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ORDINANCE 1341ORDINANCE NO. 1341 AN ORDINANCE AMENDING IN ITS ENTIRETY CHAPTER 9 IN TITLE 1 OF THE EL SEGUNDO MUNICIPAL CODE ENTITLED "CAMPAIGN CONTRIBUTIONS." The city council of the city of El Segundo does ordain as follows: SECTION 1: The city council finds and declares as follows: A. The ability to contribute time and money to local political campaigns is a legitimate and important means of participating in the political process. B. Large monetary contributions, however, may give at least the appearance that candidates for elective office may be unduly influenced through financial means. C. It is in the public interest that the City have a means by which all persons within the community have a fair and equitable opportunity to participate in local government whether by elected office or through other means. D. To assist with the goal of providing an even playing field to all candidates seeking elective office, and to engender public trust in the political process, the City Council enacted regulations for campaign contributions. Specifically, the City Council enacted Ordinance No. 1146, adopted January 16, 1990, and Ordinance No. 1278, adopted October 21, 1997, which added Chapter 9 to Title 1 of the El Segundo Municipal Code (`SSMC') entitled Campaign Contributions and consisting of §§ 1 -9 -1 to 1 -9 -7. E. In general, Chapter 9 required candidates to disclose the source of campaign contributions when the amounts of such contributions exceeded a voluntary cap. F. In 1996 and 2000, the California electorate approved two propositions that implemented regulations for campaign contributions on a statewide basis. Proposition 208, enacted in 1996, was challenged and has been partially invalidated; Proposition 34, enacted in 2000, was designed, in part, to cure the deficiencies in Proposition 208 and became effective in January 2001. ORDINANCE NO. 1341 AMENDING EL SEGUNDO MUNICIPAL CODE "CAMPAIGN CONTRIBUTIONS" PAGE NO. 1 G. When adopting this Ordinance, the City Council considered, among other things, Government Code §§ 85101 and 85102; and the California Supreme Court's decision in Griset v. Fair Political Practices Commission (1994) 8 Cal.4t' 851, cent. den. 15 S.Ct. 1794, and the cases cited therein. The regulations adopted by this Ordinance are intended to balance individual's First Amendment rights with the electorate's right to be fully informed and the public interest in preventing corruption in local elections. H. The City Council agrees with the findings of Government Code § 85102 and incorporates those findings by reference into this Ordinance. I. By adopting these regulations, the City intends to fully inform voters regarding candidate and campaign viewpoints; to assist voters with distinguishing between accurate and deceptive information; deter defamatory statements; prevent corruption; and assist law enforcement. J. The City has a compelling interest to promote an informed electorate; deter corruption in local elections; and gather evidence to facilitate enforcement of local election regulations. Accordingly, it is in the public interest to adopt regulations imposing strict disclosure requirements upon, among other things, unsolicited campaign literature that is distributed during the course of local political campaigns. SECTION 2: Chapter 9 to Title 1 of the ESMC, entitled Campaign Contributions, consisting of §§ 1 -9 -1 to 1 -9 -7 is entirely amended to read as follows: "Chapter 9 CAMPAIGN CONTRIBUTIONS AND DISCLOSURES 1 -9 -1: Purpose. The California Political Reform Act (Government Code §§ 81000, et seq.) imposes a number of requirements upon persons supporting or opposing candidates and ballot measures. Among other things, the Political Reform Act generally restricts anonymous contributions and requires disclosure for mass mailings. Under Government Code §§ 81013 and 85703 the City may impose more restrictive regulations for local elections. Accordingly, this Chapter 9 is added to the City's Code to further the public's compelling interest for full disclosure in local elections in order to better inform the electorate and prevent political corruption. Nothing contained in this Chapter 9 is intended, nor should it be construed, to supplant the Political Reform Act's requirements, or of its regulations; this Chapter is intended only to supplement the Political Reform Act as to local elections. ORDINANCE NO. 1341 AMENDING EL SEGUNDO MUNICIPAL CODE "CAMPAIGN CONTRIBUTIONS" PAGE NO.2 1 -9 -2: Definitions. Except as otherwise stated below, the words and phrases used in this Chapter generally have the same meanings as in the California Election Code, the Political Reform Act, and those regulations promulgated by the Fair Political Practices Commission. In addition, unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter: A. "Campaign literature" means unsolicited circulars, pamphlets, letters, posters, or other reproduced matter referring to an election, candidate, or any ballot measure. Campaign literature does not include other campaign paraphernalia such as, without limitation, pencils, buttons, or similar items. B. " "Contribution" means a payment, loans and extensions of credit (other than those made by financial institutions), a payment of a loan from a financial institution 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 political purposes. An expenditure made at a candidate's, committee's, or elected officer's direction is a contribution to the candidate, committee, or elected officer, unless fall and adequate consideration is received for making the expenditure. "Contribution" includes purchasing tickets for events such as dinners, luncheons, rallies, and similar fund- raising events; granting discounts or rebates not extended to the public generally or granting discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all candidates for the same office; and paying 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. 2. "Contribution" also includes any transfer of anything of value received by a committee from another committee. The term does not include amounts received under an enforceable promise to the extent such amounts were previously reported as a contribution. However, these amounts will be reported in the appropriate campaign statement. 3. "Contribution" does not include volunteer personal services or payments made by any individual for his or her own travel expenses if such payments are made voluntarily without any understanding or agreement that they will be directly or indirectly repaid to him. ORDINANCE NO. 1341 AMENDING EL SEGUNDO MUNICIPAL CODE "CAMPAIGN CONTRIBUTIONS" PAGE NO. 3 C. "Person" means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, controlled committee, or committee. 1 -9 -3: Anonymous Contributions Prohibited. It is unlawful for any person to make, and any candidate, controlled committee, or committee to solicit or accept, any anonymous contribution in a local election. 1 -9 -4: Campaign Statement Information. For local elections, candidates, elected, officers, controlled committees, and committees will include the information required by Government Code § 84211 regarding all persons contributing $25.00 (twenty -five dollars) or more to a campaign in campaign statements. 1 -9 -5: Anonymous Mailings Prohibited. A. It is unlawful for any person, candidate, or committee to send any unsolicited piece of mail supporting or opposing any candidate or ballot measure in a local election that does not comply with the requirements of Government Code § 84305 or, if a slate mailer, Government Code § 84305.5. B. In addition to the requirements of Government Code § 84305 or, if applicable, Government Code § 84305.5, campaign literature including, without limitation, mailers, will include the name of any person contributing twenty -five percent (25 %) or more of the cost for producing the campaign literature. The text identifying such persons will conform with the requirements of Government Code § 84305 or, if applicable, Government Code § 84305.5. 1 -9 -6: Liberal Interpretation. This Chapter will be liberally construed to accomplish its purpose. 1 -9 -7: Filing Deadlines. A. A final pre - election filing of updated versions of all documents required by the Political Reform Act and this Chapter will be filed by candidates and committees and received by the City Clerk by twelve o'clock (12:00) noon on the final Friday before the election and will reflect all actual and anticipated expenditures and contributions through the date of the election. B. A final post- election filing of all documents required by the Political Reform Act and this Chapter must be received by the City Clerk by twelve o'clock (12:00) noon on the third day after the election which will reflect all actual expenditures and contributions to candidates and committees through the date of the election. ORDINANCE NO. 1341 AMENDING EL SEGUNDO MUNICIPAL CODE "CAMPAIGN CONTRIBUTIONS" PAGE NO. 4 1 -9 -8: Enforcement and Penalties. The means of enforcing this Chapter, and the penalties for violating it, are set forth in the Political Reform Act which will apply to this Chapter and are mandatory. In addition to any other penalty, the court may award a prevailing party costs of litigation, including reasonable attorney fees." SECTION 3: If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 4: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 5: This Ordinance will become effective thirty (30) days following its passage and adoption. PASSED AND ADOPTED this 7th day of November 2001. yor Pro Cm Saril a Jacobs, for 1 Mike Gordon, Mayor ORDINANCE NO. 1341 AMENDING EL SEGUNDO MUNICIPAL CODE "CAMPAIGN CONTRIBUTIONS" PAGE NO. 5 ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1341 was duly introduced by said City Council at a regular meeting held on the 16th day of October 2001, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 7th day of November , 2001, and the same was so passed and adopted by the following vote: AYES: Jacobs, Gaines, McDowell, Wernick NOES: None ABSENT: Gordon ABSTAIN: None CdCtN—h(M 6fiAM Cindy Mortesen, City Clerk APPROVED AS Mark D. Henslev By: jr t Karl H. Berger Assistant City At ORDINANCE NO.' 1341 AMENDING EL SEGUNDO MUNICIPAL CODE "CAMPAIGN CONTRIBUTIONS" PAGE NO. 6 CITY OF EL SEGUNDO AFFIDAVIT OF POSTING: STATE OF CALIFORNIA } COUNTY OF LOS ANGELES } ss CITY OF EL SEGUNDO } AFFIDAVIT OF POSTING: (Insert title of document below) ORDINANCE NO. 1341 AN ORDINANCE AMENDING IN ITS ENTIRETY CHAPTER 9 IN TITLE 1 OF THE EL SEGUNDO MUNICIPAL CODE ENTITLED "CAMPAIGN CONTRIBUTIONS ". I, Cathy Domann, declare as follows: That I am the Deputy City Clerk, acting as a Secretary to the El Segundo City Council; that a copy of the document listed above for the meeting of November 7, 2001 was posted at the following conspicuous place City Hall Front Window on November 13, 2001 at 9:00 a.m. I declare under the penalty of perjury that the foregoing is true and correct. Executed on November 13, 2001. (Signature)