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HomeMy WebLinkAbout2010/12/14 Item 14 CITY COUNCIL AGENDA STATEMENT i'~'<Iit:,,".:~ '~: ,.~?<.~.., ~\~ CITY OF .~~ (HULA VISTA SUBMITTED BY: REVIEWED BY: ORDINANCE AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.52, THE CITY'S CAMPAIGN CONTRIBUTION ORDINANCE GLEN GOOGINS, CITY ATTORNE~ CITY ATTORL'iEY ITEM TITLE: 4/5THS VOTE: YES D NO 0 SUMMARY At the November 23, 2010 City Council meeting, the City Attorney presented the Council with proposed amendments to the City's Campaign Contributions ordinance. The proposed amemlments were brought forward in response to previous City Council actions directing the City Attorney's office to: (i) identify and delete the provisions that were duplicative of the Political Reform Act ("PRA"); (ii) make updates necessitated by recent case law; and (iii) revise the enforcement section in response to Council comments. During the meeting, the Council made numerous revisions to the proposed ordinance. As a result, we have brought the item back to Council, on first reading, for further consideration. The City Attorney's office has prepared two alternative ordinances for the Council's consideration. The tirst, Ordinance A, contains many of the amendments previously presented to, and requested by, the Council, with some additional modifications recommended by the City Attorney. The second, Ordinance B, contains additional amendments that the Council has requested but which the City Attorney is reconunending not be adopted at this time, without further legal review. ENVIRONMENT AL 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. 14-1 DECEMBER 14, 2010, Item It Page - 2 - RECOMMENDATION Council adopt Ordinance A and place it on tlrst reading. If Council deems it appropriate, Council may also request additional research, analysis and recommendations on those issues not addressed in Ordinance A. BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION 1. 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. I Chula Vista Municipal Code ("CVMC") 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 Conncil 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 primarily 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. The proposed amendments were presented to the Council at the November 23, 2010 meeting. The Council requested 1 Chula Vista City Charter, Sec. 904 14-2 DECEMBER 14: 2010, Item~ Page - 3 - numerous changes to the proposed amemled ordinance. In light of the significant revisions made by Council, we are bringing this item back to Council, on a tirst reading. Due to our office's continuing concerns regarding the legality of some of the proposed changes, we are presenting tow alternative amended ordinances for Council's consideration. II. ORDINANCE A In our previous staff reports, we detailed our comparison of the City's Campaign Contribution to the PRA, the amendments we recommended in order to update the ordinance in response to recent court decisions; revisions to the Enforcement and Penalty sections of the ordinance that were requested by the Council. Ordinance A contains revisions that would: (i) eliminate the provisions that duplicate the PRA; (ii) update the ordinance in conformance with recent case law; and (iii) make certain amendments to the Enforcement and Penalty sections. A. PRA Duplication In Amendment A, the following provIsIons have been deleted because they duplicate the PRA: 2.52.070.B. (Prohibition against making a contribution in another's name) (Prohibition against aggregating husband and wife contributions) (Campaign contribution account personal funds to be deposited) (Surplus Campaign Funds) (Return of contributions) (Campaign statements) 2.52.040.C. 2.52.040.D. 2.52.080 2.52.090.A. 2.52.110 In addition, we added some language to the ordinance in response to Council members' request that the ordinance inform local candidates of applicable FPPC provisions. Specitically, we added an opening paragraph in Section 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. B. Legal Updates Amendment A also includes the following legal updates: 1. Basis for Limiting Campaign Contributions Limitations on campaign contributions are 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. FEe (2008) 554 U.S. 724; Buckley v. Valeo (1976) 424 U.S.!.] As a result, we have added language regarding the City's interest in preventing corruption and the appearance of corruption in its local elections. 14-3 DECEMBER 14, 2010, Item N- . - Page - 4 - 2. 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 o/San Diego, et al. (S.D. Ca!. Feb. 16,2010) 706 F.Supp.2d 1065; Thalheimer, et al. v. City o/San Diego (S.D. Ca!. Sep. 3, 2010) _ F. Supp.2d _,2010 U.S.Dist. LEXIS 92090.] As a result, we added language to the ordinance to clearly 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. 3. Limitations on Expenditures Although the Supreme Court has approved limitations on campmgn contributions, subject to strict scrutiny, it has rejected such limitations on campaign expenditures. It affirmed this position in a decision earlier this year 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. 4. Application to Elected City Attorney Finally, we revised the ordinance to include the City Attorney in the definition of "City elective oftice." This change was made in response to the Charter amendment making the City Attorney an elected, rather than appointed, position. C. Enforcement and Penalty Provisions I. 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, 14-4 DECEMBER 14,2010, ItemK Page - 5 - 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 separately. Specifically, the first panel counsel would be responsible for reviewing the complaint and making a probable cause determination. Ifhe or she determines that, on the face of the complaint, no probable cause exists to determine that a violation occurred, 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 ("DA") for handling. If the enforcement authority determines there is probable cause to find there was a knowing, willful or negligent violation of the chapter, the complaint will be returned to the City Attorney, who will forward it to the next attorney in the panel counsel rotation for investigation and further handling. This represents a change from the ordinance previously presented, in that, if the initial review results in a probable cause determination of a willful or knowing violation, the complaint would be forwarded to both the DA and the next enforcement authority. This change was intended to prevent complaints from "falling through the cracks" if the DA determines they don't merit prosecution as misdemeanors, but they do, in fact, constitute negligent violations of the ordinance. 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. 2. Reliance on Other Agencies In response to Council member concerns regarding 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 allege knowing or willful violations of the ordinance, and that complaints alleging violations of the PRA will be sent to the FPPC for handling. Notwithstanding this, state law and the City Charter both confer upon the elected City Attorney concurrent jurisdiction with the DA to prosecute violations of state laws occurring within the City limits. Nothing in the ordinance obviates that authority. Thus, to the extent violations of state law are alleged in a complaint, the City Attorney may exercise this concurrent jurisdiction. 3. Funding We also eliminated the $100,000 appropnatlOn mandate. We are recommending this be removed because we believe it may run afoul of case law which holds that a sitting council cannot bind the hands offuture councils with respect to budget appropriations, in the absence of charter authorization. Although we are recommending that the mandatory appropriation language be removed, we believe that enforcement must be funded so as not to essentially nullify the ordinance. Consequently, if the amended ordinance is adopted, as 'part of the annual City budget process, the City Attorney will begin providing the input to the Finance Director to help determine the amount to be budgeted for the enforcement costs associated with the ordinance. The budgeted amount will be reviewed and adjusted annually, based on information regarding past enforcement 14-5 DECEMBER 14, 2010, ItemK Page - 6 - costs, pending complaints, and other relevant information which may be considered by the City Attorney. On a related note, we have reviewed the costs incurred by the City for investigating complaints of alleged violations of Chapter 2.52 over the past five years. During that time, seven complaints have been flied. The City has incurred a total of $76,651.05 in investigative costs associated with the complaints. This equates to: $15,330.21 per year; and $10,950.15 per investigation. 4. Penalties At the Council's request, the ordinance presented reduces the penalty amounts from the previous maximum fine of $5,000. Specifically, section 2.52.150.B. now reflects a maximum penalty of $500, per violation, for willful or intentional violations; and $250 maximum per violation for negligent violations of the ordinance. Also, for Council's information, we have reviewed the ordinances of several other cities and compiled summarized the penalty amounts contained in their campaign ordinances in the chart below: City Civil or Administrative Penalty Criminal Penalty Alameda Maximum of $1 ,OOO/violation Greater of 3x amount at Issue or $I,OOO/conviction Coronado Lesser of 3x amount at Issue or Punishable as misdemeanor. No $1,000 additional penalties. Cupertino None. Punishable as misdemeanor. No additional penalties. Del Mar Greater of 3x amount at Issue or Punishable as misdemeanor or $1,000 infraction. No additional penalties. Encinitas None. None. Escondido None. Punishable as misdemeanor. Minimum $1,000 fine for willful or knowing failure to report. Lemon Amount of money at Issue paid to None. Grove general fund San Diego Maximum $5,000 Maximum $1,000 San Greater of 3x amount at Issue or Punishable as misdemeanor. Marcos $IO,OOO/violation Greater of 3x amount at issue or $IO,OOO/conviction. Santee None. Punishable as misdemeanor, plus minimum $500 fine. Solana $500-$5,000 per violation Punishable as misdemeanor or Beach . infraction, plus $500 mmlmum 14-6 DECEMBER 14, 2010, Item IIf Page - 7 - Beach Maximmn total: $50,000 fine for willful or knowing false Pay amount at issue to general fund report. Compared to other cities, the penalties in the existing ordinance appear to be on the high end in this area, suggesting some adjustment is appropriate. The City Attorney recommends that the City Council consider a lesser reduction in order to preserve the deterrent value of the penalty. 5. Other Changes Made Since Last Council Meeting In addition to the changes detailed above, we made other modifications requested by Council at the November 23rd meeting. Those include: (i) adding a reference to Government Code section 85205 to define "political parties" in section 2.52.030.1.; definition of "Organization;" (ii) in section 2.52.140.D., clarified that the Enforcement Authority shall be paid only for work performed under the ordinance; and (iii) added a statement to section 2.52.l40.F. requiring that the enforcement authority make the probable cause determination within 30 calendar ofreceiving the complaint. Ordinance A does not include the changes Council previously requested regarding penalizing the filing of a false complaint under the ordinance, or the change from "City Attorney" to "Board of Ethics" in sections 2.52.140.C. and D., as explained in detail in section III., below. A copy of the proposed Amended Ordinance A, reflecting the above detailed revisions in a redline/strikeout format, is attached as Attachment 1 to this Agenda Statement for the Council's consideration. III. ORDINANCE B We have also prepared a second ordinance for the Council's consideration tonight, "Ordinance B." That ordinance incorporates all of the revisions in Ordinance A, as well as the revisions to sections 2.52.140 and 150 regarding the filing of a false complaint. The ordinance does not contain the change from "City Attorney" to "Board of Ethics" in sections 2.52.140.C. and D." The reasons for this are detailed below. Amended Ordinance B is attached as Attachment 2 to this Agenda Statement. A. False Complaints As written, the ordinance requires that the complaint be sworn under penalty of perjury before it can be filed. If it is not, the complaint will be rejected. (See, section 2.52.140.E.) Perjury is a state crime punishable by two to four years imprisonment. (Cal. Pen. Code !i118, 126.) Thus, anyone who willingly files a complaint stating matters which he or she knows to be false, could be charged with perjury. That would be a violation of the state Penal Code and within the jurisdiction of the District Attorney to prosecute. Subornation of perjury (willfully procuring another person to commit perjury) is also punishable as perjury. (Cal. Pen. Code !i 127.) Thus, the filing of a false complaint, under penalty of perjury, constitutes a criminal act punishable by imprisonment. In addition, we revised section 2.52.140.M. (in Ordinance A) to require that, if the enforcement authority or DA determines there was no violation, the enforcement authority must review and investigate to determine if probable cause exists to determine 14-7 DECEMBER 14,2010, ItemK Page - 8 - that the complainant intentionally filed a false complaint and, if so, it must be forwarded to the District Attorney. By adding the requirement that a complaint resulting in no violation be investigated and, if warranted, prosecuted for perjury, we believe that Ordinance A accomplishes the Council's goal of dissuading false complaints, and punishing those that intentionally file false allegations. We believe that Ordinance A presents a substantially better and more legally defensible approach on this issue than Ordinance B. Ordinance B makes the knowing or willful filing of a false complaint a criminal misdemeanor. It also imposes penalties for the filing of a complaint that is "wholly meritless." However, there are no parameters for how these will be determined or who will make the determinations. Thus, as applied, this approach could be highly vulnerable to due process and constitutional challenges. In addition, no other campaign ordinance that we surveyed included separate local law penalties for false complaints. Utilizing the existing state law standards for the crime of perjury to accomplish Council's same goal, employs the legal standards already in place for that crime and carries the weight of up to four years imprisonment. With the revisions to Ordinance A, the enforcement authority is required to investigate for perjury as to any complaint that does not result in a violation. Thus, we recommend that the Council adopt Ordinance A. B. Board of Ethics At the November 2yd meeting, the Council directed that CVMC sections 2.52.140B. and C. be revised to replace, "City Attorney," with "Board of Ethics." City Attorney staff voiced concern during that meeting that such a revision may be in violation of the City's charter and municipal code. Our subsequent research has confirmed that concern. The City's Board of Ethics is governed by CVMC Chapter 2.28. That code defines the Board's purpose as follows: "[T]o advise the city council of the City ofChula Vista on all matters relating to potential unethical conduct and to make such necessary and appropriate recommendations to the city council for the implementation of the code of ethics and amendments thereto, which may become necessary from time to time. This board will serve as a hearing body on all such matters and shall render impartial and objective opinions and insure that those covered by this chapter are appropriately informed." Nothing in the chapter authorizes the Board to hire outside counsel on behalf of the City. While the ordinance could be amended to accomplish this purpose, doing so would be in violation of the charter. The charter only authorizes the City Council to empower the City Attorney to employ special legal counsel. It does not contain a similar authorization as to the Board of Ethics. In addition, this proposed change also appears to violate charter provisions designating the City Attorney as the prosecutor of local laws. As we believe such a designation of authority would be in violation of the City's charter, we have not included this revision in either Ordinance A or B. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated hy 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)(l), is not applicable to this decision. 14-8 DECEMBER 14,2010, ltemK Page - 9 - CURRENT YEAR FISCAL IMP ACT 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 budget mandate of $100,000 to investigate alleged violations of the Campaign Contributions Ordinance would result in a reduced budgetary allocation of $100,000, less the amount included in the budget to cover estimated costs for any given year. The amount to be budgeted would be identified by the City Attorney on a year-to- year basis. ATTACHMENTS Attachment 1 - Amended Ordinance A - Redline Attachment 2 - Amended Ordinance B - Redline Prepared by: Jill D.S Maland, Assistant City Attorney, Office of the City Attorney 14-9 Chula Vista Municipal Code 2.52.030 ~ ~ Sections: 2.52.010 2.52.020 2.52.030 2.52.040 2.52.050 2.52.060 2.52.070 2.52.080 2.52.090 2.52.100 2.52.110 2.52.120 2.52.130 2.52.140 2.52.150 2.52.160 Chapter 2.52 CAMPAIGN CONTRIBUTIONS' Purpose and intent. Interpretation of this chapter. Definitions. Campaign contribution limits. Loans. Notice regarding personal funds. Campaign contribution account. Surplus campaign funds. Return of prohibited contributions. Written solicitations by candidates. Campaign statements. Contributions for legal defense. Duties of City Clerk. Enforcement. Penalties. Severability. * Priorlegislation: Ords. 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 declares that moderate monetary contributions to political campaigns are a legitimate form of par- 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 are 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). ~ \tJJI ~ - 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 are 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 effecti ve 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 6O-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). 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 Uagents." 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 8520l. 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- ment which, to the extent practicable, shall be sim- 14-1 0 2~77 (Revised 2/08) 2.52.040 ilar 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 specific 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- tical with the definition 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 CYMC 2.52.140. 1. "General election" is that election identified by Charter Section 900, which is combined with the state primary election. J. "Independent expenditure committee" is as defined in the Political Reform Act, which sup- ports or opposes in whole or in part a candidate for City elective office if contributions are made to said committee with the intent that they, or a com- parable amount of funds otherwise owned by, or under the control of, the committee be used to sup- port or oppose a particular candidate for a City elective office. TIris 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 Government 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 elections that may be held by authority of the Charter or of any law. (Ord. 3086 S I, 2007). 2.52.040 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 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 o.r 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 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 chcck 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. COrd. 3086 S I, 2007). ""'"' ~ 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 a contribution 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 '1 (Revised 2/08) 2-7114-11 - Chula Vista Municipal Code 2.52.100 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 expendcd 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 ~ I, 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 personal 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 contritmtion 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 the 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 part 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 S I, 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 Reform Act. B. 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. (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- ti ve 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). 2-19 14-12 (Revised 2/08) --. 2.52.110 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. (Ord. 3086 S 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 S 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. Detennine 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 filed pursuant to CYMC 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 perfonnance of the duties of the enforcement authority as prescribed in this chapter and applica- ble state laws. (Ord. 3086 S 1, 2(07). 2.52.140 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 alIeged 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 shalI 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 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 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 2/08) 2-80 14-13 Chula Vista Municipal Code 2.52.160 enforcement authority shall be subject to the review or control of the City Attorney or City Council. 1. 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 complaint 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. Ci viI 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 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 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 perfonning or omitting to per- form 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 enforce- ment of chapter. (Ord. 3086 ~ 1,2007). 2.52.150 Penalties. A. Any person who knowingly or willfully vio- 1ates 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 properiy 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 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 inadvenent, 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 this 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). 2-81 14-14 (Revised 21081 A ORDIN~NCE 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 intluence 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 intluence 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 etIorts 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 ofChula Vista does ordain as follows: SECTION I. ACTION Chapter 2.52 ofthe Chula Vista Municipal Code is amended as follows: 14-15 Sections: 2.52.010 2.52.020 2.52.030 2.52.040 2.52.050 2.52.060 2.52.070 2.52.080 2.52.090 2.52.1 00 2.5".110 2.52.120 2.52.130 2.52.140 2.52.150 2.52.160 2.52.010 A Chapter 2.52 CAMPAIGN CONTRIBUTIONS Purpose and intent. Interpretation of this chapter. Definitions. Campaign contribution limits. Loans. Notice regarding personal funds. Campaign contribution account. Surplus campaie;n fands. Return of prohibited contributions. Written solicitations by candidates. Campaie;n statement.~. Contributions for legal defense. Duties of City Clerk. Enforcement. Penalties. Severability. Purpose and intent. This chapter is intended to supplement. the Political Reform Act of 1974 (California Government Code sections 81000. et sell.) (the, "PRA"), and the implementing regulations adopted bv the Fair Political Practices Commission (the.. 'TPPC") (see, California Code of Regulations, Title 2, Division 6, sections 18110 through 18997). All local candidates should be aware that thev must complv with this Chapter 2.52. as well as the PRA and the FPPC regulations. when participating in a local election camnaign. Sections 81013 and 85703(a) of the PRA authorize the Citv Council to adont contribution limitations and prohibitions applicable to elections for local elective oftice. 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 to serve the best interests of the citizens of this City are serycd 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 ofticials. It is the purpose and intent of the City Council in enacting this chapter: A. To preserve an orderly political fornm 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; C. To prokbit contributions by ore;anizations and permit contribL:tions by individuals entyprcvent corruption and avoid the appearance of corruPtion bv regulating campaign contributions to candidates for local elective oftice; 14-16 A D. To provide full and fair enforcement of all the provisions ofthis chapter; and E. To encourage candidate adherence to election regulations by making them easier to understand. Nothing in this Chapter is intended to. and shall not be construed to. abrogate the authoritv conferred on the Citv Attorncv. bv state law and the Citv Charter. to exercise concurrent iurisdiction with the District Attornev with respect to the prosecution of violations of state laws within the Citv for offenses constitutinu misdemeanors. 2.52.020 Interpretation of this chapter. A. The terms and phrases in this chapter shall be definedhave the same definitions given to them as tHose terms and phrases are detined in the PRAPolitical Reform /.ct of 197'1. as amended (Go';ernment Code, Section 81000 et seq.)(see. California Government Code sections 82000 through 82054) and the FPPC Re!lulations, 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 Februarv 10. 201lDecember 13,2007, and are applicable to all contributions received by candidates seeking City elective office in the general election of June 2008 and any election which takes place tflereafter that datc. ,'\ny candidate for City elective office participatin!; in the general election of June 2008 SHall ha';e .a brace period of 60 days from the etlective date, as stated in this subsection, to repay any campaign contributions made or received prior to the dfective date of the re'.isions in contlict with or in violation of any provisions of this chapter. ,,\ candidate repayin,; any campaign contributions or loans d~lring this 60 day grace period shall provide written notice to the City Clerk of the repayment within three busine:;s days. defined as Monde:)' tHroHbh Friday and e),cluding City holida)'.~, of the repayment. 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 01: 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. "Campaiun statement" means the campaign statement required bv the PRA (see. California Government Code sections 84200. el seq. ). f}.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. 14-17 A E. "City campai:;A statemeAt" moaAS the statement which, to the extent practicable, shall be similar to or eonsolidated with that reqHired by state law. F. "City elective office" means the offices held by the Mayor,-Bf' members of the City Council. or the City Attorney. The "same City elective officc," as that term is used in this chapterllereffi, means the specitlc Council seat numbered one, two, three, or four or the specific seat held by the Mayor as defined by Charter Section 300(CL or the SJlccific seat held by the City Attornev. 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. J. "Independent expenditure committee" is as defined in the Political Reform Act, which SHpports or opposes in whole or in part II candidate for City elective office if contriblliions are made to said committee with the intent that they, or a comparable amount of funds otherwise owned by, or under the control of, the committee be used to support or oppose a particular candidate for a City electi';e office. This type of committee is not controlled by the candidate. JK. "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 Jlolitical party committees, as that term is defIned in California Government Code section 85205. Kb. "Person" means a natural individual. l.M. "Political Reform Act" means the California Political Reform Act of 1974, as amended, found at Government Code Section 81000, et seg., and includes regulations adopted by the Fair Political Practices Commission. MW. "Single election contest" means either a general or special election. NG. "Special election" is ~detined in Charter Section 901 as all other manicipal elections that may be held by authority of the Charter or of any 1m\'. 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 person for a single election contest, A candidate may receive up to $300.00 from a personcontributor 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 $ LOOO.OO to a candidate for a sin!Lle election contest. No candidate shall solicit or accept a contribution in excess of $1,000.00 from a political party committee for a sin !LIe election contest. A candidate may receive UP to $1,000.00 trom a political party committee in each of the !Leneral and special elections. The contribution limit in this subsection shall be adiusted bi-annuallv pursuant to subsection 2.52.040.D. 14-18 A t.;:B. 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. C. No individual or combin:lction of il~dividuals acting jointly shall mal~e directly or indirectly a contribHtion in the name of another individual or combination of individuals. D. Contributions by a husband and wife shall be treated as separate contributions and shall not be ag,;rcgated where the checks are drawn separately and signeu by the spouse making the elll~tribution. Contributions by a husband and wife shall be treated as separate even if combined into one check but presented with two signatures. D. The contribution limits set forth in this section shall be adiusteu every odd- numbereu vcar. starting in 2013. The Citv Clerk shall adiust the contribution limits to reflect anv changes in the Consumer Price Index for the San Diego area for the two-vear periou ending on December 31 st of the previous vear. Adiustments shall be rounded to the nearest ten dollars. The Citv Clerk shall publish a public notice of anv auiustments bv March I st of each odd-numbered vear. or as soon after as practicable. following the Bureau of Labor Statistic's release of the applicable Consumer Price Index uata. The adiustments shall \(0 into effect as soon as the public notice is published but shall applv onlv to elections held in subselluent vears. The adiustments shall not be construed to raise the contribution limits applicable to past elections or to special elections held in the same vear 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. I . 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 ofthe general election for that office. R. A candidate may carryover contributions raiseu in connection with one election for City elective onice to pay campaign expenditures incurred in connection with a subsequent election for the same City elective office. r. The contribution limitations of this section are not limitations on expenditures and shall not be construed to limit the expenditures by any canuidate. 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 14-19 A 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. 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. ,'.11 personal funds to be e:;pended or contributed by a caRdidate, includiRg all loans of personal funds, shall first be deposited in the candidate's campaign cORtribution accOlmt. 252.11811 Surplus eamflaigR fURds. :\. Upon leaving any elected office, or at the end of the post election reportin,; period following the defeat of a candidate for elective oftice, v.liichever occurs last, campaign funds under the control of a candidate shall be considered sHrplus campait;n fund.;. B.SurplHs wmpaign funds shall be used only for tlie following pHrposes: I.To repay contributions, including loans to oneself up to an amount of $5,000. ~,To make a donation to any bona fide charitable, educational, civic, religious, or nonprofit organization, where no substantial part of the proceeds ,,,ill have a material financial effect on the candidate, any mcml1er of his Dr her immediate family, or his or her campaign treasurer. 3.To pay for profess:onal services reasonably required bj' tlie candidate or cffi'ldidate controlled committ2e to assist in the performance of its administrative functions, including payment for attorney's fees for liti;ation that arises directly out of a candidate's activities or his or her statas as a candidate, iFlcludin,;, bat not limited to, an 14-20 A aetion to el~oin 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. "^e. "^e contribution need not be reported nor shall it be deemed accepted if it is not cashed, negotiated, or deposited and is returned to the contributor before the dosinG date of the campaif;n statement on vihich the contribution would otherwi:;e by reported, as provided by the California Political Retorm ,^eel. Bo-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 ofreceipt 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 oftice to three hundred dollars per person..": 'The dollar amount to be included in this Notice shall be amended bi-annually to reflect anv CPI adiustment to the contribution limit made pursuant to 2.52.040.D. 2.52.110 Camflllign Statements. Each eGndidate shall tile campaign statements with the City CierI; in the time and manner as required by the Political Reform ,^ect of 197'1 as amended (Government Code Section 81100 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: 14-21 A 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 CYMC 2.52.l40(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 authoritv as toinvestit;ate 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, 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 CYMC to act as the enforcement authority 11 months prior to a general election. As part of the annual bHdbet process, the City COHncil shall appropriate no Jess than $100,000 to fund the retention of special counsel to sen'e as the enforeement authority. These tunds shall be separate from the City "'.ttomey's budbct and med solely for the in';estigation and prosecution of alle;;ed violations of this chapter. 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 for work performed pursuant to this Chapter. 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 jn writing, sworn under penalty of perjury bv the complainant, who shall beby a resident of the City~ accompanied bv proof that the complainant is a resident of the Citv; and submitted to the City Cleric The complaint shall state a full recitation of all facts that are alleged to constitute a violation of this chapter. If a complaint does not complv with these requirements, the City Clerk shall return the complaint to the complainant. with an explanation as to whv it is insufficient tor 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 14-22 A shall be notified of the dismissal in writing. The enforcement authority shall make a probable cause determination within 30 calendar davs of receiving thc complaint. G. If probable cause is determined to exist, the enforcement authority shall noti fv the City Attornev. If the enforcement authority determines that probahle cause exists to find that there was a knowin~ or willful violation of this chapter. the City Attornev shall forward the complaint to the District Attornev and the special counsel who is next in the rotation of panel counsel to act as the enforcement authoritv for further handlin~. If the enforcement authoritv determines that probable cause exists to find that there was a nedigent violation of this chapter, the City Attornev 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. However, if the Citv Attornev is the subicct of the complaint. the duties of the Citv Attorney under this section shall be handled bv the Citv Clerk. H. Violations of this chapter that are forwarded to the next panel counsel for further investi~ation pursuant to subsection G., above. may be pursued by the enforcement authoritv either through a civil or criminal administrative actionaction at the discretion of the enforcement authority. 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 ofthe City Attorney or City Council. l. The special counsel, serving as the enforcement authority, may investigate and may institute legal action to prevent further violations. The special counsel may decline to investigate ilf 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 to , and is the subject of a complaint tiled with the Fair Political Practices Commission, or other appropriate state a~encv. 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 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 fWefour 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 fWefour-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 knowinglv 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 the enforcement authoritv or District Attornev deternlines that no violation occurred, the enforcement authoritv shall review the complaint and. if necessarv. conduct further investigation to determine if there is probable cause to find that the complainant committed perjury. If such probable cause exists. the enforcement authoritv shall forward the complaint to the District Attornev for consideration of prosecution for periurv. 14-23 A 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 shall be guilty of a misdemeanor. B. LAny 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 $250 three times the amOllRt the person failed to report proporly or unlawfully contributod, e):pended, gave or received, or $5,000 per violation, whichever is f;reater and shall bc required to correct the violation. 2. Anv person who intentionallv violates anv provision of this chapter. or causes anv other person to violate anv provision of this chapter. shall be liable in a civil administrative action broul!ht bv the enforcement authoritv for a maximum of$500.00 per violation. 3. Anv amounts paid pursuant to this section shall be used to offset the costs of enforcing this chapter. 4. If it is determined bv the District Attornev that thc complainant committed perjurv in tilinl! the complaint. the complainant mav be liable. in addition to anv criminal penalties. for damal!es in the amount of fees. costs and other amounts suffered or incurred as a result of. or arising out of the tiling 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. or anvone who is determined bv the District Attornev to have committed periurv in filing a complaint under this Chapter. 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. 14-24 A SECTION II EFFECTIVE DATE. This ordinance will take effect and be in force thirty days after final passage. Presented by Approved as to form by r {):::i ~ Assistant City Attorney 14-25 B 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 rcquirements, 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 ofChula Vista does ordain as follows: SECTION 1. ACTION Chapter 2.52 of the Chula Vista Municipal Code is amended as follows: 14-26 Sections: 2.52.010 2.52.020 2.52.030 2.52.040 2.52.050 2.52.060 2.52.070 ~ .5~ .080 2.52.090 2.52.100 ~.5~.110 2.52.120 2.52.130 2.52.140 2.52.150 2.52.160 2.52.010 B Chapter 2.52 CAMl'AlGN CONTRIBUTiONS Purpose and intent. Interpretation of this chapter. Defini tions. Campaign contribution limits. Loans. Notice regarding personal funds. Campaign contribution account. Surplus campaign funds. Return of prohibited contributions. Written solicitations by candidates. Can:paign statements. Contributions for legal defense. Duties of City Clerk. Enforcement. Penalties. Severability. Purpose and intent. . This chapter is intended to supplement. the Political Reform Act of 1974 (California Government Code sections 81000. cl sell.) (the. "PRA"). and the implementing regulations adopted by the Fair Political Practiccs Commission (the. "FPPC") (see. California Code of ReiLulations. 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 thc PRA and the FPPC regulations. when participating in a local election campaign. Sections 81013 and 85703(a) of the PM authorize the Citv Council to adopt contribution limitations and prohibitions applicable to elections for local elective office. 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 to serve the best interests of the citizens of this City are ser';ed 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; C. To prohibit contributions by organizations and permit cOfltributions by individuals ttftlyprevent corruption and avoid the appearance of corruption by regulating canlPaign contributions to candidates for local elective office; 14-27 B 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. Nothint( in this Chapter is intended to. and shall not be construed to. abrot(ate the authoritv conferred on the Citv Attornev. bv state law and the Citv Charter. to exercise concurrent iurisdiction with the District Attornev with respect to the prosecution of violations of state laws within the Citv for offenses constituting misdemeanors. 2.52.020 Interpretation of this chapter. A. The terms and phrases in this chapter shall be detinedhave the same definitions given to them as tl:ose terms and phrases are defined in the PRAPolitical Reform ,',ct of 197'1. as amended (Government Code. Section 81000 et seq.)(see. California Government Code sections 82000 through 82(54) and the FPPC Regulations, unless otherwise specified in this chapter. B. The terms ofthis 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 Februarv 10.2011 December \3.2007. and are applicable to all contributions received by candidates seeking City elective office in the general election of June '008 and any election which takcs place thereafter that date. Any candidate for City elective office f3articiputing in the ;;eneral election of lune 2008 shall have a brace period of 60 days from the effecti,,'e date. as stated in this subsection, to repay any campai:;n contributions made or received prior to the effective date of the revisions in connict with or in violation of any provisions of this chapter. /. candidate repaying any campaibn contributions or loans durifl.:; this 60 day :;race period shall provide v.ritton notice to tRe City Clerl: of the repayn1cnt within throe business days, ddined as Monday throu:;h Friday and excludinb City holidays, of the repayment. 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 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 statcment" means the campaign statement required bv the PRA (see, California Government Code sections 84200. et see/. ). P.!..;._"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. 14-28 B E. "City campaif;n statement" means the statement which, to the e:~tent practicable, shall be similar to or consolidated with that required by state lav.'. F. "City elective office" means the offices held by the Mayor,-Bf members of the . City CounciL or the Citv Attornev. The "same City elective office," as that term is used in this chaPterftereiH, 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 bv the Citv Attornev. 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. 1. "General election" is that election identified by Charter Section 900, which is combined with the state primary election. J. "Independent m;penditure committee" is as defined in the Political Reform ,A.ct, which supports or opposes in v. hole or in part a candidate for City elective office if contributions are made to said comn:ittee with the intent that they, or a comparable amount of funds othenvi.:e owned by, or ~ll1der the control of. the committee be HScd to support or oppo"e a particular candidate for a City elective office. This type of committee is not cOfltrollcd by the candidate. lK "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 party committees. as that term is defined in Califomia Govcmment Code scction 85205. Kb. "Person" means a natural individuaL 1M. "Political Reform Act" means the California Political Reform Act of 1974, as amended, found at Government Code Section 81000. et seq., and includes regulations adopted by the Fair Political Practices Commission. MN. "Single election contest" means either a general or special election. ]\jG. "Special election" is ~defined in Charter Section 901 as all other municipal elections that may be held by authority of the Chartor or of any law. 2.52.040 Campaign contribution limits. A. No person, other than a candidate, shall make a contribution in excess of $300.00 to a candidate for a single election contest. No candidate shall solicit or accept a contribution in excess of $300.00 from a contributor person for a single election contest. A candidate may receive up to $300.00 from a personcontributor in each of the general and special elections. The contribution limit in this subsection shall be adiusted bi- annually pursuant to subsection 2.52.040.0. B. No political party committce. 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 simde election contest. No candidate shall solicit or accept a contribution in excess of $ 1.000.00 from a political party committee for a silllde election contest. A candidate mav receive UP to $1.000.00 from a political party committee in each of the general and spccial elections. The contribution limit in this subsection shall be adiusted bi-annually pursuant to subsection 2.52.040.0. 14-29 B [B. 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. C. No individual or combination of individuals acting jointly shall make directly or indirectly a contribution in the name of another ifldi\'idual or 8Ombinatiofl ofindi':idurus. D. Contributions by a husband and wife shall be treated as separate EOfltributions and shall flot be agsregated where the check,; are drawn separately and signed by the spouse making the contribution. Contribution:: by a husband and v,ifc shall be treated as separate even if eombined into one check but presented witli two sit;natures. D. The contribution limits set forth in this section shall be adiusted every odd- numbered year. startin," in 2013. The City Clerk shall adiust the contribution limits to reflect any ehan,"es in the Consumer Price Index for the San Diego area for the two-year period ending on December 3151 of the previous year. Adiustments shall be rounded to the nearest ten dollars. The Citv CJerk shall publish a public notice of any adjustments by March 151 of each odd-numbered year. or as soon after as practicable. following the Bureau of Labor Statistic's release of the applicable Consumer Price Index data. The adiustments shall ,"0 into effect as soon as the public notice is published but shall apply onlv to elections held in subsequent years. The adiustments 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 oftlce. H. A candidate may carryover 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. r. The contribution limitations of this section are not limitations on expenditures and shall not be construed to 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 01'$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 14-30 B 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 <.late 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 2 1 days prior to the election, unless the expenditure or contribution occurs during the 2 1 days preceding the election, in which case the required notice shall bc provided 24 hours prior to deposit into the candidate's campaign contribution account. 2.52.070 Campaign contribution account. Ac-- The campaign contribution account required by Government Code Section 85201(a) shall be established at a financial institution located in San Diego County. B. /\11 personal funds to be e;lpended or contributed by a candidate, including all loans of per:;onal funds, sflall tIrst be deposited in the candidate's campaif.ll contribution account. 2.52.080 Surplus eampaigR fURds. ,^.. 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 till1ds under the control of a candi<.late shall be considered surplus campaign funds. B.Sarplus campaign funds shall be used only for the following purposes: l.To rcp'1ycontributions, including loans to oneself up to an amount of$5,000. 2.To make a donation to an)' bona tide charitable, educaotional, civic, religious, or nonprofit oq;anization, where 110 substantial part of the proceeds will have a material financial effect on the candidate, allY 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 tile performance of its admillistrative functions, inclu<.lint; paj'ment for attorney's fees for litigation that arises directly out of II candidate's acti'iities or his or her staniS as a caBdidate, includifl';, but not limited to, an 14-31 B action to enjoin defamation, defense of an action brou,;ht for a yiolatioR of state or local campaign, disclosure, or election lm\'s, and an action from an election cont.?st or recount. 2.52.090 Return of prohibited contributions. /\. /\ contribution need no: be reported nor shall it be deemed accepted if it is not cashed. negotiated, or deposited and is returned to the contributor before the closing date of tRe campaign statement on whidl thc contribution would ot)qcrwise by rcported, as provided by the California Political Reform i\Ct. B-,-Tf 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-annuallv to renect anv cpr adiustment to the contribution limit made pursuant to 2.52.040.D. 2.52.1111 Campaihn Statements. Each candidate shall file campaign statements with the City Clerk in the time and manner as required by the Political Reform /\ct of 197'1 as amended (Goycrnment Code Section g1100 et seq.) Compliance with the requirements of that /.ct 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 t<1f 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: 14-32 B 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 CYMC 2.52.140(E) and applicable statc 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 authoritv as tonot 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, or the District Attornev. 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 the enforcement authority 11 months prior to a general election. As part of the al1l1ual budget process, the City Council shall appropriate no less than S I 00,000 to fund the retention of special counsel to sen'e as the eRforcement authority. These fuRds shall be separate from the City :\ltorney's budget and used solely for the investigatioR and prosecution of allq;ed ':iolations of this chapter. 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 for work performed pursuant to this Chapter. 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~, sworn under penalty of perjury bv the complainant, who shall beby a resident of the City~ accompanied bv 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 complaint does not complv with these requirements. the City Clerk shall return the complaint to the complainant. with an explanation as to why it is insufticient 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. The enforcement authority shall make a probable cause determination within 30 calendar days of receiving the complaint. 14-33 G. If probable cause is determined to exist, the enforcement authority shall notify the City Attornev. If the enforcement authority determines that probable causc exists to find that there was a knowing: or willful violation of this chaPter. the City Attornev shall forward the complaint to the District Attornev for further handling. If the enforcement authority determines that probable causc exists to find that there was a negliuent violation of this chapter. the City Attornev 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. However. if the City Attornev is the subject of the complaint. the duties of the City Attornev under this section shall be handled bv the City Clerk. H. Violations of this chaPter that are forwarded to thc District Attornev for handling shall not be subiect to further action bv the enforcement authority. Violations of this chapter that are not forwarded to the District Attorney for handling but. rather. are forwarded to the next panel counsel for further investiuation pursuant to subsection G" above. may be pursued by the enforcement authority either through a civil or administrative action. criminal action at tRe discretion of the enforcement autRority. 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 l. The special counsel, serving as the enforcement authority, may investigate and may institute legal action to prevent further violations. The special counsel may decline to investigate Itf the allegation contained in the complaint is also a violation of state law, the special counsel shall not investi!:wte but. rather. shall forward the complaint and is the sabject of a complaint filed withto the Fair Political Practices Commission. or other appropriate state agencY. 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 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 ftve-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 fi.vetour-year period for civil and administrative actions shall be tolled for the period of concealment. For purposes of this subdivision, "fraudulent concealment" mcans the person knows of material facts related to his or her duties under this chapter and knowinglv 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 reviewinu and/or investigating the complaint. the enforcement authoritv determines there is probable cause to tind that the complainant knowimdy or willfully tiled a false complaint under this chapter. the entorcement authority shall forward the complaint to the District Attornev for consideration of prosecution as a misdemeanor. 2.52.150 Penalties. 14-34 B B A. Any person who knowingly or willfully violates any provision of this chapter; who knowingly or willfully causcs, 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 knowimdv or willfullv tiles 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 aR)' other perSOR to violation any prm ision of this chap',er 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 pcrsOl~ failed to report properly or unlawfully contributed, e:;pended, ;;aw or recei':ed, or $250.00S5QQ,000 per violation, and shall be required to correct the violation. whiche, er is breater. i\ny amo'.mts paid shall be to offset the costs of enforcinc: this chapter. Any person who intentionallv violates anv provision of this chapter, causes anv other person to violate anv provision of this chapter. or intentionallv tiles a false complaint under this chaPter. shall be liable in a civil administrative action brouQht bv the enforcement authoritv for a maximum of $500.00 pcr violation. or per false complaint tiled. Anv 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 tiled was wholelv meritless, the complainant mav be liable. in addition to civil and administrative tines provided for herein. for damaQes in the amount of fees. costs and other amounts suffercd or incurred as a result of or arising out of the tiling of such complaint. 2. , J. 4. C. This section shall apply only to persons who have tiling 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, or anvone who tiles a false complaint alleQing a violation of this chapter. 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. 14-35 B SECTION II. EFFECTIVE DATE This ordinance will take effect and be in force thirty days after final passage. Presented by Approved as to form by ))~ Maland ssistant City Attorney 14-36 . ..... CAMP AIGN CONTRIBUTION ORDINANCE (CVMe 2.52) Chula Vista City Council Meeting December 14,2010 I t-en-. I Lf CODE REVISIONS · Political Reform Act Duplication - Provisions Removed - 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 Surplus Campaign Funds Return of Contributions Campaign Statements - 2.52.080 - 2.52.090.A. - 2.52.110 CODE REVISIONS · Legal Updates - Finding re: City's Interest in Preventing Corruption and the Appearance of Corruption in Local Elections - Exempt Political Parties from the Definition of "Organizations," which are Banned from Making Contributions - Added $1,000 Limit on Contributions by Political Parties - Indexed Contribution Limitations to Inflation, to be Revised by City Clerk Every Odd Year - Clarified that Contribution Limitations do not Limit Expenditures - Made Applicable to Elected City Attorney CODE REVISIONS o Enforcement and Penalty Provisions Bifurcation of Process · First Review by City Clerk for Facial Compliance · Probable Cause Determination by Enforcement Authority · Review and Investigation by 2d Enforcement Authority or DA - Reliance on Other Agencies · KnowinglWillful Violations: DA · PRA Violations: FPPC CODE REVISIONS · Enforcement and Penalty Provisions (Cont'd.) - Funding · Mandatory $100,000 Appropriation Eliminated · Investigation and Enforcement Costs will still be Budgeted for Annually, with Input from the City Attorney - Penalties · Reduced from $5,000 · Intentional - $500 · Negligent - $250 CODE REVISIONS o Changes Since November 23, 2010 Meeting - Penalty Amounts · $500 - Intentional · $250 - Negligent - Political Parties Defined by Reference to Government Code 985205 (CYMC 92.52.030.1.) - Enforcement Authority to be Paid only for Work Performed Under the Chapter (CYMC 92.52.140.D.) - Enforcement Authority Must Make Probable Cause Determination Within 30 Calendar Days (CYMC 92.52.140.F.) CODE REVISIONS · Changes Since November 23,2010 Meeting- Ordinance A - Probable Cause - Willful or Knowing Violation · Will be Sent to District Attorney and Second Enforcement Authority · Purpose: To Ensure Investigation of Violations that the DA does not Pursue as Willful/Knowing that may be Negligent Perjury o Complaint Must be Sworn Under Penalty of Perjury · Complaint Resulting in No Violation Must be Reviewed by Enforcement Authority for Probable Cause Determination Re: Perjury and Sent to DA if Probable Cause Found CODE REVISIONS · Changes Since November 23, 2010 Meeting- Ordinances A and B Board of Ethics . City Council Requested that "City Attorney" be Replaced with "Board of Ethics" in CVMC Sections 2.52.140.C. and D. · Change was not Made due to Conflict with Board of Ethics Ordinance and City Charter · CVMC Section 2.56.110.F. Requires Outside Counsel be Chosen by Competitive Solicitation or Based on Qualifications and Performance Characteristics o City Attorney can Return at Later Date with Policy to Ensure Fair Selection of Panel Counsel CODE REVISIONS · Ordinance A v. Ordinance B Willful/Knowing Violations · Ordinance A: District Attorney and Second Enforcement Authority o Ordinance B: District Attorney Only False Complaints · Ordinance A: - Relies on Enforcement of Perjury - Requires Enforcement Authority to Determine if Probable Cause Re: Perjury on Complaints that Result in No Violation - If so, Must Forward to DA for Prosecution of Perjury · Ordinance B: - Makes Filing a False Complaint a Misdemeanor - Requires Enforcement Authority to Determine if Probable Cause to find False Complaint was Filed on Complaints that Result in No Violation - If so, Must Forward to DA for Prosecution as Misdemeanor [ COMPLAINT PROCESSING I < ,.COMPLAINT " _ '1 ,CITY CLERK (F<;lr Gompliance.qetermination) , 'COMPLAINANT .(11 Facially Non-Compliant) ~":~'ri;r1;.,.:;> 'ENFORCEMENTAU'rHORlt:'YP1?i"';;,i\,'';;; .' ...'h',.;.....- ... ...-~~..-..,..-.,.,. -. 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