1974 as amended (Government Code Section 84100 et seq.) Compliance with the requirements of that Act shall be deemed to be compliance with this chapter. 2.52.120 Contributions for legal defense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of a Councilmember, 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 said 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. 2.52.130 Duties of Clerk. In addition to other duties required of the City Clerk under the terms of this chapter and City Charter, the Clerk shall: 21-17 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 persons and known committees who have failed to file a document in the form and at the time required by state law. D. Report alleged violations of this chapter filed pursuant to CVMC 2.52.140(E) and applicable state law 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. 2.52.140 Enforcement. A. The City Attomey shall not act as the enforcement authority as to^~t~:~s'igate-er presee~te 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 P~3'• B. The enforcement authority, as defined by this chapter, or the District Attomey shall investigate or prosecute alleged violations of this chapter. C. The City Attorney shall solicit proposals from attomeys in accordance with Section 503 of the City Charter and Chapter 2.56 CVMC to act as the enforcement authority I1 months prior to a general election. ^ ° ~°-' n°'1'° °~~~~^1 >,..a^°r ^^^°°°° '''° b r" ~- '1 >, n ,. 1°~~ rl.n., clnn nnn r., f,.,,l rl.o .aro..r:.,., „f r ~} ,~,~ ~.,,,~..~.. ,,.__.. _t,i,. ~,.,. __.._ ___ ____ _____ ____,___ __ _____ ____ ______ _- _ A 1. ,l r ...1 °,1 ..1 n1. F rl,° .. r: nr: „7 „r:.~. ,.F niln °a D. The City Attomey shall appoint a panel of no less than three attorneys to act as the enforcement authority. These attorneys shall be compensated by the City. Should the appointment of additional special counsel become necessary or appropriate, the City Attorney shall appoint such additional special counsel as may be required a single member of the special counsel panel will be assigned to each case. Assignments will be made on a rotating basis. E. Complaints of violations of this chapter shall be; °~in writing;; sworn under penalty of perjury by the complainant, who shall bed} a resident of the City; accompanied by proof that the complainant is a resident of the City' and submitted to the City Clerk. The complaint shall state a full recitation of all facts that are alleged to constitute a violation of this chapter. If a com laint does not comply with these requirements the City Clerk shall return the complaint to the complainant, with an explanation as to why it is insufficient for filing. F. The City Clerk shall forward the complaint to the enforcement authority 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. 21-18 G. If probable cause is determined to exist, the enforcement authority shall notify the City Attorney. If the enforcement authority determines that probable cause exists to t3nd that fliere was a knowin¢ or willful violation of this chapter, the City Attorney shall forward the complaint to the District Attorney for further handling. If the enforcement authority determines that probable cause exists to find that there was a ne ligent violation of this chapter the City Attorney shall forward the complaint to the special counsel who is next in the rotation of panel counsel to act as the enforcement authority and take further investigatory and procedural steps necessary to resolve the matter. H. Violations of this chapter that are not pursued by the District Attorneymay be pursued by the enforcement authority either through a civil or administrative action. ' '- a'~ -'«".~ ^F .w° ,.~F^_,.^...,.~..."«w^n«" The enforcement authority may also commence and prosecute any necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement of prosecution or action by the enforcement authority shall be subject to the review or control of the City Attorney or City Council. I. The special counsel, serving as the enforcement authority, may investigate and may institute legal action to prevent further violations. T''~° °~ °~°' ~^°' ^~ ^ a°^'~^°~^ irtvesFigate-Iif the allegation contained in the complaint is also a violation of state law, the special counsel shall not investigate but rather, shall forward the complaint °~-is-'a'~° ~~°^« ^F ° ^^--~~'^~~«'''°a ^^*''to the Fair Political Practices Commission. J. Criminal prosecution for violations of this chapter must be commenced within one yeaz after the date on which the violation occurred. K. Civil prosecution for violation of this chapter must be commenced within four years after the date on which the violation occurred. No administrative action alleging a violation of any of the provisions of this chapter shall be commenced more than five-four years after the date on which the violation occurred. If the person alleged to have violated a provision of this chapter engages in the fraudulent concealment of his or her acts or identity, the €x=efour-yeaz period for civil and administrative actions shall be tolled for the period of concealment. For purposes of this subdivision, "fraudulent concealment" means the person knows of material facts related to his or her duties under this chapter and knowing conceals them in performing or omitting to perform those duties, for the purpose of defrauding the public of information to which it is entitled under this title. L. Special counsel, serving as the enforcement authority, shall be immune to liability for enforcement of this chapter. M If after reviewing and/or investigating the complaint, the enforcement authority determines there is probable cause to find that the complainant knowingly or willfully filed a false complaint under this chapter the enforcement authority shall forward the complaint to the District Attorney for prosecution. 2.52.150 Penalties. A. Any person who knowingly or willfully violates any provision of this chapter; who knowingly or willfully causes, solicits, advises, or participates with any other person to violate any provision of this chapter; or who knowingly or willfully aids and abets any other person in the violation of this chapter, or who knowingly or willfully files a false cotn~laint under this chapter shall be guilty of a misdemeanor. 21-19 B. Any person who intentionally or negligently violates any provision of this chapter or causes any other person to violation any provision of this chapter, or who intentionally files a false complaint, shall be liable in a civil administrative action brought by the enforcement authority for an amount not more *'- "^ "•'^°^ ''^° ^ "'' '''° "° $500_0000 per violation, °`~~~"t°Yor complaint filed. Any amounts paid pursuant to this section shall be used to offset the costs of enforcing this chapter. However if it is determined that a complaint filed was wholely meritless the complainant may be liable in addition to civil administrative fines provided for herein, for damages in the amount of fees costs and other amounts suffered or incurred as a result of or arising out of the filing of such complaint. C. This section shall apply only to persons who have filing or reporting obligations under this chapter or the Political Reform Act, or who are compensated for services involving the planning, organization, or directing any activity regulated or required by this chapter or the Political Reform Act. D. Whether or not a violation is inadvertent, negligent, or deliberate, and the presence or absence of good faith shall be considered in applying the remedies and sanctions of this chapter. Further, in determining the amount of civil 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. 2.52.160 Severability. If any provision of this chapter, or the application of any such 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. 21-20 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.52, THE CITY'S CAMPAIGN CONTRIBUTION ORDINANCE WHEREAS, Chula Vista City Charter section 904 requires the City Council to "adopt reasonable regulations related to campaign contributions" in order to "avoid the potential for undue or improper influence over elected officials resulting from excessive campaign contributions;" and WHEREAS, in 1989, the City adopted Chula Vista Municipal Code Chapter 2.52, "Campaign Contributions," in compliance with the City's Charter requirements, and amended the Chapter to its current form in 2007; and WHEREAS, the City Council finds that limitations on campaign contributions have been found to lessen the appearance of and potential for corruption in the election process and the potential for undue or improper influence over elected officials; and WHEREAS, at the May 25, 2010, June 15, 2010 and October 12, 2010 City Council meetings, certain City Council members expressed concerns regarding the City's campaign ordinance, including the amount of City resources expended to investigate complaints filed under the ordinance, potential abuse of the ordinance, and potential duplication of efforts by the City and other agencies; and WHEREAS, the Council directed the City Attorney to review the ordinance and return to Council with a revised ordinance in response to the Council's comments; and WHEREAS, the City Attorney has undertaken a comprehensive review of the ordinance and has revised the ordinance accordingly; and WHEREAS, the City Charter Section 312(e) provides that ordinances may be amended by reenactment of the affected sections. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: 21-21 SECTION I. ACTION Chapter 2.52 of the Chula Vista Municipal Code is amended as follows: Chapter 2.52 CAMPAIGN CONTRIBUTIONS Sections: 2.52.010 Purpose and intent. 2.52.020 Interpretation of this chapter. 2.52.030 Definitions. 2.52.040 Campaign contribution limits. 2.52.050 Loans. 2.52.060 Notice regazding personal funds. 2.52.070 Campaign contribution account. 2.52.080 Surplus campaign funds. 2.52.090 Return of prohibited contributions. 2.52.100 Written solicitations by candidates. 2.52.110 Campaign statements. 2.52.120 Contributions for legal defense. 2.52.130 Duties of City Clerk. 2.52.140 Enforcement. 2.52.150 Penalties. 2.52.160 Severability. 2.52.010 Purpose and intent. This chapter is intended to supplement the Political Reform Act of 1974 (California Government Code sections 81000 et seg) (the "PRA") and the implementing regulations adopted by the Fair Political Practices Commission (the "FPPC"1 (see California Code of Regulations Title 2 Division 6 sections 18110 through 189971. All local candidates should be aware that they must comply with this Chapter 2.52, as well as the PRA and the FPPC regulations when participating in a local election campaign. Sections 81013 and 85703(a) of the PRA authorize the City Council to adopt contribution limitations and prohibitions for local elective office. In enacting this chapter, the City Council finds and declazes that moderate monetary contributions to political campaigns aze 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 to serve the best interests of the citizens of this City-a~~ 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 City Council in enacting this chapter: A. To preserve an orderly political forum in which individuals may express themselves effectively; 21-22 B. To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections; C. To enl-y~revent corruption and avoid the appearance of corruption by regulating campaign contributions to candidates for local elective office; 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 easier to understand. 2.52.020 Interpretation of this chapter. A. The terms and phrases in this chapter shall be defined as those terms and phrases are defined in the PRAD ' ~ ~ ' ° ` ^ ` ~ ' °~" '' `' ~~""°'"'""°"` r~ o e ~ nnn °.~° y~lsee California Government Code sections 82000 through 82054), ~~~~.., unless otherwise specified in this chapter. B. The terms of this chapter are applicable to any contribution made to a candidate or candidate-controlled committee whether used by the candidate to finance a current campaign or to pay debts incurred in prior campaigns. C. Revisions to this chapter take effect on January 2, 2011r' '~ " ''-nn', and are applicable to all contributions received by candidates seeking City elective office in ,ten > > o r ~nn4 .,.,a any election which takes place hereafter that date. a a ' b • b b e b 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, 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 o£ 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 "Campaign statement" means the campaign statement required by the PRA (see California Government Code sections 84200, et seq.). DE. "Candidate" means any individual seeking any City elective office, the candidate's campaign committee, committee(s) controlled by the candidate, and agents of the candidate. 21-23 ..~,.. r" .. H,o ,.r..ro., .,r .,-h;,.h r N .r .,r ,.r: ,..,t.i~ ~ r a ~11~ '1 1'a a 1 1, Boa 1... ~f.,fo 1...., F. "City elective office" means the offices held by the Mayor.-er members of the City Council or the City Attorney. The "same City elective office," as that term is used in this chapterherei~3, means the specific Council seat numbered one, two, three, or four or the specific seat held by the Mayor as defined by Charter Section 300(C), or the specific seat held by the City Attorney. G. "Contribution" is defined in a manner identical with the definition found in Government Code Section 82015, contained within the Political Reform Act, and any related provisions in the California Code of Regulations. H. "Enforcement authority," under this chapter, means that special counsel appointed by the City Attorney pursuant to CVMC 2.52.140. I. "General election" is that election identified by Charter Section 900, which is combined with the state primary election. .~~ .i .1' •L+,. .104:..3 11 a 1. +l.o .. ...7:.1.,t Jl~. "Organization" means a proprietorship, labor union, firm, partnership, joint venture, syndicate, business, trust, company, corporation, association, or committee, including a political action committee. "Orgaziizatiori' does not include political parties. KE. "Person" means a natural individual. LA4. "Political Reform Act" means the California Political Reform Act of 1974, as amended, found at Government Code Section 810 et seq., and includes regulations adopted by the Fair Political Practices Commission. MN. "Single election contest" means either a general or special election. N_9. "Special election" is as defined in Charter Section 901-a~-a'r1-rah=~-.~==sue 1 r• 1 - 1. 1, la h ,...«1.,...:.. ,.c.l,o rh.,..,._ ,. ,.r.,.,., 1"W. 2.52.040 Campaign contribution limits. A. No person, other than a candidate, shall make a contribution in excess of $300.00 to a candidate for a single election contest. No candidate shall solicit or accept a contribution in excess of $300.00 from a contributor for a single election contest. A candidate may receive up to $300.00 from a contributor in each of the general and special elections. The contribution limit in this subsection shall be adiusted bi-annually pursuant to subsection 2.52.040.D. B No Qolitical party committee as that teen is defined in California Goverment Code section 85205 shall make a contribution in excess of $1 000.00 to a candidate for a single election contest No candidate shall solicit or accept a contribution in excess of $1 000 00 from a political party for a single election contest. A candidate may receive up to $1 000 00 from a political party in each of the general and special elections. The contribution limit in this subsection shall be adiusted bi-annually pursuant to subsection 2.52.040.D. 21-24 Clq. No organization shall make a contribution to any candidate or candidate- controlled campaign committee. This chapter shall not apply to contributions made to a committee that is organized solely for the purpose of supporting or opposing the qualification for the ballot or adoption of one or more City measures. 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 the contribution is deemed bade by an organization, it is prohibited. b -,t' 1 'i. rl ,.4'....,.rl. e. :«.1;..:.7.,1 .. «..h;..~r:,.« ,.F:«,t:.:.7.,..1,. ~ e D b i 7, 'i, r r :>,«.: ,. 1.. 1....i..,«,] «,7 ,;f ~h X11 l~ rte..+e.l ~*~ 'F L.' .l ' ,.l,o.-L l...r « e«re,l .,.: rl~ r..... o .,or.,:o~ D The contribution limits set forth in this section shall be adjusted every odd- numbered year starting in 2013 The City Clerk shall adiust the contribution limits to reflect any chances in the Consumer Price Index for the San Dieeo area for the two-vear period ending on December 3155 of the previous vear. Adiustments shall be rounded to the nearest ten dollars The City Clerk shall publish a public notice of any adjushnents by March 1~` of each odd-numbered vear or as soon as afrer as practicable, following the Bureau of Labor Statistic's release of the applicable Couswner Price Index data. The adjustments shall Qo into effect as soon as the public notice is published but shall apply only to elections held in subsequent yews The adiustments shall not be construed to raise the contribution limits applicable to mast elections or to special elections held in the same wear that the limits are adjusted. E. No person shall make a contribution to any candidate and no such candidate shall accept from any person such a contribution sooner than 11 months preceding a single election contest. F. A contribution for an election may be accepted by a candidate afrer 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. G. A candidate may not solicit or accept contributions for a special election prior to the holding of the general election for that office. H. A candidate may carry over contributions raised in connection with one election for City elective office to pay campaign expenditures incurred in connection with a subsequent election for the same City elective office. I The contribution limitations of this section are not limitations on expenditures and shall not limit the expenditures by any candidate person or committee. 2.52.050 Loans. A. A candidate shall not personally loan to his or her campaign funds, with the intent to receive repayment of those funds, an aggregate amount in excess of $5,000 for a single election contest. B. 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 limit of $300.00 per person, pursuant to CVMC 2.52.040. The $300.00 contribution limit does not apply to 21-25 loans made to a candidate for the purpose of a campaign by himself or herself or 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. 2.52.060 Notice regarding personal funds. If a candidate spends or contributes personal funds of more than $5,000 aggregate, in connection with a campaign for a single election contest, a candidate shall do all of the following: A. Prior to spending or contributing the personal funds, the candidate shall provide written notice of the candidate's intent to spend or contribute more than $5,000 of personal funds to the City Clerk and all opponent candidates. The notice shall be delivered personally or sent by registered mail to the last known address of the opponent candidates as shown in the records of the City Clerk and shall specify the amount of personal funds intended to be expended or contributed. The notice shall also provide the date the personal funds shall be deposited into the candidate's campaign contribution account, as required by CVMC 2.52.070(B). Separate notice is also required for every separate deposit of personal funds of any amount that is a contribution from a candidate to his or her campaign once the candidate has spent or contributed more than $5,000 in personal funds in connection with the campaign for a single election contest. B. The required notice shall be given no later than 21 days prior to the election, unless the expenditure or contribution occurs during the 21 days preceding the election, in which case the required notice shall be provided 24 hours prior to deposit into the candidate's campaign contribution account. 2.52.070 Campaign contribution account. The campaign contribution account required by Government Code Section 85201(a) shall be established at a financial institution located in San Diego County. 1 F - 1 C .J 7 11 F. ~+ l.o .7e :ro.l r1, ,]',] ~ ..f..: L,..ti.. Y b aativvrcr 1 2.52.080 Surplus campaign funds. A. Upon leaving any elected office, or at the end of the post-election reporting period following the defeat of a candidate for elective office, whichever occurs last, campaign funds under the control of a candidate shall be considered surplus campaign funds. B. Surplus campaign funds shall be used only for the following purposes: 1. To repay contributions, including loans to oneself up to an amount of $5,000. 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 the candidate, any member of his or her immediate family, or his or her campaign treasurer. 3. To pay for professional services reasonably required by the candidate or candidate-controlled committee to assist in the performance of its administrative functions, including payment for attorney's fees for litigation that arises directly out of a 21-26 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 for a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount. 2.52.090 Return of prohibited contributions. n n .~ a w .a a I4-If a contribution is tendered and would be in violation of this chapter, it shall be returned by the candidate to the contributor within 60 days of receipt by the candidate. 2.52.100 Written solicitations by candidates. Any candidate making a written solicitation for a contribution for his or her campaign for City elective office shall include the following written notice in no less than six point Type on each such solicitation: NOTICE The City of Chula Vista Municipal Code limits contributions to campaigns for City elective office to three hundred dollars per person. *The dollar amount to be included in this Notice shall be amended bi-annually to reflect any CPI adiustment to the contribution limit made pursuant to 2.52.040.D. 2.52.110 Campaign Statements. Each candidate shall file campaign statements with the City Clerk in the time and manner as required by the Political Reform Act of 1974 as amended (Government Code Section 84100 et seq.) Compliance with the requirements of that Act shall be deemed to be compliance with this chapter. 2.52.120 Contributions for legal defense. Notwithstanding anything contained herein to the contrary, a payment to or for the benefit of a Councilmember, 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 said 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. 2.52.130 Duties of Clerk. 21-27 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 persons and known committees who have failed to file a document in the form and at the time required by state law. D. Report alleged violations of this chapter filed pursuant to CVMC 2.52.140(E) and applicable state law 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. 2.52.140 Enforcement. A. The City Attorney shall not act as the enforcement authority as torteFiavestigate-eF preseeate 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 P~Y• B. The enforcement authority, as defined by this chapter, or the District Attorney 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 CVMC to act as the enforcement authority 11 months prior to a general election. ^ -°-' °"''° °~~~~°' ''~"'"°' """'-e~, `-'-=- b . ..i,. .. D. The City Attorney shall appoint a panel of no less than three attorneys to act as the enforcement authority. These attorneys shall be compensated by the City. Should the appointment of additional special counsel become necessazy or appropriate, the City Attorney shall appoint such additional special counsel as may be required a single member of the special counsel panel will be assigned to each case. Assignments will be made on a rotating basis. E. Complaints of violations of this chapter shall be: snl~itted-in writing;; sworn under penalty of perjury by the complainant, who shall be13y a resident of the City; accompanied by proof that the complainant is a resident of the Citv: and submitted to the City Clerk. The complaint shall state a full recitation of all facts that aze alleged to constitute a violation of this chapter. If a complaint does not comply with these requirements the City Clerk shall return the complaint to the complainant with an explanation as to why it is insufficient for filing. F. The City Clerk shall forwazd the complaint to the enforcement authority within five working days of receipt for a probable cause determination. If no probable cause is 21-28 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, the enforcement authority shall noti the City Attorney If the enforcement authority determines that probable cause exists to find that there was a knowine or willful violation of this chapter the City Attorney shall forward the complaint to the District Attorney for further handline If the enforcement authority determines that probable cause exists to find that there was a neeli~ent violation of this chapter the Citv Attorney shall forward the complaint to the special counsel who is next in the rotation of panel counsel to act as the enforcement authority and take further investigatory and procedural steps necessary to resolve the matter. H. Violations of this chapter that are not pursued b~he District Attorney may be pursued by the enforcement authority either through a civil or administrative action.e ' ~ ''~ ° '' `'• '•` ^'''^^'Y- The enforcement authority may also commence and prosecute any necessary administrative proceedings or civil litigation to compel compliance with this chapter. No enforcement of prosecution or action by the enforcement authority shall be subject to the review or control of the City Attorney or City Council. I. The special counsel, serving as the enforcement authority, may investigate and may institute legal action to prevent further violations. T'• ~°' ^^""°°' "'"" a,."li"° `" ~r---_- _-_---- ----~ , ~~a-=^a~Itf the allegation contained in the complaint is also a violation of state law, the a :,. a,o ~ecial counsel shall not investigate but rather shall forward the complaint ~~~_~ ~,' ~ ° °^^-^'°:^* aioa ..,:.wto the Fair Political Practices Commission. J. Criminal prosecution for violations of this chapter must be commenced within one yeaz after the date on which the violation occurred. K. Civil prosecution for violation of this chapter must be commenced within four years after the date on which the violation occurred. No administrative action alleging a violation of any of the provisions of this chapter shall be commenced more than frvve-four years after the date on which the violation occurred. If the person alleged to have violated a provision of this chapter engages in the fraudulent concealment of his or her acts or identity, the €wefour-year period for civil and administrative actions shall be tolled for the period of concealment. For purposes of this subdivision, "fraudulent concealment" means the person knows of material facts related to his or her duties under this chapter and knowingly conceals them in performing or omitting to perform those duties, for the purpose of defrauding the public of information to which it is entitled under this title. L. Special counsel, serving as the enforcement authority, shall be immune to liability for enforcement of this chapter. M If after reviewin and/or investigating the complaint the enforcement authority determines there is probable cause to tlnd that the complainant knowingly or willfully filed a false complaint under this chapter the enforcement authority shall forward the complaint to the District Attorney for prosecution. 2.52.150 Penalties. A. Any person who knowingly or willfully violates any provision of this chapter; who knowingly or willfully causes, solicits, advises, or participates with any other person to violate any provision of this chapter; or who knowingly or willfully aids and abets any 21-29 other person in the violation of this chapter, or who knowingly or willfully files a false complaint under this chapter shall be guilty of a misdemeanor. B. Any person who intentionally or negligently violates any provision of this chapter or causes any other person to violation any provision of this chapter, or who intentionally tiles a false complaint, shall be liable in a civil administrative action brought by the enforcement authority for an amount not more ''°~ ''~~°° `~~°~ "'° ° ~^` '''° ^ _°~__ $500_00;000 per violation, ~~ "~^''°~ °" '^ ^'°'`°'or complaint tiled. Any amounts paid pursuvit to this section shall be used to offset the costs of enforcing this chapter. However if it is determined that a complaint filed was wholely meritless, the complainant may be liable in addition to civil administrative fines provided for herein, for damages in the amount of fees, costs and other amounts suffered or incun-ed as a result of or arising out of the filing of such complaint. C. This section shall apply only to persons who have filing or reporting obligations under this chapter or the Political Reform Act, or who aze compensated for services involving the planning, organization, or directing any activity regulated or required by this chapter or the Political Reform Act. D. Whether or not a violation is inadvertent, negligent, or deliberate, and the presence or absence of good faith shall be considered in applying the remedies and sanctions of this chapter. Further, in determining the amount of civil 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. 2.52.160 Severability. If any provision of this chapter, or the application of any such 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 IL EFFECTIVE DATE. This ordinance will take effect and be in force thirty days after final passage. Approved as to form by i /, r Bart iesfeld ~ln City A orney 21-30 Blank 17 J.J.' h onaJ tfLfOrmaJ<.-fTr\ 1100-1 Page 1 of 1 Donna Norris //41Jl ~{ .JJI2X€D/D From: Glen Googins [grglaw@cox.net] Sent: Tuesday, November 23, 2010 2: 1 0 PM To: ccox@chulavistca.gov; John McCann; Steve Castaneda; Rudy Ramirez; Pamela Bensoussan Cc: Bart Miesfeld; Jim Sandoval; Donna Norris Subject: Proposed Revisions to Campaign Ordinance -- Request that No Action be Taken Tonight Dear Mayor and Council: Item 21 on tonight's agenda is a proposed revision to the City's Campaign Contribution Ordinance, CVMC Chapter 2.52. I respectfully request that you take no action on this item at this time. This would allow me to more fully review the proposed changes, and, if appropriate, to make further recommendations. I will be seated as your City Attorney on December 7th and would intend to address this item promptly thereafter. Very truly yours, Glen Googins, City Attorney elect 11/23/2010