1.09.040 DEFINITIONS.

This chapter shall be known and may be cited as the "City of Anaheim Campaign Reform Law." (Ord. 5704 § 2 (part); October 19, 1999; Ord. 5858 § 1 (part); May 20, 2003.)

1.09.020 PURPOSE.

The purpose of this chapter is to ensure that the financial strength of certain individuals or organizations does not permit them to exercise a disproportionate or controlling influence on the election of city candidates. To achieve such purpose, this chapter is designed to reduce the influence of large contributions; to ensure that individuals and interest groups continue to have a fair and equal opportunity to participate in electing city candidates; to minimize the opportunity for, and the appearance or perception of, corruption; to prevent contributors from circumventing the contribution limits; and to maintain public trust in governmental institutions and the electoral process. (Ord. 5704 § 2 (part); October 19, 1999; Ord. 5858 § 1 (part); May 20, 2003.)

1.09.030 RELATION TO POLITICAL REFORM ACT OF 1974.

This chapter is intended to supplement the Political Reform Act of 1974. 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 Regulation, as the same may be, from time to time, amended. (Ord. 5704 § 2 (part); October 19, 1999; Ord. 5858 § 1 (part); May 20, 2003.)

1.09.040 DEFINITIONS.

.010 Business Entity. “Business Entity” means proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, and limited liability company.

.020 City Candidate. “City candidate” means any person who is a candidate for member of the City Council or Mayor of the City of Anaheim or any elective city officer whether or not such officer is a candidate for reelection.

.030 City Election. “City election” means any general election, special election or recall election.

.040 City Office. “City office” shall mean either the office of Mayor or the office of City Council. The City Council seats which have terms which expire at the same general municipal election shall be deemed the same city office for purposes of this chapter.

.050 Election Cycle. “Election cycle” shall mean the applicable period as set forth in Section 1.09.060 of this chapter.

.060 Elective City Officer. “Elective city officer” means any person who is a member of the City Council, including the Mayor of the City of Anaheim, whether appointed or elected.

.070 Indebted Former Candidate. “Indebted former candidate” means a person, including an elective city officer, who was a candidate for a city office at any city election and who has campaign debt remaining from such election after expiration of the election cycle for the city office for which he or she was a candidate.

.080 Person. “Person” means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, labor union, committee, and any other organization or group of persons acting in concert. (Ord. 5704 § 2 (part); October 19, 1999; Ord. 5858 § 1 (part); May 20, 2003: Ord. 6197 § 1; November 16, 2010.)

1.09.050 CONTRIBUTION LIMITATIONS.

.010 City Candidates. Except as provided in subsection .020 of this section, no person shall make, and no city candidate or treasurer of any controlled committee of any city candidate shall solicit or accept, any contributions which would cause the total amount contributed by such person to such candidate or his or her controlled committee to exceed the contribution limit set forth in subsection .050 of this section during any election cycle for any city office.

.020 Candidates with Outstanding Debt From Prior Election. No person shall make, and no indebted former candidate, or treasurer of any controlled committee of any indebted former candidate shall solicit or accept, any contributions for the purpose of retiring outstanding debt from a prior city election, which would cause the total amount contributed by such person to such indebted former candidate, or to his or her controlled committee, to exceed the contribution limit set forth in subsection .050 of this section for the election in which the outstanding debt was incurred, regardless of when the contribution(s) is made or received.

.030 Recall Elections. The contribution limit set forth in subsection.050 of this section shall not apply to any committee which collects contributions for the purpose of making expenditures in support of or opposition to the recall of an elective city officer, but shall apply to contributions received by such elective city officer and to candidates running to replace the elective city officer, during a recall election cycle as defined in Section 1.09.060 of this chapter.

.0301 In the event any recall effort fails, any funds remaining in the elective city officer’s recall account after all expenses associated with the proposed recall are discharged shall be disposed of by either of the following two methods:

.01 Repayment of the contributions on a “last in - first out” basis, or

.02 Donation to any bona fide charitable, educational, civic, religious, or similar tax-exempt nonprofit organization, where no substantial part of the proceeds will have material financial effect on the elective city officer, or any member of his or her immediate family, or his or her campaign treasure or campaign consultant.

.0302 In the event any recall effort fails, the recall account and committee shall be terminated within ninety (90) days of paying all expenses associated with the recall.

.040 Candidate’s Personal Funds. The provisions of this section shall not apply to a city candidate’s contribution of his or her personal funds to his or her own controlled committee. Contributions from community property owned jointly by a city candidate and his or her spouse shall be deemed contributions by the city candidate. Contributions by the spouse of a city candidate from such spouse’s separate property shall be subject to the contribution limitations set forth in subsection .050 of this section.

.050 Contribution Limit. The term ‘Contribution Limit’ as used in this chapter shall means as follows:

.0501 The Contribution Limit in effect for the period commencing on the effective date of this subsection through December 31, 2006, shall be one thousand five hundred dollars ($1,500).

.0502 The City Council shall, by ordinance, adjust the contribution limitations in January of odd-numbered years to reflect any cumulative increase or decrease in the Consumer Price Index for all urban consumers for the Los Angeles-Long Beach-Anaheim Urban Area as announced by the United States Department of Labor since the last adjustment. Such adjustments shall be rounded off to the nearest hundred dollars for the limitations on contributions.

The City Clerk shall notify all candidates for city office of the amount of the Contribution Limit then in effect. (Ord. 5704 § 2 (part); October 19, 1999; Ord. 5835 § 1; October 29, 2002; Ord. 5858 § 1 (part); May 20, 2003; Ord. 5965 § 1; April 26, 2005; Ord. 6049 § 1: March 6, 2007: Ord. 6197 § 2; November 16, 2010; Ord. 6567 § 3; February 27, 2024.)

1.09.052 SLATE MAILERS.

.010 The provisions of Government Code Section 82048.4 are not incorporated in, and shall not be used in the interpretation of, the City of Anaheim Campaign Reform Law.

.020 If a slate mailer is produced and/or distributed other than at the behest of a city candidate, then it is an independent expenditure, and is not subject to the contribution limitations of this chapter.

.030 The provisions of this section shall apply only to slate mailers in which more than ten percent (10%) of the surface area of the slate mailer expressly advocates or opposes the election of an individual city candidate.

.040 If a third party has provided funds to the slate mailer organization that are used for the production and/or distribution of a slate mailer at the behest of a city candidate, then:

.0401 The attributable cost of production and/or distribution of the slate mailer is a contribution from such third party to the city candidate to the extent the attributable cost of production and/or distribution exceeds the amount, if any, paid by the city candidate or the controlled committee of such candidate, up to the total of the funds provided by the third party, and such contribution is subject to the contribution limitations of this chapter; and

.0402 The attributable cost of production and/or distribution of the slate mailer that exceeds the total of the funds provided by the third party and any funds paid by the city candidate or the controlled committee of such candidate is a contribution from the slate mailer organization to the city candidate, and such contribution is subject to the contribution limitations of this chapter.

.050 If a slate mailer is produced or distributed at the behest of a city candidate, without any contribution from a third party, then the attributable cost of production and/or distribution is a contribution from the slate mailer organization to the city candidate to the extent the attributable cost of production and/or distribution exceeds the amount, if any, paid by the city candidate or the controlled committee of such candidate to the slate mailer organization, and such contribution is subject to the contribution limitations of this chapter.

.060 If a slate mailer expressly opposes the election of a city candidate, and the slate mailer is produced and/or distributed at the behest of an opposing city candidate (“the opponent”), then:

.0601 If a third party has paid the slate mailer organization to oppose the city candidate:

.01 The attributable cost of production and/or distribution of the slate mailer is a contribution from the third party to the opponent to the extent it exceeds any payment to the slate mailer organization from the opponent or the controlled committee of such opponent up to the total amount paid to the slate mailer organization by the third party to oppose the city candidate, and such contribution is subject to the contribution limitations of this chapter; and

.02 The attributable cost of production and/or distribution of the slate mailer that exceeds the total of the payment made to the slate mailer organization by the third party to oppose the city candidate and any payment made to the slate mailer organization by the opponent or the controlled committee of such opponent is a contribution from the slate mailer organization to the opponent, and such contribution is subject to the contribution limitations of this chapter.

.0602 If no third party has paid the slate mailer organization to oppose the city candidate, then the attributable cost of production and/or distribution is a contribution from the slate mailer organization to the opponent to the extent the attributable cost of production and/or distribution exceeds the amount, if any, paid by the opponent or the controlled committee of such opponent to the slate mailer organization, and such contribution is subject to the contribution limitations of this chapter.

.070 “Attributable cost of production and/or distribution” is computed by multiplying the total cost of production and/or distribution of the slate mailer by a fraction, the numerator of which is the number of square inches of the mailer that expressly advocates or opposes the election of a city candidate, and the denominator of which is the number of square inches of the mailer devoted to all candidates.

.080 A slate mailer is produced and/or distributed at the behest of a city candidate:

.0801 If the city candidate, or his/her controlled committee, or the candidate’s or committee’s agent or consultant, pays any of the costs for the slate mailer, or provides any information or photographs used in the mailer, or consults or confers with the slate mailer organization in any manner regarding the content, timing, or distribution of the slate mailer; or

.0802 Under any of the circumstances described in Section 18225.7(a) and Section 18225.7 (b) of Title 2 of the California Code of Regulations, as those sections exist as of June 1, 2002.

.0803 A non-refundable deposit made to a slate mailer organization shall not be considered a payment within the meaning of paragraphs .0801 or .0802 above, if either (a) the deposit is made by, or on behalf of, a city candidate who is not opposed in the city election, or (b) the deposit is made as consideration for a written agreement whereby the slate mailer organization obligates itself to not produce a slate mailer in which more than ten percent (10%) of the surface area of the slate mailer expressly advocates or opposes the election of the city candidate by, or for whom, the deposit is made. (Ord. 5819 § 1; August 27, 2002; Ord. 5858 § 1 (part); May 20, 2003: Ord. 6197 § 3; November 16, 2010.)

1.09.053 ELECTRONIC FILING OF CAMPAIGN DISCLOSURE.

.010 Except as set forth in subsections .050 and .060 herein, any elected officer, candidate, committee or other person required to file specified statements, reports, or other documents with the City Clerk as required by Chapter 4 (commencing with Section 84100) of Title 9 of the California Government Code, also known as the Political Reform Act, and that has received contributions or made expenditures of $1,000 or more, may electronically file such statement using the City Clerk’s online system according to procedures established by the City Clerk.

.020 To ensure reporting continuity, once a statement, report or other document is filed electronically on behalf of any elected officer, candidate, or committee as set forth in subsection .010, above all future statements, reports and other documents on behalf of that officer, candidate or committee shall be required to be filed electronically using the City Clerk system.

.030 Any elected officer, candidate, committee or other person who has electronically filed a statement, report, or other document using the City Clerk’s online system is not required to file a copy of that document in paper format with the City Clerk.

.040 An elected officer, candidate, committee or other person may choose to opt-out of the electronic filing system by filing all original statements, reports or other documents in paper format with the City Clerk. Electronic filing is not required until after an elected officer, candidate, committee or other person opts-in by electronically filing a statement, report or other document.

.050 In any instance in which an original statement, report, or other document must be filed with the Secretary of State or Orange County Registrar of Voters, and a copy of that document is required to be filed with the Anaheim City Clerk, the filer may electronically file a copy with the Anaheim City Clerk, the filer may, but is not required to file the copy online or electronically.

.060 If the City Clerk’s system is not capable of accepting a particular type of statement, report or other document, an elected officer, candidate, committee or other person shall file that document in paper format with the City Clerk. (Ord. 6293, § 1; February 4, 2014.)

1.09.055 CONTRIBUTIONS FOR OFFICEHOLDER EXPENSES*.

.010 Notwithstanding any other provision of this chapter to the contrary, the controlled committee of an elective city officer for the immediate past election at which said city officer was elected or reelected to office may solicit and accept campaign contributions after the end of the election cycle for said election, and said contributions, regardless of when received, shall be regarded as campaign contributions made in said immediate past election cycle for purposes of the contribution limitation set forth in subsection 1.09.050.010, provided such contributions are used by the elective city officer or said controlled committee solely for the purpose of defraying the expenses of holding such city office, and further provided:

.0101 The controlled committee has retired all debt from the immediate past election at which said city officer was elected prior to expending any contributions pursuant to this section for the purpose of defraying the expenses of holding such city office; and

.0102 Any such contribution is deposited into the campaign contribution account of the controlled committee for said immediate past city election at which said elective city officer was elected or reelected in accordance with the requirements of state law; and

.0103 Any such contribution is reported as a campaign contribution on Schedule A of Fair Political Practices Commission Form 460, or any successor reporting form thereto, as required under state law and, in addition thereto, clearly designates on said reporting form that such contribution was made for the purpose of defraying the expenses of holding such city office; and

.0104 Any such contribution is used solely for the expenses of holding such city office and the use thereof is reported as an expenditure on Schedule A of Fair Political Practices Commission Form 460, or any successor reporting form thereto, as required under state law, and in addition thereto, clearly designates on said reporting form that such expenditure was made for the purpose of defraying the expenses of holding such city office; and

.0105 The treasurer of said controlled committee is provided with, and retains for a minimum period of three years, a dated receipt and a written description of the expenditure; and

.0106 Any such contributions, together with all other contributions made to the elective city officer, or his or her controlled committee, by the same contributor, during or attributed to said election cycle do not exceed the amount set forth in subsection 1.09.050.010 of this chapter; and

.0107 No contributions received for the purpose of defraying the expenses of holding city office shall be transferred to any other city candidate, elective city officer, or any other committee; and

.0108 Any contributions accepted for the purpose of defraying the expenses of holding city office and remaining in the bank account of the elective city officer or his or her controlled committee, upon the date such elective city officer's current term of office ends, shall be either returned to the contributors, deposited in the City's general fund, or donated to any bona fide charitable, educational, civic, religious, or similar tax-exempt nonprofit organization, where no substantial part of the proceeds will have a material financial effect on the former city officer, any member of his or her immediate family, or his or her campaign treasurers; and

.0109 No controlled committee which accepts any contribution pursuant to this section for the purpose of defraying the expenses of holding any city office shall solicit or accept any campaign contribution(s) for any future city election, or redesignate such controlled committee as the controlled committee for any future election. Nothing contained in this section shall prohibit an elective city officer from creating a new controlled committee for the purpose of soliciting and accepting campaign contributions for a future election; and

.0110 No contributions shall be accepted and no expenditures shall be made or expenses incurred pursuant to this section for the purpose of defraying the expenses of holding city office by the controlled committee of any elective city officer who is eligible for election or reelection to any city office, within six months prior to the date such elective city officer's current term of office expires, or after the filing for election or reelection to any city office, whichever occurs first. Nothing contained in this paragraph shall prohibit an elective city officer's controlled committee from soliciting or accepting any contribution, making any expenditure, or incurring any expense, for the purpose of defraying the expenses of holding city office, following the date of any city election at which said elective city officer is a candidate, or following expiration of the applicable filing period for any such city office in the event said officer fails to file for election or reelection.

.020 The term "expenses of holding city office," as used in this section, shall mean any expenditure from campaign contributions by an elective city officer, or his or her controlled committee, lawfully permitted to be made from campaign contributions under the Political Reform Act and its implementing regulations, except any expenditure for "election-related activities," as such term is defined in Section 82015(b)(2)(C) of the Government Code or any successor provision thereto. (Ord. 5858 § 1 (part); May 20, 2003.)

* Editor's Note: Prior ordinance history: Ord. 5704 § 2 (part); October 19, 1999.

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