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ORDINANCE NO. 1191 (1991 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING THE ELECTION REGULATIONS OF THE
MUNICIPAL CODE CHAPTER 2.40
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Chapter 2.40, Election Campaign Regulations, are revised as per
attached Exhibit A.
SECTION 2. A summary of 'this ordinance, approved by the City Attorney,
together with the ayes and noes, shall be published at least five (5) days prior to its final
passage in the Telegram- Tribune, a newspaper published and circulated in said city, and
the same shall go into effect at the expiration of thirty (30) days after its said final passage.
A copy of the full text of this ordinance shall be on file in the Office of the City Clerk and
after the date following introduction and passage to print and shall be available to any
interested member of the public.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis.
Obispo at a meeting held on the 21st day of ' -;ay, 1991 on motion of
Councilman.Roalman seconded by Councilwoman Rappa and on the
following roll call vote:
AYES: Councilmembers' Roalman; Rapp.a., .:Einard.,__and •Reiss
NOES: Mayor Dunin
ABSENT: None
on Dunin, Mayor
ATTEST:
0X'V-V.- 11-.� J�
Pam Woges, City erk
A 1191
Ordinance No. 1191 (1991 Series)
Page 2
APPROVED:
. L.
City Admi stra ive O icer
rney
o' ,rte
Ordinance No. _119-1
FINALLY PASSED this -- 4th - day of June
1991 on motion of Councilman Roalman
vote:
, seconded by
Councilwoman Rappa , and on the following roll call
AYES: Councilmembers Roalman, Rappa, Pinard, and Reiss
NOES: Mayor Dunin
ABSENT: None
ATTEST:
City Nlerk Pam V es
------ - - - - --
ayor Ron Dunin
U
s
Chapter 2.40
ELECTION CAMPAIGN REGULATIONS
Sections:
2.40.010
Title.
2.40.020
Purpose and intent.
2.40.030
Definitions.
2.40.040
Campaign treasurer --
Appointment required --
Compliance with provisions
required.
2.40.050
Contributions.
2.40.060
Election campaign accounts.
2.40.070
Campaign statements.
2.40.080
City Clerk's duties.
2.40.090
Criminal Misdemeanor Actions.
2.40.100
Civil Actions.
2.40.110
Injunctive Relief.
2.40.120
Cost of Litigation.
2.40.130
Disqualification.
2.40.140
Construction of Provisions.
2.40.150
Council study committee.
2.40.160
Expiration of provisions.
2.40.010 Title:
This chapter may be cited as the Election Campaign Regulations of the city. (Ord.
1067 Section 1 Ex. A (part), 1986: prior code Sec. 2800)
2.40.020 Purpose and Intent.
A. It is the purpose and intent of this chapter:
1. To require public disclosure of campaign contributions and expenditures
including but not limited to those made in support of or in opposition to candidates
or measures in municipal elections;
2. To place realistic and enforceable limits on the amounts persons may
contribute in municipal election campaigns;
3. To promote integrity, honesty and fairness in municipal election
campaigns;
4. To insure that funds contributed to a campaign committee are used solely
for campaign purposes;
5. To insure a level of discussion of public issues adequate for a viable
campaign by providing voters with the information necessary to make an assessment
of each candidate or measure before voting; and
6. To provide full and fair enforcement of all the provisions of this chapter.
B. By enacting this chapter, the council does not intend to deprive or restrict any
citizen .of the exercise of rights guaranteed under the United States Constitution and the
California Constitution. (Ord. 1067 Section 1 Ex. A (part), 1986: prior code Sec. 2801)
2.40.030 Definitions.
The following words or phrases shall have the meanings as indicated in this section
when used in this chapter:
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A. "Campaign statement" means a report, made on a form prescribed and
supplied by the City Clerk, which provides the information required by this chapter of
candidates and committees. Each campaign disclosure statement shall reflect all
contributions received and expenditures made through the closing date specified in Section
2.40.070.
B. "Campaign treasurer" means the duly appointed representative responsible for
financial accounting and reporting as required by this chapter. There shall be only one
campaign treasurer at a time for each campaign committee.
C. "Candidate" means any individual listed on the ballot for election to or recall
from any city office, or who has otherwise taken action to seek such election to city office.
D. "Committee" means any person or combination of persons which directly or
indirectly receives contributions or makes expenditures or contributions for the purpose
of expressly advocating the. election or defeat of a clearly identified candidate or for
supporting or opposing the passage of any measure. Committees shall be in one of two
categories:
1. A committee which receives contributions totaling $100 or more in a
calendar year (commonly referred to as a "Recipient. Committee ") or;
2. A committee which makes independent expenditures totaling $100 or
more in a calendar year which are not made to or at the behest of a candidate or
committee (commonly referred to as an "Independent Expenditure Committee ").
E. "Contribution" means a payment, loan, forgiveness of a loan, payment of a
loan by a third party, or an enforceable promise to make a payment except to the extent
that full and adequate consideration is received, unless it is clear from the surrounding
circumstances that it is not made for campaign purposes. An expenditure made at the
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behest of a candidate or committee is a contribution to the candidate or committee, unless
full and adequate consideration is received for making the expenditure.
The term "contribution" includes money or property contributed by the
candidate, as well as discounts or rebates granted by television and radio stations and
newspapers which are not extended on an equal basis to all candidates for the same office.
The term "contribution" includes the purchase of ticket(s) for events such as
dinners, luncheons, rallies and similar fundraising events. Contribution reporting
requirements shall apply when the total accumulative ticket purchases by any one person
exceed the limitations set forth in subsection C 3 of Section 2.40.050.
The term "contribution" includes non - monetary contributions such as art
objects, furniture, and similar items and also includes the receipt of anything of value
transferred from one committee to another.
The term "contribution" does not include amounts received pursuant to an
enforceable, promise to the extent such amounts have been previously reported as a
contribution. However, the fact that such amounts have been received shall be indicated
in the appropriate campaign statement.
The term "contribution" includes the payment of compensation by any person
for the personal services or expenses of any other person if such services are rendered or
expenses incurred on behalf of a candidate or committee without payment of full and
adequate consideration by the candidate or committee.
The term "contribution" does not include a payment made by an occupant of
a home or office for costs related to any meeting or fundraising event held in the occupant's
home or office if the costs for the meeting or fundraising event are $250 or less.
Notwithstanding the definition of "contribution" as set out in this subsection,
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the term does not include volunteer personal services or payments made by any individual
for personal travel expenses, if such payments are made voluntarily without any
understanding or agreement which shall be, directly or indirectly, repaid to the person.
F. 'Election" means any general, special or recall municipal election of the City
of San Luis Obispo.
G. 'Expenditure" means a payment, forgiveness of a loan, payment of a loan by
a third party, or an enforceable promise to make payment, unless it is clear from the
surrounding circumstances that it is not made for political purposes. An expenditure is
made on the date the payment is made or on the date consideration, if any, is received,
whichever is earlier.
H. "Immediate family" means a candidate's or elected officeholder's spouse and
dependent children.
I. "Independent expenditure" means an expenditure made by any person in
connection with a communication which expressly advocates the election or defeat of a
clearly identified candidate or the qualification, passage, or defeat of a clearly identified
measure or taken as a whole and in context, unambiguously urges a particular result in an
election but which is not made to or at the behest of the affected candidate or committee.
(Government Code Section 82031.)
J. "Measure" means any charter amendment or other proposition which is
submitted to a popular vote at any municipal election by the City Council, or which is
submitted or is intended to be submitted to a popular vote at a municipal election by
initiative, referendum or recall procedure whether or not it qualifies for the ballot.
K. "Person" means an individual, proprietorship, firm, partnership, joint venture,
syndicate, business trust, company, corporation, association, committee and any other
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organization or group of persons acting in concert. (Ord. 1067 Section I Ex. A (part), 1986:
prior code Section 2802)
2.40.040 Campaign treasurer -- Appointment required -- Compliance with provisions
required.
A. Each candidate and /or each committee shall appoint a campaign treasurer.
A candidate may serve as the campaign treasurer for his /her campaign or for his /her
committee.
B. Each campaign treasurer shall be responsible for complying with the
requirements of Title 9 of the California Government Code in addition to complying with
the provisions of this chapter. (Ord. 1067 Section 1 Ex. A (part), 1986: prior code Section
2803)
2.40.050 Contributions.
A. Transmittal to Campaign Treasurer. All persons who receive contributions
on behalf of a candidate or committee shall transmit the contributions in full to the
campaign treasurer promptly, together with a list showing the name and address of each
contributor and the amount of the contribution, subject to the exceptions provided in this
section.
B. Refusal to Accept. A candidate or a campaign treasurer shall have full
authority to refuse and to return any contribution offered, provided the contribution is
returned within 14 days of receipt and prior to deposit in the election campaign account.
C. Prohibitions.
1. No person other than a candidate or the candidate's immediate family
members, shall make, and no campaign treasurer shall solicit or accept any
contributions which such person or campaign treasurer knows will cause the total
Gel
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contribution by a person on behalf of a. candidate, or committee supporting or
opposing the election of a candidate, to exceed $100 in any one election.
2. The above contribution limitations do not apply to committees formed
primarily to support or oppose the qualification or passage of a ballot measure.
Ballot measure committees may not make contributions to candidates or committees
which make contributions to candidates.
3. No person shall make a contribution for any other person under an
assumed name or under the name of any other person.
4. No candidate nor any committee shall .retain any amount of $25 or
more from one person or source without obtaining the name and address of that
contributor. Any anonymous contribution of $25 or more shall be forwarded to the
City Clerk and deposited in the City's treasury.
5. For the purposes of this section, a contribution shall be deemed
received at the time of actual receipt by the campaign treasurer.
6. No candidate or candidate's committee shall make or accept any
contribution -of $25 or more after five p.m., Monday, eight days preceding the day
of election, except that a candidate and /or. a candidate's immediate family shall be
permitted to make additional contributions to the candidate or to the candidate's
committee.
7. Any contribution of $1000 or more from a single source which is made
to or received by a committee primarily formed to support or oppose a ballot
measure during the 16 days immediately preceding the election at which the measure
is being voted upon, must be reported to the City Clerk within 24 hours of the time
it is received or contributed. Any contribution of $100 or more from a single source
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which is made to or received by a committee primarily formed to support or oppose
a ballot measure during the eight days preceding the election at which the measure
is being voted upon, must be reported to the City Clerk within 24 hours. Late
contribution reports must be filed by telegram, mailgram, guaranteed overnight
delivery service, or personal delivery (not by regular mail).
8. No person shall deduct or withhold any amount or percentage from any
contribution. Any compensation provided to any person for solicitation, collection
or other service shall be treated as an election expenditure item.
D. Aggregation of Contributions.
1. For the purposes of this section, contributions received from a husband
and wife shall be treated as if received one -half from each unless otherwise
designated by the contributor (Ord. 1067 Section 1 Ex. A (part), 1986: prior code
Section 2804)
2. Contributions made by two or more entities must be combined if the
same person, or a majority of the same person, directs or controls the contributions.
3. Contributions made by business entities in a parent - subsidiary
relationship and business entities with the same controlling owner (more than 50 %)
must be combined unless the business entities act completely independently in their
decisions to make contributions. A parent- subsidiary relationship exists when one
business entity owns more than 50% of another business entity.
2.40.060 Election campaign accounts.
A. Candidate Intention Statement and the Campaign Bank Account..
1. Candidate Intention Statement. Any individual who intends to be a
candidate for a city elective office must file a statement of intention to run for office
prior to soliciting or receiving any contribution or loan. Form 501 (Candidate
Intention) is used to comply with this requirement, and is filed with the Fair Political
Practices Commission. A copy shall be filed with the City Clerk.
2. Candidate Campaign Bank Account. In addition to filing the
Candidate Intention Statement, an individual who plans to run for a city elective
office must set up a campaign bank account at a financial institution located in San
Luis Obispo. Within ten days of opening the account, the candidate must file Form
502 (Campaign Bank Account) with the Fair Political Practices Commission. A copy
shall be filed with the City Clerk.
B. Statement of Organization. For each campaign bank account into which
contributions totalling $1,000 are received (including the candidate's personal funds) or
within ten days of receiving contributions of $1,000 or more, a recipient committee
Statement of Organization (Form 410) must be filed with the State. A copy shall be filed
with the City Clerk. If a Recipient Committee qualifies during the 16 days prior to an
election, it must file, by telegram or personal delivery within 24 hours of qualifying as a
committee, the information required to be reported in the Statement of Organization. This
form shall be filed wtih the City Clerk.
C. Deposit of contributions. All campaign contributions accepted by a campaign
treasurer shall be deposited into the election campaign account by the campaign treasurer
or authorized agent.
D. Expenditures. Campaign expenditures shall be made only by checks drawn
against the election campaign account by the campaign treasurer or authorized agent, except
that a candidate or committee may establish one petty cash account.
1. No more than $100 may be in the petty cash fund at any one time and
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no expenditure totaling $25 or more may be made from a petty cash account. The
petty cash account may be used only for expenses associated with the candidate's
election to the specific office for which the petty cash fund was established.
2. Petty cash or funds in the election campaign account shall not be
considered for any purpose to be personal funds of a candidate, campaign treasurer
or any other person.
D. Access to Records by City Clerk. The City Clerk shall have full access at all
reasonable hours to the bank's records concerning all election campaign accounts.
E. Disbursement of Unexpended Campaign Funds. If, following the election, the
final campaign statement for any committee discloses an unexpended campaign surplus, the
campaign treasurer shall disburse the whole of the surplus to the city and /or a nonprofit
charitable (qualified for federal income tax exemption) organization of the campaign
treasurer's choice. This shall be done no later than the state's third campaign disclosure
statement deadline.
F. Closing of Account. Following the election and no later than the state's third
campaign disclosure statement deadline, the campaign treasurer shall close the election
campaign account and a second City campaign statement (Form 101 or 102) with the City
Clerk. State Form 415 is required if the total campaign account totaled $1,000 or more and
is filed with the Secretary of State (a copy shall be filed with the City Clerk) verifying the
closure and listing of donees of all disbursements authorized by subsection E of this section,
and the dollar amounts given to each donee.
G. Retention of Records. The campaign treasurer shall retain all campaign
statements and all other records required by this chapter for a period of four years after
the election. (Ord. 1067 Section 1 Ex. A (part), 2.40.070F, 1986: prior code Section 2805)
M]
2.40.070 Campaign statements.
A. Required Filing Schedule. Every campaign treasurer, upon receiving or
expending $25 or more shall file with the City Clerk campaign disclosure statements
according to the following schedule:
1. State campaign disclosure statements shall be filed as required by the
provisions of Title 9 of the California Government Code.
2. A city campaign statement (Form 101 or 102) shall be filed no later
than 12:00 noon, Tuesday, one, week before the election. The closing date of this
statement shall be five p.m., Monday, eight days before the election.
B. Contents.
1. Each state campaign statement filed shall contain the information
required under the provisions of Title 9 of the California Government Code.
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2. The city campaign statement (Form 101 or 102) shall consist of:
a. The name, address and amount of the contribution for each
person who contributes $25 dollars or more.
b. The total amount received from all persons who each contribute
less than $25.
C. The name and address of each person expending $25 or more
if qualifying as an Independent Expenditure Committee.
d. The total expenditures made by each committee.
C. Filing. Each document required to be filed in this chapter shall be filed with
the City Clerk during business hours, and elsewhere as may be required by Title 9 of the
California Government Code.
D. Filing fees, if any, shall be established by Council resolution.
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E. Publication. On the Saturday preceding the election, the City Clerk shall
publish in a newspaper of general circulation within the city the following information for
each committee:
1. Total receipts;
2. Total expenditures;
3. Contributions: the name of each person contributing $25 or more with
the amount contributed;
4. The name of each person(s) expending $25 or more if filing as an
independent expenditure committee;
5. In the event a candidate and /or committee fails to comply with the
campaign statement requirements pursuant to Section 2.40.070, a statement which
the candidate and /or committee has failed to comply by the required deadline.
2.40.080 City Clerk duties.
A. Duties. In addition to any other duties required of the City Clerk under this
chapter, the City Clerk shall:
1. Prescribe and furnish, without charge, appropriate forms for all
campaign statements, documents and reports required to be filed by this
chapter;
2. Determine whether required statements and declarations have been
filed and, if so, whether they conform on their face with the requirements of
this chapter;
3. Promptly notify all persons who have failed to file a statement in the
form and at the time required by this chapter;
4. Report, in writing, apparent violations of this chapter to the. City
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Attorney;
5. Compile and maintain a current list of all filed statements pertaining
to each reporting committee;
6. Permit a candidate to file a 400 word statement of qualifications and
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a brief description of his /her stand on local issues at a date to be established by the
City Clerk.
Such statement shall be on a form provided by the City Clerk in
accordance with any other provision as set forth by Elections Code Section 10012 et
seq.
7. Place a timely advertisement(s) in a newspaper of general circulation
advising the public that a person(s) supporting or opposing a candidate(s) or a
measure through newspaper or other advertisements may be subject to city reporting
requirements.
B. Obtain Additional Help or Services. The City Clerk is authorized and
directed to hire part -time help, contract for services, and purchase supplies as the City Clerk
deems necessary to carry out the additional duties imposed on the City Clerk's Office by
this chapter. Within ninety days after each election, the City Clerk shall provide the council
with a detailed report of the total direct and indirect labor, materials and other costs
incurred by the City Clerk's Office in performing such additional duties (Ord. 1067 Section
1 Ex. A (part), 1986; prior code Section 2807)
2.40.090 Criminal Misdemeanor Actions.
A. Any person who violates any provision of this Chapter is guilty of a
misdemeanor. Any person who causes any other person to violate any provision of this
Chapter, or who aids and abets any other person in the violation of any provision of this
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Chapter, shall be liable under the provisions of this Section.
2.40.100 Civil Actions.
A. Any person who intentionally or negligently violates any provision of this Chapter
shall be liable in a civil action brought by the City Attorney or by a person residing within
the city for an amount nor more than three times the amount of the unlawful contribution
or expenditure.
B. If any person files an original city campaign disclosure statement after any
deadline imposed by this Chapter, he or she shall pay, in addition to any other penalties
provided for under this Chapter, the sum of $100 per day after the deadline until the
statement or report is filed. Liability may not be enforced if on an impartial basis the filing
officer determines that the late filing was not willful and that enforcement of the liability
will not further the purposes of this Act. Liability shall not be waived if the first city pre-
election campaign statement is not filed within five days, and the second and final city
campaign statement is not filed within 10 days of the deadline after filing officer has sent
specific written notice of the filing requirement.
C. If two or more persons are responsible for any violation, they shall be jointly
and severally liable.
D. Any person, before filing a civil action pursuant to this section, shall first file
with the City Attorney a written request for the City Attorney to commence the action.
The request shall contain a statement of the grounds for believing a cause of action exists.
The City Attorney shall respond within ten (10) days after receipt of the request indicating
whether he or she intends to file a civil action. If the City Attorney indicates in the
affirmative and files a suit within thirty (30) days thereafter, no other action may be brought
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brought unless the action brought by the City Attorney is dismissed without prejudice.
.E. In determining the amount of liability, the court may take into account the
seriousness of the violation and the degree of culpability of the defendant. If a judgment
is entered against the defendant or defendants in an action, the plaintiff shall receive fifty
percent of the amount recovered. The remaining fifty percent shall be deposited into the
city treasury. In an action brought by the City Attorney, the entire amount shall be paid
to the city treasury.
F. No civil action alleging a violation of any provision of this Chapter shall be
filed more than four (4) years after the date the violation occurred.
2.40.110 Injunctive Relief.
Any person residing in the city, including the City Attorney, may sue for injunctive
relief to enjoin violations or to compel compliance with the provisions of this Chapter.
2.40.120 Cost of Litigation.
The court may award to a plaintiff or defendant who prevails in any action
authorized by this Chapter, his or her costs of litigation, including reasonable attorneys'
fees, provided however, no costs of litigation or attorneys' fees shall be awarded against the
city.
2.40.130 Disqualification.
In addition to any other penalties prescribed by law, if an official receives a
contribution in violation of this Chapter 2.40, the official shall not be permitted to make,
participate in making or in any way attempt to use his or her official position to influence
a governmental decision in which the contributor has a financial interest. The provisions
of Government Code Sections 87100 et seq. and the regulations of the Fair Political
Practices Commission shall apply to interpretations of this Section. (Ord. 1067 Section 1
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Ex. A (part), 1986; prior code Section 2809)
2.40.140 Construction of provisions.
A. This chapter shall be in addition to all other city and state laws applicable to
municipal elections. Unless the contrary is stated or clearly appears from the context, the
definitions and terms set forth in Title 9 of the California Government Code shall govern
the interpretations of terms used in this chapter. This chapter shall be construed liberally
in order to effectuate its purposes.
B. If any provision of this chapter, or the application thereof to any person or
circumstance, is held invalid, the validity of the remainder of the chapter and the
applicability of such provision to other persons and circumstances shall not be affected
thereby. (Ord. 1067 Section 1 Ex. A (part), 1986; prior code Section 2810)
2.40.150 Council study committee.
Appointment. At least nine months prior to the expiration of this chapter, the
council shall appoint a committee of at least five citizens to study the efficacy of this
chapter. The committee shall complete its deliberations and report its findings to the City
Council on or before January 31, 1995. (Ord. 1067 Section 1 Ex. A (part), 1986; prior code
Section 2811)
2.40.160 Expiration of provisions.
Unless readopted, this chapter shall expire on June 30, 1995. (Ord. 1067 Section
1 Ex. A (part), 1986; prior. code Section 2812)
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