HomeMy WebLinkAbout13 - Modifying the City's Regulation of Municipal Campaign Contribution and Expenditure Limits and Establishing Lobbyist Registration, Reporting and Disclosure RequirementsPORT CITY OF
O �
_ i NEWPORT BEACH
City Council Staff Report
<i FO RN
November 5, 2019
Agenda Item No. 13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Leilani I. Brown, City Clerk - 949-644-3005,
(brown@newportbeachca.gov
Aaron C. Harp, City Attorney - 949-644-3131,
aharp@newportbachca.gov
PREPARED BY: Aaron C, Harp, City Attorney
aharp newportbeachca.gov
PHONE: 949-644-3131
TITLE: Introduction of Ordinances Modifying the City's Regulation of
Municipal Campaign Contribution and Expenditure Limits and
Establishing Lobbyist Registration, Reporting and Disclosure
Requirements
ABSTRACT:
On April 9, 2019, the City Council adopted Resolution No. 2019-33 forming an Ad Hoc
Committee on Election Reform ("Committee") to determine whether the provisions of the
Newport Beach Municipal Code ("NBMC") should be modified or updated. After several
Committee meetings and a public meeting, the Committee is recommending that the City
Council adopt ordinances: (1) modifying the regulations governing campaign contribution
and expenditure limits; and (2) establishing lobbyist registration, reporting and disclosure
requirements.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act
("CEQA") pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines
because this action will not result in a physical change to the environment, directly or
indirectly;
b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2019-19, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Chapter 1.25 of Title 1 of the Newport Beach Municipal Code
Pertaining to Municipal Campaign Contribution and Expenditure Limits, and pass to
second reading on November 19, 2019; and
c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2019-20, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Section 1.12.020, Subsection J, and Adding Chapter 1.28 to
Title 1 of the Newport Beach Municipal Code to Increase Transparency in
Government Operations and Establish Lobbyist Registration, Reporting and
Disclosure Requirements, and pass to second reading on November 19, 2019.
13-1
Introduction of Ordinances Modifying the City's Regulation of Municipal Campaign
Contribution and Expenditure Limits and Establishing Lobbyist Registration,
Reporting and Disclosure Requirements
November 5, 2019
Page 2
FUNDING REQUIREMENTS:
There is no fiscal impact related to the adoption of these ordinances.
DISCUSSION:
On April 9, 2019, the City Council adopted Resolution No. 2019-33 forming an Ad Hoc
Committee on Election Reform ("Committee") to determine whether the provisions of the
Newport Beach Municipal Code ("NBMC") should be modified or updated. Specifically,
the Committee was asked by the City Council to analyze whether: (1) the NBMC
regulation of campaign contribution and expenditure limits should be updated; (2)
campaign fundraising should be limited to one year prior to an election; (3) the City of
Newport Beach ("City") should enact lobbyist registration, reporting and disclosure
requirements; and (4) the City should impose additional regulations on slate mail.
Campaign Contribution and Expenditure Limitation Ordinance
After careful consideration and holding a public forum on October 14, 2019, the
Committee is recommending that the City Council adopt an ordinance modifying the
regulations governing campaign contribution and expenditure limits. The primary
changes to the regulations include: (1) the adoption of procedures for donors and
candidates to cure inadvertent/unintentional violations; and (2) the modification of
procedures to hold donors and candidates responsible for intentional violations.
Under the proposed ordinance, donors and candidates would have fourteen (14) days
from discovery/notice of an inadvertent/unintentional violation of the regulation limiting
campaign contributions to take action to cure the violation. If the donor or candidate fails
to take action to cure an inadvertent/unintentional violation within this time or if there is
willful violation of the law, the person would be subject to referral for prosecution by the
District Attorney.
In addition, the Committee considered limiting fundraising to one year prior to an election.
The Committee is not recommending the City Council adopt this type of limitation because
the Committee was concerned that such a change would give an unfair advantage to
incumbents, self-funded candidates, and persons making non -coordinated independent
expenditures.
Lobbyist Registration, Reporting and Disclosure Requirements.
The Committee is also recommending that the City Council adopt an ordinance imposing
lobbyist registration, reporting and disclosure requirements.
After analyzing issues related to lobbyists, the Committee recognized the importance of
ensuring City representatives and the public know when someone is being compensated
to try and influence decisions related to: (1) the adoption of an ordinance, resolution,
regulation or policy; (2) the decision to grant or deny any permit, license or other
entitlement of use; (3) the award of a contract or grant; or (4) litigation ("Lobbying
Activities").
13-2
Introduction of Ordinances Modifying the City's Regulation of Municipal Campaign
Contribution and Expenditure Limits and Establishing Lobbyist Registration,
Reporting and Disclosure Requirements
November 5, 2019
Page 3
Under the proposed ordinance, a lobbyist, who is generally someone who receives
compensation of five hundred dollars ($500) or more in a calendar month for engaging in
Lobbying Activities or engages in Lobbying Activities pursuant to a contingency fee
agreement, would need to register with the Orange County Campaign Finance and Ethics
Commission within ten (10) days of qualifying as a lobbyist and annually thereafter if the
person continues to qualify as a lobbyist.
In addition to registering as a lobbyist, the proposed ordinance would require a lobbyist
to identify himself/herself when lobbying City representatives and disclose on whose
behalf the lobbying contact is being made. Also, a lobbyist would be prohibited from:
(1) doing any act that would place a City representative under personal obligation to the
lobbyist, (2) deceiving a City representative; or (3) representing that the lobbyist can
control or obtain the vote of any City representative. Violation of the ordinance would be
subject to fines and/or civil penalties.
The Committee is recommending that the City Council move forward with adoption of this
proposed ordinance, which would become effective upon the Orange County Board of
Supervisors taking action to allow for the registration of local lobbyists with the Orange
County Campaign Finance and Ethics Commission. Because the County of Orange
already has a system in place for registering lobbyists, the Committee is of the opinion it
would be most efficient and cost effective to utilize the existing registration system. If the
Board of Supervisors does not take action to allow the City to utilize the existing system,
the ordinance can be modified to require registration with the City Clerk.
Slate Mail
Finally, the Committee reviewed the extensive regulation of slate mail under the Political
Reform Act and determined this area of law is highly regulated by the state. In regards
to new regulations, the Committee determined that any meaningful local regulation of
slate mail would likely conflict with the limitations imposed by the First Amendment.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has
no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A
— Ordinance No. 2019-19
Attachment B —
Redline of NBMC Chapter 1.25
Attachment C
— Ordinance No. 2019-20
13-3
ATTACHMENT A
ORDINANCE NO. 2019-19
AN ORDINANCE OF THE CITY OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH, CALIFORNIA,
AMENDING CHAPTER 1.25 OF TITLE 1 OF THE
NEWPORT BEACH MUNICIPAL CODE PERTAINING TO
MUNICIPAL CAMPAIGN CONTRIBUTION AND
EXPENDITURE LIMITS
WHEREAS, on April 9, 2019, the City Council adopted Resolution No. 2019-33
forming an Ad Hoc Committee on Election Reform ("Committee") to determine whether
the provisions of the Newport Beach Municipal Code ("NBMC") should be modified or
updated;
WHEREAS, the Committee has recommended the City Council modify and
update Chapter 1.25 of Title 1 of the NBMC to clarify what constitutes a violation of the
campaign contribution limits; provide a process for handling excess contributions that
were inadvertently made by a person or received by a candidate or candidate controlled
committee; and provide a clear path for the enforcement of violations of the campaign
contribution ordinance, and
WHEREAS, the City Council has reviewed the proposed modifications to
Chapter 1.25 of Title 1 of the NBMC and has determined that these modifications are
consistent with the purpose and findings set forth in Section 1.25.010, Chapter 1.25 of
Title 1 of the NBMC.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Chapter 1.25 of Title 1 of the Newport Beach Municipal Code is
hereby amended to read as follows:
Chapter 1.25
MUNICIPAL ELECTION CAMPAIGN CONTRIBUTION AND EXPENDITURE
CONTROL*
Sections:
1.25.010 Purpose and Findings.
1.25.015 Intent.
1.25.020 Definitions.
13-4
Ordinance No. 2019 -
Page 2 of 7
1.25.030 Campaign Contributions—Limitations.
1.25.040 Enforcement and Penalties.
1.25.010 Purpose and Findings.
The City Council of the City of Newport Beach finds and declares as follows:
A. The primary purpose of the ordinances codified in this chapter is to prevent
corruption, or the appearance of corruption, which results from the real or imagined
influence of large contributions on the conduct or actions of candidates elected to office.
B. The limits on contributions to candidates and candidates' controlled committees
imposed by this chapter will encourage candidates and their supporters to raise funds
from a greater number of persons than would otherwise involve themselves in the
political process.
C. Contribution limits encourage persons to expend funds that would otherwise be
contributed to candidates on direct political expression which will broaden the
discussion and debate on issues of importance to the electorate.
D. These contribution limits will not reduce the total amount of money potentially
available, or used, to promote expression in the context of a political campaign, but will
increase the amount of independent expenditures and encourage the dissemination of
political expression through a wider variety of media sources.
E. Local campaign contribution limits are municipal affairs and this chapter is
authorized pursuant to the laws and Constitution of the State of California, as well as
the Charter of the City of Newport Beach.
F. The contribution limitations imposed by this chapter are consistent with the spirit,
intent and letter of the Political Reform Act of 1974 (Title 9 of the California Government
Code).
1.25.015 Intent.
The intent of this chapter is to impose limits on the amount of money that may be
contributed to a candidate or candidate's controlled committee to achieve the purposes
specified in Section 1.25.010. This chapter is not intended, and shall not be construed,
to establish any reporting, filing, or procedural requirement in addition to, or different
from, the Political Reform Act or the regulations adopted by the Fair Political Practices
Commission (FPPC).
13-5
Ordinance No. 2019 -
Page 3 of 7
1.25.020 Definitions.
The terms used in this chapter shall have the same definitions as specified in the
Political Reform Act and FPPC regulations. In those cases where definitions in the
Political Reform Act or FPPC regulations contain a specific reference to any State
election, candidate, or electoral criteria, the definition shall be modified to reflect the
municipal equivalent, or, in the absence of a municipal equivalent, to delete the specific
reference.
1.25.030 Campaign Contributions—Limitations.
A. Contributions by Persons to Candidate or Candidate's Controlled Committee. No
person shall knowingly and willfully contribute to a candidate and/or the candidate's
controlled committee, with respect to any single election, an amount that would cause
the total contributed by such person to the candidate and the candidate's controlled
committee, when combined, to exceed one thousand two hundred dollars ($1,200.00).
B. Acceptance or Solicitation by Candidate or Candidate's Controlled Committee.
No candidate or candidate's controlled committee shall knowingly and willfully solicit or
accept any contribution from any person, which would cause the total amount
contributed by such person, with respect to any single election, to the candidate and the
candidate's controlled committee, when combined, to exceed the sum of one thousand
two hundred dollars ($1,200.00).
C. Adjustment for Cost of Living Changes. The campaign contribution limits and
contribution acceptance and solicitation limits set forth in subsections (A) and (B) shall
be adjusted in two-year intervals, beginning in 2021, by the City Clerk to reflect changes
in the Consumer Price Index for All Urban Consumers (CPI -U) in the selected local area
of Los Angeles -Long Beach -Anaheim, California. In June of each year there is to be an
adjustment, the City Clerk shall determine the new limit by comparing the last published
index number that is closest in time to the date the adjustment in limits is to be made,
and the corresponding index number for 2019. [(A)-B)/B*100=i, where A=Most recent
index, B=Corresponding index for 2019, i=Adjustment in percent]. Adjustments made
pursuant to this subsection shall be rounded to the nearest one hundred dollars
($100.00), shall be announced by the City Clerk in June of the year an adjustment is to
be made, and shall be effective July 1.
13-6
Ordinance No. 2019 -
Page 4 of 7
D. Demand for Return of Excess Contributions. It shall not be a violation of
subsection (A) if the person: (1) first became aware the person violated the limitations
set forth in subsection (A) when the person received a return of the excess
contribution(s) from the candidate or candidate's controlled committee; or (2) if the
person demands, in writing, a return of the portion of any contribution(s) donated in
excess of the limitations imposed by subsection (A) within fourteen (14) calendar days
from the date the City provides written notice to the person of the alleged violation of
subsection (A) or the date the person discovers that the person's contribution(s) exceed
the contribution limit set forth in subsection (A), whichever is sooner. A copy of the
written notification by the person demanding the return of the portion of any
contribution(s) donated in excess of the limitations imposed by subsection (A) shall be
provided via certified mail or courier delivery to the last known address of the candidate
or the candidate's controlled committee. If the excess contributions were not returned by
the candidate or candidate's controlled committee prior to sending the written demand,
the person shall provide the City Clerk with a copy of the written demand, and proof of
delivery thereof, within fourteen (14) calendar days of the date the demand is made.
E. Return of Excess Contributions. It shall not be a violation of subsection (B) if the
candidate or candidate's controlled committee returns the portion of any contribution(s)
donated in excess of the limitations imposed by subsection (B) within fourteen (14)
calendar days from the date the City provides written notice to the candidate or
candidate's controlled committee of the alleged violation of subsection (B) or the date
the candidate or candidate's controlled committee discovers that the contribution(s)
exceed the contribution limit set forth in subsection (B), whichever is sooner. If the City
notified the candidate or candidate's controlled committee that the contributions
exceeded the limitations imposed by subsection (B), written notification showing the
donor's name, the amount returned, and the date of the return shall be provided to the
City Clerk within fourteen (14) calendar days of the date of the return.
F. Contributions by Candidates. The provisions of subsections (A) and (B) of this
section shall not apply to contributions from a candidate to his or her controlled
committee nor to the expenditure, by the candidate, of his or her personal funds.
G. Contributions to Committees. Contributions made to any person or a committee,
and not to a candidate or candidate's controlled committee, shall not be considered as
contributions to the candidate or candidate's controlled committee notwithstanding the
fact that such person or committee supports the candidate or uses the contribution with
a view to bringing about the nomination or election of the candidate.
13-7
Ordinance No. 2019 -
Page 5 of 7
H. Anonymous Contributions. No candidate or candidate's controlled committee
shall knowingly and willfully accept anonymous contributions, with respect to any single
election, which would cause the total amount of anonymous contributions received by
the candidate and the candidate's controlled committee, when combined, to exceed one
hundred dollars ($100.00). Subject to the provisions of State law, it shall not be a
violation of this subsection if the candidate or candidate's controlled committee pays to
the City, for deposit into the general fund to be used to defray the costs of municipal
elections, the portion of any contributions accepted in excess of the limitations imposed
by this subsection within fourteen (14) calendar days from the date the City provides
written notice to the candidate or candidate's controlled committee of the alleged
violation of this subsection or within fourteen (14) calendar days of the date the
candidate or candidate's controlled committee discovers the contribution(s) exceed the
contribution limit set forth in this subsection, whichever is sooner.
I. Notice from the City. For purposes of this section, written notification by the City
shall be by certified mail to the person to be notified at the persons last known address.
Service by certified mail shall be deemed completed at the time of deposit with the post
office.
J. City Clerk. If the City Clerk has a good faith belief that a person, candidate, or
candidate's controlled committee has violated Section 1.25.030, the City Clerk shall
refer the matter to the District Attorney.
1.25.040 Enforcement and Penalties.
A. Any person who violates the provisions of Section 1.25.030 is guilty of a
misdemeanor.
B. In addition to any criminal penalty, if, after a candidate is elected, the candidate is
convicted of a misdemeanor for violating Section 1.25.030, the election to office of such
candidate shall be void and the office shall become vacant as of the date of conviction
or on the date upon which the candidate would otherwise take office, whichever occurs
later. In such event, the vacancy shall be filled in accordance with the provisions of
Section 403 of the City Charter. If a candidate is convicted of a misdemeanor for
violating Section 1.25.030 at any time prior to the election of the candidate, the
candidacy shall be terminated immediately and the candidate shall no longer be eligible
for election. A plea of nolo contendere shall be deemed a conviction for purposes of this
subsection.
13-8
Ordinance No. 2019 -
Page 6 of 7
C. For purposes of this chapter, the district attorney of the county is the civil and
criminal prosecutor. If after a candidate is convicted of a misdemeanor there is a need
to bring an enforcement action pursuant to subsection (B) and the district attorney of the
county refuses to bring the action, the City Council shall have authority to appoint a
special counsel to act as the civil prosecutor to enforce the civil penalties provided for in
subsection (B).
Section 2: The recitals provided in this ordinance are true and correct and are
incorporated herein by this reference.
Section 3: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 4: The City Council finds the introduction and adoption of this
ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
Section 5: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
13-9
Ordinance No. 2019 -
Page 7 of 7
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall be effective thirty
(30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 5th day of November, 2019, and adopted on the 19th day
of November, 2019, by the following vote, to-wit.-
AYES:
o-wit:
AYES:
NAYS:
ABSENT:
DIANE B. DIXON, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
4 A^-- - C �t
AAR N C. HARP, CITY ATTORNEY
13-10
ATTACHMENT B
MUNICIPAL ELECTION CAMPAIGN CONTRIBUTION AND EXPENDITURE CONTROL*
Sections:
1.25.010 Purpose and Findings.
1.25.015 Intent.
1.25.020 Definitions.
1.25.030 Campaign Contributions—Limitations.
1.25.040 Enforcement and Penalties.
J—=5-05,13 see ..bili+.,
1.25.010 Purpose and Findings.
The City Council of the City of Newport Beach finds and declares as follows:
A. The primary purpose of the ordinances codified in this chapter is to prevent corruption, or the
appearance of corruption, which results from the real or imagined influence of large contributions on the
conduct or actions of candidates elected to office.
B. The limits on contributions to candidates and candidates' controlled committees imposed by this
chapter will encourage candidates and their supporters to raise funds from a greater number of persons
than would otherwise involve themselves in the political process.
C. Contribution limits encourage persons to expend funds that would otherwise be contributed to
candidates on direct political expression which will broaden the discussion and debate on issues of
importance to the electorate.
D. These contribution limits will not reduce the total amount of money potentially available, or used, to
promote expression in the context of a political campaign, but will increase the amount of independent
expenditures and encourage the dissemination of political expression through a wider variety of media
sources.
E. Local campaign contribution limits are municipal affairs and this chapter is authorized pursuant to the
laws and Constitution of the State of California, as well as the Charter of the City of Newport Beach.
F. The contribution limitations imposed by this chapter are consistent with the spirit, intent and letter
of the Political Reform Act of 1974 (Title 9 of the California Government Code).
1.25.015 Intent.
The intent of this chapter is to impose limits on the amount of money that may be contributed to a
candidate or candidate's controlled committee to achieve the purposes specified in Section 1.25.010. This
chapter is not intended, and shall not be construed, to establish any reporting, filing, or procedural
requirement in addition to, or different from, the Political Reform Act or the regulations adopted by the
Fair Political Practices Commission (FPPC).
13-11
1.25.020 Definitions.
The terms used in this chapter shall have the same definitions as specified in the Political Reform Act and
FPPC regulations. In those cases where definitions in the Political Reform Act or FPPC regulations contain
a specific reference to any State election, candidate, or electoral criteria, the definition shall be modified
to reflect the municipal equivalent, or, in the absence of a municipal equivalent, to delete the specific
reference.
1.25.030 Campaign Contributions—Limitations.
A. Contributions by Persons to Candidates or Candidate's Controlled Committee{4. No person shall
knowingly and willfully FRake aRY GeRtri"-i*'^^contribute to a candidate and/or the candidate's controlled
committees , with respect to any single election, an amount thatw#r# would cause the total arneunt
contributed by such person to the candidate and the candidate's controlled committee{}, when
combined, to exceed one thousand two hundred dollars ($1,2900.00).
B. -Acceptance or Solicitation by Candidates or Candidate's Controlled Committee. No candidate or
candidate's controlled committee shall knowingly and willfully solicit or accept any contribution from any
person, which would cause the total amount contributed by such person, with respect to any single
election, to the candidate and the candidate's controlled committee{4, when combined, to exceed the
sum of one thousand two hundred dollars ($1,2900.00).
C. Adjustment for Cost of Living Changes. The campaign contribution limits and contribution acceptance
and solicitation limits set forth in subsections (A) and (B) shall be adjusted in two-year intervals, beginning
in 2021, by the City Clerk to reflect changes in the Consumer Price Index for All Urban Consumers (CPI -U)
in the selected local area of Los Angeles -Long Beach -Anaheim, California. In June of each year there is to
be an adjustment, the City Clerk shall determine the new limit by comparing the last published index
number that is closest in time to the date the adjustment in limits is to be made, and the corresponding
index number for 2019. ((A)-B)/B*100=i, where A=Most recent index, B=Corresponding index for 2019,
i=Adjustment in percentl. Adjustments made pursuant to this subsection shall be rounded to the nearest
one hundred dollars ($100.00), shall be announced by the City Clerk in June of the year an adjustment is
to be made, and shall be effective July 1.
D. Demand for Return of Excess Contributions. It shall not be a violation of subsection (A) if the person:
(1) first became aware the person violated the limitations set forth in subsection (A) when the person
received a return of the excess contribution(s) from the candidate or candidate's controlled committee;
or (2) if the person demands, in writing, a return of the portion of any contribution(s) donated in excess
of the limitations imposed by subsection (A) within fourteen (14) calendar days from the date the City
provides written notice to the person of the alleged violation of subsection (A) or the date the person
discovers that the person's contribution(s) exceed the contribution limit set forth in subsection (A),
whichever is sooner. A copy of the written notification by the person demanding the return of the portion
of any contribution(s) donated in excess of the limitations imposed by subsection (A) shall be provided via
certified mail or courier delivery to the last known address of the candidate or the candidate's controlled
committee. If the excess contributions were not returned by the candidate or candidate's controlled
committee prior to sending the written demand, the person shall provide the City Clerk with a copy of the
written demand, and proof of delivery thereof, within fourteen (14) calendar days of the date the demand
is made_
13-12
E. Return of Excess Contributions. It shall not be a violation of subsection (B) if the candidate or
candidate's controlled committee returns the portion of any contribution(s) donated in excess of the
limitations imposed by subsection (B) within fourteen (14) calendar days from the date the City provides
written notice to the candidate or candidate's controlled committee of the alleged violation of subsection
(B) or the date the candidate or candidate's controlled committee discovers that the contribution(s)
exceed the contribution limit set forth in subsection (B), whichever is sooner. If the City notified the
candidate or candidate's controlled committee that the contributions exceeded the limitations imposed
by subsection (B), written notification showing the donor's name, the amount returned, and the date of
the return shall be provided to the Citv Clerk within fourteen (14) calendar days of the date of the return.
FC. Contributions by Candidates. The provisions of subsections (A) and (B) of this section shall not apply
to contributions from a candidate to his or her controlled committees} nor to the expenditure, by the
candidate, of his or her personal funds.
G -D. Contributions to Committees. Contributions made to any person or a committee, and not to a
candidate or candidate's controlled committee, shall not be considered as contributions to the candidate
or candidate's controlled committee notwithstanding the fact that such person or committee supports
the candidate or uses the contribution with a view to bringing about the nomination or election of the
candidate.
H€. Anonymous Contributions. No candidate or candidate's controlled committee shall knowingly and
willfully accept anonymous contributions, with respect to any single election, which would cause the total
amount of anonymous contributions received by the candidate and the candidate's controlled
committee{ -4, when combined, to exceed two hundred dollars ($1-200.00). Subject to the provisions
of State law, it shall not be a violation of this subsection if the candidate or candidate's controlled
committee pays to the City, for deposit into the general fund to be used to defray the costs of municipal
elections, the portion of any contributions accepted in excess of the limitations imposed bythis subsection
within fourteen (14) calendar days from the date the City provides written notice to the candidate or
candidate's controlled committee of the alleged violation of this subsection or within fourteen (14)
calendar days of the date the candidate or candidate's controlled committee discovers the contribution(s)
exceed the contribution limit set forth in this subsection. whichever is sooner. i^*"^ ^��^^+ a v ,^d;d *^
I. Notice from the City. For purposes of this section, written notification by the City shall be by
certified mail to the person to be notified at the persons last known address. Service by certified mail
shall be deemed completed at the time of deposit with the post office.
13-13
J. City Clerk. If the City Clerk has a good faith belief that a person, candidate, or candidate's
controlled committee has violated Section 1.25.030, the City Clerk shall refer the matter to the District
Attorney.
1.25.040 Enforcement and Penalties.
A. Any person who ' newingly and willfully violates the provisions of Section 1.25.030 is guilty of a
misdemeanor.
B. In addition to any criminal penalty, if, after a candidate is elected, the candidate is convicted of a
misdemeanor for violating&R ef the pFevisieps Af Section 1.25.030, the election to office of such candidate
shall be void and the office shall become vacant as of the date of conviction or on the date upon which
the candidate would otherwise take office, whichever occurs later. In such event, the vacancy shall be
filled in accordance with the provisions of Section 403 of the City Charter. If a candidate is convicted of a
misdemeanor for violatingyk4atkw,4 Section 1.25.030 at any time prior to the election of the candidate,
the candidacy shall be terminated immediately and the candidate shall no longer be eligible for election.
A plea of nolo contendere shall be deemed a conviction for purposes of this subsection.
C. For purposes of this chapter, the district attornev of the countv is the civil and criminal prosecutor. If
after a candidate is convicted of a misdemeanor there is a need to bring an enforcement action pursuant
to subsection (B) and the district attorney of the county refuses to bring the action, the City Council shall
have authoritv to appoint a special counsel to act as the civil prosecutor to enforce the civil penalties
rovided for in subsection (B).
-- - -- - -- - - -
MINE -- - - - - -- - -- -- - -- - - - -- - -
M 01
13-14
ATTACHMENT C
ORDINANCE NO. 2019-20
AN ORDINANCE OF THE CITY OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH, CALIFORNIA,
AMENDING SECTION 1.12.020, SUBSECTION J, AND
ADDING CHAPTER 1.28 TO TITLE 1 OF THE NEWPORT
BEACH MUNICIPAL CODE TO INCREASE
TRANSPARENCY IN GOVERNMENT OPERATIONS AND
ESTABLISH LOBBYIST REGISTRATION, REPORTING
AND DISCLOSURE REQUIREMENTS
WHEREAS, all actions and deliberations by public agencies should, to the
greatest extent possible, be conducted openly;
WHEREAS, an informed public and transparency in decision-making is essential
to democracy;
WHEREAS, on April 9, 2019, the City Council adopted Resolution No. 2019-33
forming an Ad Hoc Committee on Election Reform ("Committee") to determine whether
the provisions of the Newport Beach Municipal Code ("NBMC") should be modified or
updated;
WHEREAS, the Committee has recommended the City Council amend Section
1.12.020 subsection J and add Chapter 1.28 to Title 1 of the NBMC to increase
transparency in government operations by establishing lobbyist registration, reporting
and disclosure requirements; and
WHEREAS, it is the goal and intent of this ordinance, to ensure that citizens of
Newport Beach have timely access to information and an opportunity to address the
various legislative bodies of the City prior to governmental decisions being made;
WHEREAS, the citizens, staff and City Council of the City ought to know the
identity of persons engaged in compensated lobbying activities aimed at influencing
decisions by City government and which interests such persons represent; and
WHEREAS, public disclosure of the financing of lobbyists and those who employ
their services helps maintain citizen confidence in the integrity of City government.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
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Section 1: Section 1.12.020 subsection J of Chapter 1.12 of Title 1 of the
Newport Beach Municipal Code is hereby amended to add Subsection J to read as
follows:
J. The City Clerk shall have the power to issue administrative citations for
violations of Chapter 1.28.
Section 2: Chapter 1.28 is hereby added to Title 1 of the Newport Beach
Municipal Code to read as follows:
Chapter 1.28
LOBBYIST REGISTRATION AND REPORTING
Sections:
1.28.010
Purpose and Findings.
1.28.020
Definitions.
1.28.030
Exemptions.
1.28.040
Lobbyist Registration and Annual Reporting.
1.28.050
Identification of Clients.
1.28.060
Prohibited acts.
1.28.070
Enforcement.
1.28.010 Purpose and Findings.
The City Council of the City of Newport Beach finds and declares as follows:
A. City government functions to serve the needs of all citizens.
B. The citizens, staff and City Council of the City ought to know the identity of
persons engaged in compensated lobbying activities aimed at influencing decisions by
City government and which interests such persons represent.
C. Public disclosure of the financing of lobbyists and those who employ their
services helps maintain citizen confidence in the integrity of City government.
D. It is in the public interest to ensure that lobbyists do not misrepresent facts, their
positions, or attempt to deceive a City representative through false communications; do
not place a City representative under personal obligation to themselves or their clients;
and do not represent that they can control the actions of any City representative.
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E. It is in the public interest to adopt this chapter to ensure adequate and effective
disclosure of information about efforts to lobby City government.
1.28.020 Definitions.
For purposes of this chapter, the following definitions shall apply:
A. "City representative" means the Mayor, Mayor Pro Tem, members of the City
Council, members of all City Boards, Commissions and Committees, the City Manager,
Assistant City Manager, Department Directors, Deputy Department Directors, the Police
Chief, the Assistant Police Chief, the Fire Chief, the Assistant Fire Chief, the City
Attorney, Assistant City Attorney, the City Clerk, and the Zoning Administrator.
B. "Commission" means the Orange County Campaign Finance and Ethics
Commission.
C. "Influence" and "Influencing" means contacting, either directly or indirectly, for
the purpose of promoting, supporting, modifying, opposing, causing the delay or
abandonment of conduct, or otherwise intentionally affecting the official actions of a City
representative, by any means, including, but not limited to providing, preparing,
processing, or submitting information, incentives, statistics, studies or analyses.
D. "Lobbyist" means any individual who receives compensation of five hundred
dollars ($500.00) or more in consideration in any calendar month, other than
reimbursement for reasonable travel expenses, for engaging in lobbying activities, or
who is employed by his or her employer and receives compensation of five hundred
dollars ($500.00) or more in compensation in any calendar month, other than
reimbursement for reasonable travel expenses, for engaging in lobbying activities. A
lobbyist includes any person that engages in lobbying activities on behalf of another
person pursuant to any form of contingency compensation agreement.
E. "Lobbying activities" means influencing or attempting to influence a City
representative, by means of oral, written, or electronic communication, in regards to any
legislative, quasi-judicial or administrative action or decision to: (1) adopt an ordinance,
resolution, regulation or policy; (2) grant or deny any permit, license or other entitlement
of use; (3) award of a contract or grant; or (4) decide to initiate, defend, appeal or take
any other action related to litigation.
F. "Lobbying firm" means any person that employs or is controlled or managed by a
lobbyist.
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G. "Person" means any individual and any form of business entity including, but not
limited to, a domestic or foreign corporation, association, syndicate, joint stock
corporation, partnership of every kind, club, business or trust, society, or limited liability
company.
1.28.030 Exemptions.
The following persons are exempt from the requirements of this chapter unless
otherwise specified:
A. A public official or public employee acting in his or her official capacity.
B. An attorney, licensed to practice law in the state of California, with regard to his
or her representation of a party or potential party to pending or actual litigation, or to a
pending or actual administrative enforcement proceeding, brought by or against the
City, or City agent, officer, or employee.
C. A person who owns, publishes or is employed by a newspaper, radio station,
television station or other media outlet that is engaged in the business of broadcasting
of news items, editorials, or commentary, which directly or indirectly urges governmental
action.
D. A person hired by the City, to the extent the lobbying activities directly relate to
the work the person was hired to perform for the City.
E. A person who is communicating with a City representative concerning a
ministerial action.
F. A person who meets with a City representative solely to lodge "whistleblower"
complaints relating to improper governmental activity such as gross mismanagement,
waste of funds, an abuse of authority, or a substantial and specific danger to public
health or safety.
G. A person who meets with the City Manager, City Attorney, City Clerk, Assistant
City Manager, Assistant City Attorney, Department Directors, Deputy Department
Directors, the Police Chief, or the Deputy Police Chief, regarding any claim or litigation
matter, the resolution of any dispute, or potential dispute, or negotiation of any
agreement where the City will be a party to the agreement.
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H. An expert witness retained to provide opinions or testimony at an official City
proceeding.
Any person who is not compensated for engaging in lobbying activities.
J. Any employee, officer, or board member of an association for a residential
common interest development of five or more dwelling units, which is wholly located
within the City, when addressing, in his or her capacity as an employee, officer, or board
member of such association, an issue impacting the association or its members.
1.28.040 Lobbyist Registration and Annual Reporting.
A. Any lobbyist and/or lobbying firm who engages in lobbying activities shall register
with the Commission, file the necessary completed registration form supplied by the
Commission, and pay all filing fees required by the County of Orange:
1. Within ten (10) days of qualifying as a lobbyist; and
2. Within ten (10) days of the annual anniversary of the lobbyist's and/or
lobbying firm's initial registration, if the lobbyist and/or lobbying firm continues to qualify
as a lobbyist.
B. An amendment to the registration form must be completed and filed by the
lobbyist and/or lobbying firm with the Commission within ten (10) days if the lobbyist
and/or lobbying firm knows, or should have known, of any change in the accuracy of the
information reported on the registration form.
1.28.050 Identification of Clients.
A. To the extent otherwise permitted by law, each lobbyist or lobbying firm who
appears before the City Council or City board, commission or committee to engage in
lobbying activities shall identify himself or herself and the client(s) he or she represents
upon addressing the body.
B. Any lobbyist or lobbying firm who makes an oral lobbying contact with a City
representative shall, at the time of the initial lobbying contact with each City
representative, identify himself or herself as a registered lobbyist and identify the client
or clients on whose behalf the lobbying contact is made.
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C. Any lobbyist or lobbying firm who makes an initial written lobbying contact
(including an electronic communication) with a City representative and/or City employee
shall identify the client(s) on whose behalf the lobbying contact is made and identify
himself or herself as a registered lobbyist.
1.28.060 Prohibited Acts.
No lobbyist or lobbying firm shall:
A. Do any act, or refrain from doing any act, with the express purpose and intent of
placing any City representative under personal obligation to such lobbyist or lobbying
firm.
B. Deceive any City representative with regard to any material fact pertinent to any
pending or proposed legislative, administrative, or quasi-judicial action.
C. Represent, either directly or indirectly, orally or in writing, that that person can
control or obtain the vote or action of any City representative.
1.28.070 Enforcement.
A. Negligent and unintentional violations of this chapter shall be punishable in
accordance with Chapter 1.05 of this Code. Administrative fines for negligent and
unintentional violations of this chapter shall be assessed in the following amounts:
1. A fine not exceeding fifty dollars ($50.00) for a first violation;
2. A fine not exceeding one hundred dollars ($100.00) for a second violation
within one year from the date of a prior violation; and
3. A fine not exceeding two hundred dollars ($200.00) for a third violation, or
any subsequent violation, within one year from the date of the prior violations.
The City Clerk shall post on the City website and make available to the public a list of all
lobbyist and/or lobbying firms who have paid fines for violating the provisions of this
chapter within the previous two (2) years.
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B. Any person who knowingly and intentionally violates the provisions of this
chapter shall be liable in a civil action brought by the Office of the City Attorney. Any
violation of the provisions of this chapter may result in a civil penalty no greater than five
thousand dollars ($5,000.00) for each violation.
Section 3: The recitals provided in this ordinance are true and correct and are
incorporated herein by this reference.
Section 4: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the introduction and adoption of this
ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
Section 6: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
Section 7: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall take effect thirty
(30) calendar days after the Orange County Board of Supervisors adopts a resolution or
ordinance allowing for a lobbyist or lobbying firm who engages in lobbying activities to
register with the Orange County Campaign Finance and Ethics Commission. After the
adoption of said resolution or ordinance by the Orange County Board of Supervisors,
the City Clerk shall publish a notice letting the public know the effective date of this
ordinance on the City website and in a newspaper of general circulation published in the
City.
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This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 5th day of November, 2019, and adopted on the 19th day
of November, 2019, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
DIANE B. DIXON, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
L,m�Gc_—
AARON C. HARP, CITY ATTORNEY
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