HomeMy WebLinkAboutOrdinance 2156 N.C.S. 08/04/20032
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Introduced by
Council Member Moynihan
ORDINANCE NO. 2156 N.C.S.
Seconded by
Council Member Canevaro
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA
AMENDING CHAPTER 1.30 OF THE PETALUMA MUNICIPAL CODE AND
SETTING MANDATORY LIMITS ON CAMPAIGN CONTRIBUTIONS TO
CITY COUNCIL AND CITY MAYOR CANDIDATES, ENACTING MANDATORY
PUBLIC DISCLOSURE REGULATIONS, PRESCRIBING ENFORCEMENT
MECHANISMS AND PENALTIES FOR VIOLATIONS
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
22 FOLLOWS:
23
24 Section 1. Chapter 1.30 of Title 1 of the City of Petaluma Municipal Code is hereby
25 amended in its entirety, in the manner hereinafter described.
26
27 CHAPTER 1.30
28 PETALUMA CAMPAIGN FINANCE
29 Sections:
30 1.30.010 Title
31 1.30.020 Legislative Intent
32 1.30.022 Relation to Political Reform Act of 1974
33 1.30.025 Definitions
34 1.30.030 Contribution Limitation
35 1.30.035 Election Cycles
36 1.30.040 Disclosure Requirement
37 1.30.042 Aggregation of Contributions
38 1.30.044 Loan to City Candidates and Their Controlled Committees
39 1.30.045 Outstanding Debt Retirement and Reporting
40 1.30.046 Multiple Campaign Committees
41 1.30.070 Independent Expenditures
42 1.30.080 Enforcement
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Ordinance No. 2156 N.C.S.
Page 1
1 1.30.010 -Title.
2 This Chapter shall be entitled "Petaluma Campaign Finance."
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1.30.020 - Le>;islative Intent.
To assure the public that:
A. excessive campaign costs and large contributions do not cause corruption or the
appearance of corruption in the election process;
B. large campaign contributions will not be used to buy political access or to
influence governmental actions;
C. access to large amounts of money will not be a prime requirement for
participation in the political process;
D. they are fully informed of the contributors to political campaigns.
1.30.022 -Relation to Political Reform Act of 1974
This chapter is intended to supplement the Political Reform Act of 1974 (Government
Code Title 9, §§ 81000 et seq.). Unless a word or term is specifically defined in this chapter, or
the contrary is stated or clearly appears from the context, words and terms used herein shall have
the same meaning as defined or used in Title 9 of the California Government Code, in which the
Political Reform Act of 1974 is codified, and as supplemented by the Regulations of the Fair
Political Practices Commission as set forth in Title 2, Division 6 of the California Code of
Regulations, as the same may be, from time to time, amended. If a definition of any word or
term defined in this chapter is preempted by the provision of the Political Reform Act or the
Regulations of the Fair Political Practices Commission, then the definition in said Act and
Regulations shall prevail.
1.30.025 -Definitions.
A. "Person" means an individual, proprietorship, firm, partnership, joint venture,
syndicate, business trust, company, corporation, limited liability company,
association, committee, and any other organization or group of persons acting in
concert.
B. "City election" means any general election, special election or recall election.
C. "Election Cycle" shall mean the applicable period as set forth in Section 1.30.035.
Ordinance No. 2156 N.C.S. Page 2
1 D. "Candidate" means any person who is a candidate for Mayor or City Council for
2 the City of Petaluma, including incumbent Mayor or Council Members, appointed
3 or elected whether or not a candidate for reelection.
4 E. "Indebted Former Candidate" means a person who was a candidate for Mayor or
5 City Council at any City Election and who has campaign debt remaining from.
6 such election after expiration of the Election Cycle for the office of which he or
7 she was a candidate.
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9 1.30.030 -C ontribution Limitation.
10 A. No candidate for City Council or Mayor, or candidate committee, shall solicit or
11 accept any contribution, including any "in-kind" contribution, that will cause the
12 total contributions to that. candidate from any person to exceed Five Hundred
13 Dollars ($500.00) during any Election Cycle. The receipt of any contribution
14 which would cause the total amount of contributions to a candidate from a single
15 person to exceed Five Hundred Dollars ($500.00) shall promptly return any such
16 excess to the donor. The provisions of this section shall not apply to contributions
17 by a candidate for City Council or Mayor of his or her own funds to his or her
18 own controlled committee. Contributions by the .spouse of a candidate for City
19 Council or Mayor from such spouse's separate property shall be subject to the
20 contribution limits.
2.1 B. Elective Council Members and Candidates With Outstanding Debt From Prior
22 Election. No person shall make, and no Mayor or City Council member or
23 indebted former candidate, or treasurer of any controlled committee of any Mayor
24 or City Council member or indebted former candidate, shall solicit or accept, any
25 contributions for the purpose of retiring outstanding debt from a prior City
26 Election which would cause the total amount contributed by such person to such
27 Mayor or Council member or indebted former candidate or to his or her controlled
28 committee, to exceed five hundred dollars ($500) for the election in which the
29 outstanding debt was incurred, regardless of when the contribution(s) is made or
30 received.
31 C. Recall Elections. The contribution limitations set forth in subsection A above shall
32 also apply to any committee which collects contributions for the purpose of
33 making expenditures in support of or opposition to the recall of a Mayor or City
Ordinance No. 2156 N.C.S.. Page 3
1 Council Member, and to contributions received by such Mayor or City Council
2 Member during a recall Election Cycles as defined in Section 1.30.035.
3 D. Candidates Personal Funds. The provisions of this section shall not apply to a
4 Candidate's contribution of his or her personal funds to his or her own controlled
5 committee. Contributions by the spouse of a Candidate from such spouse's
6 separate property shall be subject to the contribution limitations set forth in
7 Subsection A.
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9 1.30.035 -Election Cycles.
10 A. General Elections. For purposes of any election for City Council or Mayor, the
11 term Election Cycle as used in this chapter shall mean the period commencing on
12 January 1 of the year following a year in which a City Council election is held and
13 ending on December 31 of the year in which the next succeeding election is held.
14 B. Special Elections. For purposes of any special election for City Council or Mayor,
15 the term Election Cycle as used in this chapter shall mean the period commencing
16 on the date a special election is called by the City Council and ending on the
17 thirtieth (30t") day following said special election.
18 C. Recall Elections. For purposes of any recall election for City Council or Mayor,
19 the term Election Cycle as used in this chapter shall mean the period commencing
20 on either the date a committee is formed pursuant to the Political Reform Act in
2;1 support of a recall election or the date the City Clerk approves a recall petition for
22 circulation and gathering of signatures, whichever occurs earlier, and ending on
23 the thirtieth (30`") day following the first to occur of any of the following:
24 (1) The time provided by law for the gathering of signatures on recall
25 petitions expires without sufficient recall petition signature having been
26 filed with the City Clerk to require a recall election;
27 (2) All committees. formed in support of the recall have been terminated
28 pursuant to the provisions of the Political Reform Act;
29 (3) The date the recall election is held.
30 D, Campaign Debt. Nothing in this chapter shall prohibit indebted candidates and/or
31 their controlled campaign committee from soliciting and receiving funds to pay
32 off their campaign debt in accordance with the provisions of Section 1.30.030,
33 after the end of the Election Cycles defined above.
Ordinance No. 2156 N.C.S. Page 4
1
2 1.30.040 -Disclosure Requirement.
3 A. Each candidate for City Council or Mayor, or candidate committee shall file a
4 third pre-election Campaign Disclosure Statement (Form 460 or any successor
5 form thereto), as provided by the California Fair Political Practices Commission
6 for the period from the end of the period covered by the second pre-election
7 statement to 11:59 PM on the third business day immediately preceding election
8 day (normally Thursday). Such statement shall be filed with the Clerk of the City
9 of Petaluma by 5:00 PM on the second. business day immediately preceding
10 election day (normally Friday).
11 B. Each candidate, and each committee making independent expenditures, who
12 sends a mailing or distributes more than 200 substantially similar pieces of
13 campaign literature shall send a copy of the mailing or other literature to the City
14 Clerk at the same time the mailing or other literature is given to the post office or
15 otherwise distributed. During the election campaign, the City Clerk merely serves
16 as a repository for such literature and shall not judge or comment on the contents
17 of such literature.
18
19 1.30.042 - Aggregation of Contributions.
20 The contributions of any person whose contributions are directed and controlled by
21 another person shall be aggregated with those of the controlling person for purposes of the
22 contribution limits. Contributions by a married person shall be treated as the separate
23 contributions of such person and shall not be aggregated with any contributions of the spouse of
24 such person
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26 1.30.044 -Loan to City Candidates and Their Controlled Committees.
27 A. A loan shall be considered a contribution from the maker and the guarantor of the
28 loan and shall be subject to the contribution limitations of this chapter.
29 B. The proceeds of a loan made to a candidate for City Council or Mayor by a
30 commercial lending institution in the regular course of business on the same terms
31 available to members of the public shall not be subject to the contribution
32 limitations of this chapter if the loan is made directly to the candidate. The
Ordinance No. 2156 N.C.S. Page 5
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guarantors of such a loan shall remain subject to the contribution limits of this
chapter.
Extensions of credit (other than loans pursuant to subsection B) for a period of
more than thirty (30) days are subject to the contribution limitations of this
chapter
(1)
(2)
(3)
(4)
(5)
An "extension of credit" means the provision of goods or services for
which payment in full is not received. An extension of credit is deemed to
begin by the earlier of two dates:
(a) 15 days after the date specified on the invoice for payment; or
(b) 45 days from the date the goods or services were delivered..
"Payment in full" means payment of not less than fair market value for the
goods or services provided.
An extension of credit for a period of more than 30 days is a contribution
subject to the contribution limitations of the ordinance, except as provided
in subsections (d), (e), (f) and (g) of this section.
If a candidate or a candidate's controlled committee has an extension of
credit for more than 30 days outstanding with a provider or vendor of
goods or services, any additional credit extended to the candidate or the
candidate's controlled committee by the same provider or vendor of goods
or services shall be a contribution to the candidate or the candidate's
controlled committee from the person subject to all of the contribution
limitations of the Act.
If all of the following criteria are satisfied by a provider or vendor of
goods or services, it shall (k) be a complete defense for the provider or
vendor of the goods or services in any enforcement action initiated by the
City, and (ii) relieve the provider or vendor of the goods or services of any
reporting requirements of this title;
(a) The credit arrangement was recorded in a written instrument;
(b) It is a primary business of the provider or vendor of goods or
services to provide similar goods or services;
(c) The provider or vendor of goods or services provided the .goods or
services in the ordinary course of business and on the same terms
and conditions offered to customers generally;
Ordinance No. 2156 N.C.S. Page 6
1 (d) The provider or vendor of goods or services did not have actual
2 knowledge that the candidate or committee would not be able to
3 pay within the time limit specif ed in Subsection (a);
4 (e) The provider or vendor of goods or services made reasonable
5 efforts to collect the full amount of the payment owed within one
6 hundred twenty (120) days of the date specified in subsection (a);
7 (f) The provider ar vendor of goods or services entered into the
8 agreement with the intent that the candidate or committee would
9 be required to pay within the time limit specified in subsection (a);
10 and,
11 (g) The provider or vendor of goods or services did not extend any
12 additional credit to the candidate or the candidate's controlled
13 committee when the candidate or the candidate's controlled
l4 committee already had an extension of credit for more than 30
15 days outstanding with the same provider or vendor of goods or
16 services as provided in subsection (d).
17 D. This section shall apply only to loans and extensions of credit used or intended for
18 use for campaign purposes or which are otherwise connected with the holding of
19 public office.
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21 1.30.045 - Outstandin;? Debt Retirement and Reportin
22 A. Any Mayor or City Council member or indebted former candidate, or any
23 controlled committee of any such officer or candidate, accepting any
24 contribution(s) for the purpose of retiring outstanding debt from a prior City
25 Election and required by state law to report such contributions on Schedule A of
26 Fair Political Practices Commission Form 460, or any successor form thereto,
27 shall, at the time required for the reporting of such contributions on Schedule A
28 and in addition to any other reporting requirements under state law, clearly
29 designate on said Schedule A which contributions were received for the purpose
30 of retiring outstanding debt and for which prior City Election such contributions
31 were received.
32 B. Any contribution accepted for the purpose of retiring outstanding debt from a
33 prior City Election shall be applied to reduce or retire said outstanding debt in the
Ordinance No. 2156 N.C.S. Page 7
1 same reporting period in which such contribution was accepted. The application
2 of any contribution to retire outstanding debt from a prior City Election. (i.e.,
3 repayment of outstanding loans and payment of accrued expenses) shall be
4 itemized and identified on the appropriate schedules and on the Summary Page of
5 Form 460, or any successor form thereto, provided by the Fair Political Practices
6 Commission.
7 C. If a Mayor or City Council member or indebted former candidate, or a controlled
8 committee of any such officer or candidate, receives contributions for the purpose
9 of retiring outstanding debt from a prior City Election and the amount of the
10 contributions exceeds the amount of the debt, the excess funds may be used for
11 any other campaign or officeholder expense and shall not be subject to the
12 aggregation requirements set forth in section 1.30.042 in the election cycle in
13 which the excess funds are expended.
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15 1.30..046 -Multiple Campaign Committees.
16 A. A candidate for City Council or Mayor shall have no more than one controlled
17 committee and such controlled committee shall have only one bank account out of
18 which all qualified campaign and officeholder expenses related to that office shall
19 be made.
20 B. This section does not prevent a candidate for City Council or Mayor or a City
21 Council member or Mayor from establishing another controlled committee solely
22 for the purpose of running for a state, federal, county or other elective office, or
23 for opposing his or her recall.
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25 1.30.070 - Independent Expenditures.
26 A. Any person or entity making independent expenditures which aggregate in excess
27 of Ninety-Nine Dollars ($99.00) during any Election Cycle shall deliver notice in
28 writing of such independent expenditure, as well as the amount of such
29 expenditure, and a detailed description. of the use of such independent
30 expenditure. Such notice shall be filed with the city clerk on a form prepared by
31 the city clerk for such. purpose. The notice shall specifically state the name of the
32 candidate or candidates whom the independent expenditure is intended to support
33 or oppose and shall also include the information required to be provided in the
Ordinance No. 2156 N.C.S. Page 8
1 Campaign Disclosure Statement (form 465 or any successor form thereto) as
2 provided by the California Fair Political Practices Commission. Each
3 independent expenditure shall require delivery of a new notice. Such notice shall
4 be filed for the same reporting periods and be the same deadlines as are
5 expenditures by Candidates pursuant to the California Fair Political Practices Act
6 and by Section 1.30.040(B) of this Ordinance.
7 B. Persons or organizations who make independent expenditures for or against a
8 Candidate or committee shall indicate clearly on any material published,
9 displayed or broadcast that it was not authorized by a Candidate or committee
10 controlled by a Candidate. Such disclosure shall be printed in 12-point type or
11 .larger in any printed materials, and prominently displayed in any non-printed
12 materials or message.
13
14 1..30.080 -Enforcement.
15 A. No Criminal Penalties. Notwithstanding any other provision of the Petaluma
16 Municipal Code, any violation of any provision of this chapter shall be
17 enforceable solely as provided in this section.
18 B. Civil Liability. Any person who fails to comply with any provision or
19 requirement of this chapter shall. be strictly liable to the City of Petaluma in a sum
20 not to exceed the following amount for each such violation:
21 (1) For the making or accepting of any contribution in excess of the
22 applicable contribution limits specified in this chapter, a sum equal to
23 three (3) times the amount by which the contribution exceeds the
24 applicable contribution limit, or the sum of five hundred dollars ($500),
25 whichever is greater, for each violation.
26 (2) For any other violation of this chapter, the sum of five hundred dollars
27 ($500) for each violation.
28 C. Right to Cure Unknowing Violation. In the event a candidate accepts a
29 contribution and then becomes aware it is in violation of the contribution limit,
30 that violation by the candidate maybe excused if the candidate returns the
31 contribution or contributes it to the City General Fund within 14 days of
32 becoming aware of the violation.
Ordinance No. 2156 N.C.S. Page 9
1 D. Debt Owing to City. Any amount due from anyperson pursuant to subsection (B)
2 above shall be a debt due and owing upon demand to the General Fund of the City
3 of Petaluma.
4 E. Civil Action to Collect Debt and Obtain Other Relief. The District Attorney of the
5 County of Sonoma shall file and prosecute a civil action in superior court, to
6 recover any amount(s) due and owing to the City of Petaluma by any person
7 pursuant to this section, or to enjoin any violation or otherwise compel
8 compliance with the requirements of this chapter:
9 F. Limitations of Actions. No civil action shall be brought under the provisions of
10 this section unless said action is filed within one (1) year following the date of
11 such violation.
12 G. Remedial Measures. If the District Attorney determines or believes that any
13 person (the target party) has violated any provision of this chapter, the District
14 Attorney may, at his or her sole discretion, advise the target party of remedial
15 measures which may be taken. by the target party to avoid possible civil action
16 (the "Remedial Measures"). Such Remedial Measures may, but need not
17 necessarily, include the payment of a civil fine to the City. Nothing contained
18 herein shall be deemed to require the District Attorney to offer Remedial
19 Measures to any target party. In the event the target party is offered and timely
20 performs such Remedial Measures to the Satisfaction of the District Attorney, the
21 District Attorney shall advise the target party (and any person who, in writing,
22 informed or complained to the District Attorney concerning any such violation),
23 in writing, that the alleged violation has been resolved (the "Letter of Resolution")
24 and, in such event, no civil action shall thereafter be filed or maintained relating to
25 such alleged violation of this chapter.
26
27 Section 2. The City shall reimburse the Office of the District Attorney for all expenses
28 incurred in enforcing Chapter 1.30 of the Petaluma Municipal Code.
29
30 Section 3. If any section, subsection, sentence, clause or phrase or word of this ordinance
31 is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of
32 competent jurisdiction, such decision shall not affect the validity of the remaining portions of
33 this ordinance. The City Council of the City of Petaluma hereby declares that it would have
Ordinance No. 2156 N.C.S. Page 10
1 passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that
2 any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
3
4 Section 4. This ordinance shall become effective thirty (30) days after the date of its
5 adoption by the Petaluma City Council.
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Section 5. The City Clerk is hereby directed to post this ordinance for the period and in
the manner required by the City Charter.
INTRODUCED and ordered posted/published this 7th day of July, 2003.
ADOPTED this 4th day of August 2003 by the following vote:
AYES: Canevaro, Harris, Moynihan, Vice Mayor O'Brien
NOES: Mayor Glass, Healy, Torliatt
ABSENT: None
Mayor ~ . ~ -
ATTEST:
City Clerk
Ordinance No. 2156 N.C.S. Page 11